Final Results

Halma PLC
20 June 2006

                                   HALMA p.l.c.

                 PRELIMINARY RESULTS FOR THE YEAR TO 1 APRIL 2006

                                   20 JUNE 2006


     Record results with record investment in people, products and markets


Halma, the leading safety, health and sensor technology group, today announces
its preliminary results for the year to 1 April 2006.


Highlights include:


•    Record pre-tax profit* from continuing operations up 20.3% to £58.1m (2005:  
     £48.3m); organic** profit growth of 14.9%.  On a statutory basis profit 
     from continuing operations was up 17.9% to £56.6m.

•    Organic** revenue growth of 10.8%; revenue from continuing operations up 
     15.7% at £310.8m (2005: £268.7m).

•    Three acquisitions and eight disposals completed during the year, 
     reflecting Halma's strategy to position the Group for higher rates of 
     growth; acquisitions of Texecom, Netherlocks Safety Systems and Radio-Tech 
     all performing ahead of expectations and giving Halma access to important 
     new technology and growth markets.

•    High margins maintained and significant shareholder value created as Halma 
     delivers strong returns from its continuing businesses, with ROCE** of 
     56.9% and ROTIC** of 12.8%.

•    Good cash generation with significant financial resources available to 
     achieve the Group's growth plans; no gearing at year end.

•    Continuation of progressive dividend policy with a recommended increase of 
     5%; high level of earnings growth helps to increase dividend cover to 1.6 
     times.

•    Over 60% of Group revenue now comes from electronics-based products. Halma 
     has been reclassified into the Electronic and Electrical Equipment Sector 
     of the FTSE.

Notes:

The comparative figures for the 52 weeks to 2 April 2005 have been restated to
reflect the adoption of International Financial Reporting Standards.  See note 2
for details.

         
*  Adjusted to remove the amortisation of acquired intangible assets of £1.5m 
   (2005: £0.3m).

** Organic growth rates, Return on Capital Employed (ROCE) and Return on Total 
   Invested Capital (ROTIC) are non-GAAP performance measures used by management 
   in measuring the returns achieved from the Group's asset base. See note 7 for 
   details.






Commenting on the results, Andrew Williams, Chief Executive of Halma, said:


'This is a record performance by a significant margin which was achieved against
a background of major strategic change, and is testament to the quality of the
contributions made by our employees. We have a clear and robust growth strategy
and now have a stronger platform with enhanced growth potential.


'We will continue to pursue geographic expansion and new product development
energetically. Continued investment to extend our presence in key developing
markets and continuing development of senior management are key actions aimed at
sustaining profitable revenue growth.


'Our underlying growth prospects are positive and we are in a better position to
exploit them following the rapid recovery of our Water business and the
acquisitions and disposals completed during the year.  We enter the new year in
good shape.'







Geoff Unwin, Chairman of Halma, said:


'Behind these record results lies record investment - in people, innovation and
new markets as well as in acquisitions. This, together with our clarity of
direction and increased momentum, gives us confidence for the future.'






For further information, please contact:


Halma p.l.c.                                   [phone]
Andrew Williams, Chief Executive
Kevin Thompson, Finance Director

Hogarth Partnership Limited                    [phone]
Rachel Hirst/Andrew Jaques







A copy of this announcement, together with other information about Halma, may be
viewed on its website: www.halma.com.


A copy of the Annual Report and Accounts will be sent to shareholders on 3 July
2006 and will be available to the general public on written request to the
Company's registered office at: Misbourne Court, Rectory Way, Amersham, Bucks
HP7 0DE.



PHOTOGRAPHS

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' link, then
'Image Gallery'.  Photo queries:  David Waller [phone], e-mail:
[e-mail].


NOTE TO EDITORS

Halma develops and markets products used worldwide to protect life and improve
the quality of life.  The Group comprises three business sectors:



•         Infrastructure Sensors
•         Health and Analysis
•         Industrial Safety


The key characteristics of Halma's businesses are that they are based on
advanced technology and offer strong growth potential.  Many Group businesses
are a clear market leader in their specialist field and, in a number of cases,
are the dominant world supplier.



HALMA p.l.c.

Group Results for the 52 weeks to 1 April 2006

Financial Highlights


                                                                                            52 weeks
                                                                            52 weeks    2 April 2005
                                                              Change    1 April 2006       (restated)
Continuing operations:
Revenue                                                        + 16%         £310.8m         £268.7m
Adjusted profit before taxation (1)                            + 20%          £58.1m          £48.3m
Statutory profit before taxation                               + 18%          £56.6m          £48.0m

Adjusted earnings per share (2)                                + 20%          11.01p           9.16p
Statutory earnings per share                                   + 18%          10.73p           9.10p
Total dividends (paid and proposed) per share                 +   5%           6.83p           6.50p

Return on sales (3)                                                            18.7%           18.0%
Return on total invested capital (4)                                           12.8%           12.1%
Return on capital employed (4)                                                 56.9%           48.8%

The comparative figures for the 52 weeks to 2 April 2005 have been restated to
reflect the adoption of International Financial Reporting Standards.  See note 2
for details.

Pro-forma information:

1     Adjusted to remove the amortisation of acquired intangible assets of 
      £1,500,000 (2005: £343,000).
2     Adjusted to remove the amortisation of acquired intangible assets.  See 
      note 4 for details.
3     Return on sales is defined as adjusted(1) profit before taxation from 
      continuing operations expressed as a percentage of revenue from continuing 
      operations.
4     Organic growth rates, return on total invested capital and return on 
      capital employed are non-GAAP performance measures used by management in 
      measuring the returns achieved from the Group's asset base.
      See note 7 for details.






Chairman's statement

Geoff Unwin, Chairman of Halma, said:

During the last year, Halma has made significant progress

'First of all, the headline numbers. The total Group including discontinued
operations, which is what we were responsible for throughout the year, increased
revenue by 12.8% to £337.3 million (2004/05: £299.1 million). Profit before tax
and amortisation of acquired intangibles on this basis increased by 19.4% to
£59.6 million (2004/05: £49.9 million*). Revenue and profit before tax and
amortisation of acquired intangibles from continuing operations increased by
15.7% to £310.8 million and 20.3% to £58.1 million respectively. Statutory
profit before tax increased by 17.9% to £56.6 million. All these figures are
clear records for the Group. These results reflect organic revenue growth** of
10.8% and organic profit growth** of 14.9%. The Board is recommending a final
dividend of 4.12p per share, an increase of 5% for the year, in line with our
policy of progressively increasing the dividend but also increasing cover which
now moves to 1.6 times (2004/05: 1.5 times). Return on total invested capital**
improved to 12.8% (2004/05: 12.1%).


'Over the last few years our focus has been on re-establishing organic growth; a
point emphasised and supported by shareholders at last year's Annual General
Meeting. In previous statements I highlighted some of the areas that may have
been holding us back and some of our actions to address them, for example - more
and faster innovation, upgrading our sales capabilities, more investment in
training our people, sharpening and simplifying our devolved management
structures, rethinking management incentives and so on. Well, the action we took
certainly worked last year. The statistician in me would love to be able to
determine what benefit we got from what changes - intriguing, but impossible to
do with precision. What I can say, is that we are not resting on one year's
results and we continue to examine and debate each and every factor that may be
impeding us.


'What is also very noticeable is the impact of our new CEO Andrew Williams. Our
strategy is clearer than it has been since I arrived on the Board. Speed of
decision making has improved dramatically (the same piece of paper rarely gets
picked up off his desk twice) and this is spreading throughout the Group,
although Andrew would be the first to modestly say 'it's a team effort', and
he's right.


