Interim Management Statement

RNS Number : 1844N

Halma PLC

12 February 2009

 



Halma p.l.c. Interim Management Statement 12 February 2009 Halma, the leading safety, health and sensor technology group today makes an Interim Management Statement prior to its financial year end on 28 March 2009. This Interim Management Statement covers the period from 28 September 2008 to date.  Based on current trading and forecasts, the Board expects profit (before amortisation of acquired intangibles) for the year to 28 March 2009 to be within the range of market expectations, towards the lower end. The Company believes the current range of market expectations is £79.0 million to £84.5 million (2007/08 actual profit before amortisation of acquired intangibles: £72.8 million). Of our three reporting sectors, Infrastructure Sensors and Industrial Safety are expected to increase revenue and profit for the full year. As reported at the half year, whilst achieving revenue growth, the underlying profitability of Health & Analysis has been weaker than the other two sectors. Revenue in our Water business is down against last year, mainly due to reduced investment by UK water utilities outweighing continued growth in export markets. Whilst market conditions in our Photonics business are broadly stable, operational costs (including higher R&D investment) have increased faster than revenue and reduced profitability during the second half. Action has already been taken to reduce overall operating costs. The successful integration within the Group of our two recent acquisitions, Fiberguide and Oerlikon Golden, is proceeding to plan. During the 4 month period from October 2008 to January 2009, Group revenue was 15% ahead of the same period last year. As reported at the half year we are benefitting from favourable exchange rate movements. If current exchange rates continue until the year end we expect a positive translation impact on revenue and profit of approximately 8% for the full year. Order intake has continued the slowing trend indicated in our interim results announcement on 27 November 2008 and cumulatively for the period October 2008 to January 2009, was 5% ahead of last year. Whilst order intake matched revenue in absolute terms, our businesses remain alert to changes in their specific market conditions. Where necessary, actions have been taken to reduce costs aimed at ensuring returns are maintained within the group's target range. There have been no material events or transactions impacting the Group's financial position, which remains strong. We continue to look for acquisition opportunities in our existing markets, which meet our demanding requirements. The Group holds a 5-year £165 million syndicated revolving credit facility which commenced in February 2008, providing the necessary financial headroom to support our continuing development. Since most of the Group's debt is held in US Dollars and Euros, the Sterling reported level of net debt at the year end is expected to increase due to the translational impact of currency exchange rate movements. The Group continues to operate well within its banking covenants.   The results for the financial year ending 28 March 2009 are expected to be released on 16 June 2009. For further information, please contact:

Halma p.l.c. Andrew Williams, Chief Executive Kevin Thompson, Finance Director	Tel: [phone]
Hogarth Partnership Limited Rachel Hirst/Andrew Jaques Notes:	Tel: [phone]

1.

This Interim Management Statement has been prepared solely to provide additional information to the shareholders of Halma p.l.c., in order to meet the requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied on by any other party, for other purposes. Forward-looking statements have been made by the Directors in good faith using information available up until the date that they approved this statement. Forward-looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks.

2.

A copy of this announcement, together with other information about Halma, may be viewed on its website: www.halma.com

 

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