Halma says visibility still limited

30th Nov 2010 07:10

Sensor technology group Halma saw increased revenue and profit in all three of its divisions in the 26 weeks to 2 October.Group revenue rose 12% to £249.1m from £222.1m at the interim stage last year. Organic revenue growth on a constant currency basis was 10%.Adjusted profit before taxation, which excludes the amortisation of acquired intangible assets and the associated tax, climbed 29% to £49.3m from £38.1m a year earlier. Reported profit before tax rose 34% to £47.3m to £35.4m in 2009.On an organic constant currency basis profit growth was up 28%.Adjusted earnings per share from continuing operations were up 32% at 9.75p from last year's 10: 7.37p, while statutory earnings per share were up 37% at 9.38p (2009/10: 6.87p).Return on sales improved to 19.8% from 17.1%, while return on capital employed shot up to 72.3% from 52.4% the year before. On a divisional basis, Infrastructure Sensors grew revenue by 5% and profit by 8%, Health & Analysis grew revenue and profit by 22% and 39% respectively, while Industrial Safety saw revenue climb 8% and profit jump 36%.Growth was achieved in all major geographic regions, with revenue from China improving by 34% to £10.6m, double the level of two years ago. Halma is targeting China accounting for 10% of all sales by 2015."Market conditions are much steadier than they have been over the previous two years and, therefore, this year we expect a much more evenly balanced split between first half and second half trading. We made an attractive acquisition following the period end and continue our search for high quality opportunities within our existing markets," said Halma's chief executive, Andrew Williams."After the volatility of the past two years, there is greater stability in our markets although customer visibility is still shorter-term than before the credit crunch," the company said.The interim dividend has been hiked 7% to 3.54p from 3.31p.