Halma Plc – Half Year Results

• 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.”