More on Halma
Halma: 2005/6 results
Sensor and safety equipment manufacturer Halma’s organic revenue growth strengthened further in the second half and reached 10.8% for the full year, with acquisitions adding another 5%.
Operating margin strengthened slightly, adding another 5% to operating profit, bring operating profit growth to 21%. With interest expenses somewhat higher the rise in pre-tax profit (20.3%) and adjusted EPS (20%).
Halma’ strong performance, the strong underlying fundamentals of its markets and continuing cyclical recovery in engineering make us optimistic about its outlook.
Halma is not particularly cheap on a prospective PE of nearly 15× and a 3.6% yield, however there are very few in the sector with such strong growth - i.e. comfortably double digit medium term EPS growth.
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