Halma releases an update regarding the impact of the COVID-19 pandemic. Full Year Results announcement and AGM. Halma continue to expect the group’s adjusted profit before tax for the year ended 31 March 2020 to be in a range of £265 million to £270 million, in line with the guidance given in the group’s scheduled Trading Update on 19 March 2020. Halma expects revenues to be approximately £1,330 million and year-end net debt (excluding the impact of IFRS16) to be approximately £320 million. Halma expects to release the group’s preliminary results on 14 July 2020. This date has been agreed in consultation with the group’s auditors, PricewaterhouseCoopers LLP, and reflects the challenges of completing the audit of a geographically dispersed group given the travel restrictions and enhanced safe-working practices currently in place. Accordingly, the group’s AGM will take place in early September 2020. Balance sheet and liquidity The group’s financial position remains robust with committed facilities totaling approximately £750 million (at current exchange rates). The earliest maturity in these facilities is for £74 million (at current exchange rates) in January 2021, with the remaining maturities from 2023 onwards. Each of the group’s companies is implementing an operating plan to suit its market and local circumstances The financial covenants on these facilities are for leverage (net debt/adjusted EBITDA) to not be more than three times and for adjusted interest cover to be not less than four times. Currently, Halma does not intend to utilize the UK government’s COVID Corporate Financing Facility, although the group have taken the prudent step of confirming Halma’s eligibility in principle, subject to establishing an appropriate commercial paper program. COVID-19 impact, challenges and the group’s responses Halma has a long track record of successfully adapting to societal shifts and changes in markets. Halma believes that their agile business model, and the group’s focus on critical safety, health, and environmental market niches, will enable the group to perform relatively resiliently and contribute to the global efforts to deal with COVID-19. Partnering with the group’s central and regional COVID-19 support groups, the first of which was established in January 2020 following the initial outbreak in China, each of the group’s companies is implementing an operating plan to suit its market and local circumstances. Mandate or permission from regional or national authorities The group’s 43 operating companies have a total of 54 principal operating facilities spread across the UK, the USA, Mainland Europe and Asia. Over 30 of the group’s companies deliver critical safety, healthcare and environmental protection solutions and have a mandate or permission from regional or national authorities to continue to operate during shutdown restrictions. Currently, following the re-opening of the group’s fire safety business in Italy last week, there are only two facilities, in California and Tunisia, which are closed due to government shutdown restrictions. However, all the group’s businesses are having to address their specific supply chain and distribution challenges that are being caused by the pandemic, as well as responding to the similar challenges faced by their customers. Alicat, Perma Pure and Maxtec are making components for ventilators and respiratory health devices for hospitals There has been a significant focus on ensuring a safe working environment for all Halma company employees. Measures taken include working from home wherever possible, a ban on non-essential travel and visitors to facilities, increased spacing between workstations, appropriate protective equipment, staggered shifts and breaks, plus enhanced cleaning processes and contingency planning. Personal protective equipment for health workers In accommodating these changes, the group’s operational teams continue to show exceptional commitment and dedication to ensure that customer needs are met and to contribute to the global fight against COVID-19 directly and indirectly. Examples include: At least 10 companies from across every Halma sector are using rapid prototyping capabilities to manufacture personal protective equipment for health workers, in their local communities and nationally in the UK, Europe and the USA. Alicat, Perma Pure and Maxtec are making components for ventilators and respiratory health devices for hospitals. Diba and Bio-Chem are supplying parts which are used in new medical diagnostic test instruments. Access controls and safe water SunTech, Riester and Cardios are supplying primary care devices to test the blood pressure and cardiac health of patients. CenTrak’s technology is being used in healthcare facilities and care homes to track the movement of people and ensure compliance with hand hygiene regimes. BEA is making sensors, including those specifically designed for healthcare facilities, to ensure that doors can be opened and closed automatically without human contact. The group’s water businesses including HWM, Mini-Cam, Palintest, Sensorex and UV companies are ensuring that water utilities can preserve continuity of a safe supply to homes and critical infrastructure. The