Safety and healthcare technology group raises its full-year margin target after a strong first half and a record £515 million spent on acquisitions
Halma has raised its profit margin guidance for the year, pointing to strong trading and a booming photonics arm as it navigates a shaky global economy.
The FTSE 100 group, which owns dozens of companies making safety, environmental and healthcare technology, now expects an adjusted operating margin of between 23.5% and 24% for the year to March 2027.
That is up from previous guidance of around 22.7%, in line with the prior year.
The upgrade reflects better operational delivery and a more favourable mix of products and businesses across its three divisions, helped by recent deals.
Halma stuck with its forecast of low double-digit percentage organic revenue growth at constant currency for the full year.
Much of the momentum is coming from photonics, the technology of generating and harnessing light, which is used in applications from sensors to medical devices.
That business is expected to grow around 30%, contributing roughly five percentage points to group growth.
Order intake remains ahead of both sales so far this year and the same period last year, giving the company confidence in the outlook.
Dealmaking has been running hot.
Halma has completed six acquisitions in the year to date, spending a record £515 million, with purchases spanning cancer treatment technology, hospital data platforms and water quality monitoring.
The largest were Dreampath Diagnostics, a French pathology specialist bought for about £238 million, and Pyxis, a water testing firm acquired for around £148 million.
At the same time, the group has trimmed its portfolio, completing three disposals for about £83 million as it shifts capital towards higher-growth opportunities.
One cloud is currency.
The recent strength of the pound against the US dollar and the euro, if sustained, is expected to knock about £8 million off revenue and £2 million off profit compared with last year, through the effect of translating overseas earnings back into sterling.
Halma, one of the London market's most consistent compounders, will publish its half-year results on 19 November.
