Press Releases - Full Year Results 2023/24

Full Year Results 2023/24

13 June 2024

Halma plc
Full Year Results 2024
Record profit for 21^st consecutive year

Halma, the global group of life-saving technology companies focused on growing a safer, cleaner, healthier future for everyone, every day, today announces its full year results for the 12 months to 31 March 2024.

Highlights

“2024 was another successful year for Halma. We delivered record revenue and profit, with continued high returns. Strong cash generation enabled us to make substantial investments in opportunities for future growth, while maintaining a strong balance sheet. This success in varied market conditions reflected the commitment of our people to delivering our purpose, the benefits we derive from our Sustainable Growth Model, and the long-term drivers that underpin growth in our diverse portfolio.

We have made a positive start to the new financial year. Our order intake in the year to date is ahead of both revenue and the comparable period last year. We expect to deliver good organic constant currency⁷ revenue growth in the year ahead, and an Adjusted¹ EBIT margin⁴ of around 21%, in the middle of our target range. We remain well positioned to make further progress this year and in the longer term.”
Marc Ronchetti, Group Chief Executive

• Record revenue, above £2bn for the first time: +10% and +8% OCCY⁷.
• Adjusted¹ EBIT above £400m for the first time: +12% and +7% OCCY⁷.
• Record Adjusted¹ Profit before Taxation for 21st consecutive year; +10% and +8% OCCY⁷.
• Statutory Profit before Taxation +17%.
• Good contribution from recent acquisitions⁸, adding 5.0% to revenue and 7.6% to Adjusted¹ EBIT growth.
• Adjusted¹ EBIT margin⁴ +40 basis points to 20.8%.
• Continued high returns:
  • Return on Sales⁵ stable at 19.5%, despite higher net finance expense.
  • ROTIC⁶ of 14.4% (2022/23: 14.8%), well above our estimated weighted average cost of capital of 9.7% (2022/23: 8.9%).
• Continued strategic investment to support future growth:
  • R&D investment of £107.2m (2022/23: £102.8m), representing 5.3% of revenue (2022/23: 5.5%).
  • Eight acquisitions completed for £292m maximum total consideration.
  • Healthy pipeline of potential acquisitions: one further acquisition completed since year end for £44m maximum total consideration.
• Strong cash performance: cash conversion¹⁰ 103%, above 90% target (2022/23: 78%).
• Continued balance sheet strength: net debt/EBITDA 1.35 times (2022/23: 1.38 times).
• Total dividend per share for the year up +7%; 45^th consecutive year of dividend growth of 5% or more.

1. Adjusted to remove the amortisation and impairment of acquired intangible assets, acquisition items, restructuring costs, and profit or loss on disposal of operations, totalling £56.1m (2022/23: £69.8m). See note 1 to the Results for details.
2. Adjusted to remove the amortisation and impairment of acquired intangible assets, acquisition items, restructuring costs, profit or loss on disposal of operations and the associated taxation thereon. See note 2 to the Results for details.
3. Total dividend paid and proposed per share, comprising an interim dividend of 8.41p per share and a proposed final dividend of 13.20p per share.
4. Adjusted¹ EBIT margin is defined as Adjusted¹ Earnings before Interest and Taxation from continuing operations expressed as a percentage of revenue from continuing operations.
5. Return on Sales is defined as Adjusted¹ Profit before Taxation from continuing operations expressed as a percentage of revenue from continuing operations.
6. Return on Total Invested Capital (ROTIC) is defined as post-tax Adjusted¹ Profit as a percentage of average Total Invested Capital.
7. Organic constant currency (OCCY) measures exclude the effect of movements in foreign exchange rates on the translation of revenue and Adjusted¹ Profit into Sterling, as well as acquisitions and disposals in the year. See note 3 to the Results for details.
8. The contribution to revenue or Adjusted¹ EBIT (as appropriate) from acquisitions made in the 12 months to 31 March 2024. See note 3 to the Results for details.
9. Adjusted¹ Earnings before Interest and Taxation (EBIT), Adjusted¹ Profit before Taxation, Adjusted² Earnings per Share, organic growth rates, Return on Sales, ROTIC and net debt are alternative performance measures used by management. See notes 1, 2 and 3 to the Results for details.
10. Cash conversion is defined as adjusted operating cash flow as a percentage of adjusted operating profit. See note 3 to the Results for details.

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

Halma is a global group of life-saving technology companies, focused on growing a safer, cleaner, healthier future for everyone, every day. Its purpose defines the three broad markets it operates in:

• Safety - Protecting people's safety and the environment as populations grow, and enhancing worker safety.
• Environment - Addressing the impacts of climate change, pollution and waste, protecting life-critical resources and supporting scientific research.
• Health - Meeting the increasing demand for better healthcare as chronic illness rises, driven by growing and ageing populations and lifestyle changes.

It employs over 8,000 people in more than 20 countries, with major operations in the UK, Mainland Europe, the USA and Asia Pacific. Halma is listed on the London Stock Exchange (LON: HLMA) and is a constituent of the FTSE 100 index.

Halma has been named one of Britain's Most Admired Companies for the past six years.

You can view or download copies of this announcement and our latest Annual Report from the website at www.halma.com or request free printed copies by contacting [email protected].

This announcement contains certain forward-looking statements which have been made by the Directors in good faith using information available up until the date they approved the announcement. Forward-looking statements should be regarded with caution as by their nature such statements involve risk and uncertainties relating to events and circumstances that may occur in the future. Actual results may differ from those expressed in such statements, depending on the outcome of these uncertain future events.

Please click here to read the full results.