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REG - Halma PLC - Half-year Report <Origin Href="QuoteRef">HLMA.L</Origin> - Part 3

- Part 3: For the preceding part double click  ID:nRSU0273Xb 

                          (95)                    10,687                                        (790)                                               (20,900)                                         -                                            (20,900)    
 Environmental & Analysis  (4,412)                                                  (265)                   14                                            (41)                                                (4,704)                                          (1,910)                                      (6,614)     
 Total Segment & Group     (43,898)                                                 (363)                   10,701                                        (831)                                               (34,391)                                         (1,910)                                      (36,301)    
 
 
 Included within amortisation and impairment of acquired intangibles in the Medical sector is £12,429,000 impairment to a customer relationship asset of Visiometrics. Related to this impairment, included within the Medical sector, there is a credit arising from a revision to the estimate of the deferred contingent consideration payable for Visiometrics of £10,087,000 (E12,002,000). The majority of this revision relates to deferred contingent consideration payable on sales to the same customer. The           
 transaction costs arose mainly on the acquisition of FluxData on 6 January 2017.  The £10,701,000 credit to contingent consideration comprises mainly the revision to estimate of the payable for Visiometrics discussed above. The remaining credit relates to the change in estimate to the payable for VAS by £356,000, and for ASL Holdings Limited (ASL) by £14,000 on final settlement of the payable, and a credit of £244,000 arising from exchange differences on the Visiometrics payable which is denominated in     
 Euros. The £831,000 charge relates to the release of the fair value adjustment on revaluing the inventories of CenTrak (£790,000) and FluxData (£41,000) on acquisition. All amounts have now been released in relation to CenTrak. The £1,910,000 charge relates to inventory and fixed asset write downs and severance costs arising on the restructuring                                                                                                                                                                     
 of non-core operations in one of the Group's subsidiaries, Pixelteq. The total assets and liabilities of all four segments have not been disclosed as there have been no material changes to those disclosed in the Annual Report and Accounts 2017.                                                                                                                                                                                                                                                                            
 
 
 Geographic information The Group's revenue from external customers (by location of customer) is as follows:                                              
                                                                                                              Revenue by destination                      
                                                                                                              Unaudited 6 months to30 September 2017£000  Unaudited 26 weeks to 1 October 2016£000  Audited 52 weeks to 1 April2017 £000  
 United States of America                                                                                     181,808                                     160,807                                   345,295                               
 Mainland Europe                                                                                              109,011                                     95,965                                    210,342                               
 United Kingdom                                                                                               79,746                                      72,901                                    154,920                               
 Asia Pacific                                                                                                 83,928                                      69,686                                    151,626                               
 Africa, Near and Middle East                                                                                 30,750                                      26,742                                    60,765                                
 Other countries                                                                                              21,086                                      16,020                                    38,714                                
 Group revenue                                                                                                506,329                                     442,121                                   961,662                               
 
 
 3   Finance income                                                                                                                                                                  
                                                          Unaudited 6 months to30 September 2017£000  Unaudited 26 weeks to 1 October 2016£000  Audited 52 weeks to 1 April2017£000  
 Interest receivable                                      106                                         96                                        211                                  
 Fair value movement on derivative financial instruments  -                                           -                                         283                                  
                                                          106                                         96                                        494                                  
 
 
 4   Finance expense                                                                                                                                                                    
                                                          Unaudited 6 months to30 September 2017 £000  Unaudited 26 weeks to 1 October 2016 £000  Audited 52 weeks to 1 April2017 £000  
 Interest payable on loans and overdrafts                 3,470                                        3,463                                      6,977                                 
 Amortisation of finance costs                            454                                          325                                        1,040                                 
 Net interest charge on pension plan liabilities          888                                          832                                        1,553                                 
 Other interest payable                                   75                                           25                                         126                                   
                                                          4,887                                        4,645                                      9,696                                 
 Fair value movement on derivative financial instruments  29                                           267                                        53                                    
 Unwinding of discount on provisions                      26                                           75                                         31                                    
                                                          4,942                                        4,987                                      9,780                                 
 
