Halma plc
Trading update
Halma, the global group of life-saving
technology companies focused on growing a safer, cleaner and
healthier future for everyone, every day, today releases its
scheduled trading update ahead of its half year end on 30 September
2024.
Further
progress in the first half; unchanged guidance for the full
year
We have made further progress in the first half
of this financial year, in trading conditions which remain varied
across our end markets. This reflects the benefits we derive from
our Sustainable Growth Model, including the ability of our
companies to respond rapidly to changing market conditions, the
talent and entrepreneurialism of our people, and the diversity of
our portfolio.
Our guidance for the full year to March 2025,
for good organic constant currency1 revenue growth
and an Adjusted EBIT margin2 of around 21%, remains
unchanged from that given in our full year 2024 results
announcement in June3.
In the first half of the year, we expect to
deliver good organic constant currency1 revenue
growth, supported by Group order intake in the year to date which
is ahead of both revenue and the comparable period last year. We
expect the Group's Adjusted EBIT margin2 to be
modestly higher than in the first half of the prior year,
consistent with our guidance for the year as a whole. We also
expect to deliver a strong cash performance, enabling substantial
investments, both organically and in acquisitions, to further
expand our opportunities for growth over the medium to longer
term.
The appreciation of Sterling is having a
negative currency translation effect on the Group's results; we
expect this effect to continue in the second half of the
year4.
Further M&A
progress; healthy acquisition pipeline
We made four acquisitions in the first half of
this financial year, all in the Safety sector, for a maximum total
consideration of approximately £85m. We continue to have a
healthy acquisition pipeline across all three sectors.
The acquisitions made in the first half of the
year were:
· MK
Test Systems Limited, a UK-based company which designs and
manufactures safety-critical electrical testing technology, for a
consideration of £44m in April. MK Test is a standalone company
within the Safety sector;
·
G.F.E. - Global Fire Equipment, S.A., a Portuguese designer
and manufacturer of fire detection and alarm systems, as a bolt-on
for the fire safety company, Ampac, in June. The consideration for
GFE was €42.5m (approximately £36m);
·
Advantronic, a Spanish manufacturer of control panels and
distributor of fire alarm systems, which has strong expertise in
wireless technology, as a bolt-on for the fire safety company,
Orama, in July. The consideration for Advantronic was €2.3m
(approximately £2m);
·
RemLive, a UK-based provider of electrical safety products,
as a bolt-on for the worker safety company Fortress Safety, in
July. The consideration for RemLive was £3.5m.
We continue to actively manage our portfolio of
global businesses to ensure that it delivers strong growth and
returns and is aligned with our purpose of growing a safer,
cleaner, healthier future for everyone, every day. As reported in
our Full Year 2024 results, we made one small disposal in the
period, of Hydreka SAS, for approximately £7m, net of disposal
costs.
Half Year
Results
The results for the half year ending 30
September 2024 will be released on Thursday 21 November
2024.
For further information, please
contact:
Halma
plc
Marc Ronchetti, Group Chief
Executive
+44 (0)1494 721 111
Steve Gunning, Chief Financial
Officer
Charles King, Head of Investor
Relations
+44 (0) 7776 685 948
Clayton Hirst, Director of Corporate
Affairs
+44 (0) 7384 796 013
MHP
Oliver Hughes / Rachel Farrington / Ollie
Hoare +44
(0)20 3128 8100 / +44 (0)7817 458 804 /
halma@mhpgroup.com
Notes:
1. Organic constant currency measures exclude
the effect of movements in foreign exchange rates on the
translation of revenue and profit into Sterling, as well as
acquisitions in the year following completion and
disposals.
2. Adjusted EBIT is earnings before interest and
tax, and before amortisation and impairment of acquired intangible
assets, acquisition items, and profit or loss on disposal of
businesses. Adjusted EBIT margin is defined as Adjusted EBIT
expressed as a percentage of revenue.
3. The following guidance was given in our Full
Year 2024 results announcement in June 2024: "We expect to deliver
good organic constant currency1 revenue growth in
the year ahead, and an Adjusted EBIT margin2 of
around 21%, in the middle of our target range."
4. Sterling has strengthened in the year
relative to many currencies, including the US Dollar and Euro.
If current exchange rates continue throughout the rest of the
current financial year, the currency translation impact on the
Group's results is expected to be negative. Based on exchange rates
of Sterling/US Dollar 1:1.34 and Sterling/Euro 1:1.20, we would
expect approximately a £56m negative revenue effect and
approximately a £14m negative profit effect in the 2025
financial year, compared to the 2024 financial year, of which
approximately 30% would occur in the first half of the financial
year.
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 its website
at 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 market areas where it operates:
·
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.
Halma 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
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