2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 halma:AdjustedMember 2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 halma:AdjustmentsMember 2138007FRGLUR9KGBT40 2022-04-01 2023-03-31 halma:AdjustedMember 2138007FRGLUR9KGBT40 2022-04-01 2023-03-31 halma:AdjustmentsMember 2138007FRGLUR9KGBT40 2022-04-01 2023-03-31 2138007FRGLUR9KGBT40 2024-03-31 2138007FRGLUR9KGBT40 2023-03-31 2138007FRGLUR9KGBT40 2023-03-31 ifrs-full:IssuedCapitalMember iso4217:GBP iso4217:GBP xbrli:shares 2138007FRGLUR9KGBT40 2023-03-31 ifrs-full:SharePremiumMember 2138007FRGLUR9KGBT40 2023-03-31 ifrs-full:TreasurySharesMember 2138007FRGLUR9KGBT40 2023-03-31 ifrs-full:CapitalRedemptionReserveMember 2138007FRGLUR9KGBT40 2023-03-31 ifrs-full:ReserveOfCashFlowHedgesMember 2138007FRGLUR9KGBT40 2023-03-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2138007FRGLUR9KGBT40 2023-03-31 ifrs-full:OtherReservesMember 2138007FRGLUR9KGBT40 2023-03-31 ifrs-full:RetainedEarningsMember 2138007FRGLUR9KGBT40 2023-03-31 ifrs-full:NoncontrollingInterestsMember 2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 ifrs-full:IssuedCapitalMember 2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 ifrs-full:SharePremiumMember 2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 ifrs-full:TreasurySharesMember 2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 ifrs-full:CapitalRedemptionReserveMember 2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 ifrs-full:ReserveOfCashFlowHedgesMember 2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 ifrs-full:OtherReservesMember 2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 ifrs-full:RetainedEarningsMember 2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 ifrs-full:NoncontrollingInterestsMember 2138007FRGLUR9KGBT40 2024-03-31 ifrs-full:IssuedCapitalMember 2138007FRGLUR9KGBT40 2024-03-31 ifrs-full:SharePremiumMember 2138007FRGLUR9KGBT40 2024-03-31 ifrs-full:TreasurySharesMember 2138007FRGLUR9KGBT40 2024-03-31 ifrs-full:CapitalRedemptionReserveMember 2138007FRGLUR9KGBT40 2024-03-31 ifrs-full:ReserveOfCashFlowHedgesMember 2138007FRGLUR9KGBT40 2024-03-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2138007FRGLUR9KGBT40 2024-03-31 ifrs-full:OtherReservesMember 2138007FRGLUR9KGBT40 2024-03-31 ifrs-full:RetainedEarningsMember 2138007FRGLUR9KGBT40 2024-03-31 ifrs-full:NoncontrollingInterestsMember 2138007FRGLUR9KGBT40 2022-03-31 ifrs-full:IssuedCapitalMember 2138007FRGLUR9KGBT40 2022-03-31 ifrs-full:SharePremiumMember 2138007FRGLUR9KGBT40 2022-03-31 ifrs-full:TreasurySharesMember 2138007FRGLUR9KGBT40 2022-03-31 ifrs-full:CapitalRedemptionReserveMember 2138007FRGLUR9KGBT40 2022-03-31 ifrs-full:ReserveOfCashFlowHedgesMember 2138007FRGLUR9KGBT40 2022-03-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2138007FRGLUR9KGBT40 2022-03-31 ifrs-full:OtherReservesMember 2138007FRGLUR9KGBT40 2022-03-31 ifrs-full:RetainedEarningsMember 2138007FRGLUR9KGBT40 2022-03-31 ifrs-full:NoncontrollingInterestsMember 2138007FRGLUR9KGBT40 2022-03-31 2138007FRGLUR9KGBT40 2022-04-01 2023-03-31 ifrs-full:IssuedCapitalMember 2138007FRGLUR9KGBT40 2022-04-01 2023-03-31 ifrs-full:SharePremiumMember 2138007FRGLUR9KGBT40 2022-04-01 2023-03-31 ifrs-full:TreasurySharesMember 2138007FRGLUR9KGBT40 2022-04-01 2023-03-31 ifrs-full:CapitalRedemptionReserveMember 2138007FRGLUR9KGBT40 2022-04-01 2023-03-31 ifrs-full:ReserveOfCashFlowHedgesMember 2138007FRGLUR9KGBT40 2022-04-01 2023-03-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2138007FRGLUR9KGBT40 2022-04-01 2023-03-31 ifrs-full:OtherReservesMember 2138007FRGLUR9KGBT40 2022-04-01 2023-03-31 ifrs-full:RetainedEarningsMember 2138007FRGLUR9KGBT40 2022-04-01 2023-03-31 ifrs-full:NoncontrollingInterestsMember
Growing a safer,
cleaner, healthier
future for everyone,
every day.
Halma plc
•
Annual Report and Accounts 2024
Halma is a global group
of life-saving technology
companies. Our companies
provide innovative solutions
to many of the key problems
facing the world today.
Strategic Report
01 Highlights
02 Our purpose
04 Halma at a glance
06 How we are structured
08 Chair’s statement
11 Group Chief Executive’s review
18 Chief Financial Officer’s review
23 Talent & Culture review
26 Sustainable growth model
36 Our investment proposition
38 Key performance indicators
44 Financial review
50 Business review
68 Our stakeholders and Section 172
statement
77 Sustainability
90 TCFD statement
100 Non-financial & sustainability
informationstatement
104 Risk management and internal
control
108 Principal risks and uncertainties
118 Viability statement
Governance Report
120 Governance at a glance
122 Board of Directors
124 Executive Board
126 How we are governed
129 Board activities and priorities
132 Governance in action
134 Board oversight of our culture
136 Board engagement with employees
138 Board evaluation
140 Nomination Committee Report
144 Audit Committee Report
152 Remuneration Committee Report
156 Remuneration at a glance
158 Directors’ Remuneration Policy
166 Annual Remuneration Report
178 Directors’ Report
182 Statement of Directors’
responsibilities in respect of the
financial statements
Financial Statements
184 Independent Auditors’ Report
194 Consolidated Income Statement
195 Consolidated Statement
of Comprehensive Income
and Expenditure
196 Consolidated Balance Sheet
197 Consolidated Statement
of Changes in Equity
198 Consolidated Cash
Flow Statement
199 Accounting Policies
208 Notes to the Accounts
258 Company Balance Sheet
259 Company Statement
of Changes in Equity
260 Notes to the Company Accounts
274 Summary 2015 to 2024
Other Information
276 Shareholder Information
Front cover: Andre Barnes
Lens Technician, Volk, inspecting final quality of a
Binocular Indirect Ophthalmoscopy (BIO) lens.