'With this strategy as a template, the direction of cash allocation is much
clearer. In line with this, we have disposed of eight businesses during the year
and acquired three, so, in turn, our structures and focus are also far clearer.
Our balance sheet remains strong - at the year end we had net cash of £4 million
despite investing £36 million in acquisitions and receiving £15 million from
disposals. Including £60 million of debt capacity, we have significant firepower
to acquire more companies in line with our strategic directions. We are also
investing in more sales and production infrastructure in the new fast-growing
economies - particularly China, the aim being to make it easier for our
individual companies to make further, and in some cases first, steps there in
developing more business.


'I should like to thank all of our employees for their dedication to our
customers and their constant ability to come up with innovative ideas. The
increased investment in people seems to be having a very significant payback
with a healthy queue of excellent internal candidates now clamouring to
participate in our customised management training.


'So, behind these record results also lies record investment - in people,
innovation and new markets as well as new acquisitions. This, together with
clarity of direction and increased momentum gives us confidence for the future.

'All in all, an excellent vintage.'


*    Restated under IFRS see note 1.
**   See Financial Highlights.





Chief Executive's strategic review

Andrew Williams, Chief Executive of Halma, said:

Record profit and revenues achieved against a background of major strategic change


'We have had an outstanding year producing profit growth from continuing
operations* of 20% (18% on a statutory basis) and revenue growth of 16%. Organic
growth* was 15% and 11%, for profit and revenue respectively.

'This is a record performance by a significant margin and was achieved against a
background of major strategic change. This is a testament to the robustness of
our growth strategy and the quality of the contributions made by our employees.

'We now report our results under three market-defined sectors: Infrastructure
Sensors, Health and Analysis and Industrial Safety. These replace the previous
six product-based divisions and more closely reflect the coherent nature of our
activities and the way we operate, as well as making it easier for shareholders
to gain a better understanding of what we do.

'Our return to organic growth was widespread across the Group and was
underpinned by a tremendous performance in the Health and Analysis sector.
Strong organic growth was boosted further by a rapid recovery by our Water
business. Infrastructure Sensors started to show promising revenue growth in the
second half, although continued investment in the sales and support structure
for the longer term suppressed short-term profits. All parts of our Industrial
Safety sector performed strongly with the buoyant oil and petrochemical market
contributing to healthy revenue and profit growth.

'I am very pleased with the record Return on Capital Employed (ROCE)* of 57%
achieved during the year. Our success in achieving growth has not come at the
expense of diluting the quality of our returns. Another year of strong cash
generation has funded organic growth, acquisitions and, for the 27th consecutive
year, enabled a further increase in our dividend of 5%. Between self-generated
cash and a longer term debt facility of £60 million, we have sufficient capital
resources to support our growth plans for the coming year.

'We completed three acquisitions, all of which are performing ahead of
expectations. Netherlocks, acquired in July, increased our presence in the oil
and petrochemical market and strengthened further our leadership in valve safety
interlocks. Radio-Tech, acquired in August, brought important wireless
communications technology to our Water business and offers new opportunities
elsewhere in the Group. In November, we acquired Texecom giving us an entry into
the strategically important security sensor market. Texecom offers us attractive
growth potential in its own right. It has common sales distribution channels
with Fire and similar technology platforms to our Door Safety activities,
providing additional opportunities for the longer term.

'The disposal of eight businesses demonstrated our commitment to actively
allocate capital and people resources. In February we sold our high power
Resistors business for £14 million. While this business had generated good value
for shareholders over many years, its recent performance relative to other Halma
companies, and in absolute terms, fell short of expectations. The net result of
the acquisitions and disposals made this year is that we are making more profit,
we have allocated more resource to markets with higher growth potential and we
have 10% fewer companies.

'We are expanding geographically. We have opened additional sales and technical
support offices in China, India, Malaysia, Spain, Ireland, US and, most
recently, Dubai. In addition, we have established new manufacturing facilities
in Eastern Europe and Tunisia. Although we have manufactured Infrastructure
Sensor products in China for over a decade, we are increasing our direct
presence in this important long-term growth market at a faster pace. For
example, we are creating new Halma 'hubs' in Shanghai and Beijing to help our
companies get new activities established or develop their existing activities
more rapidly. We expect those companies which are successful to spin-out and
develop as strong, independent operations in their own right.

'Last year, I mentioned the need for us not only to maintain our high level of
investment in Research & Development (R& D), currently 4% of revenues, but
improve speed to market too. This year we launched over 100 new products. There
are some early signs of improvement in speed to market in some parts of the
Group, although we can still do more. For example, high quality R&D resources in
lower cost territories, such as India, can supplement our essential in-house
technical capabilities to achieve shorter product development cycles.

'Our highly decentralised operating structure makes us particularly dependent on
the quality of our local management teams. Following the significant people
changes made at operating company board level over the past two years, it is
pleasing to see this action translate into improved results. To build further
momentum, we have created a bespoke development programme for our senior
management at Henley Management College, a leading UK business school. This
leadership development programme not only helps our management become even more
successful in their current role, but also gives us a stronger pool of talent to
draw on as new opportunities arise.

'I thank all the employees for their contribution during an exciting and
successful year. We can take great confidence in the exceptional results that
have been achieved during the year but recognise there is no room for
complacency. Our goal is to achieve growth and create value for shareholders
every year.

'We have made tremendous progress in 2005/06 in terms of both achieving organic
growth in the short term and improving our growth potential for the future. Our
underlying growth prospects remain good and we enter the new year better placed
to exploit them due to the rapid recovery in our Water business and new
acquisitions. I look forward to the year ahead with confidence.'


*   See Financial Highlights.


Financial review



Kevin Thompson, Finance Director of Halma, said:
Organic growth* in revenue of 11% and profit of 15%

'Revenue from continuing operations increased by £42 million (15.7%) to £310.8
million of which £13.1 million (4.9%) came from acquisitions made this year and
from the extra months' benefit of acquisitions made last year. Underlying
organic revenue growth* was therefore 10.8%. Profit before tax from continuing
operations before amortisation of acquired intangibles grew by 20.3% to the
record figure of £58.1 million and after adjusting for acquisitions, organic
profit growth* was 14.9%. Statutory profit before tax was 17.9% higher at £56.6
million. Currency translation contributed a modest 1% to revenue and profit
growth.

'We disposed of eight businesses in the year. The table below shows the results
both excluding and including those businesses:

                                       Continuing operations           Including discontinued operations
£ million                         2006       2005    % change             2006         2005     % change
Revenue                          310.8      268.7       15.7%            337.3        299.1        12.8%
Profit before tax**               58.1       48.3       20.3%             59.6         49.9        19.4%
Return on sales                  18.7%      18.0%                        17.7%        16.7%

**Excludes amortisation of acquired intangibles and profit on disposal of operations.

Comparatives have been restated on an IFRS basis.  See Financial Highlights.

'In overview, revenue growth was strong in the year and gross margins held firm.
Overheads were increased, in particular in the Infrastructure Sensors sector, to
accelerate future opportunity across the world. The net result of our
operational activity, acquisitions and disposals was to grow the return on sales
to 18.7% and increase profit on continuing operations before amortisation of
acquired intangibles and tax by £9.8 million.

'During the year under review we increased revenues in all territories, with 73%
of sales being made outside the UK. Indeed, sales outside of our traditional
primary markets in the UK, mainland Europe and the USA grew by 20%.

