Halma shares up 4.2% on profit growth and dividend increase

Halma shares (LSE: HLMA) jumped 4.2% early morning Thursday following the safety equipment firm’s announcement of higher dividends and robust profit growth.

In the six months ending September 30, Halma’s pretax profit saw a 3.2% uptick, reaching £150.2 million compared to the £145.5 million reported in the corresponding period the previous year. The revenue for the same period rose by 8.6%, reaching £950.5 million from £875.5 million.

Halma’s interim dividend stood at 8.41 pence per share, marking a 7.0% increase from the previous year’s 7.86p. CEO Marc Ronchetti expressed confidence in the company’s future, anticipating substantial organic constant currency revenue growth for the current fiscal year ending March 31.

Looking ahead to the financial year 2024, Halma foresees its adjusted pretax profit aligning with analyst consensus at £389.0 million, within a range of £377.4 million to £396.2 million. The lower end of this range would represent a 4.5% increase over the £361.3 million reported for financial 2023.

CEO Ronchetti acknowledged the challenges and opportunities in the present operational scenario, attributing the company’s success to its sustainable growth model. Halma shares are up a modest 1% year-to-date increase but remain down by 12% year over year.