Online
To find out more visit our website:
halma.com/investors
2024 2023 Change
Revenue ,.m ,.m .%
Adjusted
1
Earnings before
Interest and Taxation (EBIT)
.m .m .%
Adjusted
1
Profit before Taxation .m .m .%
Adjusted
2
Earnings per Share .p .p .%
Statutory Profit before Interest
and Taxation
.m .m .%
Statutory Profit before Taxation .m .m .%
Statutory basic Earnings
perShare
.p .p .%
Total dividend per share
3
.p .p .%
Adjusted EBIT margin .% .%
Return on Sales
4
.% .%
Return on Total Invested
Capital
5
.% .%
Net debt
6
.m .m
Notes
1 Adjusted to remove the amortisation and impairment of acquired intangible
assets, acquisition items, restructuring costs, profit or loss on disposal of
operations, and the effect of equalisation of benefits for men and women
in the defined benefit pension plans (2019 only), in 2024 totalling £56.1m
(2023:£69.8m). See note1 to the Accounts.
2 Adjusted to remove the amortisation and impairment of acquired intangible
assets, acquisition items, restructuring costs, profit or loss on disposal of
operations and the associated tax thereon. See note2 to the Accounts.
3 Total dividend paid and proposed per share.
4 Return on Sales is defined as Adjusted
1
Profit before Taxation from continuing
operations expressed as a percentage of revenue from continuing operations.
5 Return on Total Invested Capital (ROTIC) is defined as post-tax Adjusted
1
profitas a percentage of average Total Invested Capital.
6 Net debt is defined as Borrowings plus lease liabilities net of Cash and
bankbalances.
7 Adjusted
1
Earnings before Interest and Taxation (EBIT), Adjusted
1
Profit before
Taxation, Adjusted
2
Earnings per Share, organic growth rates, Adjusted
1
EBIT
margin, Return on Sales
4
, ROTIC
5
and net debt
6
are alternative performance
measures used by management. See notes 1, 2 and 3 to the Accounts.
Revenue
+10%
£2,034m
Adjusted
1
Profit before Taxation
+10%
£396.4m
2018
2019
201720162015 2022
2023
2021
2024
2020
726
808
962
1,076
1,211
1,338
1,318
1,525
1,853
2,034
2018
2019
201720162015 2022
2023
2021
2024
2020
153.6
166.0
194.0
213.7
245.7
267.0
278.3
316.2
361.3
396.4
Dividend per share paid and proposed
+7%
21.61p
Return on Sales
4
19.5%
2018
2019
201720162015 2022
2023
2021
2024
2020
11.96
12.81
13.71
14.68
15.71
16.50
17.65
18.88
20.20
21.61
2018
2019
201720162015 2022
2023
2021
2024
2020
21.2
20.6
20.2
19.9
20.3
19.9
21.1
20.7
19.5 19.5
Statutory Profit before Taxation
+17%
£340.3m
Return on Total Invested Capital
5
14.4%
2018
2019
201720162015 2022
2023
2021
2024
2020
133.6
136.3
157.7
171.9
206.7
224.1
252.9
304.4
291.5
340.3
2018
2019
201720162015 2022
2023
2021
2024
2020
16.3
15.6
15.3
15.2
16.1
15.3
14.4
14.6
14.8
14.4
For further detail see note 3 to the Accounts
Halma plc | Annual Report and Accounts 2024 1
Governance Report Financial Statements Other Information
Strategic Report
HIGHLIGHTS – strong growth and continued high returns
Our purpose is to
growa safer, cleaner,
healthier future for
everyone, every day.
It’s in our DNA...
We have a unique set of organisational and
culturalgenes which power our continued growth.
Wecallthis Halma’s DNA. Our DNA runs through
ourbusiness at all levels. It provides competitive
advantage and stability, and allows us to continuously
adapt to new market needs. Our DNA embodies the
core elements of our organisation and culture that
areinextricably linkedtoour past and which enable
ourfuturesuccess.
Read more about our DNA on page29
…delivering sustainable value
Our purpose keeps us focused on growing
businessesinglobal niches driven by long-term
growthdrivers. Thiscreates sustainable value for
allstakeholders bydelivering consistently strong
growthand a positiveimpact.
Read more about our business model on page34
…for all our stakeholders
• Our people.
• Our companies.
• Customers and suppliers.
• Acquisition prospects and business partners.
• Society and communities.
• Investors and debt holders.
Read more about our stakeholders on page68
…it drives everything we do
We continuously evaluate our portfolio and decide on
new product development and acquisition targets based
on their alignment to achieving our purpose. We allocate
capital and talent to maximise our growth, returns and
positive impact, inline with our purpose. We pursue
enhanced digital technologies and international expansion
strategies toensure wereach“everyone, every day”.
Read more about our growth strategy on page32
…and a positive impact
Our technologies solve some of the world’s most pressing
issues, from ensuring air quality and clean water to
preventing blindness. By growing, Halma companies
make the world a safer, cleaner and healthier place.
Find out more information on our website www.halma.com
… and is measured along the way.
We track our progress in fulfilling our purpose through
arange of financial and non-financial indicators
coveringkey aspects of performance thatmatter
toourstakeholders.
Read more about our key performance indicators on page38
2 Halma plc | Annual Report and Accounts 2024
OUR PURPOSE
Safety Environmental
& Analysis
Please see www.halma.com for more information about our companies’ impact and page77 for information on how we protect our environment
andsupport our people. The figures on this pageare approximate estimates, based on a number of assumptions about usage of our products.
