Patents, licences and trademarks | up to 20 years |
Technology | up to 13 years |
Customer relationships | up to 15 years |
Software | up to seven years |
shorter of the economic life and the period the right is | |
Patents and intellectual property | legally enforceable |
Freehold and long leasehold buildings | 2% per annum |
Short leasehold property | over the period of the lease |
Plant, machinery, etc. | 10% to 20% per annum |
Fixtures, fittings, tools and other equipment | 10% to 33% per annum |
Year ended 31 July 2024 | ||||||
Smiths | Smiths | Corporate | ||||
John Crane | Detection | Flex-Tek | Interconnect | costs | Total | |
£m | £m | £m | £m | £m | £m | |
Revenue | 1,133 | 859 | 786 | 354 | – | 3,132 |
Segmental headline operating | ||||||
profit | 263 | 102 | 161 | 49 | – | 575 |
Corporate headline operating | ||||||
costs | – | – | – | – | (49) | (49) |
Headline operating profit/(loss) | 263 | 102 | 161 | 49 | (49) | 526 |
Items excluded from headline | ||||||
measures (note 3) | (34) | (19) | (26) | (3) | (29) | (111) |
Operating profit/(loss) | 229 | 83 | 135 | 46 | (78) | 415 |
Headline operating margin | 23.2% | 11.9% | 20.5% | 13.9% | 16.8% |
Year ended 31 July 2023 | ||||||
Smiths | Smiths | Corporate | ||||
John Crane | Detection | Flex-Tek | Interconnect | costs | Total | |
£m | £m | £m | £m | £m | £m | |
Revenue | 1,079 | 803 | 768 | 387 | – | 3,037 |
Segmental headline operating | ||||||
profit | 244 | 90 | 149 | 62 | – | 545 |
Corporate headline operating | ||||||
costs | – | – | – | – | (44) | (44) |
Headline operating profit/(loss) | 244 | 90 | 149 | 62 | (44) | 501 |
Items excluded from headline | ||||||
measures (note 3) | (27) | (35) | (18) | (12) | (6) | (98) |
Operating profit/(loss) | 217 | 55 | 131 | 50 | (50) | 403 |
Headline operating margin | 22.6% | 11.2% | 19.4% | 16.0% | 16.5% |
Year ended 31 July 2024 | ||||||
Smiths | Smiths | Corporate and | ||||
John Crane | Detection | Flex-Tek | Interconnect | non-headline | Total | |
£m | £m | £m | £m | £m | £m | |
Depreciation – property, plant | ||||||
and equipment | 17 | 11 | 8 | 9 | – | 45 |
Depreciation – right of use assets | 15 | 8 | 3 | 7 | 1 | 34 |
Amortisation of capitalised | ||||||
development costs | – | 2 | – | – | – | 2 |
Amortisation of software, patents | ||||||
and intellectual property | 1 | 1 | 2 | – | 1 | 5 |
Amortisation of acquired | ||||||
intangibles | – | – | – | – | 49 | 49 |
Share-based payment | 3 | 2 | 2 | 2 | 5 | 14 |
Year ended 31 July 2023 | ||||||
Smiths | Smiths | Corporate and | ||||
John Crane | Detection | Flex-Tek | Interconnect | non-headline | Total | |
£m | £m | £m | £m | £m | £m | |
Depreciation – property, plant | ||||||
and equipment | 17 | 10 | 8 | 6 | 1 | 42 |
Depreciation – right of use assets | 15 | 7 | 6 | 3 | 1 | 32 |
Amortisation of capitalised | ||||||
development costs | – | 2 | – | – | – | 2 |
Amortisation of software, patents | ||||||
and intellectual property | 3 | 1 | – | 2 | 1 | 7 |
Amortisation of acquired | ||||||
intangibles | – | – | – | – | 52 | 52 |
Share-based payment | 3 | 1 | 2 | 2 | 6 | 14 |
Transition services cost | ||||||
reimbursement | – | – | – | – | (10) | (10) |
31 July 2024 | ||||||
Smiths | Smiths | Corporate and | ||||
John Crane | Detection | Flex-Tek | Interconnect | non-headline | Total | |
£m | £m | £m | £m | £m | £m | |
Property, plant, equipment, | ||||||
right of use assets, development | ||||||
projects, other intangibles and | ||||||
investments | 168 | 153 | 103 | 65 | 61 | 550 |
Inventory, trade and other | ||||||
receivables | 528 | 612 | 254 | 153 | 18 | 1,565 |
Segment assets | 696 | 765 | 357 | 218 | 79 | 2,115 |
31 July 2023 | ||||||
Smiths | Smiths | Corporate and | ||||
John Crane | Detection | Flex-Tek | Interconnect | non-headline | Total | |
£m | £m | £m | £m | £m | £m | |
Property, plant, equipment, | ||||||
right of use assets, development | ||||||
projects, other intangibles and | ||||||
investments | 162 | 142 | 84 | 66 | 375 | 829 |
Inventory, trade and other | ||||||
receivables | 489 | 599 | 226 | 160 | 10 | 1,484 |
Segment assets | 651 | 741 | 310 | 226 | 385 | 2,313 |
31 July 2024 | ||||||
Smiths | Smiths | Corporate and | ||||
John Crane | Detection | Flex-Tek | Interconnect | non-headline | Total | |
£m | £m | £m | £m | £m | £m | |
Segmental liabilities | 202 | 398 | 99 | 59 | – | 758 |
Corporate and non-headline | ||||||
liabilities | – | – | – | – | 341 | 341 |
Segment liabilities | 202 | 398 | 99 | 59 | 341 | 1,099 |
31 July 2023 | ||||||
Smiths | Smiths | Corporate and | ||||
John Crane | Detection | Flex-Tek | Interconnect | non-headline | Total | |
£m | £m | £m | £m | £m | £m | |
Segmental liabilities | 200 | 357 | 91 | 62 | – | 710 |
Corporate and non-headline | ||||||
liabilities | – | – | – | – | 339 | 339 |
Segment liabilities | 200 | 357 | 91 | 62 | 339 | 1,049 |
Assets | Liabilities | |||
31 July | 31 July | |||
31 July | 2023 | 31 July | 2023 | |
2024 | (restated) | 2024 | (restated) | |
£m | £m | £m | £m | |
Segment assets and liabilities | 2,115 | 2,313 | (1,099) | (1,049) |
Goodwill and acquired intangibles | 1,404 | 1,415 | – | – |
Derivatives | 4 | 5 | (17) | (20) |
Current and deferred tax | 118 | 168 | (102) | (146) |
Retirement benefit assets and obligations | 132 | 195 | (103) | (106) |
Cash and borrowings | 459 | 285 | (659) | (654) |
Statutory assets and liabilities | 4,232 | 4,381 | (1,980) | (1,975) |
Smiths | Smiths | Corporate and | ||||
John Crane | Detection | Flex-Tek | Interconnect | non-headline | Total | |
£m | £m | £m | £m | £m | £m | |
Capital expenditure year ended | ||||||
31 July 2024 | 34 | 28 | 10 | 11 | 3 | 86 |
Capital expenditure year ended | ||||||
31 July 2023 | 19 | 36 | 10 | 16 | – | 81 |
31 July 2024 | |||||
Smiths | Smiths | ||||
John Crane | Detection | Flex-Tek | Interconnect | Total | |
£m | £m | £m | £m | £m | |
Average segmental capital employed | 1,035 | 1,124 | 606 | 472 | 3,237 |
Average corporate capital employed | (31) | ||||
Average total capital employed – continuing | |||||
operations | 3,206 | ||||
31 July 2023 | |||||
Smiths | Smiths | ||||
John Crane | Detection | Flex-Tek | Interconnect | Total | |
£m | £m | £m | £m | £m | |
Average segmental capital employed | 1,022 | 1,154 | 570 | 466 | 3,212 |
Average corporate capital employed | (16) | ||||
Average total capital employed – continuing | |||||
operations | 3,196 |
Original | |||
equipment | Aftermarket | Total | |
John Crane | £m | £m | £m |
Revenue year ended 31 July 2024 | 321 | 812 | 1,133 |
Revenue year ended 31 July 2023 | 314 | 765 | 1,079 |
Other security | |||
Aviation | systems | Total | |
Smiths Detection | £m | £m | £m |
Revenue year ended 31 July 2024 | 595 | 264 | 859 |
Revenue year ended 31 July 2023 | 535 | 268 | 803 |
Aerospace | Industrials | Total | |
Flex-Tek | £m | £m | £m |
Revenue year ended 31 July 2024 | 154 | 632 | 786 |
Revenue year ended 31 July 2023 | 144 | 624 | 768 |
Components, | |||
connectors & | |||
subsystems | |||
Smiths Interconnect | £m | ||
Revenue year ended 31 July 2024 | 354 | ||
Revenue year ended 31 July 2023 | 387 |
General | Safety & | Aerospace | |||
Industrial | Security | Energy | & Defence | Total | |
£m | £m | £m | £m | £m | |
John Crane revenue | |||||
Revenue year ended 31 July 2024 | 407 | – | 726 | – | 1,133 |
Revenue year ended 31 July 2023 | 423 | – | 656 | – | 1,079 |
Smiths Detection revenue | |||||
Revenue year ended 31 July 2024 | – | 859 | – | – | 859 |
Revenue year ended 31 July 2023 | – | 803 | – | – | 803 |
Flex-Tek revenue | |||||
Revenue year ended 31 July 2024 | 632 | – | – | 154 | 786 |
Revenue year ended 31 July 2023 | 624 | – | – | 144 | 768 |
Smiths Interconnect revenue | |||||
Revenue year ended 31 July 2024* | 166 | – | – | 188 | 354 |
Revenue year ended 31 July 2023 | 190 | 141 | – | 56 | 387 |
Total revenue | |||||
Revenue year ended 31 July 2024* | 1,205 | 859 | 726 | 342 | 3,132 |
Revenue year ended 31 July 2023 | 1,237 | 944 | 656 | 200 | 3,037 |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Sale of goods recognised at a point in time | 2,275 | 2,244 |
Sale of goods recognised over time | 45 | 36 |
Services recognised over time | 812 | 757 |
3,132 | 3,037 |
Intangible assets, right of use | ||||
assets and property, plant and | ||||
Revenue | equipment | |||
Year ended | Year ended | |||
31 July 2024 | 31 July 2023 | 31 July 2024 | 31 July 2023 | |
£m | £m | £m | £m | |
Americas | 1,694 | 1,641 | 1,046 | 1,254 |
Europe | 622 | 563 | 461 | 519 |
Asia Pacific | 475 | 493 | 14 | 71 |
Rest of World | 341 | 340 | – | 29 |
3,132 | 3,037 | 1,521 | 1,873 |
Year ended 31 July 2024 | Year ended 31 July 2023 | |||||
Non-headline | Non-headline | |||||
Headline | (note 3) | Total | Headline | (note 3) | Total | |
£m | £m | £m | £m | £m | £m | |
Cost of sales – direct materials, | ||||||
labour, production and | ||||||
distribution overheads | 1,964 | – | 1,964 | 1,919 | – | 1,919 |
Selling costs | 219 | – | 219 | 221 | – | 221 |
Administrative expenses | 425 | 111 | 536 | 406 | 98 | 504 |
Research and development tax | ||||||
credits | (2) | – | (2) | – | – | – |
Transition services cost | ||||||
reimbursement | – | – | – | (10) | – | (10) |
Total | 2,606 | 111 | 2,717 | 2,536 | 98 | 2,634 |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Research and development expense | 73 | 73 |
Depreciation of property, plant and equipment | 45 | 42 |
Depreciation of right of use assets | 34 | 32 |
Amortisation of intangible assets | 56 | 61 |
