Q1 revenue growth encourages Smith & Nephew

SMITH & Nephew, Europe’s largest maker of artificial hips and knees, has said an increase in Q1 revenue had given rise to further optimism for its 2014 outlook.

The company, whose UK orthopaedics operation is based at Warwick Technology Park, posted Q1 revenues of $1,073m, up 1% on the same period last year. There was a 1% currency headwind and a net zero effect from acquisitions and disposals.
 
In established markets revenue was down 1%. Within this, US revenue was down 2%, which it said reflected the effect of US surgical procedures being pulled forward into the final months of 2013. Revenue growth in other established markets was 1%.
 
The emerging and international markets continued to deliver good revenue growth, up 9% in the quarter. China again performed strongly, at over 30% revenue growth, and its 2013 Turkish and Indian acquisitions began to deliver benefits. Performance in Brazil was disrupted as its moves from a distributor-led to a direct-sales business model.

Olivier Bohuon, CEO of Smith & Nephew, said: “Our underlying revenue growth was 1% in the first quarter. We remain confident in our 2014 outlook as we roll-out our strong pipeline of new products, benefit from recent investments in marketing and the salesforce and see an increasing contribution from acquisitions.”
 
A review of the business is expected to see the implementation of measures designed to save at least $120m.

New Company Secretary for GKN

REDDITCH-based engineering group GKN has appointed Jos Sclater as its new Company Secretary. The appointment takes effect from June 21, 2014.

Sclater was appointed General Counsel in September 2011 and will assume the joint role of Company Secretary & General Counsel.

He replaces Judith Felton, who retires following five years as Company Secretary and 14 years as Deputy Company Secretary.

GKN said in a statement: “The company would like to thank Judith for the outstanding contribution she has made to the group during her 34 years’ service.”

AGA Rangemaster mounts search for new non-executive director

OVEN and boiler manufacturer AGA Rangemaster is mounting a search for a successor to Paul Dermody.

Dermody, a non-executive director of the business, has stepped down from the board following a 10-year tenure which saw him chair the company’s Audit and Risk Committee from 2005 to 2013 and become Senior Independent Director from October 2010.

AGA chairman John Coleman said: “The board and management wish to thank Paul for his valuable contributions to the group and wise counsel over the last 10 years. We have very much enjoyed working with Paul and wish him every success for the future.”

The board is now searching for a further non-executive director/senior independent director and it said an announcement regarding this appointment would be made in due course.