See www.halma.com for more information.
Making buildings safer
Aggregate area of buildings protected by our fire
detection products.
>6,000km
Protecting lives
Number of people protected every day by our gas
sensor products.
>300,000
Making water safer
Number of water quality tests enabled annually,
including more than 5m for partners in international
relief and development.
>250,000,000
Keeping workers safe
Number of manufacturing and other facilities
whereour interlock products protect worker safety.
>42,000
Monitoring health
Number of diagnostics products supplied each
yearfor cancer, eye health, blood pressure and
vitalsigns monitoring.
>50,000,000
Improving health outcomes
Number of surgeries supported each year, including
eyesight-saving cataract surgeries.
>15,000,000
Sector business review on pages 50-55 Sector business review on pages 56-61
Healthcare
Sector business review on pages 62-67
Halma plc | Annual Report and Accounts 2024 3
Governance Report Financial Statements Other Information
Strategic Report
OUR PURPOSE IN ACTION
Revenue % of Group
USA
£895m
44%
£288m
£219m
£388m
Mainland Europe
£419m
£73m
21%
£106m
£240m
UK
£294m
£48m
£90m
14%
£156m
Asia Pacific
£275m
£76m
14%
£69m
£130m
Africa, Near and
Middle East
£79m
£17m
4%
£15m
£47m
Other countries
£72m
3%
£27m
£31m
£14m
Our companies are grouped into
threesectors. They have customers
inmore than 100 countries and make
the world safer, cleaner and healthier
for millions of people every day.
Percentages are % of Group revenue.
Sector revenue includes inter‑segmental sales.
1 See alternative performance measures in note 3 to the Accounts.
Safety
Our Safety Sector’s technologies
protect people, assets and
infrastructure, enable safe movement,
and enhance efficiency inpublic and
commercial spaces and in industrial
and logistics operations.
Revenue
£824m
Adjusted profit
1
£192m
Read more on page 50
Safety Environmental & Analysis Healthcare
4 Halma plc | Annual Report and Accounts 2024
HALMA AT A GLANCE SECTORS AT A GLANCE
Environmental
& Analysis
Healthcare
Our Environmental & Analysis Sector
provides technologies that monitor
andprotect the environment, analyse
materials, and ensure the quality and
availability of life‑critical resources.
Our Healthcare Sector provides
technologies and digital solutions
that improve care andenhance
quality of life for patients.
Revenue
£658m
Adjusted profit
1
£148m
Read more on page 56
Revenue
£553m
Adjusted profit
1
£126m
Read more on page 62
Other InformationFinancial StatementsGovernance Report
Halma plc | Annual Report and Accounts 2024 5
Strategic Report
We have a lean and highly decentralised structure
withonly three layers – companies, sectors and Group.
Our portfolio of life‑saving technology companies are
locally managed and operate close to their customers.
This gives them the agility to respond quickly to
customers’ needs and to changesin their markets.
Companies
Our companies are individual legal entities, managed by their own
boardof directors, with the freedom to set their own growth strategy
within a governance framework. This drives an entrepreneurial approach,
accountability for performance and good governance. Each company is
focused on growing organically and inorganically in global niche markets
underpinned by long‑term growth drivers.
Sectors
Divisional Chief Executives chair the boards of typically five to seven
companies. They are responsible for driving organic and inorganic growth
in their companies, and provide a pivotal link between the Group, sectors
and companies.
Sector boards are chaired by a Sector Chief Executive, who is also a
member of the Executive Board, and include Divisional Chief Executives
and sector leads for M&A, Finance and Talent. Sector boards are responsible
for setting the sector growth strategy, including targeting niche markets
for both organic and inorganic growth, and talent strategy.
Group
The Group has a lean and simple structure providing effective
governance, capitalallocationand Growth Enabler support
forthecompanies.
The Halma Board sets the Group’s strategic goals and has
ultimateresponsibility for theGroup’s direction and performance.
TheExecutive Board develops and drives strategy, monitors
performance against our key performance indicators and
ensuresalignment with our DNA and culture.
For more information about our
companies visit www.halma.com
For more information visit
www.halma.com
Sector business review on
pages 50-67
6 Halma plc | Annual Report and Accounts 2024
HOW WE ARE STRUCTURED
Safety Environmental
& Analysis
Healthcare
Our companies grouped by sector
Halma plc | Annual Report and Accounts 2024 7
Governance Report Financial Statements Other Information
Strategic Report
Our strong growth reflects the scale of
the positive impact that our products
and services deliver for customers
through our purpose‑led strategy.
Dame Louise Makin
Chair
Record results in varied market conditions
I am pleased to report that Halma has delivered another
set of record results – ahead of market expectations and
reaching a significant revenue milestone of over £2bn.
This is despite a period of increased geopolitical tensions,
a higher inflation and interest rate environment and
continued disruption in some of our markets. Our strong
growth reflects the scale of the positive impact that our
products and services deliver for our customers through
our purpose‑led strategy. These results are testimony to
our people’s leadership, agility and entrepreneurial spirit.
On behalf of the Board, I would like to thank all of our
colleagues around the world for their contribution and
continued support for Halma.
Sustainable growth with purpose
For more than five decades, Halma has grown,
organically and through acquisition, in market niches
which focus on making the world safer, cleaner and
healthier. Our growth is underpinned by: our discipline
inchoosing the right markets in which to operate; robust
capital allocation decisions, with a focus on high returns;
having the right talent and culture; and a business model
that allows us to be agile and make the right choices in
our markets. Halma’s purpose of growing a safer, cleaner,
healthier future for everyone, every day is central to
everything that we do and is a filter that the Board
applies to every decision that it takes. To ensure that the
Board is effective and equipped to make those decisions,
we set clear priorities, engage with our companies to
understand their challenges, ensure we understand the
external views of shareholders and other stakeholders
andfocus on strong governance and risk management.
