Halma profit up; health sector buys on radar

By @ibtimes on

British sensor maker Halma posted a higher first-half pretax profit on growth at its health and diagnosis business and said it continued to look at acquisitions in the space.

Health and analysis is the area where there has been more opportunity - there has been less market consolidation, the markets are less mature, Chief Executive Andrew Williams told Reuters.

Halma, which completed two acquisitions in the first half, said it founds more opportunities in the developed world, but was looking at acquisitions in Asia and South America as well.

The company, which makes smoke detectors, automatic door sensors and eye examination devices, ended the first half with 56 million pounds in net debt and said it entered a new 260 million pound credit facility running through October 2016.

For the six months ended October 1, Halma's pretax profit rose to 57.5 million pounds from 49.3 million pounds a year ago.

Total revenue rose 12 percent to 280 million pounds, while health and analysis revenue rose 17 percent to 121 million pounds.

It (health and analysis) will continue to be the biggest contributor in the second half. They are higher growth markets...there is good organic growth and good acquisition growth to be had there, Williams said.

Revenue increased across geographic regions, rising almost 30 percent in China.

We certainly think that a 25-30 percent rate of growth is something that we can sustain in the future, CEO Andrew Williams said.

Halma shares were trading down 3 pence at 315.2 pence at 1003 GMT on Tuesday on the London Stock Exchange.

(Reporting by Suzannah Benjamin in Bangalore; Editing by Don Sebastian)

Join the Discussion