Halma p.l.c. Preliminary results 2010/11 Summary of analysts - - PDF document
H A L M A Halma p.l.c. Preliminary results 2010/11 Summary of analysts presentation by: Andrew Williams, Chief Executive Kevin Thompson, Finance Director 21 June 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 21 June 2011
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Halma p.l.c., M Tel: +44 (0)14
Andrew W Executive putting th longer ter by giving performa Halma has particularly strategic in higher gro
This strate Developm Innovation focus for t as we see term goal years. During 20 strong fina increasing revenue u Return on (2009/10: strong pro initiatives. Our invest 20% to £2 revenue. traditional USA incre We compl spending cash gene companie propose a 7% to give the year.
“Rec strat
Summ
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Williams, H e, opened t his year’s r rm strategi the highlig nce. s had an ou y exciting to nvestment i
ess. egic investm ment, Interna n and M&A the Group in ek to accom
10/11 we a ancial perfo g 21% to £1 up by 13% to Sales2 incr 18.8%) wh
tment in R& 26 million re Revenue fr markets in eased by 26 leted seven a total of £8 eration from s ensured t an increase e a total of 9
mary of an
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alma’s Chi the presen results into ic context a ghts of our utstanding y
is delivering so higher ret ment in Man ational Expa will remain n the comin mplish our m g our profit e chieved a v
04.6 million
reased to 20 ilst we also ur key strat &D increase epresenting rom outside UK/ Europ 6% to £124 n acquisition 82 million a m our operat that we are to our divid 9.10p per s
nalysts’ pr
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ief tation by
and also r
g not only turns in nagement ansion, a core ng year medium every 5 very h profit1 n and ion. 0.2% made egic ed by 5% of e of our e and million. ns nd good ting able to ded by hare for
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Kevin revie 2010/ This y perfo
Profit was u reven 459.1 Acqu transl growt
year. We g
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n Thompso ewed the fin /11. year’s resul rmance with ceeding ou t before tax1 up 21% to £ nue up 13% 1m). isitions con lation aroun
nic3 revenue rew revenu
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nancial per lts show a v h many rec r targets.
1 from conti
£104.6m (20 % to £518.4m tributed 2% nd 0.5% to t was therefor e growth of ue in all geo
1
mber 40932. ma.com
e Director, rformance very strong
nuing opera 010: £86.2m m (2010: % and curren the revenue re strong 11% for the
for ving ations m) on ncy e e gions.
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Halma p.l.c., M Tel: +44 (0)14
UK revenu with all thr Revenue t Health and exceptiona there was two sector European Infrastruct Analysis g was at a s except for Europe bu America in in 2010/11 In the Res includes A well as Afr South Am All three s between 2 performan 6% of the growth ca ROW now Group rev target of 3 grew by 2 pace of gr 10% of Gr China by 2 represents Group. There was year.
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ue was up 8 ree sectors to the US w d Analysis d ally strong p good grow rs. revenue w ture Sensor grew 4-5%. similar level r a £3m con ut destined n 2009/10, w 1. st of the Wo Asia Pacific rica, Near a erica, reven sectors incre 20-35% - a
13% total G me from the w makes up venue, on tr 30% by 201 8% to £24m rowth to ach roup revenu
s approxima s very stron
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8%, a good growing the was 18% hig delivering a performanc wth from the as up 2%. rs and Heal Underlying in Industria ntract delive ultimately fo which did n
and Austra and Middle nue increas eased reven very strong teresting to Group reven e Rest of th 24% (2010 rack towards
m and we ne hieve our ta ue coming f enue to Jap ately 1.5% o ng profit1 gro
nalysts’ pr
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result, ere. gher with an ce, and
th and g growth al Safety red in
which alasia, as East plus sed 26%. nue note that nue he World. 0: 21%) of s our evenue eed this arget of from pan
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After year w contri transl profit The h show The s tough delive profit 47%/ patte
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an excellen with profit1 2 ibuted 2% t lation less t growth at t half year on ws the good second half h comparati er strong pe between fir 53% was m rn we saw i
June 2011
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nt first half w 21% higher to this grow than 0.5% g he high leve half year p progress w
ve but we h erformances rst and seco more typical n 2009/10.