Board changes
To enable us to continue to operate as an effective
Boardwith the necessary skills to support the Group,
weregularlyconsider the experience and diversity that we
have and need for the future. Following the key executive
appointments made last year – with Marc Ronchetti
being promoted to Group Chief Executive and Steve
Gunning joining as Chief Financial Officer – I am pleased
to report that the succession and onboarding has been
very smooth and they have both embedded well into
theirroles and brought fresh ideas to theboardroom.
During the year, we were fortunate to secure two new
non‑executive Directors: Liam Condon, who brings strong
industrial sector knowledge and valuable experience as
aserving FTSE CEO; and Giles Kerr, a seasoned Chair
andsenior director with experience in life sciences,
technology and industrial businesses. Tony Rice stepped
down as Senior Independent Director in July 2023 and
asa non‑executive Director in December 2023, and Roy
Twite stepped down as a non‑executive Director in June
2024. Tony and Roy have brought invaluable experience
tothe Group over their nine year tenure and supported
the Board in appointing a new Chair, Chief Executive and
two Chief Financial Officers over that period. On behalf
ofthe Board, I would like to thank each of them sincerely
for their contribution. Jo Harlow was appointed Senior
Independent Director in August 2023, alongside her
roleas Chair of the Remuneration Committee and
asanon‑executive Director.
Sustainable
growth with
purpose
8 Halma plc | Annual Report and Accounts 2024
CHAIR’S STATEMENT
My engagement with shareholders complements the
regular interactions that our institutional investors have
with Halma’s Executive Board and senior management
throughout the year – primarily through meetings with
our Group Chief Executive and Chief Financial Officer –
and following our Full Year and Half Year results.
In addition to our in‑person Annual General Meeting,
ourinvestor relations team arranged a webinar aimed
atretail shareholders and they run a regular programme
of engagement with a broad selection of private
clientbrokers.
Employee engagement is a key focus area for the
Boardand there have been numerous opportunities
throughout the year for interaction between Directors
and senior management and the wider workforce. Our
chosen mechanism for seeking input from, and having
open dialogue with, our employee base includes site
visitsby Directors. Many of our companies had a Director
visit over the year and we are looking to further our
interactions with colleagues and derive even more value
from Director site visits in the year ahead. Following a
visit, the Board receives a report which includes aspects
such as the operating company’s culture, the quality of
the management, the strategic direction of the company
and candid comments received during the employee
focus discussions.
Embedding sustainability
Sustainability is another key focus area for the Board
andwhile we will continue to monitor and report on our
progress in reducing our negative impact, we are excited
about the opportunities for the Group to play a part in
enabling the green economy.
Halma is enviably placed to benefit from the positive
impact that our products and services will have on people
and the planet, by solving key problems in the world, but
we also recognise that we have a responsibility to reduce
the negative impact of our own operations and value
chains. We have continued to embed our sustainability
strategy into the Group’s operations and have refreshed
our internal sustainability expectations. These encourage
our operating companies to identify the strategic
opportunities and risks that sustainability represents for
their business, set goals and action plans to reduce their
own emissions and to engage on sustainable product
design and Scope 3 decarbonisation.
The Board is pleased to confirm Halma’s ambition to
reach Scope 3 Net Zero by 2050, complementing our
existing Scope 1 & 2 targets, and management are
working to set interim Scope 3 targets and develop
widerdecarbonisation plans, on which further details
willbe reported in the years ahead.
Board effectiveness
The Board undertook its triennial externally facilitated
Board and Committee evaluation this year – with
Independent Board Evaluation supporting us with
theprocess, through individual interviews and meeting
observation. I am pleased to report that the Board and
its Committees are operating effectively and that the
boardroom dynamics include a valuable mix of mutual
respect, support for management, informed debate and
constructive challenge. The transparency of management
reporting and openness between the executive and
non‑executive Directors was identified as a key feature
ofour Board culture – which greatly facilitates effective
decision‑making – and these are elements that I will
continue to uphold, to ensure that diversity of thought
andshared accountability prevails.
Corporate governance
Governance is central to the Board’s operation. Each
Director has a clear understanding of the regulatory
framework within which the Company operates,
theirindividual roles and responsibilities as a Director,
governance best practice and future developments.
Governance training starts with a Director’s induction
and onboarding plan, and continues throughout their
tenure through regular updates from the Company
Secretary and annual refresher training, which this
yearwas facilitated by Ashurst.
While many of the UK governance reforms that were
proposed in 2023 did not come to fruition, the Board
keptabreast of the potential changes and considered
their likely impact on the Company. Feedback, on behalf
of the Company, was conveyed on draft legislation,
regulation and the proposed changes to the UK Corporate
Governance Code in respect of governance, audit and
capital reforms. The Audit Committee, on behalf of
theBoard, are currently mapping the material internal
controls that underpin the Group’s reporting, toensure
that any strengthening of controls or further assurance
desired can be implemented ahead of the revised
Codeprovision 29 coming into force from 2026.
Stakeholder engagement
Each year, I arrange meetings with our largest
shareholders as part of our shareholder engagement
programme. This year, I spoke with shareholder stewardship
teams and portfolio managers representing circa 25% of
the Company’s share capital, which included a mix of UK,
continental European and US shareholders. The topics
discussed included board succession, the evolution of
Halma’s Sustainable Growth Model, M&A, remuneration
and talent retention. These conversations were most
valuable for hearing the views of our shareholders and
itwas pleasing to note that investors are supportive
ofthe Company and raised no significant concerns.
Halma plc | Annual Report and Accounts 2024 9
Governance Report Financial Statements Other Information
Strategic Report
Board priorities
Each year, the Board sets strategic priorities. For 2023/24
six priorities were chosen and progress has been made
ineach of these areas. For 2024/25, six priorities have
again been agreed to: optimise our portfolio; maintain
the agility of our business model; optimise returns;
refreshsuccession plans; embed sustainability
andreviewopportunities for international growth.
Furtherdetails areset out in the Governance Report.
Looking ahead with confidence
In common with our peers, 2023/24 presented a challenging
business environment for our global operating companies
but despite the various headwinds that we faced, our
decentralised operating structure enabled our companies
to respond to opportunities and challenges with agility
and deliver a strong performance for theGroup.
