Halma Regulatory News (HLMA)

HALMA plc

NEW REPORTING SECTORS

14 February 2013

Halma, the leading safety, health and environmental technology group, today announces a change to its Business Sector reporting.

Halma's products "protect life" and "improve the quality of life" in safety, health and environmental markets. Since 2005, we have reported our business under three sectors including two focused on Safety (Industrial Safety and Infrastructure Sensors) and one on Health and the Environment (Health & Analysis). All our businesses operate in markets with one or more of our long-term growth drivers: increasing Health & Safety regulation, increasing demand for healthcare and the increasing need for life- critical resources (such as energy and water).

Significant M&A activity in recent years has resulted in the Health & Analysis sector growing from ~30% of Group profit in 2005 to ~50% today. In future, the current Health & Analysis sector will be reported under two new sectors namely Medical and Environmental & Analysis. The creation of a separate Medical sector reflects our growing presence in the medical devices market, in particular in ophthalmology and blood pressure monitoring.

The two safety-related sectors, Industrial Safety and Infrastructure Sensors, will be re-named Process Safety and Infrastructure Safety respectively.

The new reporting sectors are intended to provide greater insight into the products, markets and market growth drivers which are supporting our strong performance and future prospects. 

A summary of these changes together with their continued alignment with Halma's long-term market growth drivers is shown below.

New Sectors

Old Sectors

Primary Growth Drivers

H&S Regulation

Demand for Healthcare

Need for life-critical resources

"Protect life"

(Safety)

Process Safety

Industrial Safety

ü

ü

Infrastructure Safety

Infrastructure Sensors

ü

"Improve the quality of life" (Health & Environmental)

Medical

Health & Analysis

ü

Environmental & Analysis

ü

ü

These new sectors include subsidiaries with similar end-markets which will continue to help Halma further develop market-driven strategies through collaboration. The fundamental Group philosophy of giving subsidiaries autonomy and resources to grow independently remains in place.

Group earnings are unaffected by this restatement. No management changes are directly related to this change. Halma's full year results for the 52-week period to 30 March 2013 will be reported under the new sectors on 13 June 2013.

Appendix A gives a financial analysis restating Halma's last two full years' and last two half years' revenues and profits before taxation under the new sector headings. All of these schedules are unaudited although the two full years' results are based on audited accounts (under the old sector headings) which received unqualified audit reports.

Appendix B gives an outline of the alignment of sectors with Halma's major growth drivers and end-markets.

Halma today hosts a Capital Markets event for analysts and investors. A summary of the presentation is available on www.halma.com.

For further information, please contact:

Halma plc

Andrew Williams, Chief Executive

Kevin Thompson, Finance Director

+44 (0)1494 721111

MHP Communications

Rachel Hirst/Andrew Jaques

+44 (0)20 3128 8100

A copy of this announcement, together with other information about Halma, may be viewed on its website: www.halma.com.

NOTE TO EDITORS

1.

Halma develops and markets products used worldwide to protect life and improve the quality of life. The Group comprises four business sectors:

·; Process Safety

Products which protect assets and people at work.

·; Infrastructure Safety

Products which detect hazards to protect assets and people in public spaces and commercial buildings.

·; Medical

Products used to improve personal and public health.

·; Environmental & Analysis

Products and technologies for analysis in safety, life sciences and environmental markets.

The key characteristics of Halma's businesses are that they are based on specialist technology and application knowledge, offering strong growth potential. Many Group businesses are market leaders in their specialist field.

APPENDIX A

Financial Analysis and Reconciliation by Sector

New reporting sectors:

26 weeks

52 weeks

29 September 2012£000

1 October 2011

£000

31 March 2012£000

2 April 2011

£000

Revenue

Process Safety

62,535

58,007

122,240

103,058

Infrastructure Safety

100,509

101,102

204,280

197,209

Medical

59,787

48,554

100,361

82,173

Environmental & Analysis

75,499

72,547

153,351

136,165

Inter-segmental sales

(252)

(213)

(349)

(177)

Group revenue

298,078

279,997

579,883

518,428

Segment profit before adjustments*

Process Safety

15,335

13,596

29,226

24,435

Infrastructure Safety

18,907

19,364

39,099

39,023

Medical

15,388

13,152

26,252

20,425

Environmental & Analysis

15,498

14,801

31,596

25,683

65,128

60,913

126,173

109,566

Segment profit after adjustments*

Process Safety

23,222

13,307

28,627

24,156

Infrastructure Safety

18,907

19,364

39,276

38,981

Medical

11,043

8,263

21,058

15,733

Environmental & Analysis

13,373

13,761

28,721

24,437

Segment Profit

66,545

54,695

117,682

103,307

Central administration costs

(2,548)

(2,849)

(4,266)

(3,917)

Net finance expense

(1,802)

(563)

(1,442)

(1,098)

Group profit before taxation

62,195

51,283

111,974

98,292

Taxation

(12,590)

