Press Releases - Half Year Results 2021/22

Half Year Results 2021/22

18 November 2021

Record first half results and continued dividend growth

Halma, the global group of life-saving technology companies focused on growing a safer, cleaner and healthier future for everyone, every day, today announces results for the 6 months to 30 September 2021.

Highlights

• Record revenue and profit: revenue up 19%; 23% on an organic constant currency⁶ basis. Adjusted¹ Profit before Taxation up 27%; 32% on an organic constant currency⁶ basis.
• High Return on Sales of 21.0% (2020/21: 19.7%) given robust gross margins with a slower-than-expected return of variable overhead costs.
• Statutory Profit before Taxation up 74%, including a £34.0m gain on the disposal of Texecom.
• Strong organic constant currency⁶ revenue and profit growth in all sectors and major regions; very strong growth in the UK and Asia Pacific, against weaker comparatives.
• Increased returns and investment: ROTIC⁵ of 14.9%, and R&D expenditure up 20%, representing 5.6% of revenue.
• Ten acquisitions completed in the first half and one further small acquisition completed since the period end; a healthy acquisition pipeline across all sectors.
• Solid cash conversion of 85% and a robust balance sheet supporting sustained investment in organic growth and acquisitions, and a 7% increase in the interim dividend.

Andrew Williams, Group Chief Executive of Halma, commented:

“Halma made strong progress in the first half, delivering record revenue, profit and interim dividend, with substantial growth compared to both the first half of last financial year and 2019/20.

Our full year outlook is unchanged, despite variable overhead costs returning and continued impacts on revenue, costs and working capital from increased supply chain, logistics and labour market disruption. In the second half of the year, we expect more typical rates of revenue growth and Return on Sales, with the latter more in line with historical levels.

Our Sustainable Growth Model continues to drive our success, including its focus on global niche markets with long-term growth drivers. Our strong purpose and culture, our portfolio and geographic diversity, together with our agile business model enable us to perform well in varied market conditions and sustain growth and returns over the longer term.”

Notes:

1. Adjusted to remove the amortisation of acquired intangible assets, acquisition items and profit or loss on disposal of operations, totalling £(12.6)m (2020/21: £25.7m). See note 2 to the Condensed Interim Financial Statements for details.
2. Adjusted to remove the amortisation of acquired intangible assets, acquisition items, profit or loss on disposal of operations and the associated taxation thereon. See note 2 to the Condensed Interim Financial Statements for details.
3. Interim dividend paid and declared per share.
4. Return on Sales is defined as Adjusted¹ Profit before Taxation from continuing operations expressed as a percentage of revenue from continuing operations.
5. Return on Total Invested Capital (ROTIC) is defined as post-tax Adjusted¹ Profit as a percentage of average Total Invested Capital.
6. Organic constant currency measures exclude the effect of movements in foreign exchange rates on the translation of revenue and profit¹ into Sterling, as well as acquisitions for the year following completion and disposals.
7. Adjusted¹ Profit before Taxation, Adjusted² Earnings per Share, organic growth rates, Return on Sales and ROTIC are alternative performance measures used by management. See notes 2, 6 and 9 to the Condensed Interim Financial Statements for details.

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

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