Halma full-year profit seen in line with consensus

The company said it had delivered organic constant currency revenue growth in all sectors and regions in the year to date and that all sectors are expected to deliver strong full-year revenue growth on a reported basis.

Halma said that on an organic constant currency basis, sector revenue growth trends in the second half of the year have been broadly consistent with those seen in the first half.

"Revenue growth in the year to date has been strong and includes good momentum on an organic constant currency basis, as well as a benefit from recent acquisitions (net of disposals), and currency translation," it said.

"Our order book remains strong and our order intake is broadly in line with revenue and ahead of the same period last year."

Of the major regions, the US and mainland Europe have seen strong organic constant currency revenue growth in the year to date, Halma said. The UK also saw good growth, although its reported results will reflect the disposal of a safety sector business in the prior period.

The full-year results are due out on 15 June.

Derren Nathan, head of equity research at Hargreaves Lansdown, said: "Today’s update was yet another reassuring statement from Halma who is on track to deliver its 20th year in a row of record profits. It’s also been a record year for investment in M&A, committing to a deal spend of up to £264m. We think the challenging macro environment will present further opportunities for Halma to pick up complementary businesses at attractive prices.

"Halma continues to prove the resilience of its sectors, and with order intake ahead of last year, next year is also beginning to shape up nicely. The shares have not escaped the recent sell off in the FTSE 100, and that’s perhaps a little unjustified. Nevertheless, a mid-twenties earnings multiple is hardly bargain basement territory. Halma has earnt its market admiration through relentless delivery of earnings growth. With that in mind, it’s fair to say that Marc Ronchetti has some big shoes to fill when he takes the helm next month."