Transition services cost reimbursement | – | (10) |
Year ended | ||
Year ended | 31 July 2023 | |
31 July 2024 | (represented) | |
£m | £m | |
Audit services | ||
Fees payable to the Company’s auditors for the audit of the Company’s | ||
annual financial statements | 2.8 | 2.7 |
Fees payable to the Company’s auditors and its associates for other | ||
services: | ||
– the audit of the Company’s subsidiaries | 3.6 | 5.5 |
6.4 | 8.2 | |
All other services | 0.5 | 0.5 |
Year ended | Year ended | ||
31 July 2024 | 31 July 2023 | ||
Notes | £m | £m | |
Acquisition and disposal related costs | |||
Post-acquisition integration costs and fair value adjustment unwind | (3) | – | |
Fair value loss on contingent consideration | (13) | (6) | |
Loss on disposal of financial asset | (9) | – | |
Business acquisition/disposal costs and related expenses | (5) | (1) | |
Legacy pension scheme arrangements | |||
Past service costs for benefit equalisation | 8 | (4) | 4 |
Scheme administration costs | 8 | (6) | (2) |
Retirement benefit scheme settlement loss | 8 | – | (1) |
Non-headline litigation provision movements | |||
Movement in provision held against Titeflex Corporation | |||
subrogation claims | 23 | 5 | 7 |
Provision for John Crane, Inc. asbestos litigation | 23 | (29) | (16) |
Cost recovery for John Crane, Inc. asbestos litigation | 3 | 7 | |
Other items | |||
Amortisation of acquired intangible assets | 10 | (49) | (52) |
Funding of charitable foundation | (1) | – | |
Restructuring costs | – | (36) | |
Irrecoverable VAT on chain export transaction | – | (2) | |
Non-headline items in operating profit – continuing operations | (111) | (98) |
Year ended | Year ended | ||
31 July 2024 | 31 July 2023 | ||
Notes | £m | £m | |
Unwind of discount on provisions | 23 | (9) | (7) |
Other finance income – retirement benefits | 8 | 6 | 7 |
Interest payable on overdue VAT | – | (7) | |
Other sundry financing losses | (2) | (1) | |
Non-headline items in finance costs – continuing | |||
operations | (5) | (8) | |
Continuing operations – non-headline loss before | |||
taxation | (116) | (106) |
Year ended | Year ended | ||
31 July 2024 | 31 July 2023 | ||
Notes | £m | £m | |
Tax credit on non-headline loss | 6 | 20 | 18 |
Increase in unrecognised UK deferred tax asset | 6 | (19) | (31) |
Non-headline taxation (charge)/credit – continuing | |||
operations | 1 | (13) | |
Continuing operations – non-headline loss for the year | (115) | (119) |
Year ended | Year ended | ||
31 July 2024 | 31 July 2023 | ||
Notes | £m | £m | |
Interest income | 26 | 36 | |
Interest expense: | |||
– bank loans and overdrafts, including associated fees | (47) | (50) | |
– other loans | (12) | (17) | |
– interest on leases | (5) | (4) | |
Interest expense | (64) | (71) | |
Headline net finance costs | (38) | (35) | |
Other financing (losses)/gains: | |||
– valuation movements on fair value hedged debt | 5 | (9) | |
– valuation movements on fair value derivatives | (5) | 9 | |
– foreign exchange and ineffectiveness on net | |||
investment hedges | (2) | (3) | |
– retranslation of foreign currency bank balances | – | 2 | |
– unwind of discount on provisions | 3 | (9) | (7) |
Other financing (losses)/gains | (11) | (8) | |
Other non-headline finance cost items: | |||
Interest expense - interest on overdue VAT | – | (7) | |
Other finance income - Interest on retirement benefits | 8 | 6 | 7 |
Other non-headline finance cost items | 6 | – | |
Net finance costs | (43) | (43) |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Profit attributable to equity shareholders for the year: | ||
– continuing | 250 | 225 |
– discontinued | – | 6 |
Total | 250 | 231 |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
Number of shares | Number of shares | |
Number of shares in issue, net of shares held in Employee Benefit Trust: | ||
Weighted average number for basic earnings per share | 345,901,957 | 352,891,120 |
Adjustment for potentially dilutive shares | 1,389,223 | 1,790,699 |
Weighted average number for diluted earnings per share | 347,291,180 | 354,681,819 |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
pence | pence | |
Statutory earnings per share total – basic | 72.3p | 65.5p |
Statutory earnings per share total – diluted | 72.0p | 65.1p |
Statutory earnings per share continuing operations – basic | 72.3p | 63.8p |
Statutory earnings per share continuing operations – diluted | 72.0p | 63.4p |
Year ended 31 July 2024 | Year ended 31 July 2023 | |||||
Basic EPS | Diluted EPS | Basic EPS | Diluted EPS | |||
£m | (p) | (p) | £m | (p) | (p) | |
Total profit attributable to | ||||||
equity shareholders of the | ||||||
Parent Company | 250 | 72.3p | 72.0p | 231 | 65.5 | 65.1 |
Exclude: Non-headline items | ||||||
(note 3) | 115 | 113 | ||||
Headline earnings per share | 365 | 105.5p | 105.2p | 344 | 97.5 | 97.0 |
Profit from continuing | ||||||
operations attributable to | ||||||
equity shareholders of the | ||||||
Parent Company | 250 | 72.3p | 72.0p | 225 | 63.8 | 63.4 |
Exclude: Non-headline items | ||||||
(note 3) | 115 | 119 | ||||
Headline earnings per share – | ||||||
continuing operations | 365 | 105.5p | 105.2p | 344 | 97.5 | 97.0 |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
The taxation charge in the consolidated income statement for the year | ||
comprises: | ||
Continuing operations | ||
Current taxation: | ||
– current income tax charge | 114 | 112 |
– current tax adjustments in respect of prior periods | 1 | (7) |
Current taxation | 115 | 105 |
Deferred taxation | 6 | 29 |
Total taxation expense – continuing operations | 121 | 134 |
Analysed as: | ||
Headline taxation expense | 122 | 121 |
Non-headline taxation charge/(credit) | (1) | 13 |
Total taxation expense in the consolidated income statement | 121 | 134 |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Tax on items charged/(credited) to equity | ||
Deferred tax: | ||
– retirement benefit schemes | (17) | (32) |
Taxation on retirement benefit movements | (17) | (32) |
Current tax | |
£m | |
At 31 July 2022 | (17) |
Charge to income statement | (105) |
Tax paid | 92 |
At 31 July 2023 | (30) |
Comprising: | |
Current tax receivable | 47 |
Current tax payable within one year | (74) |
Corporation tax payable after more than one year | (3) |
At 31 July 2023 | (30) |
Charge to income statement | (115) |
Tax paid | 99 |
At 31 July 2024 | (46) |
Comprising: | |
Current tax receivable | 24 |
Current tax payable within one year | (70) |
At 31 July 2024 | (46) |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Profit before taxation | 372 | 366 |
Notional taxation expense at UK corporate rate of 25% (FY2023: 21%) | 93 | 77 |
Different tax rates on non-UK profits and losses | (4) | 13 |
Non-deductible expenses and other charges | 20 | 24 |
Tax credits and non-taxable income | (7) | (10) |
Non-headline UK deferred tax asset recognition adjustment | 19 | 31 |
Other adjustments to unrecognised deferred tax | (3) | 2 |
Prior year true-up | 3 | (3) |
Total taxation expense in the consolidated income statement | 121 | 134 |
Comprising: | ||
Taxation on headline profit | 122 | 121 |
Non-headline taxation items: | ||
– Tax credit on non-headline loss | (20) | (18) |
– UK deferred tax asset recognition adjustment | 19 | 31 |
Taxation on non-headline items | (1) | 13 |
Total taxation expense in the consolidated income statement | 121 | 134 |
Property, plant, | ||||||
equipment and | Losses | |||||
intangible | Employment | carried | ||||
assets | benefits | forward | Provisions | Other | Total | |
£m | £m | £m | £m | £m | £m | |
At 31 July 2022 | (76) | (51) | 103 | 79 | (4) | 51 |
Reallocations | – | (2) | 6 | (4) | – | – |
Charge to income statement – | ||||||
continuing operations | 13 | (3) | (32) | (5) | (2) | (29) |
Credit to equity | – | 32 | – | – | – | 32 |
Foreign exchange rate | ||||||
movements | 3 | (1) | (2) | (4) | 2 | (2) |
At 31 July 2023 | (60) | (25) | 75 | 66 | (4) | 52 |
IAS 12 amendment - Initial | ||||||
recognition exemption | (26) | – | – | – | 26 | – |
At 31 July 2023 (restated) | (86) | (25) | 75 | 66 | 22 | 52 |
Comprising: | ||||||
Deferred tax assets | (2) | (27) | 50 | 60 | 40 | 121 |
Deferred tax liabilities | (84) | 2 | 25 | 6 | (18) | (69) |
At 31 July 2023 | (86) | (25) | 75 | 66 | 22 | 52 |
Reallocations | (9) | (1) | 5 | – | 5 | – |
Charge to income statement – | ||||||
continuing operations | 16 | (2) | (15) | 4 | (9) | (6) |
Credit to equity | – | 17 | – | – | – | 17 |
Foreign exchange rate | ||||||
movements | – | (1) | – | 1 | (1) | (1) |
At 31 July 2024 | (79) | (12) | 65 | 71 | 17 | 62 |
Comprising: | ||||||
Deferred tax assets | (9) | (15) | 31 | 63 | 24 | 94 |
Deferred tax liabilities | (70) | 3 | 34 | 8 | (7) | (32) |
At 31 July 2024 | (79) | (12) | 65 | 71 | 17 | 62 |
2024 | Expiry of | 2023 | Expiry of | |
£m | losses | £m | losses | |
Unrestricted losses – operating losses | 603 | No expiry | 521 | No expiry |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Staff costs during the period | ||
Wages and salaries | 844 | 802 |
Social security | 99 | 92 |
Share-based payment (note 9) | 14 | 14 |
Pension costs (including defined contribution schemes) (note 8) | 35 | 31 |
Total | 992 | 939 |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
John Crane | 6,200 | 6,050 |
Smiths Detection | 3,400 | 3,250 |
Flex-Tek | 4,050 | 3,750 |
Smiths Interconnect | 2,600 | 2,800 |
Corporate (including central/shared IT services) | 300 | 300 |