group’s fire businesses are helping to ensure that fire safety is maintained in critical infrastructure across the world. One of the group’s most recent acquisitions, Sensit, is supporting gas utilities in the USA to ensure that their residential supply pipelines are safe. Cost reduction and cash conservation measures As in previous downturns, Halma have sought to act quickly to mitigate potential impacts by reducing costs, optimizing cash flow, protecting liquidity and, where necessary, changing how Halma operates. Halma are ensuring that the group’s companies continue to manage their working capital effectively These actions are expected to result in a cost reduction (net of the cost to implement them) of over £20 million in the first quarter of the new financial year, compared to the previous fourth quarter’s run-rate. Halma will review these mitigating actions at the end of the first quarter. Halma have sought to limit the impact of these actions on the group’s employees, and protect their employment, in anticipation of trading conditions improving later in the financial year. Company, sector and group leaders have agreed to temporary salary reductions from 1 April 2020 for an initial three-month period, demonstrating their commitment to absorb a significant proportion of the cost savings necessary to protect ongoing operations. Reduction in salaries and hiring freeze This includes the Halma plc Board and the Executive Board, both of which have agreed to a 20% reduction in salaries or fees. Whilst the group has furloughed a small percentage of the group’s workforce, currently Halma intends to fund this without any support from the UK government’s Coronavirus Job Retention Scheme. Halma have implemented a widespread hiring freeze, a reduction in the use of contractors and a significant reduction in discretionary overhead spending. Halma are ensuring that the group’s companies continue to manage their working capital effectively, while maintaining productive relationships with customers and suppliers. Halma are limiting capital investment to essential projects and R&D only, and do not expect to complete any acquisitions during the first quarter, though the group’s M&A search efforts are continuing. The COVID-19 pandemic is expected to have a net adverse impact on the group’s markets and the group’s full year financial results to 31 March 2021, which are likely to have a significant second half weighting even though the timing and profile of recovery remains uncertain at this stage. Summary In what are challenging and changing times, Halma have taken a considerable number of actions to date and will continue to monitor matters closely. Halma will provide a further update in the Full Year results announcement. Andrew Williams, Chief Executive of Halma, said: “Through this current challenging period, many of the group’s companies are demonstrating how they are living Halma’s purpose of ‘growing a safer, cleaner, healthier future for everyone, every day’, by supporting the fight against COVID-19 directly and indirectly.” “Our agile business model, strong positions in markets with long-term growth drivers and the talent and dedication of our people are expected to ensure that we will perform relatively resiliently in the short term and be well positioned to resume growth as markets recover.”
Halma, the global group of life-saving technology companies, has acquired Maxtec, LLC, based in Utah, USA. Maxtec is a pioneer in the design, manufacture and distribution of oxygen analysis and delivery products for use in medical and non-medical applications. They specialize in innovative products for respiratory care, including in oxygen sensors and analyzers for use in hospital acute care units. Maxtec will be managed as part of Halma’s Perma Pure business, whose medical dehydration products are also used in acute care units, and will become part of Halma’s Medical sector. Medical moisture management products Key members of Maxtec’s leadership team will remain with the business and it will continue to operate in its current facility. Andrew Williams, Halma Group Chief Executive, commented: "Maxtec is highly aligned with our purpose, and further extends our presence in diagnostic products and acute healthcare.” “It brings both technology and a market presence that will accelerate Perma Pure’s growth in medical moisture management products and adds a new niche in oxygen analysis and delivery products, where growth is being driven by aging populations and the increasing prevalence of heart and respiratory conditions. I am delighted to welcome Maxtec to the Halma group of companies and look forward to supporting its future development.” Purpose-Driven group Bruce Brierley, Maxtec’s Chief Executive Officer, added: “We are excited to be joining Halma and building on the strong foundations that are already in place in our business.” “Maxtec is a world leader in gas sensing, analysis, and delivery and Halma is the perfect home to help us grow faster. We have great people, customers, distribution partners and suppliers, and joining a purpose-driven group which is so well-aligned to our mission and our technologies will ensure we can continue to grow our company into the future.”
