Halma’s profits rise to new record, dividend hiked for 42nd straight year

first_img Image source: Getty Images Royston Wild | Thursday, 10th June, 2021 | More on: HLMA Don’t miss our special stock presentation.It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.That’s why they’re referring to it as the FTSE’s ‘double agent’.Because they believe it’s working both with the market… And against it.To find out why we think you should add it to your portfolio today… Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Halma. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Enter Your Email Addresscenter_img Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! Halma’s profits rise to new record, dividend hiked for 42nd straight year Price action remains pretty muted in Thursday afternoon business. The FTSE 100 and FTSE 250 are trading fractionally higher and lower, respectively, as market participants eagerly await key economic data on Friday. The Halma (LSE: HLMA) share price is one that remains flattish despite the release of fresh financial news.The FTSE 100 company was recently trading 1% lower on the day at £26.60 per share. This is just off yesterday’s record closing highs of £26.80 and suggests Halma’s full-year numbers were in line with forecasts.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Halma raises dividends for 42nd yearSafety equipment supplier Halma saw revenues during the 12 months to March 2021 drop 1.5% year-on-year to £1.32bn, it said. Sales dropped 5.4% during the first half as the Covid-19 outbreak ballooned. But the top line increased 2.2% in the final six months.Organic sales at constant currencies meanwhile dropped 5.6% from financial 2020, though an 11% drop in the first half improved to a 0.3% dip in the second half.Last year’s sales drop didn’t knock Halma’s proud record of profits increases off the tracks, however. Adjusted profit before tax rose 4.2% year-on-year to £278.3m, while on a statutory basis pre-tax profit was £252.9m, up 12.9%. This was the 18th year on the spin that the FTSE 100 firm has printed record profits.Further progress here has allowed Halma to raise annual dividends yet again. For financial 2021 it plans to pay a total dividend of 17.65p, up 7%. This makes it 42 years on the bounce that the UK electronics share has raised the annual payout.Starting the new year stronglyPleasingly, Halma said that it has made a strong start to the current financial year, too. Order intake is ahead of turnover and surpassing levels recorded last year. Halma also mentioned that organic revenues at constant currencies from the start of January to the end of May are up 10% year-on-year.Andrew Williams, chief executive at the FTSE 100 firm, said that “we expect our markets to continue to recover, albeit at varying rates”, though he added that the company could face multiple headwinds including inflation, supply chain troubles, and adverse exchange rates.Williams expects Halma to deliver a low double-digit percentage rise in organic sales (at constant currencies) in financial 2022. He said too that the company has “a good pipeline of potential acquisition opportunities”.Expensive but exceptionalThe Halma share price has risen an impressive 184% during the past 12 months. And I expect it to keep rising as awareness of — and legislation related to — the safety and protection of people and the broader environment gathers pace. Profits at the firm could be blown off course if the pandemic worsens again, in turn derailing its operations as well as the broader economy.Still, I believe the long-term future for this FTSE 100 share remains exceptionally bright. The Halma share price commands a high forward price-to-earnings (P/E) ratio of 39 times. But I think this high-calibre and ultra-reliable UK share deserves such a premium rating and I’d happily add it to my own investment portfolio. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. See all posts by Royston Wildlast_img

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