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The Markets
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Manufacturing & engineering

Halma hits new all-time high as revenue outlook hiked

Shares in Halma PLC (LSE:HLMA) rose over 2% to a new all-time high, as the safety products group nudged up its full-year outlook.

The FTSE 100-listed conglomerate now expects organic constant currency revenue growth of a "low double-digit" percentage, up from previous guidance of "upper single digits".

The upgrade has been driven by stronger-than-expected growth in photonics in the Environmental & Analysis sector, while order intake remains ahead of the prior year.

Profit margin guidance was unchanged, with management anticipating it will be "modestly above" the middle of its 19-23% target range this financial year.

With strong cash generation supporting investment and acquisition capacity, two acquisitions were completed in the first half of the year: underground drilling location systems specialist Brownline for £129 million and cryogenic therapy engineer Nu Perspectives for £1.5 million.

The company said its acquisition pipeline remains healthy.

A one-off gain of £8 million is expected to be made to adjusted EBIT after a £10 million disposal was made and a subsidiary in the E&A sector, Nuvonic, entered into a licence, manufacturing and distribution agreement with a long-standing partner.

"We have made strong progress in the first half of this financial year, against a backdrop of varied market conditions and a challenging economic and geopolitical environment," Halma said, ahead of results for the six months to 30 September being published in November.

Shares rose 2.3% to 3,416p, uop around 26% so far this year.

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