Press Releases - Full Year Results 2019/20

Full Year Results 2019/20

14 July 2020

Halma, the global group of life-saving technology companies focused on growing a safer, cleaner and healthier future, today announces its full year results for the 12 months to 31 March 2020.

Highlights

• Record revenue and profit for the 17^th consecutive year.
• Good growth with revenue up 11%, Adjusted¹ profit before tax up 9% and statutory profit before tax up 8%.
• Solid organic constant currency revenue growth³ of 5%; organic constant currency³ Adjusted¹ profit before tax growth of 2%, or 4% excluding £5.0m of COVID-19-related customer bad debt provisions.
• Widespread growth: All sectors delivered revenue growth and three out of four sectors grew Adjusted¹ operating profit. Revenue grew in all major regions on a reported and organic constant currency basis³.
• Strong contribution from acquisitions, adding 5% to revenue and Adjusted¹ profit before tax growth; ten acquisitions completed and healthy acquisition pipeline.
• Continued increased investment while maintaining high Return on Sales⁵ and ROTIC³. R&D expenditure up 14%, representing 5.4% of revenue.
• Strong cash generation, with cash conversion of 97%, and robust balance sheet and liquidity position with gearing (net debt to EBITDA) at the year-end of 1.1 times.
• Total dividend for the year⁷ up 5%, the 41^st consecutive year of dividend per share increases of 5% or more.
• Resilient Q1 FY2021 trading: revenue 4% lower than in Q1 FY2020 reflecting the ‘non-discretionary’ demand for many Halma products; good cash generation; order intake ahead of revenue and the same period last year.
• Timing and profile of recovery remains uncertain; currently expect Adjusted¹ profit before tax for FY2021 to be 5%-10% below FY2020, and more weighted to the second half than in previous years.

Andrew Williams, Group Chief Executive of Halma, commented:

“Halma delivered a record financial performance in the past year, and trading in the first quarter has been resilient despite the effects of the COVID-19 pandemic. This reflects our clear purpose and focused strategy, our flexible and agile organisation, and the resilient, long-term growth drivers in our chosen markets. We expect these strengths, combined with the quality of our people and our increasing investment in innovation and technology, to enable us to continue to create value for all of our key stakeholders in the years ahead.”

Notes:

1. Adjusted to remove the amortisation of acquired intangible assets, acquisition items, significant restructuring costs, profit or loss on disposal of operations and in the prior year the effect of equalising pension benefits for men and women in the defined benefit pension plans, totaling £42.9m (2019: £39.0m). See note 1 to the Results for details.
2. Adjusted to remove the amortisation of acquired intangible assets, acquisition items, significant restructuring costs, profit or loss on disposal of operations, in the prior year the effect of equalising pension benefits for men and women in the defined benefit pension plans and the associated taxation thereon. See note 2 to the Results for details.
3. Adjusted¹ Profit before Taxation, Adjusted¹ Earnings per Share, organic growth rates, Return on Sales⁵ and Return on Total Invested Capital (ROTIC) are alternative performance measures used by management. See notes 1, 2 and 3 to the Results for details.
4. Total dividend paid and proposed per share.
5. Return on Sales is defined as Adjusted¹ Profit before Taxation from continuing operations expressed as a percentage of revenue from continuing operations.
6. Includes IFRS 16 lease liabilities of £61.5m (2019: £50.3m).
7. Comprising interim dividend of 6.54p and proposed final dividend of 9.96p.

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A copy of this announcement, together with other information about Halma, may be viewed on the Group’s website: www.halma.com. A webcast of today’s results presentation will be available on the same website later today.

NOTE TO EDITORS

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