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Halma PLC (HLMA)

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Monday 28 November, 2005

Halma PLC

New Reporting Sectors

Halma PLC
28 November 2005



                                          HALMA p.l.c. ('Halma')



                                          NEW REPORTING SECTORS



                                             28 November 2005





Halma, the leading safety, health and sensor technology group, today issues a reconciliation of the
Group's historic results under the three new reporting sectors for its business.  This announcement is
being made in advance of the Group's interim results for the six months to 1 October 2005 which will be
announced on 6 December 2005.



New sectors defined by markets will support our growth strategy



As announced in our Trading Update of 27 October 2005, we will now be reporting our financial performance
under three new sectors. These new groupings, defined by markets rather than product type, will make the
Group simpler to understand by all stakeholders.



Each new sector includes businesses with similar operating and market characteristics.  This will help us
further develop our market-driven strategies and enable more proactive collaboration across the Group.



The fundamental Group philosophy of giving subsidiaries autonomy and freedom to operate independently
remains firmly in place. However, we can do more to leverage the broader product and selling strengths
that exist across those businesses operating in the same, or adjacent, markets.



Financial analysis shows full year and interim results for each sector



Appendix A gives a financial analysis restating Halma's last 3 years' full year and interim revenue and
profit before taxation under the new sector headings, on a UK GAAP basis.  It also includes a bridge
between the UK GAAP and IFRS revenue and profit before taxation numbers for 2004/05.  All of these
schedules are unaudited but are based on the audited UK GAAP accounts for the relevant year.



For the first time, this analysis discloses individual sector profits at the interim stage.  In addition,
Group Central Company costs/income are disclosed separately, rather than incorporated into one of the
sectors.



Central Companies provide services to the Group's operating businesses.  Costs include those of centrally
based executives and limited central resources.  Income is generated via a 'cost of capital' charge based
on the capital used in each business, reflecting their scale and complexity.  In recent years central
income has decreased mainly because the operating businesses have reduced their capital employed.





New sectors align with operational management



The new reporting sectors now align more closely with the operating responsibilities of our Divisional
Chief Executives.


Infrastructure Sensors     -    Fire
                           -    Elevator and Door Safety
                           -    Security

Health and Analysis        -    Optics and Specialist
                           -    Water

Industrial Safety          -    Gas
                           -    Process Safety
                           -    Resistors


Common operating and market characteristics will encourage collaboration



Appendix B gives an outline of the major growth drivers and operating characteristics common within each
new sector.



Grouping together businesses that have similar operational and market characteristics will help senior
management to identify and address major opportunities or threats at an earlier stage. Sharing knowledge
of common customers or solutions to similar technical problems will enhance our ability to increase the
pace of change across the business.







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 Jaques






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










                                              APPENDIX A



                            Financial analysis and reconciliation by sector





New reporting sectors under UK GAAP:



£000                                                                  Financial years


                                                       2002/03             2003/04             2004/05
Revenue

Infrastructure Sensors                                  96,722             120,410             118,200

Health and Analysis                                     69,797              75,041              95,075

Industrial Safety                                       89,878              85,557              86,497

Inter-segmental sales                                   (2,396)             (1,397)               (653)

                                                       _______             _______             _______

Total continuing operations                            254,001             279,611             299,119

Discontinued operations                                 13,292              13,029                   -

                                                       _______             _______             _______

Revenue                                                267,293             292,640             299,119

                                                       _______             _______             _______

Profit before Taxation
Infrastructure  Sensors                                 19,586              24,498              23,779
Health and Analysis                                     10,870              12,910              15,105
Industrial Safety                                       12,841              11,679              10,961
Central companies                                        2,726               1,335                 499
                                                       _______             _______             _______
Total continuing operations                             46,023              50,422              50,344
Discontinued operations                                     77                (370)                  -
                                                       _______             _______             _______
                                                        46,100              50,052              50,344
Interest                                                   408                 232                  45
                                                       _______             _______             _______
Profit before taxation, goodwill
amortisation and exceptional items                      46,508              50,284              50,389

