Halma reports record first-half results

(Sharecast News) - Halma posted record first-half results on Thursday amid strong growth across all sectors and it backed its full-year expectations as it forecast more typical rates of revenue growth in the second half of the year.
In the six months to 30 September, adjusted pre-tax profit rose 27% to £154.9m, with revenue 19% higher at £737.2m. The interim dividend was lifted 7% to 7.35p a share.

Halma hailed strong growth across all of its sectors and major regions. It said the jump in revenue reflects a substantial recovery in demand in those end markets most impacted by lockdowns in the first half of last year, while profit benefited from robust gross margins and a slower-than-expected return in variable overhead costs.

The USA remains the company's largest sales destination and contributed 38% of total revenue. Revenue rose 10%, or by 19% on an organic constant currency basis, with all sectors delivering a strong organic constant currency performance, Halma said.

Chief executive Andrew Williams said: "Halma made strong progress in the first half, delivering record revenue, profit and interim dividend, with substantial growth compared to both the first half of last financial year and 2019/20.

"Our full year outlook is unchanged, despite variable overhead costs returning and continued impacts on revenue, costs and working capital from increased supply chain, logistics and labour market disruption. In the second half of the year, we expect more typical rates of revenue growth and return on sales, with the latter more in line with historical levels."