 
 5   Taxation The total Group tax charge for the 6 months to 30 September 2017 of £15,104,000 (26 weeks to 1 October 2016: £13,013,000; 52 weeks to 1 April 2017: £28,014,000) comprises a current tax charge of £17,991,000 (26 weeks to 1 October 2016: £15,032,000; 52 weeks to 1 April 2017: £34,766,000) and a deferred tax credit of £2,887,000 (26 weeks to 1 October 2016: £2,019,000; 52 weeks to 1 April 2017: £6,752,000). The tax charge is based on the estimated effective tax rate for the year. The tax charge   
 includes £14,885,000 (26 weeks to 1 October 2016: £12,253,000; 52 weeks to 1 April 2017: £27,525,000) in respect of overseas tax.                                                                                                                                                                                                                                                                                                                                                                                               
 
 
 6   Earnings per ordinary share Basic and diluted earnings per ordinary share are calculated using the weighted average of 379,219,351 (1 October 2016: 378,549,906; 1 April 2017: 378,685,730) shares in issue during the period (net of shares purchased by the Company and held as treasury and Employee Benefit Trust shares). There are no dilutive or potentially dilutive ordinary shares. Adjusted earnings are calculated as earnings from continuing operations excluding the amortisation and impairment of acquired 
 intangible assets; acquisition items; restructuring costs; profit or loss on disposal of operations; and the associated taxation thereon. The Directors consider that adjusted earnings represent a more consistent measure of underlying performance. A reconciliation of earnings and the effect on basic earnings per share figures is as follows:                                                                                                                                                                           
 
 
                                                             Unaudited 6 months to 30 September 2017£000  Unaudited 26 weeks to 1 October 2016£000  Audited 52 weeks to 1 April2017 £000  
 Earnings from continuing operations                         61,715                                       52,212                                    129,689                               
 Amortisation of acquired intangible assets (after tax)      11,832                                       10,383                                    21,452                                
 Impairment of acquired intangible assets (after tax)        -                                            -                                         9,322                                 
 Acquisition transaction costs (after tax)                   574                                          -                                         240                                   
 Release of fair value adjustments to inventory (after tax)  62                                           490                                       569                                   
 Adjustments to contingent consideration (after tax)         (725)                                        300                                       (10,650)                              
 Disposal of operations and restructuring (after tax)        -                                            1,847                                     1,648                                 
 Adjusted earnings                                           73,458                                       65,232                                    152,270                               
 
 
                                                             Per ordinary share                            
                                                             Unaudited 6 months to 30 September 2017pence  Unaudited 26 weeks to 1 October 2016pence  Audited 52 weeks to 1 April2017 pence  
 Earnings from continuing operations                         16.27                                         13.79                                      34.25                                  
 Amortisation of acquired intangible assets (after tax)      3.12                                          2.74                                       5.66                                   
 Impairment of acquired intangible assets (after tax)        -                                             -                                          2.46                                   
 Acquisition transaction costs (after tax)                   0.15                                          -                                          0.06                                   
 Release of fair value adjustments to inventory (after tax)  0.02                                          0.13                                       0.15                                   
 Adjustments to contingent consideration (after tax)         (0.19)                                        0.08                                       (2.81)                                 
 Disposal of operations and restructuring (after tax)        -                                             0.49                                       0.44                                   
 Adjusted earnings                                           19.37                                         17.23                                      40.21                                  
 
 
 7   Dividends                                                                                                   
                                                                    Per ordinary share                           
                                                                    Unaudited 6 months to30 September 2017pence  Unaudited 26 weeks to 1 October 2016pence  Audited 52 weeks to 1 April2017 pence  
 Amounts recognised as distributions to shareholders in the period                                                                                                                                 
 Final dividend for the year to 1 April 2017 (2 April 2016)         8.38                                         7.83                                       7.83                                   
 Interim dividend for the year to 1 April 2017                      -                                            -                                          5.33                                   
                                                                    8.38                                         7.83                                       13.16                                  
 Dividends in respect of the period                                                                                                                                                                
 Interim dividend for the year to 31 March 2018 (1 April 2017)      5.71                                         5.33                                       5.33                                   
 Final dividend for the year to 1 April 2017                        -                                            -                                          8.38                                   
                                                                    5.71                                         5.33                                       13.71                                  
 
