Smiths Group elevates Fagge to CFO, raises FY25 growth targets

Investing.com -- Smiths Group (OTC:SMGZY ) said in a stock exchange filing on Tuesday that Clare Scherrer will retire as Chief Financial Officer, effective January 31.

Scherrer, who has been in the role for a relatively brief period, will support the company through the interim results for the first half of FY25, completing her transition by April 30. 

The company has appointed Julian Fagge, currently the president of Smiths Interconnect, as her successor. Fagge will assume the CFO position on February 1, 2025.

The change in CFO coincides with an upgraded guidance for FY25, as Smiths Group adjusts its organic constant-currency sales growth target upward to 6%-8%, an improvement from the previous 5%-7%. 

This revision reflects strong performances across the board, particularly in Smiths Detection and Smiths Interconnect, where higher-than-anticipated second-quarter results have bolstered confidence. 

Analysts at Jefferies view this upgrade positively, emphasizing its importance amidst a broader industrial landscape that is grappling with mixed market conditions.

Despite the raised revenue targets, EBITA margin guidance remains unchanged at an increase of 40-60 basis points year-over-year. 

The continued positive momentum of Interconnect, despite recent cyclical challenges, has led to a slight margin uplift, said analysts at RBC Capital Markets in a note. 

However, the absence of a margin upgrade is not unexpected, given the underperformance of the more dilutive divisions, the brokerage added. 

Source: Investing.com