REG - Halma PLC - Trading Statement

HalmaAnnouncement

22/09/2022 07:00

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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 £36m) 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 £135m positive revenue effect and approximately a £30m
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 (http://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 (http://www.halma.com/)

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