Our success is underpinned by: our purpose‑led strategy
in high growth niche markets; quality talent who embrace
our DNA; investment in R&D to innovate and meet our
customers’ needs; and our disciplined approach to M&A.
These factors remain as the foundations for Halma’s
Sustainable Growth Model and preserving these elements,
while evolving our approach to seek new growth
opportunities, gives me confidence that we can
continueto deliver sustained growth into the future.
Dame Louise Makin
Chair
How governance has supported
our growth
Further information on the areas highlighted
inmyStatement can be found in the Strategic
Reportand specific sections referenced below.
Sustainable Growth Model
Learn more on pages 26-35
Board activities and priorities
Learn more on pages 129-131
Our stakeholders
Learn more on pages 68-76
Governance Report
Learn more on pages 119-139
Board evaluation
Learn more on pages 138-139
Sustainability
Learn more on pages 77-89
10 Halma plc | Annual Report and Accounts 2024
CHAIR’S STATEMENT continued
I continue to be inspired by the quality
of our talent and our innovation, and
Iam proud of the positive difference
that our companies make to millions
of lives every day.
Marc Ronchetti
Group Chief Executive
Record revenue
and profit
Further good progress in the year
I am pleased to report that Halma made further good
progress in the year, delivering revenue of over £2bn
forthe first time and our 21
st
consecutive year of record
Adjusted
1
profit. At the same time we continued to
makesubstantial investments, both organically and in
acquisitions, to support our growth over the mediumterm.
This success in varied market conditions was underpinned
by the benefit we derive from the diversity of our company
portfolio, the agility that comes from our organisational
model and, most importantly, the talent within our
companies. I would like to thank everyone at Halma for
their contributions in the year and their commitment to
our purpose of growing a safer, cleaner, healthier future
for everyone, every day.
Delivering strong and sustainable growth
One of the great privileges of being Halma’s Group Chief
Executive is meeting our company leaders and their teams.
In my first full year in the role, I have visited the majority
of our companies, and have had the opportunity to see
first-hand the key elements which are critical to our
continued success.
The first of these is our purpose, which gives us the
energyand passion to tackle significant global safety,
environmental and healthcare challenges. Everything
wedo at Halma starts and ends with our purpose –
togrow a safer, cleaner, healthier future for everyone,
every day. It leads us to make careful choices on our
markets, selecting those niches where we are confident
we can create solutions to a wide range of fundamental,
long-term issues which have a significant impact on
people’s lives, and thereby deliver continued growth and
high returns. Our case studies on pages50, 56, 62, 81 and
82 highlight a number of examples.
The second is the diversity of our organisation. While we
are driven by a common purpose, our companies operate
in often very different niche markets, with a wide variety
of customers, suppliers, technologies, routes to market
and manufacturing processes. Given our inclusive culture,
we also have diverse teams in our companies, contributing
to the strength of our decision-making. These two elements
– the diversity of our portfolio and our teams–give us
resilience as a Group to fluctuations inindividual markets.
The third element is the benefits we derive from our
decentralised model, where our leaders are entrepreneurs
and empowered to grow in their specific market niches
asif each business were their own. This leads to a highly
agile, innovative and proactive culture, as our companies
look to understand the issues our customers are facing
and help to solve them with their application knowledge
and innovative technologies.
And finally, talent and culture are crucial. Our decentralised
model requires that we have the very best people in
ourcompanies, operating in an entrepreneurial, high-
performing, yet collaborative and supportive culture.
Thisis discussed in more depth later in this review and
inthe Talent and Culture review on pages 23 to 25 of
thisReport.
Halma plc | Annual Report and Accounts 2024 11
Governance Report Financial Statements Other Information
Strategic Report
GROUP CHIEF EXECUTIVE’S REVIEW
These elements underpin our delivery of strong and
sustainable growth. Over the past 10 years, we have
achieved double digit revenue and Adjusted
1
profit
growthon average, with a good balance between
organic and acquisition-led growth.
I continue to be inspired by the quality of our talent and
our innovation, and I am proud of the positive difference
that our companies make to millions of lives every day.
I am excited by the scale of the opportunities ahead as
the world faces intensifying challenges: climate change,
protecting life-critical resources, meeting the increasing
demands on healthcare, and keeping people safe in
commercial, industrial and public spaces.
We have the people, technologies, financial resources
andorganisational capability and agility to help our
customers address these challenges. I see significant
opportunities for growth in both existing and new
markets, and this gives me confidence that we can
continue our track record of delivering long-term
growthfor decades to come.
A strong financial performance in varied
market conditions
We delivered a strong financial performance, with good
revenue growth, continued high returns well above our
cost of capital, and strong cash generation.
Revenue and Adjusted
1
profit before taxation both grew
by 10%, to £2,034.1m and £396.4m respectively. Growth
inAdjusted
1
earnings per share was lower, at 8%, given a
higher tax rate. Statutory profit before taxation increased
by 17% to £340.3m reflecting the Group’s growth and
thenon-recurrence of the prior year’s acquired
intangibleimpairment.
Performance by sector and subsector reflected varied
conditions in our end markets, with strong growth in the
Safety and the Environmental & Analysis Sectors more
than offsetting a decline in the Healthcare Sector. By
geography, growth was led by our two largest regions,
the USA and Mainland Europe, which both grew strongly.
We delivered continued high returns. Our Adjusted
1
EBIT
margin increased to 20.8% from 20.4% in the prior year.
Return on Sales
1
was stable at 19.5%, despite the impact
of higher interest costs, and remained well within our KPI
target range of 18-22%. Return on Total Invested Capital
1
of 14.4% (2023: 14.8%) was ahead of our KPI target of 12%
and well above our estimated weighted average cost of
capital of 9.7% (2023: 8.9%).
