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TOP NEWS: Halma Profit To Be In Line Amid Progress In All Regions

22nd Mar 2018 08:38

LONDON (Alliance News) - Halma PLC on Thursday said it anticipates annual adjusted profit to be in line with market expectations, as it progresses well across all geographic regions.

The safety, health and environmental technology company said it expects adjusted pretax profit for the year ending March 31 to come in the range of GBP208.3 million to GBP218.1 million, with a consensus of GBP212.3 million. The prior year, Halma posted adjusted pretax profit of GBP194.0 million.

On a constant currency basis, revenue continued to grow in the second half of the year with "strong" performance in Asia Pacific region and "good" progress in the UK, USA, Mainland Europe and other regions, the company said.

However, positive currency translation impact in the first half of financial year was offset by current rates and the group forecasts neutral currency influence for the full year, it added.

Halma said order intake has continued to be ahead of revenue as the group benefits from the diversity of its markets and resilient growth drivers. The year before, the blue-chip company delivered revenue of GBP961.7 million.

The company said that all sectors traded in line with expectations during the second half of its financial year. Profitability in Medical sector was improved "steadily", helped with actions to control discretionary costs. In 2017, Medical sector was the group's largest profit sector for the first time with revenue of GBP261.0 million and profit of GBP66.7 million.

Halma forecasts the growth in the group's Process Safety sector to slow down, due to tougher prior year comparatives. Last year, Process Safety sector posted "record" revenue of GBP167.0 million and profit of GBP40.2 million.

"The group's financial position remains strong. This supports both organic growth and acquisition investment. We continue to identify potential acquisition opportunities in all four of our sectors," Halma said.

The company also highlighted the acquisition of Italian manufacturer of wireless fire systems Argus and distributor of wireless devices Sterling, completed in December for GBP21.0 million. The group said that the integration of acquired companies into Halma's Infrastructure Safety sector is progressing well.

Halma shares opened down 1.9% at 1,162.00 pence per share on Thursday.


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