Smith & Nephew's major markets impacted by virus

This is in line with its previously published outlook for underlying revenue for the quarter to be substantially down year-on-year, as major markets were impacted by the Covid-19 pandemic.

The firm, which was founded in Hull in in 1856, said it is encouraged by improving performance as the quarter progressed, with underlying revenue declines of 47 per cent in April, -27 per cent in May, and around -12 per cent in June.

Performance correlated strongly with the easing of lockdown restrictions and resumption of elective surgeries.

Nevertheless, there continues to be significant uncertainty and geographical variation, Smith & Nephew said.

The impact of the Covid-19 pandemic has been most pronounced on its Orthopaedic Reconstruction, Sports Medicine and ENT businesses, driven by lower levels of elective surgery in the quarter. Its Advanced Wound Management and Trauma businesses have been more resilient.

Smith & Nephew said: "As a result of the trading performance across the first and second quarters, we continue to expect that the first half trading margin will be substantially down on the prior year."

Anne-Francoise Nesmes will join Smith & Nephew as chief financial officer and join the board as an executive director on July 27, 2020.