Total | 16,550 | 16,150 |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Key management compensation | ||
Salaries and short-term employee benefits | 12.6 | 12.0 |
Cost of retirement benefits | 0.7 | 0.7 |
Cost of share-based incentive plans | 3.4 | 4.9 |
Year ended 31 July 2024 | Year ended 31 July 2023 | |||
Weighted | Weighted | |||
Number of | average | Number of | average | |
instruments | exercise | instruments | exercise | |
’000 | price | ’000 | price | |
LTIP | 1,389 | 1,580 | ||
SAYE | 11 | £13.06 | 16 | £11.45 |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
At beginning of period | 89 | 194 |
Foreign exchange rate movements | 1 | 1 |
Current service cost | (4) | (2) |
Headline scheme administration costs | (3) | (4) |
Non-headline scheme administration costs | (6) | (2) |
Past service cost, curtailments, settlements – continuing operations | (4) | 4 |
Finance income – retirement benefits | 6 | 7 |
Contributions by employer | 16 | 5 |
Actuarial (losses)/gains | (66) | (114) |
Net retirement benefit asset | 29 | 89 |
2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
UK | US | Other | UK | US | Other | |
Rate of increase in salaries | n/a | n/a | 2.8% | n/a | n/a | 2.5% |
Rate of increase for active deferred | ||||||
members | 4.0% | n/a | n/a | 4.0% | n/a | n/a |
Rate of increase in pensions in payment | 3.3% | n/a | 0.5% | 3.3% | n/a | 1.6% |
Rate of increase in deferred pensions | 3.3% | n/a | n/a | 3.3% | n/a | n/a |
Discount rate | 5.0% | 5.2% | 2.8% | 5.1% | 5.2% | 2.8% |
Inflation rate | 3.3% | n/a | 2.1% | 3.3% | n/a | 0.4% |
UK schemes | ||||
Male | Female | Male | Female | |
Expected further years of life | 31 July 2024 | 31 July 2024 | 31 July 2023 | 31 July 2023 |
Member who retires next year at age 65 | 22 | 24 | 21 | 23 |
Member, currently 45, when they retire in 20 years’ time | 23 | 25 | 20 | 24 |
US schemes | ||||
Male | Female | Male | Female | |
Expected further years of life | 31 July 2024 | 31 July 2024 | 31 July 2023 | 31 July 2023 |
Member who retires next year at age 65 | 21 | 22 | 21 | 22 |
Member, currently 45, when they retire in 20 years’ time | 22 | 24 | 22 | 24 |
Profit before | Increase/ | (Increase)/ | Profit before | Increase/ | (Increase)/ | |
tax | (decrease) in | decrease in | tax | (decrease) in | decrease in | |
for year | scheme | scheme | for year | scheme | scheme | |
ended | assets | liabilities | ended | assets | liabilities | |
31 July 2024 | 31 July 2024 | 31 July 2024 | 31 July 2023 | 31 July 2023 | 31 July 2023 | |
£m | £m | £m | £m | £m | £m | |
Rate of mortality – one year | ||||||
increase in life expectancy | (2) | 66 | (108) | (2) | 60 | (88) |
Rate of mortality – one year | ||||||
decrease in life expectancy | 2 | (67) | 110 | 2 | (62) | 89 |
Rate of inflation – 0.25% increase | (1) | 21 | (39) | (1) | 23 | (43) |
Discount rate – 0.25% increase | 2 | (33) | 65 | 2 | (36) | 60 |
Market value of scheme assets – | ||||||
2.5% increase | 2 | 30 | – | 2 | 30 | – |
31 July 2024 – £m | ||||
UK | US | Other | ||
schemes | schemes | countries | Total | |
Cash and cash equivalents | 63 | 8 | 1 | 72 |
Pooled funds: | ||||
– Pooled equity | – | – | 5 | 5 |
– Pooled Diversified Growth | – | – | 12 | 12 |
– Pooled credit | 337 | – | – | 337 |
Corporate bonds | 208 | 141 | – | 349 |
Government bonds/LDI | 427 | 41 | 3 | 471 |
Insured liabilities | 1,337 | – | – | 1,337 |
Total market value | 2,372 | 190 | 21 | 2,583 |
31 July 2023 – £m | ||||
UK | US | Other | ||
schemes | schemes | countries | Total | |
Cash and cash equivalents | 93 | 1 | 1 | 95 |
Pooled funds: | ||||
– Pooled equity | – | – | 3 | 3 |
– Pooled Diversified Growth | – | – | 13 | 13 |
– Pooled credit | 320 | – | – | 320 |
Corporate bonds | 203 | 141 | – | 344 |
Government bonds/LDI | 421 | 44 | 3 | 468 |
Insured liabilities | 1,323 | – | – | 1,323 |
Property | 7 | – | – | 7 |
Total market value | 2,367 | 186 | 20 | 2,573 |
31 July 2024 – £m | |||
US | |||
SIPS | TIGPS | schemes | |
Present value of funded scheme liabilities: | |||
– Active deferred members | (13) | (9) | (28) |
– Deferred members | (379) | (304) | (80) |
– Pensioners | (915) | (609) | (93) |
Present value of funded scheme liabilities | (1,307) | (922) | (201) |
Market value of scheme assets | 1,439 | 933 | 190 |
Surplus restriction | – | (11) | – |
Surplus/(deficit) | 132 | – | (11) |
31 July 2023 – £m | |||
US | |||
SIPS | TIGPS | schemes | |
Present value of funded scheme liabilities: | |||
– Active deferred members | (25) | (18) | (31) |
– Deferred members | (388) | (326) | (86) |
– Pensioners | (838) | (561) | (85) |
Present value of funded scheme liabilities | (1,251) | (905) | (202) |
Market value of scheme assets | 1,446 | 921 | 186 |
Surplus restriction | – | (16) | – |
Surplus/(deficit) | 195 | – | (16) |
31 July 2024 – £m | ||||
UK | US | Other | ||
schemes | schemes | countries | Total | |
Market value of scheme assets | 2,372 | 190 | 21 | 2,583 |
Present value of funded scheme liabilities | (2,229) | (201) | (26) | (2,456) |
Surplus restriction | (11) | – | – | (11) |
Surplus/(deficit) | 132 | (11) | (5) | 116 |
Unfunded pension plans | (37) | (6) | (38) | (81) |
Post-retirement healthcare | (2) | (1) | (3) | (6) |
Present value of unfunded obligations | (39) | (7) | (41) | (87) |
Net pension asset/(liability) | 93 | (18) | (46) | 29 |
Comprising: | ||||
Retirement benefit assets | 132 | – | – | 132 |
Retirement benefit liabilities | (39) | (18) | (46) | (103) |
Net pension asset/(liability) | 93 | (18) | (46) | 29 |
31 July 2023 – £m | ||||
UK | US | Other | ||
schemes | schemes | countries | Total | |
Market value of scheme assets | 2,367 | 186 | 20 | 2,573 |
Present value of funded scheme liabilities | (2,156) | (202) | (25) | (2,383) |
Surplus restriction | (16) | – | – | (16) |
Surplus/(deficit) | 195 | (16) | (5) | 174 |
Unfunded pension plans | (37) | (6) | (36) | (79) |
Post-retirement healthcare | (3) | (1) | (2) | (6) |
Present value of unfunded obligations | (40) | (7) | (38) | (85) |
Net pension asset/(liability) | 155 | (23) | (43) | 89 |
Comprising: | ||||
Retirement benefit assets | 195 | – | – | 195 |
Retirement benefit liabilities | (40) | (23) | (43) | (106) |
Net pension asset/(liability) | 155 | (23) | (43) | 89 |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Amounts charged to operating profit | ||
Current service cost | 4 | 2 |
Past service costs – benefit equalisations | 4 | (5) |
Settlement loss | – | 1 |
Headline scheme administration costs | 3 | 4 |
Non-headline scheme administration costs | 6 | 2 |
17 | 4 | |
The operating cost is charged as follows: | ||
Headline administrative expenses | 7 | 6 |
Non-headline settlement loss | – | 1 |
Non-headline administrative expenses | 10 | (3) |
17 | 4 | |
Amounts credited to finance costs | ||
Non-headline other finance income – retirement benefits | (6) | (7) |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Re-measurements of retirement defined benefit assets and liabilities | ||
Difference between interest credit and return on assets | 54 | (660) |
Experience gains/(losses) on scheme liabilities | (103) | (54) |
Actuarial gains arising from changes in demographic assumptions | 4 | 48 |
Actuarial gains/(losses) arising from changes in financial assumptions | (26) | 548 |
Movement in surplus restriction | 5 | 4 |
(66) | (114) |
31 July 2024 – £m | ||||
UK | US | Other | ||
schemes | schemes | countries | Total | |
At beginning of period | 2,367 | 186 | 20 | 2,573 |
Interest on assets | 117 | 9 | 1 | 127 |
Actuarial movement on scheme assets | 54 | (1) | 1 | 54 |
Employer contributions | – | 10 | – | 10 |
Scheme administration costs | (7) | (2) | – | (9) |
Benefits paid | (159) | (12) | (1) | (172) |
At end of period | 2,372 | 190 | 21 | 2,583 |
31 July 2023 – £m | ||||
UK | US | Other | ||
schemes | schemes | countries | Total | |
At beginning of period | 3,067 | 225 | 22 | 3,314 |
Interest on assets | 105 | 10 | 1 | 116 |
Actuarial movement on scheme assets | (638) | (21) | (1) | (660) |
Scheme administration costs | (5) | (1) | – | (6) |
Foreign exchange rate movements | – | (10) | – | (10) |
Assets distributed on settlements | – | (4) | – | (4) |
Benefits paid | (162) | (13) | (2) | (177) |
At end of period | 2,367 | 186 | 20 | 2,573 |
31 July 2024 – £m | ||||
UK | US | Other | ||
schemes | schemes | countries | Total | |
At beginning of period | (2,156) | (202) | (25) | (2,383) |
Past service costs | (3) | – | (1) | (4) |
Interest on obligations | (106) | (11) | (1) | (118) |
Actuarial movement on liabilities | (123) | – | (1) | (124) |
Foreign exchange rate movements | – | – | 1 | 1 |
Benefits paid | 159 | 12 | 1 | 172 |
At end of period | (2,229) | (201) | (26) | (2,456) |
31 July 2023 – £m | ||||
UK | US | Other | ||
schemes | schemes | countries | Total | |
At beginning of period | (2,738) | (238) | (27) | (3,003) |
Past service costs | 4 | – | – | 4 |
Interest on obligations | (94) | (10) | (1) | (105) |
Actuarial movement on liabilities | 510 | 19 | 1 | 530 |
Foreign exchange rate movements | – | 11 | – | 11 |
Liabilities extinguished on settlements | – | 3 | – | 3 |
Benefits paid | 162 | 13 | 2 | 177 |
At end of period | (2,156) | (202) | (25) | (2,383) |
Assets | Obligations | |||
Year ended | Year ended | Year ended | Year ended | |
31 July 2024 | 31 July 2023 | 31 July 2024 | 31 July 2023 | |
£m | £m | £m | £m | |
At beginning of period | – | – | (85) | (98) |
Current service cost | – | – | (4) | (1) |
Interest on obligations | – | – | (3) | (3) |
