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

Simon Mugo trader
Updated 15 Jun 2023

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.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


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.

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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 20th consecutive year of profit growth and our 44th 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.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading