TIDMHLMA
RNS Number : 2266A
Halma PLC
22 September 2022
Trading update
Halma, the global group of life-saving technology companies
focused on growing a safer, cleaner and healthier future, today
releases its scheduled trading update.
Good progress in the first half and unchanged guidance for the
full year
Halma has made good progress in the first half of the financial
year to date, in line with the Board's expectations, even though
the operational environment remains challenging. Our companies have
continued to see strong demand for their products and services,
with order intake strongly ahead of both revenue in the year to
date and order intake for the same period last year. We expect to
report good organic constant currency revenue growth in the first
half of the year, against a very strong comparative period last
year, and Return on Sales(1) in line with levels typically seen in
first halves of the years prior to the COVID pandemic.
Our guidance for revenue growth and Return on Sales(1) for the
full financial year to March 2023 is unchanged from that given in
our results announcement in June(3) .
Our strong underlying cash generation and robust financial
position is supporting increased strategic investment in future
organic growth, as well as providing capacity to fund acquisitions
and our progressive dividend policy. In the first half of the year,
we expect our cash conversion to reflect further targeted
investment in working capital to maintain supply chain resilience
and support growth.
Good organic constant currency revenue growth in all sectors
All sectors have delivered good organic constant currency
revenue growth in the year to date and have also benefited from
recent acquisitions, with the largest inorganic contribution being
in the Environmental & Analysis sector, and more modest
benefits in the Safety and Healthcare sectors. The Safety sector's
performance will also reflect the impact of the disposal of Texecom
made in the first half of last year.
By geography, there has been organic constant currency revenue
growth in the first half of this year in all major regions. The USA
and Mainland Europe have delivered good organic constant currency
revenue growth to date, while the UK and Asia Pacific have grown
modestly against very strong comparatives. Organic constant
currency revenue growth in the remaining smaller regions was strong
in aggregate.
The depreciation of Sterling is having a positive currency
translation effect on the Group's results; we expect this effect to
continue in the second half of the year(5) .
Further progress in M&A; healthy acquisition pipeline
Following a very active 2021/22 financial year, in which we made
13 acquisitions, we made one acquisition in the first half of this
financial year. In April, we acquired Deep Trekker, an
Ontario-based manufacturer of remotely operated underwater robots
used for inspection, surveying, analysis and maintenance for
Can$60m (approximately GBP36m) on a cash and debt free basis.
We have a promising acquisition pipeline across all three
sectors. We continue to actively manage our portfolio of global
businesses to ensure that it continues to deliver strong growth and
returns over the long term and is aligned with our purpose of
growing a safer, cleaner, healthier future for everyone, every
day.
Half Year Results
The results for the half year ending 30 September 2022 will be
released on Thursday 17 November 2022.
For further information, please contact:
Halma plc
Andrew Williams, Group Chief Executive +44 (0)1494 721111
Marc Ronchetti, Chief Financial Officer, Chief Executive
Designate
Charles King, Head of Investor Relations +44 (0) 7776 685948
Clayton Hirst, Director of Corporate Affairs +44 (0) 7384 796
013
MHP Communications
Andrew Jaques / Rachel Farrington +44 (0)20 3128 8613
A copy of this announcement, together with other information
about Halma, may be viewed on its website: www.halma.com
Notes:
1. Return on Sales is defined as Adjusted profit before tax(2)
from continuing operations expressed as a percentage of revenue
from continuing operations.
2. 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.
3. The following guidance was given in our Full Year 2022
results announcement in June 2022: "We expect to deliver continued
growth and maintain high returns in the 2022/23 financial year,
with good single digit percentage organic constant currency revenue
growth and a Return on Sales similar to the second half of the
2021/22 financial year."
4. 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.
5. Sterling has weakened 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 positive. Based on exchange rates of Sterling/US Dollar
1:1.18 and Sterling/Euro 1:1.16, we would expect approximately a
GBP135m positive revenue effect and approximately a GBP30m positive
profit effect in 2022/23, compared to 2021/22.
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 life as populations grow and protecting worker safety.
-- Environment: improving food and water quality, and monitoring air pollution.
-- Healthcare: meeting rising healthcare demand as growing
populations age and lifestyles change.
It employs over 7,000 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.
For the past three years Halma has been named one of Britain's
Most Admired Companies by Management Today.
For more information www.halma.com
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