Halma, the global group of life-saving technology companies, has acquired Sensit Technologies, LLC (“Sensit”), a gas leak detection company based in Indiana, USA. Sensit’s technologies are closely aligned to Halma’s purpose of growing a safer, cleaner, healthier future for everyone, every day. Sensit manufactures products that enable natural gas utilities to detect leaks in their pipes, reducing climate change effects by minimizing emissions of methane, protecting workers in the natural gas distribution industry, and ensuring compliance with regulatory standards. Its technologies are also used in emergency response situations by firefighters entering burning buildings to ensure that they do not face explosion risk due to leaking natural gas. natural gas leak detection Sensit will become part of Halma’s Process Safety sector and will continue to be led by its existing management team from its current location. Andrew Williams, Group Chief Executive at Halma, commented: "Sensit enhances Halma’s gas detection capabilities, with its strong market position and technological capabilities in the natural gas leak detection market." "Its growth is supported by tightening safety and environmental regulatory standards, which protect communities and workers from hazards, and minimize climate change impacts. We look forward to working with its management team and continuing its strong track record of growth supported by Halma’s strategic Growth Enablers.”
Halma, the global group of life-saving technology companies, has made two acquisitions to join its Medical and Infrastructure Safety sectors respectively. Halma has acquired NovaBone Products, LLC (‘NovaBone’), a designer and manufacturer of US FDA-approved synthetic bone graft products, based in Florida, USA. NovaBone’s products are used to accelerate bone regeneration, primarily for orthopaedic and dental surgical procedures in the USA. It will become part of Halma’s Medical sector, which includes a range of diagnostic and surgical device companies serving niche applications in global healthcare markets. NovaBone’s management team will continue to lead the business from its current location. Cloud-Based Fire Protection Halma has also acquired 70 per cent of FireMate Software Pty. Ltd. (‘FireMate’), an Australian company based in Brisbane which provides cloud-based fire protection maintenance software to fire contractors. FireMate will be part of the Group’s Infrastructure Safety sector and will continue to be led by its current management team. Andrew Williams, Halma Group Chief Executive, commented: "These businesses are exciting additions to Halma, bringing new technologies and market niches to two of our sectors and are highly aligned to Halma’s purpose. Both businesses are well positioned to benefit from the range of Halma’s strategic Growth Enablers and we look forward to working with their management teams to deliver further growth.” Integrated Fire Systems “NovaBone extends our Medical sector’s presence in surgical applications, adding a new niche within the orthopedics market, which is growing fast due to the ageing population and increasingly sedentary lifestyles causing joint problems. It has strong technology and knowhow within the fast-growing biologics segment, developing biomaterials that harnesses the body’s natural healing process to accelerate bone growth.” “FireMate’s software solutions are highly complementary to those currently offered by our Infrastructure Safety sector’s fire businesses and further strengthens our capabilities in connected and integrated fire systems internationally.”
Apollo Fire Detectors parent company, Halma plc, the global group of life-saving technology companies, has been named one of Britain’s Most Admired Companies 2019 by Management Today. In addition to being named as a top ten company, Halma also won the individual category award for Engineering. The news was revealed last night at a ceremony in central London, where Charles King, Head of Investor Relations, and Jo Smith, Managing Director of Halma company Fortress Interlocks, accepted the award on behalf of Halma. Britain’s Most Admired Companies 2019 Commenting on the award, Halma’s Group Chief Executive, Andrew Williams, said, "This award is recognition of the hard work and dedication of all our employees around the world who are helping us to fulfill our purpose of growing a safer, cleaner, healthier future for everyone, every day. It is testament to why Halma is such a rewarding place to work: we have a clear purpose, a strong culture, and we develop innovative technologies that help solve some of the world’s most important challenges, from water quality to preventable blindness.” Britain’s Most Admired Companies remains one of the most in-depth corporate reputation surveys in the UK" Paul Simpson, Editor of Management Today has commented, "Running since 1990, Britain’s Most Admired Companies remains one of the most in-depth and best-established corporate reputation surveys in the country. This year, Halma has earned the ultimate accolade from its peers (and fiercest critics) by being named one of the Top 10 Most Admired Companies in the country - and the most respected company in the engineering and machinery sector. A global group of life-saving technology companies, Halma is a true British success story." Halma, Britain’s Most Admired Engineering Company 2019 Halma has been ranked as Britain's Most Admired Engineering company of this year and has also increased its overall position from 29th in 2018 to 7th in 2019. The global group recently announced good progress in the first half of 2019/20, building on its successful track record of 16 consecutive years of record revenue and profit growth, and over 40 consecutive years of dividend growth over 5% or more.