Goodwill amortisation                                   (3,235)             (4,220)             (5,491)
Exceptional items                                            -              (9,149)                  -
                                                       _______             _______             _______
Profit before taxation                                  43,273              36,915              44,898
                                                       _______             _______             _______






£000                                                                   Interim periods



                                                        2002/03            2003/04             2004/05
Revenue

Infrastructure Sensors                                   39,348             60,173              58,466

Health and Analysis                                      33,223             35,686              44,185

Industrial Safety                                        44,892             44,765              41,887

Inter-segmental sales                                      (785)              (848)               (409)

                                                        _______            _______             _______

Total continuing operations                             116,678            139,776             144,129

Discontinued operations                                   7,168              7,124                   -

                                                        _______            _______             _______

Revenue                                                 123,846            146,900             144,129

                                                        _______            _______             _______

Profit before Taxation
Infrastructure  Sensors                                   7,783             12,305              11,776
Health and Analysis                                       5,089              5,701               7,069
Industrial Safety                                         6,451              5,914               5,343
Central companies                                         1,124                643                 315
                                                        _______            _______             _______
Total continuing operations                              20,447             24,563              24,503
Discontinued operations                                     276               (129)                  -
                                                        _______            _______             _______
                                                         20,723             24,434              24,503
Interest                                                    496                 15                 115
                                                        _______            _______             _______
Profit before taxation and goodwill
amortisation                                             21,219             24,449              24,618

Goodwill amortisation                                    (1,138)            (2,116)             (2,667)
                                                        _______            _______             _______
Profit before taxation                                   20,081             22,333              21,951
                                                        _______            _______             _______







Reconciliation of old to new sectors under UK GAAP/IFRS:




                                      52 weeks ended 2 April 2005

£000
Revenue                                          UK GAAP                                      IFRS

                                Old                                    New                                   New
                            Sectors         Gas       Other        Sectors                               Sectors

Fire and Gas                 75,539
Elevator & Door              62,529
Safety
                            _______
                                                                                   Infrastructure
                            138,068     (24,421)      4,553        118,200         Sensors               118,200

Water                        32,466
Optics & Specialist          65,442
                            _______
                                                                                   Health and
                             97,908       5,128      (7,961)        95,075         Analysis               95,075

Process Safety               36,214
Resistors                    27,699
                            _______
                             63,913      19,257       3,327         86,497         Industrial Safety      86,497
Inter-segmental                                                                    Inter-segmental
sales                          (770)         36          81           (653)        sales                    (653)
                            _______     _______     _______        _______                               _______
Revenue                     299,119           -           -        299,119         Revenue               299,119
                            _______     _______     _______        _______                               _______









£000
Profit before taxation                               UK GAAP                                    IFRS

                                Old                                    New                             IFRS
                            Sectors         Gas       Other        Sectors                      Adjustments    Profit

Fire and Gas                 16,713
Elevator & Door
Safety                       11,510
                            _______
                                                                                   Infrastructure
                             28,223      (4,688)        244         23,779         Sensors             (40)   23,739

Water                         2,616
Optics & Specialist*         11,583
                            _______
                                                                                   Health and
                             14,199       1,962      (1,056)        15,105         Analysis           (121)   14,984
                                                                                                                        

Process Safety                6,503
Resistors                     1,419
                            _______
                              7,922       2,726         313         10,961         Industrial Safety   205    11,166

Central companies                 -           -         499            499         Central companies   576     1,075
                            _______     _______     _______        _______                         _______   _______
                             50,344           -           -         50,344                             620    50,964
                            _______     _______     _______        _______                         _______   _______

Interest                         45           -           -             45         Interest         (1,097)   (1,052)

Goodwill                                                                           Goodwill
amortisation                 (5,491)          -           -         (5,491)        amortisation      5,491         -

Acquired                                                                           Acquired
intangibles                                                                        intangibles
amortisation                      -           -           -              -         amortisation      (361)     (361)
                            _______     _______     _______        _______                         _______   _______
Profit before                                                                      Profit before
taxation                     44,898           -           -         44,898         taxation         4,653    49,551
                                                                                                                        
                            _______     _______     _______        _______                         _______   _______

* including holding companies


                                                26 weeks ended 2 October 2004

£000
Revenue                                         UK GAAP                                                 IFRS

