Smith & Nephew 2017 full year results
· Underlying revenue up 3% and trading profit margin up 20bps to 22.0%, in line with guidance
o Reported revenue growth of 2% is after -1% reduction from the disposal of Gynaecology business in 2016 and no FX impact
o Operating profit margin of 19.6%, up 240bps from more favourable non-trading items
· Performance driven by market-beating growth from Knee Implants and double-digit growth in Emerging Markets, offset by softness in AET and European Advanced Wound Care
· Trading cash flow of $940 million, up from $765 million in 2016, with higher trading profit to cash conversion ratio of 90%
· Tax rate on trading results reduced by 670bps to 17.1%, including benefit from one-off US tax settlement (12.7% reported tax rate)
· EPSA up 14% to 94.5¢ reflecting improved trading and tax rate (EPS flat at 87.8¢)
· ROIC improved 280bps to 14.3%
· Full year dividend up 14% to 35.0¢ per share
