TIDMHLMA
RNS Number : 2428T
Halma PLC
24 March 2021
Halma today releases its scheduled trading update, for the
period from 1 October 2020 to date.
Improved expectations for the Full Year
The Group has made good progress in the second half of the
financial year and we now expect Adjusted profit before tax(1) for
the 2020/21 financial year to be similar to that in FY 2019/20,
compared to prior guidance of around 5% below FY 2019/20. This
includes a small adverse impact on the full year 2020/21 results
from movements in exchange rates, compared to the broadly neutral
effect forecast at the time of the half year results.
Revenue and order trends
Revenue trends have seen continued sequential improvement, and
we have maintained good ongoing overhead control while accelerating
our strategic investments to support future growth. Order intake is
currently ahead of revenue and ahead of the same period last year,
reflecting the agility of our business model, the benefits of our
focus on niche markets with long-term growth drivers, and the
essential nature of many of our products and services.
We have continued to see significant variations in demand in
individual end markets and geographic regions in the second half of
the financial year.
The Infrastructure Safety sector has made further progress,
while Process Safety's performance continues to gradually improve
with the sector benefiting from Sensit Technologies, which was
acquired last financial year. The Medical sector has seen some
modest improvement in demand for products and services related to
elective healthcare procedures, and has benefited from a
contribution from recent acquisitions. Environmental & Analysis
has delivered a resilient performance against a very strong second
half comparative last year.
Revenue grew in all four major regions, with the strongest
growth being in Asia Pacific, which benefited from further recovery
in China. There was good growth in Mainland Europe and the UK, and
more moderate growth in the USA against a strong comparative in the
second half of last year, with each of these three regions
benefiting from recent acquisitions.
Cash, Balance sheet and M&A activity
Cash generation in the period was strong and our financial
position remains robust, allowing us to support continued
investment in growth, both organically and by acquisition.
We have a healthy acquisition pipeline and continue to actively
manage our portfolio of global businesses to ensure that it is
aligned with our purpose and maintains strong growth and returns
over the long term.
We made one acquisition and one disposal in the period. In
December, we acquired Static Systems Holdings Limited, a UK-based
manufacturer of critical communication systems, for GBP37 million.
In the same month, we divested Fiberguide Industries, Inc., a
US-based manufacturer of fibre optic technology, for $38 million
(equivalent to GBP28.1 million at the time of announcement).
The Group's results for the full year ending 31 March 2021 are
expected to be released on 10 June 2021.
Appointment of new Chair
On 9 February 2021, Dame Louise Makin joined the Halma Board as
an independent Non-Executive Director and Chair Designate, joining
the Nomination and Remuneration committees. Louise will replace
Paul Walker as Chair in July 2021 when he steps down from the Board
after eight years in that role.
New sector structure: disclosure of historical financial
information
As previously announced, from 1 April 2021 Halma will align its
organisational structure and financial reporting with our purpose
and core market focus.
We will report our performance in three sectors, namely Safety,
Environmental & Analysis, and Medical. Today, we are publishing
historical financial information for each of these three sectors
for the financial year to March 2020, including comparatives, and
for the half years to September 2019 and September 2020. This
information is presented in the Appendix to this announcement.
Notes
1. Adjusted profit before tax is before amortisation and
impairment of acquired intangible assets, acquisition items,
restructuring costs and profit or loss on disposal of
businesses.
2. This Trading Update is based upon current management accounts
information. Forward-looking statements have been made by the
Directors in good faith using information available up until the
date that they approved this statement. Forward-looking statements
should be regarded with caution because of the inherent
uncertainties in economic trends and business risks, including the
effects of the current COVID-19 outbreak.
