Rather predictably, fire alarms and detector specialist Halma (HLMA) has just completed a decade of continuous record results. Supplying areas where governments and companies have to invest, such as pollution control, clean water and health and safety regulation, should underpin above-average growth in the future too.
All but one of the four new reporting divisions grew last year, driving adjusted pre-tax profit up 8 per cent to £131m. Despite government cutbacks in the US, both sales and profits at Halma's medical unit leapt by over a third, and revenue jumped 12 per cent even without the benefit of four acquisitions during the period. It would have been more but for a weak UK performance.
Growth at both the process safety and infrastructure safety operations was more modest, although better margins helped the bottom line. The only stain on these results was a 4 per cent slip in underlying operating profit at the environmental analysis division. This was blamed on a cut in US research budgets and stingy UK water companies. Still, Halma is consolidating a US manufacturing facility and Asia is spending more. And it's international expansion that's exciting chief executive Andrew Williams. Higher growth markets outside Europe and the US now make up a quarter of revenues and should contribute 30 per cent by 2015.
Broker Numis Securities expects adjusted pre-tax profit of £142m and EPS of 28.8p (up from £131m and 26.2p in 2013).
HALMA (HLMA) | ||||
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ORD PRICE: | 502p | MARKET VALUE: | £1.90bn | |
TOUCH: | 501-503p | 12-MONTH HIGH: | 543p | LOW: 371p |
DIVIDEND YIELD: | 2.1% | PE RATIO: | 20 | |
NET ASSET VALUE: | 120p* | NET DEBT: | 24% |
Year to 30 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2009 | 456 | 73 | 14.1 | 7.93 |
2010 | 459 | 81 | 16.1 | 8.50 |
2011 | 518 | 98 | 19.2 | 9.10 |
2012 | 580 | 112 | 23.0 | 9.74 |
2013 | 619 | 122 | 25.2 | 10.43 |
% change | +7 | +9 | +10 | +7 |
Ex-div: 17 Jul Payment: 21 Aug *Includes intangible assets of £486m, or 129p a share |