28th Feb 2006 07:01
Halma PLC28 February 2006 Halma p.l.c. ('Halma') SALE OF RESISTOR BUSINESSES AND UPDATE ON CURRENT TRADING Halma, the leading safety, health and sensor technology group, announces that on27 February 2006 it completed the disposal of the high power Resistor businessesfrom its Industrial Safety sector to subsidiaries of Telema SpA, based in Milan,Italy for a cash consideration of US$17.7 million and €5.0 million(approximately £13.5 million). This disposal follows closely upon the sale on 13 December 2005 of SecomakLimited to Secomak Holdings Limited for £1 million cash with an additionalconsideration of £500,000 over the next six years, and the sale on 29 December2005 of Marathon Sensors Inc. to Marathon Multinational Industries Corp. for $1million cash with an additional consideration of $300,000 over the next fouryears (approximately £0.7 million in total). Commenting on the above changes, Andrew Williams, Group Chief Executive, said: "These latest disposals give further evidence of the strategic action beingtaken to transform Halma into a business capable of delivering higher growth andcontinuing strong returns for shareholders. Whilst the businesses being soldhave generated value over many years, I believe they are better placed under newownership and Halma's shareholders are better served by us concentrating more ofour resources on our core business sectors. "In June 2005, I signalled our intention to review all strategic options forthese businesses. This review and our success in improving the performance ofour Resistor businesses have proven fruitful and resulted in the successful saleto Telema, who already have a leading presence in the high power resistorsmarket. The Board believes that the Group has realised full and fair value forthese businesses through this transaction. "Following these disposals more than 60% of our ongoing sales relate toElectrical or Electronic products. Halma now has a more focussed portfolio witha greater proportion of our resources allocated to sectors delivering higherrates of return and offering more attractive growth prospects." Current trading remains strong Sales and orders have continued to grow year-on-year. The Group is currently ontrack to deliver a performance in the year to 1 April 2006 in line with currentmarket expectations, despite the reduction in operating profit arising from thedisposals announced today. The Group will provide a further trading update at the end of April 2006 aspreviously scheduled. Management changes Following the disposal of eight Group companies in the past five months, BillSeymour will be leaving the Group after a period of handover of hisresponsibilities for the Elevator and Door Safety Division to John Campbell. Andrew Williams commented: "Bill Seymour has made a significant contribution during his time with theGroup, firstly as a Company President and then as a Divisional Chief Executive.In recent years Bill led a wide geographic spread of companies and headed up theacquisition of BEA, the Group's largest acquisition. Bill leaves Halma topursue other personal and professional goals and goes with our sincere thanksand best wishes. John Campbell is a member of Halma's Executive Board and waspreviously responsible for our Resistor businesses. Having successfully managedthe disposal of those businesses I wish him further success in leading anddeveloping our Elevator and Door Safety activities towards greater growth." For further information please contact: Halma p.l.c. +44 (0)1494 721111 Andrew Williams, Chief Executive Kevin Thompson, Finance Director Hogarth Partnership Limited +44 (0)20 7357 9477 Rachel Hirst/Andrew Jacques Notes1. A copy of this announcement, together with other information about Halma, may be viewed on its website: www.halma.com.2. The legal entities comprising the high power Resistor business are Cressall Resistors Limited, IPC Power Resistors Inc., IPC Resistors Company, Mosebach Manufacturing Company and Post Glover Resistors Inc. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Halma