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HLMA Halma Plc

2,368.00
32.00 (1.37%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Halma Plc LSE:HLMA London Ordinary Share GB0004052071 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  32.00 1.37% 2,368.00 2,357.00 2,359.00 2,358.00 2,330.00 2,344.00 1,232,707 16:35:06
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Electrical Machy, Equip, Nec 1.85B 234.5M 0.6212 37.94 8.9B

Halma PLC Half-year Report (0273X)

21/11/2017 7:00am

UK Regulatory


TIDMHLMA

RNS Number : 0273X

Halma PLC

21 November 2017

 
                      HALMA plc 
               HalF YEAR RESULTS 2017/18 
   Record first half results and continued dividend 
                        growth 
 
 
  Halma, the leading safety, health and environmental 
    technology group, today announces its half year 
    results for the 6 months to 30 September 2017. 
 
  Highlights 
 
 
 
                                           Change        2017        2016 
 Continuing Operations 
 Revenue                                      15%   GBP506.3m   GBP442.1m 
 Adjusted Profit before Taxation(1,5)         13%    GBP94.5m    GBP83.6m 
 Adjusted Earnings per Share(2,5)             12%      19.37p      17.23p 
 
 Statutory Profit before Taxation             18%    GBP76.8m    GBP65.2m 
 Statutory Earnings per Share                 18%      16.27p      13.79p 
 Interim Dividend per Share(3)                 7%       5.71p       5.33p 
 
 Return on Sales(4)                                     18.7%       18.9% 
 Return on Total Invested 
  Capital(5)                                            13.4%       13.8% 
 Net Debt                                           GBP181.0m   GBP237.3m 
 
 
 
   --     Revenue up 15% with Adjusted(1) pre-tax profit 
          up 13%. Organic constant currency growth(5) 
          : revenue up 9%, profit up 8%. 
 
   --     All four sectors achieved good organic constant 
          currency revenue growth. 
 
   --     Revenue growth in all major regions. Significant 
          growth in Asia Pacific where revenue exceeded 
          the UK for the first time; good progress in 
          the USA, Mainland Europe and Other regions. 
 
   --     Strong profit growth in the Process Safety, 
          Infrastructure Safety and Environmental & Analysis 
          sectors; Medical sector profit marginally lower 
          although on track to improve profitability in 
          the second half. 
 
   --     Strong returns with Return on Sales(4) of 18.7% 
          and ROTIC(5) of 13.4%. R&D expenditure up 19%, 
          representing 5.4% of revenue. 
 
   --     Interim dividend up 7%. 
 
   --     Good cash generation and strong balance sheet 
          support sustained strategic investment; healthy 
          acquisition pipeline with two acquisitions completed 
          in the first half and two further acquisitions 
          completed since the period end. 
 
 
 Andrew Williams, Chief Executive of Halma, commented: 
 
  "Halma has continued to make strong progress, 
  delivering record revenue, profit and dividends 
  for shareholders. The diversity of our business 
  and the evolution of our organisational model 
  through our four sectors is enabling us to sustain 
  growth in varied market conditions. Since the 
  period end, order intake has continued to be ahead 
  of revenue and order intake last year. Halma remains 
  on track to make progress in the second half of 
  the year in line with the Board's expectations." 
 
   Notes: 
 1   Adjusted to remove the amortisation and impairment 
      of acquired intangible assets, acquisition 
      items, restructuring costs and profit or loss 
      on disposal of operations, totalling GBP17.7m 
      (2016/17: GBP18.4m). See note 2 to the Condensed 
      Financial Statements for details. 
 2   Adjusted to remove the amortisation and impairment 
      of acquired intangible assets, acquisition 
      items, restructuring costs, profit or loss 
      on disposal of operations, and the associated 
      taxation thereon. See note 6 to the Condensed 
      Financial Statements for details. 
 3   Interim dividend declared per share. 
 4   Return on Sales is defined as adjusted(1) profit 
      before taxation from continuing operations 
      expressed as a percentage of revenue from continuing 
      operations. 
 5   Adjusted(1) Profit before Taxation, Adjusted(1) 
      Earnings per Share, organic growth rates and 
      Return on Total Invested Capital (ROTIC) are 
      alternative performance measures used by management. 
      See notes 2, 6 and 9 to the Condensed Financial 
      Statements for details. 
 
 
 For further information, please contact: 
 
 
 Halma plc 
  Andrew Williams, 
  Chief Executive 
  Kevin Thompson, 
  Finance Director       +44 (0)1494 721 111 
 MHP Communications 
  Rachel Hirst/Andrew 
  Jaques                 +44 (0)20 3128 8100 
 
 
 A copy of this announcement, together with other 
  information about Halma, may be viewed on its 
  website: www.halma.com. 
 
 
 NOTE TO EDITORS 
 
 
 1.   Halma develops and markets products used worldwide 
       to protect life and improve the quality of life. 
       The Group comprises four business sectors: 
      -- Process Safety   Products which protect assets 
                           and people at work. 
      -- Infrastructure   Products and services that improve 
       Safety              the safety and mobility of people 
                           and protect commercially and publicly 
                           owned infrastructure. 
      -- Medical          Products which enhance the quality 
                           of life for patients and improve 
                           the quality of care delivered 
                           by providers. 
      -- Environmental    Products and technologies for 
       & Analysis          analysis in environmental safety 
                           and life sciences markets. 
 
 
      The key characteristics of Halma's businesses 
       are specialist technology and application knowledge 
       for markets offering strong long term growth 
       potential. Many Group businesses are market 
       leaders in their specialist field. 
 2.   High resolution photos of Halma senior management, 
       including Chief Executive Andrew Williams, and 
       images illustrating Halma business activities 
       can be downloaded from its website: www.halma.com. 
       Click on the 'News & Media' link, then 'Media 
       Gallery'. 
 3.   You can view or download copies of this announcement 
       and the latest Half Year and Annual Reports 
       from the website at www.halma.com or request 
       free printed copies by contacting halma@halma.com. 
 4.   This announcement contains certain forward-looking 
       statements which have been made by the Directors 
       in good faith using information available up 
       until the date they approved the announcement. 
       Forward-looking statements should be regarded 
       with caution as by their nature such statements 
       involve risk and uncertainties relating to events 
       and circumstances that may occur in the future. 
       Actual results may differ from those expressed 
       in such statements, depending on the outcome 
       of these uncertain future events. 
 
 
 Review of Operations 
 
  Record half year results 
  Halma made strong progress during the first half 
  of the year. Revenue increased by 15% to GBP506m 
  (2016/17: GBP442m) including a positive currency 
  translation impact of 5%. Organic revenue growth 
  at constant currency was 9%. 
 
  Adjusted(1) profit before taxation increased by 
  13% to GBP94.5m (2016/17: GBP83.6m) including 
  a positive currency translation impact of 5%. 
  Organic profit growth at constant currency was 
  8%. 
 
  Return on Sales(1) remained strong at 18.7% (2016/17: 
  18.9%). The Gross Margin % was very slightly below 
  the prior year, with two sectors up and two down. 
 
  Our companies increased R&D expenditure by 19% 
  to GBP27.3m (2016/17: GBP23.0m) representing 5.4% 
  of Group revenue (2016/17: 5.2%) with higher rates 
  of investment in the Medical and Environmental 
  & Analysis sectors. 
 
  The Board has declared an increase of 7% in the 
  interim dividend to 5.71p per share (2016/17: 
  5.33p per share). The interim dividend will be 
  paid on 7 February 2018 to shareholders on the 
  register on 29 December 2017. For the past 38 
  years we have increased our full year dividend 
  by 5% or more each year. 
 
  Widespread revenue growth 
  We achieved revenue growth across all major regions 
  including organic growth at constant currency 
  in each region. 
 
  Asia Pacific revenue increased by 20%, including 
  14% organic constant currency growth. All sectors 
  grew with Infrastructure Safety and Environmental 
  & Analysis sectors delivering the strongest growth. 
  Sales to Asia Pacific exceeded those to the UK 
  for the first time. 
 
  The USA remains our largest sales destination 
  contributing 36% of total revenue, growing 13% 
  in the half year, 6% at organic constant currency. 
 
  Revenue in Mainland Europe increased by 14% and 
  in the UK by 9% with both regions achieving 9% 
  organic constant currency growth. Growth in the 
  Near and Middle East, Canada and Brazil contributed 
  to the strong growth in Other regions. 
 
  The tables below summarise revenue growth by destination 
  and by sector, including the underlying rates 
  of organic growth at constant currency. Organic 
  constant currency rates exclude the effect of 
  currency translation and acquisitions. 
  External revenue by destination 
                     Half year 2017/18    Half year 2016/17 
                   -------------------  ------------------- 
                                                                                 % organic 
                                                                                    growth 
                                  % of                 % of  Change        %   at constant 
                       GBPm      total      GBPm      total    GBPm   growth      currency 
  ---------------  --------  ---------  --------  ---------  ------  -------  ------------ 
  United States 
   of America         181.8        36%     160.8        36%    21.0      13%            6% 
  Mainland Europe     109.0        21%      96.0        22%    13.0      14%            9% 
  United Kingdom       79.8        16%      72.9        16%     6.9       9%            9% 
  Asia Pacific         83.9        17%      69.7        16%    14.2      20%           14% 
  Other regions        51.8        10%      42.7        10%     9.1      21%           14% 
  ---------------  --------  ---------  --------  ---------  ------  -------  ------------ 
                      506.3       100%     442.1       100%    64.2      15%            9% 
  ---------------  --------  ---------  --------  ---------  ------  -------  ------------ 
 
  External revenue 
   by sector 
                        Half      Half 
                        year      year 
                     2017/18   2016/17 
                    --------  -------- 
                                                            % organic 
                                                               growth 
                                        Change        %   at constant 
                        GBPm      GBPm    GBPm   growth      currency 
  ----------------  --------  --------  ------  -------  ------------ 
  Process Safety        88.8      76.7    12.1      16%           12% 
  Infrastructure 
   Safety              167.9     148.0    19.9      13%           10% 
  Medical              133.3     118.7    14.6      12%            5% 
  Environmental 
   & Analysis          116.5      98.8    17.7      18%           11% 
  Inter-segmental 
   revenue             (0.2)     (0.1)   (0.1)        -             - 
  ----------------  --------  --------  ------  -------  ------------ 
                       506.3     442.1    64.2      15%            9% 
  ----------------  --------  --------  ------  -------  ------------ 
 
 
 Strong revenue growth in all sectors 
      Infrastructure Safety revenue increased by 13% 
       to GBP167.9m (2016/17: GBP148.0m) including 10% 
       organic constant currency growth and a 3% positive 
       impact from currency translation. There was growth 
       in all major market segments with strong growth 
       in People & Vehicle flow. These trends contributed 
       to double-digit organic constant currency increases 
       in Asia Pacific, Mainland Europe and Other regions 
       with steady growth in the UK. Weaker demand in 
       our Fire businesses resulted in a mid single-digit 
       organic constant currency revenue decline in the 
       USA. 
 
       Profit(2) grew by 12% to GBP35.7m (2016/17: GBP32.0m) 
       including 9% organic constant currency growth 
       and a 3% positive impact from currency translation. 
       Return on Sales was a healthy 21.4% (2016/17: 
       21.6%). R&D expenditure increased by 7% to GBP9.4m 
       (2016/17: GBP8.8m). The sector is expected to 
       make continued progress in the second half. 
 
       In November 2017, following the period end, we 
       acquired Setco as a bolt-on for our global Elevator 
       Safety business, Avire. Setco is based in Barcelona, 
       Spain and adds new wireless communications technology 
       which is highly complementary to Avire's existing 
       product range and new product development roadmap. 
 
       Medical revenue was up by 12% to GBP133.3m (2016/17: 
       GBP118.7m) including 5% organic constant currency 
       growth, a 1% benefit from acquisitions in the 
       last year and a 6% positive impact from currency 
       translation. Our Ophthalmology and Sensors businesses 
       progressed well. We saw weaker performance in 
       our Patient Assessment businesses but our acquisitions 
       of CasMed and Cardios during the first half add 
       new blood pressure monitoring technology and geographic 
       presence to this market segment. The integration 
       of both businesses is proceeding well. 
 
       There was healthy single-digit organic constant 
       currency revenue growth in the UK, the USA and 
       Other regions. Organic constant currency revenue 
       was slightly up in Asia Pacific and slightly down 
       in Mainland Europe. 
 
       Profit(2) was GBP28.7m, which was marginally below 
       the prior year's GBP28.9m. This included 6% organic 
       constant currency decline and a 6% positive impact 
       from currency translation. Return on Sales reduced 
       from 24.3% in 2016/17 to 21.6%, due to both a 
       drop in Gross Margin % mainly due to mix effects 
       and an increase in overhead spend. The majority 
       of this overhead spend was targeted investment 
       in sales, marketing and new product development, 
       where R&D spend grew by 25% to GBP5.9m (2016/17: 
       GBP4.7m). 
 
       The sector has taken action to control discretionary 
       costs, which is expected to improve profitability 
       during the second half of the year. 
 
       Environmental & Analysis revenue rose by 18% to 
       GBP116.5m (2016/17: GBP98.8m) including 11% organic 
       constant currency growth, a 2% benefit from acquisitions 
       and a 5% positive impact from currency translation. 
       There was growth in all main business segments 
       with a strong performance in Spectroscopy & Photonics. 
       Organic constant currency revenue from the UK 
       and Asia Pacific increased significantly. There 
       was steadier organic growth from the USA and small 
       organic declines from Mainland Europe and Other 
       regions. 
 
       Profit(2) improved by an impressive 36% to GBP21.8m 
       (2016/17: GBP16.0m). Organic constant currency 
       profit growth was 27% and there was a 2% benefit 
       from acquisitions in the last year. Currency translation 
       had a 7% positive impact. Return on Sales improved 
       significantly from 16.2% up to 18.7%, as a result 
       of revenue growth this year and the trading impact 
       (and benefit) of restructuring completed in the 
       first half of last year. There was an improvement 
       in the Gross Margin % and increased investment 
       in new product development. R&D spend increased 
       by 33% to GBP8.9m (2016/17: GBP6.7m) to represent 
       7.6% of revenue. 
 