Cash conversion for the year was strong at 103%,
compared to our KPI target of 90%, and reflected
goodworking capital management. This strong cash
generation allowed us to make substantial investments
tosupport our future growth, while maintaining a strong
balance sheet. Our gearing ratio (net debt to EBITDA) at
the year end remained almost unchanged at 1.35 times
(2023: 1.38 times), well within our operating range of up
to two times. Together, our cash generation and balance
sheet strength underpin our investments in organic
growth and provide capacity to fund acquisitions and
ourprogressive dividend policy.
The Board is recommending a 7% increase in the final
dividend to 13.20p per share (2023: 12.34p per share). If
approved at our Annual General Meeting, together with
the 8.41p per share interim dividend, this would result in a
total dividend for the year of 21.61p (2023: 20.20p), also up
7%, making this the 45th consecutive year of dividend per
share growth of 5% or more.
High levels of strategic investment for growth
Investing to support organic growth
Our companies continued to invest in innovation and new
product development to support organic growth. R&D
expenditure increased to a record £107m (2023: £103m)
and represented 5.3% of revenue (2023: 5.5%), remaining
well ahead of our 4% KPI. This high level of investment
reflects our companies’ continued confidence in the
substantial growth prospects they see in their markets.
They continue to evolve their products and services,
enabling their customers to provide safer environments,
protect life-critical resources and deliver better healthcare.
A further strong year for acquisitions
Acquisitions are a core element of our growth, increasing
our opportunities to grow in line with our purpose. They
amplify the positive difference we make to people’s
livesworldwide and enhance the growth and returns
wedeliver. See page 15 to read more about our
approachtoacquisitions.
Following a record year of acquisitions in 2023, we
furtherexpanded our opportunities for growth with
eightacquisitions in 2024. Of these, four were standalone
companies for the Group, and four were bolt-ons to
enhance our companies’ technologies and market reach.
These acquisitions were widely spread geographically
across North America, Mainland Europe, the UK and
Australia within our Asia Pacific region. We made one
acquisition in the Safety Sector, four in the Environmental
& Analysis Sector and three in the Healthcare Sector.
Revenue
>£2bn
Adjusted
1
profit before taxation
£396m
Number of years
of consecutive record profit
21 years
12 Halma plc | Annual Report and Accounts 2024
GROUP CHIEF EXECUTIVE’S REVIEW continued
We spent £292m (maximum total consideration) in
aggregate, acquiring the equivalent of 7% of our
prioryear profit (before interest) or 4% after interest.
We have invested £689m in acquisitions (on a maximum
total consideration basis) over the last two financial
years. This is a greater sum than the aggregate of the
previous five years, and the increased level of activity
reflects the benefits of the investments we have made in
our sector M&A and management teams in recent years.
This activity has continued since the period end, with
onefurther acquisition completed in the new financial
year for £44m (maximum total consideration) in the
Safety Sector. Our pipeline for future acquisitions
remainshealthy.
We actively manage our portfolio of companies to ensure
that it continues to deliver strong growth and returns and
is aligned with our purpose. Accordingly, we made one
small disposal in the first half of the year in the Safety
Sector for a consideration of £3m, recognising a £0.5m
profit on disposal. Since the period end, we completed a
further disposal for approximately £7m consideration in
the Environmental & Analysis Sector.
Further details of acquisitions and disposals are
containedin the relevant sector reviews and in the
notesto theAccounts.
Investing in talent and culture
Talent and culture are critical components of Halma’s
Sustainable Growth Model. Our decentralised approach
requires exceptional leaders who are inspired by our
purpose to create high-performing cultures, and who
areempowered and accountable to set the strategy
andgrow their company as if it were their own.
Nurturing and developing the next generation of leaders
from within our companies was a key focus this year.
Ihave personally been a beneficiary of the investment
thatHalma has made in its leaders, having become
Group Chief Executive at the start of the year, after a
seven-year career progression at Halma.
We seek to recruit and retain talented people that can
learn fast and make good decisions in a rapidly changing
world and who, through collaboration and connection,
can learn from each other and benefit from the different
perspectives and experiences of Halma’s diverse group of
companies. These are key characteristics that enhance
agility within our model and ensure that we maintain
theentrepreneurialism that is fundamental to our
long-term success.
I also reported last year that we appointed Funmi
Adegoke, previously Group General Counsel & Chief
Sustainability Officer and a member of the Executive
Board, to Sector Chief Executive, Safety from July 2023.
As a result of this move, Constance Baroudel, Sector
Chief Executive, Environmental & Analysis, took on
theadditional role of Chief Sustainability Officer.
I am very pleased with the impact that both of
theseleaders have made in their new roles and
theircontribution to our Group performance. This
demonstrates our commitment to developing our
peopleto ensure we have a strong and sustainable
leadership succession for the future.
We also apply this approach to our companies and I’m
pleased that our focus on nurturing future leaders has
resulted in 11 internal promotions to Halma operating
company boards, two of which are newly promoted
Managing Directors of our companies.
Our commitment to ensuring that Halma’s culture is
highly inclusive means that we can also recruit from the
broadest available pool of talent, develop and retain the
very best talent and have a wide diversity of voices and
experience within our leadership teams.
One measure of inclusion is gender diversity. At the
executive level, we continue to have a good balance
bygender, with women representing 45% and 50% of
Halma’s Board and Executive Board respectively. This is
also the case for our three sector boards, and 46% of
allour senior roles are held by women. For the past two
years, we have been working towards achieving the
stretching target of having a gender-balanced range of
40-60% on our company boards by March 2024 – a target
which is reflected in the bonus element of remuneration
for our senior leaders. We are pleased that our companies
have made progress in this area, with our company
boards now comprising 31% women. This is an
improvement of more than 10 percentage points over
thelast four years – however, we recognise thatthere
isstill more to strive for.
Our eighth global employee engagement survey
continues to show consistent belief in our culture and
DNA. I was pleased to see a continued strong response
rate of 83% and strong and stable engagement at all
levels at 76%.
Further detail on our talent philosophy and strategic
priorities is given on pages23 to 25 and people and
culture initiatives is given on pages84 to 87 of thisReport.
