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Manufacturing & engineering

Halma reports strong trading, expects in line profit

Halma PLC (LSE:HLMA) said good progress has been made in the financial year to date and it expects annual adjusted pre-tax profits to March 31, 2023, to be in line with consensus expectations which it put at £359.9mln.

In a trading update, the Amersham-based firm said revenue growth in the year to date has been strong and includes good momentum on an organic basis, as well as benefiting from recent acquisitions.

“Our order book remains strong and our order intake is broadly in line with revenue and ahead of the same period last year,” Halma said.

It said all sectors are expected to deliver strong revenue growth on a reported basis for the full year.

Of the major regions, the US and mainland Europe have seen strong organic constant currency revenue growth in the year to date; their reported results will also benefit from recent acquisitions and currency translation effects, Halma noted.

The UK also saw good growth, although its reported results will reflect the disposal of a safety sector business in the prior period. Asia Pacific's organic constant currency revenue growth was modest, reflecting a decline in China.

Halma also signalled further M&A activity, stating “our acquisition pipeline remains promising in all three sectors.”

"This is a characteristically robust statement and quality performance by Halma," said analysts at City broker Peel Hunt.

Shares in Halma rose 0.8% in early exchanges to 2,063p.

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