Halma: FTSE 100 giant books record revenue and ups dividend
Safety and equipment maker Halma notched a record year after its diversified business model powered growth across sectors amid a tough global backdrop.
The 130-year-old FTSE 100 firm recorded an 11 per cent jump in revenue to £2.2bn, which came after the business’s revenue for the first six months of the financial year topped £1bn for the first time.
Profit before tax came in at £411.2m, up from £367.9m for the previous year.
The firm cited a broad spread of growth across all markets and regions for the figures. Its Environmental and Analysis division bolstered revenue 18 per cent after “exceptional growth in photonics”.
Meanwhile, healthcare had a modest increase of 3.2 per cent, which Halma said was driven by a substantial improvement in the second half.
Halma’s return on total invested capital was up 60 basis points to 15 per cent, taking it above its 12 per cent target.
The Amersham-based business delivered dividend growth of seven per cent – marking its 46th consecutive year of dividend growth of 5 per cent or more.
Halma freeing up cash for investment
Cash conversion smashed its 90 per cent target, reaching 112 per cent. This was an improvement on the 103 per cent last year, providing Halma excess cash for further investment.
The group had invested over £108m in research and development spending in the last year as it sought future growth.
Halma said it had a “healthy pipeline of potential acquisitions” after completing seven takeovers for £157m total consideration.
Marc Ronchetti, group chief executive, said: “This has been another successful year for Halma, reflecting the contributions and commitment of everyone in the Group.
“We delivered record revenue and profit, with strong margins and cash generation, and increased returns on capital. We achieved our 22nd consecutive year of profit growth, and delivered our 46th consecutive year of dividend growth of 5 per cent or more.”