3. A copy of this announcement, together with other information
about Halma, may be viewed on our website www.halma.com
For further information, please contact:
Halma plc
Andrew Williams, Group Chief Executive +44 (0)1494 721111
Marc Ronchetti, Chief Financial Officer
Charles King, Head of Investor Relations +44 (0)7776 685948
Clayton Hirst, Director of Corporate Affairs +44 (0)7384
796013
MHP Communications
Andrew Jaques / Giles Robinson +44 (0)20 3128 8788
A copy of this announcement, together with other information
about Halma, may be viewed on its website: www.halma.com
About Halma
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 market areas where it
operates:
-- Safety: protecting life as populations grow and protecting worker safety.
-- Environment: improving food and water quality, and monitoring air pollution.
-- Health: meeting rising healthcare demand as growing populations age and lifestyles change.
It employs over 7,000 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.
In January 2021, Halma was named Britain's Most Admired Company
by Management Today.
Appendix
As stated in our half year results announcement dated 19
November 2020, from 1 April 2021 we will align our organisational
structure and financial reporting with our purpose and core market
focus of Safety, Health and the Environment. From that date, we
will operate and report under three sectors, Safety, Environmental
& Analysis, and Medical. As previously disclosed, the existing
Process Safety sector will be combined with the Infrastructure
Safety sector to form a single Safety sector, with the exception of
our two Gas sensor companies (Crowcon and Sensit), which will move
from Process Safety to Environmental & Analysis.
The tables in this appendix show historical financial
information for these three new sectors, had they been in
existence, for the six months ended 30 September 2019 and 2020, and
the full year ended 31 March 2020, including comparatives.
The changes to sector reporting do not impact the historical
consolidated results of Halma plc at the Group level. The numbers
below are management restatements of segment financials provided
for information and are unaudited.
Financial Years to 31 March 2020 and 31 March 2019
Total Revenue
2019/20 2018/19 Change Change OCCY*
GBPm GBPm % %
H1 Full H1 Full H1 Full H1 Full
Year Year Year Year
Safety 314.1 620.8 276.0 564.8 13.8% 9.9% 3.8% 1.5%
Environmental
& Analysis 173.2 370.7 153.9 321.3 12.6% 15.4% 8.9% 12.0%
Medical 166.5 347.2 155.8 325.2 6.9% 6.8% 4.6% 3.3%
Inter-segmental
revenue (0.1) (0.3) (0.2) (0.4)
------ -------- ------ -------- ------ ------ ------ -------
Group 653.7 1,338.4 585.5 1,210.9 11.7% 10.5% 5.4% 4.8%
* On an organic constant currency basis
Segment profit before allocation
of adjustments(#)
2019/20 2018/19 Change Change OCCY*
GBPm GBPm % %
H1 Full H1 Full H1 Full H1 Full
Year Year Year Year
Safety 72.4 141.1 59.4 125.0 21.7% 12.8% 9.4% 2.1%
Environmental
& Analysis 36.2 79.9 30.7 69.5 17.9% 15.0% 14.1% 11.9%
Medical 39.3 84.4 37.8 83.2 4.5% 1.5% 1.2% (2.6)%
-------- ------- ------ ------ ------ ------ ------ -------
147.9 305.4 127.9 277.7 15.7% 10.0% 8.1% 3.2%
# Adjustments include the amortisation and impairment of
acquired intangible assets; acquisition items; significant
restructuring costs; and profit or loss on disposal of operations.
More information on alternative performance measures is available
for each respective period in our results announcements and annual
reports which are available on our website at www.halma.com.
