Halma p.l.c. Half year results 2011/12 Summary of analysts - - PDF document
H A L M A Halma p.l.c. Half year results 2011/12 Summary of analysts presentation by: Andrew Williams, Chief Executive Kevin Thompson, Finance Director 22 November 2011 Halma p.l.c., Misbourne Court, Rectory Way, Amersham, Bucks HP7 0DE,
Halma p.l.c., Misbourne Court, Rectory Way, Amersham, Bucks HP7 0DE, UK. Registered in England number 40932. Tel: +44 (0)1494 721111 Fax: +44(0)1494 728032 Email: investor.relations@halma.com Web: www.halma.com
Summary of analysts’ presentation by: Andrew Williams, Chief Executive Kevin Thompson, Finance Director 22 November 2011
Page 2
Halma p.l.c., M Tel: +44 (0)14
Andrew W Executive a record f Halma has the first ha Group’s p model. We achiev £57.5m, u Revenue i record for three sect Infrastruct Safety) inc We increa 19.8% to 2 Return on half of the sectors im We increa strategic in Expansion Developm the UK/US by 13% to increase in by 10% to revenue. in complet (Kirk Key We are inc by a furthe Kevin Tho reviewed performa This is ano
further and facilities to acquisition
“Rec incre
Summ
Misbourne Cour 494 721111 Fa
Williams, H e, began w first half pe s made goo alf, reflectin roducts, ma ved record h up 17% from increased b the half yea tors (Health ture Sensor creased rev ased our Re 20.5% - ma Sales achi last financi mproved Ret ased investm nitiatives, (I n, Innovatio ment). Reve SA/Mainland
n China. R
We commit ting two acq Interlock an creasing ou er 7% this y
the Group nce.
We improved d in addition
ns.
mary of an
rt, Rectory Way x: +44(0)1494 7
alma’s Chi ith an over erformance
g the streng arkets and b half year pr m last year. by 12% to a ar of £280m and Analys rs and Indus venue and p eturn on Sal aintaining th eved in the ial year. Al turn on Sale ment in our Internationa
enue from o d Europe in uding a 29% R&D spend w epresenting tted a furthe quisitions in nd Avo Pho ur interim di year. inance Dir p’s financia g set of half d profitabilit n renewed o rowth and
nalysts’ pr
y, Amersham, B 728032 Email:
ief rview of e. s during gth of the business rofit1 of a new
sis, strial profit. les2 from e higher second l three es. 3 al agement
ncreased % was up 5% of er £22m n the US, tonics). vidend ector, al f year ty even
resentatio
ucks HP7 0DE, investor.relation
Once and p and p highe has in past 3 Organ curre busin transl transl adver a wea Sterli year. curre We a the w 18%. well h perfo and m busin
ns@halma.com
e again we d
profit1 of £57 er than the f ncreased its 36 years. nic3 revenue ncy (i.e. exc nesses acqu lation effect lation had a rse impact o aker US$ a ng, compar Organic3 p ncy was 4% chieved go
All of our t here, with p rmances fro many of our nesses.
November
d in England nu Web: www.hal
delivered re enue of £28 7.5m was £ first half of 2 s first half p e growth at cluding the uired and cu ts) was 6%. a small (app
nd stronger red with the profit growth %.
rowth was v three secto articularly g
r Industrial S
r 2011
mber 40932. ma.com
ecord reven 0m was up £8.2m (17% 2010/11. H profit in 34 o constant impact of urrency . Currency proximately
r Euro relati e first half of h at constan e growth aro very strong rs performe good tection, Wa Safety ue 12% ) alma
1%) s with ve to f last nt
at ed ter
Page 3
Halma p.l.c., M Tel: +44 (0)14
The USA destination up by 6% somewhat made, in p Analysis. good prog Mainland up 15% in delivered Analysis in benefit of the secon
with North Revenue o Europe re revenue a progress t 30% of Gr East and A strongly, u China grow
were up 4 conditions East but g The perfor years show
Summ
Misbourne Cour 494 721111 Fa
remains ou n at 28% of in the half y t from the a particular in Again Indu gress. Europe, 27 n the half ye growth with ncreasing s Medicel, wh d half of las siness in Ma hern Europe
presents 23 and we cont towards our roup revenu Australasia up 19% in th wing 29% a
% reflecting s in Africa, N good growth rmance in t ws strong p
mary of an
rt, Rectory Way x: +44(0)1494 7
r largest sa f the total an year, benef acquisitions Health and ustrial Safety % of the Gr
h Health and strongly incl hich we acq st year. Tw ainland Euro ean custome UK/USA/Ma 3% of the to tinue to mak r target of th ue by 2015. continues t he half year and now aro Our other ter g tough eco Near and M h in Latin Am he past five progress.
