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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Halma’s record profit streak set to end

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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Health, safety and environmental electronics equipment designer
Halma (HLMA) says a 17-year track record of consecutive annual revenue and profit growth won’t extend into next year.
The downgrade – with management suggesting pre-tax profit will drop between 5% and 10% in the financial year to 31 March 2021 – disappointed the market and sent the shares down more than 5% to £21.75 on 14 July.
This fall is worth keeping in perspective with Halma still within sight of the record high of £23.77 set in June and, assuming a 10% fall in earnings, trading on a forward price-to-earnings ratio of 49.7-times.
Over the last 10 years it has delivered a total return of nearly 700% according to SharePad, covering share price gains and dividends. These gains have been underpinned by a successful strategy built on modest acquisitions and exposure to trends around health and safety regulation and demand for healthcare and life-critical resources.
Halma’s order book continues to grow and revenue in the three months to 30 June was down just 4%. The dividend was lifted for the 41st consecutive year, up 5% to 15.7p.
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