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11 Feb 2016 07:00
Halma plc
Trading Update
11 February 2016
Halma, the leading safety, health and environmental technology group today releases a Trading Update covering the period from 4th October 2015 to date.
Based on current trading and forecasts, the Board expects adjusted profit before tax for the year ending 2 April 2016 to be in line with market expectations (see notes 1 and 2). The group continues to benefit from the diversity of its markets and resilient growth drivers. Order intake has remained ahead of revenue.
Halma's four sectors have traded in line with the broad pattern established in the first half of the financial year. The Infrastructure Safety, Medical and Environmental & Analysis sectors have all made good progress. Process Safety has continued to have weakening demand from its Oil & Gas related customers, only partially offset by growth in other markets.
Organic constant currency revenue growth has continued in the second half. The USA has maintained a strong performance. Mainland Europe, the UK and Asia Pacific are making steady progress. In other regions there has been continued weakness in South America and good growth in Near and Middle East.
We continue to be committed to increased investment to drive organic growth and to finding acquisition opportunities which meet our strategic and financial criteria. During the period we completed three acquisitions, which have all traded in-line with expectations.
· In October 2015, Halma announced the acquisition of Firetrace USA for $110 million (£72.8 million) adding fire suppression technologies to our fire detection businesses within the Infrastructure Safety sector.
· In December 2015, Halma announced the acquisition of Visiometrics for an initial consideration of €18 million (£13.1 million) and deferred contingent consideration of up to €107 million (£78.1 million) based on performance over the next 5 years. Visiometrics adds new eyesight measurement and diagnostic technology to our ophthalmic device businesses within the Medical sector.
· On 5 February 2016, Halma announced the acquisition of CenTrak, which makes products that provide real-time monitoring of resources and activity within healthcare facilities. The consideration paid was $140 million (£95.9 million) and Centrak is now part of our Medical sector.
The Group's financial position is strong. In January 2016, we completed a US Private Placement totalling $250 million providing additional capacity to our existing syndicated bank facility of £360 million.
The results for the year ending 2 April 2016 are expected to be released on 14 June 2016.
Conference call
Andrew Williams (Chief Executive) and Kevin Thompson (Finance Director) will host a conference call for analysts and investors on this announcement at 8.00am (UK time) today (11 February). To join the call, please use the dial-in numbers below:
Dial: +44 (0) 1452 555 566
PIN: 49673588
For further information, please contact:
Halma plc Tel: +44 (0)1494 721111
Andrew Williams, Chief Executive
Kevin Thompson, Finance Director
MHP Communications Tel: +44 (0)20 3128 8100
Rachel Hirst/Andrew Jaques
Notes:
1. | Adjusted profit before tax is before amortisation of acquired intangible assets, acquisition items and profit or loss on disposal of operations.
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2. | The Board believes current market forecasts for adjusted profit before tax to be in the range of £161.6 million to £171.5 million with a consensus of £164.8 million.
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3. | This Trading Update is based on unaudited management accounts information and has been prepared solely to provide additional information to the shareholders of Halma plc. It should not be relied on by any other party, for other purposes. Forward-looking statements have been made by the Directors in good faith using information available up until the date that they approved this statement. Forward-looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks.
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4. | A copy of this announcement, together with other information about Halma, may be viewed on its website: www.halma.com
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