Profits drop £32m at Smith & Nephew

Medical technology firm Smith & Nephew has seen pre-tax profits drop £32m in the first half of 2018, due to restructuring costs.

Publishing is half-year results to June 30, the firm, which has its advanced wound care management division in Hull, said its pre-tax revenues for the period stood at £260m, down from £292m for the same period last year. 

Revenues were reported as £1.8bn, up from £1.7bn for the first half of 2017. It said its full year expectations remain unchanged.

The medical firm said that restructuring costs, which included £44m for the launch of the group’s Accelerating Performance and Execution (APEX) programme, was the reason for the drop in profits. Updating the markets on the APEX programme, first announced in February, Smith & Nephew said: “APEX programme on track, with actions undertaken in H1 which will deliver more than $50 million [£38m] of annualised benefits.”

Namal Nawana, chief executive, joined the firm in May and reported a better performance in Q2, after the firm had announced a weaker Q1 earlier in the year. He said: “We delivered 4% reported and 2% underlying growth in the quarter. We reconfirm our full year guidance.

“In my first few weeks at Smith & Nephew I have reviewed our businesses and operations and validated that we have an excellent product portfolio with numerous best-in-class medical technologies. We are now focused on energising and organising the business to accelerate growth.”

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