'Revenue from continuing operations increased to all of our geographic
destinations and is shown on the table below:


Revenue from continuing operations by destination
£ million                                                Revenue        % change

United States of America                                    94.0           19.4%
United Kingdom                                              82.9           18.0%
Mainland Europe                                             77.2            6.2%
Asia Pacific and Australasia                                33.3           10.2%
Africa, Near and Middle East                                14.8           49.5%
Other                                                        8.6           23.6%
                                                           310.8           15.7%

'The biggest absolute revenue growth came in our largest geographic sectors of
the USA and UK where organic growth was strong. There was double-digit organic
growth in Africa, Near and Middle East, in addition to the extra revenue in that
region coming from the acquisition of our security sensor business, Texecom,
which has a substantial branch network in South Africa. Mainland Europe showed a
lower rate of growth and although Asia Pacific and Australasia grew by more than
10%, we see the opportunity for higher rates of growth here in the future.

'All three of our sectors increased revenue by more than 10%, with the
Infrastructure Sensors sector benefiting from the acquisition of Texecom. The
Industrial Safety sector grew revenues by 16.8% and the Health and Analysis
sector increased by the highest rate at 20.0%, with the growth in these two
sectors predominantly organic. All three sectors increased profits.

'Revenue, profit and returns are discussed on a sector basis in the Sector
reviews below.

'Adjusted earnings per share* (which we consider gives a more consistent measure
of underlying performance) and statutory earnings per share on continuing
operations increased by 20% and 18% respectively, very good rates of growth. A
reconciliation of adjusted earnings figures to statutory figures is given in
note 4.



Important acquisitions and disposals were completed in the year

'We paid out cash of £36 million on acquisitions and received £15 million for
disposals in 2005/06, a net outflow of £21 million. The acquisition payments
included £8 million in deferred consideration, mainly in relation to Ocean
Optics which we acquired in 2004/05 and which achieved its maximum targets.
These acquisitions and disposals were an important part of reallocating Group
resources and positioning us for higher rates of growth.

'The largest acquisition in the year was that of Texecom Limited (UK) in
November 2005. We paid a total cash consideration of £26 million with the last
audited accounts showing revenues of £19.2 million and earnings before interest
and tax of £3.9 million. Prior to this we acquired Netherlocks Safety Systems
B.V. (The Netherlands) in July 2005 for €3 million (£2.1 million) and Radio-Tech
Limited (UK) in August 2005 for £2 million, these two businesses having a
combined annual profit of £0.7 million on revenue of £3.2 million in their last
audited accounts. There is no deferred consideration for Texecom but there is
the potential to pay a further £7.3 million of consideration for the other two
businesses conditional on substantial profit growth. The performance of each
business has exceeded our expectations with all achieving very good growth and
all delivering a return well in excess of the Group weighted average cost of
capital which is calculated as being 8%.

'In April 2006, early in the new financial year, we purchased Mikropack GmbH
Aufbautechnik in der Sensorik (Mikropack) for €2.3 million (£1.5 million) with
up to a further €2.3 million (£1.5 million) payable depending on performance.
Mikropack manufactures light sources and photonic accessories and joins our
Ocean Optics business.

'Disposal of the eight businesses converted assets, which were performing below
acceptable Group levels, into cash. In aggregate the businesses sold contributed
operating profit of £1.5 million to total Group profit in 2005 /06 and £1.6
million in the prior year. The largest element of the disposal proceeds came
from the sale of our group of five high power Resistor businesses, sold for £14
million in February 2006. The Consolidated income statement shows a profit from
discontinued operations of £1.3 million. This comprises a pre-tax gain on
disposal of £5.9 million, tax on disposal of £0.1 million, operating profit less
tax of £0.9 million and is after writing off goodwill of £5.4 million
attributable to these businesses.



Growing investment in new products and business assets

'Expenditure on Research & Development (R&D) in our continuing operations
increased by 20% to £13.5 million, representing 4.3% of revenue - a little
higher than the prior year. R&D expenditure as a percentage of revenue in each
of our three sectors was consistent with last year, with Health and Analysis the
highest at 4.9% of sales and Infrastructure Sensors at a similar rate. Under
IFRS we are required to capitalise certain development expenditure and include
it as an asset on the Consolidated balance sheet and also to amortise
expenditure from prior years. In the year we capitalised £2.5 million of such
expenditure and amortised £1.4 million, resulting in an asset of £3.8 million on
the closing balance sheet. All of these figures are at higher levels than in the
prior year, demonstrating the increase in the amount of development work which
we believe will have a future benefit. The net impact is that the Consolidated
income statement was charged with an 11% higher cost than last year.

'Expenditure on property, plant, equipment and computer software was 34% (£3.2
million) higher than 2004/05 at £12.6 million. There was less expenditure on
property this year but more investment in operating assets to improve the
performance of our businesses. The year's expenditure was 150% of
depreciation/amortisation, a higher ratio than typical but indicative of our
continued intention to invest for future growth.



Strong cash flow with significant financial resource available

'Cash flow was once again very good. Cash generated from operations was £70
million, including a small cash outflow (£0.7 million, 2005: £2.5 million
inflow) into working capital despite high rates of growth in the business
overall. We started and finished the year ungeared. The following table
summarises the change in net cash, the main elements of which are discussed in
this financial review.



Change in net cash
£ million                                               2006              2005
Cash generated from operations                          70.2              61.4
Acquisition of businesses                              (36.2)            (24.6)
Disposal of businesses                                  14.6              (1.7)
Development costs capitalised                           (2.5)             (1.1)
Net capital expenditure                                (11.6)             (9.0)
Dividends paid                                         (24.5)            (23.3)
Taxation paid                                          (16.8)            (14.5)
Issue of shares                                          0.6               2.5
Net finance (expense)/income                            (0.4)              0.2
Exchange adjustments                                    (1.9)              0.6
                                                        (8.5)             (9.5)
Net cash brought forward                                12.0              21.5
Net cash carried forward                                 3.5              12.0


'During the year we started to purchase Halma shares to be held in Treasury to
fund the new Performance Share Plan. In the coming year we would expect to
purchase £1 million to £2 million of Halma shares for this purpose and this is
likely to be an ongoing activity. We also expect to increase the amount of cash
paid into the Halma pension schemes each year following the anticipated outcome
of the main scheme valuation now in progress. The additional cash contributions
for 2006/07 are expected to be in the order of £4 million. These additional
demands on our cash will have some impact on our financial position but we do
not believe they will significantly affect our investment or growth potential.

'Whilst we were again ungeared at the year end we seek to maintain financial
flexibility so that short and long-term funding needs can be met and to allow
opportunities to be taken as they arise. The Group is able to borrow at
competitive rates and therefore consider this the most effective means of
funding increased investment in the immediate future. During the year we secured
a £60 million five-year debt facility from our well-established banking
partners, improving our ability to fund our medium-term growth plans.



Strong margins and returns with ROTIC increased to 12.8%

'High margins and strong returns underpin the resilience and strength of Halma.
We have benefited from the improvement in returns resulting from the sale of
lower return businesses and this is demonstrated by the fact that return on
sales for the total Group, including discontinued operations, would have
increased from 16.7% to 17.7% in the year. Return on sales on continuing
operations* increased from 18.0% to 18.7% this year with Health and Analysis
growing sharply from 16.1% to 21.0%, in part benefiting from the recovery in our
Water business but across the Group we achieved a widespread improvement.

'We do not specifically target improvement in return on sales however we have
found that as our businesses grow, many of them generate higher returns and
higher margins due to significant operational leverage - we have high-margin
businesses which benefit greatly from sales growth.

'Return on Capital Employed (ROCE) is our measure of operating performance (see
the calculation in note 7) and it increased to 56.9% (2004/05: 48.8%), a high
rate but not untypical for Halma. ROCE measures our stewardship of the assets we
use and the efficiency with which we run our businesses to generate the Group's
strong cash flows.

