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UK aerospace-to-medical equipment maker Smiths has hinted it could be pulling out of Hythe according to The Press Association.

In March 2006 when the company announced it was moving over 500 local manufacturing jobs to Mexico, they reaffirmed the role of Hythe as the headquarters of its centre of excellence for airway management and reproductive health products.

But Smiths has now signalled that it may become the latest company to join the tax exodus from the UK.

The firm said that while there was "no current intention" to move, it was "closely monitoring" possible changes to UK tax laws due to the high profits it makes overseas following last year's sale of Smiths Aerospace.

The company's warning came as it unveiled a corporate restructuring which will see around 65 jobs cut across the group, of which 40 will go in the UK.

Chief executive Philip Bowman said: "Building the business will be more effectively achieved through a focused divisional structure.

"The corporate centre will therefore be dedicated to a small number of core functions where it can add real value to our portfolio of businesses."

The company has 22,000 staff worldwide, with 2,900 UK staff at sites including Watford in Hertfordshire, Slough, Hythe in Kent, Glasgow and Dundee.