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mber 40932. ma.com
we finished
th and curre giving organ el of 19%. profit chart b we are makin r provided a have continu
for us than this
ency nic3 below ng. a ued to t of the
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Halma p.l.c., M Tel: +44 (0)14
We acquir year, mos three main Scientific a companie to our Flui Medicel, a Switzerlan injector de We spent £25m con depending We contin good busi Our most 2011, was the US, w US presen market wh position ar These are Group and profitability We contin
central to record lev Return on (2010: 18. the secon to operate Return on Employed 61.3%) an Capital5 (R both incre growth on
Summ
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red seven b tly in the se n acquisition and Accudy s, which ad id Technolo a business b nd, specialis evices used £82m with sideration t g on future e nue to pay s nesses. recent acqu s of Kirk Key hich adds s nce in the S here we hav round the w e all excellen d should en y in 2011/12 nue to make rowth and h
vels of return Sales2 incr .8%) with 20 d half of the e in the rang
d4 (ROCE) a nd Return o ROTIC) at 1 ased strong a well-man
mary of an
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businesses econd half. ns included ynamics, bo dded further
based in ses in single d in cataract up to a furt to pay in the earnings gr sensible mu uisition, in M y Interlocks significantly Safety Interl ve built a st world. nt additions nhance grou 2 and beyo e acquisition high returns
n in 2010/1 reased to 20 0.5% achie e year. Our ge of 18-22% Return on Ca at 71.9% (20 n Total Inve 5.5% (2010 gly due to o naged asse
nalysts’ pr
y, Amersham, B 728032 Email:
in the The d Alicat
r strength tor. e use t surgery. her e future rowth. ltiples for May s based in to our
rong s to the up nd. ns but are still eved 1. 0.2% ved in r target is % for apital 010: ested 0: 13.6%)
t base.
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Opera perfo £4m ( good increa an ex Capit depre a rela The e 26.5% in 201 Corpo Group low ra Switz Subje propo 7% th
£350 Divide
earnin We fi (2010 syndi Our fi Andr revie secto All thr achie
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ating cash w
(2010: £13m performanc ase we ach xceptional p tal expendit eciation, a m atively low s effective tax %) and we e 11/12 follow
p of Medice ates for com zerland. ect to share
his year – th % or more. W m in dividen end cover is dividend cov ngs. nished the 0: £9m net c cated loan inancial pos rew William ew of tradin
ree sectors eved record
June 2011
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was 108% o Working Cap m reduction ce given the ieved and f performance ure was 12 more typica spend last y x rate was 2 expect to se wing the red rates and th el with its pr mpanies bas eholder appr e increase o he 32nd year We have pa nds over tha s 2.25x, me vered aroun year with £3 cash) and h facility whic sition remai ms, continu ng within H increased profit.
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mber 40932. ma.com
pital increas n) which wa e high reven following on e in 2009/10 1% of l level for us year. 26.2% (2010 ee the rate l duction in U he addition rofits taxed sed in roval it is
r of an incre aid out over at period. eeting our ta nd 2 times b 37m net de have a £165 ch runs to 2 ns strong. ued with a Halma’s thre revenue an solid sed by s a nue n from 0. s after 0: lower K to the at the d by ease r arget by ebt 5m 013. ee nd
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Halma p.l.c., M Tel: +44 (0)14
Health and and is now 42% of bo Infrastruct Safety als In Health increased profit by 3 revenue g profit grow improved the four ye has had a (CAGR) o with the G during the All four He achieved s growth.
Summ
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d Analysis g w our larges
ture Sensor
and Analy by 23% to 3% to £46. growth was wth was 27% to 21.1% (2 ear period s compound f around 16 Group reven e same perio ealth and A strong reve
mary of an
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grew most s st sector co and profit. rs and Indus
sis, revenu £218 millio 1 million. O 17% whilst %. Return o 2009/10: 19 since 2007, d annual gro 6%. This co ue CAGR o
nalysis sub nue and pro
nalysts’ pr
y, Amersham, B 728032 Email:
strongly ntributing Both strial s. ue n and Organic
9.5%). In revenue
resentatio
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Photo secto Detec growt for LE meas Optic in the found Medic achie custo impor growt The U and A where scien saw s this re UK re spend saw l ROW perfo Asia. trend
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ction) and b th in Asia a ED and low
cs enabled u e US, whilst d new applic cal markets eved good g
rtant part. U th in Fluid T US is the la Analysis pro e the major tific instrum strong grow egion. evenue was d from the U
W revenue w rmances fro We expec s to continu
June 2011
d in England nu Web: www.hal
he second h n Halma (be benefitted fr nd the fast energy ligh New produc us to grow s
cations in th
growth from t acquisition Underlying Technology rgest marke
r global med ment OEMs wth in all fou s up by 22% UK Water c teady, grow was up by 34
ct these rela ue in the co
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mber 40932. ma.com
highest sub- ehind Fire rom strong growing ma hting cts in Health significant s UV compan he Oil & Ga Technology medical OE ns also play
was 16%. et for our He nly because dical and are based. r sub-secto % with increa
wth in Europ 4% with stro sub-sectors ative geogra ming year.
