The Halma Board is recommending a 3.8% increase in the final dividend to 9.96p per share (2019: 9.60p per share). Together with the 6.54p per share interim dividend, this would result in a total dividend for the year of 16.50p (2019: 15.71p), up 5%, making this the 41st consecutive year of dividend per share growth of 5% or more.
The final dividend for 2020 is subject to approval by shareholders at the AGM on 4 September 2020 and is expected to be paid on 1 October 2020 to shareholders on the register as at 28 August 2020.
Other financial highlights include:
Record revenue and profit for the 17th consecutive year.
Good growth with revenue up 11%, Adjusted profit before tax up 9% and statutory profit before tax up 8%.
Solid organic constant currency revenue growth of 5%; organic constant currency Adjusted profit before tax growth of 2%, or 4% excluding £5.0m of COVID-19-related customer bad debt provisions.
Widespread growth: All sectors delivered revenue growth and three out of four sectors grew Adjusted operating profit. Revenue grew in all major regions on a reported and organic constant currency basis.
Strong contribution from acquisitions, adding 5% to revenue and Adjusted profit before tax growth; ten acquisitions completed and healthy acquisition pipeline.
Continued increased investment while maintaining high Return on Sales and ROTIC. R&D expenditure up 14%, representing 5.4% of revenue.
Strong cash generation, with cash conversion of 97%, and robust balance sheet and liquidity position with gearing (net debt to EBITDA) at the year-end of 1.1 times.
Resilient Q1 FY2021 trading: revenue 4% lower than in Q1 FY2020 reflecting the 'non-discretionary' demand for many Halma products; good cash generation; order intake ahead of revenue and the same period last year.
Timing and profile of recovery remains uncertain; currently expect Adjusted profit before tax for FY2021 to be 5%-10% below FY2020, and more weighted to the second half than in previous years.