Investment Proposition

Halma delivers sustained shareholder value. We consistently achieve record profits, high returns, and strong cash flows with low levels of balance sheet gearing. We have a 38-year track record of growing dividend payments by 5% or more every year.

Halma’s purpose is to protect life and improve the quality of life through innovative safety, health and environmental solutions. This provides us with exciting opportunities for growth in a diverse range of markets and with a strong motivation to make a positive difference to people’s lives worldwide.

We have a clear growth strategy, a simple financial model and a unique organisational structure, which is customer-focused and enables us to adapt quickly to market changes.

Our strategy is to have a diverse group of businesses building strong competitive advantages in specialised safety, health and environmental technology markets with resilient growth drivers. These growth drivers include increasing Health and Safety regulation, demand for healthcare and demand for life-critical resources. They ensure that the need for our products is sustained, in both developed and developing regions, through periods of significant macro-economic change.

Over the past five years (as of the Annual Report and Accounts 2017), we have achieved compound annual growth rates of 10% for revenue and 11% for profit with a good balance between organic, acquisition and dividend growth. This strong performance reflects not only our sound growth strategy but also the exceptional commitment, abilities and dedication of talented individuals in every part of Halma.

Organic growth generates the resources we use to fund acquisitions and keep increasing dividends. We generate organic growth by increasing levels of investment in people development, new product development and in establishing platforms for our businesses to grow in international markets.

Our portfolio consists of small to medium-sized manufacturing businesses operating in more than 20 countries and we have major operations in Europe, the USA and Asia. Our principal customer sectors are commercial and public buildings, utilities, healthcare/medical, science/environment, process industries and energy/resources. This market diversity contributes to our ability to sustain growth through economic cyclicality.

We manage the mix of businesses in our Group to ensure we can sustain strong growth and returns over the long term. We acquire businesses to accelerate penetration of more attractive market niches, we merge businesses when market characteristics change and we exit markets which offer less attractive long-term growth and returns through carefully planned disposals.

Halma's resilient market qualities, sustained investment in organic growth and active portfolio management position us strongly to maintain high levels of performance and create shareholder value in the future.

Total Shareholder Return (three years)

Total shareholder return 2013-2016