Press Releases - Half Year Results 2024/25

Half Year Results 2024/25

21 November 2024

Halma plc
HALF YEAR RESULTS 2024/25
Record first half results and continued dividend growth

Halma, the global group of life-saving technology companies focused on growing a safer, cleaner, healthier future for everyone, every day, today announces results for the 6 months to 30 September 2024.

Highlights:

“It has been a successful first half for Halma. These results further extend our track record of delivering strong and compounding revenue and profit growth, substantial cash generation enabling continued investment, and returns well above our cost of capital, while growing a safer, cleaner, healthier future for everyone, every day.

The strength of our first half performance means that we are well placed to deliver our existing guidance for the 2025 financial year. Therefore, while we continue to experience varied conditions in our individual companies’ end markets, for the year as a whole we expect to deliver good organic constant currency⁵ revenue growth, and an Adjusted¹ EBIT margin of around 21%, in the middle of our target range. This is supported by our Group order intake, which remains ahead of both revenue in the year to date and the comparable period last year.

I would like to thank everyone at Halma for their contributions in the first half. Our success reflects their continued commitment 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 are well positioned to make further progress in the remainder of the year and in the longer term.”

Marc Ronchetti, Group Chief Executive

• Record first half revenue, above £1bn for the first time:
  • Strong revenue growth +13.0%;
  • Driven by organic constant currency⁵ (OCCY) revenue +11.5%.
• Record first half Adjusted¹ EBIT, above £200m for the first time:
  • Substantial growth in Adjusted¹ EBIT +17.2%; OCCY⁵ +14.8%;
  • Healthy contribution from acquisitions of 4.3% (net of disposals)⁶.
• Statutory Profit before Taxation +15.8%.
• Strong Adjusted¹ EBIT margin at 20.7% (2023/24: 20.0%).
• Continued high returns: ROTIC⁴ increased 110bps to 14.3% (2023/24: 13.2%).
• Strong cash performance: cash conversion⁸ of 108% (2023/24: 96%), substantially above 90% target.
• Further strategic investment to support future growth:
  • R&D investment increased to £54.1m (2023/24: £50.3m⁹), representing 5.0% of revenue;
  • Four acquisitions completed in the first half; seven in the financial year to date for £158m maximum total consideration; healthy pipeline of potential acquisitions.
• Continued balance sheet strength: net debt/EBITDA reduced to 1.27 times (end March 2024: 1.35 times), and well within operating range of up to 2 times.
• Interim dividend +7%: reflects the Board’s continued confidence in the Group’s growth prospects.

1. Adjusted to remove the amortisation and impairment of acquired intangible assets; acquisition items; significant restructuring costs; profit or (loss) on disposal of operations, and impairment of associates, totalling £35.2m (2023/24: £27.3m). See note 2 to the Condensed Interim Financial Statements for details.
2. Adjusted to remove the amortisation and impairment of acquired intangible assets, acquisition items, significant restructuring costs, profit on disposal of operations, impairment of associates, and the associated taxation thereon. See note 2 to the Condensed Interim Financial Statements for details.
3. Interim dividend declared per share.
4. Return on Total Invested Capital (ROTIC) is defined as post-tax Adjusted¹ Profit as a percentage of average Total Invested Capital. See note 9 to the Condensed Interim Financial Statements for details.
5. 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 in the year following completion and disposals. See note 9 to the Condensed Interim Financial Statements for details.
6. Net of disposals. The contribution to revenue or profit (as appropriate) from acquisitions made in the 18 months to 30 September 2024, less the effect on these measures from disposals made in the same period.
7. Adjusted¹ Earnings before Interest and Taxation, Adjusted¹ Profit before Taxation, Adjusted² Earnings per Share, organic growth rates, ROTIC and net debt are alternative performance measures used by management. See notes 2, 6 and 9 to the Condensed Interim Financial Statements for details.
8. Cash conversion is defined as adjusted operating cash flow as a percentage of adjusted operating profit. See note 9 to the Condensed Interim Financial Statements for details.
9. H1 2023/24 R&D corrected and restated.

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.

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.