Health, safety and environmental technology group Halma (HLMA) has sold its fibre optic technology business to US connected tech firm Molex in a $38 million deal.
Idaho-based Fiberguide was bought by Halma in 2008. It makes fibre optic assemblies that manage high temperatures and power, and a host of other bits of hi-tech kit. But the business has increasingly looked out of place with Halma’s strategic positioning to help create a safer, cleaner and healthier world future backed by population growth, urbanisation and digitalisation.
‘The divestment is in line with Halma's strategy of actively managing its portfolio of global businesses to ensure it is aligned with its purpose and maintains strong growth and returns over the long term’, the company said.
Shares in FTSE 100 stock Halma rose more than 1%, or 26p, to £24.67 on Friday, substantially more than the UK’s main benchmark index’s 0.13%.
HIGHLY-RATED HALMA
Halma, which has earned a reputation for operational excellence and consistent growth, reported half year results (to 30 September 2020) last month showing declines in revenue and profits as the Covid-19 pandemic disrupted business.
Revenue, adjusted pre-tax profit and earnings all reversed 5%, although sales fell 11% after stripping out the benefit of acquisitions. But the company pointed to encouraging signs of recovery by saying that order intake was ahead of revenue and up on same period last year.
That puts the company on track to cap full year declines to the lower end of its 5% to 10% guidance, issued during the initial outbreak.
‘Halma is a high-quality business with long-term growth drivers and strong operating margins’, said Shore Cap analysts following those figures.
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