h share nies s and we EM yed an venue ealth e it is We
ased We pe.
s in aphic
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Halma p.l.c., M Tel: +44 (0)14
Our Infras made solid 8% to £19 £39 million Since 200 is 6%. The Retur improve a 19.4%). All four su
share in th the US ma Sensor bu Asia and c diversify fr Elevator S compensa conditions Security S the UK wh response Ricochet.
Summ
Misbourne Cour 494 721111 Fa
structure S d progress, 97 million an
07, this sect rn on Sales nd was 19. ub-sectors g e Detection he UK and s
usiness perf continued s rom pedest Safety perfo ating for we s in Europe Sensors gain here it expe to its new w
mary of an
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Sensors sec growing re nd profit by th was orga
continues t 8% (2009/1 grew revenu gained ma saw improv Automatic D formed stro successfully rian door sa
aker marke and the US ned market rienced a p wireless pro
nalysts’ pr
y, Amersham, B 728032 Email:
ctor evenue by 10% to anic. e CAGR to 10 ue and arket vement in Door ngly in y to afety. n Asia, et S. t share in positive
resentatio
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The r Infras a rela and a stead marke espec expec add m the ye acqui give a Door facility manu The r pleas millio All gr reven Durin 23.7% four s Interlo Indus sub-s year.
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regional spl structure Se atively smal are strong in dy and lowe
cially in Asia ct to see thi more resour ear our Fire isition of a s a stronger r Sensor bus y in Beijing ufacturing a recovery in sing, with re n and profit
nue CAGR i ng the year, % compared sub-sectors
strial Safety sector which Last year,
June 2011
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it of revenu ensors show l share of th n UK/Europ er growth in h in the Res a, was enco is continuin rces in this e business c small Chine route to mar siness expa , increasing nd technica Industrial S evenue up b t up by 20%
is 7%. Return on d with 20.7% increased largest sub and was th h saw reven
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e for ws that we h he US mark
these deve st of the Wo
g and plan
completed t ese competi rket whilst o anded into a g their al capability Safety was by 5% to £10 % to £24.4 m nce 2007, th Sales was % last year. profit. b-sector in he only Halm nue decline ck business have ket as eloped
We to ring the tor to
a new . s very 03 million. he . All ma this ses
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Halma p.l.c., M Tel: +44 (0)14
shipped a which was Excluding revenue g All other s benefitted and gener process in increasing developm diversify in The region Industrial Infrastruct relatively s UK, US an
year’s larg this year. revenue g ROW reve 26% of the average o becomes markets w presence.
Summ
Misbourne Cour 494 721111 Fa
single £3 m s not repeat this project growth in Int sub-sectors from impro ral improvem
g focus on n ent to gain nto new ma nal spread o Safety is sim ture Sensor small propo nd Europe w urope was d ge interlock Excluding growth in Eu enue was u e sector, ab
more estab we are build South Ame
mary of an
rt, Rectory Way x: +44(0)1494 7
million contr ted this yea t, underlying terlocks was grew reven
ments in the They have a new product market sha arket niches
milar to rs where the
was lower th down 5% du
this, underl urope was 4 p by 22% a bove the Gr Health and blished in de ing a greate erica will be
nalysts’ pr
y, Amersham, B 728032 Email:
ract ar. g s 4%. nue and y markets e an t are and s. in e US is a wth in the han ue to last epeating ying 4%. and is roup’s Safety eveloping er direct e a
resentatio
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partic busin Andr strate four m Intern deve Halm doubl by ac high r strong acqui becom comp In Ma Innov Orlan this e chang more subsi growt and in a mix techn the be perfo and r Inves result
2007 increa total. group there
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cular focus f nesses in 20 rew William egy and th major strat national ex lopment, in a’s long ter le profit eve chieving org returns and g cash gene ire an addit ming highly pound growt ay 2011, we vation and T ndo, USA (s event, it was ged signific internation diary mana th, is experi nnovation b x of busines
enefits of th rmance and eturns. stment in Int ted in signif de UK/Euro , this propo ased from 1 We aim fo p by 2015. is still more
June 2011
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for our Indu 011/12. ms reviewed e progress tegic initiat xpansion, p nnovation rm business ery five year ganic growth cash gene eration ena ional 7-8% y leveraged, th rate of 15 e held our se Technology see Innovat s clear that antly in rece al, has bett agement foc iencing grea between com sses with hig elieve we ar his, reflected d the higher ternational ficant increa
rtion of reve 19% to 24%
We are doi e to do.