 
                                                                    Unaudited 6 months to 30 September 2017£000  Unaudited 26 weeks to 1 October 2016£000  Audited 52 weeks to 1 April2017 £000  
 Amounts recognised as distributions to shareholders in the period                                                                                                                               
 Final dividend for the year to 1 April 2017 (2 April 2016)         31,733                                       29,605                                    29,605                                
 Interim dividend for the year to 1 April 2017                      -                                            -                                         20,183                                
                                                                    31,733                                       29,605                                    49,788                                
 Dividends in respect of the period                                                                                                                                                              
 Interim dividend for the year to 31 March 2018 (1 April 2017)      21,678                                       20,183                                    20,183                                
 Final dividend for the year to 1 April 2017                        -                                            -                                         31,733                                
                                                                    21,678                                       20,183                                    51,916                                
 
 
 8   Notes to the Consolidated Cash Flow Statement                                                                                                                                                                                                                            
                                                                                                                                                 Unaudited 6 months to30 September 2017£000  Unaudited 26 weeks to 1 October 2016£000  Audited 52 weeks to 1 April 2017 £000  
 Reconciliation of profit from operations to net cash inflow from operating activities                                                                                                                                                                                        
 Profit on continuing operations before finance income and expense, share of results of associates and profit or loss on disposal of operations  81,767                                      70,159                                    167,070                                
 Financial instruments at Fair value through profit or loss                                                                                      (193)                                       -                                         -                                      
 Depreciation of property, plant and equipment                                                                                                   9,139                                       8,743                                     17,798                                 
 Amortisation of computer software                                                                                                               845                                         696                                       1,432                                  
 Amortisation of capitalised development costs and other intangibles                                                                             3,375                                       3,508                                     6,947                                  
 Impairment of intangibles                                                                                                                       -                                           -                                         98                                     
 Amortisation of acquired intangible assets                                                                                                      17,316                                      15,192                                    31,469                                 
 Impairment of acquired intangible assets                                                                                                        -                                           -                                         12,429                                 
 Share-based payment expense in excess of/(less than) amounts paid                                                                               552                                         (695)                                     1,880                                  
 Additional payments to pension plans                                                                                                            (5,358)                                     (5,104)                                   (10,213)                               
 Loss on restructuring of operation                                                                                                              -                                           2,057                                     1,252                                  
 (Profit)/loss on sale of property, plant and equipment and computer software                                                                    (522)                                       14                                        138                                    
 Operating cash flows before movement in working capital                                                                                         106,921                                     94,570                                    230,300                                
 Increase in inventories                                                                                                                         (8,688)                                     (2,350)                                   (5,406)                                
 Decrease/(increase) in receivables                                                                                                              4,007                                       12,680                                    (14,262)                               
 (Decrease)/increase in payables and provisions                                                                                                  (8,106)                                     (18,104)                                  5,750                                  
 Revision to estimate of contingent consideration payable                                                                                        (627)                                       323                                       (10,701)                               
 Cash generated from operations                                                                                                                  93,507                                      87,119                                    205,681                                
 Taxation paid                                                                                                                                   (17,482)                                    (16,774)                                  (33,188)                               
 Net cash inflow from operating activities                                                                                                       76,025                                      70,345                                    172,493                                
 
 
                                              Unaudited30 September 2017£000  Unaudited1 October 2016£000  Audited1 April 2017£000  
 Analysis of cash and cash equivalents                                                                                              
 Cash and bank balances                       71,671                          76,093                       66,827                   
 Overdrafts (included in current Borrowings)  (5)                             (1,825)                      (1,190)                  
 Cash and cash equivalents                    71,666                          74,268                       65,637                   
 
