AGM Trading Update

RNS Number : 7939E

Halma PLC

21 July 2016

 

Halma plc

AGM Trading Update 21 July 2016

Halma, the leading safety, health and environmental technology group is holding its 122nd AGM later today. The following comments on trading relate to the first quarter of Halma's financial year which ended on 2 July 2016.

Halma has continued to make good progress in line with the Board's expectations. Revenue was ahead of the first quarter of the prior year and included good organic constant currency growth on a weekly average basis (see Note 2). Order intake was ahead of revenue and also above order intake in the first quarter of the prior year.

There was strong revenue growth in the Infrastructure Safety and Medical sectors with steady progress in the Environmental & Analysis sector. As expected there was lower revenue in Process Safety; based on improving order intake trends and continued diversification, the sector is better positioned to improve its performance as the year progresses.

There was revenue growth in all of our major geographic regions, with the highest rates of growth in the USA and Mainland Europe.

At the end of June, Sterling weakened relative to many currencies, including the US Dollar and Euro. If current exchange rates continue throughout the rest of the current financial year, the currency translation impact on the Group's results is expected to be positive.  Based on the current mix of currency denominated revenue and profit, a 1% movement in the US Dollar changes full year revenue by £4.3m and profit by £0.9m.  Similarly, a 1% movement in the Euro changes full year revenue by £1.1m and profit by £0.2m.  The weighted average exchange rates relative to Sterling used to translate revenue and profit for the year ended 2 April 2016 were: US Dollar 1.51, Euro 1.37.

The Board remains confident that the resilient and global long-term growth drivers in our chosen markets will continue to underpin Halma's growth. Our focus on safety, health and environmental technologies together with our agile organisational model, which encourages local decision making within each subsidiary company, ensures that our business is able to adapt quickly to changing market conditions. We continue to identify potential acquisition opportunities that meet our strategic and financial criteria.

In July 2016, Paul Simmons was promoted to the Halma Executive Board as Sector Chief Executive of our Infrastructure Safety sector, following Nigel Trodd's decision to retire from the Group in mid-2017. Paul joined Halma as a subsidiary Managing Director in 2010 and was promoted to Sector Vice President of Infrastructure Safety in 2014. Since then, he has chaired most of the Sector businesses and played a significant role in the acquisition of both Advanced Electronics in 2014 and Firetrace in 2015. Nigel will continue to ensure a smooth management transition process and actively support the Sector's M&A activities.

The Group's financial position remains strong.

The half yearly results for the period ending 1 October 2016 are expected to be released on 22 November 2016.

For further information, please contact:

Halma plc                                                         Tel: [phone]

Andrew Williams, Chief Executive

Kevin Thompson, Finance Director

MHP Communications                                          Tel: [phone]

Rachel Hirst/Andrew Jaques

NOTE TO EDITORS
1.	Halma develops and markets products used worldwide to protect life and improve the quality of life. The Group comprises four business sectors:

Pr Process Safety	Products which protect assets and people at work.
InfInfrastructure Safety	Products which detect hazards to protect assets and people in public spaces and commercial buildings.
M Medical	Products used to improve personal and public health.
En Environmental & &  Analysis	Products and technologies for analysis in safety, life sciences and environmental markets.

		The key characteristics of Halma's businesses are that they are based on specialist technology and application knowledge, offering strong growth potential. Many Group businesses are market leaders in their specialist field.
2.		The first quarter's trading in the current 2016/17 financial year included 13 weeks from 3 April 2016 to 2 July 2016. The first quarter's trading in the 2015/16 financial year included 14 weeks from 29 March 2015 to 4 July 2015.
3.		High-resolution photos of Halma senior management, including Chief Executive Andrew Williams, and images illustrating Halma business activities can be downloaded from its website: www.halma.com. Click on the 'News & Media' link, then 'Image Library'. Photo queries: David Waller [phone], e-mail: [e-mail].
	4.	This Trading Update has been prepared solely to provide additional information to the shareholders of Halma plc. 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.
	5.	A copy of this announcement, together with other information about Halma, may be viewed on its website: www.halma.com

 

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