Actuarial movement | – | – | (1) | 12 |
Employer contributions | 6 | 5 | – | – |
Benefits paid | (6) | (5) | 6 | 5 |
At end of period | – | – | (87) | (85) |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Irrecoverable asset at beginning of period | (16) | (20) |
Actuarial movement on scheme assets | 5 | 4 |
At end of period | (11) | (16) |
Ordinary shares under option/ | Long-term | Restricted | Save as you earn | Weighted average | |
award (’000) | incentive plans | stock | scheme | Total | exercise price |
31 July 2022 | 5,310 | 83 | 885 | 6,278 | £1.45 |
Granted | 2,023 | 24 | 253 | 2,300 | £1.47 |
Exercised | (309) | (20) | (109) | (438) | £2.88 |
Lapsed | (2,196) | – | (71) | (2,267) | £0.33 |
31 July 2023 | 4,828 | 87 | 958 | 5,873 | £1.78 |
Granted | 1,919 | 45 | 243 | 2,207 | £1.34 |
Exercised | (1,140) | (10) | (437) | (1,587) | £2.54 |
Lapsed | (1,218) | (8) | (79) | (1,305) | £0.73 |
31 July 2024 | 4,389 | 114 | 685 | 5,188 | £1.62 |
Weighted average | Weighted average | |||
Total shares under | remaining | Total shares under | remaining | |
options/awards | contractual | options/awards | contractual | |
at 31 July 2024 | life at 31 July 2024 | at 31 July 2023 | life at 31 July 2023 | |
Range of exercise prices | (’000) | (months) | (’000) | (months) |
£0.00 – £2.00 | 4,503 | 17 | 4,915 | 17 |
£6.01 – £10.00 | 2 | – | 444 | 6 |
£10.01 – £12.00 | 683 | 29 | 514 | 33 |
Acquired | Software, | ||||
intangibles | patents and | ||||
Development | (see table | intellectual | |||
Goodwill | costs | below) | property | Total | |
£m | £m | £m | £m | £m | |
Cost | |||||
At 31 July 2022 | 1,311 | 174 | 630 | 193 | 2,308 |
Foreign exchange rate movements | (45) | (2) | (31) | (3) | (81) |
Business combinations | 7 | – | 13 | – | 20 |
Additions | – | 21 | – | 7 | 28 |
Disposals | – | – | – | (38) | (38) |
At 31 July 2023 | 1,273 | 193 | 612 | 159 | 2,237 |
Foreign exchange rate movements | (7) | (2) | (1) | – | (10) |
Business combinations | 10 | – | 34 | – | 44 |
Additions | – | 14 | – | 4 | 18 |
Disposals | – | – | – | (1) | (1) |
At 31 July 2024 | 1,276 | 205 | 645 | 162 | 2,288 |
Amortisation and impairments | |||||
At 31 July 2022 | 67 | 123 | 373 | 157 | 720 |
Foreign exchange rate movements | (3) | (1) | (19) | (4) | (27) |
Amortisation charge for the year | – | 2 | 52 | 7 | 61 |
Disposals | – | – | – | (38) | (38) |
At 31 July 2023 | 64 | 124 | 406 | 122 | 716 |
Foreign exchange rate movements | – | (2) | (2) | – | (4) |
Amortisation charge for the year | – | 2 | 49 | 5 | 56 |
Disposals | – | – | – | (1) | (1) |
At 31 July 2024 | 64 | 124 | 453 | 126 | 767 |
Net book value at 31 July 2024 | 1,212 | 81 | 192 | 36 | 1,521 |
Net book value at 31 July 2023 | 1,209 | 69 | 206 | 37 | 1,521 |
Net book value at 31 July 2022 | 1,244 | 51 | 257 | 36 | 1,588 |
Patents, | ||||
licences | Total | |||
and | Customer | acquired | ||
trademarks | Technology | relationships | intangibles | |
£m | £m | £m | £m | |
Cost | ||||
At 31 July 2022 | 19 | 152 | 459 | 630 |
Foreign exchange rate movements | – | (9) | (22) | (31) |
Business combinations | 1 | 2 | 10 | 13 |
At 31 July 2023 | 20 | 145 | 447 | 612 |
Foreign exchange rate movements | – | – | (1) | (1) |
Business combinations | 3 | – | 31 | 34 |
At 31 July 2024 | 23 | 145 | 477 | 645 |
Amortisation | ||||
At 31 July 2022 | 8 | 87 | 278 | 373 |
Foreign exchange rate movements | – | (6) | (13) | (19) |
Charge for the year | 1 | 11 | 40 | 52 |
At 31 July 2023 | 9 | 92 | 305 | 406 |
Foreign exchange rate movements | – | – | (2) | (2) |
Charge for the year | 2 | 10 | 37 | 49 |
At July 2024 | 11 | 102 | 340 | 453 |
Net book value at 31 July 2024 | 12 | 43 | 137 | 192 |
Net book value at 31 July 2023 | 11 | 53 | 142 | 206 |
Net book value at 31 July 2022 | 11 | 65 | 181 | 257 |
2024 | 2023 | |||
2024 | Number of | 2023 | Number of | |
£m | CGUs | £m | CGUs | |
John Crane | 130 | 1 | 131 | 1 |
Smiths Detection | 625 | 1 | 630 | 1 |
Flex-Tek | 193 | 1 | 183 | 1 |
Smiths Interconnect | 264 | 1 | 265 | 1 |
1,212 | 4 | 1,209 | 4 |
As at 31 May 2024 | |||||
Smiths | Smiths | ||||
John Crane | Detection | Flex-Tek | Interconnect | ||
Net book value of goodwill (£m) | 135 | 649 | 191 | 279 | |
Basis of valuation | Value in use | Value in use | Value in use | Value in use | |
Discount rate | – pre-tax | 11.9% | 12.8% | 12.6% | 12.5% |
– post-tax | 9.4% | 9.5% | 10.0% | 10.1% | |
Period covered by management projections | 5 years | 5 years | 5 years | 5 years | |
Capital expenditure – annual average over projection | |||||
period (£m) | 31 | 19 | 10 | 12 | |
Revenue – compound annual growth rate over | |||||
projection period | 6.1% | 3.8% | 3.6% | 4.4% | |
Average earnings before interest and tax margin | 22.2% | 12.9% | 20.5% | 15.8% | |
Long-term growth rates | 2.6% | 2.3% | 2.1% | 2.5% | |
As at 31 May 2023 | |||||
Smiths | Smiths | ||||
John Crane | Detection | Flex-Tek | Interconnect | ||
Net book value of goodwill (£m) | 135 | 649 | 191 | 279 | |
Basis of valuation | Value in use | Value in use | Value in use | Value in use | |
Discount rate | – pre-tax | 13.0% | 12.2% | 11.8% | 11.5% |
– post-tax | 9.7% | 9.3% | 9.4% | 9.4% | |
Period covered by management projections | 5 years | 5 years | 5 years | 5 years | |
Capital expenditure – annual average over projection | |||||
period (£m) | 27 | 27 | 10 | 20 | |
Revenue – compound annual growth rate over | |||||
projection period | 5.3% | 4.5% | 3.4% | 4.7% | |
Average earnings before interest and tax margin | 24.6% | 14.5% | 19.5% | 18.6% | |
Long-term growth rates | 2.7% | 2.4% | 2.2% | 2.5% |
Change required for carrying value to equal recoverable amount – FY2024 | Smiths Detection |
Revenue – compound annual growth rate (CAGR) over five-year projection period | -470 bps decrease |
Average earnings before interest and tax margin | -220 bps decrease |
Post-tax discount rate | +150 bps increase |
Change required for carrying value to equal recoverable amount – FY2023 | Smiths Detection |
Revenue – compound annual growth rate (CAGR) over five-year projection period | -460 bps decrease |
Average earnings before interest and tax margin | -220 bps decrease |
Post-tax discount rate | +140 bps increase |
Fixtures, | ||||
fittings, | ||||
Land and | Plant and | tools and | ||
buildings | machinery | equipment | Total | |
£m | £m | £m | £m | |
Cost or valuation | ||||
At 31 July 2022 | 176 | 457 | 129 | 762 |
Foreign exchange rate movements | (6) | (14) | (2) | (22) |
Business combinations | – | 2 | – | 2 |
Additions | 10 | 33 | 10 | 53 |
Disposals | (2) | (15) | (17) | (34) |
At 31 July 2023 | 178 | 463 | 120 | 761 |
Foreign exchange rate movements | (3) | (7) | (2) | (12) |
Business combinations | – | 7 | – | 7 |
Additions | 10 | 50 | 8 | 68 |
Disposals | (4) | (17) | (12) | (33) |
At 31 July 2024 | 181 | 496 | 114 | 791 |
Depreciation | ||||
At 31 July 2022 | 108 | 299 | 112 | 519 |
Foreign exchange rate movements | (4) | (8) | (2) | (14) |
Charge for the year | 8 | 25 | 9 | 42 |
Disposals | (2) | (14) | (17) | (33) |
At 31 July 2023 | 110 | 302 | 102 | 514 |
Foreign exchange rate movements | (1) | (3) | (1) | (5) |
Charge for the year | 8 | 32 | 5 | 45 |
Disposals | (4) | (17) | (12) | (33) |
At July 2024 | 113 | 314 | 94 | 521 |
Net book value at 31 July 2024 | 68 | 182 | 20 | 270 |
Net book value at 31 July 2023 | 68 | 161 | 18 | 247 |
Net book value at 31 July 2022 | 68 | 158 | 17 | 243 |
Properties | Vehicles | Equipment | Total | |
£m | £m | £m | £m | |
Cost or valuation | ||||
At 31 July 2022 | 174 | 21 | 1 | 196 |
Foreign exchange rate movements | (6) | (1) | – | (7) |
Recognition of right of use asset | 27 | 7 | 1 | 35 |
Derecognition of right of use asset | (5) | – | – | (5) |
At 31 July 2023 | 190 | 27 | 2 | 219 |
Foreign exchange rate movements | (3) | (1) | – | (4) |
Business combinations | 12 | – | – | 12 |
Recognition of right of use asset | 18 | 10 | – | 28 |
Derecognition of right of use asset | (5) | – | – | (5) |
At 31 July 2024 | 212 | 36 | 2 | 250 |
Depreciation | ||||
At 31 July 2022 | 75 | 15 | – | 90 |
Foreign exchange rate movements | (4) | – | – | (4) |
Charge for the year | 27 | 4 | 1 | 32 |
Derecognition of right of use asset | (4) | – | – | (4) |
At 31 July 2023 | 94 | 19 | 1 | 114 |
Foreign exchange rate movements | (2) | (1) | – | (3) |
Charge for the year | 29 | 5 | – | 34 |
Derecognition of right of use asset | (5) | – | – | (5) |
At 31 July 2024 | 116 | 23 | 1 | 140 |
Net book value at 31 July 2024 | 96 | 13 | 1 | 110 |
Net book value at 31 July 2023 | 96 | 8 | 1 | 105 |
Net book value at 31 July 2022 | 99 | 6 | 1 | 106 |
Investment in | Deferred | Investments | Cash | ||
ICU Medical, | contingent | in early stage | collateral | ||
Inc equity | consideration | businesses | deposit | Total | |
£m | £m | £m | £m | £m | |
Cost or valuation | |||||
At 31 July 2022 | 364 | 19 | 8 | 4 | 395 |
Fair value change through profit and loss | – | (6) | – | – | (6) |
Fair value change through other | |||||
comprehensive income | (17) | – | (1) | – | (18) |
At 31 July 2023 | 347 | 13 | 7 | 4 | 371 |
Fair value change through profit and loss | – | (13) | – | – | (13) |
Fair value change through other | |||||
comprehensive income | (103) | – | (2) | – | (105) |
Disposals | (197) | – | – | (3) | (200) |
At 31 July 2024 | 47 | – | 5 | 1 | 53 |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Raw materials and consumables | 192 | 201 |
Work in progress | 148 | 130 |
Finished goods | 303 | 306 |
