Halma Annual Report 2005

Financial Highlights
  • Financial highlights
  • Chairman's statement
  • Chief executive's review
  • Financial review
  • Consolidated profit & loss account
  • Consolidated balance sheet
  • Consolidated cash flow statement
  • Ten year financial summary
  • Operating review            



    Change 2005 2004

    Turnover

    +2% £299.1m £292.6m

    Profit before taxation (1)

    0% £50.4m £50.3m

     

         

    Earnings per share (2)

    0% 9.42p 9.44p

    Earnings per share – statutory

    +31% 7.97p 6.09p

    Dividend per share

    +5% 6.50p 6.19p

     

         

    Return on sales (3)

    16.8% 17.2%

    Return on total invested capital (4)

    13.1% 13.7%

    Return on capital employed (5)

    62.4% 52.4%
    1. Before goodwill amortisation of £5,491,000 (2004: £4,220,000) and exceptional items on disposal of non-core businesses of £nil (2004: £9,149,000).
    2. Before goodwill amortisation of 1.45p (2004: 1.07p) and exceptional items of nil (2004: 2.28p) per share.
    3. Return on sales is defined as profit (1) before taxation expressed as a percentage of turnover.
    4. Return on total invested capital is defined as profit before goodwill amortisation and exceptional items and after taxation of £34,690,000 (2004: £34,557,000) expressed as a percentage of net assets plus goodwill in reserves of £70,931,000 (2004: £70,931,000) and cumulative goodwill amortisation of £18,668,000 (2004: £13,177,000).
    5. Return on capital employed is defined as profit (1) before taxation expressed as a percentage of net tangible assets (being equity shareholders’ funds less intangible assets).

    Highlights of the year

    • Pre-tax profits (1) of £50.4m marginally exceed last year’s record level (2004 – 53 week period: £50.3m). On a statutory basis, profit before taxation was £44.9 million (2004: £36.9 million).

    • Turnover from ongoing operations up 7% at £299.1m (2004: £279.6m), reflecting an increased contribution from the Group’s enlarged Optics and Specialist business.

    • Healthy margins maintained as Halma consistently delivers strong returns, with return on capital employed (5) of 62% and return on total invested capital (4) of 13%.

    • Strong cash generation with two high quality acquisitions made and no gearing at year end (net cash £12m).

    • Continuation of progressive dividend policy with an increase of 5%.

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