Halma (HLMA) passed £1bn in annual revenues on the back of a tightening regulatory backdrop, particularly in its fast-growing Asia Pacific markets. The group is committed to expanding its competencies through a decentralised acquisition strategy targeting niche businesses within its process safety, infrastructure safety, medical and environmental & analysis markets. Five acquisitions were completed (across three sectors) during FY2018, the largest of which, Mini-Cam, a water pipeline inspection business, was struck in October 2017 for an initial consideration of £64.9m. But even without their contribution, the group achieved a 10 per cent organic profit growth rate, at constant currencies.
All four business segments grew revenues through the year, with the environmental and analysis businesses the standout performer in terms of profit growth – a 36 per cent increase in adjusted operating profit to £47.7m represented just under a quarter of the group total, while return on sales increased 2.2 percentage points to 21.2 per cent.
The group is benefiting from the roll-out of environmental and safety regulations in emerging markets to meet the challenges posed by rapid industrialisation. Predictably, this is most noticeable in China, where organic constant-currency revenues increased by almost a fifth to £82m.
Investec gives adjusted pre-tax profit of £234m for FY2019, leading to EPS of 49.3p, against £214m and 45.3p in 2018.
| HALMA (HLMA) | ||||
| ORD PRICE: | 1,424p | MARKET VALUE: | £5.41bn | |
| TOUCH: | 1,422-1,425p | 12-MONTH HIGH: | 1,470p | LOW: 1,064p |
| DIVIDEND YIELD: | 1% | PE RATIO: | 35 | |
| NET ASSET VALUE: | 218p* | NET DEBT: | 27% | |
| Year to 31 Mar | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 0.68 | 139 | 28.1 | 11.17 |
| 2015 | 0.73 | 134 | 27.5 | 11.96 |
| 2016 | 0.81 | 136 | 28.8 | 12.81 |
| 2017 | 0.96 | 158 | 34.3 | 13.71 |
| 2018 | 1.08 | 172 | 40.7 | 14.68 |
| % change | +12 | +9 | +19 | +7 |
| Ex-div: | 12 Jul | |||
| Payment: | 15 Aug | |||
| *Includes intangible assets of £867m, or 228p a share | ||||