(11,646)

(25,260)

(25,858)

Group profit after taxation

49,605

39,637

86,714

72,434

* Adjustments include the amortisation of acquired intangible assets, acquisition transaction costs, adjustments to contingent purchase consideration (including any arising from foreign exchange revaluation) and profit on disposal of continuing operations, which are analysed as follows:

26 weeks to

29 September 2012

Acquisition costs

Amortisation of acquired intangible assets

£000

Transactioncosts

 £000

Adjustments to contingentconsideration

£000

Total amortisation charge and acquisition costs

£000

Disposal of continuing operations £000

Total

£000

Process Safety

(301)

-

-

(301)

8,188

7,887

Infrastructure Safety

- 

-

-

-

-

-

Medical

(4,298)

(1,173)

1,126

(4,345)

-

(4,345)

Environmental & Analysis

(1,830)

(295)

-

(2,125)

-

(2,125)

Total Group

(6,429)

(1,468)

1,126

(6,771)

8,188

1,417

26 weeks to

1 October 2011

Acquisition costs

Amortisation of acquired intangible assets

£000

Transactioncosts

 £000

Adjustments to contingentconsideration

£000

Total amortisation charge and acquisition costs

£000

Disposal of continuing operations £000

Total

£000

Process Safety

(244)

(45)

-

(289)

-

(289)

Infrastructure Safety

-

-

-

-

-

-

Medical

(3,866)

(61)

(962)

(4,889)

-

(4,889)

Environmental & Analysis

(1,035)

(5)

-

(1,040)

-

(1,040)

Total Group

(5,145)

(111)

(962)

(6,218)

-

(6,218)

52 weeks to

31 March 2012

Acquisition costs

Amortisation of acquired intangible assets

£000

Transactioncosts

 £000

Adjustments to contingentconsideration

£000

Total amortisation charge and acquisition costs

£000

Disposal of continuing operations £000

Total

£000

Process Safety

(548)

(51)

-

(599)

-

(599)

Infrastructure Safety

-

-

177

177

-

177

Medical

(7,599)

(409)

(729)

(8,737)

3,543

(5,194)

Environmental & Analysis

(2,205)

(258)

(412)

(2,875)

-

(2,875)

Total Group

(10,352)

(718)

(964)

(12,034)

3,543

(8,491)

52 weeks to

2 April 2011

Acquisition costs

Amortisation of acquired intangible assets

£000

Transactioncosts

 £000

Adjustments to contingentconsideration

£000

Total amortisation charge and acquisition costs

£000

Disposal of continuing operations £000

Total

£000

Process Safety

(279)

-

-

(279)

-

(279)

Infrastructure Safety

-

(42)

-

(42)

-

(42)

Medical

(3,278)

(1,183)

(231)

(4,692)

-

(4,692)

Environmental & Analysis

(1,203)

(43)

-

(1,246)

-

(1,246)

Total Group

(4,760)

(1,268)

(231)

(6,259)

-

(6,259)

Reconciliation of old to new sectors:

The former Health & Analysis sector's results comprise the combined results of the Medical and Environmental & Analysis sectors. Process Safety (formerly Industrial Safety) and Infrastructure Safety (formerly Infrastructure Sensors) sectors' results are unchanged. Therefore, reconciliations to only the Health & Analysis sector's results are shown below.

26 weeks

52 weeks

29 September 2012

£000

1 October 2011

£000

31 March 2012£000

2 April 2011

£000

Revenue

Medical

59,787

48,554

100,361

82,173

Environmental & Analysis

75,499

72,547

153,351

136,165

Inter-segmental sales between Medical and Environmental & Analysis

(129)

(31)

(65)

(8)

Total (formerly Health & Analysis)

135,157

121,070

253,647

218,330

Segment profit before adjustments*

Medical

15,388

13,152

26,252

20,425

Environmental & Analysis

15,498

14,801

31,596

25,683

Total (formerly Health & Analysis)

30,886

27,953

57,848

46,108

Segment profit after adjustments*

Medical

11,043

8,263

21,058

15,733

Environmental & Analysis

13,373

13,761

28,721

24,437

Total (formerly Health & Analysis)

24,416

22,024

49,779

40,170

* Adjustments include the amortisation of acquired intangible assets, acquisition transaction costs, adjustments to contingent purchase consideration (including any arising from foreign exchange revaluation) and profit on disposal of continuing operations.

APPENDIX B

Growth drivers and major end-markets by sector

Halma Growth Drivers

Major end-markets

Health & Safety

Healthcare

Life-critical

resources

Process Safety

ü

ü

Oil & Gas; Process industries

Infrastructure Safety

ü

Fire; Access control & safety

Medical

ü

Ophthalmology; Blood pressure monitoring

Environmental & Analysis

ü

ü

Water, Scientific research & analysis (including Life Sciences); Environmental monitoring