Halma PLC (LON:HLMA) said Tuesday that the new tax laws in the US will have a positive impact on the company’s results in more ways than one.
The technology group expects a small benefit to its effective tax rate (ETR) on adjusted profits for the year ending March 31, 2017, in line with previously released guidance of 22.3%.
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For fiscal 2019, the company anticipates ETR will drop even further, to about 20%.
Halma also said that the new US tax rules translate into a one-off, non-cash tax credit of about £15mln based on net US deferred tax liabilities as of April 1, 2017. In December, the US Congress passed the Tax Cuts and Jobs Act, which went into effect January 1.
Shares were flat in morning trading at about 1,283p. Halma is scheduled to provide a trading update on March 22.