Halma plc | Annual Report and Accounts 2024 13
Governance Report Financial Statements Other Information
Strategic Report
Driving growth in sustainability
Sustainability has always been an integral part of
ourpurpose-driven growth strategy. We continue to
beexcited by acquisitions that have additional and
significant long-term sustainability opportunities,
suchasthe recent acquisition of Sewertronics, whose
technology protects the environment by preventing
wastewater pollution, and the acquisitions of IZI and
TeDan, which broaden the social benefits delivered by
ourHealthcare Sector (see our case study on page81 of
thisReport).
We see growth prospects for our companies in
sustainability-related opportunities and our approach
isto encourage them to broaden the benefits delivered
bytheir products and services. At the same time, we are
also focused on ensuring that we manage and improve
our operational impact so that we can continue to grow
sustainably over the long term. Our companies think of
this as prioritising opportunities to “do more good”
whilealso growing their revenues and profit, and
“doingless harm”.
We were pleased to see continued reductions in
ourScope1 & 2 emissions, and progress towards our
renewable electricity targets. Further details are
giveninour TCFD report on page90 of this Report.
For the second year, our executive remuneration
incorporates annual energy productivity metrics
alongside the gender diversity targets mentioned above.
We consider these metrics aligned to remuneration as a
goodstarting point from which they will no doubt evolve
and it is pleasing to see them driving a focus on gender
balance and energy conservation within our companies.
Our direct operational emissions are a small part of
ourbroader emissions footprint. The majority of our
environmental footprint arises within our wider value
chain. We have formally committed to reach Net
ZeroforScope 3 emissions by 2050 and our focus is
tosupportour companies to build bottom-up Scope3
decarbonisation plans over the next couple of years.
For many of our companies, concentrating on supply
chain engagement and sustainable product design is
thebest way to reduce their indirect emissions and this
continues to be an area of focus for them. Examples of
the work our companies are doing to reduce their Scope3
emissions and engage with sustainable design are given
on page 89 of this Report.
Summary and outlook
This was another successful year for Halma. We delivered
record revenue and profit, with continued high returns.
Strong cash generation enabled us to make substantial
investments in opportunities for future growth, while
maintaining a strong balance sheet. This success in
variedmarket conditions reflected the commitment
ofour people to delivering our purpose, the benefits
wederive from ourSustainable Growth Model, and
thelong-term drivers that underpin growth in our
diverseportfolio.
We have made a positive start to the new financial
year.Our order intake in the year to date is ahead of
bothrevenue and the comparable period last year. We
expect to deliver good organic constant currency
1
revenue
growth in the year ahead, and an Adjusted
1
EBIT margin
of around 21%, in the middle of our target range. We
remain well positioned to make further progress this
yearand in the longer term.
Marc Ronchetti
Group Chief Executive
1 See alternative performance measures in note 3 to the Accounts.
14 Halma plc | Annual Report and Accounts 2024
GROUP CHIEF EXECUTIVE’S REVIEW continued
Why does Halma make acquisitions?
We make acquisitions to grow in line with our purpose,
either buying standalone companies or bolt-ons to
existing companies. This means that each company
webuy contributes to growing a safer, cleaner, healthier
future for everyone, every day, amplifying the positive
difference we make topeople’s lives worldwide, and
enhancing the growth and returns we deliver.
Our financial model means that we seek to make
acquisitions that, in total, contribute 5% or more
toourprofit in each financial year, and we have
setthisasour KPI.
See our key performance indicators on pages 38-43
Q&A
Acquisitions are a vital part of
Halma’s growth strategy. We speak to
Marc Ronchetti, Group Chief Executive,
about Halma’s approach to M&A.
Marc presenting at the annual
Accelerate event for company leaders
Halma plc | Annual Report and Accounts 2024 15
Governance Report Financial Statements Other Information
Strategic Report
What sort of companies do you buy?
We take a careful and disciplined approach when looking
for companies to buy. We’re buying companies for the
long term, so the first and most important question
weask is: will this company help us fulfil our purpose?
Iftheanswer is no, we don’t move forward.
Next, we look for companies that are in markets that
aresimilar to our existing markets, leveraging our deep
market knowledge, and have a good track record of
delivering healthy growth and returns. This reduces our
risk and also means that the financial characteristics
ofthe companies we buy are similar to the companies
wealready own. Their growth is underpinned by strong,
fundamental, long-term growth drivers with leading
positions in their niche markets and customers that
placea high value on the solutions they deliver.
Then we look for companies that can deliver long-term
sustainable returns, consistent with our financial model.
We spend time understanding how they can use our
Growth Enabler teams to scale their growth opportunities,
for example, through expanding their geographical
reach,developing new products and digital solutions,
andmaking sure they recruit and retain the best people.
Finally, we look for companies whose culture is aligned
toHalma’s DNA, and which will fit well within our
organisational model.
How many companies do you buy each year?
We don’t target a specific number, but in recent
yearswehave typically bought between three and five
standalone companies a year. I’m also pleased to see
more of our existing companies buying other companies
and technologies to bolt on to their operations as part of
their growth strategies. This year, for example, four of our
companies have bought another company or technology
to help them grow, which, together with four standalone
acquisitions, makes eight acquisitions in total for the year.
Deep
market
knowledge
Track record
Financial &
organisational
model
Scale of the
opportunity
Long-term
acquirer
Experienced teams
Relationship
led
Inorganic growth
Our purpose
Read more on page 2
Read our purpose in
action on page 3
Pipeline
of companies
>
600
Acquisitions
since 1971
>170
M&A
professionals
>
20
16 Halma plc | Annual Report and Accounts 2024
HALMA’S APPROACH TO ACQUISITIONS
How do you find the companies you want to buy?
We are constantly monitoring potential acquisitions.
Wecurrently have more than 600 potential targets
inourpipeline. Many of these are not for sale, so we
developrelationships with them over a long time,
helpingthem tounderstand the benefits that come
frombeing part ofHalma. Given that we are typically
buying companies that are in, or adjacent to, our
existingmarkets, most ofthese have been identified
byour existing companies, particularly in the case of
bolt-onacquisitions, the Divisional Chief Executives
(DCE)who chair them, orbyour sector M&A teams.