Total inventories | 643 | 637 |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Gross inventory carried at full value | 560 | 545 |
Gross value of inventory partly or fully provided for | 146 | 158 |
706 | 703 | |
Inventory provision | (63) | (66) |
Inventory after provisions | 643 | 637 |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Non-current | ||
Trade receivables | – | 2 |
Prepayments | 1 | – |
Contract assets | 86 | 65 |
Other receivables | 9 | 8 |
96 | 75 | |
Current | ||
Trade receivables | 544 | 493 |
Prepayments | 58 | 40 |
Contract assets | 123 | 121 |
Other receivables | 101 | 118 |
826 | 772 |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Trade receivables which are not yet due | 436 | 389 |
Trade receivables which are between 1-30 days overdue | 56 | 52 |
Trade receivables which are between 31-60 days overdue | 17 | 19 |
Trade receivables which are between 61-90 days overdue | 13 | 12 |
Trade receivables which are between 91-120 days overdue | 5 | 8 |
Trade receivables which are more than 120 days overdue | 46 | 45 |
573 | 525 | |
Expected credit loss allowance provision | (29) | (30) |
Trade receivables | 544 | 495 |
Movement in expected credit loss allowance | ||
31 July 2024 | 31 July 2023 | |
£m | £m | |
Brought forward loss allowance at the start of the period | 30 | 36 |
Exchange adjustments | 1 | (1) |
Increase in allowance recognised in the income statement | 4 | 4 |
Amounts written off or recovered during the year | (6) | (9) |
Carried forward loss allowance at the end of the year | 29 | 30 |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Non-current | ||
Other payables | 15 | 13 |
Contract liabilities | 26 | 27 |
41 | 40 | |
Current | ||
Trade payables | 274 | 247 |
Other payables | 35 | 51 |
Other taxation and social security costs | 60 | 66 |
Accruals | 204 | 200 |
Contract liabilities | 191 | 159 |
764 | 723 |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Cash and cash equivalents | ||
Net cash and deposits | 459 | 285 |
Short-term borrowings | ||
Lease liabilities | (32) | (26) |
Interest accrual | (2) | (3) |
(34) | (29) | |
Long-term borrowings | ||
€650m 2.00% Eurobond 2027 | (534) | (534) |
Lease liabilities | (91) | (91) |
(625) | (625) | |
Borrowings/gross debt | (659) | (654) |
Derivatives managing interest rate risk and currency profile of the debt | (13) | (18) |
Net debt | (213) | (387) |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Cash at bank and in hand | 123 | 175 |
Short-term deposits | 336 | 110 |
Cash and cash equivalents | 459 | 285 |
Non-current | Current | Current | Non-current | ||
assets | assets | liabilities | liabilities | Net balance | |
£m | £m | £m | £m | £m | |
Derivatives managing interest rate risk and | |||||
currency profile of the debt | – | – | – | (13) | (13) |
Foreign exchange forward contracts | – | 4 | (4) | – | – |
At 31 July 2024 | – | 4 | (4) | (13) | (13) |
Derivatives managing interest rate risk and | |||||
currency profile of the debt | – | – | – | (18) | (18) |
Foreign exchange forward contracts | – | 5 | (2) | – | 3 |
At 31 July 2023 | – | 5 | (2) | (18) | (15) |
Changes in net debt | |||||||
Interest rate | Changes in | Total | |||||
Cash | Other | and cross- | other financing | liabilities | |||
and cash | short-term | Long-term | currency | items: FX | from financing | ||
equivalents | borrowings | borrowings | swaps | Net debt | contracts | activities | |
£m | £m | £m | £m | £m | £m | £m | |
At 31 July 2023 | 285 | (29) | (625) | (18) | (387) | 3 | (384) |
Foreign exchange | |||||||
gains/(losses) | (14) | 1 | 10 | – | (3) | – | (3) |
Net cash inflow | |||||||
from continuing | |||||||
operations | 188 | – | – | – | 188 | – | 188 |
Lease payments | – | 39 | – | – | 39 | – | 39 |
Interest paid | – | 57 | – | – | 57 | – | 57 |
Interest expense* | – | (63) | – | – | (63) | – | (63) |
Cash inflow from | |||||||
matured derivative | |||||||
contracts | – | – | – | – | – | 5 | 5 |
Fair value | |||||||
movements | – | – | (9) | 5 | (4) | (8) | (12) |
Lease liabilities | |||||||
acquired | – | – | (12) | – | (12) | – | (12) |
Net movement | |||||||
from new leases | |||||||
and modifications | – | (28) | – | – | (28) | – | (28) |
Reclassifications | – | (11) | 11 | – | – | – | – |
At 31 July 2024 | 459 | (34) | (625) | (13) | (213) | – | (213) |
Changes in net debt | |||||||
Interest rate | Changes in | Total | |||||
Cash | Other | and cross- | other financing | liabilities | |||
and cash | short-term | Long-term | currency | items: FX | from financing | ||
equivalents | borrowings | borrowings | swaps | Net debt | contracts | activities | |
£m | £m | £m | £m | £m | £m | £m | |
At 31 July 2022 | 1,056 | (538) | (628) | (40) | (150) | (3) | (153) |
Foreign exchange | |||||||
gains/(losses) | (10) | (21) | (10) | – | (41) | # (4,031) | (4,072) |
Net cash inflow | |||||||
from continuing | |||||||
operations | (761) | 564 | – | 8 | (189) | # 4,031 | 3,842 |
Net movement | |||||||
from new leases | |||||||
and modifications | – | (34) | – | – | (34) | – | (34) |
Interest rate | |||||||
hedge fair value | |||||||
movements | – | (2) | 16 | – | 14 | – | 14 |
Revaluation of | |||||||
derivative contracts | – | – | – | 14 | 14 | 6 | 20 |
Interest expense | |||||||
taken to income | |||||||
statement | – | 28 | – | – | 28 | – | 28 |
Interest paid | – | (29) | – | – | (29) | – | (29) |
Reclassifications | – | 3 | (3) | – | – | – | – |
At 31 July 2023 | 285 | (29) | (625) | (18) | (387) | 3 | (384) |
At 31 July 2024 | |||||
Sterling | US$ | Euro | Other | Total | |
£m | £m | £m | £m | £m | |
Financial assets and liabilities | |||||
Financial instruments included in trade and | |||||
other receivables | 38 | 417 | 147 | 195 | 797 |
Financial instruments included in trade and | |||||
other payables | (45) | (222) | (117) | (111) | (495) |
Cash and cash equivalents | 139 | 222 | 19 | 79 | 459 |
Borrowings not designated as net investment | |||||
hedges | (26) | (61) | (14) | (22) | (123) |
106 | 356 | 35 | 141 | 638 | |
Exclude balances held in operations with the | |||||
same functional currency. | (108) | (305) | (38) | (153) | (604) |
Exposure arising from intra-Group loans | – | 65 | 37 | (71) | 31 |
Future forward foreign exchange contract | |||||
cash-flows | 13 | (93) | 6 | 74 | – |
11 | 23 | 40 | (9) | 65 |
At 31 July 2023 | |||||
Sterling | US$ | Euro | Other | Total | |
£m | £m | £m | £m | £m | |
Financial assets and liabilities | |||||
Financial instruments included in trade and | |||||
other receivables | 43 | 372 | 127 | 184 | 726 |
Financial instruments included in trade and | |||||
other payables | (64) | (216) | (93) | (103) | (476) |
Cash and cash equivalents | 50 | 115 | 29 | 91 | 285 |
Borrowings not designated as net investment | |||||
hedges | (27) | (54) | (12) | (24) | (117) |
2 | 217 | 51 | 148 | 418 | |
Exclude balances held in operations with the | |||||
same functional currency. | (7) | (287) | (57) | (153) | (504) |
Exposure arising from intra-Group loans | – | 127 | 28 | (73) | 82 |
Future forward foreign exchange contract | |||||
cash-flows | (63) | (23) | (48) | 133 | (1) |
(68) | 34 | (26) | 55 | (5) |
Impact on | Gain/(loss) | Impact on | Gain/(loss) | |
profit | recognised in | profit | recognised in | |
for the year | reserves | for the year | reserves | |
FY2024 | FY2024 | FY2023 | FY2023 | |
£m | £m | £m | £m | |
US dollar | 1 | 2 | – | 1 |
Euro | (1) | (3) | 1 | – |
Sterling | (2) | – | – | (1) |
Year ended | Year ended | ||
31 July 2024 | 31 July 2023 | ||
£m | £m | ||
Brought forward cash-flow hedge reserve at start of year | – | (3) | |
Foreign exchange forward contracts: | Net fair value gains on effective hedges | – | 1 |
Amount reclassified to income statement | |||
– finance costs | – | 2 | |
Carried forward cash-flow hedge reserve at end of year | – | – |
Changes in value | ||||||
Changes in value | of the hedging | |||||
of the hedged item | instrument | |||||
for calculating | for calculating | Cash-flow hedge | ||||
Financial | ineffectiveness | ineffectiveness | reserve | |||
Hedged item | Hedged exposure | Hedging instrument | year | £m | £m | £m |
Sales and | Foreign | Foreign exchange | FY2024 | – | – | – |
purchases | currency risk | contracts | FY2023 | 1 | (1) | 1 |
At 31 July 2024 | At 31 July 2023 | |||||
US$ | Euro | Total | US$ | Euro | Total | |
£m | £m | £m | £m | £m | £m | |
Loans designated as net | ||||||
investment hedges | – | (288) | (288) | – | (293) | (293) |
Cross-currency swap | (248) | – | (248) | (247) | – | (247) |
(248) | (288) | (536) | (247) | (293) | (540) |
Year ended | Year ended | ||
31 July 2024 | 31 July 2023 | ||
£m | £m | ||
Brought forward net investment hedge reserve at start of year | (196) | (207) | |
Cross-currency swaps | Net fair value gains on effective hedges | – | 40 |
Bonds | Net fair value gains on effective hedges | 5 | (29) |
Carried forward net investment hedge reserve at end of year | (191) | (196) |
Changes in value | ||||||
Changes in value | of the hedging | |||||
of the hedged item | instrument | |||||
for calculating | for calculating | Net investment | ||||
ineffectiveness | ineffectiveness | hedge reserve | ||||
Hedged item | Hedged exposure | Hedging instrument | Financial year | £m | £m | £m |
Overseas | Foreign | Bonds | FY2024 | (5) | 5 | – |
operation | currency risk | |||||
Overseas | Foreign | Cross-currency | FY2023 | (40) | 40 | 40 |
operation | currency risk | swaps | ||||
Bonds | FY2023 | 29 | (29) | (29) | ||
(11) | 11 | 11 |
Loss | Loss | |
