Halma, the safety, health, and environmental-technology company, has announced an increase in pretax profit due to revenue growth across all sectors and successful recent acquisitions. The company also confirmed that it is on track to meet market expectations for full-year profit.
For the six-month period ending on September 30, pretax profit reached £150.2 million ($186.5 million), surpassing last year’s figure of £145.5 million. This result aligns with the company’s forecasted figure of £146.8 million. Acquisitions played a significant role in driving a 5.2% growth in profit, compensating for the adverse impact of currency fluctuations and a slight decrease in return on sales (18.7% compared to 19.6%).
Marc Ronchetti, Chief Executive of Halma, expressed his satisfaction with the company’s performance. He highlighted the strong operating performance and robust balance sheet, despite significant investments made towards future growth. Ronchetti assured Dow Jones Newswires that Halma remains committed to delivering further growth in the second half of the year.
Overall, Halma’s latest financial report demonstrates its continued success and resilience in the market.
Halma Reports Strong Revenue Growth, Except in Asia-Pacific
Halma, a leading global company in the safety and environmental sectors, has announced its financial results for the year. The company reported revenue of GBP950.5 million, showing significant growth compared to GBP875.5 million the previous year. This growth was observed across all sectors and markets except for Asia-Pacific.
While Halma experienced solid performance in Australasia, its results in Asia-Pacific were impacted by weaker trends in China. China, which accounts for 5% of the company’s revenue, faced mixed performance. The Safety business performed well due to increased industrial activity after the lockdown. However, the Healthcare and Environmental and Analysis sectors, particularly the spectroscopy market and Life Sciences demand, showed weaker performance.
Despite the challenges in China, Chief Financial Officer Steve Gunning expressed a positive outlook: “China has been weak recently, but we’re in the country for the long-term. We have seen some green shoots of growth… and we see the country as an excellent growth opportunity.”
Additionally, Halma declared an interim dividend of 8.41 pence per share, representing an increase from 7.86 pence per share in the previous year.
Looking ahead, Halma expects to achieve strong organic constant-currency revenue growth for the fiscal year ending in March. The company also aims to meet market expectations for full-year adjusted pretax profit, which is estimated at GBP389.0 million according to consensus data. In fiscal 2023, Halma reported an adjusted pretax profit of GBP361.3 million.
Furthermore, Halma stated that it possesses a robust pipeline of potential acquisitions, indicating its commitment to future expansion and development.
With its impressive revenue growth and optimistic projections, Halma continues to position itself as a leading player in its industry.
