Achieving record results against a backdrop of weak industrial spending is testament to Halma's (HLMA) focus on markets driven by regulation, safety and health. Strip out the impact of currency shifts and acquisitions and sales rose 7 per cent as the group secured growth across all major regions.
Halma's medical business, which makes devices for eye surgery and pumps and probes for diagnostic equipment suppliers, led the way with revenue growth of 12 per cent. That was driven by a strong recovery in the US medical market and an investment strategy designed to increase market share in areas related to growing problems such as obesity and diabetes.
The only unit not to deliver organic sales growth at constant currencies was 'process safety'. Given that nearly half the division's revenue is generated in the troubled oil and gas industry, a 14 per cent fall in underlying profit isn't too surprising. Management doesn't expect the oil price to spring back to previous levels any time soon, so it is working at keeping overheads under control while diversifying into other markets.
Broker N+1 Singer expects adjusted pre-tax profit of £167m in the year to March 2016, giving adjusted EPS of 33.7p (up from £154m and 32.8p in FY2015).
| HALMA (HLMA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 809p | MARKET VALUE: | £3.1bn | |
| TOUCH: | 808-809p | 12-MONTH HIGH: | 821p | LOW: 623p |
| DIVIDEND YIELD: | 1.5% | PE RATIO: | 29 | |
| NET ASSET VALUE: | 150p* | NET DEBT: | 16% | |
| Half-year to 3 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 341 | 61.2 | 12.6 | 4.65 |
| 2015 | 380 | 64.2 | 13.3 | 4.98 |
| % change | +11 | +5 | +6 | +7 |
Ex-div: 3 Jan Payment: 10 Feb *Includes intangible assets of £529m, or 140p a share | ||||