recognised | recognised | |
in hedge | in hedge | |
reserve | reserve | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
US dollar | 28 | 27 |
Euro | 32 | 33 |
As at 31 July 2024 | ||||
At fair value | Cash and | |||
through | cash | Fair value of | ||
profit or loss | equivalents | Borrowings | borrowings | |
£m | £m | £m | £m | |
Fixed interest | ||||
Less than one year | – | – | (34) | (34) |
Between one and five years | – | – | (351) | (343) |
Greater than five years | – | – | (33) | (33) |
Total fixed interest financial liabilities | – | – | (418) | (410) |
Floating rate interest financial assets/(liabilities) | 1 | 393 | (241) | (244) |
Total interest-bearing financial assets/(liabilities) | 1 | 393 | (659) | (654) |
Non-interest-bearing assets in the same category | – | 66 | – | – |
Total | 1 | 459 | (659) | (654) |
As at 31 July 2023 | ||||
At fair value | Cash and | |||
through profit | cash | Fair value of | ||
or loss | equivalents | Borrowings | borrowings | |
£m | £m | £m | £m | |
Fixed interest | ||||
Less than one year | – | – | (29) | (29) |
Between one and five years | – | – | (365) | (347) |
Greater than five years | – | – | (24) | (24) |
Total fixed interest financial liabilities | – | – | (418) | (400) |
Floating rate interest financial assets/(liabilities) | 4 | 215 | (236) | (240) |
Total interest-bearing financial assets/(liabilities) | 4 | 215 | (654) | (640) |
Non-interest-bearing assets in the same category | – | 70 | – | – |
Total | 4 | 285 | (654) | (640) |
Changes in value | ||||||||
Changes in value | of the hedging | Accumulated fair value | ||||||
of hedged item | instrument | Carrying amount | adjustments on hedged item | |||||
for calculating | for calculating | |||||||
ineffectiveness | ineffectiveness | Assets | Liabilities | Assets | Liabilities | |||
Hedged item | Hedged exposure | Financial year | £m | £m | £m | £m | £m | £m |
Fixed rate bonds (a) | Interest rate and currency rate risk | FY2024 | (9) | 9 | – | 253 | – | (12) |
Interest rate risk | FY2023 | (2) | 2 | – | – | – | – | |
Fixed rate bonds (a) | Interest rate and currency rate risk | FY2023 | 16 | (16) | – | 233 | – | (21) |
14 | (14) | – | 233 | – | (21) |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Cash in AAA liquidity funds | 196 | 78 |
Cash at banks with at least a AA- credit rating | 26 | 31 |
Cash at banks with all other A credit ratings | 185 | 170 |
Cash at other banks | 52 | 6 |
Investments in bank deposits | 1 | 4 |
Other investments | 5 | 7 |
465 | 296 |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Expiring after more than four years (FY2023: four years) | 623 | 622 |
As at 31 July 2024 | ||||
Contractual | Total | |||
Fair value | interest | contractual | ||
Borrowings | adjustments | payments | cash-flows | |
£m | £m | £m | £m | |
Less than one year | (34) | – | (11) | (45) |
Between one and two years | (21) | – | (11) | (32) |
Between two and three years | (18) | – | (11) | (29) |
Between three and four years | (11) | – | – | (11) |
Between four and five years | (554) | 12 | – | (542) |
Greater than five years | (33) | – | – | (33) |
Total | (671) | 12 | (33) | (692) |
As at 31 July 2023 | ||||
Contractual | Total | |||
Fair value | interest | contractual | ||
Borrowings | adjustments | payments | cash-flows | |
£m | £m | £m | £m | |
Less than one year | (29) | – | (11) | (40) |
Between one and two years | (27) | – | (11) | (38) |
Between two and three years | (20) | – | (11) | (31) |
Between three and four years | (13) | – | (11) | (24) |
Between four and five years | (561) | 21 | – | (540) |
Greater than five years | (24) | – | – | (24) |
Total | (674) | 21 | (44) | (697) |
As at 31 July 2024 | |||
Net | |||
Receipts | Payments | cash-flow | |
£m | £m | £m | |
Assets | |||
Less than one year | 260 | (256) | 4 |
Greater than one year | 4 | (4) | – |
Liabilities | |||
Less than one year | 223 | (227) | (4) |
Greater than one year | 254 | (267) | (13) |
Total | 741 | (754) | (13) |
As at 31 July 2023 | |||
Net | |||
Receipts | Payments | cash-flow | |
£m | £m | £m | |
Assets | |||
Less than one year | 209 | (204) | 5 |
Greater than one year | 6 | (6) | – |
Liabilities | |||
Less than one year | 159 | (161) | (2) |
Greater than one year | 252 | (270) | (18) |
Total | 626 | (641) | (15) |
At 31 July 2024 | ||||
Contract or | Fair value | |||
underlying | ||||
nominal | ||||
amount | Assets | Liabilities | Net | |
£m | £m | £m | £m | |
Foreign exchange contracts (cash-flow hedges) | 178 | 2 | (2) | – |
Foreign exchange contracts (not hedge accounted) | 315 | 2 | (2) | – |
Total foreign exchange contracts | 493 | 4 | (4) | – |
Cross-currency swaps (fair value and net investment | ||||
hedges) | 248 | – | (13) | (13) |
Total financial derivatives | 741 | 4 | (17) | (13) |
Balance sheet entries: | ||||
Non-current | 255 | – | (13) | (13) |
Current | 486 | 4 | (4) | – |
Total financial derivatives | 741 | 4 | (17) | (13) |
At 31 July 2023 | ||||
Contract or | Fair value | |||
underlying | ||||
nominal | ||||
amount | Assets | Liabilities | Net | |
£m | £m | £m | £m | |
Foreign exchange contracts (cash-flow hedges) | 123 | 1 | (1) | – |
Foreign exchange contracts (not hedge accounted) | 252 | 4 | (1) | 3 |
Total foreign exchange contracts | 375 | 5 | (2) | 3 |
Cross-currency swaps (fair value and net investment | ||||
hedges) | 247 | – | (18) | (18) |
Total financial derivatives | 622 | 5 | (20) | (15) |
Balance sheet entries: | ||||
Non-current | 256 | – | (18) | (18) |
Current | 366 | 5 | (2) | 3 |
Total financial derivatives | 622 | 5 | (20) | (15) |
Assets | Liabilities | Assets | Liabilities | |
31 July 2024 | 31 July 2024 | 31 July 2023 | 31 July 2023 | |
£m | £m | £m | £m | |
Gross value of assets and liabilities | 4 | (17) | 5 | (20) |
Related assets and liabilities subject to master netting | ||||
agreements | (4) | 4 | (5) | 5 |
Net exposure | – | (13) | – | (15) |
Maturity at 31 July 2024 | Maturity at 31 July 2023 | |||||||
Up to | More than | Up to | More than | |||||
Hedged exposure | Hedging instrument | one year | One to five years | five years | one year | One to five years | five years | |
Fair value hedges | ||||||||
Interest rate/ | Cross-currency swaps (EUR:GBP) | – Notional amount (£m) | – | 254 | – | – | 254 | – |
foreign currency risk | – Average exchange rate | – | 0.845 | – | – | 0.845 | – | |
– Average spread over three-month | – | 1.860% | – | – | 1.860% | – | ||
GBP SONIA | ||||||||
Net investment hedges | ||||||||
Foreign currency risk | Cross-currency swaps (GBP:USD) | – Notional amount (£m) | – | 248 | – | – | 247 | – |
– Average exchange rate | – | 1.2534 | – | – | 1.2534 | – | ||
Cash-flow hedges | ||||||||
Foreign currency risk | Foreign exchange contracts (EUR:GBP) | – Notional amount (£m) | 66 | – | – | 41 | 8 | – |
– Average exchange rate | 0.8588 | – | – | 0.7842 | 0.8893 | – | ||
Foreign exchange contracts (USD:GBP) | – Notional amount (£m) | 41 | – | – | 18 | – | – | |
– Average exchange rate | 1.2593 | – | – | 1.2269 | – | – | ||
Foreign exchange contracts (EUR:USD) | – Notional amount (£m) | 24 | – | – | 30 | – | – | |
– Average exchange rate | 0.9277 | – | – | 1.0939 | – | – | ||
Foreign exchange contracts (GBP:CZK) | – Notional amount (£m) | 25 | – | – | 10 | – | – | |
– Average exchange rate | 28.6952 | – | – | 27.7919 | – | – | ||
Foreign exchange contracts (EUR:AUD) | – Notional amount (£m) | 9 | – | – | 7 | – | – | |
– Average exchange rate | 1.6564 | – | – | 1.6603 | – | – |
At fair value | Total | ||||||
Basis for | At amortised | through profit | At fair value | carrying | Total | ||
determining | cost | or loss | through OCI | value | fair value | ||
As at 31 July 2024 | Notes | fair value | £m | £m | £m | £m | £m |
Financial assets | |||||||
Other investments | 14 | A | – | 1 | 47 | 48 | 48 |
Other investments | 14 | F | – | – | 5 | 5 | 5 |
Cash and cash | |||||||
equivalents | 18 | B | 459 | – | – | 459 | 459 |
Trade and other | |||||||
financial receivables | B/C | 797 | – | – | 797 | 797 | |
Derivative financial | |||||||
instruments | 20 | C | – | 4 | – | 4 | 4 |
Total financial | |||||||
assets | 1,256 | 5 | 52 | 1,313 | 1,313 | ||
Financial liabilities | |||||||
Trade and other | |||||||
financial payables | B | (495) | – | – | (495) | (495) | |
Short-term | |||||||
borrowings | 18 | B/D | (2) | – | – | (2) | (2) |
Long-term | |||||||
borrowings | 18 | D | (534) | – | – | (534) | (529) |
Lease liabilities | 18 | E | (123) | – | – | (123) | (123) |
Derivative financial | |||||||
instruments | 20 | C | – | (17) | – | (17) | (17) |
Total financial | |||||||
liabilities | (1,154) | (17) | – | (1,171) | (1,166) |
Basis for | At amortised | At fair value | Total | ||||
determining | cost | through profit | At fair value | carrying | Total | ||
fair value | or loss | through OCI | value | fair value | |||
As at 31 July 2023 | Notes | £m | £m | £m | £m | £m | |
Financial assets | |||||||
Other investments | 14 | A | – | 4 | 347 | 351 | 351 |
Other investments | 14 | F | – | 13 | 7 | 20 | 20 |
Cash and cash | |||||||
equivalents | 18 | A | 285 | – | – | 285 | 285 |
Trade and other | |||||||
financial receivables | B/C | 726 | – | – | 726 | 726 | |
Derivative financial | |||||||
instruments | 20 | C | – | 5 | – | 5 | 5 |
Total financial | |||||||
assets | 1,011 | 22 | 354 | 1,387 | 1,387 | ||
Financial liabilities | |||||||
Trade and other | |||||||
financial payables | B | (476) | – | – | (476) | (476) | |
Short-term | |||||||
