Halma PLC on Thursday reported a fall in annual profit despite revenue rising, but it lifted its payout by 7.0%.

Shares were down 4.5% at 2,320.00 pence each on Thursday morning in London.

The Buckinghamshire-based safety equipment manufacturer reported revenue of £1.85 billion for the year ended on March 31, up 21% from £1.53 billion the year before. Analysts’ revenue consensus is for £1.80 billion.

The firm noted revenue growth in all sectors and regions, including on an organic constant currency basis.

Pretax profit was £291.5 million, down 4.2% from £304.4 million the year prior. Halma said the drop in profitability reflected the non-recurrence of a £34.0 million gain on a disposal in the year prior. Excluding this gain, pretax profit was up 8% year-on-year, it said.

Adjusted pretax profit was up 14% to £361.3 million from £316.2 million the year before. This is in line with Halma’s forecast range of £353.1 million and £369.9 million and beats analyst consensus of £361 million, above the firm’s own guidance.

Group Chief Executive Marc Ronchetti said: ‘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.’

Halma declared a final dividend of 12.34 pence per share, up 7.0% from 11.53p a year prior. Total dividend for the year amounted to 20.20p per share, also up 7.0% from 18.88p in financial 2022. The consensus forecast is for a full-year dividend pay-out is 20.4 pence per share.

Looking ahead, Halma said it has made a positive start to the new financial year, with a strong order book and order intake is in line with revenue.

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