 
                                         At 1 April 2017 £000  Reclass £000  Cash flow £000  Net cash/(debt)acquired £000  Loan notes repaid£000  Exchange adjustments £000  At 30 September 2017 £000  
 Analysis of net debt                                                                                                                                                                                   
 Cash and bank balances                  66,827                -             5,795           155                           -                      (1,106)                    71,671                     
 Overdrafts                              (1,190)               -             1,185           -                             -                      -                          (5)                        
 Cash and cash equivalents               65,637                -             6,980           155                           -                      (1,106)                    71,666                     
 Loan notes falling due within one year  (161)                 (175)         -               -                             161                    -                          (175)                      
 Loan notes falling due after more       (181,157)             175           -               -                             -                      1,916                      (179,066)                  
 than one year                                                                                                                                                                                          
 Bank loans falling due after more       (80,761)              -             2,552           -                             -                      4,794                      (73,415)                   
 than one year                                                                                                                                                                                          
 Total net debt                          (196,442)             -             9,532           155                           161                    5,604                      (180,990)                  
 
 
 Overdrafts and Loan notes falling due within one year are included as current borrowings in the Consolidated Balance Sheet. Loan notes and Bank loans falling due after more than one year are included as non-current borrowings.  
 
 
 9   Alternative performance measures The Board uses certain non-GAAP measures to help it effectively monitor the performance of the Group. The Directors consider that these represent a more consistent measure of underlying performance. These measures include Return on Total Invested Capital, Return on Capital Employed, Organic growth at constant currency, Adjusted operating profit and Adjusted operating cash flow.  
 
 
 Return on Total Invested Capital (ROTIC)                                                                                                                                          
                                                        Unaudited  6 months to 30 September 2017£000  Unaudited 26 weeks to 1 October 2016£000  Audited52 weeks to1 April2017£000  
 Profit after tax                                       61,715                                        52,212                                    129,689                            
 Adjustments3                                           11,743                                        13,020                                    22,581                             
 Adjusted3 profit after tax                             73,458                                        65,232                                    152,270                            
 Shareholders' funds                                    775,315                                       690,568                                   778,637                            
 Add back retirement benefit obligations                66,825                                        94,024                                    74,856                             
 Less associated deferred tax assets                    (12,424)                                      (17,506)                                  (13,947)                           
 Cumulative amortisation of acquired intangible assets  179,650                                       136,963                                   168,031                            
 Historical adjustments to goodwill4                    89,549                                        89,549                                    89,549                             
 Total Invested Capital                                 1,098,915                                     993,598                                   1,097,126                          
 Average Total Invested Capital2                        1,098,021                                     942,335                                   994,099                            
 Return on Total Invested Capital (annualised)1         13.4%                                         13.8%                                     15.3%                              
 
 
 Return on Capital Employed (ROCE)                                                                                                                                                              
                                                                  Unaudited 6 months to 30 September 2017£000  Unaudited 26 weeks to 1 October 2016£000  Audited 52 weeks to 1 April 2017 £000  
 Profit before tax                                                76,819                                       65,225                                    157,703                                
 Adjustments3                                                     17,722                                       18,405                                    36,301                                 
 Net finance costs                                                4,836                                        4,891                                     9,286                                  
 Adjusted operating profit3 after share of results of associates  99,377                                       88,521                                    203,290                                
 Computer software costs within intangible assets                 4,633                                        3,353                                     4,466                                  
 Capitalised development costs within intangible assets           30,027                                       25,985                                    28,782                                 
 Other intangibles within intangible assets                       1,079                                        1,099                                     1,111                                  
 Property, plant and equipment                                    102,620                                      103,417                                   106,016                                
 Inventories                                                      124,231                                      113,757                                   118,780                                
 Trade and other receivables                                      203,408                                      179,659                                   212,236                                
 Trade and other payables                                         (125,730)                                    (109,841)                                 (135,257)                              
 Provisions                                                       (4,752)                                      (5,571)                                   (6,776)                                
 Net tax liabilities                                              (14,511)                                     (11,972)                                  (15,931)                               
 Non-current trade and other payables                             (11,383)                                     (11,387)                                  (10,780)                               
 Non-current provisions                                           (16,888)                                     (18,859)                                  (16,917)                               
 Add back contingent purchase consideration                       15,228                                       18,500                                    16,444                                 
 Capital Employed                                                 307,962                                      288,140                                   302,174                                
 Average Capital Employed2                                        305,068                                      273,394                                   280,411                                
 Return on Capital Employed (annualised)1                         65.2%                                        64.8%                                     72.5%                                  
 
