Halma PLC (LSE:HLMA) topped the FTSE 100 leaderboard on Thursday morning as its shares jumped 9.3% on the back of a strong set of annual results and a promising start to the new year.
The safety products group reported record revenue and profit for the year to March, marking its 22nd consecutive year of profit growth and 46th straight year of dividend increases as it upped its payout 7% to 23.12p per share.
Revenue rose 11% to £2.25 billion, or 9% organically withouth the benefit of acquistions.
Adjusted EBIT up 15% to £486.3 million, as all three sectors – Safety, Environmental & Analysis, and Healthcare – delivered profit growth.
Environmental & Analysis led the way, with 18% revenue growth (25% in profit), driven by strong demand in photonics.
Cash conversion rose to 112%, and return on total invested capital reached 15%, well above its 12% target. Seven acquisitions were completed for up to £157 million, while R&D spend increased to £108.4 million.
The company reported a "positive start" to the new year and expects further good growth in photonics, which is a change from the earlier suggestion that this was stabilising.
Halma expects "upper single-digit percentage" organic revenue growth in 2026, with margins above the mid-point of its 19-23% target range.