Final results 2015/16 Andrew Williams – Chief Executive Kevin Thompson – Finance Director Halma Final results – June 2016
Summary 2015/16 Revenue Profit ROS Growth & +11% +8% 20.6% high returns £808m £166m (LY: 21.2%) Acquisitions R&D spend ROW revenue Continued £193m +19% +7% strategic investment spend £41m £211m Cash flow ROTIC Dividend Good cash 86% 15.6% +7% performance of adjusted profit (LY: 16.3%) 12.81p Halma Final results – June 2016
Financial Review Halma Final results – June 2016
Record results Revenue Profit* £m £m 180 £166m 900 £808m 160 800 140 700 120 600 100 500 80 400 60 300 40 200 20 100 0 0 11/12 15/16 11/12 15/16 * Profit before amortisation of acquired intangibles, acquisition items and profit or loss on disposal of operations Halma Final results – June 2016
Revenue growth FY 2015/16 % growth Organic constant currency growth 6% Currency 2% Acquisitions 3% Headline growth 11% Halma Final results – June 2016
Revenue growth FY 2015/16 Organic: Constant £m Total Currency H1 380 11% 7% H2 428 11% 4% Total 808 11% 6% Halma Final results – June 2016
Revenue by destination Revenue and revenue growth, 2015/16 UK USA 5% 18% 22% 9% 34% 21% 15% £808m 22% Europe 28% 7% 27% 11% 15% Other Outside US/Europe/UK 7% Asia Pacific = 7% growth 7% Halma Final results – June 2016
Revenue by destination: organic constant currency Revenue and revenue growth, 2015/16 UK USA 4% 9% 9% 21% 15% Europe 28% 7% 27% Other (1)% Asia Pacific 3% Halma Final results – June 2016
Profit* growth FY 2015/16 % growth Organic constant currency growth 3% Currency 2% Acquisitions 3% Headline growth 8% Return on sales 20.6% (2015: 21.2%) * Profit before amortisation of acquired intangibles, acquisition items and profit or loss on disposal of operations Halma Final results – June 2016
Profit* growth Organic: Constant £m Total Currency H1 74.7 8% 4% H2 91.3 8% 3% Total 166.0 8% 3% * Profit before amortisation of acquired intangibles, acquisition items and profit or loss on disposal of operations Halma Final results – June 2016
Currency Translation impact in 15/16 H1 net benefit: revenue 3%; profit 2% Full year net benefit: revenue and profit 2% At recent Fx rates 16/17 profit impact*:- H1: ~ 3% Benefit FY: ~ 2% Benefit Impact varying by sector More information in Appendix * Based on 15/16 results Halma Final results – June 2016
Cash flow 2015/16 Working capital: outflow £6m (2015: £6m) £100m Effective tax rate: 21.9% (2015:23.2%) £75m Working £50m Capex > Pensions: Deficit £52m (2015: £67m) capital Depn £25m Tax Pensions 0 £(25)m £(50)m £(75)m £(100)m Debt b/f Profit £(125)m Acquisitions: Mar 15 £193m spend £(150)m plus £10m earn-outs £(175)m Disposal Dividend Dividend: 7% increase Acquisitions £(200)m Other Debt: £(225)m incl. FX (net) £246.7m net debt (2015: £100.9m net debt) £(250)m Debt c/f March 16 Halma Final results – June 2016
Funding USPP over 5,7,10 years $250m Weighted average interest rate of 2.5% £360m bank facility – 5 years to 2018 Comfortable with: Net debt ~ 1.25x EBITDA (March 16: 1.27x) Temporarily higher gearing to fund acquisitions Strong balance sheet with significant capacity
Financial KPI Summary 2015/16 Target Achieved Organic revenue growth* > 5% 6% Organic profit growth* > 5% 3% Acquisition profit growth ** > 5% 8% Revenue growth outside UK/Europe/USA > 10% 7% Return on Sales 18% - 22% 20.6% R&D investment (% of revenue) > 4% 5.1% Cash conversion > 85% 86% Return on Total Invested Capital >12% 15.6% * at constant currency ** annualised profit of acquisitions made in the year (net of finance cost) as % of prior year profit Halma Final results – June 2016
Trading Review Halma Final results – June 2016
Sector performances Revenue Profit* Process Process Infrastructure Infrastructure Safety Safety Safety Safety +13% (2)% (12)% +12% 19% 22% 33% 31% 46% £182m £808m 23% 19% 28% 25% Medical Medical Environmental +17% +14% Environmental & Analysis & Analysis +15% +26% *Profit before amortisation of acquired intangible assets, acquisition items and profit or loss on disposal of operations and excluding finance and central administration costs Halma Final results – June 2016
