Smiths Group Reaffirms Commitment to London Stock Exchange Listing Amidst Investor Pressure
In a move seen as a boost for the City of London, engineering conglomerate Smiths Group has signaled its intention to maintain its listing on the London Stock Exchange (LSE), at least for the foreseeable future. This decision comes amidst growing concerns about companies departing the UK market.
Investor Urges New York Listing
The FTSE 100 listed Smiths Group, a prominent manufacturer of airport security technology including baggage-screening equipment and explosive detection systems, has faced calls from activist investor Engine Capital to consider relocating its primary listing to the New York Stock Exchange. Engine Capital, a US-based firm, believes a New York listing could enhance shareholder value.
Chief Executive Officer Downplays Imminent Move
However, Roland Carter, Chief Executive Officer of Smiths Group, has tempered speculation regarding an imminent transatlantic shift. While not completely dismissing the possibility of a future move, Carter emphasized the company’s long-standing history on the LSE.
“We never say never,” Carter stated, acknowledging the external suggestions. “We’ve been listed for over 110 years on the London Stock Exchange. Our current plan is to remain a FTSE 100 constituent for now,” he affirmed, providing reassurance to London market proponents.
London Stock Exchange Grapples with Listing Deficit
The LSE is currently navigating challenges related to a reduction in company listings. Several prominent firms have delisted, either through acquisitions or by switching to overseas exchanges. Online betting and gaming giant Flutter, along with building materials supplier CRH, have recently transitioned their primary listings to New York.
Pressure on Other Major UK Listed Companies
Furthermore, mining corporation Rio Tinto is reportedly resisting investor pressure to transfer its listing to the Australian Securities Exchange in Sydney. Meanwhile, commodities and trading powerhouse Glencore, and energy major Shell are also understood to be evaluating their listing options, adding to the uncertainty surrounding the future composition of the LSE.
Smiths Group Announces Profit Increase
In a separate financial announcement, Smiths Group reported a positive financial performance. The company disclosed a profit of £269 million for the half-year period concluding in January, an increase from £246 million recorded during the corresponding period last year. This positive financial update provides a solid backdrop to the company’s commitment to its London listing.