Halma p.l.c. Half year report 2007/08
The Board continues to remain confident in the prospects for the full year.
For the first half, revenue from continuing operations increased 12% to £187.9 million (2006/07: £167.5 million) and adjusted* profit before tax from continuing operations increased 10% to £33.6 million (2006/07: £30.6 million). Statutory profit before tax increased by 8% to £31.6 million. Organic revenue growth** was 8% and 11% at constant currency. Organic profit growth** was 5%, 8% at constant currency. Return on total invested capital** was 13.9% (2006/07: 13.3%).
We continue to invest strongly in products, people and market development. An example of the latter is a modest acquisition in China to manufacture low cost gas detectors to service the Asia Pacific market and to provide components for elsewhere. On 1 October 2007 we acquired Sonar Research & Development Limited which manufactures solid-state sonars for subsea applications which will complement the product range of Tritech International, our existing subsea asset monitoring company.
The Board declares an interim dividend of 3 pence per share, an increase of 5% which will be paid on 6 February 2008 to shareholders on the register at 4 January 2008. This increase reflects the Board's confidence in Halma's long-term growth prospects whilst continuing to improve our dividend cover.
Across the Group, progress has been solid. We are seeing good management development and it is pleasing to see an increase in the number of internal promotions to subsidiary Boards throughout the Group.
We have a strengthening list of possible acquisition prospects and so far the current liquidity squeeze does not seem to have reduced the potential M&A activity within our chosen markets.
The Board continues to remain confident in the prospects for the full year.
Geoff Unwin Chairman
* Before amortisation of acquired intangible assets.
** See Financial highlights.
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