nalysts’ pr
y, Amersham, B 728032 Email:
ales nd was iting we have d y showed roup, was e sectors d uding the quired in
ers. ainland
ke his being Far to grow r, with
rritories
iddle merica. e half
resentatio
ucks HP7 0DE, investor.relation
We c In 20 busin (Earn
We h 2011/ Avo P paym £7m t growt the tim Our R Capit 15.5% share within acqui We s
achie return
ns@halma.com
10/11 we sp nesses and nings before n annual ba ave made t /12. Kirk Ke Photonics, b ments total £ to pay in the
me of comp ROTIC 4 (Re tal) increase %) showing eholder valu n the Group isitions. et ourselve ales2 of 18- eve growth a ns over the
November
d in England nu Web: www.hal
search hard pent £82m this delivere e interest an sis. two acquisit ey Interlock both based £15m with u e future dep nnual profit pletion is £2 eturn on Tot ed to 16.9% that we con ue through o p for organic s a target ra 22%. Our o and to main long term.
r 2011
mber 40932. ma.com
d for acquisi
ed EBIT nd tax) of £1 tions so far k Company in the US. up to a furth pending on contribution 2m. tal Invested % (2010/11: ntinue to cre
c growth an ange for Re
ntain these h itions. 11.8m in and Initial er n at d eate ments d on eturn to high
Page 4
Halma p.l.c., M Tel: +44 (0)14
Return on (2010/11: rate of pro acquired, return bus Cash flow net debt a increased acquisition dividend a existing bu Working c
Capital Em level of 69 we continu very effec Capital ex last year w number of rate was 2 forecast fo decrease Corporatio
Summ
Misbourne Cour 494 721111 Fa
Sales2 incr 19.8%) boo
adding to o sinesses. w was solid i at the start o to £56m af ns noted ab and continue usinesses. capital incre h and enabl
mployed) re 9% (2010/11 ue to use ou tively. xpenditure w with investm f businesse 23.1% (2010
was driven
mary of an
rt, Rectory Way x: +44(0)1494 7
reased to 20
the compan
n the half y
fter paying f bove, a subs ed investme ased, supp ling better s ROCE 5 (R emained at t 1:72%) sho ur operating was 31% hig ment across
0/11: 25.5% ear rate. Th by lower U s and the be
nalysts’ pr
y, Amersham, B 728032 Email:
0.5% e high nies we high
for the stantial ent in our
service to eturn on the high
g assets gher than s a ective tax %) – our he K enefit of
resentatio
ucks HP7 0DE, investor.relation
increa tax en We c pensi reduc actua defici the G We a 7% o the fu In Oc £260 replac gives mediu balan furthe Andr
majo
ns@halma.com
ased opera nvironment
ion scheme ce the sche aries’ recom t is not sign Group (2010 re increasin nce again, uture. ctober 2011 m five year cing the pre s greater ce um term an nce sheet w er value add rew William e trading p
November
d in England nu Web: www.hal
tions in Sw . pay extra ca e (£6m per a me deficit in mmendations nificant relat 0/11 y/e: £36 ng the Inter indicating o we put in p revolving c evious £165 rtainty over d supports which will allo ding acquis ms then gav performanc
r 2011
mber 40932. ma.com
itzerland, a ash into our annum) to n line with t
tive to the s 6m). im dividend
place a new credit facility 5m facility. r funding in
itions. ve an overv ce of all thr lower r he 5m size of d by nce in w y, This the ake view ree
Page 5
Halma p.l.c., M Tel: +44 (0)14
Health an by 17% to £28m. Re 21.3% to 2 acquisition All four su the Far Ea Water ma significant Health Op
contributio surgical de March 201 Adverse fa results in
Fluid Tech consolidat share mov OEM play systems. have a mo resume gr customer customer into sales. businesse US due to medical an repeating
Summ
Misbourne Cour 494 721111 Fa
nd Analysis
eturn on Sa 23.1%, prim ns made du ub-sectors in ast and Aus nagement b t market sha ptics busine rowth to add
evice busin 11. actors affec Health and evenue and
tion and sig vements am yers in medi I expect Flu
rowth in 201 demand pic
. As expect es saw redu
nd energy c this year.