Halma plc, the FTSE 100 global group of life-saving technology companies, has appointed Laura Stoltenberg as Sector Chief Executive, Medical & Environmental, succeeding Adam Meyers. Laura joined Halma as Divisional Chief Executive, Medical & Environmental on January 1, 2019 from Medtronic where she was Vice President and General Manager for MDI Solutions at Medtronic Diabetes. Medical sciences and energy solutions expert Prior to Medtronic, Laura was Chief Commercial Officer at Exact Sciences Corporation, responsible for sales, marketing, market access and medical affairs. Earlier in her career she held escalating leadership roles at General Electric, including GE Healthcare Lunar, and drove several acquisitions for GE Healthcare. Laura brings strong experience and capability in delivering growth-oriented strategies, managing talent and capital allocation as well as a depth of M&A experience in the Medical sector. Adam Meyers will continue to support Laura and the Sector over the coming months to enable a smooth onboarding and transition process. Safety and health services firm Andrew Williams, Halma CEO, said: "I am delighted that Laura will succeed Adam Meyers as our next Sector Chief Executive for the Medical & Environmental business, and welcome her to the Executive Board.“ He adds, “Laura brings significant strategic and operational expertise and has demonstrated a strong alignment to Halma’s DNA and unique operating model. I am extremely grateful for Adam’s ongoing support in developing Laura and our DCEs, which continues his approach of putting Halma’s success as his first priority.”
Halma plc, the FTSE 100 global group of life-saving technology companies, has appointed Catherine Michel as its first Chief Technology Officer. In this newly created role, Catherine will have global responsibility for the group’s data and IT strategy with a focus on enabling Halma companies to become more data-driven both operationally and in the solutions that they provide to customers. Catherine will report into Halma’s CEO Andrew Williams and be a member of Halma’s Executive Board. She will be based in Amersham, UK. Data-driven operations and cloud technology expert Prior to joining Halma, Catherine was Chief Technology Officer and Chief Strategy Officer at Sigma Systems, global provider of catalog-driven software solutions for communications, media and high-tech companies. Catherine had responsibility for Sigma System’s product portfolio, technology strategy and product delivery. Catherine has received several industry awards and recognitions, including being named one of the ‘50 Women to Watch’ in the telecoms industry by GTB 2017; receiving the ‘Woman in Telecoms Award’ at the World Communications Awards 2018; and most recently being awarded ‘CTO of the Year’ by TM Forum 2018. Technological and digital innovation expert Catherine also serves as Trustee for Skylarks (formerly Me Too & Co), and she was an Executive Committee Member of TM Forum and an Advisory Board Member at UK5G. Catherine, who began her career at Accenture, also founded Tribold, which was later acquired by Sigma Systems. Andrew Williams, CEO of Halma, said “Technological and digital innovation is at the heart of Halma’s growth strategy as we continue to grow and scale. Catherine will further strengthen our expertise with her deep knowledge of how we can leverage our data more fully, both operationally and with our customers and partners.”
