Halma makes 'good progress' in new financial year

Safety, health and environmental technology group Halma said it made “good progress” in line with board expectations in its scheduled trading update for the period from 2 April on Wednesday.

The FTSE 250 company said its improved rates of organic constant currency revenue and profit growth achieved in the second half of the last financial year continued into the current year, adding that order intake was ahead of revenue and also ahead of the same period last year.

Its board said there was “widespread growth” geographically, with organic constant currency revenue increases in all major regions.

Asia-Pacific maintained “strong” growth, the board said, with “good progress” in the UK and mainland Europe and a “steady performance” in the US.

“The Environmental & Analysis sector performed particularly well, benefitting from strong growth in Asia-Pacific and the re-organisation in its life science and research business during the first half of last year,” Halma’s board explained in its statement.

“The improved performance achieved by the process safety sector in the second half of last year continued.

“Market diversification and rising demand from the US onshore energy market both contributed to significant growth over the prior year.”

Halma said its infrastructure safety sector continued to achieve “good growth” as greater investment in new product development in recent years contributed towards increasing demand from Asia-Pacific and mainland Europe.

Its medical sector also achieved solid revenue growth, although the board said profitability was lower due to increased investment in new product development and sales resources.

“In August 2017, we announced the acquisitions of Cardios for an initial consideration of R$50m (£12.1m) and CASMED for $4.5m (£3.4m).

“Both businesses strengthen our medical sector's blood pressure monitoring technology base, with Cardios also being Halma's first acquisition in Brazil.

“The integration of both businesses is progressing well.”

Halma said its mergers and acquisitions pipeline “strengthened” during the period.

The board said it was continuing to search for businesses in, or adjacent to, all four sectors, with the additional sector resources added during 2016 improving “both the quantity and quality” of Halma’s opportunities.

“Cash generation was good and the group's financial position remains strong.

“The results for the half year ending 30 September will be released on 21 November.”