       The integration of FluxData, acquired in January 
       2017, is proceeding well. Companies both inside 
       and outside the sector are exploring collaborative 
       projects using their multi-spectral imaging technologies. 
       Following the half year end, the acquisition of 
       Mini-Cam in October 2017 added new waste water 
       pipeline monitoring solutions to our group of 
       Water businesses. 
 
       The sector is well positioned to make progress 
       in the second half, albeit with a stronger prior 
       year comparator. 
 
       Process Safety revenue increased by 16% to GBP88.8m 
       (2016/17: GBP76.7m). There was organic constant 
       currency growth of 12% and a 4% benefit from currency 
       translation. The Safety Interlocks and Pressure 
       Relief segments had good growth. Gas Detection 
       was in line with the prior year. There was organic 
       constant currency growth in all major regions, 
       with particularly high growth in the USA and Other 
       regions. There was good progress in Mainland Europe 
       and Asia Pacific with steadier growth from the 
       UK. 
 
       Profit(2) increased by 16% to GBP20.2m (2016/17: 
       GBP17.4m) including 13% organic constant currency 
       growth and a 3% positive impact from currency 
       translation. Return on Sales improved marginally 
       to 22.8% (2016/17: 22.7%). R&D spend was up 11% 
       to GBP3.1m (2016/17: GBP2.8m). The sector continues 
       to benefit from increased market diversification 
       and improved demand from the USA onshore energy 
       market while other segments of the Oil and Gas 
       market remain depressed. Despite the tougher comparators, 
       the sector is well placed to make progress in 
       the second half. 
 
       Four acquisitions completed 
       In July 2017, we acquired Cas Medical Systems, 
       Inc's (CasMed) non-invasive blood pressure monitoring 
       product line for an initial cash consideration 
       of $4.5m (GBP3.4m) with up to a further $2m (GBP1.5m) 
       payable based on achievement of certain sales 
       targets. 
 
       In August 2017, we completed the acquisition of 
       Cardios Sistemas Comercial e Industrial Ltda (Cardios) 
       located in Brazil. The initial cash consideration 
       was R$50m (GBP12.4m) with further payment of up 
       to R$5m (GBP1.2m) payable based on future growth. 
 
       In October 2017, following the period end, we 
       acquired Mini-Cam Enterprises Limited and its 
       subsidiaries (Mini-Cam). The initial consideration 
       was GBP62m, on a cash and debt-free basis, with 
       up to a further GBP23.1m payable based on annualised 
       profit growth to the end of March 2020. 
 
       In November 2017, we acquired Setco S.A. for a 
       cash consideration of EUR17m (GBP15.1m). Consolidated 
       31 December 2016 profit, adjusted to IFRS, was 
       EUR1.7m (GBP1.5m). 
 
       These transactions demonstrate our ability to 
       find attractive, high quality businesses both 
       in, and adjacent to, our existing sectors. The 
       pipeline of potential acquisitions has continued 
       to build across all sectors during the year. 
 
       Growing a safer, cleaner and healthier future 
       for everyone, every day 
       Halma has always had a strong sense of purpose 
       to make a positive impact on people's lives. 
 
       This core belief has helped us to build strong 
       competitive positions in market niches with long-term 
       growth drivers and has contributed to our sustained 
       success. 
 
       Over many years, these fundamentals have been 
       strengthened further by a relentless determination 
       to increase strategic investment in innovation, 
       international expansion and talent development, 
       both centrally and within each sector. 
 
       The desire to make a positive difference to people's 
       lives is encompassed in our newly articulated 
       purpose of 'Growing a safer, cleaner and healthier 
       future for everyone, every day'. This refined 
       purpose statement will help to provide greater 
       alignment across the Group as we confront the 
       challenges and opportunities of the 4(th) Industrial 
       Revolution, where technologies and industries 
       are converging to create new value. 
 
       Our portfolio of companies means that we are uniquely 
       positioned to take advantage of these opportunities. 
       As we continue to evolve our strategy we will 
       ensure that we use our ecosystem to leverage the 
       diverse skills and assets we have at our disposal 
       to create even more value for the Group. 
 
       This means that in addition to our commitment 
       to continuing to grow our Core, we are exploring 
       new ways to help our companies to add growth opportunities 
       which require a Convergence of technologies and 
       capabilities between two or more businesses and 
       new business models. 
 
       In addition, we are building a stronger network 
       of internal and external partnerships to provide 
       us with a greater insight into new digital growth 
       strategies or technologies at the Edge of our 
       current strategic horizons. 
 
       Currency impacts 
       Currency translation had a positive impact on 
       the half year results. We report our results in 
       Sterling with approximately 45% of Group revenue 
       denominated in US Dollars and approximately 15% 
       in Euros. Average exchange rates are used to translate 
       results in the Income Statement. Sterling weakened 
       during the first half of 2017/18 and has remained 
       relatively weak in the period since. This resulted 
       in a 5% positive currency translation impact on 
       Group revenue and profit in the first half of 
       2017/18 relative to 2016/17. In the second half 
       of 2017/18, if exchange rates remain at current 
       levels, we expect the positive currency impact 
       seen in the first half to reverse, resulting in 
       a small positive impact for the year as a whole. 
 
       Pension deficit 
       On an IAS19 basis the deficit on the Group's defined 
       benefit plans at the half year has reduced to 
       GBP66.8m (1 April 2017: GBP74.9m) before the related 
       deferred tax asset. The value of plan liabilities 
       reduced due to an increase in the discount rate 
       used to value those liabilities and further employer 
       contributions also reduced the plan deficit. There 
       will be a triennial valuation of the two UK defined 
       benefit pension plans as at December 2017 and 
       April 2018, leading to a review of the amount 
       and timing of future employer contributions to 
       reduce the pension deficit. 
 
       Cash flow and funding 
       Cash conversion (adjusted operating cash flow 
       as a percentage of adjusted operating profit) 
       was 84% (2016/17: 84%) just below our cash conversion 
       target of 85%. Working capital increased more 
       than in the first half of the prior year with 
       higher rates of underlying revenue growth and 
       inventory for new products. As well as continued 
       organic investment, dividend and tax payments 
       increased this half year. Capital expenditure 
       of GBP10.1m (2016/17: GBP11.4m) was 12% lower 
       than the prior year due primarily to less property 
       related expenditure. 
 
       Net debt at the end of the period was GBP181m 
       (1 April 2017: GBP196m). Gearing (the ratio of 
       net debt to EBITDA) at half year end was 0.8 times 
       (1 April 2017: 0.86 times), comfortably within 
       our typical operating range of up to 2 times gearing. 
 
       In November 2017 we extended the GBP550m Revolving 
       Credit Facility, put in place in November 2016, 
       by a further year to 2022. The combination of 
       good cash generation, a healthy balance sheet 
       and committed external financial resources provides 
       us with the capacity we need to invest in organic 
       growth and acquisitions to meet our growth objectives 
       as well as to sustain our progressive dividend 
       policy. 
 
       Risks and uncertainties 
       A number of potential risks and uncertainties 
       exist which could have a material impact on the 
       Group's performance over the second half of the 
       financial year and could cause actual results 
       to differ materially from expected and historical 
       results. The Group has processes in place for 
       identifying, evaluating and managing key risks. 
       These risks, together with a description of our 
       approach to mitigating them, are set out on pages 
       22 to 27 of the Annual Report and Accounts 2017, 
       which is available on the Group's website at www.halma.com. 
       The principal risks and uncertainties relate to 
       operational, strategic, legal, financial, cyber, 
       people and economic issues. See note 15 to the 
       Condensed Financial Statements for further details. 
 
       The UK referendum decision in June 2016 and the 
       subsequent triggering of Article 50 in March 2017 
       mean that the UK is now scheduled to leave the 
       European Union by the end of March 2019. This 
       decision has created a new dimension to the uncertainties 
       surrounding global economic growth. 
 
       In 2016/17, approximately 10% of Group revenue 
       came from direct sales between the UK and Mainland 
       Europe. 
       To date, the following Brexit risks have been 
       identified as having an actual and/or potential 
       impact on our business: 
 
        *    Economic conditions: increased overall uncertainty 
             including the specific impacts on growth, inflation, 
             interest and currency rates 
 
 
        *    Defined benefit pension liability: movements in bond 
             yields affecting discount rates which may increase 
             the liability 
 
 
        *    Laws and regulations: potential changes to UK and 
             EU-based law and regulation including product 
             approvals, patents and import/export tariffs 
 
 
        *    Talent: mobility of the workforce 
 
 
 
       Halma has an executive working group to assess 
       and monitor the potential impact on us of Brexit, 
       to communicate updates and support our businesses 
       in preparing for the range of possible outcomes. 
 
       Our decentralised model, with businesses in diverse 
       markets and locations, will enable each Halma 
       company to adapt quickly to changing trading conditions. 
       This agility, together with the regulation driven 
       demand for many of our products and services, 
       will help us to mitigate any adverse impact and 
       also take advantage of the opportunities presented 
       by the decision to leave the European Union. 
 
       In 2017/18, the Board commissioned an external 
       review of Halma's cyber related control framework. 
       This review highlighted the strengths of our existing 
       structure and identified further improvements 
       in cyber controls and assurance. 
 
       The Directors do not consider that the principal 
       risks and uncertainties have changed since the 
       publication of the Annual Report and Accounts 
       2017 and confirm that they remain relevant for 
       the second half of the financial year. As part 
       of their ongoing assessment of risk throughout 
       the period, the Directors have considered the 
       above risks in the context of the Group's delivery 
       of its financial objectives. Movements in foreign 
       exchange rates continue to remain a risk to financial 
       performance. 
 
       Going concern 
       After conducting a review of the Group's financial 
       resources, the Directors have a reasonable expectation 
       that the Group has adequate resources to continue 
       in operational existence for the foreseeable future. 
       For this reason they continue to adopt the going 
       concern basis in preparing the Condensed Financial 
       Statements. 
 
       Board changes 
       In July 2017, the Board announced that Marc Ronchetti, 
       currently Group Financial Controller, will succeed 
       Kevin Thompson as Group Finance Director. The 
       transition process is underway and it is anticipated 
       that it will be completed no later than 31 July 
       2018. 
 
       Outlook 
       Halma has continued to make strong progress, delivering 
       record revenue, profit and dividends for shareholders. 
       The diversity of our business and the evolution 
       of our organisational model through our four sectors 
       is enabling us to sustain growth in varied market 
       conditions. Since the period end, order intake 
       has continued to be ahead of revenue and order 
       intake last year. Halma remains on track to make 
       progress in the second half of the year in line 
       with the Board's expectations. 
 Andrew Williams                    Kevin Thompson 
  Chief Executive                    Finance Director 
 
   (1) See Highlights. 
   (2) See note 2 to the Condensed Financial Statements. 
 
 
       Independent review report to Halma plc 
 
        Report on the Half Year Report 
        Our conclusion 
        We have reviewed Halma plc's half year financial 
        information (the "interim financial statements") 
        in the Half Year Report of Halma plc for the 6 
        months ended 30 September 2017. Based on our review, 
        nothing has come to our attention that causes 
        us to believe that the interim financial statements 
        are not prepared, in all material respects, in 
        accordance with International Accounting Standard 
        34, 'Interim Financial Reporting', as adopted 
        by the European Union and the Disclosure Guidance 
        and Transparency Rules sourcebook of the United 
        Kingdom's Financial Conduct Authority. 
 
        What we have reviewed 
        The interim financial statements comprise: 
 
         *    the Consolidated Balance Sheet as at 30 September 
              2017; 
 
 
         *    the Consolidated Income Statement and Consolidated 
              Statement of Comprehensive Income and Expenditure for 
              the period then ended; 
 
 
         *    the Consolidated Cash Flow Statement for the period 
              then ended; 
 
 
         *    the Consolidated Statement of Changes in Equity for 
              the period then ended; and 
 
 
         *    the explanatory notes to the interim financial 
              statements. 
 
 
 
        The interim financial statements included in the 
        half year report have been prepared in accordance 
        with International Accounting Standard 34, 'Interim 
        Financial Reporting', as adopted by the European 
        Union and the Disclosure Guidance and Transparency 
        Rules sourcebook of the United Kingdom's Financial 
        Conduct Authority. 
 
        As disclosed in note 1 to the interim financial 
        statements, the financial reporting framework 
        that has been applied in the preparation of the 
        full annual financial statements of the Group 
        is applicable law and International Financial 
        Reporting Standards (IFRSs) as adopted by the 
        European Union. 
 
        Responsibilities for the interim financial statements 
        and the review 
        Our responsibilities and those of the directors 
        The Half Year Report, including the interim financial 
        statements, is the responsibility of, and has 
        been approved by, the directors. The directors 
        are responsible for preparing the half year report 
        in accordance with the Disclosure Guidance and 
        Transparency Rules sourcebook of the United Kingdom's 
        Financial Conduct Authority. 
 
        Our responsibility is to express a conclusion 
        on the interim financial statements in the half 
        year report based on our review. This report, 
        including the conclusion, has been prepared for 
        and only for the company for the purpose of complying 
        with the Disclosure Guidance and Transparency 
        Rules sourcebook of the United Kingdom's Financial 
        Conduct Authority and for no other purpose. We 
        do not, in giving this conclusion, accept or assume 
        responsibility for any other purpose or to any 
        other person to whom this report is shown or into 
        whose hands it may come save where expressly agreed 
        by our prior consent in writing. 
 
        What a review of interim financial statements 
        involves 
        We conducted our review in accordance with International 
        Standard on Review Engagements (UK and Ireland) 
        2410, 'Review of Interim Financial Information 
        Performed by the Independent Auditor of the Entity' 
        issued by the Auditing Practices Board for use 
        in the United Kingdom. A review of interim financial 
        information consists of making enquiries, primarily 
        of persons responsible for financial and accounting 
        matters, and applying analytical and other review 
        procedures. 
 
