Halma profits as expected

16th Jun 2009 07:12

Full-year profit from health and sensor group Halma came in as expected, towards the bottom end of forecasts, following weaker order intake during the second half.Profit before tax and amortisation of acquired intangibles on continuing operations rose to £79.1m in the 12 months to 28 March 2009, up from £72.8m a year ago. Market estimates were for between £79m and £84.5m. Organic growth was 5%. Revenue from continuing operations was 15% better at £455.9m, which Halma said reflected double-digit growth in all three sectors and underlying organic revenue growth of 11%. The world's second-largest maker of smoke detectors said currency contributions benefited both profit and revenue figures by 8%.The main reason for the underperformance has been reduced investment by UK water utilities, which has hit revenues in Halma's water division.Outside Europe and the US, revenue grew by 31% and now represents 22% of group revenue, up from 19% in 2008. Profit improvement initiatives, inspired by tougher trading conditions during the second half, are expected to deliver annualised cost savings of over £15m during 2009/10.The final dividend rises 5% to 4.78p a share.