Investment proposition

Halma has an impressive record of creating sustained shareholder value through the economic cycle. Our reputation is built on consistently delivering record profits, high returns, strong cash flows, low levels of balance sheet gearing and a 30+ year track record of growing dividend payments by 5% or more every year. We are one of only three companies quoted on the London Stock Exchange with this record of dividend increases.

Our ability to achieve record profits through the recent period of unprecedented economic turbulence is derived from our strategy of having a group of relatively small, autonomous businesses operating in diverse specialised global markets with resilient growth drivers. These include Health, Safety and Environmental regulation which stimulate ‘non-discretionary’ purchase of products whose technical, quality and reliability requirements enable us to build competitive advantage.

We maintain organic growth momentum by increasing levels of investment in management development, new product development and establishing platforms for growth in developing markets, where Health, Safety and Environmental regulation is starting to emerge.

Organic growth generates the financial and business resources we need to fund acquisitions. Through acquisitions we add value to our business by bringing new intellectual assets and a wider technological and geographic footprint.

Over the long term, we actively manage the mix of businesses in our Group to ensure we can continue to generate strong growth and returns. Whilst acquisitions accelerate entry into more attractive market niches, we also exit markets which promise to offer less attractive opportunities in the future through carefully planned disposals.

Halma’s defensive market qualities, organic growth momentum and potential to acquire new businesses position us strongly to continue to create shareholder value and achieve even higher levels of performance in the future.