                                Old                                    New                                New
                            Sectors         Gas       Other        Sectors                            Sectors

Fire and Gas                 37,258
Elevator & Door
Safety                       30,728
                            _______
                                                                                   Infrastructure
                                        (11,924)      2,404         58,466         Sensors             58,466
                             67,986

Water                        14,785
Optics & Specialist          30,915
                            _______
                                                                                   Health and
                             45,700       2,519      (4,034)        44,185         Analysis            44,185

Process Safety               17,501
Resistors                    13,384
                            _______
                             30,885       9,370       1,632         41,887         Industrial Safety   41,887
Inter-segmental                                                                    Inter-segmental
sales                          (442)         35          (2)          (409)        sales                 (409)
                            _______     _______     _______        _______                            _______
Revenue                     144,129           -           -        144,129         Revenue            144,129
                            _______     _______     _______        _______                            _______

£000
Profit before                                  UK GAAP                                               IFRS
taxation

                                Old                                    New                             IFRS
                            Sectors         Gas       Other        Sectors                      Adjustments    Profit

Fire and Gas                  8,077
Elevator & Door
Safety                        5,729
                            _______
                                                                                   Infrastructure
                             13,806      (2,236)        206         11,776         Sensors             (52)   11,724

Water                         1,328
Optics & Specialist*          5,642
                            _______
                                                                                   Health and
                              6,970         894        (795)         7,069         Analysis            (61)    7,008

Process Safety                2,864
Resistors                       863
                            _______
                              3,727       1,342         274          5,343         Industrial Safety   209     5,552

Central companies                 -           -         315            315         Central companies   304       619
                            _______     _______     _______        _______                          _______   _______
                             24,503           -           -         24,503                             400    24,903
                            _______     _______     _______        _______                          _______   _______

Interest                        115           -           -            115         Interest           (548)     (433)

Goodwill                                                                           Goodwill
amortisation                 (2,667)          -           -         (2,667)        amortisation      2,667         -

Acquired                                                                           Acquired
intangibles                                                                        intangibles
amortisation                      -           -           -              -         amortisation       (175)     (175)
                            _______    _______-     _______        _______                          _______   _______
Profit before                                                                      Profit before
taxation                     21,951           -           -         21,951         taxation          2,344    24,295

                            _______     _______     _______        _______                          _______   _______

* including holding companies




Notes:

1  The above figures are unaudited but the full financial year UK GAAP results are based on the Group's statutory
   accounts for the relevant period, which received an unqualified audit report.

2  IFRS adjustments complement the summary reconciliations given in the document 'Adoption of International Financial
   Reporting Standards', released by Halma on 2 September 2005, which includes the significant Group IFRS accounting
   policies and further explanation of the adjustments.






                                          APPENDIX B



                 Growth drivers and market characteristics by sector

Infrastructure Sensors:



Market  growth drivers                                     Operating characteristics



• Construction (new build and refurbishment)       • Large markets with big, global players

• Safety regulations and legislation               • Higher volume/lower cost products

• Risk of accidents and financial cost             • Significant sales channel management

• Growing population                               • Critical component supply (not installing or

• Increasing urbanisation                            commissioning systems)

                                                   • Competitors can be OEM customers too

                                                   • Product performance is safety critical



Industrial Safety:



Market  growth drivers                              Operating characteristics



• Safety regulations and legislation               • Sell direct, or via local/regional distributors

• Risk of accidents and financial cost             • Generally fragmented competition

• Refurbishment and new build of industrial        • Larger proportion of sales to heavy industries
  
  facilities

• Level of industrial growth                       • Strong presence in oil/petrochemical market

                                                   • Innovative applications for existing technology as

                                                     important as new product development

                                                   • Product performance is safety critical



Health and Analysis:



Market  growth drivers                              Operating characteristics



• Demographics (population growth, ageing          • Technology-driven businesses

  population,etc)                                  • Wide range of potential applications and end markets

• Increasing personal and public health standards  • Supply critical components into larger customer

  and expectations                                   installation or system

• Regulation and legislation                       • Larger OEM opportunities

• New technology                                   • Product performance is safety critical





                      This information is provided by RNS
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