borrowings | 18 | D | (3) | – | – | (3) | (3) |
Long-term | |||||||
borrowings | 18 | D | (534) | – | – | (534) | (520) |
Lease liabilities | 18 | E | (117) | – | – | (117) | (117) |
Derivative financial | |||||||
instruments | 20 | C | – | (20) | – | (20) | (20) |
Total financial | |||||||
liabilities | (1,130) | (20) | – | (1,150) | (1,136) |
Trading | Non-headline and legacy | Total | |||
John Crane, | Titeflex | ||||
Inc. | Corporation | ||||
litigation | litigation | Other | |||
£m | £m | £m | £m | £m | |
At 31 July 2022 | 11 | 229 | 52 | 43 | 335 |
Foreign exchange rate movements | – | (12) | (3) | – | (15) |
Provision charged | 5 | 13 | – | 18 | 36 |
Provision released | (4) | – | (7) | (14) | (25) |
Unwind of provision discount | – | 6 | 1 | – | 7 |
Utilisation | (4) | (32) | (2) | (14) | (52) |
At 31 July 2023 | 8 | 204 | 41 | 33 | 286 |
Comprising: | |||||
Current liabilities | 6 | 27 | 13 | 24 | 70 |
Non-current liabilities | 2 | 177 | 28 | 9 | 216 |
At 31 July 2023 | 8 | 204 | 41 | 33 | 286 |
Business combinations | 1 | – | – | – | 1 |
Provision charged | 12 | 29 | – | 5 | 46 |
Provision released | (2) | – | (5) | (5) | (12) |
Unwind of provision discount | – | 8 | 1 | – | 9 |
Utilisation | (6) | (21) | (1) | (8) | (36) |
At 31 July 2024 | 13 | 220 | 36 | 25 | 294 |
Comprising: | |||||
Current liabilities | 10 | 32 | 13 | 20 | 75 |
Non-current liabilities | 3 | 188 | 23 | 5 | 219 |
At 31 July 2024 | 13 | 220 | 36 | 25 | 294 |
Year ended | Year ended | Year ended | Year ended | Year ended | |
31 July 2024 | 31 July 2023 | 31 July 2022 | 31 July 2021 | 31 July 2020 | |
JCI claims experience | |||||
Claims against JCI that have been dismissed | 312,000 | 310,000 | 306,000 | 305,000 | 297,000 |
Claims JCI is currently a defendant in | 20,000 | 20,000 | 22,000 | 22,000 | 25,000 |
Cumulative final judgements, after appeals, | |||||
against JCI since 1979 | 156 | 154 | 149 | 149 | 149 |
Cumulative value of awards (US$m) | |||||
since 1979 | 191 | 190 | 175 | 175 | 175 |
Year ended | Year ended | Year ended | Year ended | Year ended | |
31 July 2024 | 31 July 2023 | 31 July 2022 | 31 July 2021 | 31 July 2020 | |
£m | £m | £m | £m | £m | |
John Crane, Inc. litigation provision | |||||
Gross provision | 261 | 246 | 258 | 220 | 235 |
Discount | (41) | (42) | (29) | (8) | (4) |
Discounted pre-tax provision | 220 | 204 | 229 | 212 | 231 |
Deferred tax | (54) | (51) | (57) | (54) | (59) |
Discounted post-tax provision | 166 | 153 | 172 | 158 | 172 |
Operating profit charge/(credit) | |||||
Increased provisions for adverse judgements | |||||
and legal defence costs | 28 | 28 | 24 | 10 | 14 |
Change in US risk-free rates | 1 | (15) | (18) | (5) | 16 |
Subtotal – items charged to the provision | 29 | 13 | 6 | 5 | 30 |
Litigation management, legal fees in | |||||
connection with litigation against insurers | |||||
and defence strategy | – | 2 | 1 | 1 | 1 |
Recoveries from insurers | (3) | (7) | – | (9) | (3) |
Total operating profit charge/(credit) | 26 | 8 | 7 | (3) | 28 |
Cash-flow | |||||
Provision utilisation – legal defence costs and | |||||
adverse judgements | (21) | (32) | (21) | (13) | (23) |
Litigation management expense | – | (2) | (1) | – | (1) |
Recoveries from insurers | 3 | 7 | – | 9 | 3 |
Net cash outflow | (18) | (27) | (22) | (4) | (21) |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Gross provision | 69 | 78 |
Discount | (33) | (37) |
Discounted pre-tax provision | 36 | 41 |
Deferred tax | (9) | (9) |
Discounted post-tax provision | 27 | 32 |
Issued | |||
capital | Consideration | ||
Number of shares | £m | £m | |
Ordinary shares of 37.5p each | |||
Total share capital at 31 July 2022 | 362,356,159 | 136 | |
Share buybacks | (13,053,169) | (5) | (207) |
Total share capital at 31 July 2023 | 349,302,990 | 131 | |
Share buybacks | (4,205,196) | (1) | (70) |
Total share capital at 31 July 2024 | 345,097,794 | 130 |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Ordinary final dividend of 28.70p (FY2023: 27.3p) paid 24 November 2023 | 100 | 97 |
Ordinary interim dividend of 13.55p (FY2023: 12.9p) paid 13 May 2024 | 47 | 46 |
147 | 143 |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Net investment hedge reserve (net of £7m of deferred tax (FY2023: £8m)) | (184) | (188) |
Hedge reserve total | (184) | (188) |
HCP | Burns | Total | ||
£m | £m | £m | ||
Non-current assets | – acquired intangible assets | 34 | – | 34 |
– plant and machinery | 6 | 1 | 7 | |
– right of use assets | 12 | – | 12 | |
Current assets | – inventory | 10 | – | 10 |
– trade and other receivables | 7 | – | 7 | |
Current liabilities | – trade and other payables | (3) | – | (3) |
Non-current liabilities | – lease liability | (12) | – | (12) |
Net assets acquired | 54 | 1 | 55 | |
Goodwill on current period acquisitions | 10 | – | 10 | |
Total consideration | 64 | 1 | 65 |
Year ended 31 July 2024 | Year ended 31 July 2023 | |||||
Headline | Non-headline | Total | Headline | Non-headline | Total | |
£m | £m | £m | £m | £m | £m | |
Operating profit: | ||||||
– continuing operations | 526 | (111) | 415 | 501 | (98) | 403 |
– discontinued operations | – | – | – | – | 6 | 6 |
Amortisation of intangible assets | 7 | 49 | 56 | 9 | 52 | 61 |
Depreciation of property, plant | ||||||
and equipment | 44 | 1 | 45 | 42 | – | 42 |
Depreciation of right of use | ||||||
assets | 34 | – | 34 | 32 | – | 32 |
(Gain)/loss on disposal of | ||||||
property, plant and equipment | 1 | – | 1 | – | – | – |
(Gain)/loss on fair value of | ||||||
contingent consideration | – | 13 | 13 | – | 6 | 6 |
Share-based payment expense | 13 | – | 13 | 13 | – | 13 |
Retirement benefits* | 7 | (8) | (1) | 5 | (7) | (2) |
Loss on disposal of financial | ||||||
asset | – | 9 | 9 | – | – | – |
Decrease/(increase) in | ||||||
inventories | (4) | – | (4) | (88) | (1) | (89) |
Decrease/(increase) in trade | ||||||
and other receivables | (107) | 26 | (81) | (10) | (53) | (63) |
Increase/(decrease) in trade | ||||||
and other payables | 71 | (21) | 50 | 10 | 39 | 49 |
Increase/(decrease) in | ||||||
provisions | 3 | (5) | (2) | (2) | (32) | (34) |
Cash generated from operations | 595 | (47) | 548 | 512 | (88) | 424 |
Interest paid | (57) | – | (57) | (73) | (2) | (75) |
Interest received | 26 | – | 26 | 36 | – | 36 |
Tax paid | (99) | – | (99) | (92) | – | (92) |
Net cash inflow from operating | ||||||
activities | 465 | (47) | 418 | 383 | (90) | 293 |
Year ended 31 July 2024 | Year ended 31 July 2023 | |||||
Headline | Non-headline | Total | Headline | Non-headline | Total | |
£m | £m | £m | £m | £m | £m | |
Net cash inflow from | ||||||
operating activities | 465 | (47) | 418 | 383 | (90) | 293 |
Include: | ||||||
Expenditure on capitalised | ||||||
development, other intangible | ||||||
assets and property, plant and | ||||||
equipment | (86) | – | (86) | (81) | – | (81) |
Repayment of lease liabilities | (39) | – | (39) | (36) | – | (36) |
Disposals of property, plant and | ||||||
equipment | – | – | – | 2 | – | 2 |
Funding of charitable foundation | – | 1 | 1 | |||
Movement in cash collateral | 4 | – | 4 | – | – | – |
Free cash-flow | 298 | 178 | ||||
Exclude: | ||||||
Repayment of lease liabilities | 39 | – | 39 | 36 | – | 36 |
Interest paid | 57 | – | 57 | 73 | – | 73 |
Interest received | (26) | – | (26) | (36) | – | (36) |
Tax paid | 99 | – | 99 | 92 | – | 92 |
Funding of charitable foundation | – | (1) | (1) | – | – | – |
Movement in cash collateral | (4) | – | (4) | – | – | – |
Operating cash-flow | 509 | (47) | 462 | 433 | (90) | 343 |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Headline operating profit | 526 | 501 |
Headline operating cash-flow | 509 | 433 |
Headline operating cash conversion | 97% | 86% |
Year ended | Year ended | |
31 July 2024 | 31 July 2023 | |
£m | £m | |
Free cash-flow | 298 | 178 |
Disposal of/(investment in) financial assets | 186 | (22) |
Disposal of businesses and discontinued operations | – | (7) |
Acquisition of businesses | (65) | – |
Funding of charitable foundation | (1) | – |
Other net cash-flows used in financing activities | ||
(note: repayment of lease liabilities is included in free cash-flow) | (230) | (909) |
Net increase/(decrease) in cash and cash equivalents | 188 | (760) |
APM term | Definition and purpose |
Capital employed | Capital employed is a non-statutory measure of invested resources. It |
comprises statutory net assets and is adjusted as follows: | |
– To add goodwill recognised directly in reserves in respect of subsidiaries | |
acquired before 1 August 1998; | |
– To eliminate the Group's investment in ICU Medical, Inc. equity and | |
deferred consideration contingent on the future share price performance | |
of ICU Medical, Inc; and | |
– To eliminate post-retirement benefit assets and liabilities and non- | |
headline litigation provisions related to John Crane, Inc. and Titeflex | |
Corporation, both net of deferred tax, and net debt. | |
It is used to monitor capital allocation within the Group. See below for a | |
reconciliation from net assets to capital employed. | |
Capital expenditure | Comprises additions to property, plant and equipment, capitalised |
development and other intangible assets, excluding assets acquired | |
through business combinations: see note 1 for an analysis of capital | |
expenditure. This measure quantifies the level of capital investment into | |
ongoing operations. |
APM term | Definition and purpose |
Divisional headline | DHOP comprises divisional earnings before central costs, finance |
