Halma plc
Trading update
14 March 2024
Unchanged guidance for full
year
Halma, the global group of
life-saving technology companies focused on growing a safer,
cleaner, healthier future for everyone, every day, today releases
its scheduled trading update, ahead of its financial year end on 31
March 2024.
Further progress in the second half
We have made further progress in the
second half of this financial year to date, delivering strong
growth in varied market conditions, while continuing to make
substantial strategic investments to enhance our future growth
opportunities.
Our performance in the period
reflects the benefits of the diversity and global reach of our
portfolio, and the agility of our operating model which enables our
companies to respond rapidly to opportunities and challenges in
their individual markets. It also continues to be supported by the
relevance of our purpose, the strength of our Sustainable Growth
Model and our financial model, and the long-term drivers
underpinning growth in our markets.
Unchanged guidance for full year; expect Adjusted profit in
line with consensus
Based on this progress to date and
current forecasts, our guidance for the year ending 31 March 2024
is unchanged from that given in our Half Year results announcement
of 16 November 2023. The Board continues to expect Adjusted profit
before tax for this period to be in line with analyst consensus
expectations (see notes 1 and 2).
Strong constant currency revenue growth
We have delivered strong constant
currency revenue growth in the year to date, comprising good
momentum on an organic constant currency basis and a continued
healthy contribution from recent acquisitions (net of
disposals).
By sector, Environmental &
Analysis has delivered strong revenue growth in the year to date,
driven primarily by exceptionally strong growth in the Photonics
segment within the Optical Analysis subsector. There was good
revenue growth in the Safety sector, reflecting strength in the
Fire Safety and Industrial Safety subsectors. Healthcare sector
performance reflected weak second half trends in the Life Sciences
and Healthcare Assessment & Analytics subsectors, partly offset
by strong growth in Therapeutic Solutions.
By region, the USA and Mainland
Europe, the Group's two largest regions which together account for
nearly two-thirds of Group revenue, have grown strongly in the year
to date. Growth in the United Kingdom has been modest, while Asia
Pacific's revenue, which was lower in the first half, saw some
improvement in the second half. Revenue growth in the remaining
smaller regions has been good in aggregate.
The Group's organic growth has been
supported by order intake which remains ahead of the comparable
period last year and is close to revenue in the year to
date.
As expected, the appreciation of
Sterling has continued to have a negative currency translation
effect on the Group's results (see note 3).
Substantial strategic investments supported by a strong
financial position
We continue to make substantial
strategic investments, both to enhance the Group's future organic
growth opportunities, and to expand its market reach through
acquisitions.
Eight acquisitions have been
completed in the year to date across the Group's three sectors,
with £299m invested (on a maximum total consideration basis - see
note 4). We continue to have a healthy acquisition pipeline across
all three sectors.
The strength of our cash generation
supports these investments while enabling us to maintain a strong
financial position with substantial capacity for future investment.
Cash conversion for the full year is expected to be ahead of our
Key Performance Indicator (KPI) of 90%.
Full Year Results
The Group's results for the year
ending 31 March 2024 will be released on 13 June 2024.
For further information, please
contact:
Halma plc
Marc Ronchetti, Group Chief Executive
+44 (0)1494
721111
Steve Gunning, Group Chief Financial
Officer
Charles King, Head of Investor
Relations
+44 (0) 7776
685948
Clayton Hirst, Director of Corporate
Affairs
+44 (0) 7384
796013
MHP
Oliver Hughes / Rachel Farrington
+44 (0)20 3128 8100
/ Ollie Hoare
A copy of this announcement, together with
other information about Halma, is available at
www.halma.com.
Notes:
1.
Adjusted profit before tax is before amortisation and
impairment of acquired intangible assets, acquisition items,
restructuring costs and profit or loss on disposal of
businesses.
2. The
Board believes current market forecasts for Adjusted profit before
tax for the year ending 31 March 2024 to be in the range of £376.0m
to £393.5m, with a consensus of £388.5m.
3.
Sterling has strengthened in the financial year relative to
many currencies, including the US Dollar and Euro and the currency
translation impact on the Group's results for the financial year
ending 31 March 2024 is expected to be negative. Based on the
forecast mix of currency denominated revenue and profit for the
2024 financial year, a 1% movement in the US Dollar changes full
year revenue by £9.7m and profit by £2.1m. Similarly, a 1% movement
in the Euro changes full year revenue by £2.6m and profit by
£0.5m.
4. Of the
eight acquisitions made in the year to date, five (Sewertronics Sp.
Z o.o., Lazer Safe Pty. Ltd., Visual Imaging Resources LLC, Alpha
Instrumatics Group and AprioMed AB) were reported in the Group's
half year results announcement. Since that time, we have made three
further acquisitions (considerations given are all on a cash- and
debt-free basis):
·
The TeDan group of companies, a global leader in innovative surgical access systems, for a
maximum total consideration of US$100m (approximately
£81m);
·
Ziegler Electronic Devices GmbH, a designer and
manufacturer of ballasts and sensors for UV sterilisation (for an
undisclosed consideration);
·
Rovers Medical Devices B.V., a designer and
manufacturer of sample collection devices used in the prevention
and diagnostics of cervical cancer, for a maximum total
consideration of €91m (approximately £78m).
5. This
Trading Update is based upon unaudited management accounts
information. Forward-looking statements have been made by the
Directors in good faith using information available up until the
date that they approved this statement. Forward-looking statements
should be regarded with caution because of the inherent
uncertainties in economic trends and business risks.
6. A copy
of this announcement, together with other information about Halma,
may be viewed on our website www.halma.com
About Halma
Halma is a global group of
life-saving technology companies, focused on growing a safer,
cleaner, healthier future for everyone, every day. Its purpose
defines the three broad markets it operates in:
·
Safety - Protecting people's safety and the environment as
populations grow, and enhancing worker safety.
·
Environment - Addressing the impacts of climate change,
pollution and waste, protecting life-critical resources and
supporting scientific research.
·
Health - Meeting the increasing demand for better healthcare
as chronic illness rises, driven by growing and ageing populations
and lifestyle changes.
It employs over 8,000 people in more
than 20 countries, with major operations in the UK, Mainland
Europe, the USA and Asia Pacific. Halma is listed on
the London Stock Exchange (LON: HLMA) and is a constituent of the
FTSE 100 index.
Halma has been named as one of
Britain's Most Admired Companies for the past six years.
For more
information www.halma.com
===================