REG - Halma PLC - Trading Update

HalmaAnnouncement

Thu 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250925:nRSY7124Aa&default-theme=true

RNS Number : 7124A  Halma PLC  25 September 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 half year end on 30 September 2025.

 

Strong progress in the first half; full year revenue growth guidance increased

We have made strong progress in the first half of this financial year, against
a backdrop of varied market conditions and a challenging economic and
geopolitical environment. Our continued delivery of strong, compounding growth
and returns reflects the benefits of our Sustainable Growth Model, including
our participation in diverse markets whose growth is supported by long-term
drivers, the exceptional talent in our companies, and the autonomy we give our
companies and people to respond rapidly to changing market conditions.

 

Based on our progress in the year to date and our current expectations for the
remainder of the year, we now expect to deliver low double digit percentage
organic constant currency(1) revenue growth in this financial year. This
compares to our previous guidance of upper single digit percentage organic
constant currency(1) revenue growth, with the increase being primarily driven
by stronger-than-expected growth in photonics within the Environmental &
Analysis Sector.

 

This growth is supported by order intake which remains ahead of both revenue
in the year to date and the comparable period last year.

 

There is no change to our Adjusted EBIT margin(2) guidance, which we continue
to expect to be modestly above the middle of our target range of 19-23% in
this financial year.

 

Our strong underlying cash generation and robust financial position is
supporting continued strategic investment in future organic growth, as well as
providing capacity to fund acquisitions. In the first half of the year, we
expect our cash conversion to reflect incremental growth investment in working
capital as well as capital investments across the Group. We expect full year
cash conversion to be more in line with our KPI of 90%.

 

The appreciation of Sterling is having a negative currency translation effect
on the group's results; we expect this effect to continue in the second half
of the year(3).

 

Further M&A progress; healthy acquisition pipeline

We have completed two acquisitions in the year to date. On 25 August, we
acquired Brownline, a provider of advanced gyroscopic locating systems used by
Horizontal Directional Drilling (HDD) contractors in trenchless underground
drilling, for €150m (approximately £129m)(4) as a standalone company for
our Environmental & Analysis Sector. On 3 April, we acquired Nu
Perspectives, a cryogenic therapy device engineering company, as a bolt-on for
our Healthcare Sector company, Keeler, for £1.5m(4). We continue to have a
healthy acquisition pipeline.

 

We actively manage our portfolio of global businesses to ensure that it
delivers strong growth and returns and is aligned with our purpose of growing
a safer, cleaner, healthier future for everyone, every day. As a result, we
made one disposal in the period, of AAI, for approximately £10m, net of
disposal costs. In addition, our Environmental & Analysis Sector company
Nuvonic entered into a licence, manufacturing and distribution agreement with
their long-standing partner Fluidsmile in a number of Asian markets. Further
details of these transactions are given in note 5 to this update.

 

Half Year Results

The Group's results for the half year ending 30 September 2025 will be
released on 20 November 2025.

 

For further information, please contact:

Halma plc

Marc Ronchetti, Group Chief
Executive                                 +44
(0)1494 721 111

Carole Cran, Chief Financial Officer

Melanie Horton, Co-Head of Investor Relations
+44 (0) 7554 013 396

Charles King, Co-Head of Investor
Relations                        +44 (0) 7776 685 948

MHP

Oliver Hughes / Rachel Farrington / Ollie Hoare
        +44 (0)7817 458 804 / halma@mhpgroup.com

Notes:

1. 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.

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. Our guidance excludes the one-off
benefit from the Nuvonic transaction which was completed in the half year (see
note 5 below).

3. 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 2026 is expected to be
negative. Based on exchange rates of Sterling/US Dollar 1:1.35 and
Sterling/Euro 1:1.16, we would expect approximately a £74m negative revenue
effect and approximately a £17m negative profit effect in the 2026 financial
year, compared to the 2025 financial year.

4. On a cash- and debt-free basis.

5. On 25 July 2025, the group completed the sale of AAI, a designer and
manufacturer of smoke, heat, and carbon monoxide detectors and HVAC-mounted
duct smoke and carbon monoxide detectors, principally for the US residential
market, for a total cash consideration of US$14m (approximately £10m) on a
cash- and debt-free basis, net of disposal costs. In the financial year ended
31 March 2025, AAI reported revenue of US$54m (approximately £42m). A loss,
which is expected to be approximately £5m, will be recognised in statutory
profit on disposal.

On 15 May 2025, Nuvonic, an Environmental & Analysis Sector company,
granted Fluidsmile Fluid Tech Ltd (Fluidsmile), a longstanding partner of
Nuvonic in China, an exclusive trademark licence and related manufacturing and
distribution rights to sell certain Nuvonic products in China and other agreed
southeastern Asian markets, for RMB95m (approximately £10m). Nuvonic also
acquired a 35% associate investment in Fluidsmile for RMB95m (approximately
£10m) on the same date. As a result of these transactions, a one-off gain of
£8m will be recognised in Adjusted EBIT(2) in the current financial year.

6. 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.

7. 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 markets it operates in:

·        Safety - Protecting the safety of people and assets as
populations grow and the demand on infrastructure increases.

·        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.

 

It employs over 9,000 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/)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTSEAFWLEISESU