Halma has an impressive record of creating sustained shareholder value through the
economic cycle. We have consistently delivered record profits, high returns, strong
cash flows with low levels of balance sheet gearing and have a 30+ year track record
of growing dividend payments by 5% or more every year.
Our ability to achieve record profits through the recent periods of economic turbulence is derived
from our strategy of having a group of businesses building strong competitive advantage in
specialised safety, health and environmental technology markets with resilient growth drivers.
These growth drivers, such as increasing Health and Safety regulation, mean that demand for
our products is sustained, in both developed and developing regions, through periods of
significant macro-economic change.
Organic growth generates the financial and business resources we need to fund acquisitions
and keep increasing dividends.
We generate organic growth momentum by increasing levels of investment in people
development, new product development and establishing platforms for growth in developing
markets. Here, the need for improving Safety, Health and Environmental regulation is increasingly
recognised by governments and demanded by the wider population.
Over the long term, we actively manage the mix of businesses in our Group to ensure we
can sustain strong growth and returns. 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
Halma’s resilient market qualities, organic growth momentum and active portfolio management
position us strongly to create shareholder value and achieve high levels of performance in
Outperforming the market – Total Shareholder Return (five years)