Press Releases - Full Year Results 2021/22

Full Year Results 2021/22

16 June 2022

Record profit for 19^th consecutive year

Halma, the global group of life-saving technology companies focused on growing a safer, cleaner and healthier future for everyone, every day, today announces its full year results for the 12 months to 31 March 2022.

Financial Highlights

• Record revenue, up 16%, and 17% on an organic constant currency⁶ basis.
• 19th consecutive year of record profit: Adjusted¹ Profit before Taxation up 14%; 15% on an organic constant currency⁶ basis.
• Statutory Profit before Taxation up 20%; includes a £34.0m gain on the Texecom disposal.
• Strong organic constant currency⁶ revenue and profit growth in all three sectors and all major regions.
• Continued strong returns: Return on Sales⁴ of 20.7% and ROTIC⁵ of 14.6%
• Substantially increased strategic investment to support our future growth:
  • R&D expenditure up 21%, representing 5.6% of revenue
  • 13 acquisitions completed in the year for a total maximum consideration of £164m; one further acquisition completed since the period end for £37m; a healthy acquisition pipeline across all sectors.
• Solid cash conversion of 84% and a strong balance sheet, with net debt/EBITDA of 0.74x (2021: 0.76x), supporting investment in organic growth and acquisitions.
• Total dividend per share for the year up 7%; 43^rd consecutive year of dividend growth of 5% or more.

Andrew Williams, Group Chief Executive of Halma, commented:

“This was a year of notable achievements for Halma, with revenue exceeding £1.5bn and profit £300m for the first time. We delivered our 19th consecutive year of record profit, and our 43rd consecutive year of dividend growth of 5% or more, while substantially increasing strategic investment including further strengthening our leadership, teams and culture to support our future growth.

Halma’s Sustainable Growth Model enabled our companies to act with agility to address new market opportunities and to respond rapidly to the multiple operational and economic challenges they faced during the year. Our strong performance reflects huge credit on the dedication of our people across the business, and was underpinned by our empowering purpose and culture, our focus on niche markets with long-term, fundamental growth drivers and the high value of the solutions we provide to our customers.

We have made a positive start to the new financial year. We have a strong order book, and order intake in the year to date is ahead of revenue and in line with the very strong intake in the same period of the prior year. We expect to deliver continued growth and maintain high returns in the 2022/23 financial year, with good single digit percentage organic constant currency revenue growth and a Return on Sales similar to the second half of the 2021/22 financial year. We are well positioned to make further progress in the full year and in 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 £11.8m (2020/21: £25.4m). See note 1 to the Results 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 and, in 2022, the increase in the UK’s corporation tax rate from 19% to 25%. See note 2 to the Results for details.
3. Total dividend paid and proposed per share, comprising interim dividend of 7.35p per share and proposed final dividend of 11.53p 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 in 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 1, 2 and 3 to the Results for details.

For further information, please contact:

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

NOTE TO EDITORS

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