Halma reports 46th year of rising dividends and continues profitable growth

Halma, a FTSE 100-listed company known for its consistent performance, has recorded its 22nd consecutive year of profitable growth and its 46th successive year of rising dividends. The company, which operates through 50 autonomous subsidiaries across the globe, continues to demonstrate resilience amidst market uncertainties.

For the year ending in March, Halma announced an 11 per cent growth in revenues, reaching £2.24 billion. Pre-tax profits rose 16 per cent to £459 million, highlighting the group’s robust operating model. Operating margins also improved, increasing from 20.8 per cent to 21.6 per cent over the period. With a strategy that prioritises operational autonomy while benefiting from the resources of a global group, the company has once again proven its ability to navigate challenging market environments.

Halma’s Chief Executive, Marc Ronchetti, emphasised the group’s agility and ability to adapt to global economic challenges. He noted that the company’s decentralised operations allow its subsidiaries to act quickly in their respective markets without compromising support from the larger organisation. The US market continues to play a crucial role, with 90 per cent of Halma’s American revenues generated locally, despite global trade tensions and tariff concerns.

The company operates in three sectors: safety, environmental and analysis, and healthcare. Healthcare remains its smallest division and has faced subdued demand due to global inventory reductions following the pandemic. In contrast, Halma’s environmental and photonics-focused businesses are thriving, driven by growing demand for data-related technologies such as hyperscaler cloud computing and spectroscopy solutions.

Halma’s success is also reflected in its dividend performance. Shareholders will see a 7 per cent increase in the annual dividend, which now stands at 23.12p. This extends an unbroken record of dividend growth since 1979, when Margaret Thatcher first became Prime Minister. Despite this achievement, Halma’s current dividend yield is relatively modest at under 0.8 per cent, given the company’s strong share price trajectory.

Looking ahead, the group has forecasted high single-digit growth and expects to continue its pattern of strategic acquisitions to further strengthen its portfolio. Analysts have praised Halma’s ability to perform well amidst macroeconomic uncertainty, highlighting its position as a high-quality and less economically sensitive investment.