Here’s Why Halma Shares Fell 9.4% Despite Upbeat FY’23 Results

The Halma plc (LON: HLMA) share price fell 9.35% after releasing its financial results for the 12 months to 31 March 2023, where it generated revenues worth £1,852.8 million, marking a 21% improvement to the £1,525.3 million generated in 2022.

Still, the company’s shares fell despite its adjusted pre-tax profits of £361.3 million, representing a 14% improvement from the £316.2 million recorded in the 2022 financial year. The firm noted that this was its 20th consecutive year of record profits.

However, the company’s statutory profit before tax was down 4%, primarily reflecting the non-recurrence of a gain on disposal of £34.0m in the previous year. Otherwise, the print would have been up 8%, excluding the one-time gain.

The global group of life-saving technology companies focused on growing a safer, cleaner, healthier future for everyone daily revealed that it invested over half a billion pounds to support its future growth. 

Halma completed seven acquisitions during the year for a combined maximum total consideration of £397 million. The company has since completed two more acquisitions after the period ended, worth a maximum total consideration of about £57 million. The company noted that it has a healthy acquisition pipeline across all sectors.

The company’s research and development (R&D) expenditure rose £17 million to £103 million, representing 5.5% of revenue. The company also increased its investment in technology by £7 million to £18 million. 

Halma shares fell despite the positive earnings results on negative investor sentiment but had recouped most of its earlier losses. 

Marc Ronchetti, Halma’s Group CEO, commented: “2023 was a successful year for Halma, reflecting the contributions and continued commitment to our purpose of everyone at Halma. We delivered record revenue and profit, achieving our 20^th consecutive year of profit growth and our 44^th consecutive year of dividend per share growth of 5% or more. At the same time, we substantially increased strategic investment to record levels, increasing our opportunities for future growth through organic investment and strategic acquisitions while maintaining a solid balance sheet. We have made a positive start to the new financial year.” 

*This is not investment advice. 

Halma share price. 

The Halma share price fell 9.35% to trade at 2201.0p, from Wednesday’s closing price of 2428.0p.