 
 1  The ROTIC and ROCE measures are calculated as annualised Adjusted profit after tax divided by Average Total Invested Capital and annualised Adjusted operating profit after share of results of associates divided by Average Capital Employed respectively.                                                                                                                   
 2  The ROTIC and ROCE measures are expressed as a percentage of the average of the current period's and prior year's Total Invested Capital and Capital Employed respectively. Using an average as the denominator is considered to be more representative. The March 2016 Total Invested Capital and Capital Employed balances were £891,071,000 and £258,648,000 respectively.  
 3  Adjustments set out in note 2 include the amortisation and impairment of acquired intangible assets; acquisition items; restructuring costs and profit or loss on disposal of operations, and where applicable, the associated taxation thereon.                                                                                                                               
 4  Includes goodwill amortised prior to 3 April 2004 and goodwill taken to reserves.                                                                                                                                                                                                                                                                                              
 
 
 Organic growth and constant currencyOrganic growth measures the change in revenue and profit from continuing Group operations. The measure equalises the effect of acquisitions by: i.    removing from the year of acquisition their entire revenue and profit before taxation, andii.   in the following year, removing the revenue and profit for the number of months equivalent to the pre-acquisition period in the prior year. The resultant effect is that the acquisitions are removed from organic results for one    
 full year of ownership. The results of disposals are removed from the prior period reported revenue and profit before taxation. Constant currency measures the change in revenue and profit excluding the effects of currency movements. The measure restates the current year's revenue and profit at last year's exchanges rates. Organic growth at constant currency has been calculated below:                                                                                                                              
 
 
Organic growth and constant currency 
 
Organic growth measures the change in revenue and profit from continuing Group
operations. The measure equalises the effect of acquisitions by: i.   
removing from the year of acquisition their entire revenue and profit before
taxation, andii.   in the following year, removing the revenue and profit for
the number of months equivalent to the pre-acquisition period in the prior
year. The resultant effect is that the acquisitions are removed from organic
results for one full year of ownership. The results of disposals are removed
from the prior period reported revenue and profit before taxation. Constant
currency measures the change in revenue and profit excluding the effects of
currency movements. The measure restates the current year's revenue and profit
at last year's exchanges rates. Organic growth at constant currency has been
calculated below: 
 
                                                                                                                             Revenue   Adjusted profit* before taxation           
                                       Unaudited6 months to30 September 2017 £000  Unaudited26 weeks to 1 October 2016 £000  % growth  Unaudited6 months to 30 September2017£000  Unaudited26 weeks to 1 October 2016£000  % growth  
 Continuing operations                 506,329                                     442,121                                   14.5%     94,541                                     83,630                                   13.0%     
 Acquired and disposed revenue/profit  (3,587)                                                                                         (172)                                                                                         
 Organic growth                        502,742                                     442,121                                   13.7%     94,369                                     83,630                                   12.8%     
 Constant currency adjustment          (20,277)                                                                                        (4,154)                                                                                       
 Organic growth at constant currency   482,465                                     442,121                                   9.1%      90,215                                     83,630                                   7.9%      
 
 
 *     Adjustments include the amortisation and impairment of acquired intangible assets; acquisition items; restructuring costs; and profit or loss on disposal of operations.  
 
 
 Sector organic growth at constant currencyOrganic growth at constant currency is calculated for each segment using the same method as described above.  
 
