Smith & Nephew is a prime example of a business that always seems to be battling headwinds, is never quite firing on all four cylinders, but over the long term still makes very respectable progress. Product setbacks, adverse currency moves — there is always a problem to give investors a small twinge of anxiety.
Even so, as the chart demonstrates, the medical products group has over ten years produced a 182 per cent capital gain — 12 times greater than the average for the FTSE 100.
Completion yesterday of the sale of its gynaecological division to its American rival Medtronics for $350 million is a good moment to take stock, especially as S&N has also fired the starting pistol on a $300 million share buyback.