'Return on Total Invested Capital (ROTIC) increased to 12.8% (2004/05: 12.1%).
The calculation basis is described in note 7 - it is a post-tax measure and
includes in the denominator all historic goodwill but excludes the pension
deficit and also excludes the creditor relating to the pension obligations for
companies sold. We feel that a basis where an increased pension deficit improved
ROTIC would not be appropriate. The increased ROTIC arises because we have grown
earnings faster than the underlying capital base and we continue to exceed our
weighted average cost of capital (WACC) by a large margin, sustaining the
generation of significant value for shareholders. Together with Total
Shareholder Return, ROTIC is the key measure of performance which we employ in
our Performance Share Plan, aligning our senior executives with shareholders.



5% dividend increase and dividend cover raised

'We have a progressive dividend policy; growing our dividend but with the
objective of increasing cover towards a figure of around 2 over time, a level we
feel is appropriate for our business. With the high level of earnings growth
this year we have taken a good step towards this objective. The Board has
recommended a 5% increase in the final dividend to 4.12p which together with the
interim dividend (which was also 5% higher than last year) will give a total
dividend of 6.83p per share, assuming the final dividend is approved. The total
cost of the final dividend is expected to be £15.2 million, giving a total cost
of £25.2 million for the dividends paid in respect of the year ended 1 April
2006. We believe we have adequate distributable reserves for the foreseeable
future after taking into account the impact of inclusion of the pension deficit
discussed below. Dividend cover, based on continuing operations before
amortisation of acquired intangibles, is 1.6 times (2004/05: 1.5 times).



IFRS adopted with little impact on profits

'During 2005/06 the Group adopted International Financial Reporting Standards
(IFRS) in common with other listed companies in the European Union. This has
required restatement of the 2004/05 results reported previously under UK GAAP.

'There was little overall impact on Halma's reported financial results from the
adoption of IFRS. The Group's underlying business economics are unchanged.
Profit before taxation and amortisation of acquired intangibles/ goodwill under
IFRS was £0.1 million higher than under the accounting policies used in 2004/05.

'The main IFRS changes on the Consolidated balance sheet are that dividends are
now only accrued when the dividend is approved and the net pension liability on
the Group's two defined benefit schemes, which are closed to new members, is now
included in the Consolidated balance sheet.



Tax rate stays at 30%

'The effective rate of tax on profit from continuing operations, before
amortisation of acquired intangibles, is 30.1% (2004/05: 30.2%). This year's tax
rate is expected to be representative of the tax rate in the near future,
depending on the actual mix of profits made across the world.



Foreign exchange movements were not significant this year

'The Group has both translational and transactional currency exposures.
Translational exposures arise on the consolidation of overseas company results
into Sterling. Transactional exposures arise where the currency of sale or
purchase differs from the functional currency in which each company prepares its
local accounts and these exposures are the responsibility of local management.
The largest translational exposures are to the US Dollar and to a lesser extent
the Euro.

'Translational impacts on the 2005/06 results were modest and increased revenue
and profit by approximately 1%. US Dollar results were translated into Sterling
at a rate of 1.78 (2004/05: 1.84) and Euros were translated at 1.47 (2004/05:
1.47). Around one-third of Halma's revenue and profit is generated in US Dollars
and so a 1% weakening of the US Dollar relative to Sterling would reduce revenue
and profit by approximately 0.33% which represents £1 million in terms of
revenue and £0.2 million of profit.



Sector reporting changed to improve clarity and collaboration

'On 28 November 2005 we announced the change to reporting the Group's financial
performance under three new sectors, defined by markets rather than product
type. A restatement of the last three years' financial results under the new
sector headings was given at that time together with growth drivers and market
characteristics by sector.

'Each new sector, Infrastructure Sensors, Health and Analysis and Industrial
Safety, includes businesses with similar operating and market characteristics.
This makes the Group more simple to understand, helps us further develop our
market driven strategies and enables more proactive collaboration across the
Group.'


*   See Financial Highlights.








Business review


Infrastructure Sensors sector review



Infrastructure Sensors is our largest business contributing 42% of Group revenue
(£132 million) and 40% (£24 million) of Group profits.


Sector strategy

In this sector, our strategy is to be the leading supplier of sensors (and other
critical components) and not an installer of complete fire, security, automatic
door or elevator systems. Our strong focus on safety-critical sensor components
enables us to sell to the major global players in the building infrastructure
markets who supply complete, installed systems such as GE, Honeywell and Tyco in
Fire, and OTIS, Mitsubishi and Kone in Elevator Safety. By concentrating all our
efforts on a single system component, we can offer high performance products
complying with all the major international and national regulations and
standards.

Our Infrastructure Sensor products are used in both new build and refurbishment
projects so we work hard to ensure new sensor products are backwards-compatible
with existing installations.

R&D investment and product innovation is central to maintaining competitive
advantage in this sector. This is because constantly changing technical
standards and regulations drive our infrastructure sensor markets. We make an
active contribution to the development of international technical standards. In
the past year we worked closely with trade bodies such as CENELEC and EURALARM
which set standards in the EU for intruder alarms, and also with the British
Security Industry Association and the British Standards Institute on the
interpretation and implementation of EU standards.

To enhance public safety, governments worldwide set increasingly stringent
standards for fire protection products. In the past year alone, our fire
products companies have added 500 new technical approvals which allow us to sell
our products worldwide.



Market trends

Our security sensors sell into a global market, worth approximately £2 billion
annually, which is growing at 6% to 7% per year. Since acquisition, Texecom has
continued to grow faster than the market and we hold a dominant market share in
the UK and South Africa.

A global fire detection market growth of 4% per year is expected to continue for
the foreseeable future. Demand for fire detectors is particularly strong in
China and India, where infrastructure investment is generating annual market
growth of 15%, and in the Middle East which is growing by 8% per year.
Conversely, demand in developed markets such as Europe and the US has lagged
behind the global market growth rate. Falling end-user fire detector prices
coupled with shorter product life cycles have been characteristics of this
market since we first entered it over 20 years ago. However, we believe that our
investment in product development, manufacturing and the supply chain will
continue to deliver organic growth and maintain our excellent margins.

During 2005/06 we saw continuing price competition in our elevator products and
automatic door sensor markets. The Middle East, China and India are experiencing
some of the highest rates of high-rise building development in the world. To
strengthen our local presence, we recently established new elevator product
sales offices in Dubai, Mumbai and Chongqing (our fourth regional office in
China).

In our 2004/05 Operating review we identified growing demand for products which
assist evacuation during fire emergencies. Our investment in advanced technology
audible and visual devices which assist safe building evacuation produced
double-digit sales growth for these products.



Sector performance

Revenue growth at 12% for this sector included the benefit of the Texecom
acquisition made in the year. Despite this, profit growth at 2% was below our
target largely because of the extra investment in overheads made this year to
improve longer-term growth potential. This also has had the effect of reducing
the return on sales although this remains at a high level because product
margins were sustained. ROCE continues to be excellent.



Sector outlook

Investment to increase our direct presence in key developing markets and changes
to senior management are aimed at accelerating profitable revenue growth. In the
coming year, we expect those actions taken in 2005/06 to start to deliver
organic profit growth. Growth in this sector will also be boosted by a full
year's contribution from our new security business, Texecom. We will continue to
explore collaboration opportunities across all Infrastructure Sensor businesses.



Health and Analysis sector review

Health and Analysis is our fastest growing business sector and contributed 36%
(£112 million) of Group revenue and 38% (£23 million) of Group profit.

Sector strategy

After a year of restructuring, our Water business recovered ahead of schedule.
The costly product rationalisation completed on our network monitoring and leak
detection product range and the changes to US management in our UV business,
enabled double-digit organic revenue and profit growth to be delivered this
year. Market conditions helped because UK water companies increased capital
investment as they started a new five-year AMP period (a five-yearly capital
investment cycle regulated by the Drinking Water Inspectorate).

