Business

British device maker Halma’s shares slump on slower annual growth forecast

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June 11 : British health and safety device maker Halma forecast organic constant-currency revenue growth for fiscal 2027 at a slower rate than the previous year, sending its shares down nearly 15 per cent on Thursday. 

Here are a few details:   

• The company expects to deliver low double-digit percentage organic revenue growth in constant currency for the 12-month period through March 2027, compared with 16 per cent organic growth in fiscal 2026.

• Halma’s growth has been driven by its photonics business, which uses light-based technology in sensors and monitoring systems, including for data centres, due to demand fuelled by the rapid expansion of AI.

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• The company’s outlook includes growth of around five percentage points from the photonics business, which JP Morgan analysts said would likely disappoint investors.

• Halma’s outlook suggested a deceleration in revenue growth for both the photonics business and the rest of the group, Morningstar analyst Matthew Donen said.

• Shares in FTSE 100-listed Halma were trading lower at 3,962 pence, as of 0825 GMT, making them the biggest laggards in the blue-chip index.

• For the year ended March 31, the company’s adjusted pretax profit rose 23 per cent to £564.5 million ($755.2 million).

($1 = £0.7474)

Source: Reuters

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