* On an organic constant currency basis
Revenue and profit transferred from Process Safety to
Environmental & Analysis
2019/20 2018/19 Change
GBPm GBPm %
H1 Full H1 Full H1 Full
Year Year Year
Revenue 20.1 45.7 19.5 41.3 3.0% 10.6%
Profit 4.8 10.5 4.5 9.4 8.3% 12.3%
Return on Sales
2019/20 2018/19 Change
% % %
H1 Full H1 Full H1 Full
Year Year Year
Safety 23.0% 22.7% 21.5% 22.1% 1.5% 0.6%
Environmental
& Analysis 20.9% 21.6% 19.9% 21.6% 1.0% 0.0%
Medical 23.7% 24.3% 24.2% 25.6% (0.5)% (1.3)%
------ ------ ------ ------ ------- -------
Group 19.7% 19.9% 19.3% 20.3% 0.4% (0.4)%
Half Years to 30 September 2020 and 30 September 2019
Total Revenue
H1 H1 Change Change OCCY*
2020/21 2019/20 % %
GBPm GBPm
Safety 268.6 314.1 (14.5)% (16.4)%
Environmental
& Analysis 178.0 173.2 2.8% (1.2)%
Medical 172.4 166.5 3.5% (10.9)%
Inter-segmental
revenue (0.6) (0.1)
--------- --------- -------- -------------
Group 618.4 653.7 (5.4)% (11.0)%
* On an organic constant currency basis
Segment profit before allocation of adjustments
H1 H1 Change Change OCCY*
2020/21 2019/20 % %
GBPm GBPm
Safety 58.0 72.4 (19.8)% (22.1)%
Environmental
& Analysis 42.9 36.2 18.5% 16.8%
Medical 38.2 39.3 (3.2)% (21.8)%
--------- --------- -------- -------------
139.1 147.9 (6.0)% (12.5)%
# Adjustments include the amortisation and impairment of
acquired intangible assets; acquisition items; significant
restructuring costs; and profit or loss on disposal of operations.
More information on alternative performance measures is available
for each respective period in our results announcements and annual
reports which are available on our website at www.halma.com.
* On an organic constant currency basis
Revenue and profit transferred from Process Safety to
Environmental & Analysis
H1 H1 Change
2020/21 2019/20 %
GBPm GBPm
Revenue 24.0 20.1 19.5%
Profit 4.6 4.8 (5.5)%
Return on Sales (%)
H1 H1 Change
2020/21 2019/20 %
GBPm GBPm
Safety 21.6% 23.0% (1.4)%
Environmental
& Analysis 24.1% 20.9% 3.2%
Medical 22.1% 23.7% (1.6)%
--------- --------- -------
Group 19.7% 19.7% 0.0%
Revenue by sector and destination (all continuing operations)
(by location of customer)
H1 2019/20 (GBPm) USA Mainland UK Asia Africa Other Total
Europe Pacific N&ME countries
Safety 90.3 86.7 61.0 44.7 20.0 11.4 314.1
Environmental &
Analysis 73.9 21.4 37.1 32.6 5.0 3.2 173.2
Medical 84.7 27.4 7.1 29.5 5.7 12.1 166.5
Inter Segmental (0.1) - - - - - (0.1)
------ --------- ------ --------- ------- ----------- ------
Group 248.8 135.5 105.2 106.8 30.7 26.7 653.7
Full Year 2019/20 USA Mainland UK Asia Africa Other Total
(GBPm) Europe Pacific N&ME countries
Safety 167.7 174.2 124.9 91.8 39.1 23.1 620.8
Environmental &
Analysis 162.1 42.7 80.9 64.2 12.4 8.4 370.7
Medical 180.7 59.6 15.4 57.3 11.7 22.5 347.2
Inter Segmental (0.2) (0.1) - - - - (0.3)
------ --------- ------ --------- ------- ----------- --------
Group 510.3 276.4 221.2 213.3 63.2 54.0 1,338.4
H1 2020/21 (GBPm) USA Mainland UK Asia Africa Other Total
Europe Pacific N&ME countries
Safety 71.0 78.5 49.2 42.6 16.4 10.9 268.6
Environmental &
Analysis 88.3 19.7 33.0 29.6 4.4 3.0 178.0
Medical 96.2 29.0 5.6 27.8 4.0 9.8 172.4
Inter Segmental (0.4) - (0.2) - - - (0.6)
------ --------- ------ --------- ------- ----------- ------
Group 255.1 127.2 87.6 100.0 24.8 23.7 618.4
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