The acquisition of Radio-Tech brought new RF wireless communications technology
to our Water business and a broader asset monitoring and wireless connectivity
opportunity to many other businesses across the Group.

Our rate of innovation and that of our customers, in new products and processes,
is a major driver of success in this sector. During the year we increased our
investment in R&D at 4.9% of revenue and launched over 60 new products.

Relative to our other two sectors, Health and Analysis has a larger proportion
of revenue and profit made in US Dollars, hence significant movement in this
currency can have an impact on Sterling results.



Market trends

We sell fluid technology products into the analytical, life science and medical
instrumentation markets which continue to grow at high single-digit rates.
Demand is driven by growing populations, improving conditions in developing
countries and biotech/pharmaceutical research. Typically, instrumentation for
these markets must meet stringent testing and regulatory requirements which make
it difficult for the instrumentation manufacturer to change key components once
they are designed-in and certified. Our primary global market, life science
instrumentation, continued to grow in the high single-digit range.

As we indicated in our 2004/05 Operating review, the United States Postal
Service awarded further contracts for biohazard detection equipment which
created additional demand for our components. Also predicted last year, the fuel
cell market is moving slowly from prototyping towards low production volumes.

Markets for our ophthalmic instruments are heavily regulated. New health optics
products require lengthy technical approvals, and instruments using new
diagnostic methods need clinical trials. These factors add cost and time to new
product development, but are a strong disincentive to new competitors.

There are very strong underlying drivers for moderate growth to continue in the
health optics sector. An increasing number of older people in the developed
world inevitably promotes demand for eye care. Added to this, as GDP rises in
developing countries, demand for healthcare rises too.

We estimate the size of the global market for ultraviolet (UV) water treatment
systems to be in the region of £350 million per year. Forecast growth rates vary
from 5% to 15%, with highest growth predicted in the municipal sector. Demand
for UV drinking water treatment systems in the US was boosted in 2005/06 when
the Environmental Protection Agency (the principal regulator) approved UV
technology for controlling the cryptosporidium micro-organism in drinking water.

UV water treatment is another market dominated by product certifications. During
2005/06 we launched new products to satisfy the latest European DVGW and Onorm
approvals and a product line complying with the new US National Water Research
Institute standards will be launched in 2006/07. The forecast recovery in our UV
business, following reorganisation in the US, delivered 20% sales growth. The
leisure industry is showing high growth and sales to semiconductor fabricators
were the highest for several years.

Our photonics business saw record revenue and profit with the latter 24% ahead.
Our core photonics products, miniature spectrometers which measure light, are
sold into a highly fragmented but rapidly growing global market valued at
between £50 million and £150 million per year.

The largest market for water leakage control products remains the UK due to its
ageing water network, environmental and regulatory pressures on water companies,
regional population growth and recent drought conditions. We expect these
factors to drive UK demand for the foreseeable future. The US is our second
largest leakage control market where we won further large contracts in 2005/06,
notably for the cities of Albuquerque, New Mexico, and Birmingham, Alabama, and
for the island of Hawaii. There is little regulatory pressure on US water
companies to reduce leakage and rising US demand for our products is driven by
water shortages and increasing energy costs.





Sector performance

The strong revenue and profit growth (20% and 56% respectively) continued the
trend of the previous year. This growth came in part from acquisitions but
predominantly from the recovery in our Water businesses and strong performances
across the sector. These factors restored the return on sales to a more
typically high figure of 21%. ROCE and investment in new products were both at
good levels.





Sector outlook

The exceptional growth levels achieved in 2005/06 included the benefit of a
rapid recovery in our Water business. We expect the Health and Analysis sector
to make further progress in the coming year albeit without this one-off extra
boost to profits.



Industrial Safety sector review


This is our smallest sector, contributing 22% of Group revenue (£67 million) and
22% of Group profit (£13 million).



Sector strategy

Competition in the portable gas detectors sector is stepping up, particularly
for fixed-life disposable products. Our response has been to differentiate our
offering through technical innovation and high quality customer service. To
maintain competitive position in gas detectors, we are strengthening management,
focusing on reducing manufacturing costs and sharpening procurement. This
strategy led to improved margins and gas  detector profit 7% ahead in 2005/06.

Speeding up product development cycles to continually refresh product lines is a
key strategic objective to drive gas detector growth during the next five years.
Our R&D function has been extended and we are also using development resources
in China and India to help cut development timescales.

Our bursting disc competitors consolidated during 2005/06; we now compete with
just six other manufacturers worldwide. On a global scale, we rank fourth. To
realise our aim of raising global market share, we will extend our sales
operations and continue to improve our operating efficiencies.

During the year, one of our French safety interlock businesses established a new
manufacturing operation in Tunisia. This offers an interesting alternative to
'traditional' low cost locations giving us a highly educated work force and no
language or time zone issues. The early signs of this strategic move are
positive.





Market trends

The trend towards higher levels of health, safety and environmental awareness
globally provides long-term growth prospects for our Industrial Safety
businesses. While a lot of manufacturing industry is moving East, much of it is
still driven by the relocation of Western companies who are 'exporting' safety
standards. Overall, we believe the long-term growth rate of the market to be 3%
to 4% per year.

The global market for portable personal protection gas detectors is estimated to
be valued at £275 million per year. We also sell fixed gas detection systems
into a global market worth approximately £250 million per year. Both markets are
expanding annually at about 3%. Because gas detection equipment is safety-
critical, it requires regular servicing and calibration. Service is a key
component of our gas instrumentation offer and makes a substantial contribution
to sales.

We have built a market-leading position in the UK for boiler combustion test
instruments which optimise gas burning efficiency and minimise energy use. We
recently won a tender valued at £1 million to supply these instruments to
British Gas. The world market for bursting disc pressure safety devices
continues to grow slowly. We are seeing a gradual relocation of our customers'
manufacturing activities to low labour cost countries. Our response is to step
up selling operations in Eastern Europe, India and China. We won significant new
business in both Europe and the US due to our strategy of providing industry-
leading technical support and fast deliveries. This contributed to bursting disc
profit growth of 30% in 2005/06.

The acquisition of Netherlocks, based in The Netherlands, extended our presence
in the growing petrochemical, oil and gas market. We believe this market offers
attractive prospects for the next decade and beyond. Adoption of Western safety
standards in China and Eastern Europe is a clear trend but sales of interlocks
to these territories will build more slowly than for petrochemical, oil and gas.

Over the past two years we have been creating a new market for interlocking
devices in the logistics industry. Our Salvo safety system, which prevents
accidents to forklift truck operators, has been very well received by the market
and has contributed over £1 million of revenue.





Sector performance

Following the sale of our Resistors business, we achieved organic growth in all
sub-sectors and in all major geographic territories. Revenue growth was
particularly strong in our traditional markets of the UK, mainland Europe and
the USA. Revenue and profit growth included some benefit from acquisitions but
also strong organic growth in our businesses serving the oil and gas markets.
Return on sales improved and product margins increased. ROCE continued to be
very strong. As planned a relatively lower percentage of sales was invested in
R&D in this sector than in our other sectors as the markets served here tend to
be more mature and conservative. However, good growth opportunities continue to
exist.



Sector outlook

Whilst we have had an excellent year, we will continue to pursue our geographic
expansion and new product development plans energetically. Regulation and
legislation and reducing the risk of accidents play an increasingly important
role in the working environment. We are well placed to deliver growth in line
with market growth rates, at least, for the coming year.




Group outlook

As well as achieving excellent short-term progress during 2005/06 by
substantially raising organic growth, we established firm foundations for the
long-term growth of our business.

