Smith & Nephew investors encouraged

Shares in medical device maker Smith & Nephew lifted 5% today after it posted a hike in profits and revenues.

The group, which makes joint implants, wound treatments and surgical instruments, said revenues rose 6% to $686m (€537.5m) in the three months to July 1 with half-year earnings coming in at $1.33bn (€1bn).

Pre-tax profits lifted to $267m (€209.3m) from $252m (€197.5m) over the six-month period.

Chief executive Sir Christopher O’Donnell said: “Smith & Nephew has seen a progressive improvement in the second quarter despite market conditions remaining challenging in the US and greater than expected healthcare cost pressures across Europe.”

He added: “We remain confident in our growth prospects and reconfirm our earnings guidance for the full year.”

In May, S&N won approval in the United States for its new hip implant, the Birmingham Hip Resurfacing System, an alternative to the traditional hip replacement. Birmingham is the only approved hip-resurfacing product available in the US. The first surgery took place in June.

Shares gained 23.75p to 455.75p today.

S&N was founded in 1856 and operates in 33 countries where it has over 8,000 employees.