 
 Process Safety                        Revenue                                     Adjusted* segment profit                  
                                       Unaudited6 months to30 September 2017 £000  Unaudited26 weeks to 1 October 2016 £000  % growth  Unaudited6 months to 30 September2017£000  Unaudited26 weeks to 1 October 2016£000  % growth  
 Continuing operations                 88,794                                      76,743                                    15.7%     20,247                                     17,395                                   16.4%     
 Acquisition and currency adjustments  (2,710)                                                                                         (596)                                                                                         
 Organic growth at constant currency   86,084                                      76,743                                    12.2%     19,651                                     17,395                                   13.0%     
 
 
 Infrastructure Safety                 Revenue                                     Adjusted* segment profit                  
                                       Unaudited6 months to30 September 2017 £000  Unaudited26 weeks to 1 October 2016 £000  % growth  Unaudited6 months to 30 September2017£000  Unaudited26 weeks to 1 October 2016£000  % growth  
 Continuing operations                 167,923                                     147,988                                   13.5%     35,736                                     31,991                                   11.7%     
 Acquisition and currency adjustments  (5,491)                                                                                         (1,008)                                                                                       
 Organic growth at constant currency   162,432                                     147,988                                   9.8%      34,728                                     31,991                                   8.6%      
 
 
 Medical                               Revenue                                     Adjusted* segment profit                  
                                       Unaudited6 months to30 September 2017 £000  Unaudited26 weeks to 1 October 2016 £000  % growth  Unaudited6 months to 30 September2017£000  Unaudited26 weeks to 1 October 2016£000  % growth  
 Continuing operations                 133,270                                     118,664                                   12.3%     28,730                                     28,876                                   (0.5)%    
 Acquisition and currency adjustments  (8,360)                                                                                         (1,663)                                                                                       
 Organic growth at constant currency   124,910                                     118,664                                   5.3%      27,067                                     28,876                                   (6.3)%    
 
 
 Environmental & Analysis              Revenue                                     Adjusted* segment profit                  
                                       Unaudited6 months to30 September 2017 £000  Unaudited26 weeks to 1 October 2016 £000  % growth  Unaudited6 months to 30 September2017£000  Unaudited26 weeks to 1 October 2016£000  % growth  
 Continuing operations                 116,513                                     98,797                                    17.9%     21,776                                     16,022                                   35.9%     
 Acquisition and currency adjustments  (7,303)                                                                                         (1,379)                                                                                       
 Organic growth at constant currency   109,210                                     98,797                                    10.5%     20,397                                     16,022                                   27.3%     
 
 
 *     Adjustments include the amortisation and impairment of acquired intangible assets; acquisition items; restructuring costs; and profit or loss on disposal of operations.  
 
 
 Adjusted operating profit                                                                                                                                             
                                             Unaudited6 months to30 September 2017£000  Unaudited26 weeks to 1 October 2016£000  Audited52 weeks to 1 April 2017 £000  
 Operating profit                            81,767                                     70,159                                   167,070                               
 Add back:                                                                                                                                                             
 Acquisition items                           406                                        1,113                                    (9,507)                               
 Loss on restructuring                       -                                          2,100                                    1,910                                 
 Amortisation of acquired intangible assets  17,316                                     15,192                                   31,469                                
 Impairment of acquired intangible assets    -                                          -                                        12,429                                
 Adjusted operating profit                   99,489                                     88,564                                   203,371                               
 
 
 Adjusted operating cash flow                                                                                                                                                                         
                                                                             Unaudited6 months to30 September 2017£000  Unaudited26 weeks to 1 October 2016£000  Audited52 weeks to 1 April 2017£000  
 Net cash from operating activities (note 8)                                 76,025                                     70,345                                   172,493                              
 Add back:                                                                                                                                                                                            
 Net acquisition costs                                                       932                                        -                                        363                                  
 Taxes paid                                                                  17,482                                     16,774                                   33,188                               
 Proceeds from sale of property, plant and equipment                         1,177                                      287                                      1,495                                
 Share awards vested not settled by Own shares*                              3,346                                      3,310                                    3,309                                
 Less:                                                                                                                                                                                                
 Purchase of property, plant and equipment                                   (9,134)                                    (10,728)                                 (21,875)                             
 Purchase of computer software and other intangibles                         (1,089)                                    (911)                                    (2,760)                              
 Development costs capitalised                                               (5,034)                                    (4,814)                                  (10,731)                             
 Adjusted operating cash flow                                                83,705                                     74,263                                   175,482                              
 Cash conversion % (adjusted operating cash flow/adjusted operating profit)  84%                                        84%                                      86%                                  
 
 
 *     See Consolidated Statement of Changes in Equity.  
 
