Smiths strengthens potential

Robust core markets and a series of acquisitions designed to encourage greater R& D helped

establish a solid financial platform for 2006.

The UK-based global technology company saw its four divisions — Aerospace, Detection, Medical and Speciality Engineering — all perform well. This boosted group sales by 19 per cent to £1.6 billion, and saw an increase of 18 per cent in headline pre-tax profits to £183 million for the first half of its financial year.

Smiths' acquisition of technology-led businesses that strengthen its existing capabilities continued. In September — to complement its Interconnect division — the group paid £19m for US company Millitech, which specialises in millimetre wave technologies for communications systems.

Two months later it bought Livewave for a further £9 million, enhancing its ability to network the sensors used in wide-area security systems. And last month it completed the £15 million acquisition of Lorch Microwave — a microwave filter specialist that also fits into Smiths' Interconnect division.