11th Jun 2019 07:31
LONDON (Alliance News) - Halma PLC on Tuesday said it expects to make "good progress" in its new financial year, following double-digit earnings growth in its recently ended one.
The hazard detection and life protection systems specialist reported revenue growth of 13% in the year to the end of March to GBP1.21 billion from GBP1.08 billion a year before, in line with market expectations. On an organic constant currency basis, revenue climbed by 10%.
The FTSE 100 company said it saw "good" performances across all four of its sectors and benefited from the phasing of the delivery of some large orders received in the second half of the prior year.
By division, the company said the Infrastructure Safety segment was the strongest performer, with profit growth accelerating in the second half.
The Environmental & Analysis and Medical units both delivered "strong" growth, with a slower second half following an "exceptionally good" first half.
The Process Safety division achieved mid-single-digit growth, Halma said, following reorganisation to improve its competitive position and performance in the future.
Geographically, the US, mainland Europe and the UK, performed strongly, the company highlighted. Following strong performances in its financial 2018, Halma's growth in Asia Pacific, Africa and Middle East slowed, with 'Other' regions showing a small decline.
Pretax profit rose 20% to GBP206.7 million from GBP171.9 million, slightly behind consensus forecast of GBP207.8 million. On an adjusted basis, pretax profit increased by 15% to GBP245.7 million, ahead of analysts' expectations of GBP243.1 million and within Halma's guidance range of between GBP240.1 million and GBP253.4 million.
Adjusted pretax profit excludes the amortisation of acquired intangible assets, acquisitions, restructuring costs, profit or loss on disposals, and the effect of equalising pension benefits.
Halma declared a final dividend of 9.60 pence a share, up 7% from 8.97p paid the year prior, taking the total payout to 15.71p, also up 7% year-on-year.
The consensus forecast for Halma's dividend stood at 15.8p per share for the year.
"Halma had a successful year, achieving record revenue and profit, delivering our 40th consecutive year of dividend per share growth of 5% or more and making further increased strategic investment supported by our strong balance sheet," said Chief Executive Andrew Williams.
"The new financial year has started well, and order intake has continued to be ahead of both revenue and order intake for the comparable period last year. We expect to make good progress in the year ahead," added Williams.
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