 
 10   Acquisitions In the provisional accounting, adjustments are made to the book values of the net assets of the companies acquired to reflect their provisional fair values to the Group. Acquired inventories are valued at fair value adopting Group bases and any liabilities for warranties relating to past trading are recognised. Other previously unrecognised assets and liabilities at acquisition are included and accounting policies are aligned with those of the Group where appropriate. During the period    
 ended 30 September 2017, the Group made two acquisitions: Cas Medical Systems Inc's Non-Invasive Blood Pressure Monitoring product line ("CasMed NIBP") and Cardios Sistemas Comercial e Industrial Ltda and Cardio Dinamica Ltda (together "Cardios"). The combined fair value adjustments made for the acquisitions, excluding acquired intangible assets recognised and deferred taxation thereon, resulted in reducing the goodwill recognised by £558,000. Below are summaries of the assets acquired and liabilities      
 assumed and the purchase consideration of: a)    the total of CasMed NIBP and Cardios;b)    CasMed NIBP, on a stand-alone basis; andc)     Cardios, on a stand-alone basis.                                                                                                                                                                                                                                                                                                                                                     
 
 
 (A) Total of CasMed NIBP and Cardios                                
                                                         Total £000  
 Non-current assets                                                  
 Intangible assets                                       9,817       
 Property, plant and equipment                           232         
 Current assets                                                      
 Inventories                                             768         
 Trade and other receivables                             1,834       
 Cash and cash equivalents                               155         
 Total assets                                            12,806      
 Current liabilities                                                 
 Trade and other payables                                (925)       
 Provisions                                              (27)        
 Corporation tax liability                               (8)         
 Non-current liabilities                                             
 Deferred tax                                            (2,317)     
 Total liabilities                                       (3,277)     
 Net assets of businesses acquired                       9,529       
                                                                     
 Initial cash consideration paid                         15,872      
 Initial cash consideration payable                      23          
 Contingent purchase consideration estimated to be paid  1,314       
 Total consideration                                     17,209      
                                                                     
 Goodwill arising on acquisitions                        7,680       
 
 
 Due to their contractual dates, the fair value of receivables acquired (shown above) approximate to the gross contractual amounts receivable. The amount of gross contractual receivables not expected to be recovered is immaterial. There are no material contingent liabilities recognised in accordance with paragraph 23 of IFRS 3 (revised). As at the date of approval of these Condensed Financial Statements the accounting for the acquisitions remains provisional. The measurement window expires in July 2018 for   
 CasMed NIBP and in August 2018 for Cardios.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 
 
 Analysis of cash outflow in the Consolidated Cash Flow Statement                                                                                                                                                                          
                                                                                                               Unaudited 6 months to30 September 2017£000  Unaudited 26 weeks to 1 October 2016£000  Audited 52 weeks to 1 April 2017£000  
 Initial cash consideration paid                                                                               15,872                                      -                                         9,878                                 
 Initial cash consideration adjustment on prior year acquisitions                                              -                                           (166)                                     -                                     
 Cash acquired on acquisition                                                                                  (155)                                       -                                         (496)                                 
 Deferred contingent consideration paid and loan notes repaid in cash in relation to prior year acquisitions*  1,369                                       314                                       590                                   
 Net cash outflow relating to acquisitions (per Consolidated Cash Flow Statement)                              17,086                                      148                                       9,972                                 
 
 
 *     The £1,369,000 comprises £161,000 loan notes and £1,208,000 contingent consideration paid in respect of prior period acquisitions all of which had been provided in the prior period's financial statements.  
 
