All three divisions at Halma, the safety, health and environmental technology group, increased revenue and profits at the half-way point of the year, though the Infrastructure Sensors business was outshone by the other two divisions.
Revenue from continuing operations in the 26 weeks to October 1st climbed 12% to £280.0m from £249.1m at the interim stage last year. Organic sales growth was 4.7% while growth on a constant currency basis was 5.8%.
Adjusted pre-tax profit from continuing operations was up 17% from £49.3m last year to £57.5m this time round, while organic growth on a constant currency basis was 4.5%.
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Broker Brewin Dolphin said the figures were in line with expectations and does not expect to make any changes to its full-year forecasts. Altium Securities, however, thinks Halma may have a bit too much to do to meet the broker's full-year earnings expectations, and sees scope for a 2% to 4% reduction in its profit forecasts.
Order intake growth was maintained during the period, with a closing order book 5% higher than the start of the period.
In health and analysis, revenue was up 17% to £121m compared to £104m the same period a year ago, leading to a 26% rise in profit to £28m from £22.1m.
Infrastructure Sensors saw a 5% growth in revenue leading to an 8% rise in profit from £17.9m to £19.4m. Elevator Safety had flat revenue and Security Sensors reported revenue marginally lower than last year with tough conditions in Europe and the USA for both businesses.
Meanwhile, Industrial Safety performed well, seeing a 17% increase in revenue to £58m from £49m last yer, and profits of £13.6m, up 20% from last year's £11.3m.
Andrew Williams, chief executive of Halma, said: "Although there are significant global economic uncertainties, our structure of decentralised management and the underpinning of demand from fundamental growth drivers have proved to be resilient in difficult markets. Halma remains on track to make further progress in the second half."
The firm increased the interim dividend by 7% to 3.79p per share, while cash volumes remained stable, rising slightly from £40.69m to £41.67m. Net debt rose to £56m from £37m at the beginning of April, after the company spent £18.7m on acquisitions; the figure was slightly higher than broker Altium Securities had been expecting.
The share price fell 0.91% to 315.3p by 11:10.
NR
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