We will pursue geographic expansion and new product development energetically.
Continued investment to extend our presence in key developing markets and
continuing development of senior management are key actions aimed at sustaining
profitable revenue growth.

Key growth drivers, like regulation, legislation and attitudes to the risk of
accidents, will continue to play an important role in creating favourable market
conditions. Growth in the coming year will be aided by a full year's
contribution from our new acquisitions and we will continue to explore
collaboration opportunities between our businesses.

Our underlying growth prospects are positive and we are in a better position to
exploit them following the rapid recovery of our Water business and the
acquisitions and disposals completed during the year.  We enter the new year in
good shape.






Preliminary Results for the 52 weeks to 1 April 2006


Consolidated income statement                                                                                   £000
                                  52 weeks to 1 April 2006                     52 weeks to 2 April 2005
                                                                                  Before   Amortisation
                                    Before    Amortisation                     acquired     of acquired
                                 acquired      of acquired                  intangibles     intangibles
                              intangibles      intangibles                 amortisation    and goodwill
                             amortisation     and goodwill                 and goodwill     written off        Total
                             and goodwill      written off        Total     written off      (restated)    (restated)
                              written off                                    (restated)

Continuing operations
Revenue (note 1)                  310,768                -      310,768         268,719               -      268,719

Operating profit                   59,960           (1,500)      58,460          49,358            (343)      49,015
Finance income                      6,207                -        6,207           5,663               -        5,663
Finance expense                    (8,027)               -       (8,027)         (6,715)              -       (6,715)

Profit before taxation             58,140           (1,500)      56,640          48,306            (343)      47,963
Taxation (note 3)                 (17,507)             473      (17,034)        (14,585)            120      (14,465)

Profit for the year from
continuing operations              40,633           (1,027)      39,606          33,721            (223)      33,498
Discontinued operations
(note 8)
Net profit for the year from                                     
discontinued operations             6,739           (5,470)       1,269           1,065             (12)       1,053

Profit for the year
attributable                       
to equity shareholders             47,372           (6,497)      40,875          34,786            (235)      34,551

Earnings per ordinary share (note 4)
From continuing operations
Basic                              11.01p                        10.73p           9.16p                        9.10p
Diluted                                                          10.69p                                        9.09p
From continuing and
discontinued operations
Basic                                                            11.08p                                        9.38p
Diluted                                                          11.03p                                        9.37p
Dividends in respect of the year (note 5)
Paid and proposed (£000)                                         25,216                                       23,972

Paid and proposed per share                                       6.83p                                        6.50p


The comparative figures for the 52 weeks to 2 April 2005 have been restated for 
the adoption of International Financial Reporting Standards.






Consolidated balance sheet                                                                                          £000
                                                                                                                 2 April
                                                                                                   1 April          2005
                                                                                                      2006    (restated)
Non-current assets
Goodwill                                                                                           122,038        99,276
Other intangible assets                                                                             12,166         4,817
Property, plant and equipment                                                                       50,054        47,784
Deferred tax assets                                                                                 13,803        12,253

                                                                                                   198,061       164,130
Current Assets
Inventories                                                                                         36,660        35,502
Trade and other receivables                                                                         77,523        69,816
Cash and cash equivalents                                                                           35,826        45,348
                                                                                                   150,009       150,666

Total assets                                                                                       348,070       314,796
Current liabilities
Borrowings                                                                                          32,308        33,344
Trade and other payables                                                                            66,035        54,228
Tax liabilities                                                                                      7,316         5,137
                                                                                                   105,659        92,709

Net current assets                                                                                  44,350        57,957
Non-current liabilities
Retirement benefit obligations                                                                      46,019        40,845
Trade and other payables                                                                             5,096         5,768
Deferred tax liabilities                                                                             3,216         2,215
                                                                                                    54,331        48,828

Total liabilities                                                                                  159,990       141,537
Net assets                                                                                         188,080       173,259

Shareholders' equity
Called up share capital                                                                             36,933        36,880
Share premium account                                                                               10,702        10,111
Treasury shares                                                                                       (379)            -
Capital redemption reserve                                                                             185           185
Translation reserve                                                                                  5,944           144
Other reserves                                                                                       1,592           513
Retained earnings                                                                                  133,103       125,426
Total shareholders' equity                                                                         188,080       173,259

The comparative figures as at 2 April 2005 have been restated for the adoption 
of International Financial Reporting Standards.




Statement of recognised income and expense                                                                          £000
                                                                                                                52 weeks
                                                                                                52 weeks to   to 2 April
                                                                                                   1 April          2005
                                                                                                      2006    (restated)
Exchange differences on translation of foreign operations                                            5,826          144
Exchange differences recycled from reserves on disposal of                                             (26)           -
operations
Actuarial losses on defined benefit pension schemes                                                (10,355)         (48)
Tax on items taken directly to equity                                                                1,625           (4)
Net (loss)/income recognised directly in equity                                                     (2,930)           92
Profit for the year                                                                                 40,875        34,551
Total recognised income and expense for the year                                                    37,945        34,643




Reconciliation of movements in shareholders' equity                                                                 £000
                                                                                                             52 weeks to
                                                                                                52 weeks to      2 April
                                                                                                   1 April          2005
                                                                                                      2006    (restated)
Shareholders' equity brought forward                                                               173,259       159,027

Profit for the year                                                                                 40,875        34,551
Dividends paid                                                                                     (24,468)     (23,320)
Exchange differences on translation of foreign operations                                            5,826           144
Exchange differences recycled from reserves on disposal of                                             (26)            -
operations
Actuarial losses on defined benefit pension schemes                                                (10,355)         (48)
Tax on items taken directly to equity                                                                1,625           (4)
Net proceeds of shares issued                                                                          644         2,546
Treasury shares purchased                                                                             (379)            -
Movement in other reserves                                                                           1,079           363
Total movement in shareholders' equity                                                              14,821        14,232
Shareholders' equity carried forward                                                               188,080       173,259




Consolidated cash flow statement                                                                                   £000
                                                                                                            52 weeks to
                                                                                                52 weeks to     2 April
                                                                                                   1 April         2005
                                                                                                      2006   (restated)
Net cash inflow from operating activities (note 6)                                                  53,362       46,944

Cash flows from investing activities
Purchase of property, plant and equipment                                                          (11,878)     (8,896)
Purchase of computer software                                                                         (717)       (523)
Proceeds from sale of property, plant and equipment                                                  1,032         418
Development costs capitalised                                                                       (2,500)     (1,122)
Interest received                                                                                    1,026       1,086
Acquisition of businesses                                                                          (36,178)    (23,536)
Disposal of businesses                                                                              14,641      (1,681)
Net cash used in investing activities                                                              (34,574)    (34,254)

Financing activities
Dividends paid                                                                                     (24,468)    (23,320)
Proceeds from issue of share capital                                                                   644       2,546
Interest paid                                                                                       (1,455)       (889)
(Repayment)/drawdown of borrowings                                                                  (3,050)      5,764
Net cash used in financing activities                                                              (28,329)    (15,899)

Decrease in cash and cash equivalents (note 6)                                                      (9,541)     (3,209)

Cash and cash equivalents brought forward                                                           45,348      48,482
Exchange adjustments                                                                                    19          75
Cash and cash equivalents carried forward                                                           35,826      45,348


The comparative figures for the 52 weeks to 2 April 2005 have been restated for 
the adoption of International Financial Reporting Standards.


