Halma Reports Strong Financial Results

London-based multinational company Halma has released its latest financial report, showcasing impressive results across various sectors and regions. The company's strong performance is attributed to its continued commitment to innovation, strategic investments, and organic growth.

In their latest annual report, Halma highlighted several key achievements, including record revenue of 21%, representing a significant increase from the previous year. This growth was driven by broad-based expansion across all sectors and regions, with adjusted profit growth in all areas as well.

The company's strong financial position is underscored by its cash conversion rate of 78% (90% in the second half of the year), which allows for continued investment in organic growth and strategic acquisitions. Halma's balance sheet remains healthy, with net debt/EBITDA of 1.38x, providing a solid foundation for future expansion.

Halma's Chief Executive Officer, Marc Ronchetti, commented on the company's success, stating that '2023 was a successful year for Halma, reflecting the contributions and continued commitment to our Purpose of everyone at Halma.' He emphasized the company's focus on strategic investment, which has led to increased opportunities for future growth through organic investment and acquisitions.

The report also highlights several notable milestones, including:

* A total dividend per share increase of 7%

* Increased technology investment by £7m to £18m

* R&D expenditure up by £17m to £103m, representing 5.5% of revenue

* Seven acquisitions completed in the year for a maximum total consideration of £397m

* Two further acquisitions completed since the period end for a maximum total consideration of approximately £57m

Halma's commitment to sustainability is also evident through its Environment Commitment Statement and Supplier Statement, which outlines its approach to environmental responsibility. The company has made significant progress in this area, with ongoing efforts to reduce its carbon footprint and promote sustainable practices.

Looking ahead, Halma expects to deliver good organic constant currency revenue growth in the year ahead, with Return on Sales 4 increasing to approximately 20%. With a strong order book and continued investment in technology and R&D, the company is well-positioned for future success.

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