Halma plc Announces Record Financial Performance in its Annual Report for 2020

In its recently released annual report, Halma plc has announced a record financial performance in the past year. Despite the challenges posed by the COVID-19 pandemic, the company has delivered a resilient Q1 FY2021 trading performance, with revenue 4% lower than the same period last year.

According to Group Chief Executive, Indrew Williams, 'Resilient Q1 FY2021 trading: revenue 4% lower than in Q1 FY2020 reflecting the 'non-discretionary' demand for many Halma products, good cash generation, order intake ahead of revenue and the same period last year.'

One of the highlights of the company's performance is its strong dividend policy. The total dividend for the year was up 5%, marking the 41st consecutive year of dividend per share increases of 5% or more.

Halma has also demonstrated its commitment to innovation, with R&D expenditure increasing by 14%. This represents 5.4% of revenue and reflects the company's continued investment in research and development while maintaining high returns on sales (ROS) and return on invested capital (ROIC).

The company's growth strategy has also been successful, with strong contributions from acquisitions adding 5% to revenue and adjusted profit before tax growth. Ten acquisitions were completed during the year, and Halma has a healthy pipeline of potential future deals.

In terms of geographic performance, revenue grew in all major regions on a reported and organic constant currency basis. All sectors delivered revenue growth, with three out of four sectors growing adjusted operating profit.

The company's financial position remains robust, with cash conversion of 97% and a gearing (net debt to EBITDA) ratio at the year-end of 1.1 times. Halma has also maintained its commitment to sustainability, publishing an Environment Commitment Statement and Supplier Statement that outlines its approach and progress in this area.

In conclusion, Halma plc's annual report for 2020 highlights a company that is well-positioned for long-term growth. Its record financial performance, strong dividend policy, and commitment to innovation and sustainability all contribute to a positive outlook for the future.

Halma plc annual report 2020