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(Alliance News) - Halma PLC on Tuesday said it expects to report improved earnings for the recently completed financial 2020 but warned that the Covid-19 outbreak may hurt results through to the second half of financial 2021.
The FTSE 100 hazard detection and life protection stock was trading 1.7% higher at 2,126.00 pence each on Tuesday morning in London.
For its financial year that ended in March, Halma said it expects to report revenue of GBP1.33 billion, up from GBP1.21 billion the year prior.
Adjusted pretax profit is expected to be between GBP265 million and GBP270 million which, while lower than the previous forecast of GBP275.5 million, is higher than the adjusted pretax profit of GBP245.7 million recorded for financial 2019.
Net debt is expected to be around GBP320 million.
Halma noted that only two facilities - in California and Tunisia - remain closed due to government-imposed shutdowns to counter the Covid-19 outbreak.
The company said that in an effort to mitigate the pandemic's harm to its business, it has cut costs and expects savings of over GBP20 million in the first quarter of financial 2021.
Measures implemented include cutting board member pay, limiting investments, reducing discretionary spend, and furloughing employees. Halma highlighted that it will pay furloughed employees without any support from the UK government's Coronavirus Job Retention Scheme.
Halma said that while it still expects the outbreak to hurt its results for the year to the end of March 2021 - which is expected to have a "significant" second-half weighting - it remains confident of its growth prospects.
"Our agile business model, strong positions in markets with long-term growth drivers and the talent and dedication of our people are expected to ensure that we will perform relatively resiliently in the short-term and be well positioned to resume growth as markets recover," said Chief Executive Andrew Williams.
By Ife Taiwo; ifetaiwo@alliancenews.com
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