Halma develops and sells products for use in the enhancement of public safety and for minimising hazards in the workplace. Its six business divisions cover the development and supply of visual warning systems, toxic gas and smoke detectors, electronic alarm systems and water leakage detectors.

Recent deals have taken the company into medical tests that show some promise. The company has no debt and good dividend growth

Halma at new record
Date: 21 June 2005

LONDON (ShareCast) - Engineer and fire safety products specialist Halma reported another record year despite difficult trading conditions and an adverse currency and raw material hit of 2.5m.

Underlying profits in the year to March rose to 50.4m, from 50.3m, despite currencies moving against it. Sales rose 2% to 299.1m. Pre-tax profits came in at 44.9m against 36.9m.

Resistors and water had a difficult year, chairman Geoff Unwin said, though other sectors held their own or were better.

'Overall, despite little fundamental help from our markets, we remain cautiously optimistic for the year ahead,' he added.

The dividend for the year goes up by 5% to 6.5p.

FTSE 350 Risers
Name Price %
Aegis Group 106.00p 4.69
Halma 149.50p 3.82
Vedanta Resources 588.00p 3.07
Rotork 530.00p 3.06
PZ Cussons 1,224.00p 2.86

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Held them in PEP since 1990. Solid if unspectacular.Good defensive qualities - dividend has increased every year and they generate lots of cash (no debt after all acquisitions last 15 years). Some parallels with another of my long term engineering sector holdings DKH, which is now reaping the benefits of one takeover bid and a second in the offing. Don't expect fireworks from HLMA, but you should sleep well and imho a good long term hold.Always DYOR.

Well aid partridge. Looks as though the market is in love with them today. Latest from Barclays Stockbrokers:

FTSE 350 Risers
Name Price %
Aegis Group 110.75p 9.38
Vedanta Resources 605.00p 6.05
Halma 150.50p 4.51
BPB 739.00p 4.38
Dana Petroleum 725.00p 4.24

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From UK-Analyst.com: August 3rd 2005
A positive AGM statement helped lift shares in Halma 6.5p higher to 150.5p today. The safety, health and environmental technology group said that trading during the first quarter had been "encouraging," confirming that sales and orders were ahead of last year and to date. Today's statement intimated the company's confidence for the current year, as it said it was "cautiously optimistic" for the year ahead with trading in line with its expectations.

Have been steadily improving over last few months and recent RNS split historic business results into segments of Infrastructure Sensors, Health and Analysis and Industrial Safety. Shows pedestrian (but still acceptable) performance in two categories and growth in Health and Analysis, helped by shrewd acquisitions. It will be interesting to see if interims due 6th December bear out cautiously optimistic noises made at the AGM. Very good track record over many years and strong profits/cash generation mean yield at 170p likely to be min 4% over next 12 months. A proper company and one to lock away IMO.

Very solid results today - sales/profit/dividend growth and still net cash after several acquisitions. Particularly like the establishment of manufacturing capacity in Eastern Europe/China, which should help margins still further going forward. IMO a quality long term share -one to lock away for the Children's Trust Fund money (if only that had been around whne my kids were born!)

Been a good day today for those with a bit of quality in their portfolios. Check out HLMA trading statement.Firing on all cylinders, markets buoyant,great cash generator. Unlikely to make you a fortune overnight, but overall return (including reinvested divixdends) last 20 years excellent. Mine locked away in PEP.Always DYOR.

Another excellent set of results yesterday and good write up in today's Times. Remains a core PEP/ISA holding imo. Unlikely to interest the day traders, but made me a lot of money since the 1970s!

Another year, another excellent performance and another dividend increase - now 29 years in succession. Todays yield around 4%, but compounding effect on my first purchase is fantastic. Share price has trod water last 12 months, but still better than most. Always DYOR

HLMA chart as promised. Looks like we could get a nice short to med term trade out of this one.

Another year, another excellent performance and now 32 years of dividend increases of at least 5%. Share price down - but not selling mine. Always dyor.

