Disposal and trading update
Halma PLC
28 February 2006
Halma p.l.c. ('Halma')
SALE OF RESISTOR BUSINESSES AND UPDATE ON CURRENT TRADING
Halma, the leading safety, health and sensor technology group, announces that on
27 February 2006 it completed the disposal of the high power Resistor businesses
from its Industrial Safety sector to subsidiaries of Telema SpA, based in Milan,
Italy for a cash consideration of US$17.7 million and €5.0 million
(approximately £13.5 million).
This disposal follows closely upon the sale on 13 December 2005 of Secomak
Limited to Secomak Holdings Limited for £1 million cash with an additional
consideration of £500,000 over the next six years, and the sale on 29 December
2005 of Marathon Sensors Inc. to Marathon Multinational Industries Corp. for $1
million cash with an additional consideration of $300,000 over the next four
years (approximately £0.7 million in total).
Commenting on the above changes, Andrew Williams, Group Chief Executive, said:
'These latest disposals give further evidence of the strategic action being
taken to transform Halma into a business capable of delivering higher growth and
continuing strong returns for shareholders. Whilst the businesses being sold
have generated value over many years, I believe they are better placed under new
ownership and Halma's shareholders are better served by us concentrating more of
our resources on our core business sectors.
'In June 2005, I signalled our intention to review all strategic options for
these businesses. This review and our success in improving the performance of
our Resistor businesses have proven fruitful and resulted in the successful sale
to Telema, who already have a leading presence in the high power resistors
market. The Board believes that the Group has realised full and fair value for
these businesses through this transaction.
'Following these disposals more than 60% of our ongoing sales relate to
Electrical or Electronic products. Halma now has a more focussed portfolio with
a greater proportion of our resources allocated to sectors delivering higher
rates of return and offering more attractive growth prospects.'
Current trading remains strong
Sales and orders have continued to grow year-on-year. The Group is currently on
track to deliver a performance in the year to 1 April 2006 in line with current
market expectations, despite the reduction in operating profit arising from the
disposals announced today.
The Group will provide a further trading update at the end of April 2006 as
previously scheduled.
Management changes
Following the disposal of eight Group companies in the past five months, Bill
Seymour will be leaving the Group after a period of handover of his
responsibilities for the Elevator and Door Safety Division to John Campbell.
Andrew Williams commented:
'Bill Seymour has made a significant contribution during his time with the
Group, firstly as a Company President and then as a Divisional Chief Executive.
In recent years Bill led a wide geographic spread of companies and headed up the
acquisition of BEA, the Group's largest acquisition. Bill leaves Halma to
pursue other personal and professional goals and goes with our sincere thanks
and best wishes. John Campbell is a member of Halma's Executive Board and was
previously responsible for our Resistor businesses. Having successfully managed
the disposal of those businesses I wish him further success in leading and
developing our Elevator and Door Safety activities towards greater growth.'
For further information please contact:
Halma p.l.c. +44 (0)1494 721111
Andrew Williams, Chief Executive
Kevin Thompson, Finance Director
Hogarth Partnership Limited +44 (0)20 7357 9477
Rachel Hirst/Andrew Jacques
Notes
1. A copy of this announcement, together with other information about Halma,
may be viewed on its website: www.halma.com.
2. The legal entities comprising the high power Resistor business are Cressall
Resistors Limited, IPC Power Resistors Inc., IPC Resistors Company,
Mosebach Manufacturing Company and Post Glover Resistors Inc.
This information is provided by RNS
The company news service from the London Stock Exchange
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