mary of an
rt, Rectory Way x: +44(0)1494 7
s increased d profit by 2 les improve marily as a r uring the pa ncreased re stralasia wh business ga are in the U sses achiev d to the exc dicel, the op ess we acq cting our firs Analysis in profit declin his resulted gnificant ma mongst the m cal diagnos uid Technol second half 12 as existin cks up and es are conv ted, our Wa uced revenu contracts w customers n
nalysts’ pr
y, Amersham, B 728032 Email:
revenue 26% to ed from result of st year. evenue in ilst our ained
ved good cellent phthalmic quired in st half cluded ne in from rket major stic logy to and to ng new verted ater UV ue in the with not
resentatio
ucks HP7 0DE, investor.relation
All fou profit a 26% above declin the ot Wate growt There the st and A
ns@halma.com
ur sub-sect . Although % increase e, this inclu ne at consta ther three s r and Photo th. e was growt trongest org Australasia.
November
d in England nu Web: www.hal
Fluid Techn in revenue, ded organic ant currency sub-sectors
th in all maj ganic growt
r 2011
mber 40932. ma.com
ed revenue nology repo as detailed c revenue y of (10)%. (Health Op eved organi jor regions w h in the Far e and
d All ptics, c with r East
Page 6
Halma p.l.c., M Tel: +44 (0)14
Infrastruc by 5% to £ £19.4m, m solid perfo conditions from 18.7% The UK an demand c Health and sub-secto East and A acquired a based in B integration There wer Our Eleva performed we have m structural the benefi through 20 business s Africa due Our Fire b 10% with
Summ
Misbourne Cour 494 721111 Fa
cture Senso £101m and maintaining
% to 19.2% nd Europe p continuing to d Safety reg rs increase Australasia a Fire Detec Beijing, Chin n is progres re two main ator busines d poorly. Si made mana changes an t of these a
saw reduce e to custome business inc a strong co
mary of an
rt, Rectory Way x: +44(0)1494 7
profit up by its track rec uring tough n Sales imp %. performed w
d revenue i . Last year ction busine na and the ssing well. n headwind sses in the U nce the per gement and nd I expect actions as w Security Sen ed demand er consolida creased rev
nalysts’ pr
y, Amersham, B 728032 Email:
e was up y 8% to cord of h market proved well with pinned by All four n the Far , we ess factors. US riod end, d to see we move nsor in South ation. venue by rom new
resentatio
ucks HP7 0DE, investor.relation
produ increa growt gover progr was t reven the re menti All the increa Austr from impor econo achie rates Infras Indus perfo and p Sales highe
ns@halma.com
ucts and Ch ased revenu th in China rnment’s hig
the only Hal nue during t educed dem ioned above e major dev ased revenu ralasia up b all sub-sect rtant to note
eved healthy demonstra structure Se strial Safet rmance with profit up 20% s increased est of all thre
November
d in England nu Web: www.hal
ue by 7% d due to dela gh speed tr ur Security S lma sub-sec the first half mand from S e. veloped reg ue with the y 18%, inclu
e that even
y mid-single ting the res ensor busine ty achieved h revenue u % to £13.6m from 22.9% ee Halma s
r 2011
mber 40932. ma.com
matic Doors espite redu ays in the rain investm Sensor busi ctor with low f – mainly d South Africa gions saw Far East an uding growt ver, it is in this toug and Europe e digit growt silience of o esses. a very stro up 17% to £
% to 23.4%, sectors. uced ment iness wer ue to a nd th h e still th ur
£58m
the
Page 7
Halma p.l.c., M Tel: +44 (0)14
We saw a Kirk Key In May, whils from custo industries four sub-s which refle strong He driving de One nega the politica North Afric delaying s All four su revenue g all major g particularly UK and U
Summ
Misbourne Cour 494 721111 Fa
strong con nterlock bus st there was
– especiall sectors grew ected the be alth and Sa mand for ou tive factor d al and econ ca and the some projec ub-sectors a growth and t geographic y strong pe S.
