Halma expects 'sequential improvement' in H2 revenues

Safety equipment company Halma said on Wednesday that it had made "good progress" so far in the second half of its trading year, with the group continuing to benefit from its "diverse portfolio" and "resilient", long-term growth drivers.

Halma stated its strategic qualities, as well the essential nature of many of its products and services, had underpinned "increasing demand" across the group and said it now expects to deliver a "sequential improvement" in revenue during the second half and "substantial revenue growth" in the year as a whole, while full-year adjusted pre-tax profits were seen in line with market consensus estimates.

The FTSE 100-listed group noted that it increased its strategic investment in talent, new product development, information technology, and cybersecurity, in order to support its growth over the longer term, and also saw a return of discretionary overhead costs to support its current "strong growth". As a result, its full-year return on sales was anticipated to be "more in line with historical levels".

Halma added that it was in "a strong financial position", which enabled continued investment, both organically and by acquisition, to support continued growth. Cash generation was said to be "solid", and reflected its strong growth in the period and investments aimed at maintaining resilience in its supply chain.