Halma shares were creeping higher on Thursday after the life-saving technology group said group adjusted profit before tax will be in line with market expectations.
In 2022 FY, Halma’s adjusted profit before tax grew to £316.2m and this years expectations of £353.1m to £369.6m would represent the 20th year of growth.
The company has achieved another year of profit growth through acquisitions and building organic growth momentum across all geographies.
“Today’s update was yet another reassuring statement from Halma who is on track to deliver its 20th year in a row of record profits. It’s also been a record year for investment in M&A, committing to a deal spend of up to £264m. We think the challenging macro environment will present further opportunities for Halma to pick up complementary businesses at attractive prices,” said Derren Nathan, Head of Equity Research at Hargreaves Lansdown.
“Halma continues to prove the resilience of its sectors, and with order intake ahead of last year, next year is also beginning to shape up nicely.”
Nathan continued to explain how the recent selloff has tarred all companies with the same brush and suggested Halma’s declines were unjustified. He did, however, caution that the PE ratio was a little rich.
“The shares have not escaped the recent sell off in the FTSE 100, and that’s perhaps a little unjustified. Nevertheless, a mid-twenties earnings multiple is hardly bargain basement territory. Halma has earnt it’s market admiration through relentless delivery of earnings growth. With that in mind, it’s fair to say that Marc Ronchetti has some big shoes to fill when he takes the helm next month,” said Derren Nathan.