British device maker Halma's shares slump on slower annual growth forecast

Halma

Today 09:49

June 11 (Reuters) - British health and safety device maker Halma HLMA.L forecast organic constant-currency revenue growth for fiscal 2027 at a slower rate than the previous year, sending its shares down nearly 15% on Thursday. 

Here are a few details:   
The company expects to deliver low double-digit percentage organic revenue growth in constant currency for the 12-month period through March 2027, compared with 16% organic growth in fiscal 2026.
Halma's growth has been driven by its photonics business, which uses light-based technology in sensors and monitoring systems, including for data centres, due to demand fuelled by the rapid expansion of AI.
The company's outlook includes growth of around five percentage points from the photonics business, which JP Morgan analysts said would likely disappoint investors. 
Halma's outlook suggested a deceleration in revenue growth for both the photonics business and the rest of the group, Morningstar analyst Matthew Donen said.
Shares in FTSE 100-listed Halma were trading lower at 3,962 pence, as of 0825 GMT, making them the biggest laggards in the blue-chip index .FTSE.
For the year ended March 31, the company's adjusted pretax profit rose 23% to £564.5 million ($755.2 million).


($1 = £0.7474)

UK's Halma shares slide after forecasting slower revenue growth https://reut.rs/4e1un5t
 (Reporting by Neeshita Beura in Bengaluru; Editing by Rashmi Aich and Sherry Jacob-Phillips)
 ((Neeshita.Beura@thomsonreuters.com))