25 March 2008 | Jake Kanter
Technology company Smiths Group is to undertake a structural review in a bid to cut costs and increase efficiency.
Announcing interim figures, Smiths revealed plans including a project to increase procurement collaboration across its three divisions. Currently the medical, engineering and security divisions are run independently. The programme is expected to last two years.
The group confirmed its medical division continues to suffer supply chain problems (Web news, 18 February) due to manufacturing relocations and the implementation of an Enterprise Resource Planning system. It said these factors combined to "adversely affect relationships with major customers".
In the report Philip Bowman, chief executive, said: "In medical, we have initiated a detailed performance improvement programme and its delivery is a key priority."
Smiths reported that pre-tax profits had risen 21 per cent to £165.4 million, but were offset by the weak performance of the medical division.