Halma is one of those acquisition-led businesses, like Bunzl, that are very successful but need deals to flow to keep the wheels turning.
Ahead of the third-quarter update on Thursday 21 September, Matt Britzman, equity analyst at Hargreaves Lansdown, called the FTSE 100-listed group “essentially a mash-up of around 45 businesses working to provide technology solutions in the safety, health, and environmental markets”.
The trading statement next week is not expected to reveal any alarms on trading but news on the acquisition pipeline will be welcome, Britzman adds.
Halma has managed three deals so far this year, totalling around £80 million, but as last year's annual spend was around £400 million, it might need to indicate the pace is picking up to keep its shareholders happy.
Consensus forecasts this year to March 2024 are for revenues of £1.98 billion and underlying profits of £421 million.