Medtech Smith & Nephew in good health despite full year profits fall

MEDICAL technology group Smith & Nephew has seen growth across the board despite a decline in profits.

The group, whose UK orthopaedics operation is based at Warwick Technology Park, has reported revenues of £3.18bn ($4.63bn) for the year to 31 December 2015, a slight improvement on last year’s figure of £3.17bn ($4.61bn).

Pre-tax profits were down from £489m ($714m) to £383m ($559m).

The business’ largest market in the US saw 5% growth.

Smith & Nephew attributed the decrease to restructuring and acquisition costs as it attempts to integrate newly acquired businesses such as Blue Belt Technologies, which was announced in October 2015.

The news comes after the announcement that chief executive Olivier Bohuon has been diagnosed with cancer.

With the board behind him, he intends to remain in post for the duration of treatment.

Under Bohuon’s stewardship, Smith & Nephew has undertaken several acquisitions, most recently that of Blue Belt Technologies, a company involved in robotics-assisted orthopaedic surgery.

The business also acquired a Colombian distributor of its orthopaedic products, and another company from Russia during the year. These acquisitions totalled £46m.

Bohuon said: “For the full year we delivered higher underlying revenue growth, trading profit margin and adjusted earnings year-on-year. Our strategy is producing an improved performance through focused innovation, better commercial execution and greater efficiency.

“We expect to deliver continued good underlying revenue growth in 2016 as we benefit from our investments in existing businesses, acquisitions and pioneering technologies.”