REG - Halma PLC - Trading Update

HalmaAnnouncement

13/03/2025 07:15

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RNS Number : 4586A  Halma PLC  13 March 2025

Halma plc

Trading update

 

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 2025.

 

Good progress in the second half; margin guidance modestly higher for full
year

We have made good progress in the second half of this financial year to date,
in varied trading conditions across our end markets amidst an evolving
economic and geopolitical backdrop. This puts us on track for our 22(nd)
consecutive year of record Adjusted profit(1) and attests to the strength of
our Sustainable Growth Model in delivering sustainable, compounding growth
over the short and long term. This performance reflects the benefits we derive
from the long-term growth drivers in our markets, the diversity of our
portfolio, the exceptional talent within our companies and their agility to
respond rapidly to changing market conditions.

 

The Group's organic revenue growth has been supported by order intake which
remains ahead of both revenue in the year to date and the comparable period
last year. Adjusted EBIT margin(2) has benefitted from a better than expected
performance across all three sectors, reflecting favourable product and
portfolio mix and good operational delivery.

 

Based on this progress to date and current forecasts, we now expect an
Adjusted EBIT margin(2) modestly above 21% for the full year to March 2025,
compared to prior guidance of around 21%. Our guidance for good organic
constant currency(3) revenue growth for the full year to March 2025 is
unchanged from that given in our half year results announcement of 21 November
2024.

 

The appreciation of Sterling in the financial year is expected to have a
negative currency translation effect on the Group's results(5).

 

Healthy acquisition pipeline supported by a strong financial position

We completed seven acquisitions in the year to date across the Group's three
sectors, with £158m invested (on a maximum total consideration basis(6)). 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 strong.

 

CFO succession

 

As previously announced, Carole Cran was appointed CFO Designate on 8 January
2025 and will succeed Steve Gunning as Group Chief Financial Officer on 1
April 2025(7).

 

Full Year Results

The Group's results for the year ending 31 March 2025 will be released on 12
June 2025.

 

For further information, please contact:

 

 Halma plc
 Marc Ronchetti, Group Chief Executive              +44 (0)1494 721 111
 Steve Gunning, Chief Financial Officer
 Charles King, Head of Investor Relations           +44 (0) 7776 685 948
 Melanie Horton, Deputy Head of Investor Relations  +44 (0) 7554 013 396

 MHP
 Oliver Hughes / Rachel Farrington / Ollie Hoare    +44 (0)20 3128 8100 / +44 (0)7817 458 804

                                                    halma@mhpgroup.com

 

 

Notes:

1. Adjusted profit before tax is before amortisation and impairment of
acquired intangible assets, acquisition items and profit or loss on disposal
of businesses.

2. Adjusted EBIT is earnings before interest and tax, and before amortisation
and impairment of acquired intangible assets, acquisition items, and profit or
loss on disposal of businesses. Adjusted EBIT margin is defined as Adjusted
EBIT expressed as a percentage of revenue.

3. Organic constant currency measures exclude the effect of movements in
foreign exchange rates on the translation of revenue and profit into Sterling,
as well as acquisitions in the year following completion and disposals.

4. The following guidance was given in our half year 2025 results announcement
in November 2024: "For the year as a whole we expect to deliver good organic
constant currency(3) revenue growth, and an Adjusted EBIT margin(2) of around
21%, in the middle of our target range."

5. Sterling has strengthened in the year relative to many currencies,
including the US Dollar and Euro and the currency translation impact on the
Group's results for the financial year ended 31 March 2025 is expected to be
negative. Based on exchange rates of Sterling/US Dollar 1:1.29 and
Sterling/Euro 1:1.19, we would expect approximately a £29m negative revenue
effect and approximately a £8m negative profit effect in the 2025 financial
year, compared to the 2024 financial year.

6. The seven acquisitions completed in the year to date are MK Test Systems
Limited, G.F.E. - Global Fire Equipment, S.A., Advantronic Systems, S.L.,
RemLive Limited, Hathorn Corporation, Lamidey Noury Medical, SAS and Safe-Com
Wireless LLC. Maximum total consideration is on a cash- and debt-free basis.

7. As announced on 8 January 2025, Steve Gunning informed the Board of his
decision to retire from Halma. Steve will continue as CFO of Halma until 31
March 2025. In line with the Group's succession plans, Carole Cran, former
independent non-executive director of Halma and Chair of the Audit Committee
since 2016, was appointed CFO Designate on 8 January 2025 and will succeed
Steve on 1 April 2025.

 

8. 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.

9. A copy of this announcement, together with other information about Halma,
may be viewed on our website 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 the safety of people and assets as increasing
urbanisation puts pressure on crowded infrastructure.

·    Environment - Addressing the impacts of climate change, pollution and
waste, protecting life-critical resources and supporting scientific research.

·    Health - Meeting the increasing demand for better healthcare as
chronic illness rises, driven by growing and ageing populations and lifestyle
changes.

Halma employs over 8,000 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.

Halma has been named as one of Britain's Most Admired Companies for the past
six years.

For more information www.halma.com (http://www.halma.com/)

 

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