Halma PLC - COVID-19 Update
Halma today releases an update regarding the impact of the COVID-19 pandemic.
Full Year Results announcement and AGM
We continue to expect our adjusted profit before tax for the year ended
We expect to release our preliminary results on
Balance sheet and liquidity
Our financial position remains robust with committed facilities totalling approximately
Currently, we do not intend to utilise the
The impact of COVID-19 challenges and our responses
Halma has a long track record of successfully adapting to societal shifts and changes in markets. We believe that our agile business model, and our focus on critical safety, health, and environmental market niches, will enable us to perform relatively resiliently and contribute to the global efforts to deal with COVID-19.
Partnering with our central and regional COVID-19 support groups, the first of which was established in
Our 43 operating companies have a total of 54 principal operating facilities spread across the
Currently, following the re-opening of our fire safety business in
There has been a significant focus on ensuring a safe working environment for all Halma company employees. Measures taken include working from home wherever possible, a ban on non-essential travel and visitors to facilities, increased spacing between workstations, appropriate protective equipment, staggered shifts and breaks, plus enhanced cleaning processes and contingency planning.
In accommodating these changes, our operational teams continue to show exceptional commitment and dedication to ensure that customer needs are met and to contribute to the global fight against COVID-19 directly and indirectly. Examples include:
· At least 10 companies from across every Halma sector are using rapid prototyping capabilities to manufacture personal protective equipment for health workers, in their local communities and nationally in the
· Diba and Bio-Chem are supplying parts which are used in new medical diagnostic test instruments.
· BEA is making sensors, including those specifically designed for healthcare facilities, to ensure that doors can be opened and closed automatically without human contact.
· Our water businesses including HWM, Mini-Cam,
· Our fire businesses are helping to ensure that fire safety is maintained in critical infrastructure across the world.
· One of our most recent acquisitions, Sensit, is supporting gas utilities in the
Cost reduction and cash conservation measures
As in previous downturns, we have sought to act quickly to mitigate potential impacts by reducing costs, optimising cash flow, protecting liquidity and, where necessary, changing how we operate.
These actions are expected to result in a cost reduction (net of the cost to implement them) of over
We have sought to limit the impact of these actions on our employees, and protect their employment, in anticipation of trading conditions improving later in the financial year. Company, sector and group leaders have agreed to temporary salary reductions from
We have implemented a widespread hiring freeze, a reduction in the use of contractors and a significant reduction in discretionary overhead spending. We are ensuring that our companies continue to manage their working capital effectively, while maintaining productive relationships with customers and suppliers. We are limiting capital investment to essential projects and R&D only, and do not expect to complete any acquisitions during the first quarter, though our M&A search efforts are continuing.
The COVID-19 pandemic is expected to have a net adverse impact on our markets and our full year financial results to
In what are challenging and changing times, we have taken a considerable number of actions to date and will continue to monitor matters closely. We will provide a further update in our Full Year results announcement.
"Through this current challenging period, many of our companies are demonstrating how they are living Halma's purpose of 'growing a safer, cleaner, healthier future for everyone, every day', by supporting the fight against COVID-19 directly and indirectly.
"Our agile business model, strong positions in markets with long-term growth drivers and the talent and dedication of our people are expected to ensure that we will perform relatively resiliently in the short term and be well positioned to resume growth as markets recover."
For further information, please contact:
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+44 (0)7824 374 980
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+44 (0)20 3128 8763
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+44 (0)20 3128 8769
Halma is a global group of life-saving technology companies, focused on growing a safer, cleaner and healthier future for people worldwide. Our innovative products and solutions address many of the key issues facing the world today. We operate in four sectors: Process Safety, Infrastructure Safety, Medical and Environmental & Analysis. We employ over 7,000 people in more than 20 countries, with major operations in the UK, Mainland Europe, the USA and Asia-Pacific. We target global niche markets where sustainable growth and high returns are supported by long-term drivers. Halma is listed on the
1. Adjusted profit before tax is before amortisation and impairment of acquired intangible assets, acquisition items, restructuring costs and profit or loss on disposal of businesses.
2. This update is based upon current 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, including the effects of the current COVID-19 outbreak.
3. A copy of this announcement, together with other information about Halma, may be viewed on our website www.halma.com
This information is provided by RNS, the news service of the
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