operating profit (DHOP) | costs and taxation. DHOP is used to monitor divisional performance. A |
reconciliation of DHOP to operating profit is shown in note 1. | |
Free cash-flow | Free cash-flow is calculated by adjusting the net cash inflow from |
operating activities to include capital expenditure, the repayment of lease | |
liabilities, the proceeds from the disposal of property, plant and equipment | |
and the investment in financial assets relating to operating activities and | |
pensions financing outstanding at the balance sheet date. The measure | |
shows cash generated by the Group before discretionary expenditure on | |
acquisitions and returns to shareholders. A reconciliation of free cash-flow | |
is shown in note 28. | |
Gross debt | Gross debt is total borrowings (bank, bonds and lease liabilities). It is used |
to provide an indication of the Group's overall level of indebtedness. See | |
note 18 for an analysis of gross debt. | |
Headline | The Group has defined a 'headline' measure of performance that excludes |
material non-recurring items or items considered non-operational/ | |
trading in nature. Items excluded from headline are referred to as non- | |
headline items. This measure is used by the Group to measure and monitor | |
performance excluding material non-recurring items or items considered | |
non-operational. See note 3 for an analysis of non-headline items. | |
Headline EBITDA | EBITDA is a widely used profit measure, not defined by IFRS, being |
earnings before interest, taxation, depreciation and amortisation. A | |
reconciliation of headline operating profit to headline EBITDA is shown in | |
the note below. | |
Net debt | Net debt is total borrowings (bank, bonds and lease liabilities) less cash |
balances and derivatives used to manage the interest rate risk and currency | |
profile of the debt. This measure is used to provide an indication of the Group's | |
overall level of indebtedness and is widely used by investors and credit rating | |
agencies. See note 18 for an analysis of net cash/(debt). | |
Non-headline | The Group has defined a 'headline' measure of performance that excludes |
material non-recurring items or items considered non-operational/trading | |
in nature. Items excluded from headline are referred to as non-headline | |
items. This is used by the Group to measure and monitor material non- | |
recurring items or items considered non-operational. See note 3 for an | |
analysis of non-headline items. |
APM term | Definition and purpose |
Operating cash-flow | Comprises free cash-flow and excludes cash-flows relating to the |
repayment of lease liabilities, interest and taxation. The measure shows | |
how cash is generated from operations in the Group. A reconciliation of | |
operating cash-flow is shown in note 28. | |
Operating profit | Operating profit is earnings before finance costs and tax. A reconciliation of |
operating profit to profit before tax is shown on the income statement on page | |
135. This common measure is used by the Group to measure and monitor | |
performance. | |
Return on capital | Smiths ROCE is calculated over a rolling 12-month period and is the |
employed (ROCE) | percentage that headline operating profit represents of the monthly |
average capital employed on a rolling 12-month basis. This measure of | |
return on invested resources is used to monitor performance and capital | |
allocation within the Group. See below for Group ROCE and note 1 for | |
divisional headline operating profit and divisional capital employed. |
KPI term | Definition and purpose | |
Dividend cover – | Dividend cover is the ratio of headline earnings per share (see note 5) to | |
headline | dividend per share (see note 25). This commonly used measure indicates | |
the number of times the dividend in a financial year is covered by headline | ||
earnings. | ||
Earnings per share | EPS growth is the growth in headline basic EPS (see note 5), on a reported | |
(EPS) growth | basis. EPS growth is used to measure and monitor performance. | |
Free cash-flow (as a % | This measure is defined as free cash-flow divided by headline operating | |
of operating profit) | profit averaged over a three-year performance period. This cash | |
generation measure is used by the Group as a performance measure for | ||
remuneration purposes. | ||
Greenhouse gas (GHG) | GHG reduction is calculated as the percentage change in normalised | |
emissions reduction | Scope 1 & 2 GHG emissions. Normalised is calculated as tCO 2 e per £m of | |
revenue. This measure is used to monitor environmental performance. |
KPI term | Definition and purpose |
Gross vitality | Gross vitality is calculated as the percentage of revenue derived from new |
products and services launched in the last five years. This measure is used | |
to monitor the effectiveness of the Group's new product development and | |
commercialisation. | |
My Say engagement | The overall score in our My Say employee engagement survey. The |
biannual survey is undertaken Group-wide. This measure is used by the | |
score | |
Group to monitor employee engagement. | |
Operating cash | Comprises headline operating cash-flow, excluding restructuring costs, |
as a percentage of headline operating profit. This measure is used to show | |
conversion | |
the proportion of headline operating profit converted into cash-flow from | |
operations before investment, finance costs, non-headline items and | |
taxation. The calculation is shown in note 28. | |
Operating profit margin | Operating profit margin is calculated by dividing headline operating profit |
by revenue. This measure is used to monitor the Group’s ability to drive | |
profitable growth and control costs. | |
Organic growth | Organic growth adjusts the movement in headline performance to exclude |
the impact of foreign exchange and acquisitions. Organic growth is used by | |
the Group to aid comparability when monitoring performance. | |
Organic revenue | Organic revenue growth (remuneration) is compounded annualised growth |
in revenue after excluding the impact of foreign exchange and acquisitions. | |
growth (remuneration) | |
The measure used for remuneration differs from organic revenue growth | |
in that it is calculated on a compounded annualised basis. This measure | |
has historically been used by the Group for aligning remuneration with | |
business performance. | |
Percentage of senior | Percentage of senior leadership positions taken by females is calculated |
as the percentage of senior leadership roles (G14+ group) held by females. | |
leadership positions | |
This measure is used by the Group to monitor diversity performance. | |
taken by females | |
R&D cash costs as a % | This measure is defined as the cash cost of research and development |
activities (including capitalised R&D, R&D directly charged to the P&L and | |
of sales | |
customer-funded projects) as a percentage of revenue. Innovation is an | |
important driver of sustainable growth for the Group and this measures | |
our investment in research and development to drive innovation. | |
Recordable Incident | Recordable Incident Rate is calculated as the number of recordable |
incidents – where an incident requires medical attention beyond first aid | |
Rate (RIR) | |
– per 100 colleagues, per year across Smiths. This measure is used by the | |
Group to monitor health and safety performance. |
31 July 2024 | 31 July 2023 | ||
Notes | £m | £m | |
Net assets | 2,252 | 2,406 | |
Adjust for: | |||
Goodwill recognised directly in reserves | 478 | 478 | |
Retirement benefit assets and obligations | 8 | (29) | (89) |
Tax related to retirement benefit assets and obligations | 17 | 31 | |
John Crane, Inc. litigation provisions and related tax | 23 | 166 | 153 |
Titeflex Corporation litigation provisions and related tax | 23 | 27 | 32 |
Investment in ICU Medical, Inc. equity | 14 | (47) | (347) |
Deferred contingent consideration | 14 | – | (13) |
Net debt | 18 | 213 | 387 |
Capital employed | 3,077 | 3,038 |
Year ended | Year ended | ||
31 July 2024 | 31 July 2023 | ||
Notes | £m | £m | |
Headline operating profit for previous 12 months – continuing | |||
operations | 526 | 501 | |
Average capital employed – continuing operations (excluding | |||
investment in ICU Medical, Inc. equity) | 1 | 3,206 | 3,196 |
ROCE | 16.4% | 15.7% |
Year ended | Year ended | ||
31 July 2024 | 31 July 2023 | ||
Notes | £m | £m | |
Headline operating profit | 526 | 501 | |
Exclude: | |||
– depreciation of property, plant and equipment | 12 | 44 | 42 |
– depreciation of right of use assets | 13 | 34 | 32 |
– amortisation and impairment of development costs | 10 | 2 | 2 |
– amortisation of software, patents and intellectual property | 10 | 5 | 7 |
Headline EBITDA | 611 | 584 |
Year ended | Year ended | ||
31 July 2024 | 31 July 2023 | ||
Notes | £m | £m | |
Headline EBITDA | 611 | 584 | |
Net debt | 18 | 213 | 387 |
Ratio of net debt to headline EBITDA | 0.3 | 0.7 |
Company name | Company number |
EIS Group Plc | 61407 |
Flexibox International Limited | 394688 |
Flex-Tek Group Limited | 11545405 |
Graseby Limited | 894638 |
SI Properties Limited | 160881 |
SITI 1 Limited | 4257042 |
Smiths Detection Group Limited | 5138140 |
Smiths Detection Investments Limited | 5146644 |
Smiths Finance Limited | 7888063 |
Smiths Group Innovation Limited | 10953689 |
Smiths Interconnect Group Limited | 6641403 |
Smiths Pensions Limited | 2197444 |