Halma sees 2021 profits 5 - 10% lower as revenue trend improves
Hazard detection company Halma said it expected 2021 adjusted pre-tax profits to be 5% - 10% lower and more weighted to the second half as revenue continued to improve into the second quarter.
The company, which makes products such as fire detectors, said continued control of costs and working capital had protected profit and ensured good cash generation.
Order intake was ahead of revenue albeit marginally down on the same period last year, Halma said in a trading update covering April 1 to date.
The company, said there had been a “significant variation” in demand in its individual end-markets and geographic regions as it grappled with the Covid-19 pandemic.
“The USA and mainland Europe regions have delivered the most resilient overall trading performances. The UK and Asia Pacific have remained more challenging, although the latter has benefited from prior year acquisitions and a gradual recovery in China,” Halma said on Tuesday.
Halma said its financial position remained robust, with committed facilities of around £750m at current exchange rates. It added that it continued to see a healthy acquisition pipeline for the future and was looking for opportunities.
In a separate statement, Halma also announced that chair Paul Walker would retire from his role after eight years, and step down from the board by July 2021, to take up a new position externally.