Halma Delivers Record First-Half Revenue and Profit; Shares Are Fairly Valued

Having released a trading update five weeks prior, there were no surprises to narrow-moat Halma’s first-half performance that saw record half-year revenue and profit. Organic revenue grew 9.5% year over year reaching record levels, of which 4% was from price increases to compensate higher inflation. Revenue is expected to continue to progress during the second half of the financial year as order intake has continued to grow ahead of revenue, while its acquisition pipeline remains healthy, despite only two acquisitions having been announced during the first half of the financial year. Operating profit growth of 11% was largely composed of favorable currency movements and 2% organic growth. Shares are currently fairly valued to our GBX 2,310 fair value estimate, which we reiterate.