We see big opportunities to improve margins through self-help and restructuring. Last year we launched a major restructuring programme to sharpen customer focus and cut costs. To date, it has delivered savings of £17m.

We are upgrading our business systems to support faster, data-driven decision-making. This is helping us leverage our scale more effectively and negotiate better terms with our suppliers.

Our global footprint enables us to rationalise operations and relocate manufacturing to low-cost countries such as China, Mexico, Costa Rica, Tunisia and India.

Research and Development (R&D) is the lifeblood of new products. Successful product launches drive superior sales growth, command higher margins, and confer competitive advantage.

We are focusing our R&D investment more tightly on growth areas that will deliver greater returns. Recent successful product launches include wireless blood pressure monitors in Smiths Medical, body image scanners in Smiths Detection and mobile network testers in Smiths Interconnect.

In parallel, we are investing in expanding our geographic footprint through new and improved facilities such as the new service centres for John Crane in the Middle East and Asia.

A key objective for the Group is to optimise the allocation of capital between the different businesses. We are reshaping the portfolio to drive higher returns and to expand our addressable markets. In two years we have made 10 acquisitions that have added complementary technologies, leveraged our infrastructure and extended our geographic reach.

At the same time, we have rationalised the portfolio through divestments and by reviewing profitability of stock keeping units in businesses such as Smiths Medical. This reduces complexity and removes low-margin, low-volume parts of the business to boost margins and returns in the medium term.

Improving cash generation through better working capital management is another primary focus. During the year, we successfully lowered inventories and reduced debtors to improve operating cash conversion from 72% to 104% and free cash-flow from £91m to £256m.

At the same time, we are optimising the Group's capital structure and securing its long-term financing. In the year we raised $675m of long term debt capital through a private placement and US bond offer. This extended the maturity of the Group's debt profile and reduced our dependency on the banking market.

Every one of us in Smiths has a duty to promote a culture of responsibility and accountability.

During the year we rolled-out an enhanced Code of Business Ethics, supported by an extensive training programme across all the divisions.

The year was our safest yet, further improving on the positive trend already established in recent years.

We also made good progress towards meeting our challenging three-year environmental goals for reducing water consumption and waste generation and capping greenhouse gas emissions.