Halma's 2019 Financial Year: A Year of Record Revenue, Profit, and Growth

Halma has released its annual report for 2019, highlighting a successful year marked by record revenue and profit. The company achieved its 40th consecutive year of dividend per share growth of 5% or more, demonstrating its commitment to delivering value to shareholders.

The financial year got off to a strong start, with order intake exceeding both revenue and order intake for the comparable period last year. This momentum has continued into the new financial year, with order intake remaining ahead of schedule.

Halma's success can be attributed to its focused strategy, which centers around niches in diverse markets with resilient long-term growth drivers. This approach provides opportunities for both organic and acquisition-driven growth. The company's strong balance sheet has enabled it to make strategic investments, further solidifying its position.

One of the key highlights of the year was the completion of four acquisitions and two small asset purchases. These deals have strengthened Halma's position in its chosen markets and provided a platform for future growth.

In addition to its financial performance, Halma has also made significant progress on its sustainability initiatives. The company has released an Environment Commitment Statement and Supplier Statement, outlining its approach to sustainability and the progress it has made.

Halma's financial results demonstrate a strong performance across all four sectors, with organic constant currency revenue growth of 10% for the second consecutive year. Adjusted profit before tax grew by 11%, driven by a combination of volume growth and margin expansion.

The company's profitability was also boosted by its strong cash generation, which enabled it to maintain a robust balance sheet. Cash conversion stood at 88%, allowing Halma to invest in both organic growth initiatives and acquisitions.

In his statement, Group Chief Executive Indrew Williams highlighted the company's focus on innovation, saying: 'We expect to make good progress in the year ahead.'

The financial results also showed an increase in research and development expenditure, which rose by 11% to represent 5.2% of revenue. This investment has driven growth and is expected to continue to do so.

Halma's performance was strongest in the USA and UK, with good growth in Mainland Europe and a solid performance in Asia Pacific. All four sectors reported organic constant currency revenue growth, with three out of four delivering double-digit increases.

The company's financial performance is reflected in its dividend policy, which saw a proposed final dividend up 7%, marking the 40th consecutive year of dividend per share increases of 5% or more.

Overall, Halma's annual report for 2019 highlights a successful year of growth, innovation, and sustainability. The company's strong financial performance, combined with its commitment to delivering value to shareholders, makes it an attractive investment opportunity.

Halma annual report 2019