| Halma plcHALF YEAR RESULTS 2022/23Record first half results and continued dividend growth Halma, the global group of life-saving technology companies focused on growing a safer, cleaner, healthier future for everyone, every day, today announces results for the 6 months to 30 September 2022. |
Highlights |
| Change | 2022 | 2021 | |||||
| Revenue | +19% | £875.5m | £737.2m | ||||
| Adjusted1 Profit before Taxation | +11% | £171.7m | £154.9m | ||||
| Adjusted Earnings per Share2 | +12% | 35.65p | 31.96p | ||||
| Statutory Profit before taxation | (13)% | £145.5m | £167.5m | ||||
| Statutory Earnings per Share | (15)% | 30.39p | 35.83p | ||||
| Interim Dividend per Share3 | +7% | 7.86p | 7.35p | ||||
| Return on Sales4 | 19.6% | 21.0% | |||||
| Return on Total Invested Capital5 | 13.8% | 14.9% | |||||
| Net Debt | £499.6m | £274.8m9 | |||||
| Strong growth and returns; increased investment; on track for full year · Record revenue and Adjusted1 Profit: revenue up 19%; Adjusted1 Profit before Taxation up 11% compared to H1 2021/22; further sequential growth from second half of 2021/22. · Statutory Profit before Taxation down 13% principally due to the gain on disposal of £34.0m in the first half of last year; up 9% excluding this gain. · Revenue and Adjusted1 Profit growth on an organic constant currency6 basis: up by 9% and 2% respectively. · Growth in all sectors and regions: revenue growth in all sectors and regions; Adjusted1 Profit growth in all sectors (including on an organic constant currency6 basis). · Strong Return on Sales4 of 19.6% (2021/22: 21.0%), above pre-COVID levels8 and reflecting the planned normalisation of overhead costs . · Increased strategic investment: R&D investment £50m, up 20% (5.7% of revenue). Three acquisitions this financial year (two in H1); consideration10 of £238m. · Cash conversion11 63%, below 90% target: includes strategic inventory investment to maintain supply chain resilience and support a very strong order book; continued good working capital control. · Continued balance sheet strength: net debt/EBITDA of 1.2 times, supporting future increased organic investment and acquisitions; a promising acquisition pipeline. · 7% interim dividend increase, continuing our progressive dividend policy and reflecting the Board’s continued confidence in the Group’s long-term growth prospects. · Announced last week appointment of Steve Gunning as Chief Financial Officer, effective 16 January 2023. Andrew Williams, Group Chief Executive of Halma, commented: “Halma made further good progress in the first half. We delivered record revenue, Adjusted1 Profit and interim dividend, with growth in all sectors and regions. We maintained a strong balance sheet, while further enhancing our growth opportunities through increased strategic investment to support future growth, both organically and through acquisitions. We saw strong demand for our companies’ products and services in the period. Our order book is exceptionally strong, having grown from the record level seen at the start of the year. Order intake remained ahead of both revenue and the very strong order intake in the comparable period last year. Our Sustainable Growth Model continues to enable our success in varied market conditions, demonstrating the value of the diversity and global reach of our portfolio, our strong purpose and culture and our agile business model. The operational environment presents both challenges and opportunities; we remain on track to make further progress in the second half of the year, and deliver another good full year performance.” | |||||||
| Notes: | |||||||
| 1 | Adjusted to remove the amortisation of acquired intangible assets; acquisition items; significant restructuring costs; and profit or loss on disposal of operations, totalling £26.2m (2021/22: £(12.6)m). See note 2 to the Condensed Interim Financial Statements for details. | ||||||
| 2 | Adjusted to remove the amortisation of acquired intangible assets, acquisition items, significant restructuring costs, profit or loss on disposal of operations and the associated taxation thereon. See note 2 to the Condensed Interim Financial Statements for details. | ||||||
| 3 | Interim dividend declared per share. | ||||||
| 4 | Return on Sales is defined as Adjusted1 Profit before Taxation from continuing operations expressed as a percentage of revenue from continuing operations. | ||||||
| 5 | Return on Total Invested Capital (ROTIC) is defined as post-tax Adjusted1 Profit as a percentage of average Total Invested Capital. | ||||||
| 6 | Organic constant currency measures exclude the effect of movements in foreign exchange rates on the translation of revenue and Adjusted Profit1 into Sterling, as well as acquisitions in the year following completion and disposals. See note 9 to the Condensed Interim Financial Statements for details. | ||||||
| 7 | Adjusted1 Profit before Taxation, Adjusted2 Earnings per Share, organic growth rates, Return on Sales and ROTIC are alternative performance measures used by management. See notes 2, 6 and 9 to the Condensed Interim Financial Statements for details. | ||||||
| 8 | Defined as the average of the Return on Sales reported in the five first half years prior to the COVID pandemic (19.3%). | ||||||
| 9 10 11 | As at 31 March 2022. Maximum total consideration is on a cash- and debt-free basis. Cash conversion is defined as adjusted operating cash flow as a percentage of adjusted operating profit. See note 9 to the Condensed Interim Financial Statements for details. | ||||||
For further information, please contact:
| Halma plc Andrew Williams, Group Chief Executive Marc Ronchetti, Group Chief Executive Designate and Chief Financial Officer Charles King, Head of Investor RelationsClayton Hirst, Director of Corporate Affairs | +44 (0)1494 721 111 +44 (0)7776 685948+44 (0)7384 796013 |
| MHP Communications Andrew Jaques/Rachel Farrington | +44 (0)20 3128 8572 |
| A copy of this announcement, together with other information about Halma, may be viewed on its website: www.halma.com . The webcast of the results presentation will be available on the Halma website later today: www.halma.com |