Halma PLC (LSE:HLMA) will on Thursday deliver the first set of results under its new management team, who have the main task of keeping up the group's impressive record of increasing its annual dividend over more than four decades.
Marc Ronchetti took over as chief executive in April after Andrew Williams stepped down after around 18 acquisitive years in the role, with new finance chief Steve Gunning having started in January.
City analysts forecast a full-year dividend of 20.4p per share, up 8% on a year ago, with pre-tax profit estimated to come in at up 14% at £360mln.
"If this forecast is met, that would be Halma’s forty-fourth consecutive increase in its annual dividend of 5% or more," said analysts at AJ Bell, who note this would keep it in the FTSE 100 elite list of just 15 companies to have managed to increase their annual dividend each and every year for at least a decade.
The analysts explain how this dividend record has been accomplished is by providing "a solution to a problem", with its hazard detection, life protection systems, locks and devices helping companies meet regulatory requirements and keep staff, clients and customers safe.
"The mandatory nature of investment in this area creates consistent business flows and sticky customers, a combination which gives Halma a degree of pricing power. That in turn can mean high margins, good returns on capital, strong free cash flow and a growing dividend for investors over the long term."
Barclays recently suggested investors should consider such "compounders" as Halma, as they might not necessarily be operating in especially interesting or high-growth end markets, said Barclays, identifying several companies among the UK mid- and small-cap scene, including Greggs, Halma and 4imprint Group.
For the new financial year to March 2024, any guidance will be measured against a consensus forecast of an 8% adjusted profit increase to £390mln.
Elsewhere, an update on acquisitions will be eyed by investors, with Ronchetti having revealed in March's update that the six acquisitions in the past year will cost up to £264mln.
FirePro was snaffled for €150mln just before the fiscal year end, and the new fiscal year kicked off with the addition of Poland’s Sewertronics for £36mln.