By Nina Kienle
Shares in Smiths Group jumped on Wednesday after the engineering group resumed and increased its share buyback program.
In morning trading, shares trade 13% higher at 1,726.0 pence, down 2.1% over year to date.
Smiths Group said it resumed its share buyback by initiating the second tranche of its previously announced program and increasing the total amount to 150 million pounds ($191.2 million) from 100 million pounds.
This is a results of the strong balance sheet, cashflow dynamics and considered approach to capital allocation, the group said.
The first tranche of 50 million pounds was completed in September, and the second one, now totaling 100 million pounds, is expected to be completed by the end of its financial year, it said.
The decision to resume the buyback follows the decision not to pursue a medium-sized acquisition it was closely evaluating in September and October, it said.
The additional buyback demonstrates a track record of returning excess capital, having returned more than 1.2 billion pounds in the last three years through buyback and dividend, it said.
For the first quarter ended Nov. 1, Smiths Group posted organic revenue growth of 15.8%, up from 3.5% of the same period the prior year.
Write to Nina Kienle at nina.kienle@wsj.com
(END) Dow Jones Newswires
November 13, 2024 03:43 ET (08:43 GMT)
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