Halma grows organically despite slow European markets

Geoff Unwin, Chairman of Halma, is set to tell shareholders at the group's 118th annual general meeting that the new financial year has got off to a steady start, despite Europe proving a drag on top line growth.

The safety, health and environmental technology group saw revenue in the April to June quarter rise 6% on the corresponding period of last year, with organic growth on a constant currency basis running at 2%.

Order intake during the period was equivalent to 105% of revenue and was 8% of last year.

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"The group achieved satisfactory organic revenue growth at constant currency in the UK with higher growth in Asia and the USA offsetting weaker demand from Europe," Unwin's speech reveals.

Of the group's three main divisions the star performer is the Industrial Safety unit, which makes pressure relief devices, gas detection gizmos and various other sensor-based products. The division is seeing across-the-board revenue growth, driven by energy markets, though health and safety requirements are also boosting demand for Halma's products.

Progress in the Health and Analysis division is more steady. Within this unit Water and Health Optics are performing well whilst Fluid Technology and Photonics are starting to see an improvement in demand following a slow start to the year.

The Infrastructure Sensors division is a mixed bag, but is said to be performing "resiliently". Demand from Europe is down, but the USA is picking up the slack. The reorganisation of the Elevator Safety business is proceeding to plan and will be complete by the end of the first half of Halma's financial year.

Unwin reaffirmed the group's commitment to increased investment in supporting organic growth, while the group's long-established buy-and-build strategy will continue, as the group looks to "acquire businesses which meet our strategic and financial criteria."

The shares rose 3.9p to 402.5p in early trading on the morning of the annual general meeting.

JH