Halma (HLMA), Crest Nicholson (CRST), Fuller, Smith & Turner (FSTA), Renishaw (RSW), Motorpoint (MOTR) and Trident Royalties (TRR)
Safety company Halma (HLMA) saw its share price jump after it reported strong growth in revenue, operating margin and operating cash flow.
In the year to March, revenue increased 10 per cent to £2.03bn, while its adjusted operating profit (Ebit) was up 12 per cent, with the margin up to 20.8 per cent. This was driven from the US, which grew revenue 14.7 per cent. The US now makes up 44 per cent of total revenue, making it Halma’s largest market, ahead of mainland Europe with 21 per cent.
The health division shrank 3.5 per cent but this was more than offset by the safety division, which grew 25.6 per cent, while the environment arm was up 13.7 per cent. This included “very strong performance” from the water analysis business in the UK, where water companies have been struggling to keep sewage from leaking into lakes and rivers.
Management is forecasting that revenue growth will continue in the new year and that the adjusted operating margin will stay around 21 per cent. The more regulated and safety-conscious the world gets, the more money Halma makes. AS
Crest Nicholson still hampered by legacy site problems
Crest Nicholson (CRST) has warned on profits and slashed its half-year pay rate as demand within the housebuilding sector remains subdued, while more build problems across legacy sites continue to weigh on financial performance. The shares dropped 8 per cent on the update.
The interim numbers reflect the industry challenges. Revenues were in line with the low level of reservations, with completions falling by 12 per cent year on year. Weekly sales per outlet contracted, although average selling prices were stable. And profitability was constrained because the group derived a higher proportion of revenue from low-margin sites. Matters were not helped by a £5.9mn charge relating to remaining cost obligations on completed sites. Including the one-off pre-exceptional charge for completed sites, the group expects adjusted profit before tax to be between £22mn and £29mn. MR
Renishaw co-founder bows out
The co-founder and executive chair of Renishaw (RSW) Sir David McMurty is to step down after running the business for more than 50 years. He will remain on the board as a non-executive to advise on product innovation, but senior independent director Sir David Grant will become a non-executive chair. McMurty’s son, Richard, has also been appointed to the board. MF
Trident board backs Aussie buyout at 49p
Trident Royalties (TRR) looks set to be taken out in a £144mn cash deal with Deterra Royalties (AU:DRR). The move may come as a surprise to investors given the company has been listed for just four years, and was trading well over 50p just a year ago.
Since then, management has added several major royalties to the portfolio, and as the IC’s Simon Thompson has pointed out, its 1.05 per cent share of sales at US lithium project Thacker Pass could bring in serious cash once production is reached. A decline in electric vehicle sales growth has knocked the outlook for the metal in recent months, however. In the short term, the record gold price should drive 2024 cash profits up a quarter to $5.5mn (£4.3mn), as per analyst estimates.
The offer is a 22.5 per cent premium on Wednesday’s share price, while Trident also revealed it had rejected a 44p offer from Deterra in April. “While the Trident board remains confident in Trident's ability to succeed as an independent business and to continue delivering strong results and growth in the future, the offer from Deterra offers Trident shareholders both liquidity and an immediate cash premium,” said Trident chair Peter Bacchus. Trident shares climbed to 49p on the news. AH
