The Halma Plc Board has declared an increase of 7% in the interim dividend to 8.41p per share (2022/23: 7.86p per share). The interim dividend will be paid on 2 February 2024 to shareholders on the register on 22 December 2023.
Other Financial Highlights Include:
- Record revenue and profit:
- Revenue +9%; organic constant currency (OCCY) revenue +5%;
- Adjusted Profit before Taxation +3%; OCCY in line with first half of last year;
- Statutory Profit before Taxation +3%.
- Healthy contribution from recent acquisitions, adding over 5% to revenue and profit growth.
- Adjusted EBIT margin resilient at 20.0% (2022/23: 20.3%).
- Return on Sales of 18.7% (2022/23: 19.6%): principally reflecting higher net finance expense; compares to strong performance, above pre-COVID level, in 2022/23 first half.
- Continued strategic investment to support future growth:
- R&D investment up 5% to £52m, representing 5.5% of revenue;
- Five acquisitions completed in financial year to date (three in first half) for £126m maximum total consideration; healthy pipeline of potential acquisitions.
- Strong cash performance; continued balance sheet strength: cash conversion of 96% (2022/23: 63%), above 90% target; net debt/EBITDA 1.4 times, within operating range of up to 2 times.
- Revenue growth in all sectors:
- Safety: continued strong progress including good OCCY growth and healthy acquisition contribution;
- Environmental & Analysis: good reported and OCCY growth; includes very strong growth in photonics and water, partly offset by weaker trends in spectroscopy;
- Healthcare: modest reported growth; flat OCCY revenue reflects strong growth in sensors & analytics and ophthalmology therapeutics, offset by continuing OEM customer destocking, especially in Life Sciences, and budgetary caution at healthcare providers.
- Adjusted EBIT margin increase in Safety and Healthcare sectors; lower Environmental & Analysis margin mainly reflects reduction in higher margin spectroscopy revenue.
- Revenue growth in all regions except Asia Pacific: strong growth in largest regions of USA and Mainland Europe; Asia Pacific mainly reflects weaker China trends.