 Notes to the Preliminary Announcement




 1   Segmental analysis

                                                                                                                   £000
     Sector analysis                                                   Revenue                      Profit
                                                                                    52 weeks                   52 weeks 
                                                                   52 weeks to           to     52 weeks to
                                                                       1 April      2 April                     2 April
                                                                          2006         2005        1 April         2005
                                                                                  (restated)          2006    (restated)
     Infrastructure Sensors                                            131,860      118,200        24,106        23,739
     Health and Analysis                                               111,653       93,149         23,395       15,002
     Industrial Safety                                                  67,648       57,923         12,857       10,089
     Inter-segmental sales                                                (393)        (553)             -            -
     Central companies                                                       -            -           (398)         528
     Continuing operations                                             310,768      268,719         59,960       49,358

     Discontinued operations (note 8)                                   26,580       30,400          1,501        1,606
     Net finance expense                                                     -            -         (1,820)      (1,052)

     Group revenue/profit before amortisation of acquired              337,348      299,119         59,641        49,912
     intangibles
     Amortisation of acquired intangibles                                    -            -         (1,529)        (361)
     Profit on disposal of operations before tax (note 8)                    -            -            494            -
     Taxation                                                                -            -        (17,731)     (15,000)
     Revenue/profit for the year                                       337,348      299,119         40,875        34,551





                                                                                                                  £000
     Geographical analysis                                            Revenue by destination         Revenue by origin
                                                                                    52 weeks               52 weeks to
                                                                   52 weeks to           to     52 weeks to
                                                                       1 April      2 April                     2 April
                                                                          2006         2005        1 April         2005
                                                                                  (restated)          2006    (restated)
     United Kingdom                                                     82,930       70,260        173,168      149,790
     United States of America                                           94,043       78,758        104,295       85,245
     Mainland Europe                                                    77,183       72,702         45,788       43,112
     Asia Pacific and Australasia                                       33,293       30,198         15,455       14,536
     Africa, Near and Middle East                                       14,709        9,838              -            -
     Other countries                                                     8,610        6,963              -            -
     Inter-segmental sales                                                   -            -        (27,938)     (23,964)
     Revenue from continuing operations                                310,768      268,719        310,768      268,719
     Discontinued operations (note 8)                                   26,580       30,400         26,580       30,400
     Group revenue                                                     337,348      299,119        337,348      299,119


                                                                                                          Profit
                                                                                                             52 weeks to
                                                                                               52 weeks to       2 April
                                                                                                   1 April          2005
                                                                                                      2006    (restated)
     United Kingdom                                                                                 30,354       25,758
     United States of America                                                                       20,149       13,674
     Mainland Europe                                                                                 7,632        7,258
     Asia Pacific and Australasia                                                                    1,825        2,668
     Profit from continuing operations                                                              59,960       49,358
     Discontinued operations (note 8)                                                                1,501        1,606
     Net finance expense                                                                            (1,820)      (1,052)
     Group profit before amortisation of acquired intangibles                                       59,641       49,912
     Amortisation of acquired intangibles                                                           (1,529)        (361)
     Profit on disposal of operations before tax (note 8)                                              494            -
     Taxation                                                                                      (17,731)     (15,000)
     Profit for the year                                                                            40,875       34,551



 2   Basis of Preparation

The preliminary results for the year to 1 April 2006 have been prepared in
accordance with International Financial Reporting Standards (IFRS) as
adopted by the European Union and applied in accordance with the Companies Act
1985. This is the first year in which the Group has prepared its financial
statements under IFRS and the comparative information for the year to 2
April 2005, which was originally prepared under UK Generally Accepted Accounting
Practice (UK GAAP), has been restated to comply with IFRS.  An explanation
of the transition to IFRS and the reconciliations from the previously
published UK GAAP financial statements to IFRS were contained in a press release
issued by the Group on 2 September 2005.

This Preliminary Announcement does not constitute the Group's statutory accounts
for the years ended 1 April 2006 or 2 April 2005, but is derived from those
accounts.  Nor does it contain sufficient information to comply with the
disclosure requirements of IFRS.  Statutory accounts for the year to 2 April
2005, which were prepared in accordance with UK GAAP, have been delivered to the
Registrar of Companies.  Statutory accounts for 2005/06 which comply with IFRS
will be delivered before the Company's Annual General Meeting.  The auditors
have reported on these accounts; their reports were unqualified and did not
contain statements under s237 (2) or (3) of the Companies Act 1985.


This Preliminary Announcement was approved by the Board of Directors on 20 June 2006.




 3   Taxation                                                                                                      £000
                                                                                                            52 weeks to
                                                                                                52 weeks to     2 April
                                                                                                   1 April         2005
                                                                                                      2006    (restated)
     Current tax
     UK corporation tax at 30% (2005: 30%)                                                           9,246        7,615
     Overseas taxation                                                                               8,271        6,436
     Adjustments in respect of prior years                                                             133          (28)
     Total current tax                                                                              17,650       14,023

     Deferred tax
     Origination and reversal of timing differences                                                   (558)         423
     Adjustments in respect of prior years                                                             (58)          19
     Total deferred tax (credit)/charge                                                               (616)         442
     Tax on profit from continuing operations                                                       17,034       14,465
     Tax on profit from discontinued operations                                                        697          535
     Total tax charge recognised in the Consolidated income                                         17,731       15,000
     statement

     Reconciliation of the effective tax rate:
     Profit before tax - continuing operations                                                      56,640       47,963
     Profit before tax - discontinued operations                                                     1,966        1,588
                                                                                                    58,606       49,551
                                                                                                               
     Tax at the UK corporation tax rate of 30% (2005: 30%)                                          17,582       14,865 
     Overseas tax rate differences                                                                   1,116          840
     Expenses not deductible for tax purposes                                                       (1,042)        (696)
     Adjustments in respect of prior years                                                              75           (9)
                                                                                                    17,731       15,000

     Effective tax rate                                                                              30.3%         30.3%





 4   Earnings per ordinary share

Basic earnings per ordinary share are calculated using the weighted average of
369,053,181 shares in issue during the year (net of shares purchased by the
Company and held as treasury shares) (2005: 368,181,035).  Diluted earnings per
ordinary share are calculated using the weighted average of 370,435,138 shares
(2005: 368,697,347) which includes dilutive potential ordinary shares of
1,381,957 (2005: 516,312).  Dilutive potential ordinary shares are calculated
from those exercisable share options where the exercise price is less than the
average price of the Group's ordinary shares during the year.

Earnings from continuing operations excludes the net profit from discontinued
operations.  Adjusted earnings is calculated as earnings from continuing
operations excluding the amortisation of acquired intangible assets after tax. 
The Directors consider that adjusted earnings represents a more consistent
measure of underlying performance. A reconciliation of earnings and the effect
on basic earnings per share figures is as follows:


                                                                                    52 weeks                52 weeks to
                                                                   52 weeks to           to     52 weeks to
                                                                       1 April      2 April                      2 April
                                                                          2006         2005        1 April          2005
                                                                          £000    (restated)          2006    (restated)
                                                                                       £000          pence         pence
                                                                                 
     Earnings from continuing and discontinued operations               40,875       34,551          11.08         9.38
     Remove earnings from discontinued operations                       (1,269)      (1,053)         (0.35)       (0.28)
     Earnings from continuing operations                                39,606       33,498          10.73         9.10
     Add back amortisation of acquired intangibles (after tax)           1,027          223           0.28         0.06
     Adjusted earnings                                                  40,633       33,721          11.01         9.16



 5   Ordinary dividends

                                                                                    52 weeks                52 weeks to
                                                                   52 weeks to           to     52 weeks to
                                                                       1 April      2 April                      2 April
                                                                          2006         2005        1 April          2005
                                                                         pence    (restated)          2006    (restated)
                                                                                      pence           £000          £000
                                                                                      
     Amounts recognised as distributions to shareholders in
     the year
     Final dividend for the year to 2 April 2005 (3 April 2004)           3.92         3.75         14,462        13,810
     Interim dividend for the year to 1 April 2006 (2 April 2005)         2.71         2.58         10,006         9,510
                                                                          6.63         6.33         24,468        23,320
     Dividends in respect of the year
     Interim dividend for the year to 1 April 2006 (2 April 2005)         2.71         2.58         10,006         9,510
     Proposed final dividend for the year to 1 April 2006                 4.12         3.92         15,210        14,462
     (2 April 2005)
                                                                          6.83         6.50         25,216        23,972



The proposed final dividend is subject to approval by shareholders at the Annual
General Meeting and has not been included as a liability in these financial
statements.  If approved, the final dividend for 2005/06 will be paid on 23
August 2006 to shareholders on the register at the close of business on 21 July
2006.




