Halma is highly profitable and generates huge sums of cash. It is concerned with the manufacture and selling of products used in improving the value of existence and shielding lives for both business and individuals. Halma has three business sectors:
Health and analysis: protects the environment, improving people’s health both public and personal
Industrial safety: protection of people and business assets
Halma has managed to remain profitable and have a competitive advantage by operating in non-cyclical global markets. The markets they work in bar entry of competitors, and offer probability for sustainable, high returns and a strong long-term growth. The products made by Halma frequently satisfy demand created by safety, health, and environmental legislation. Their primary growth drivers have been the increased demand for healthcare products, urbanization and population growth, a rise in energy and water resource demand, and finally high expectations in health and safety. They only invest in companies whose markets are relatively non-cyclical with high barriers for entry (Halma, n.d).
Halma enterprise is valued at 148.95 billion and claims about 27% of equities listed under Securities and Protection Services industry. It is rated second in its current valuation category, in the related companies. Halmas total market size in the Security and Protections Services is estimated at about 554.84 billion. Halma owns 0.15% shares of KRATOS valued at 805.5 million, 0.23% of BRINKS share valued at 1.25billion, 0.50% of the GEO Group shares valued at 2.76 billion, 72.10% of the G4S Group’s shares valued at 400 billion and 26.85% of HLMA valued at 148.95 billion (Halma current valuation, 2012).
Halma PLC is a share corporation. In 2010, the directors proposed a final dividend of 5.19p per share for ordinary shareholders, this was together with an interim dividend of 3.31p per share already paid out. This totaling to 8.50p per share for the financial year of 2010, a rise from the preceding year when they gave 7.93p per share. The company has one class of ordinary shares that carry no right to a fixed income, but carries one right to vote. The size of the holding is not restricted, and neither is the transfer of shares. No shareholder or individual has rights to be in command of over the share assets of the corporation and the corporation pays all issued shares. The directors have the power to reject to record a transfer of certified share if it is not fully paid for, but the refusal should not prevent dealing in shares, in the company, from taking place in an open and suitable basis. The directors could also repudiate registration of the transfer certificate if the instrument of transfer is not duly stamped by the registered office. This may also happen if the person being registered for is a minor or of unsound mind. One of the restrictions on transfer of ordinary shares is those that may be imposed by laws and regulation. The other restriction is where a person with 0.25%interest in company’s certificate share has been served with a disclosure notice and has been unable to provide the company with information concerning his interest in the share. Finally, the directors may impose a restriction if they are not aware any agreements between holders of the company’s shares. All share held in treasury do not hold any voting rights, and they are not eligible for dividends (Chesney, 2010).
Halma PLC calculate it basic earnings per share using a weighted average of share in issue during a financial period. In 2010 they had issued 376,493,113 shares, in 2011, the shares issued were 376,608,974, and for the first half of 2011/2012 financial year, the issued shares are 376,659,210. Diluted earnings per ordinary shares are calculated using shares issued and include the dilutive possible, ordinary shares. The dilutive prospective ordinary shares are gotten from exercisable share option. The exercise price should be less than the average price of the company’s ordinary share in that financial period. Adjusted earnings are earning from the ongoing operations, not including the amortization of acquired intangible resources and attainment overheads after tax (company announcements: half yearly report, 2011).
The table below shows the trend in share performance for the past five years. The share is currently priced at 396.00 and a bid price of 395.40. The share is listed in FTSE all-share, FTSE 250 and FTSE 350 under the electronic and electrical equipment sector (Halma share price, 2012).
In November of 2011, the results for the first half revenues were up 12% compared to the prior years. The return on total investment capital was 16.9% up from 15.5% in 2010/2011 financial year. Halma has shown a solid cash flow and completed several acquisitions in the past five years. Despite global economic uncertainties, the decentralized structure of management used by Halma PLC and the increased demand from the primary growth drivers has enabled it to be resilient in difficult markets (Halma share price, 2012).
References
Chesney, C., 2010. Other Statutory Information: Halma Corporation.
Company Announcements: Half-Yearly Report, 2011. Halifax. Retrieved from:
http://www.halifaxmarketwatch.co.uk
Halma Current Valuation,2012. Macroaxis. Retrieved from: http://www.macroaxis.com
Halma Share Price, 2012. London South East. Retrieved from:
http://www.lse.co.uk/SharePrice.asp?shareprice=HLMA
Halma, 2012. Available at http://www.halma.com
