The new boss of Smith & Nephew oversaw an upbeat first set of results under his leadership, but admitted that the company needs to focus its efforts on growth.
The FTSE 100 company, which specialises in artificial hips and knees, reported a 2pc rise in underlying revenues to £1.3bn and a 4pc rise in reported revenues for the first half at £2.4bn, but an 11pc decline in pre-tax profit to £341m.
Chief executive Namal Nawana said that was largely due to restructuring costs, but added that those costs were lower than expected and that the annualised benefits of the restructuring were also better than expected.
Since joining, Mr Nawana said he has observed that Smith & Nephew has “great medical technologies” and “that’s a good starting line but why aren’t those technologies achieving growth and what are the opportunities to have them accelerate?”
Smith & Nephew said its underlying revenue growth expectation range for the year is unchanged at 2pc to 3pc and it expects its trading profit margin to be flat or above last year’s level of 22pc.
Mr Nawana said that he was focused on “energising and organising” the company to grow at a faster rate. He pointed to issues in the past with how the business was organised and the level of focus of the business, and has been benchmarking it against rivals.
“In our portfolio, I think we actually do have some of the very best products in certain of the categories, but they’re just not growing like the best products in the categories, so, to me, that means that our organisation needs to have greater focus on the products that can win.”
He added that the company’s robotics technology is “something we could really build on going forward”.
Image Credit: Smith & Nephew