 
 (B) CasMed NIBP, on a stand-alone basis                             
                                                         Total £000  
 Non-current assets                                                  
 Intangible assets                                       2,909       
 Net assets of business acquired                         2,909       
                                                                     
 Initial cash consideration paid                         3,449       
 Contingent purchase consideration estimated to be paid  693         
 Total consideration                                     4,142       
                                                                     
 Goodwill arising on acquisition                         1,233       
 
 
 The Group acquired the trade and assets of the non-invasive blood pressure (NIBP) monitoring product line on 25 July 2017 for an initial cash consideration of US$4,500,000 (£3,449,000). The maximum contingent consideration payable is US$2,000,000 (£1,533,000). The current provision of US$905,000 (£693,000) represents the fair value of the estimated payable based on performance to date and the expectation of future cash flows. The earn-out is payable on the achievement of product net sales above a target    
 threshold for the 24-month period to June 2019. CasMed NIBP was purchased by SunTech Medical Inc within the Medical sector. NIBP monitoring products provide SunTech with more clinical grade options for OEM customers seeking NIBP technology for multi-parameter monitors, EMS defibrillators, haemodialysis machines and various other clinical monitoring devices. The excess of the fair value of the consideration paid over the fair value of the assets acquired is represented by customer related intangibles of     
 £1,250,000; and technology related intangibles of £1,659,000; with residual goodwill arising of £1,233,000. The goodwill represents: a)    the technical expertise of the acquired workforce;b)    the opportunity to leverage this expertise across some of Halma's businesses through future technologies; andc)     the ability to exploit the Group's existing customer base. Acquisition costs totalling £354,000 were recorded in the Consolidated Income Statement. The goodwill arising on the acquisition is expected  
 to be deductible for tax purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 
 
 (C) Cardios, on a stand-alone basis                                 
                                                         Total £000  
 Non-current assets                                                  
 Intangible assets                                       6,908       
 Property, plant and equipment                           232         
 Current assets                                                      
 Inventories                                             768         
 Trade and other receivables                             1,834       
 Cash and cash equivalents                               155         
 Total assets                                            9,897       
 Current liabilities                                                 
 Trade and other payables                                (925)       
 Provisions                                              (27)        
 Corporation tax liability                               (8)         
 Non-current liabilities                                             
 Deferred tax                                            (2,317)     
 Total liabilities                                       (3,277)     
 Net assets of businesses acquired                       6,620       
                                                                     
 Initial cash consideration paid                         12,423      
 Initial cash consideration payable                      23          
 Contingent purchase consideration estimated to be paid  621         
 Total consideration                                     13,067      
                                                                     
 Goodwill arising on acquisition                         6,447       
 
 
 The Group acquired the entire share capital of Cardios Sistemas Comercial e Industrial Ltda and Cardio Dinamica Ltda (together "Cardios") on 4 August 2017 for an initial cash consideration of R$50,000,000 (£12,423,000), adjustable based on closing date net assets and cash. The adjustment was determined to be R$93,000 (£23,000). The maximum contingent consideration payable is R$5,000,000 (£1,242,000). The current provision of R$2,500,000 (£621,000) represents the fair value of the estimated payable based on 
 performance to date and the expectation of future cash flows. The earn-out is payable on gross margin growth in excess of a target threshold for the 12-month period post-acquisition. Cardios, located in São Paulo, Brazil, designs and manufactures ambulatory ECG recorders and ambulatory blood pressure monitors for Brazilian healthcare providers. These devices are used by cardiologists and general practitioners to diagnose and prevent heart and blood vessel related diseases such as hypertension, diabetes,    
 heart attacks, and heart arrhythmias. These products are similar or complementary to patient assessment devices currently manufactured and marketed by Halma's Medical sector. The excess of the fair value of the consideration paid over the fair value of the assets acquired is represented by customer related intangibles of £934,000; trade name of £2,303,000 and technology related intangibles of £3,578,000; with residual goodwill arising of 

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