23 September 2020
Halma today releases its scheduled trading update, for the period from 1 April 2020 to date, and confirmation of a management appointment to its Executive Board.
Halma has delivered a resilient performance during the period in line with the Board's expectations and, despite the operational challenges arising from the COVID-19 pandemic, the Group has continued to benefit from the long-term growth drivers in its markets, the breadth of its portfolio and the agility of its business model.
At the end of the first quarter we reported that revenue was 13% lower than last year on an organic constant currency basis. Since then, the Group's revenue trends have gradually improved, while continued control of costs and working capital have protected profit and ensured good cash generation. Order intake was ahead of revenue albeit marginally down on the same period last year. Given the evolving and uncertain situation in our major markets, the Board continues to expect Adjusted profit before tax (note 1) for FY2021 to be 5%-10% below FY2020 and more weighted to the second half than in previous years.
There has continued to be a significant variation in demand in individual end-markets and geographic regions. 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.
The Environmental & Analysis sector has performed well, and the Medical sector has started to see a modest improvement in demand for products related to elective surgical and diagnostic procedures. The Safety sectors were impacted by limitations of physical access to sites in the first quarter, however this has steadily improved during the second quarter to date.
The currency translation effect on the Group's results in the first half of the year is expected to be broadly neutral.
The Group's financial position remains robust, with committed facilities totalling approximately £750 million at current exchange rates. The earliest maturity in these facilities is for £73 million in January 2021, with the remaining maturities from 2023 onwards. Our sector M&A teams have been actively cultivating opportunities, and the Group continues to see a healthy acquisition pipeline for the future.
The results for the half year ending 30 September 2020 will be released on 19 November 2020.
New Group General Counsel and Executive Board member
On 14 September 2020, Funmi Adegoke joined Halma as our Group General Counsel. Funmi will continue our work to maintain a strong legal and compliance capability to support the Group's growth, including oversight of our Company Secretariat activities.
Before joining Halma, Funmi spent nine years at BP in various roles, most recently as Managing Counsel for BP's Downstream Commercial Development and Transformation business. Prior to BP, Funmi held senior legal and commercial roles with Bombardier. Funmi is a qualified Barrister and holds a law degree from the University of Cambridge. She is a Non-Executive Director of Melrose Industries plc.
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Adjusted profit before tax is before amortisation and impairment of acquired intangible assets, acquisition items, restructuring costs and profit or loss on disposal of businesses.
This trading update is based upon current management accounts information. Forward-looking statements have been made by the Directors in good faith using information available up until the date that they approved this statement. Forward-looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks, including the effects of the current COVID-19 outbreak.