Halma PLC has released a trading update ahead of its half-year end on September 30, 2023. The company has made further progress in the first half of the financial year and maintains its guidance for the full year, expecting good organic constant currency revenue growth and a Return on Sales of approximately 20%. The balance of revenue and adjusted profit before taxation between the first and second half of the year is expected to be in line with historical averages. Halma's cash performance allows for continued investment in organic growth and acquisitions.

The company continues to make progress in varied market conditions, benefiting from its purpose, agility, entrepreneurialism, diversity, and global reach. Group order intake is ahead of the comparable period last year, with the Safety and Environmental & Analysis sectors in line with revenue, while the Healthcare sector has experienced slower order intake due to post-COVID disruptions and budgetary pressures. Revenue by sector on an organic constant currency basis reflects order book trends, with stronger growth in the Safety and Environmental & Analysis sectors and similar revenue in the Healthcare sector compared to the first half of last year.

Return on Sales in the Safety and Healthcare sectors is expected to be higher in the first half of the year, while the Environmental & Analysis sector's Return on Sales is expected to be lower due to mix effects. Geographically, the USA and Mainland Europe have delivered strong organic constant currency revenue growth, while the UK has grown modestly. Asia Pacific has seen negative revenue performance, with declines in China partially offset by a strong performance in Australasia. The appreciation of Sterling is negatively impacting the Group's results.

Halma has made three acquisitions in the first half of the financial year, following a record acquisition spend in the previous year. The company has a healthy acquisition pipeline across all three sectors. Halma also made one small disposal of its stake in FireMate Software Pty. Ltd. for a total consideration of AUD8.4m, retaining FireMate's Nimbus digital solution.

The half-year results will be released on November 16, 2023.