Sector performances: Organic constant currency growth Revenue Profit* Process Process Infrastructure Infrastructure Safety Safety Safety Safety +6% (5)% (15)% +5% 46% Medical Medical Environmental +10% +9% Environmental & Analysis & Analysis +11% +21% *Profit before amortisation of acquired intangible assets, acquisition items and profit or loss on disposal of operations and excluding finance and central administration costs Halma Final results – June 2016
Infrastructure Safety : Trading performance Revenue: +13% Profit: +12% Organic ccy: +6% Organic ccy: +5% £m £m 300 60 £56m £265m 250 50 200 40 150 30 100 20 50 10 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Return on Sales: 21.2% Halma Final results – June 2016
Infrastructure Safety : Revenue by destination % of sector & % growth 15% USA USA UK UK +14% +39% +4% +4% 23% 27% As Organic Other Other reported 9% ccy +17% +37% 13% 28% Europe Europe Asia Pacific +5% Asia Pacific +6% +1% (4)%
Infrastructure Safety : Revenue by end market % of sector 5% Buildings Others 95% Halma Final results – June 2015
Medical : Trading performance Revenue: +17% Profit: +14% Organic ccy: +10% Organic ccy: +9% £m £m £199m 200 60 £52m 50 150 40 100 30 20 50 10 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Return on Sales: 26.0% Halma Final results – June 2016
Medical : Revenue by destination % of sector & % growth UK UK +7% +8% USA USA 6% +8% Europe +23% Europe +17% +19% 22% 48% As Organic reported ccy 15% Asia Asia Pacific Pacific 9% +16% +20% Other Other (2)% (3)%
Medical : Revenue by end market % of sector 1% 1% 6% Health/Medical Science/Env 92% Process Others Halma Final results – June 2016
Environmental & Analysis : Trading performance Revenue: +15% Profit: +26% Organic ccy: +11% Organic ccy: +21% £m £m £189m 200 40 £34.5m 150 30 100 20 50 10 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Return on Sales: 18.3% Halma Final results – June 2016
Environmental & Analysis : Revenue by destination % of sector & % growth UK UK USA USA +6% +5% +21% +14% 17% As Organic 41% 15% reported ccy Europe Europe +3% +6% 19% 8% Asia Pacific Other Other Asia Pacific +11% +28% +26% +15%
Environmental & Analysis : Revenue by end market % of sector 1% Buildings 2% 12% Utilities 26% 7% Health/Medical Science/Env Process 10% Energy/Res 42% Others Halma Final results – June 2016
Process Safety : Trading performance Revenue: (2)% Profit: (12)% £m £m Organic ccy: (5)% Organic ccy: (15)% 200 50 £40m £155m 40 150 30 100 20 50 10 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Return on Sales: 25.4% Halma Final results – June 2016
Process Safety : Revenue by destination % of sector & % growth USA USA UK UK (2)% +4% +4% +4% 19% 27% As Organic reported ccy 22% Other Other 15% Europe Europe (16)% (24)% 17% +2% +2% Asia Pacific Asia Pacific (6)% (9)%
Process Safety : Revenue by end market % of sector Buildings 7% 7% Utilities 16% Science/Env 1% 41% Process 28% Energy/Res Others Halma Final results – June 2016
Strategy update M&A Innovation Talent Development International Expansion Halma Final results – June 2016
Four acquisitions VAS Firetrace Visiometrics CenTrak Halma Final results – June 2016
CenTrak Film The CenTrak acquisition video can be viewed on the Halma website at: http://www.halma.com/news/video/acquisitions.aspx Halma Final results – June 2016
Innovation: R&D investment 45 9 40 8 35 7 Spend £m 30 6 % of rev 25 5 20 4 15 3 10 2 5 1 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 R&D Spend R&D Spend as % of revenue Halma Final results – June 2016
Innovation: 2016 Award winners HWM-Water, PermaNET+ Halma Final results – June 2016
Talent: New HPD Programmes Developing ability at MD and SVP level to innovate across all aspects of the business Focusing on the leadership skills needed at board level in our operating companies. Personal development, enhancing self- awareness and teamwork skills for managerial roles. Our graduate programme recruits and develops the next generation of leaders and technical specialists. Halma Final results – June 2016
International Expansion: growth in India 12 10 Halma India Hub Revenue £m 8 Leadership change Relocation to Bengaluru 6 Engineering talent 4 Regional expansion 2 0 09 10 11 12 13 14 15 16 year Halma Final results – June 2016
Recommend
More recommend