        A review is substantially less in scope than an 
        audit conducted in accordance with International 
        Standards on Auditing (UK) and, consequently, 
        does not enable us to obtain assurance that we 
        would become aware of all significant matters 
        that might be identified in an audit. Accordingly, 
        we do not express an audit opinion. 
 
        We have read the other information contained in 
        the half year report and considered whether it 
        contains any apparent misstatements or material 
        inconsistencies with the information in the interim 
        financial statements. 
 
 
 
        PricewaterhouseCoopers LLP 
        Chartered Accountants 
        Uxbridge 
        21 November 2017 
 
 
Half year results 2017/18 
 
 Condensed Financial Statements 
 
 Consolidated Income Statement 
 
                                                                                                             Audited 
                                                                                                            52 weeks 
                                                        Unaudited                               Unaudited         to 
                                                   6 months to 30                   26 weeks to 1 October    1 April 
                                                   September 2017                                    2016       2017 
                           --------------------------------------  --------------------------------------  --------- 
                                          Adjustments*                            Adjustments* 
                                  Before         (note                    Before         (note 
                            adjustments*            2)      Total   adjustments*            2)      Total      Total 
                    Notes         GBP000        GBP000     GBP000         GBP000        GBP000     GBP000     GBP000 
------------------  -----  -------------  ------------  ---------  -------------  ------------  ---------  --------- 
Continuing 
 operations 
Revenue                 2        506,329             -    506,329        442,121             -    442,121    961,662 
------------------  -----  -------------  ------------  ---------  -------------  ------------  ---------  --------- 
Operating 
 profit                           99,489      (17,722)     81,767         88,564      (18,405)     70,159    167,070 
Share of results 
 of associates                     (112)             -      (112)           (43)             -       (43)       (81) 
Finance income          3            106             -        106             96             -         96        494 
Finance expense         4        (4,942)             -    (4,942)        (4,987)             -    (4,987)    (9,780) 
------------------  -----  -------------  ------------  ---------  -------------  ------------  ---------  --------- 
Profit before 
 taxation                         94,541      (17,722)     76,819         83,630      (18,405)     65,225    157,703 
Taxation                5       (21,083)         5,979   (15,104)       (18,398)         5,385   (13,013)   (28,014) 
------------------  -----  -------------  ------------  ---------  -------------  ------------  ---------  --------- 
Profit for 
 the period 
 attributable 
 to equity 
 shareholders                     73,458      (11,743)     61,715         65,232      (13,020)     52,212    129,689 
------------------  -----  -------------  ------------  ---------  -------------  ------------  ---------  --------- 
Earnings per 
 share 
from continuing 
 operations             6 
Basic and 
 diluted                          19.37p                   16.27p         17.23p                   13.79p     34.25p 
Dividends 
 in respect 
 of the period          7 
Dividends 
paid and proposed 
(GBP000)                                                   21,678                                  20,183     51,916 
Per share                                                   5.71p                                   5.33p     13.71p 
------------------  -----  -------------  ------------  ---------  -------------  ------------  ---------  --------- 
 
  * 
  Adjustments 
  include 
  the 
  amortisation 
  and 
  impairment 
  of 
  acquired 
  intangible 
  assets; 
  acquisition 
  items; 
  restructuring 
  costs; 
  profit 
  on 
  disposal 
  of 
  operations; 
  and 
  the 
  associated 
  taxation 
  thereon. 
 
 
                                   Consolidated Statement of Comprehensive Income and 
                                                                          Expenditure 
                                                     Unaudited   Unaudited    Audited 
                                                      6 months    26 weeks   52 weeks 
                                                            to          to         to 
                                                  30 September   1 October    1 April 
                                                          2017        2016       2017 
                                                        GBP000      GBP000     GBP000 
-----------------------------------------------  -------------  ----------  --------- 
Profit for the period                                   61,715      52,212    129,689 
-----------------------------------------------  -------------  ----------  --------- 
Items that will not be reclassified 
 subsequently to the Income Statement: 
Actuarial gains/(losses) on defined 
 benefit pension plans                                   3,506    (45,838)   (31,059) 
Tax relating to components of other 
 comprehensive income that will not 
 be reclassified                                         (667)       9,168      6,082 
Items that may be reclassified subsequently 
 to the Income Statement: 
Effective portion of changes in fair 
 value of cash flow hedges                               (265)       (453)      1,197 
Exchange (losses)/gains on translation 
 of foreign operations and net investment 
 hedge                                                (36,687)      57,825     74,810 
Tax relating to components of other 
 comprehensive income that may be reclassified              51          91      (233) 
-----------------------------------------------  -------------  ----------  --------- 
Other comprehensive (expense)/income 
 for the period                                       (34,062)      20,793     50,797 
-----------------------------------------------  -------------  ----------  --------- 
Total comprehensive income for the 
 period attributable to equity shareholders             27,653      73,005    180,486 
-----------------------------------------------  -------------  ----------  --------- 
 
  The exchange losses of GBP36,687,000 (26 weeks to 1 
  October 2016 gains: GBP57,825,000; 52 weeks to 1 April 
  2017 gains: GBP74,810,000) include gains of GBP6,915,000 
  (26 weeks to 1 October 2016 losses: GBP16,267,000; 
  52 weeks to 1 April 2017 losses: GBP21,305,000) which 
  relate to net investment hedges. 
 
 
Consolidated Balance Sheet 
                                              Unaudited   Unaudited    Audited 
                                           30 September   1 October    1 April 
                                                   2017        2016       2017 
                                   Notes         GBP000      GBP000     GBP000 
---------------------------------  -----  -------------  ----------  --------- 
Non-current assets 
Goodwill                                        586,757     586,940    603,553 
Other intangible assets                         216,420     235,473    234,430 
Property, plant and equipment                   102,620     103,417    106,016 
Interests in associates                           3,431       3,660      3,553 
Deferred tax asset                               55,340      52,725     56,866 
---------------------------------  -----  -------------  ----------  --------- 
                                                964,568     982,215  1,004,418 
---------------------------------  -----  -------------  ----------  --------- 
Current assets 
Inventories                                     124,231     113,757    118,780 
Trade and other receivables                     203,408     179,659    212,236 
Tax receivable                                      386         474        124 
Cash and cash equivalents                        71,671      76,093     66,827 
Derivative financial instruments      12            592         135        598 
---------------------------------  -----  -------------  ----------  --------- 
                                                400,288     370,118    398,565 
---------------------------------  -----  -------------  ----------  --------- 
Total assets                                  1,364,856   1,352,333  1,402,983 
---------------------------------  -----  -------------  ----------  --------- 
Current liabilities 
Trade and other payables                        125,730     109,841    134,816 
Borrowings                                          180       2,161      1,351 
Provisions                                        4,752       5,571      6,776 
Tax liabilities                                  14,897      12,446     16,055 
Derivative financial instruments      12            410       1,920        315 
---------------------------------  -----  -------------  ----------  --------- 
                                                145,969     131,939    159,313 
---------------------------------  -----  -------------  ----------  --------- 
Net current assets                              254,319     238,179    239,252 
---------------------------------  -----  -------------  ----------  --------- 
Non-current liabilities 
Borrowings                                      252,481     311,252    261,918 
Retirement benefit obligations        11         66,825      94,024     74,856 
Trade and other payables                         11,383      11,387     11,221 
Provisions                                       16,888      18,859     16,917 
Deferred tax liabilities                         95,995      94,304    100,121 
---------------------------------  -----  -------------  ----------  --------- 
                                                443,572     529,826    465,033 
---------------------------------  -----  -------------  ----------  --------- 
Total liabilities                               589,541     661,765    624,346 
---------------------------------  -----  -------------  ----------  --------- 
Net assets                                      775,315     690,568    778,637 
---------------------------------  -----  -------------  ----------  --------- 
Equity 
Share capital                                    37,965      37,965     37,965 
Share premium account                            23,608      23,608     23,608 
Own shares                                      (3,669)     (4,896)    (7,263) 
Capital redemption reserve                          185         185        185 
Hedging reserve                                     140       (972)        354 
Translation reserve                             113,510     133,212    150,197 
Other reserves                                 (10,294)     (9,481)    (6,323) 
Retained earnings                               613,870     510,947    579,914 
---------------------------------  -----  -------------  ----------  --------- 
Shareholders' funds                             775,315     690,568    778,637 
---------------------------------  -----  -------------  ----------  --------- 
 
 
 
  Consolidated Statement of Changes in Equity 
                                                                                 For the 6 months to 30 September 2017 
                       ----------------------------------------------------------------------------------------------- 
                                    Share               Capital 
                          Share   premium      Own   redemption   Hedging  Translation      Other   Retained 
                        capital   account   shares      reserve   reserve      reserve   reserves   earnings     Total 
                         GBP000    GBP000   GBP000       GBP000    GBP000       GBP000     GBP000     GBP000    GBP000 
---------------------  --------  --------  -------  -----------  --------  -----------  ---------  ---------  -------- 
At 1 April 2017 
 (audited)               37,965    23,608  (7,263)          185       354      150,197    (6,323)    579,914   778,637 
Profit for the 
 period                       -         -        -            -         -            -          -     61,715    61,715 
Other comprehensive 
 income and expense: 
Exchange differences 
 on translation 
 of foreign 
 operations                   -         -        -            -         -     (36,687)          -          -  (36,687) 
Actuarial gains 
 on defined benefit 
 pension plans                -         -        -            -         -            -          -      3,506     3,506 
Effective portion 
 of changes in fair 
 value of cash flow 
 hedges                       -         -        -            -     (265)            -          -          -     (265) 
Tax relating to 
 components of other 
 comprehensive income 
 and expense                  -         -        -            -        51            -          -      (667)     (616) 
---------------------  --------  --------  -------  -----------  --------  -----------  ---------  ---------  -------- 
Total other 
 comprehensive 
 income and expense           -         -        -            -     (214)     (36,687)          -      2,839  (34,062) 
Dividends paid                -         -        -            -         -            -          -   (31,733)  (31,733) 
Share-based payments 
 charge                       -         -        -            -         -            -      3,532          -     3,532 
Deferred tax on 
 share-based 
 payment transactions         -         -        -            -         -            -      (563)          -     (563) 
Excess tax deductions 
 related to 
 share-based 
 payments on 
 exercised 
 awards                       -         -        -            -         -            -          -      1,135     1,135 
Performance share 
 plan awards vested           -         -    3,594            -         -            -    (6,940)          -   (3,346) 
---------------------  --------  --------  -------  -----------  --------  -----------  ---------  ---------  -------- 
At 30 September 
 2017 (unaudited)        37,965    23,608  (3,669)          185       140      113,510   (10,294)    613,870   775,315 
---------------------  --------  --------  -------  -----------  --------  -----------  ---------  ---------  -------- 
 
 
Own shares are ordinary shares in Halma plc purchased 
 by the Company and held to fulfil the Company's obligations 
 under the Company's share plans. As at 30 September 
 2017 the number of treasury shares held was 3,990 (1 
 October 2016: 462,188; 1 April 2017: 462,188) and the 
 number of shares held by the Employee Benefit Trust 
 was 421,991 (1 October 2016: 262,417 and 1 April 2017: 
 512,417). 
 
 
                                                                                    For the 26 weeks to 1 October 2016 
                       --------  ------------------------------------------------------------------------------------- 
                                    Share               Capital 
                          Share   premium      Own   redemption   Hedging  Translation      Other   Retained 
                        capital   account   shares      reserve   reserve      reserve   reserves   earnings     Total 
                         GBP000    GBP000   GBP000       GBP000    GBP000       GBP000     GBP000     GBP000    GBP000 
---------------------  --------  --------  -------  -----------  --------  -----------  ---------  ---------  -------- 
At 2 April 2016 
 (audited)               37,965    23,608  (8,219)          185     (610)       75,387    (5,831)    523,855   646,340 
Profit for the 
 period                       -         -        -            -         -            -          -     52,212    52,212 
Other comprehensive 
 income and expense: 
Exchange differences 
 on translation 
 of foreign 
 operations                   -         -        -            -         -       57,825          -          -    57,825 
Actuarial losses 
 on defined benefit 
 pension plans                -         -        -            -         -            -          -   (45,838)  (45,838) 
Effective portion 
 of changes in fair 
 value of cash flow 
 hedges                       -         -        -            -     (453)            -          -          -     (453) 
Tax relating to 
 components of other 
 comprehensive income 
 and expense                  -         -        -            -        91            -          -      9,168     9,259 
---------------------  --------  --------  -------  -----------  --------  -----------  ---------  ---------  -------- 
Total other 
 comprehensive 
 income and expense           -         -        -            -     (362)       57,825          -   (36,670)    20,793 
Dividends paid                -         -        -            -         -            -          -   (29,609)  (29,609) 
Share-based payments 
 charge                       -         -        -            -         -            -      3,110          -     3,110 
Deferred tax on 
 share-based payment 
 transactions                 -         -        -            -         -            -      (127)          -     (127) 
Excess tax deductions 
 related to 
 share-based 
 payments on 
 exercised 
 awards                       -         -        -            -         -            -          -      1,159     1,159 
Performance share 
 plan awards vested           -         -    3,323            -         -            -    (6,633)          -   (3,310) 
---------------------  --------  --------  -------  -----------  --------  -----------  ---------  ---------  -------- 
At 1 October 2016 
 (unaudited)             37,965    23,608  (4,896)          185     (972)      133,212    (9,481)    510,947   690,568 
---------------------  --------  --------  -------  -----------  --------  -----------  ---------  ---------  -------- 
 