Goes ex-divi 20th July '11 (5.56p)

There's an interesting prospect coming up on Thursday, in the form of interim results from Halma . Halma is in the health and safety business, with divisions focusing on health, hazard detection, and industrial safety. With a share price of 392p, there's only a 2.6% dividend forecast, but that's on strong earnings growth and it's in a business that surely has a good long term future

From IC this week:
"Electronics & engineering group Halma has an enviable reputation for consistency - it has a multi-decade record of dividend increases. Demand in its' end markets is largely driven by regulation and maintenance spending and buyers of it's leak detection kits and safety sensors are often found in defensive industries such as healthcare & infrastructure. The group has a good geographical spread and a robust balance sheet that supports an impressive record of growth-enhancing acquisitions. BUY"
Market Cap £1.4bn, Div yield 2.4%, forecast EPS growth 20%, 5 yr Beta 0.65.

Safety, health and sensor technology group Halma is one of those steady-Eddie companies that rarely makes waves. Thursday's full year results should see the company continue its impressive record of consistent double-digit percentage growth. The consensus market forecast is for earnings per share to shot up by a fifth to 24.63p from 20.49p the year before. Underlying profit before tax is seen breaking through the £100m barrier to £120.8m on sales of £581m. # The health and analysis part of the group is expected to be the fastest growing division. There is also likely to be an update on the integration of recent acquisitions.

Another very solid set of resuts and dividend now increased by 5% or more (this year 7%) in each of the last 34 years - the compounding effect of that is fantastic.

Decent set of interim figures again today - a classic example of the best companies having few followers on these boards. Market cap now well over £2bn.

Has to be one of the best FTSE250 performers over many years. Excellent interims again today. Market cap now £2.8Bn. Hope a few more have enjoyed HLMA success.

Halma's amazing record run continues
By Lee Wild | Tue, 14th June 2016 - 14:00

UK technology smoke alarms Halma profits reliable dividend growth 37 years If there was a prize for consistency, Halma (HLMA) would probably win it. I seem to write that, or something like it, every time I cover the smoke detectors and automatic door sensors firm, but now, more than ever, it's a point worth ramming home.
Halma delivered a thirteenth consecutive year of record revenue and profit in the 53 weeks to 2 April. It also increased the dividend by 7%, the 37th year in a row it's risen by 5% or more. It can do this because management has built a highly diversified, defensive business with four divisions. A tough year at one is offset by strength at the others.

Adjusted pre-tax profit grew by 8% to £166 million on revenue up 11% to £808 million, or up 3% and 6% respectively at organic constant currency. Three of the divisions - infrastructure safety, medical, and environmental and analysis - had a record year, which offset a 15% organic decline in constant currency profit at the oil-related process safety unit.

"Given the varied market conditions you're reminded of the strength of strategy and business model, like regulation, healthcare, demand for water," chief executive Andrew Williams told Interactive Investor on Tuesday. "We offer some certainty in an uncertain environment."

Crucially, Williams also said that order intake continues to exceed revenue and order intake last year, and at this early stage, the company is on track to meet expectations.

graph 1


Halma is diversified geographically, too. Every major region posted top line growth and revenue grew by 22%, or 9% at organic constant currency, in the US, Halma's largest market.

More money was spent on Mergers and Acquisitions last year than ever before. Four deals got done last year, at a cost of £193 million, almost half of which went on American sensors firm CenTrak, which enables real-time monitoring of doctors and hospital assets. Expect more smaller deals in future as many large businesses are overpriced.

"We continue to believe in Halma's quality and today's results are further demonstration of its defensive growth traits, and remain positive on the shares on a long-term basis," wrote analysts at Barclays.

"Our only struggle, given our 12-month ratings horizon, is with the significant valuation premium the shares are already ascribed relative to its UK industrial peers."

Halma shares currently trade on a price/earnings (PE) ratio of 24.7 times consensus earnings estimates for 2017. That's a 43% premium to the UK industrial sector average compared with a five-year average premium of 27.5%.

Wee punt, Trading Statement Thursday, Limit Buy filled on the spreads @ 981p