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FTSE 100 engineering firm Smiths (LON:SMIN) saw its share price rise by 5.78% to 1,391p (as of 10:45 GMT) after announcing that it would split off its medical arm to focus on industrial technology. Chief executive Andy Reynolds Smith said: “This is an exciting development for Smiths and Smiths Medical. This planned separation will strengthen both Smiths and Smiths Medical as they each focus on accelerating the execution of their plans and maximising the opportunities in their respective markets.
Following our focus on operational improvements and increased investment, we believe it is now time to prepare the separation of Smiths Medical from the rest of the Group. Smiths Medical is well positioned to capitalise on its leadership positions and the investments made in the business“.
Smiths also revealed that revenues for the three months to 31st October declined by 1%. The company added that it was on track to meet expectations, and that the drop in revenues was in part caused by a switch to the IFRS accounting standards.