24 March 2010 | Jake Kanter
UK technology company Smiths Group is on course to meet its 2010 procurement savings goal.
The FTSE-100 firm is targeting purchasing savings of £11 million for its 2009-10 financial year to the end of July. The group’s interim results, announced today, showed it had reached over half the target figure by making cuts of £6 million in the six months ending 30 January 2010.
Smiths said efficiency efforts had improved profit margins across its five divisions. “The group’s performance has benefited from our swift action in cutting costs to preserve margins and increase cash generation,” said chief executive Philip Bowman.
Operating profits were £207 million for the six months which ended 30 January, a 12 per cent increase on the same period last year.
Purchasing has been working to reduce vendor numbers, encourage greater collaboration between Smiths’ divisions and improve category management.
Head of procurement Maggie Jones told SM last year the department had a “wealth of opportunity” to make an impact during the economic downturn.