 
                                                                                      For the 52 weeks to 1 April 2017 
                       --------  ------------------------------------------------------------------------------------- 
                                    Share               Capital 
                          Share   premium      Own   redemption   Hedging  Translation      Other   Retained 
                        capital   account   shares      reserve   reserve      reserve   reserves   earnings     Total 
                         GBP000    GBP000   GBP000       GBP000    GBP000       GBP000     GBP000     GBP000    GBP000 
---------------------  --------  --------  -------  -----------  --------  -----------  ---------  ---------  -------- 
At 2 April 2016 
 (audited)               37,965    23,608  (8,219)          185     (610)       75,387    (5,831)    523,855   646,340 
Profit for the period         -         -        -            -         -            -          -    129,689   129,689 
Other comprehensive 
 income and expense: 
Exchange differences 
 on translation of 
 foreign operations           -         -        -            -         -       74,810          -          -    74,810 
Actuarial losses 
 on defined benefit 
 pension plans                -         -        -            -         -            -          -   (31,059)  (31,059) 
Effective portion 
 of changes in fair 
 value of cash flow 
 hedges                       -         -        -            -     1,197            -          -          -     1,197 
Tax relating to 
 components of other 
 comprehensive income 
 and expense                  -         -        -            -     (233)            -          -      6,082     5,849 
---------------------  --------  --------  -------  -----------  --------  -----------  ---------  ---------  -------- 
Total other 
 comprehensive 
 income and expense           -         -        -            -       964       74,810          -   (24,977)    50,797 
Dividends paid                -         -        -            -         -            -          -   (49,788)  (49,788) 
Share-based payments 
 charge                       -         -        -            -         -            -      6,076          -     6,076 
Deferred tax on 
 share-based payment 
 transactions                 -         -        -            -         -            -         65          -        65 
Excess tax deductions 
 related to 
 share-based 
 payments on 
 exercised 
 awards                       -         -        -            -         -            -          -      1,135     1,135 
Purchase of Own 
 shares                       -         -  (2,368)            -         -            -          -          -   (2,368) 
Performance share 
 plan awards vested           -         -    3,324            -         -            -    (6,633)          -   (3,309) 
---------------------  --------  --------  -------  -----------  --------  -----------  ---------  ---------  -------- 
At 1 April 2017 
 (audited)               37,965    23,608  (7,263)          185       354      150,197    (6,323)    579,914   778,637 
---------------------  --------  --------  -------  -----------  --------  -----------  ---------  ---------  -------- 
 
 
Consolidated Cash Flow Statement 
                                              Unaudited   Unaudited    Audited 
                                               6 months    26 weeks   52 weeks 
                                                     to          to         to 
                                           30 September   1 October    1 April 
                                                   2017        2016       2017 
                                   Notes         GBP000      GBP000     GBP000 
---------------------------------  -----  -------------  ----------  --------- 
Net cash inflow from operating 
 activities                            8         76,025      70,345    172,493 
---------------------------------  -----  -------------  ----------  --------- 
 
Cash flows from investing 
 activities 
Purchase of property, plant 
 and equipment                                  (9,134)    (10,728)   (21,875) 
Purchase of computer software                     (972)       (702)    (2,479) 
Purchase of other intangibles                     (117)       (209)      (281) 
Proceeds from sale of property, 
 plant and equipment                              1,177         287      1,495 
Development costs capitalised                   (5,034)     (4,814)   (10,731) 
Interest received                                   106          96        211 
Acquisition of businesses, 
 net of cash acquired                 10       (17,086)       (148)    (9,972) 
Net cash used in investing 
 activities                                    (31,060)    (16,218)   (43,632) 
---------------------------------  -----  -------------  ----------  --------- 
 
Cash flows from financing 
 activities 
Dividends paid                                 (31,733)    (29,609)   (49,788) 
Purchase of Own shares                                -           -    (2,368) 
Interest paid                                   (3,545)     (3,489)    (7,023) 
Loan arrangement fee paid                             -           -    (2,656) 
Proceeds from bank borrowings                    30,748           -          - 
Repayment of bank borrowings                   (33,300)           -   (54,761) 
Net cash used in financing 
 activities                                    (37,830)    (33,098)  (116,596) 
---------------------------------  -----  -------------  ----------  --------- 
 
Increase in cash and cash 
 equivalents                                      7,135      21,029     12,265 
Cash and cash equivalents 
 brought forward                                 65,637      49,526     49,526 
Exchange adjustments                            (1,106)       3,713      3,846 
---------------------------------  -----  -------------  ----------  --------- 
Cash and cash equivalents 
 carried forward                                 71,666      74,268     65,637 
---------------------------------  -----  -------------  ----------  --------- 
 
                                              Unaudited   Unaudited    Audited 
                                               6 months    26 weeks   52 weeks 
                                                     to          to         to 
                                           30 September   1 October    1 April 
                                                   2017        2016       2017 
                                                 GBP000      GBP000     GBP000 
----------------------------------------  -------------  ----------  --------- 
Reconciliation of net cash 
 flow to movement in net debt 
Increase in cash and cash equivalents             7,135      21,029     12,265 
Net cash outflow from repayment 
 of bank borrowings                               2,552           -     54,761 
Loan notes repaid in respect 
 of acquisitions                                    161         241        241 
Exchange adjustments                              5,604    (11,873)   (16,991) 
----------------------------------------  -------------  ----------  --------- 
                                                 15,452       9,397     50,276 
Net debt brought forward                      (196,442)   (246,718)  (246,718) 
----------------------------------------  -------------  ----------  --------- 
Net debt carried forward                      (180,990)   (237,321)  (196,442) 
----------------------------------------  -------------  ----------  --------- 
 
 
 Notes to the Condensed Financial Statements 
 1 Basis of preparation General information 
  The Half Year Report, which includes the Interim 
  Management Report and Condensed Financial Statements 
  for the 6 months to 30 September 2017, was approved 
  by the Directors on 21 November 2017. 
 
  Effective from this financial year, the Group changed 
  its reporting basis from weeks to calendar months. 
  The Half Year Report is prepared for the 6 month 
  period to 30 September 2017 and the Annual Report 
  will be prepared for the year to 31 March 2018. 
  For the current financial year, 26 weeks is equivalent 
  to 6 months so there is no difference between presentation 
  on a weekly or calendar months basis. 
 
  Basis of preparation 
  The Report has been prepared solely to provide additional 
  information to shareholders as a body to assess 
  the Board's strategies and the potential for those 
  strategies to succeed. It should not be relied on 
  by any other party or for any other purpose. 
 
  The Report contains certain forward-looking statements 
  which have been made by the Directors in good faith 
  using information available up until the date they 
  approved the Report. Forward-looking statements 
  should be regarded with caution as by their nature 
  such statements involve risk and uncertainties relating 
  to events and circumstances that may occur in the 
  future. Actual results may differ from those expressed 
  in such statements, depending on the outcome of 
  these uncertain future events. 
 
  The Report has been prepared in accordance with 
  International Accounting Standard 34, applying the 
  accounting policies and presentation that were applied 
  in the preparation of the Group's statutory accounts 
  for the 52 weeks to 1 April 2017, with the exception 
  of the policy for taxes on income, which in the 
  interim period is accrued using the effective tax 
  rate that would be applicable to expected total 
  income for the financial year. 
 
  The figures shown for the 52 weeks to 1 April 2017 
  are based on the Group's statutory accounts for 
  that period and do not constitute the Group's statutory 
  accounts for that period as defined in Section 434 
  of the Companies Act 2006. These statutory accounts, 
  which were prepared under International Financial 
  Reporting Standards, have been filed with the Registrar 
  of Companies. The audit report on those accounts 
  was not qualified, did not include a reference to 
  any matters to which the Auditor drew attention 
  by way of emphasis without qualifying the report, 
  and did not contain statements under Sections 498 
  (2) or (3) of the Companies Act 2006. 
 
  Standards and interpretations not yet applied 
  At the date of authorisation of this Half Year Report, 
  the following Standards and Interpretations that 
  are potentially relevant to the Group, and which 
  have not been applied in these financial statements, 
  were in issue but not yet effective (and in some 
  cases had not yet been adopted by the EU): 
 
   *    IFRS 9 'Financial Instruments: Classification and 
        measurement' - effective for accounting periods 
        beginning on or after 1 January 2018. 
 
 
   *    IFRS 15 'Revenue from Contracts with Customers' - 
        effective for accounting periods beginning on or 
        after 1 January 2018. 
 
 
   *    IFRS 16 'Leases' - effective for accounting periods 
        beginning on or after 1 January 2019. 
 
 
   *    Amendments to IFRS 2: Classification and Measurement 
        of Share-based Payment Transactions - effective for 
        accounting periods beginning on or after 1 January 
        2018. 
 
 
   *    Annual Improvements 2014-2016 Cycle - effective for 
        accounting periods beginning on or after 1 January 
        2018. 
 
 
   *    IFRIC Interpretation 22: Foreign Currency 
        Transactions and Advance Consideration - effective 
        for accounting periods beginning on or after 1 
        January 2018. 
 
 
   *    IFRIC Interpretation 23: Uncertainty over Income Tax 
        Treatments - effective for accounting periods 
        beginning on or after 1 January 2019. 
 
 
   *    Amendments to IAS 28: Long-term Interests in 
        Associates and Joint Ventures - effective for 
        accounting periods beginning on or after 1 January 
        2019. 
 
 
 
  The Directors anticipate that the adoption of these 
  Standards and Interpretations in future periods 
  will have no material impact on the financial statements 
  of the Group with the exception of IFRS 9 'Financial 
  Instruments', IFRS 15 'Revenue from Contracts with 
  Customers', and IFRS 16 'Leases' where our review 
  of the impact is ongoing as described below. 
 
  (a) IFRS 15 'Revenue from Contracts with Customers' 
  For the Group, transition to IFRS 15 will take effect 
  from 1 April 2018. The half year results for FY18/19 
  will be IFRS 15 compliant with the first Annual 
  Report published in accordance with IFRS 15 being 
  the 31 March 2019 report. The Group plans to adopt 
  a fully retrospective transition approach and so 
  comparatives for the year ended 31 March 2018 will 
  be restated. 
 
  IFRS 15 sets out the requirements for recognising 
  revenue from contracts with customers. The standard 
  requires entities to apportion revenue earned from 
  contracts to individual promises, or performance 
  obligations, on a stand-alone selling price basis, 
  based on a five-step model. 
 
  The Group is making good progress in quantifying 
  the full impact of this standard. Having performed 
  an impact assessment in FY16/17, during the first 
  half of FY17/18 the Group has been working through 
  a comprehensive transition exercise at each of its 
  subsidiaries. The autonomous nature of the Group 
  means that each subsidiary sets its own terms and 
  conditions and operating procedures and as such 
  this was the appropriate level for the transition 
  exercise. The transition exercise has involved scoping 
  the Group's revenues to identify revenue streams 
  with like commercial terms and performing sample 
  contract reviews to determine the appropriate revenue 
  recognition under IFRS 15. To ensure a consistent 
  approach to the exercise and consistent judgements, 
  the exercise has been supported from the centre 
  through setting the approach to transition, and 
  providing appropriate tools and guidance, including 
  a revised Group Accounting Manual. 
 
  The review and conclusion of this exercise is ongoing, 
  including reviewing the consistency of judgements 
  between companies and review by the Group's auditor. 
  Based on the initial views of the companies we do 
  not expect there to be a material change in the 
  timing or quantum of revenue recognition. 
 
  The following areas of potential differences were 
  identified from our initial impact assessment which 
  are being investigated as part of our transition 
  exercise: 
 
   *    Certain companies across the Group provide a product 
        which involves an element of customisation. Currently 
        under IAS 18 the revenue recognition for such product 
        is at a point in time on transfer of the risk and 
        reward of the transaction to the customer. IFRS 15 
        requires that for such transactions, where certain 
        criteria are met, revenue is recognised over time. 
        Based on the review of specific contract terms 
        against the requirements of IFRS 15 we do not 
        currently expect the criteria of IFRS 15 to be met 
        and as such do not expect there to be material change 
        in the timing or quantum of revenue recognition in 
        relation to these arrangements. 
 
 
   *    Certain companies across the Group arrange shipping 
        and handling on behalf of their customers but, based 
        on assessment of all terms and conditions, determine 
        control of goods to pass on despatch. Accordingly 
        shipping and handling is a separate performance 
        obligation under IFRS 15 and revenue is only 
        recognised when the performance obligation is 
        fulfilled. Having reviewed the terms of the 
        arrangements we do not currently expect there to be a 
        material change in the timing or quantum of revenue 
        recognition. 
 
 
   *    Many of our companies have warranty arrangements with 
        their customers. Having reviewed the details of the 
        warranty arrangements, these have been determined to 
        be of an assurance nature and as such there is no 
        material change in accounting required by IFRS 15. 
 
 
   *    Many of the companies have variable consideration 
        arrangements with their customers. Having reviewed 
        the details of these arrangements against IFRS 15 and 
        current accounting practices, we do not currently 
        expect there to be a material change in the timing or 
        quantum of revenue recognition. 
 
 
   *    Sales commissions and other third-party sales 
        acquisition costs resulting directly from securing 
        contracts with customers are required to be 
        recognised as an asset under IFRS 15 and recognised 
        over the associated contract period where such 
        contract is more than one year in length. Having 
        reviewed the nature of the arrangements we do not 
        currently expect there to be a change in the current 
        accounting. 
 
 
 
  (b) IFRS 9 'Financial Instruments' 
  For the Group, transition to IFRS 9 will take effect 
  from 1 April 2018. The half year results for FY18/19 
  will be IFRS 9 compliant with the first Annual Report 
  published in accordance with IFRS 9 being the 31 
  March 2019 report. There is no requirement to restate 
  comparatives. 
 
  IFRS 9 provides a new expected losses impairment 
  model for financial assets, including trade receivables, 
  and includes amendments to classification and measurement 
  of financial instruments. 
 
  During this half year the Group has undertaken a 
  high-level review of the impact of this new standard 
  on its financial statements. The Group's use of 
  financial instruments is limited to short-term trading 
  balances such as receivables and payables, borrowings 
  and derivatives used for hedging foreign exchange 
  risks. We therefore expect that the impact of this 
  standard will be limited to classification of financial 
  instruments and the measurement of impairment of 
  short-term financial assets using the expected losses 
  impairment model. 
 
  Through the second half of the year we will be working 
  to establish an appropriate impairment model and 
  accompanying processes to be applied to receivables 
  by our companies. However, the nature of the financial 
  assets is such that we do not expect there will 
  be a material change in level of impairment recognised 
  compared to that based on current procedures. 
 
