Smiths Groups sees profits rise 25% - graduate jobs

Graduates looking for technology jobs in the security industry will be heartened by the news that Smiths Group has posted a very healthy 25% rise in profits.

The company, which produces airport scanners as well as medical devices, made the announcement even though there were delays in its detection business as governments reviewed their security and spending needs.

Pre-tax profits increased to £224 million in the half-year to January 29 at the FTSE 100 Index conglomerate, which employs 23,000 people across five divisions. Revenue rose 7% to £1.37 billion.

In the six months, sales dropped 9% at the Detection division, which makes sensors used in finding drugs, weapons and explosives. Operating profits declined by 11% after there were delays to some orders in the military and ports sectors.

As well as the impact of government spending reviews, Smiths said last October's incident when two ink cartridge bombs posted in Yemen were intercepted in the UK and Dubai led to delays as governments considered their response.

The timing of some large military programmes, including chemical warfare sensors for US military vehicles and soldiers, also impacted sales.

Despite the slow start to the financial year, Smiths said the division's non-military order book was ahead of last year.

It added: "Smiths Detection remains well placed to benefit from future growth opportunities, although government finances remain under pressure in many markets which may affect the timing and profile of orders."

The Medical division, which attracted takeover interest earlier this year, saw sales drop 2% but increased operating profits by 5% to £85 million.