mary of an
rt, Rectory Way x: +44(0)1494 7
ntribution fro siness acqu s increased e oil and ga y in the UK w revenue in enefits of ha afety regulat ur products during the h nomic situat Middle Eas cts. achieved do there was g regions, wit rformances
nalysts’ pr
y, Amersham, B 728032 Email:
uired in revenue as
n the UK aving tions . half, was tion in t
growth in th s in the
resentatio
ucks HP7 0DE, investor.relation
Halm acqu two U year w busin busin good are st busin balan busin We a Ohio trapp major to ado this s world
ns@halma.com
a committe isitions, co US based bu we spent £8
ness to add pipeline of till quite hig
nce in the G nesses and cquired Kir for $14.5m ed key inte r US compe
sub-sector w dwide manu
November
d in England nu Web: www.hal
d a further
usinesses. 82m acquir e continue to to the Grou
h for good q ant to main Group betwe Health and k Key Interl in May 201 rlock produ
dinated glob which levera facturing ba
r 2011
mber 40932. ma.com
£22m on he purchase Last financ ing seven
up and we h
quality tain a good een our Safe Analysis.
cts and wer has enabled bal strategy ages our ase. e of cial r new have a
ety in make re our d us y for
Page 8
Halma p.l.c., M Tel: +44 (0)14
We acquir near Phila potential $
manufactu miniaturise customers customers to gain co embeddin within thei In summa strong per and is in a We are se by new inc which are continue t three pilla (Internatio Managem
second ha
Summ
Misbourne Cour 494 721111 Fa
red Avo Pho adelphia for $11m earn-o Avo has sign uring know- ed photonic s, including s within Hal mpetitive ad g miniaturis ir product. ry, Halma h rformance d an excellent eeking acqu creased fina in place un
rs of strateg
ment Develo
alf.
mary of an
rt, Rectory Way x: +44(0)1494 7
$9m with a
nificant des
potential ne ma, the opp dvantage b sed electro- has delivere during the fi t financial p uisitions, sup ancing facil ntil 2016. W investment gic growth sion, Innova pment). W her progres
nalysts’ pr
y, Amersham, B 728032 Email:
, based a
ign and field of ffer OEM ew OEM portunity y
ed a rst half
pported ities We will in our ation and e remain ss in the
resentatio
ucks HP7 0DE, investor.relation
1 Befor
and ac million)
2 Retu
from percen
3 Orga
and pr acquis financi their c the da
4 Retu
as pro before acquis percen net r amorti goodw
5 Retu
amorti acquis employ * see t 2011 f CAUT this s Novem forwar statem The a results looking includi revised
ns@halma.com
re amortisatio cquisition cost ). urn on Sales is continuing ntage of reven anic growth me rofit from con sitions and dis ial year has
te of acquisitio urn on Total In
amortisation sition costs, b ntage of total retirement b isation of acqu will.* urn on Capital ting profit fro isation of a sition costs yed.* the Half year for more detail TIONARY NO summary is mber 2011. rd-looking stat ments involve actual results s that are antic g statements. ing any forw d after publica
November
d in England nu Web: www.hal
n of acquired ts of £6.2 millio s defined as p
nue from contin easures the ch ntinuing opera sposals during been equalis ased on their r
nvested Capita year from co
but after taxat shareholders benefit
uired intangibl l Employed (R
acquired inta as a perc report publish ls.
believed to This docu tements that a both known
cipated or imp . The conte ward-looking ation.
r 2011
mber 40932. ma.com
intangible ass
profit1 before t expressed nuing operatio hange in the r
g the current sed by adjust revenue and p l. al (ROTIC) is
ntangible asse tion; expresse ’ funds, addin gations, cum le assets and ROCE) is defi g operations ngible asset centage
hed on 22 No rmation conta be correct ument may are not factual and unknown l.c. may diffe plied by any fo ent of presen statements, sets £2.0 taxation as a
revenue effect of
ting for profit at defined erations ets and ed as a ng back mulative historic fined as before ts and capital vember ained in at 22 include
n risks. er from forward- ntations, is not