1
mber 40932. ma.com
ustrial Safety d Halma’s s made on tives: people and M&A. s model is to
h at 7-8% w
ables us to
, giving us a 5% per ann econd Halm Exposition tion later). the Group h ent years. ter quality cussed on ater collabo mpanies an gher levels re starting to d in our r levels of g l Expansio ase in reven
enue has % of the Gro ver 30% of t ng well, but y
with r hout a total um. ma in At has It is
nd has
growth n has nue e
the t
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Halma p.l.c., M Tel: +44 (0)14
In China, r million and
new regio and the nu China incr Eleven ou have a dir the year w focus of d Asia and a acquisition In India, re million and twelve sub in the regi sub-secto the Halma premises technical s also consi with our ef In South A 19% to £1 year, only and Health direct pres sub-secto direct pres year we w Halma inv accelerate Today, Ha with the to company executives
Summ
Misbourne Cour 494 721111 Fa
revenue gre d is now 4.6 ing the yea nal offices ( umber of Ha reased from ut of our twe rect presenc we will signif eveloping M also in build n search ac evenue grew d we now h b-sectors w
rs). During a Hub will m in Mumbai w support cap ider regiona fforts in Chi America, rev 2 million. A
h Optics su sence here. rs have pla sence and b will consider vestment co e this proce alma has ov
directors or s.
mary of an
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ew by 28% 6% of the G r we opene (making 5 in alma emplo m 230 to ove elve sub-sec ce in China ficantly imp MD level tal ding up our ctivity in the w by 32% to ave nine ou with direct pr 0: five out o the coming move to larg with additio
al expansion ina. venue incre At the end o atic Door S b-sectors h . An additio ns to estab by the end o whether a
ss. ver 3,900 em g subsidiary r divisional c
nalysts’ pr
y, Amersham, B 728032 Email:
to £24 Group ed three n total)
er 350. ctors now . During rove our ent in region.
ut of resence
g year, er
We will n in line eased by
ensors had a
lish
central t and mployees y chief
resentatio
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We h deve benef (Halm Progr Mana provid
Certif projec to ou
from progr encou being comp Durin strate and D recru devel devel Direc USA. intend based clearl
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ave increas lopment fu fits of that in ma Executiv ramme) and agement De de leadersh
ficate in App ct managem r technical s 150 of our m
uraged by t g provided fo panies. ng 2011/12, egic training DCEs, to es itment prog lop some sp loping talen ctors are bas When we d that 30% d outside of ly have a ch
June 2011
d in England nu Web: www.hal
sed investm urther and a n our perfor ve Developm d HMDP (H evelopment hip and stra rs, whilst HC plied Techn ment and fin
managers h se Halma tra n addition, I he increase
we plan to g for our mo stablish a gr gramme in 2 pecific prog nt in Asia. T sed outside consider th
f UK/Europe hallenge ah
1
mber 40932. ma.com
ment in peop are seeing th
ment alma Programm tegic trainin CAT (Halma nology) give nancing trai ng the past y have benefit aining I have been e in training es by their add further
raduate 2012 and to rammes for Today, just 7 e of Europe hat, by 2015 nue will be e and USA ead of us. ple he EDP e) ng for a es ning year, tted n most r MDs
7% of and 5, we we
Page 9
Halma p.l.c., M Tel: +44 (0)14
Halma’s c years has resources making loc contact wi There has how we ap
second Ha Technolog following t in 2009. A companie sharing te each othe Working G
wireless te conferenc disciplines was share At HITE, it significant collaborat addition to product in to see the solving an was happe interaction This will a competitiv range of te HITE also performan challengin teams from were able elsewhere
Summ
Misbourne Cour 494 721111 Fa
competitive been built managed b cal decision ith custome s been a rea pproach Inn n May 2011 alma Innova gy Expositio the inaugura At HITE, all s had stand chnology a
Groups focu chnology – f echnology o ces for all th s to ensure ed and new t was clear tly increase ion already
novations, amount of nd knowledg ening throu n between H llow us to c ve advantag echnologies allowed us nce and set ng goals for m newly acq to understa e in the Gro
mary of an
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advantage
by local Boa ns based on ers. al cultural sh novation w , we held ou ation and
al event in t 38 Halma ds at an Exh nd know-ho ere Technic ussing on ke for example
