Safety products maker Halma PLC (LSE:HLMA) has cautioned that a strong pound is a persistent headwind for the FTSE 100-listed group.
“The appreciation of sterling is having a negative currency translation effect on the group's results; we expect this effect to continue in the second half of the year,” management said in a Thursday trading update.
The US and mainland Europe are Halma’s two largest regions, contributing 44% and 21% of revenue respectively, according to its most recent annual statement.
The UK, in contrast, contributes just 14%. This makes Halma particularly prone to strong domestic currency markets.
Currency headwinds aside, Halma said it continues to expect good organic constant currency revenue growth and an adjusted EBIT margin of around 21% for the full year, in line with previous guidance.
Group order intake so far this year has surpassed revenue and last year’s comparable period.
During the first half, Halma made four acquisitions within its Safety sector, valued at approximately £85 million.
The acquisitions included UK-based MK Test Systems, Portuguese fire detection firm Global Fire Equipment, Spanish fire alarm specialist Advantronic, and UK-based electrical safety provider RemLive.
Halma also reported one small disposal in the period, selling Hydreka SAS for around £7 million, net of disposal costs.