23 March 2017
Halma, the leading safety, health and environmental technology group today releases its scheduled Trading Update.
Based on current trading and forecasts, the Board expects adjusted profit before tax for the year ending 1 April 2017 to be in line with market consensus (see notes 1 and 2).
Halma continues to benefit from the diversity of its markets and resilient growth drivers. Order intake has remained ahead of revenue.
Organic constant currency revenue and profit growth has continued in the second half with organic constant currency revenue increases in all major geographic regions. Asia Pacific has maintained a strong performance with good progress in the USA and Mainland Europe. UK revenue has remained steady while there has been improved growth in Other regions, including the Near and Middle East.
In the second half, all four sectors have traded in line with the expectations outlined at the half year. The Process Safety sector has achieved revenue and profit growth, benefitting from increased diversification and a modest recovery in certain energy markets. The Environmental & Analysis sector has also made good progress, delivering higher profitability following the Pixelteq reorganisation in the first half. The Infrastructure Safety and Medical sectors have made solid progress, with a stronger contribution from acquisitions completed in 2015/16.
We continue to identify potential acquisition opportunities in all four of our sectors. In February 2017, we announced the acquisition of FluxData for an initial consideration of $12 million and an earn-out of up to $15.5 million for growth to March 2019. FluxData, based in New York State, develops multi-spectral imaging solutions for multiple markets including industrial and medical applications and is being successfully integrated into our Environmental & Analysis sector.
The Group's financial position remains strong. In November 2016, we increased our Revolving Credit Facility to £550 million from £360 million for five years to 2021. This, together with our continued strong cash flow and the $250m US Private Placement drawn down in January 2016, gives us significant financial resources to achieve our growth objectives.
The results for the year ending 1 April 2017 will be released on 13 June 2017.
Audit Tender conclusion
Halma has concluded an external audit tender process and intends to propose to shareholders, at the 2017 Annual General Meeting, the appointment of PricewaterhouseCoopers LLP as auditor for the accounting year ending 31 March 2018.
The decision follows a competitive process undertaken by the Audit Committee, concluding with a recommendation, approved by the Board, to appoint PricewaterhouseCoopers LLP. Further details of the tender process will be included in the Company's Annual Report and Accounts 2017.
The current Statutory Auditor, Deloitte LLP, will continue in its role and undertake the audit of Halma plc for the year ending 1 April 2017.
For further information, please contact:
Tel: +44 (0)1494 721111
Andrew Williams, Chief Executive
Kevin Thompson, Finance Director
Tel: +44 (0)20 3128 8100
Rachel Hirst/Andrew Jaques
- Adjusted profit before tax is before amortisation of acquired intangible assets, acquisition items and profit or loss on disposal of operations and restructuring.
- The Board believes current market forecasts for adjusted profit before tax to be in the range of £183.7 million to £199.4 million with a consensus of £191.4 million.
- This Trading Update is based on unaudited management accounts information and has been prepared solely to provide additional information to the shareholders of Halma plc. It should not be relied on by any other party, for other purposes. 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.
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