  (c) IFRS 16 'Leases' 
  For the Group, transition to IFRS 16 will take effect 
  from 1 April 2019. The half year results for FY19/20 
  will be IFRS 16 compliant with the first Annual 
  Report published in accordance with IFRS 16 being 
  for the year ending 31 March 2020. 
 
  IFRS 16 provides a single model for lessees which 
  recognises a right of use asset and lease liability 
  for all leases which are longer than one year or 
  which are not classified as low value. The distinction 
  between finance and operating leases for lessees 
  is removed. 
 
  The Group is currently assessing the impact of the 
  new standard. The most significant impact currently 
  identified will be that the Group's land and buildings 
  leases will be brought on to the balance sheet. 
  Further assessment of other leases is currently 
  ongoing. The Group's future lease commitments for 
  land and buildings as at 1 April 2017, which provides 
  an indicator of the value to be brought on to the 
  balance sheet, was GBP45m. 
 
  Going concern 
  The Directors believe the Group is well placed to 
  manage its business risks successfully. The Group's 
  forecasts and projections, taking account of reasonably 
  possible changes in trading performance, show that 
  the Group should be able to operate within the level 
  of its current committed facilities, which includes 
  a GBP550m five-year Revolving Credit Facility (RCF) 
  completed in November 2016 of which GBP477m remains 
  undrawn at the date of this report. The RCF was 
  extended to November 2022 following the period end. 
 
  With this in mind, the Directors have a reasonable 
  expectation that the Company and Group have adequate 
  resources to continue in operational existence for 
  the foreseeable future. Thus they continue to adopt 
  the going concern basis in preparing the half year 
  Condensed Financial Statements. 
 
 
2 Segmental analysis 
 
 Sector analysis 
 The Group has four main reportable segments (Process 
 Safety, Infrastructure Safety, Medical and Environmental 
 & Analysis), which are defined by markets rather 
 than product type. Each segment includes businesses 
 with similar operating and market characteristics. 
 These segments are consistent with the internal reporting 
 as reviewed by the Chief Executive. 
 
 
Segment revenue 
 and results 
 
 
                                        Revenue (all continuing 
                                                    operations) 
                           ------------------------------------ 
                               Unaudited   Unaudited    Audited 
                                6 months    26 weeks   52 weeks 
                                      to          to         to 
                            30 September   1 October    1 April 
                                    2017        2016       2017 
                                  GBP000      GBP000     GBP000 
-------------------------  -------------  ----------  --------- 
Process Safety                    88,794      76,743    167,007 
Infrastructure Safety            167,923     147,988    315,219 
Medical                          133,270     118,664    260,576 
Environmental & Analysis         116,513      98,797    219,118 
Inter-segmental sales              (171)        (71)      (258) 
-------------------------  -------------  ----------  --------- 
Revenue for the period           506,329     442,121    961,662 
-------------------------  -------------  ----------  --------- 
 
 
Inter-segmental sales are charged at prevailing market prices and have not been disclosed 
 separately by segment as they are not considered material. The Group does not analyse 
 revenue by product group. Revenue derived from the rendering of services was GBP23,399,000 
 (26 weeks to 1 October 2016: GBP14,034,000; 52 weeks to 1 April 2017: GBP39,011,000). 
 All revenue was otherwise derived from the sale of products. 
 
 
                                                   Profit (all continuing 
                                                              operations) 
                                     ------------------------------------ 
                                         Unaudited   Unaudited    Audited 
                                          6 months    26 weeks   52 weeks 
                                                to          to         to 
                                      30 September   1 October    1 April 
                                              2017        2016       2017 
                                            GBP000      GBP000     GBP000 
-----------------------------------  -------------  ----------  --------- 
Segment profit before allocation 
 of adjustments* 
Process Safety                              20,247      17,395     40,243 
Infrastructure Safety                       35,736      31,991     65,129 
Medical                                     28,730      28,876     66,704 
Environmental & Analysis                    21,776      16,022     41,698 
-----------------------------------  -------------  ----------  --------- 
                                           106,489      94,284    213,774 
-----------------------------------  -------------  ----------  --------- 
Segment profit after allocation of 
 adjustments* 
Process Safety                              18,227      15,491     36,243 
Infrastructure Safety                       33,177      29,735     60,342 
Medical                                     17,469      18,933     45,804 
Environmental & Analysis                    19,894      11,720     35,084 
-----------------------------------  -------------  ----------  --------- 
Segment profit                              88,767      75,879    177,473 
Central administration costs               (7,112)     (5,763)   (10,484) 
Net finance expense                        (4,836)     (4,891)    (9,286) 
-----------------------------------  -------------  ----------  --------- 
Group profit before taxation                76,819      65,225    157,703 
Taxation                                  (15,104)    (13,013)   (28,014) 
-----------------------------------  -------------  ----------  --------- 
Profit for the period                       61,715      52,212    129,689 
-----------------------------------  -------------  ----------  --------- 
 
 
* Adjustments include the amortisation and impairment 
 of acquired intangible assets; acquisition items; 
 restructuring costs; and profit or loss on disposal 
 of operations. 
 
 The accounting policies of the reportable segments 
 are the same as the Group's accounting policies. For 
 acquisitions after 3 April 2010, acquisition transaction 
 costs and adjustments to contingent purchase consideration 
 are recognised in the Consolidated Income Statement. 
 Segment profit before these acquisition costs, the 
 amortisation and impairment of acquired intangible 
 assets, restructuring costs and the profit or loss 
 on disposal of continuing operations is disclosed 
 separately above as this is the measure reported to 
 the Chief Executive for the purpose of allocation 
 of resources and assessment of segment performance. 
 
 These adjustments are analysed as follows: 
 
 
                                                                                        Unaudited for the 6 months 
                                                                                              to 30 September 2017 
                               -----------  --------------  ------------------------------------------------------ 
                                                        Acquisition items 
                               ------------------------------------------ 
                                                                                   Total 
                 Amortisation                                               amortisation        Disposal 
                          and                                  Release of         charge              of 
                   impairment                  Adjustments     fair value            and      operations 
                  of acquired  Transaction   to contingent    adjustments    acquisition             and 
                  intangibles        costs   consideration   to inventory          items   restructuring     Total 
                       GBP000       GBP000          GBP000         GBP000         GBP000          GBP000    GBP000 
---------------  ------------  -----------  --------------  -------------  -------------  --------------  -------- 
Process Safety        (2,020)            -               -              -        (2,020)               -   (2,020) 
Infrastructure 
 Safety               (2,456)        (103)               -              -        (2,559)               -   (2,559) 
Medical               (9,941)        (826)           (494)              -       (11,261)               -  (11,261) 
Environmental 
 & Analysis           (2,899)          (3)           1,121          (101)        (1,882)               -   (1,882) 
---------------  ------------  -----------  --------------  -------------  -------------  --------------  -------- 
Total Segment 
 & Group             (17,316)        (932)             627          (101)       (17,722)               -  (17,722) 
---------------  ------------  -----------  --------------  -------------  -------------  --------------  -------- 
 
 
 
  The transaction costs arose mainly on the acquisitions 
  of CasMed NIBP and Cardios during the period. Further 
  detail on the acquisitions is contained in note 10. 
 
  The GBP627,000 adjustment to contingent consideration 
  comprises a credit of GBP1,121,000 in Environmental 
  & Analysis arising from a change in estimate of the 
  payable for FluxData, Inc. (FluxData), a prior year 
  acquisition, offset by GBP494,000 in Medical arising 
  from exchange differences on the payables for Visiometrics 
  S.L. (Visiometrics) which is denominated in Euros and 
  for Cardios which is denominated in Brazilian Reals. 
 
  The GBP101,000 charge relates to the release of the 
  remaining fair value adjustment on revaluing the inventory 
  of FluxData on acquisition in the prior year. 
 
 
                                                                                            Unaudited for the 26 weeks 
                                                                                                     to 1 October 2016 
                 ---------------  -----------  --------------  ------------------------------------------------------- 
                                                           Acquisition items 
                                                                     Release          Total 
                                                                          of   amortisation         Disposal 
                    Amortisation                                        fair         charge               of 
                  and impairment                  Adjustments          value            and       operations 
                     of acquired  Transaction   to contingent    adjustments    acquisition              and 
                     intangibles        costs   consideration   to inventory          items    restructuring     Total 
                          GBP000       GBP000          GBP000         GBP000         GBP000           GBP000    GBP000 
---------------  ---------------  -----------  --------------  -------------  -------------  ---------------  -------- 
Process Safety           (1,904)            -               -              -        (1,904)                -   (1,904) 
Infrastructure 
 Safety                  (2,256)            -               -              -        (2,256)                -   (2,256) 
Medical                  (8,815)            -           (338)          (790)        (9,943)                -   (9,943) 
Environmental 
 & Analysis              (2,217)            -              15              -        (2,202)          (2,100)   (4,302) 
---------------  ---------------  -----------  --------------  -------------  -------------  ---------------  -------- 
Total Segment 
 & Group                (15,192)            -           (323)          (790)       (16,305)          (2,100)  (18,405) 
---------------  ---------------  -----------  --------------  -------------  -------------  ---------------  -------- 
 
 
 
  The GBP338,000 charge to contingent consideration comprises a credit arising from 
  a revision to the estimate of the payable for Value Added Solutions LLC (VAS) by 
  GBP339,000 offset by a GBP677,000 charge arising from changes in the discount rate 
  along with exchange differences on the payable for Visiometrics which is denominated 
  in Euros. 
 
  The GBP790,000 charge relates to the release of the remaining fair value adjustment 
  on revaluing the inventory of CenTrak Inc (CenTrak) on acquisition. 
 
  The GBP2,100,000 charge relates to inventory and fixed asset write downs and severance 
  costs arising on the restructuring of non-core operations in one of the Group's subsidiaries, 
  Pixelteq Inc (Pixelteq). 
 
 
                                                                                        Audited for the 52 weeks ended 
                                                                                                          1 April 2017 
                 ---------------  -----------  ----------------------------------------------------------------------- 
                                                           Acquisition items 
                                  ------------------------------------------ 
                                                                     Release          Total 
                                                                          of   amortisation         Disposal 
                    Amortisation                                        fair         charge               of 
                  and impairment                  Adjustments          value            and       operations 
                     of acquired  Transaction   to contingent    adjustments    acquisition              and 
                     intangibles        costs   consideration   to inventory          items    restructuring     Total 
                          GBP000       GBP000          GBP000         GBP000         GBP000           GBP000    GBP000 
---------------  ---------------  -----------  --------------  -------------  -------------  ---------------  -------- 
Process Safety           (4,000)            -               -              -        (4,000)                -   (4,000) 
Infrastructure 
 Safety                  (4,784)          (3)               -              -        (4,787)                -   (4,787) 
Medical                 (30,702)         (95)          10,687          (790)       (20,900)                -  (20,900) 
Environmental 
 & Analysis              (4,412)        (265)              14           (41)        (4,704)          (1,910)   (6,614) 
---------------  ---------------  -----------  --------------  -------------  -------------  ---------------  -------- 
Total Segment 
 & Group                (43,898)        (363)          10,701          (831)       (34,391)          (1,910)  (36,301) 
---------------  ---------------  -----------  --------------  -------------  -------------  ---------------  -------- 
 
 
 
  Included within amortisation and impairment of acquired intangibles in the Medical 
  sector is GBP12,429,000 impairment to a customer relationship asset of Visiometrics. 
  Related to this impairment, included within the Medical sector, there is a credit 
  arising from a revision to the estimate of the deferred contingent consideration 
  payable for Visiometrics of GBP10,087,000 (EUR12,002,000). The majority of this revision 
  relates to deferred contingent consideration payable on sales to the same customer. 
 
  The transaction costs arose mainly on the acquisition of FluxData on 6 January 2017. 
 
  The GBP10,701,000 credit to contingent consideration comprises mainly the revision 
  to estimate of the payable for Visiometrics discussed above. The remaining credit 
  relates to the change in estimate to the payable for VAS by GBP356,000, and for ASL 
  Holdings Limited (ASL) by GBP14,000 on final settlement of the payable, and a credit 
  of GBP244,000 arising from exchange differences on the Visiometrics payable which 
  is denominated in Euros. 
 
  The GBP831,000 charge relates to the release of the fair value adjustment on revaluing 
  the inventories of CenTrak (GBP790,000) and FluxData (GBP41,000) on acquisition. 
  All amounts have now been released in relation to CenTrak. 
 
  The GBP1,910,000 charge relates to inventory and fixed asset write downs and severance 
  costs arising on the restructuring 
  of non-core operations in one of the Group's subsidiaries, Pixelteq. 
 
  The total assets and liabilities of all four segments have not been disclosed as 
  there have been no material changes to those disclosed in the Annual Report and Accounts 
  2017. 
 