e functiona that best pr goals set. to see the d level of going on. ger scale n it was enco lower-level ge sharing w gh informal Halma comp continue to b ge across a s and discip s to benchm even more the future. quired busin and what co up could off
nalysts’ pr
y, Amersham, B 728032 Email:
ards n close hift in within ur S, the UK, hibition,
cal ey areas e, We held l ractice In ew
problem which l panies. build wide plines. mark The nesses
ffer them
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and s comp Finall celeb Awar was w Optic testin Durin in M& seven progr ensur can m proce busin mode comp than d comp The q direct pipeli furthe searc in Eu searc look f secto seem A gre progr
acqui us wi
strong
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see what it t pany within ly, HITE giv brate succes d 2011, with won by a Te cs who had ng their core ng the year w &A spending n acquisition ramme of po re, in the m maintain gro ess also ena ness whilst m el of indepe
doubled sin panies has r quality of the tly related to ne of oppor er manager ch and qual rope and w ch activities for acquisiti
ms to be the eat example ramme can halmic surgi ired in Marc th an entry halmic surgi g presence rtunity for g
June 2011
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takes to bec Halma. ves us the o
h a top priz est Enginee developed e spectrome we made ex g £82 millio
edium and
ables us to maintaining ndent, auto ilst our prof nce 2005, th reduced fro e acquisitio
to focus on ification, wh will assist us in Asia. W
h Health an most fertile e of what an bring is Me ical device ch 2011. M into the adj ical devices in India an rowth in oth
1
mber 40932. ma.com
come a top
alma Innova e of £20,00 er from Oce a new way eter product xcellent pro
ve an active nagement to long-term, w gh returns. “scale-up” o
fits have mo he number o m 44 to 38.
gth of our e have add n company ho will be ba building up We continue hree Halma nd Analysis e ground. n active sea edicel, the business w edicel prov jacent mark
d great her emergin to ation 00, an
ts.
ng e
This
ional
. e is ed a ased p our to still rch e ides ket for ve a ng
Page 10
Halma p.l.c., M Tel: +44 (0)14
markets in acquire M coordinate business w marketed In summa Halma has and that th recent yea rates of gr forward to in the yea
1 Before amo
and acquisit million).
2 Return on
taxation from a percenta
3 Organic g
revenue an The effect o current or p by adjusting revenue and disposal.
4 Return o
amortisation percentage
5 Return on
profit for th before amor but after tax total share retirement amortisation historic good
Misbourne Cour 494 721111 Fa
n Asia. The edicel came ed search e was not bei for sale. ry, you hav s had a terr he strategic ars are deliv rowth and re
r ahead.
tion costs of £ n Sales is d m continuing age
rev growth measu nd profit from
rior financial y g for their con d profit at th
rofit from cont n of acquired
n Total Invest he year from rtisation of ac xation; expres eholders’ fun benefit
dwill.*
Summar
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e opportunit e as a resu effort since t ng actively ve seen toda rific financia c investmen vering incre
rther good p
cquired intang 6.3 million (20 defined as pr
venue from ures the cha m continuing and disposals year has been ntribution bas e date of ac Employed is tinuing operat d intangible a
ed Capital is m continuing cquired intang ssed as a per nds, adding
d intangible a
ry of analy
y, Amersham, B 728032 Email:
y to lt of a the ay that al result ts of eased e look progress
gible assets 010: £4.8 rofit1 before xpressed as continuing ange in the
s during the n equalised sed on their cquisition or defined as tions before ssets as a defined as
gible assets, rcentage of back net cumulative assets and
ysts’ prese
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* see more d CAUT this su 2011. statem involve results anticip statem any fo publica
entation
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21 June 201 details. TIONARY NO ummary is be This docum ments that are e both known s of Halma p.l pated
im
ation.
21 Jun
d in England nu Web: www.hal
11 Preliminary
elieved to be ment may incl e not factual n and unknow .c. may differ mplied by a
g statements,
ne 2011
mber 40932. ma.com
y Announcem rmation conta correct at 2 lude forward-
wn risks. The from results t any forward- sentations, in is not revise ment for ained in 21 June
tements e actual that are
ncluding ed after