Halma plc, the FTSE 100 global group of life-saving technology companies, has appointed Ruwan De Soyza as its first General Counsel and Company Secretary. General Counsel is a newly created role for Halma. Ruwan will have global responsibility for the group’s legal and compliance affairs and become a member of Halma’s Executive Board. He will also oversee corporate governance as Halma’s Company Secretary based at the Head Offices in Amersham, UK. Infrastructure safety and security firm Before joining Halma, Ruwan De Soyz was working as the Deputy General Counsel and Head of Public Policy and Government Affairs at American financial firm, Worldpay, Inc., the NYSE listed payment processing company. He also served as the Group General Counsel of Worldpay Group plc, the FTSE 100 American conglomerate. Prior to that, Ruwan was working in the capacity of Senior Group Legal Counsel at banking and financial services global firm, Standard Chartered, and before that had executive roles at Accenture and Clifford Chance. Product Development and Research expert At Worldpay, Inc., Ruwan was involved in and led the legal aspects of the merger of Worldpay Group plc with Vantiv Inc and other company initiatives such as the expansion of the group’s business internationally in Europe, Asia Pacific, Latin America and the USA as well as the launch of multiple products such as My Business Mobile, a downloadable app that can turn a /mobile phone into a contactless payment terminal. Andrew Williams, CEO of Halma, said, “Ruwan’s new role at Halma will be critical in helping our companies to grow and scale both organically and through acquisition. He brings new capabilities and expertise to Halma that will make him a valuable addition to the leadership team.”
Halma, globally renowned safety, health and environmental technology group, has announced that it has agreed to acquire the Ampac Group ("Ampac"), a renowned fire and evacuation systems supplier in the Australian and New Zealand markets. Infrastructure Safety sector Ampac will become part of the Halma Group's Infrastructure Safety sector. The cash consideration for Ampac of A$135 million (£74 million2), on a cash and debt free basis, will be funded from Halma's existing facilities. Completion is subject to certain closing conditions and is expected to occur by no later than mid-August 2019. In the twelve months ended June 2018, Ampac's revenue and EBIT were A$57 million (£31 million) and A$13.7m (£7.5m), respectively. Ampac is headquartered in Perth, Western Australia with corporate offices in Australia, New Zealand and the United Kingdom. Ampac's management team will remain with the business. Fire detection solutions Andrew Williams, Group Chief Executive at Halma, said, "This is an exciting acquisition that extends our geographic footprint and strengthens the intellectual property of our fire detection businesses. Ampac brings a strong brand, robust technology and well-established routes to market, and has been a partner for our business for several decades. He adds, “Its highly complementary technologies will strengthen our value proposition, and it is well positioned to benefit from Halma's Growth Enablers. This is a further example of our strategy to acquire regional partners to accelerate growth in our core Fire Detection markets, following our successful acquisition of Limotec in Belgium in 2018, and Advanced Electronics in the UK in 2014. We look forward to Ampac joining Halma and to working with its management team."
Halma announces the acquisition of Business Marketers Group Inc., trading as Rath Communications, a provider of emergency communication systems for Areas of Refuge in the USA. Rath is based in Wisconsin, USA, and will become part of the Group’s Infrastructure Safety Sector. Elevator Safety And Healthcare Andrew Williams, Halma's Chief Executive, commented: “Rath extends Halma’s safety communications capabilities and adds a new market niche with its strong position in the Area of Refuge communications market in the USA, where growth is being supported by tightening regulatory standards.” “Rath is also well positioned to benefit from Halma’s strategic Growth Enablers, bringing the potential for collaboration with other Halma businesses in elevator safety and healthcare to drive expansion into adjacent markets focused on the care and safety of the elderly and disabled people. We look forward to working with Rath’s management team and continuing its strong track record of growth.”