 
Geographic information 
 
 The Group's revenue from external 
 customers (by location of customer) 
 is as follows: 
                                                     Revenue by destination 
                                       ------------------------------------ 
                                           Unaudited   Unaudited    Audited 
                                            6 months    26 weeks   52 weeks 
                                                  to          to         to 
                                        30 September   1 October    1 April 
                                                2017        2016       2017 
                                              GBP000      GBP000     GBP000 
-------------------------------------  -------------  ----------  --------- 
United States of America                     181,808     160,807    345,295 
Mainland Europe                              109,011      95,965    210,342 
United Kingdom                                79,746      72,901    154,920 
Asia Pacific                                  83,928      69,686    151,626 
Africa, Near and Middle East                  30,750      26,742     60,765 
Other countries                               21,086      16,020     38,714 
-------------------------------------  -------------  ----------  --------- 
Group revenue                                506,329     442,121    961,662 
-------------------------------------  -------------  ----------  --------- 
 
 
3 Finance income 
                                        Unaudited   Unaudited    Audited 
                                         6 months    26 weeks   52 weeks 
                                               to          to         to 
                                     30 September   1 October    1 April 
                                             2017        2016       2017 
                                           GBP000      GBP000     GBP000 
----------------------------------  -------------  ----------  --------- 
Interest receivable                           106          96        211 
Fair value movement on derivative 
 financial instruments                          -           -        283 
----------------------------------  -------------  ----------  --------- 
                                              106          96        494 
----------------------------------  -------------  ----------  --------- 
 
 
4 Finance expense 
                                               Unaudited   Unaudited    Audited 
                                                6 months    26 weeks   52 weeks 
                                                      to          to         to 
                                            30 September   1 October    1 April 
                                                    2017        2016       2017 
                                                  GBP000      GBP000     GBP000 
-----------------------------------------  -------------  ----------  --------- 
Interest payable on loans and overdrafts           3,470       3,463      6,977 
Amortisation of finance costs                        454         325      1,040 
Net interest charge on pension plan 
 liabilities                                         888         832      1,553 
Other interest payable                                75          25        126 
-----------------------------------------  -------------  ----------  --------- 
                                                   4,887       4,645      9,696 
Fair value movement on derivative 
 financial instruments                                29         267         53 
Unwinding of discount on provisions                   26          75         31 
-----------------------------------------  -------------  ----------  --------- 
                                                   4,942       4,987      9,780 
-----------------------------------------  -------------  ----------  --------- 
 
 
5 Taxation 
 
 The total Group tax charge for the 6 months to 30 September 2017 of GBP15,104,000 
 (26 weeks to 1 October 2016: GBP13,013,000; 52 weeks to 1 April 2017: GBP28,014,000) 
 comprises a current tax charge of GBP17,991,000 (26 weeks to 1 October 2016: GBP15,032,000; 
 52 weeks to 1 April 2017: GBP34,766,000) and a deferred tax credit of GBP2,887,000 
 (26 weeks to 1 October 2016: GBP2,019,000; 52 weeks to 1 April 2017: GBP6,752,000). 
 The tax charge is based on the estimated effective tax rate for the year. 
 
 The tax charge includes GBP14,885,000 (26 weeks to 1 October 2016: GBP12,253,000; 
 52 weeks to 1 April 2017: GBP27,525,000) in respect of overseas tax. 
 
 
6 Earnings per ordinary share 
 
 Basic and diluted earnings per ordinary share are calculated using the weighted average 
 of 379,219,351 (1 October 2016: 378,549,906; 1 April 2017: 378,685,730) shares in 
 issue during the period (net of shares purchased by the Company and held as treasury 
 and Employee Benefit Trust shares). There are no dilutive or potentially dilutive 
 ordinary shares. 
 
 Adjusted earnings are calculated as earnings from continuing operations excluding 
 the amortisation and impairment of acquired intangible assets; acquisition items; 
 restructuring costs; profit or loss on disposal of operations; and the associated 
 taxation thereon. 
 
 The Directors consider that adjusted earnings represent a more consistent measure 
 of underlying performance. 
 
 A reconciliation of earnings and the effect on basic earnings per share figures is 
 as follows: 
 
 
                                               Unaudited   Unaudited    Audited 
                                                6 months    26 weeks   52 weeks 
                                                      to          to         to 
                                            30 September   1 October    1 April 
                                                    2017        2016       2017 
                                                  GBP000      GBP000     GBP000 
-----------------------------------------  -------------  ----------  --------- 
Earnings from continuing operations               61,715      52,212    129,689 
Amortisation of acquired intangible 
 assets (after tax)                               11,832      10,383     21,452 
Impairment of acquired intangible 
 assets (after tax)                                    -           -      9,322 
Acquisition transaction costs (after 
 tax)                                                574           -        240 
Release of fair value adjustments 
 to inventory (after tax)                             62         490        569 
Adjustments to contingent consideration 
 (after tax)                                       (725)         300   (10,650) 
Disposal of operations and restructuring 
 (after tax)                                           -       1,847      1,648 
-----------------------------------------  -------------  ----------  --------- 
Adjusted earnings                                 73,458      65,232    152,270 
-----------------------------------------  -------------  ----------  --------- 
 
 
                                                             Per ordinary share 
                                           ------------------------------------ 
                                               Unaudited   Unaudited    Audited 
                                                6 months    26 weeks   52 weeks 
                                                      to          to         to 
                                            30 September   1 October    1 April 
                                                    2017        2016       2017 
                                                   pence       pence      pence 
-----------------------------------------  -------------  ----------  --------- 
Earnings from continuing operations                16.27       13.79      34.25 
Amortisation of acquired intangible 
 assets (after tax)                                 3.12        2.74       5.66 
Impairment of acquired intangible 
 assets (after tax)                                    -           -       2.46 
Acquisition transaction costs (after 
 tax)                                               0.15           -       0.06 
Release of fair value adjustments 
 to inventory (after tax)                           0.02        0.13       0.15 
Adjustments to contingent consideration 
 (after tax)                                      (0.19)        0.08     (2.81) 
Disposal of operations and restructuring 
 (after tax)                                           -        0.49       0.44 
-----------------------------------------  -------------  ----------  --------- 
Adjusted earnings                                  19.37       17.23      40.21 
-----------------------------------------  -------------  ----------  --------- 
 
 
7 Dividends 
                                                           Per ordinary share 
                                         ------------------------------------ 
                                             Unaudited   Unaudited    Audited 
                                              6 months    26 weeks   52 weeks 
                                                    to          to         to 
                                          30 September   1 October    1 April 
                                                  2017        2016       2017 
                                                 pence       pence      pence 
---------------------------------------  -------------  ----------  --------- 
Amounts recognised as distributions 
 to shareholders in the period 
Final dividend for the year to 1 April 
 2017 (2 April 2016)                              8.38        7.83       7.83 
Interim dividend for the year to 1 
 April 2017                                          -           -       5.33 
---------------------------------------  -------------  ----------  --------- 
                                                  8.38        7.83      13.16 
---------------------------------------  -------------  ----------  --------- 
Dividends in respect of the period 
Interim dividend for the year to 31 
 March 2018 (1 April 2017)                        5.71        5.33       5.33 
Final dividend for the year to 1 April 
 2017                                                -           -       8.38 
---------------------------------------  -------------  ----------  --------- 
                                                  5.71        5.33      13.71 
---------------------------------------  -------------  ----------  --------- 
 
 
                                             Unaudited   Unaudited    Audited 
                                              6 months    26 weeks   52 weeks 
                                                    to          to         to 
                                          30 September   1 October    1 April 
                                                  2017        2016       2017 
                                                GBP000      GBP000     GBP000 
---------------------------------------  -------------  ----------  --------- 
Amounts recognised as distributions 
 to shareholders in the period 
Final dividend for the year to 1 April 
 2017 (2 April 2016)                            31,733      29,605     29,605 
Interim dividend for the year to 1 
 April 2017                                          -           -     20,183 
---------------------------------------  -------------  ----------  --------- 
                                                31,733      29,605     49,788 
---------------------------------------  -------------  ----------  --------- 
Dividends in respect of the period 
Interim dividend for the year to 31 
 March 2018 (1 April 2017)                      21,678      20,183     20,183 
Final dividend for the year to 1 April 
 2017                                                -           -     31,733 
---------------------------------------  -------------  ----------  --------- 
                                                21,678      20,183     51,916 
---------------------------------------  -------------  ----------  --------- 
 
 
8 Notes to the Consolidated Cash Flow 
 Statement 
                                                 Unaudited   Unaudited    Audited 
                                                  6 months    26 weeks   52 weeks 
                                                        to          to         to 
                                              30 September   1 October    1 April 
                                                      2017        2016       2017 
                                                    GBP000      GBP000     GBP000 
-------------------------------------------  -------------  ----------  --------- 
Reconciliation of profit from operations 
 to net cash inflow from operating 
 activities 
Profit on continuing operations before 
 finance income and expense, share 
 of results of associates and profit 
 or loss on disposal of operations                  81,767      70,159    167,070 
Financial instruments at Fair value 
 through profit or loss                              (193)           -          - 
Depreciation of property, plant and 
 equipment                                           9,139       8,743     17,798 
Amortisation of computer software                      845         696      1,432 
Amortisation of capitalised development 
 costs and other intangibles                         3,375       3,508      6,947 
Impairment of intangibles                                -           -         98 
Amortisation of acquired intangible 
 assets                                             17,316      15,192     31,469 
Impairment of acquired intangible 
 assets                                                  -           -     12,429 
Share-based payment expense in excess 
 of/(less than) amounts paid                           552       (695)      1,880 
Additional payments to pension plans               (5,358)     (5,104)   (10,213) 
Loss on restructuring of operation                       -       2,057      1,252 
(Profit)/loss on sale of property, 
 plant and equipment and computer software           (522)          14        138 
-------------------------------------------  -------------  ----------  --------- 
Operating cash flows before movement 
 in working capital                                106,921      94,570    230,300 
Increase in inventories                            (8,688)     (2,350)    (5,406) 
Decrease/(increase) in receivables                   4,007      12,680   (14,262) 
(Decrease)/increase in payables and 
 provisions                                        (8,106)    (18,104)      5,750 
Revision to estimate of contingent 
 consideration payable                               (627)         323   (10,701) 
-------------------------------------------  -------------  ----------  --------- 
Cash generated from operations                      93,507      87,119    205,681 
Taxation paid                                     (17,482)    (16,774)   (33,188) 
-------------------------------------------  -------------  ----------  --------- 
Net cash inflow from operating activities           76,025      70,345    172,493 
-------------------------------------------  -------------  ----------  --------- 
 
 
                                                  Unaudited   Unaudited   Audited 
                                               30 September   1 October   1 April 
                                                       2017        2016      2017 
                                                     GBP000      GBP000    GBP000 
--------------------------------------------  -------------  ----------  -------- 
Analysis of cash and cash equivalents 
Cash and bank balances                               71,671      76,093    66,827 
Overdrafts (included in current Borrowings)             (5)     (1,825)   (1,190) 
--------------------------------------------  -------------  ----------  -------- 
Cash and cash equivalents                            71,666      74,268    65,637 
--------------------------------------------  -------------  ----------  -------- 
 
 
                                   At                                        Net     Loan                           At 
                              1 April                         Cash   cash/(debt)    notes      Exchange   30 September 
                                 2017             Reclass     flow      acquired   repaid   adjustments           2017 
                               GBP000              GBP000   GBP000        GBP000   GBP000        GBP000         GBP000 
--------------------------  ---------  ------------------  -------  ------------  -------  ------------  ------------- 
Analysis of net 
 debt 
Cash and bank balances         66,827                   -    5,795           155        -       (1,106)         71,671 
Overdrafts                    (1,190)                   -    1,185             -        -             -            (5) 
--------------------------  ---------  ------------------  -------  ------------  -------  ------------  ------------- 
Cash and cash equivalents      65,637                   -    6,980           155        -       (1,106)         71,666 
--------------------------  ---------  ------------------  -------  ------------  -------  ------------  ------------- 
Loan notes falling 
 due within one 
 year                           (161)               (175)        -             -      161             -          (175) 
Loan notes falling 
 due after more 
 than one year              (181,157)                 175        -             -        -         1,916      (179,066) 
Bank loans falling 
 due after more 
 than one year               (80,761)                   -    2,552             -        -         4,794       (73,415) 
--------------------------  ---------  ------------------  -------  ------------  -------  ------------  ------------- 
Total net debt              (196,442)                   -    9,532           155      161         5,604      (180,990) 
--------------------------  ---------  ------------------  -------  ------------  -------  ------------  ------------- 
 
 
Overdrafts and Loan notes falling due within one year are included as current borrowings 
 in the Consolidated Balance Sheet. Loan notes and Bank loans falling due after more 
 than one year are included as non-current borrowings. 
 
 
9 Alternative performance measures 
 
 The Board uses certain non-GAAP measures to help it effectively monitor the performance 
 of the Group. The Directors consider that these represent a more consistent measure 
 of underlying performance. These measures include Return on Total Invested Capital, 
 Return on Capital Employed, Organic growth at constant currency, Adjusted operating 
 profit and Adjusted operating cash flow. 
 
 
Return on Total Invested Capital (ROTIC) 
                                                       Unaudited   Unaudited    Audited 
                                                        6 months    26 weeks   52 weeks 
                                                              to          to         to 
                                                    30 September   1 October    1 April 
                                                            2017        2016       2017 
                                                          GBP000      GBP000     GBP000 
-------------------------------------------------  -------------  ----------  --------- 
Profit after tax                                          61,715      52,212    129,689 
Adjustments(3)                                            11,743      13,020     22,581 
-------------------------------------------------  -------------  ----------  --------- 
Adjusted(3) profit after tax                              73,458      65,232    152,270 
-------------------------------------------------  -------------  ----------  --------- 
Shareholders' funds                                      775,315     690,568    778,637 
Add back retirement benefit obligations                   66,825      94,024     74,856 
Less associated deferred tax assets                     (12,424)    (17,506)   (13,947) 
Cumulative amortisation of acquired 
 intangible assets                                       179,650     136,963    168,031 
Historical adjustments to goodwill(4)                     89,549      89,549     89,549 
-------------------------------------------------  -------------  ----------  --------- 
Total Invested Capital                                 1,098,915     993,598  1,097,126 
-------------------------------------------------  -------------  ----------  --------- 
Average Total Invested Capital(2)                      1,098,021     942,335    994,099 
-------------------------------------------------  -------------  ----------  --------- 
Return on Total Invested Capital (annualised)(1)           13.4%       13.8%      15.3% 
-------------------------------------------------  -------------  ----------  --------- 
 
