Halma plc is a global group of life-saving technology companies, focused on growing a safer, cleaner, healthier future for everyone, every day. The company is listed on the LSE main market, is a constituent of the FTSE100 and has a market cap of £8.5bn. Full year results to 31st March 2023 were released on 15th June.

We were delighted to welcome Charles King, Head of Investor Relations, and Melanie Horton, Deputy Head of Investor Relations to a webinar for private investors to talk about these results and how the company is performing in the current environment. A recording of the webinar is available here.

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Full year results to 31 March 2023 were another record performance for Halma. The company combined continued strong growth and high returns with record levels of investment to report record profits for the 20th year. Revenues were up 21% to £1.85bn and profits grew 14% to £361m. Over £500m was invested in the business and this reflects the scale of opportunities available in its markets. This investment was both organic investment, comprising R&D and in personnel and inorganic investment through M&A. Almost £400m was spent on acquisitions during the year. The balance sheet remains strong and the company ended the year with net debt to ebitda at 1.4x, a level described as modest. Cash generation improved during the year and was back at their target level of 90% in H2. Growth is being delivered with high ROIC of 14.8%, a touch below the previous year. All of this supported a 7% increase in the dividend and this is the 44th year Halma has increased its dividend by 5% or more, another strong signal of their confidence in the future. The company has made a good start to the current year and they are well placed for further growth in 2024 and beyond.

Looking at the performance in more detail across sectors of Safety, Environmental & Analysis and Healthcare, all three sectors delivered good organic revenue growth reflecting the strong levels of customer demand. Environmental & Analysis grew by 9.1% with environmental monitoring leading the way and good support from gas detection, optical analysis and water analysis. Healthcare grew 9.8% with all regions strong excluding Asia Pacific which was impacted by Covid lockdown measures across China. Looking forward there is a strong order book and order back-log. Safety grew…

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