 6   Notes to the cash flow statement                                                                              £000
                                                                                                            52 weeks to
                                                                                               52 weeks to      2 April
                                                                                                   1 April         2005
                                                                                                      2006   (restated)
     Reconciliation of profit from operations to
     net cash inflow from operating activities
     Profit from continuing operations before taxation                                              58,460        49,015
     Profit from discontinued operations before taxation                                             1,472         1,588
     Depreciation and amortisation of computer software                                              8,373         7,901
     Amortisation of capitalised development costs                                                   1,441         1,054
     Amortisation of acquired intangible assets                                                      1,529           361
     Share-based payment expense in excess of amounts paid                                             742           192
     Additional payments to pension scheme                                                          (1,357)      (1,139)
     Loss/(profit) on sale of property, plant and equipment                                            174          (21)
     Operating cash flows before movement in working capital                                        70,834        58,951
     Decrease/(increase) in inventories                                                                647       (1,000)
     (Increase)/decrease in receivables                                                             (6,225)          780
     Increase in payables                                                                            4,921         2,707
     Cash generated from operations                                                                 70,177        61,438
     Taxation paid                                                                                 (16,815)     (14,494)
     Net cash inflow from operating activities                                                      53,362        46,944

     Reconciliation of net cash flow to movement in net cash
     Decrease in cash and cash equivalents                                                          (9,541)      (3,209)
     Loans acquired                                                                                      -       (1,125)
     Cash outflow/(inflow) from borrowings                                                           3,050       (5,764)
     Exchange adjustments                                                                           (1,995)          554
                                                                                                    (8,486)      (9,544)
     Net cash brought forward                                                                       12,004        21,548
     Net cash carried forward                                                                        3,518        12,004


                                                                    At 2 April                    Exchange    At 1 April
                                                                          2005    Cash flow     adjustments         2006
     Analysis of net cash
     Cash and cash equivalents                                          45,348       (9,541)            19        35,826
     Overdrafts                                                           (240)         241             (1)            -
                                                                        45,108       (9,300)            18        35,826
     Bank loans                                                        (33,104)       2,809         (2,013)     (32,308)
                                                                        12,004       (6,491)        (1,995)        3,518





 7   Non-GAAP measures

                                                                                                                  £000
     Return on capital employed                                                                            52 weeks to
                                                                                                52 weeks to    2 April
                                                                                                   1 April        2005
                                                                                                      2006   (restated)
     Operating profit from continuing operations before
     amortisation                                                                                   59,960      49,358
     of acquired intangibles
     Operating profit from discontinued operations in prior
     period before                                                                                       -       1,606
     amortisation of acquired intangibles
     Operating return                                                                               59,960      50,964

     Capitalised software costs within intangible assets                                             1,213       1,112
     Capitalised development costs within intangible assets                                          3,827       2,739
     Property, plant and equipment                                                                  50,054      47,784
     Inventories                                                                                    36,660      35,502
     Trade and other receivables                                                                    77,523      69,816
     Trade and other payables                                                                      (66,035)    (54,228)
     Tax liabilities                                                                                (7,316)     (5,137)
     Non-current trade and other payables                                                           (5,096)     (5,768)
     Add back retirement benefit accruals included within                                            4,763         558
     payables
     Add back accrued deferred purchase consideration                                                9,803      12,039
     Capital employed                                                                              105,396     104,417

     Return on capital employed                                                                      56.9%       48.8%

     Return on total invested capital

     Profit from continuing operations before amortisation
     of acquired intangibles after taxation                                                         40,633      33,721
     Profit from discontinued operations in prior period
     before                                                                                              -       1,065
     amortisation of acquired intangibles after taxation
     Return                                                                                         40,633      34,786
     Total shareholders' equity                                                                    188,080     173,259
     Add back retirement benefit accruals included within                                            4,763         558
     payables
     Add back retirement benefit obligations                                                        46,019      40,845
     Less associated deferred tax assets                                                           (13,803)    (12,253)
     Cumulative amortisation of acquired intangibles                                                 1,890         361
     Goodwill on disposals                                                                           5,441           -
     Goodwill amortised prior to 3 April 2004                                                       13,177      13,177
     Goodwill taken to reserves prior to 28 March 1998                                              70,931      70,931
     Total invested capital                                                                        316,498     286,878

     Return on total invested capital                                                                12.8%       12.1%



Organic growth

Organic growth measures the change in the revenue and profit from continuing
Group operations.  The effect of acquisitions made during the current or prior
financial year has been equalised by subtracting from the current year figures a
pro-rated contribution based on their revenue and profit at the date of
acquisition.


                                                      Revenue                              Profit* before taxation

                                            2006         2005           %              2006           2005             %
                                            £000         £000         growth           £000           £000        growth
     Continuing operations               310,768      268,719                        58,140         48,306
     Acquired revenue/profit             (13,085)           -                        (2,638)             -
                                         297,683      268,719         10.8%          55,502         48,306        14.9%

    * before amortisation of acquired intangibles





 8   Discontinued operations

     During 2005/06 the Group sold the following non-core
     businesses:



     Company                                            Date of disposal    Principal activity Country of incorporation

     SEAC Limited                                         September 2005     Industrial Safety           United Kingdom
     Secomak Limited                                       December 2005     Industrial Safety           United Kingdom
     Marathon Sensors Inc.                                 December 2005   Health and Analysis                      USA
     Cressall Resistors Limited                            February 2006     Industrial Safety           United Kingdom
     IPC Resistors Company                                 February 2006     Industrial Safety                   Canada
     IPC Power Resistors Inc.                              February 2006     Industrial Safety                      USA
     Mosebach Manufacturing Company                        February 2006     Industrial Safety                      USA
     Post Glover Resistors Inc.                            February 2006     Industrial Safety                      USA



The results of these discontinued operations, which have been included in 
the Consolidated income statement, were as follows:


                                                                                                                    £000
                                                                                                             52 weeks to
                                                                                                52 weeks to      2 April
                                                                                                   1 April          2005
                                                                                                      2006    (restated)
     Revenue                                                                                        26,580       30,400
     Operating expenses                                                                            (25,079)     (28,794)
     Operating profit before amortisation of acquired                                                1,501        1,606
     intangibles
     Amortisation of acquired intangible assets                                                        (29)         (18)
     Taxation                                                                                         (552)        (535)
     Profit after taxation                                                                             920         1,053
     Profit on disposal of operations                                                                5,909            -
     Foreign exchange differences recycled from reserves                                                26            -
     Associated goodwill and acquired intangible assets                                             (5,441)           -
     Profit on disposal of operations before taxation                                                  494            -
     Tax on profit on disposal of operations                                                          (145)           -
     Profit on disposal of operations after taxation                                                   349            -

     Net profit from discontinued operations                                                         1,269        1,053

     The net cash inflow in the year on disposal of operations was £14,641,000.







Cautionary note

This Preliminary 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.



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