 
Return on Capital Employed (ROCE) 
                                                 Unaudited   Unaudited    Audited 
                                                  6 months    26 weeks   52 weeks 
                                                        to          to         to 
                                              30 September   1 October    1 April 
                                                      2017        2016       2017 
                                                    GBP000      GBP000     GBP000 
-------------------------------------------  -------------  ----------  --------- 
Profit before tax                                   76,819      65,225    157,703 
Adjustments(3)                                      17,722      18,405     36,301 
Net finance costs                                    4,836       4,891      9,286 
-------------------------------------------  -------------  ----------  --------- 
Adjusted operating profit(3) after 
 share of results of associates                     99,377      88,521    203,290 
-------------------------------------------  -------------  ----------  --------- 
Computer software costs within intangible 
 assets                                              4,633       3,353      4,466 
Capitalised development costs within 
 intangible assets                                  30,027      25,985     28,782 
Other intangibles within intangible 
 assets                                              1,079       1,099      1,111 
Property, plant and equipment                      102,620     103,417    106,016 
Inventories                                        124,231     113,757    118,780 
Trade and other receivables                        203,408     179,659    212,236 
Trade and other payables                         (125,730)   (109,841)  (135,257) 
Provisions                                         (4,752)     (5,571)    (6,776) 
Net tax liabilities                               (14,511)    (11,972)   (15,931) 
Non-current trade and other payables              (11,383)    (11,387)   (10,780) 
Non-current provisions                            (16,888)    (18,859)   (16,917) 
Add back contingent purchase consideration          15,228      18,500     16,444 
-------------------------------------------  -------------  ----------  --------- 
Capital Employed                                   307,962     288,140    302,174 
-------------------------------------------  -------------  ----------  --------- 
Average Capital Employed(2)                        305,068     273,394    280,411 
-------------------------------------------  -------------  ----------  --------- 
Return on Capital Employed (annualised)(1)           65.2%       64.8%      72.5% 
-------------------------------------------  -------------  ----------  --------- 
 
 
1  The ROTIC and ROCE measures are calculated as annualised 
    Adjusted profit after tax divided by Average Total 
    Invested Capital and annualised Adjusted operating 
    profit after share of results of associates divided 
    by Average Capital Employed respectively. 
2  The ROTIC and ROCE measures are expressed as a percentage 
    of the average of the current period's and prior 
    year's Total Invested Capital and Capital Employed 
    respectively. Using an average as the denominator 
    is considered to be more representative. The March 
    2016 Total Invested Capital and Capital Employed 
    balances were GBP891,071,000 and GBP258,648,000 
    respectively. 
3  Adjustments set out in note 2 include the amortisation 
    and impairment of acquired intangible assets; acquisition 
    items; restructuring costs and profit or loss on 
    disposal of operations, and where applicable, the 
    associated taxation thereon. 
4  Includes goodwill amortised prior to 3 April 2004 
    and goodwill taken to reserves. 
 
 
    Organic growth and constant currency 
     Organic growth measures the change in revenue and profit 
     from continuing Group operations. The measure equalises 
     the effect of acquisitions by: 
 
     i. removing from the year of acquisition their entire 
     revenue and profit before taxation, and 
     ii. in the following year, removing the revenue and 
     profit for the number of months equivalent to the pre-acquisition 
     period in the prior year. 
 
     The resultant effect is that the acquisitions are removed 
     from organic results for one full year of ownership. 
 
     The results of disposals are removed from the prior 
     period reported revenue and profit before taxation. 
 
     Constant currency measures the change in revenue and 
     profit excluding the effects of currency movements. 
     The measure restates the current year's revenue and 
     profit at last year's exchanges rates. 
 
     Organic growth at constant currency has been calculated 
     below: 
 
 
                                                                                Adjusted profit* 
                                                    Revenue                      before taxation 
                        -------------  ----------  --------  ----------------------------------- 
                            Unaudited   Unaudited                Unaudited   Unaudited 
                             6 months    26 weeks                 6 months    26 weeks 
                                   to          to                       to          to 
                         30 September   1 October             30 September   1 October 
                                 2017        2016                     2017        2016 
                               GBP000      GBP000  % growth         GBP000      GBP000  % growth 
----------------------  -------------  ----------  --------  -------------  ----------  -------- 
Continuing operations         506,329     442,121     14.5%         94,541      83,630     13.0% 
Acquired and disposed 
 revenue/profit               (3,587)                                (172) 
----------------------  -------------  ----------  --------  -------------  ----------  -------- 
Organic growth                502,742     442,121     13.7%         94,369      83,630     12.8% 
Constant currency 
 adjustment                  (20,277)                              (4,154) 
----------------------  -------------  ----------  --------  -------------  ----------  -------- 
Organic growth at 
 constant currency            482,465     442,121      9.1%         90,215      83,630      7.9% 
----------------------  -------------  ----------  --------  -------------  ----------  -------- 
 
 
* Adjustments include the amortisation and impairment 
 of acquired intangible assets; acquisition items; restructuring 
 costs; and profit or loss on disposal of operations. 
 
 
Sector organic growth at constant currency 
 Organic growth at constant currency is calculated for each segment using the same 
 method as described above. 
 
 
                                                                                  Adjusted* segment 
Process Safety                                         Revenue                               profit 
                           -----------------------------------  ----------------------------------- 
                               Unaudited   Unaudited                Unaudited   Unaudited 
                                6 months    26 weeks                 6 months    26 weeks 
                                      to          to                       to          to 
                            30 September   1 October             30 September   1 October 
                                    2017        2016                     2017        2016 
                                  GBP000      GBP000  % growth         GBP000      GBP000  % growth 
-------------------------  -------------  ----------  --------  -------------  ----------  -------- 
Continuing operations             88,794      76,743     15.7%         20,247      17,395     16.4% 
Acquisition and currency 
 adjustments                     (2,710)                                (596) 
-------------------------  -------------  ----------  --------  -------------  ----------  -------- 
Organic growth at 
 constant currency                86,084      76,743     12.2%         19,651      17,395     13.0% 
-------------------------  -------------  ----------  --------  -------------  ----------  -------- 
 
 
                                                                                  Adjusted* segment 
Infrastructure Safety                                  Revenue                               profit 
                           -----------------------------------  ----------------------------------- 
                               Unaudited   Unaudited                Unaudited   Unaudited 
                                6 months    26 weeks                 6 months    26 weeks 
                                      to          to                       to          to 
                            30 September   1 October             30 September   1 October 
                                    2017        2016                     2017        2016 
                                  GBP000      GBP000  % growth         GBP000      GBP000  % growth 
-------------------------  -------------  ----------  --------  -------------  ----------  -------- 
Continuing operations            167,923     147,988     13.5%         35,736      31,991     11.7% 
Acquisition and currency 
 adjustments                     (5,491)                              (1,008) 
-------------------------  -------------  ----------  --------  -------------  ----------  -------- 
Organic growth at 
 constant currency               162,432     147,988      9.8%         34,728      31,991      8.6% 
-------------------------  -------------  ----------  --------  -------------  ----------  -------- 
 
 
                                                                                  Adjusted* segment 
Medical                                                Revenue                               profit 
                           -----------------------------------  ----------------------------------- 
                               Unaudited   Unaudited                Unaudited   Unaudited 
                                6 months    26 weeks                 6 months    26 weeks 
                                      to          to                       to          to 
                            30 September   1 October             30 September   1 October 
                                    2017        2016                     2017        2016 
                                  GBP000      GBP000  % growth         GBP000      GBP000  % growth 
-------------------------  -------------  ----------  --------  -------------  ----------  -------- 
Continuing operations            133,270     118,664     12.3%         28,730      28,876    (0.5)% 
Acquisition and currency 
 adjustments                     (8,360)                              (1,663) 
-------------------------  -------------  ----------  --------  -------------  ----------  -------- 
Organic growth at 
 constant currency               124,910     118,664      5.3%         27,067      28,876    (6.3)% 
-------------------------  -------------  ----------  --------  -------------  ----------  -------- 
 
 
                                                                                  Adjusted* segment 
Environmental & Analysis                               Revenue                               profit 
                           -----------------------------------  ----------------------------------- 
                               Unaudited   Unaudited                Unaudited   Unaudited 
                                6 months    26 weeks                 6 months    26 weeks 
                                      to          to                       to          to 
                            30 September   1 October             30 September   1 October 
                                    2017        2016                     2017        2016 
                                  GBP000      GBP000  % growth         GBP000      GBP000  % growth 
-------------------------  -------------  ----------  --------  -------------  ----------  -------- 
Continuing operations            116,513      98,797     17.9%         21,776      16,022     35.9% 
Acquisition and currency 
 adjustments                     (7,303)                              (1,379) 
-------------------------  -------------  ----------  --------  -------------  ----------  -------- 
Organic growth at 
 constant currency               109,210      98,797     10.5%         20,397      16,022     27.3% 
-------------------------  -------------  ----------  --------  -------------  ----------  -------- 
 
 
* Adjustments include the amortisation and impairment 
 of acquired intangible assets; acquisition items; restructuring 
 costs; and profit or loss on disposal of operations. 
 
 
Adjusted operating profit 
                                          Unaudited   Unaudited    Audited 
                                           6 months    26 weeks   52 weeks 
                                                 to          to         to 
                                       30 September   1 October    1 April 
                                               2017        2016       2017 
                                             GBP000      GBP000     GBP000 
------------------------------------  -------------  ----------  --------- 
Operating profit                             81,767      70,159    167,070 
------------------------------------  -------------  ----------  --------- 
Add back: 
Acquisition items                               406       1,113    (9,507) 
Loss on restructuring                             -       2,100      1,910 
Amortisation of acquired intangible 
 assets                                      17,316      15,192     31,469 
Impairment of acquired intangible 
 assets                                           -           -     12,429 
------------------------------------  -------------  ----------  --------- 
Adjusted operating profit                    99,489      88,564    203,371 
------------------------------------  -------------  ----------  --------- 
 
 
Adjusted operating cash flow 
                                                Unaudited   Unaudited    Audited 
                                                 6 months    26 weeks   52 weeks 
                                                       to          to         to 
                                             30 September   1 October    1 April 
                                                     2017        2016       2017 
                                                   GBP000      GBP000     GBP000 
------------------------------------------  -------------  ----------  --------- 
Net cash from operating activities 
 (note 8)                                          76,025      70,345    172,493 
------------------------------------------  -------------  ----------  --------- 
Add back: 
Net acquisition costs                                 932           -        363 
Taxes paid                                         17,482      16,774     33,188 
Proceeds from sale of property, plant 
 and equipment                                      1,177         287      1,495 
Share awards vested not settled by 
 Own shares*                                        3,346       3,310      3,309 
Less: 
Purchase of property, plant and equipment         (9,134)    (10,728)   (21,875) 
Purchase of computer software and 
 other intangibles                                (1,089)       (911)    (2,760) 
Development costs capitalised                     (5,034)     (4,814)   (10,731) 
------------------------------------------  -------------  ----------  --------- 
Adjusted operating cash flow                       83,705      74,263    175,482 
------------------------------------------  -------------  ----------  --------- 
Cash conversion % (adjusted operating 
 cash flow/adjusted operating profit)                 84%         84%        86% 
------------------------------------------  -------------  ----------  --------- 
 
 
* See Consolidated Statement of Changes in Equity. 
 
 
10 Acquisitions 
 
 In the provisional accounting, adjustments are made 
 to the book values of the net assets of the companies 
 acquired to reflect their provisional fair values 
 to the Group. Acquired inventories are valued at 
 fair value adopting Group bases and any liabilities 
 for warranties relating to past trading are recognised. 
 Other previously unrecognised assets and liabilities 
 at acquisition are included and accounting policies 
 are aligned with those of the Group where appropriate. 
 
 During the period ended 30 September 2017, the Group 
 made two acquisitions: Cas Medical Systems Inc's 
 Non-Invasive Blood Pressure Monitoring product line 
 ("CasMed NIBP") and Cardios Sistemas Comercial e 
 Industrial Ltda and Cardio Dinamica Ltda (together 
 "Cardios"). 
 
 The combined fair value adjustments made for the 
 acquisitions, excluding acquired intangible assets 
 recognised and deferred taxation thereon, resulted 
 in reducing the goodwill recognised by GBP558,000. 
 
 Below are summaries of the assets acquired and liabilities 
 assumed and the purchase consideration of: 
 
 a) the total of CasMed NIBP and Cardios; 
 b) CasMed NIBP, on a stand-alone basis; and 
 c) Cardios, on a stand-alone basis. 
 
 
(A) Total of CasMed NIBP and Cardios 
                                                   Total 
                                                  GBP000 
-----------------------------------------------  ------- 
Non-current assets 
Intangible assets                                  9,817 
Property, plant and equipment                        232 
Current assets 
Inventories                                          768 
Trade and other receivables                        1,834 
Cash and cash equivalents                            155 
-----------------------------------------------  ------- 
Total assets                                      12,806 
-----------------------------------------------  ------- 
Current liabilities 
Trade and other payables                           (925) 
Provisions                                          (27) 
Corporation tax liability                            (8) 
Non-current liabilities 
Deferred tax                                     (2,317) 
-----------------------------------------------  ------- 
Total liabilities                                (3,277) 
-----------------------------------------------  ------- 
Net assets of businesses acquired                  9,529 
-----------------------------------------------  ------- 
 
Initial cash consideration paid                   15,872 
Initial cash consideration payable                    23 
Contingent purchase consideration estimated to 
 be paid                                           1,314 
-----------------------------------------------  ------- 
Total consideration                               17,209 
-----------------------------------------------  ------- 
 
Goodwill arising on acquisitions                   7,680 
-----------------------------------------------  ------- 
 
 
Due to their contractual dates, the fair value of receivables acquired (shown above) 
 approximate to the gross contractual amounts receivable. 
 
 The amount of gross contractual receivables not expected to be recovered is immaterial. 
 
 There are no material contingent liabilities recognised in accordance with paragraph 
 23 of IFRS 3 (revised). 
 
 As at the date of approval of these Condensed Financial Statements the accounting 
 for the acquisitions remains provisional. The measurement window expires in July 
 2018 for CasMed NIBP and in August 2018 for Cardios. 
 
