- Record revenue and profit
- Interim dividend up 7%
- Full year guidance reiterated
Technology-enabled health, safety, and environmental solutions group Halma (HLMA) topped the FTSE 100 leaderboard with a 9% rise after reporting record first half results which showed revenue breaching £1 billion for the first time.
The gain extends 2024’s advance to 20%, well ahead of the blue-chip index which is flat on the year.
The company commented: ‘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.’
Despite languishing 16% below all-time highs of £32 achieved in December 2021, Halma has been one of the best performing shares on the UK market, delivering a 1,100-fold increase since 1988. This means a £1,000 investment has turned into £1.1 million.
That does not take into account dividends which have grown from 0.34p per share to a forecast 23.1p for the year to 31 March 2025. Halma has increased its dividend every year since listing.
STRONG HALF BODES WELL FOR FULL YEAR
Revenue increased 13% to £1.07 billion for the six months to 30 September, driven by organic growth of 11.5%, contributions from acquisitions as well as price increases.
Adjusted earnings before interest and taxes increased moved above £200 million for the first time, up 17% to £222.5 million, representing a margin on sales of 20.7%, up 0.7% on the prior year.
Adjusted operating cash flow as a percentage of adjusted operating profit was 108%, well above the company’s annualised cash conversion target of 90%. This was driven by ‘good’ working capital control, following a period of working capital investment in prior years.
Looking ahead, Halma said the strength of the first half means it is well placed to deliver on existing full year guidance.
‘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 currency revenue growth, and an adjusted EBIT margin of around 21%,’ the company said.