Halma has acquired Navtech Radar Ltd in a move that will add new capabilities to the Infrastructure Safety sector. Navtech Radar is a provider of innovative radar surveillance and safety solutions for use in highway monitoring, perimeter security and industrial applications. Based in Wantage, UK, Navtech combines radar, cameras and software to improve road safety and provide real-time incident detection, including for tunnels and smart motorways. Sensing Applications For Industrial Automation Navtech also delivers cost-effective real-time perimeter protection for critical infrastructure sites such as airports and supplies sensing applications for industrial automation in harsh outdoor environments. The acquisition was completed on 14th November and its existing management team will remain with the business. Andrew Williams, Halma's Group Chief Executive, commented: "Navtech is an exciting addition to our Infrastructure Safety business and builds on our existing strengths in sensing vehicles, people and assets for safety and control applications.” “It has valuable IP in radar-based hardware and software solutions and also adds a new presence in the fast-growing highway and critical infrastructure safety market niches. As well as adding these new capabilities to the group, I am confident that Navtech will benefit from all of Halma’s strategic Growth Enablers, including International Expansion and Digital Growth, to accelerate and sustain growth in the future.”
Halma has successfully acquired Limotec bvba in a move that will strengthen their fire safety offering in continental Europe. Based in Belgium, Limotec is a fire control panel designer and manufacturer and fire system seller in the Belgian market. The company will complement Halma’s existing portfolio of fire detection companies, including Advanced, Apollo, Argus, FFE, and LAN Control Systems. Limotec currently integrates their control panels with Apollo’s detection devices, to sell complete fire systems through specialist channels. Robust Technology Limotec brings strong brand equity, supported by robust technology, and excellent customer service. This acquisition supports Halma’s strategy of growing their geographic footprint and increasing Halma’s fire system offering. The company will continue to run under its current management team, and will become part of Halma’s Infrastructure Safety sector. Andrew Williams, Halma's Chief Executive, commented: "Limotec strengthens our presence in continental Europe, bringing strong brand equity and robust technology to further enable us to capitalise on growth trends in fire detection, including increasing regulation and digitalisation. “This acquisition follows our successful acquisition of Advanced Electronics in the UK in 2014 and is a further example of our strategy to acquire regional partners to accelerate growth in our core Fire Detection markets.”
Wednesday 7th February, Halma held a dinner for analysts and institutional investors at the Andaz Hotel in London. Andrew Williams, Halma’s Chief Executive, began by introducing Halma’s Executive Board members including Marc Ronchetti, who will become Halma’s CFO upon Kevin Thompson’s retirement later this year, and Inken Braunschmidt, who became Halma’s Chief Innovation and Digital Officer in July 2017. Agility Of The Businesses Andrew then gave a brief summary of Halma’s evolution over the past 45 years, highlighting the agility of the businesses as markets and technologies have changed while maintaining a consistent financial model and strategic framework. Halma’s purpose is “Growing a safer, cleaner, healthier future for everyone, every day”. This means that our collective efforts are concentrated on making a transformational impact on people’s lives in each of our three key areas of focus: safety, healthcare and the environment. This helps us to attract new talent, acquisitions and strategic partners. Scope For Scalability The Executive Board has been streamlined to reduce the number of Sector CEOs from four to twoIn recent years, Halma has encouraged greater collaboration between its businesses supported by the addition of small, expert teams focused on talent, international expansion and, most recently, innovation. Halma can unlock additional value for shareholders and fulfil our purpose more fully, by leveraging the collective capabilities while retaining our culture and organizational model. To facilitate this, the Executive Board has been streamlined to reduce the number of Sector CEOs from four to two, with Paul Simmons responsible for the two Safety sectors and Adam Meyers leading the Medical and Environmental sectors. This will allow greater visibility of, and direct interaction between, the Executive Board and the operating company Chairmen while still providing scope for scalability of our organization. Digital Growth Potential Inken Braunschmidt, Halma’s Chief Innovation & Digital Officer, then gave a brief summary of her early impressions of Halma and its digital growth potential. These include identifying the additional opportunities arising from digital connectivity, which enable the convergence of technical and market capabilities of different Halma companies with each other and with external partners. No trading information was given during the meeting. Halma’s next trading update is scheduled for 22nd March, 2018.