Halma Plc (LON:HLMA), the global group of life-saving technology companies focused on growing a safer, cleaner, healthier future for everyone, every day, has released its scheduled trading update ahead of its financial year end on 31 March 2025.
Good progress in the second half; margin guidance modestly higher for full year
We have made good progress in the second half of this financial year to date, in varied trading conditions across our end markets amidst an evolving economic and geopolitical backdrop. This puts us on track for our 22nd consecutive year of record Adjusted profit1 and attests to the strength of our Sustainable Growth Model in delivering sustainable, compounding growth over the short and long term. This performance reflects the benefits we derive from the long-term growth drivers in our markets, the diversity of our portfolio, the exceptional talent within our companies and their agility to respond rapidly to changing market conditions.
The Group’s organic revenue growth has been supported by order intake which remains ahead of both revenue in the year to date and the comparable period last year. Adjusted EBIT margin2 has benefitted from a better than expected performance across all three sectors, reflecting favourable product and portfolio mix and good operational delivery.
Based on this progress to date and current forecasts, we now expect an Adjusted EBIT margin2 modestly above 21% for the full year to March 2025, compared to prior guidance of around 21%. Our guidance for good organic constant currency3 revenue growth for the full year to March 2025 is unchanged from that given in our half year results announcement of 21 November 2024.
The appreciation of Sterling in the financial year is expected to have a negative currency translation effect on the Group’s results5.
Healthy acquisition pipeline supported by a strong financial position
We completed seven acquisitions in the year to date across the Group’s three sectors, with £158m invested (on a maximum total consideration basis6). We continue to have a healthy acquisition pipeline across all three sectors.
The strength of our cash generation supports these investments while enabling us to maintain a strong financial position with substantial capacity for future investment. Cash conversion for the full year is expected to be strong.
CFO succession
As previously announced, Carole Cran was appointed CFO Designate on 8 January 2025 and will succeed Steve Gunning as Group Chief Financial Officer on 1 April 20257.
Full Year Results
The Group’s results for the year ending 31 March 2025 will be released on 12 June 2025.
Notes:
1. Adjusted profit before tax is before amortisation and impairment of acquired intangible assets, acquisition items and profit or loss on disposal of businesses.
2. Adjusted EBIT is earnings before interest and tax, and before amortisation and impairment of acquired intangible assets, acquisition items, and profit or loss on disposal of businesses. Adjusted EBIT margin is defined as Adjusted EBIT expressed as a percentage of revenue.
3. Organic constant currency measures exclude the effect of movements in foreign exchange rates on the translation of revenue and profit into Sterling, as well as acquisitions in the year following completion and disposals.
4. The following guidance was given in our half year 2025 results announcement in November 2024: “For the year as a whole we expect to deliver good organic constant currency3 revenue growth, and an Adjusted EBIT margin2 of around 21%, in the middle of our target range.”
5. Sterling has strengthened in the year relative to many currencies, including the US Dollar and Euro and the currency translation impact on the Group’s results for the financial year ended 31 March 2025 is expected to be negative. Based on exchange rates of Sterling/US Dollar 1:1.29 and Sterling/Euro 1:1.19, we would expect approximately a £29m negative revenue effect and approximately a £8m negative profit effect in the 2025 financial year, compared to the 2024 financial year.
6. The seven acquisitions completed in the year to date are MK Test Systems Limited, G.F.E. – Global Fire Equipment, S.A., Advantronic Systems, S.L., RemLive Limited, Hathorn Corporation, Lamidey Noury Medical, SAS and Safe-Com Wireless LLC. Maximum total consideration is on a cash- and debt-free basis.
7. As announced on 8 January 2025, Steve Gunning informed the Board of his decision to retire from Halma. Steve will continue as CFO of Halma until 31 March 2025. In line with the Group’s succession plans, Carole Cran, former independent non-executive director of Halma and Chair of the Audit Committee since 2016, was appointed CFO Designate on 8 January 2025 and will succeed Steve on 1 April 2025.
8. This Trading Update is based upon unaudited management accounts information. Forward-looking statements have been made by the Directors in good faith using information available up until the date that they approved this statement. Forward-looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks.