 
Analysis of cash outflow in the Consolidated 
 Cash Flow Statement 
                                                   Unaudited   Unaudited    Audited 
                                                    6 months    26 weeks   52 weeks 
                                                          to          to         to 
                                                30 September   1 October    1 April 
                                                        2017        2016       2017 
                                                      GBP000      GBP000     GBP000 
---------------------------------------------  -------------  ----------  --------- 
Initial cash consideration paid                       15,872           -      9,878 
Initial cash consideration adjustment 
 on prior year acquisitions                                -       (166)          - 
Cash acquired on acquisition                           (155)           -      (496) 
Deferred contingent consideration 
 paid and loan notes repaid in cash 
 in relation to prior year acquisitions*               1,369         314        590 
---------------------------------------------  -------------  ----------  --------- 
Net cash outflow relating to acquisitions 
 (per Consolidated Cash Flow Statement)               17,086         148      9,972 
---------------------------------------------  -------------  ----------  --------- 
 
 
* The GBP1,369,000 comprises GBP161,000 loan notes and GBP1,208,000 contingent consideration 
 paid in respect of prior period acquisitions all of which had been provided in the prior period's 
 financial statements. 
 
 
(B) CasMed NIBP, on a stand-alone basis 
                                                   Total 
                                                  GBP000 
-----------------------------------------------  ------- 
Non-current assets 
Intangible assets                                  2,909 
Net assets of business acquired                    2,909 
-----------------------------------------------  ------- 
 
Initial cash consideration paid                    3,449 
Contingent purchase consideration estimated to 
 be paid                                             693 
-----------------------------------------------  ------- 
Total consideration                                4,142 
-----------------------------------------------  ------- 
 
Goodwill arising on acquisition                    1,233 
-----------------------------------------------  ------- 
 
 
The Group acquired the trade and assets of the non-invasive blood pressure (NIBP) 
 monitoring product line on 25 July 2017 for an initial cash consideration of US$4,500,000 
 (GBP3,449,000). The maximum contingent consideration payable is US$2,000,000 (GBP1,533,000). 
 
 The current provision of US$905,000 (GBP693,000) represents the fair value of the 
 estimated payable based on performance to date and the expectation of future cash 
 flows. The earn-out is payable on the achievement of product net sales above a target 
 threshold for the 24-month period to June 2019. 
 
 CasMed NIBP was purchased by SunTech Medical Inc within the Medical sector. NIBP 
 monitoring products provide SunTech with more clinical grade options for OEM customers 
 seeking NIBP technology for multi-parameter monitors, EMS defibrillators, haemodialysis 
 machines and various other clinical monitoring devices. 
 
 The excess of the fair value of the consideration paid over the fair value of the 
 assets acquired is represented by customer related intangibles of GBP1,250,000; and 
 technology related intangibles of GBP1,659,000; with residual goodwill arising of 
 GBP1,233,000. The goodwill represents: 
 
 a) the technical expertise of the acquired workforce; 
 b) the opportunity to leverage this expertise across some of Halma's businesses through 
 future technologies; and 
 c) the ability to exploit the Group's existing customer base. 
 
 Acquisition costs totalling GBP354,000 were recorded in the Consolidated Income Statement. 
 
 The goodwill arising on the acquisition is expected to be deductible for tax purposes. 
 
 
(C) Cardios, on a stand-alone basis 
                                                   Total 
                                                  GBP000 
-----------------------------------------------  ------- 
Non-current assets 
Intangible assets                                  6,908 
Property, plant and equipment                        232 
Current assets 
Inventories                                          768 
Trade and other receivables                        1,834 
Cash and cash equivalents                            155 
-----------------------------------------------  ------- 
Total assets                                       9,897 
-----------------------------------------------  ------- 
Current liabilities 
Trade and other payables                           (925) 
Provisions                                          (27) 
Corporation tax liability                            (8) 
Non-current liabilities 
Deferred tax                                     (2,317) 
-----------------------------------------------  ------- 
Total liabilities                                (3,277) 
-----------------------------------------------  ------- 
Net assets of businesses acquired                  6,620 
-----------------------------------------------  ------- 
 
Initial cash consideration paid                   12,423 
Initial cash consideration payable                    23 
Contingent purchase consideration estimated to 
 be paid                                             621 
-----------------------------------------------  ------- 
Total consideration                               13,067 
-----------------------------------------------  ------- 
 
Goodwill arising on acquisition                    6,447 
-----------------------------------------------  ------- 
 
 
The Group acquired the entire share capital of Cardios Sistemas Comercial e Industrial 
 Ltda and Cardio Dinamica Ltda (together "Cardios") on 4 August 2017 for an initial 
 cash consideration of R$50,000,000 (GBP12,423,000), adjustable based on closing date 
 net assets and cash. The adjustment was determined to be R$93,000 (GBP23,000). The 
 maximum contingent consideration payable is R$5,000,000 (GBP1,242,000). 
 
 The current provision of R$2,500,000 (GBP621,000) represents the fair value of the 
 estimated payable based on performance to date and the expectation of future cash 
 flows. The earn-out is payable on gross margin growth in excess of a target threshold 
 for the 12-month period post-acquisition. 
 
 Cardios, located in São Paulo, Brazil, designs and manufactures ambulatory ECG 
 recorders and ambulatory blood pressure monitors for Brazilian healthcare providers. 
 These devices are used by cardiologists and general practitioners to diagnose and 
 prevent heart and blood vessel related diseases such as hypertension, diabetes, heart 
 attacks, and heart arrhythmias. These products are similar or complementary to patient 
 assessment devices currently manufactured and marketed by Halma's Medical sector. 
 
 The excess of the fair value of the consideration paid over the fair value of the 
 assets acquired is represented by customer related intangibles of GBP934,000; trade 
 name of GBP2,303,000 and technology related intangibles of GBP3,578,000; with residual 
 goodwill arising of GBP6,447,000. The goodwill represents: 
 
 a) the technical expertise of the acquired workforce; 
 b) the opportunity to leverage this expertise across some of Halma's businesses through 
 new technologies; and 
 c) the ability to exploit the Group's existing customer base. 
 
 Acquisition costs totalling GBP367,000 were recorded in the Consolidated Income Statement. 
 
 
11 Retirement benefits 
 
 The Group's significant defined benefit plans are 
 for the qualifying employees of its UK subsidiaries. 
 The defined benefit obligation at 30 September 2017 
 of GBP66,825,000 (1 October 2016: GBP94,024,000; 
 1 April 2017: GBP74,856,000) has been estimated based 
 on the latest triennial actuarial valuations updated 
 to reflect current assumptions regarding discount 
 rates, inflation rates and asset values. The last 
 triennial valuations were carried out at 1 December 
 2014 for the Halma Group Pension Plan and 1 April 
 2015 for the Apollo Pension and Life Assurance Plan. 
 
 The discount rate assumption was set at 2.6% (1 October 
 2016: 2.3%; 1 April 2017: 2.5%). All other assumptions 
 are materially unchanged. 
 
 In addition, the defined benefit plan assets have 
 been updated to reflect deficit reduction payments 
 in the period totalling GBP5,400,000 (1 October 2016: 
 GBP5,160,000; 1 April 2017: GBP10,700,000). The UK 
 plans are closed to future accrual. 
 
 
12 Fair values of financial assets and liabilities 
 
 As at 30 September 2017, with the exception of the 
 Group's fixed rate loan notes, there were no significant 
 differences between the book value and fair value 
 (as determined by market value) of the Group's financial 
 assets and liabilities. 
 
 The fair value of floating rate borrowings approximate 
 to the carrying value because interest rates are 
 reset to market rates at intervals of less than one 
 year. 
 
 The fair value of the Group's fixed rate loan notes 
 arising from the United States Private Placement 
 completed in January 2016 is estimated to be GBP180,087,000. 
 
 The fair value of financial instruments is estimated 
 by discounting the future contracted cash flow using 
 readily available market data and represents a level 
 2 measurement in the fair value hierarchy under IFRS 
 7. 
 
 As at 30 September 2017, the total forward foreign 
 currency contracts outstanding were GBP26,396,000. 
 The contracts mostly mature within one year and therefore 
 the cash flows and resulting effect on profit and 
 loss are expected to occur within the next 12 months. 
 
 The fair values of the forward contracts are disclosed 
 as a GBP592,000 (1 October 2016: GBP135,000; 1 April 
 2017: GBP598,000) asset and GBP410,000 (1 October 
 2016: GBP1,920,000; 1 April 2017: GBP315,000) liability 
 in the Consolidated Balance Sheet. 
 
 Any movements in the fair values of the contracts 
 are recognised in equity until the hedge transaction 
 occurs, when gains/losses are recycled to finance 
 income or finance expense. 
 
 
13 Subsequent events 
 
 Revolving Credit Facility extension 
 Effective from November 2017, the Group extended 
 its unsecured five-year GBP550,000,000 Revolving 
 Credit Facility agreed in November 2016 for a further 
 year to November 2022. 
 
 Acquisition of Mini-Cam Enterprises Limited and subsidiaries 
 On 31 October 2017, the Group acquired the entire 
 share capital of Mini-Cam Enterprises Limited and 
 its subsidiary companies for cash consideration of 
 GBP62,000,000, adjustable based on the closing date 
 net assets and cash. Maximum deferred contingent 
 consideration is payable of GBP23,100,000 based on 
 annualised profit growth to the period ended 31 March 
 2020. 
 
 Mini-Cam, headquartered in Lancashire, UK, specialises 
 in pipeline inspection solutions for waste water 
 systems in the UK and internationally. Mini-Cam's 
 remotely-operated products and software enable utilities 
 to identify leakages, blockages and potential ingress 
 in waste water networks, thereby helping them to 
 improve customer service levels and compliance with 
 environmental regulations. The management team of 
 Mini-Cam will continue to operate the business out 
 of its current locations. Mini-Cam will join the 
 Group's Environmental & Analysis sector where it 
 provides new opportunities for commercial and technical 
 collaboration with the sector's existing water technologies. 
 
 Acquisition of Setco 
 On 9 November 2017, the Group acquired the entire 
 share capital of Setco S.A. for EUR17,000,000 (GBP15,088,000), 
 adjustable based on closing date net assets and cash. 
 Setco, based in Barcelona, Spain, will be a bolt-on 
 for our global Elevator Safety business, Avire, and 
 adds new wireless communications technology which 
 is highly complementary to its existing product range 
 and new product development roadmap. Setco will join 
 the Infrastructure Safety sector. 
 
 
14 Other matters 
 
 Seasonality 
 The Group's financial results have not historically 
 been subject to significant seasonal trends. 
 
 Equity and borrowings 
 Issues and repurchases of Halma plc's ordinary shares 
 and drawdowns and repayments of borrowings are shown 
 in the 
 Consolidated Cash Flow Statement. 
 
 Related party transactions 
 There were no significant changes in the nature and 
 size of related party transactions for the period 
 to those reported in the Annual Report and Accounts 
 2017. 
 
 
15 Principal risks and uncertainties 
 
 A number of potential risks and uncertainties exist 
 that could have a material impact on the Group's 
 performance over the second half of the financial 
 year and could cause actual results to differ materially 
 from expected and historical results. 
 
 The Group has in place processes for identifying, 
 evaluating and managing key risks. These risks, together 
 with a description of the approach to mitigating 
 them, are set out on pages 22 to 27 in the Annual 
 Report and Accounts 2017, which is available on the 
 Group's website at www.halma.com. The Directors do 
 not consider that the principal risks and uncertainties 
 have changed since the publication of the Annual 
 Report and Accounts. 
 
 The principal risks and uncertainties relate to: 
 
 -- Globalisation 
 -- Competition 
 -- Economic conditions 
 -- Funding, treasury and pension deficit 
 -- Cyber security/Information Technology/Business 
 interruption/Natural disasters 
 -- Acquisitions 
 -- Laws and regulations 
 -- Talent and diversity 
 -- Research & Development and Intellectual Property 
 strategy 
 -- Product quality 
 The UK referendum decision in June 2016 and the subsequent 
 triggering of Article 50 in March 2017 mean that 
 the UK is now scheduled to leave the European Union 
 by the end of March 2019. This decision has created 
 a new dimension to the uncertainties surrounding 
 global economic growth. 
 
 In 2016/17, approximately 10% of Group revenue came 
 from direct sales between the UK and Mainland Europe. 
 To date, the following Brexit risks have been identified 
 as having an actual and/or potential impact on our 
 business: 
 
  *    Economic conditions: increased overall uncertainty 
       including the specific impacts on growth, inflation, 
       interest and currency rates 
 
 
  *    Defined benefit pension liability: movements in bond 
       yields affecting discount rates which may increase 
       the liability 
 
 
  *    Laws and regulations: potential changes to UK and 
       EU-based law and regulation including product 
       approvals, patents and import/export tariffs 
 
 
  *    Talent: mobility of the workforce 
 
 
 
 Halma has an executive working group to assess and 
 monitor the potential impact on us of Brexit, to 
 communicate updates and support our businesses in 
 preparing for the range of possible outcomes. 
 
 Our decentralised model, with businesses in diverse 
 markets and locations, will enable each Halma company 
 to adapt quickly to changing trading conditions. 
 This agility, together with the regulation driven 
 demand for many of our products and services, will 
 help us to mitigate any adverse impact and also take 
 advantage of the opportunities presented by the decision 
 to leave the European Union. 
 
 Movements in foreign exchange rates remain a risk 
 to financial performance. Although the Group uses 
 forward foreign exchange contracts to mitigate its 
 transactional currency exposure risk, it does not 
 hedge the translation of its currency profits. In 
 the first half of the year, Sterling weakened on 
 average by 6% relative to the US Dollar, and by 7% 
 against the Euro, resulting in a 5% positive currency 
 impact on reported revenue and 5% on reported profit. 
 
 
16 Responsibility statement 
 
 We confirm that to the best of our knowledge: 
 
 
a)  these Condensed Financial Statements have been 
     prepared in accordance with International Accounting 
     Standard 34 'Interim Financial Reporting' as adopted 
     by the European Union; 
b)  this Half Year Report includes a fair review of 
     the information required by Disclosure Guidance 
     and Transparency Rule (DTR) 4.2.7R (indication 
     of important events during the period and description 
     of principal risks and uncertainties for the remainder 
     of the financial year); and 
c)  this Half Year Report includes a fair review of 
     the information required by DTR 4.2.8R (disclosure 
     of related party transactions and changes therein). 
 
 
By order of the 
 Board 
 
 
                     Kevin Thompson 
 Andrew Williams     Finance Director 
 Chief Executive 
 
 21 November 2017 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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