Engineering firm Smiths unveils new chief as it hikes dividend and kicks off £100m share buyback

Smiths Group is set for a change up at the top level after chief executive Paul Keel announced his departure with immediate effect.

In a statement on the London Stock Exchange, the engineering firm said Keel planned to move to the US, to take on a new role heading up a public company.

Roland Carter, who has led subsidiary Smiths Detection since 2018, will replace him in the top job.

Carter helped set up Smiths Group’s first joint venture in China and has helped its threat detection arm build a record order book.

The announcement came as Smiths Group hiked its dividend and kicked off a £100m sharebuyback programme in its half-year results.

Shareholder dividends rose five per cent to 13.6p. Smiths group said it expects £50m of the new buyback scheme to be completed by the end of September.

The London-listed firm also reaffirmed its full-year guidance of four to six per cent organic revenue growth, driven by a record order book. “We expect growth to improve in the second half, supported by continued strength in end markets such as aerospace, security and energy, and gradually improving market conditions in US HVAC and semiconductors,” it added.

Operating profit increased 2.7 per cent to £192m, alongside revenue growth of 0.7 per cent. Shares in the firm are up over three per cent in the last six months.

Paul Keel, chief executive Officer, said: “It has been a tremendous honour to have led this wonderful company over the past three years, working alongside our many talented employees, and I am proud of everything we have achieved together.

“I’m excited for what lies ahead for Smiths and to see Roland continue to build on its successes and deliver further value for all Smiths Group’s stakeholders.”

Incoming boss Roland Carter, said: “It is a privilege to be appointed as the new Smiths CEO. The business has continued to deliver growth, improved execution and is now well placed for further strategic, financial and operational progress.

“I look forward to continuing to work with the Board, our customers, the leadership teams and all our employees, to deliver strong performance. It is an exciting time for Smiths.”