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.