Hull operation helps Smith & Nephew profits grow

MEDICAL technology business Smith & Nephew saw pre-tax profts rise to £275m in the first half of the year as revenues at its Hull-based advanced wound management division increased by 8%.

The company said that while its customers in the health provision sector were facing short term financial pressures underlying factors, including ageing populations and emerging markets, put the firm in a strong position.

Today’s half-yearly results for six months to July showed company revenues were up by £104m representing underlying growth of 6% compared to the same period last year.

Trading profit for the year to date was up 17% on an underlying basis to £300m, with trading margin improving 24.4% in part, the company said, “to another substantial margin improvement in our Advanced Wound Management business”.

Smith & Nephew chief executive David Illingworth said: “Our endoscopy and advanced wound management businesses continue to show strong underlying growth.

“Within orthopaedics, our US trauma and European orthopaedic businesses are showing clear signs of progress.

“Our customers are facing short-term budgetary pressures and challenges and our strategy is to be ‘part of the solution’ to these issues by providing products which deliver clinical benefits to patients and cost benefits to healthcare providers.

“The long-term industry growth drivers – including demographics, emerging markets and patients’ desire to return to an active life – remain intact.”

Adjusted attributable profit was £201m and attributable profit was £186m. Trading cash flow was £246m compared with £166m a year ago.