12th Jun 2014 07:55
LONDON (Alliance News) - Halma PLC upped its total dividend for the year to end-March and expressed confidence for further growth in the year ahead, as it saw pretax profit rise, boosted by strong revenue growth in the US, UK and mainland Europe.
The technology company proposed a total dividend of 11.17 pence, up 7.1% from 10.43 pence in the previous year.
Halma posted a pretax profit of GBP138.7 million, up 15% from GBP120.1 million, as it saw revenue rise 9.3% to GBP676.5 million from GBP619.2 million.
The company's results for the previous year were restated to reflect changes in accounting for its defined-benefit pension plans.
In Halma's Process Safety division, revenue rose 1%, as the company added new products for pressure relief in shale gas production, and a wide-area gas detector system.
In Infrastructure Safety, revenue rose 7%, driven by new product launches and growth in the company's wireless smoke detectors in the US, and its new safety sensors for automatic swing doors.
Revenue in its Medical sector rose 20%, boosted by contributions from acquisitions in the previous year, including Baoding Longer Precision Pump Co Ltd in China which pushed growth in the region up 52%. Halma said that its focus on new medical product registrations was slowly paying dividends, and strengthening its market positions in Asia and South America.
In the Environmental & Analysis sector, revenue rose 9%, following some re-organisation in the first half of the year. Halma consolidated to of its optical coating business facilities in the US, and opened a Chinese subsidiary of its main photonics business.
In this sector, revenue rose 53% in the UK, boosted by strong sales of the company's flow/pressure data loggers as UK utility companies prepare for the deregulation of the UK commercial water market in 2017.
Halma said it would continue with its strategy of investing in new products, people and international expansion. As a result, the company's research and development costs rose 5% to GBP32.1 million from GBP30.5 million.
Looking ahead, Halma said it expects a "varied trading environment" to continue, including challenges from the strengthening of sterling.
The company said that the restructuring of its executive board to align it better with its four operating sectors has given it a clearer focus, which it said will help it to achieve its longer-term strategic objectives.
Shares in Halma were trading up 2.5% at 605.50 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Halma