How does Halma buy companies?
We tend to buy companies in private, non-competitive
transactions. Our experienced teams buildstrong long-
term relationships with the owners andmanagement
teams, and a deep understanding oftheir markets and
their culture, and make sure they are clear about the
benefits of joining Halma.
Why do companies want to be part of Halma?
We have a track record of successfully investing in
andgrowing companies. We offer a long-term home for
companies which are looking to benefit from continued
autonomy, but which also want support to achieve
theirgrowth ambitions through our Growth Enablers
(seepage34) and from being part of a global group.
Once they join Halma, how much autonomy do
they have?
Our model depends on keeping the operational agility
ofthe companies we buy, and the entrepreneurial spirit
oftheir management teams. While each company is
heldaccountable for its performance, we expect them
todevelop their own growth strategies based on their
expertise and deep market knowledge.
As you continue to grow, do you need to do
moredeals or larger deals to meet your inorganic
growth ambition? Is there a limit to the number
ofcompanies you can have in the Group?
Given our healthy M&A pipeline, we don’t see any
shortage of potential opportunities to grow through
acquisition. As Halma grows, we can buy more
companies and potentially slightly larger companies in
each year, although we believe that we can continue to
meet our acquisition KPI through our existing approach
ofbuying Small and Medium Enterprises. We currently
have nearly 50 companies in the Group, each of which is
chaired by a DCE who typically chairs between five and
seven companies. Our model is scalable, and we could
add DCEs or even create another sector, if required, as
wegrow further.
Where do you see the best opportunities for
the future?
I am excited by the opportunities that we see across all
our sectors, both in our existing markets, which still have
huge growth potential, and in new adjacent markets.
Ourfocus on buying into markets that are underpinned
by long-term growth drivers, for example from increasing
regulation, demographic trends or climate change, gives
us exciting scope to grow for decades to come.
Find out why Matt Sappern, PeriGen’s President,
sold his business to Halma
Halma plc | Annual Report and Accounts 2024 17
Governance Report Financial Statements Other Information
Strategic Report
Strong financial performance
I am pleased to report that the Group delivered a strong
financial performance in 2024 despite varied market
conditions, enabling us to make substantial strategic
investments to enhance our future growth opportunities.
Our performance reflected the benefits of the diversity
ofour portfolio, and of our Sustainable Growth Model,
which gives our companies the agility to respond quickly
to opportunities and challenges. This enabled us to deliver
record revenue, which exceeded £2bn for the first time,
record Adjusted
1
profit for the 21st consecutive year,
andcontinued high returns.
At the same time, we continued to make substantial
investments, both in our products and services through
research and development, and in further expanding our
market reach through eight acquisitions during the year.
These investments were supported by the strength of our
balance sheet, and by strong cash generation. We expect
the strength of our financial position and our high levels
of cash conversion to underpin growth over the longer
term as our companies invest to address the significant
opportunities in their markets.
Chief Financial Officer’s review
Our Financial review is divided into two parts.
ThisChief Financial Officer’s review focuses on the
key financial metrics for the Group: revenue, profit,
cashgeneration, organic and inorganic investment,
and returns.
More detail on our financial performance and
position, including on our performance by region,
isgiven in the Financial review, on pages44 to 49
ofthis Report.
Details of the performance of our individual sectors
is given in each of the sector reviews, on pages50
to67 of this Report.
Our performance reflected the
benefits of the diversity of our portfolio
and of our Sustainable GrowthModel
which gives our companies agility.
Steve Gunning
Chief Financial Officer
Strong financial
performance
18 Halma plc | Annual Report and Accounts 2024
CHIEF FINANCIAL OFFICER’S REVIEW
Revenue growth
+9.8%
Revenue bridge (£m)
+9.8%
£2,034.1m
2024CurrencyDisposalsAcquisitionsOCCY
*
2023
2,034
(2.8)%(0.3)%
5.0%
7.9%
1,853
Adjusted
1
EBIT
growth
+12.1%
Adjusted
1
EBIT
bridge (£m)
+12.1%
£424.0m
2024CurrencyDisposalsAcquisitionsOCCY
*
2023
424
(2.9)%
0.2%
7.6%
7.2%
378
Record revenue and profit
We delivered strong revenue growth of 9.8%, with
revenuefor the year to 31 March 2024 of £2,034.1m
(2023:£1,852.8m). This comprised good momentum
onanorganic constant currency
2
basis, with revenue
growthof 7.9%, and a continued healthy contribution
from acquisitions of 5.0% (4.7% net of disposals).
Theappreciation of Sterling had a negative currency
translation effect of 2.8%.
Investment in our products and services to ensure they
continue to address our customers’ needs enabled us
todeliver a price performance of approximately 3%,
modestly above the upper end of our typical historical
range of 1-2%, offsetting cost inflation.
Adjusted
1
EBIT grew 12.1% and exceeded £400m for
thefirst time (2023:£378.2m). Adjusted
1
EBIT growth
comprised a 7.2% increase in organic constant currency
2
EBIT, a 7.6% contribution from acquisitions (7.8% net of
disposals), and a negative effect from currency of 2.9%
due to the appreciation of Sterling. This led to a 40 basis
points improvement in the Adjusted
1
EBIT margin to
20.8% (2023: 20.4%). Adjusted
1
profit before taxation grew
by 9.7% to £396.4m (2023:£361.3m). Return on Sales
2
of
19.5% was unchanged compared to the prior year, with
the effect of increased net finance costs offsetting the
benefit of the higher Adjusted
1
EBIT margin.
Statutory EBIT of £367.9m was 19.3% higher and Statutory
profit before taxation of £340.3m (2023:£291.5m) was
16.7% higher, reflecting the Group’s growth and the
non-recurrence of the prior year’s acquired intangible
asset impairment. Statutory profit before taxation is
calculated after charging the amortisation and
impairment of acquired intangible assets of £49.5m
(2023:£56.5m), a £0.5m gainon disposal (2023:£nil),
andother acquisition items of a net £7.1m (2023:£13.3m).
Further detail on these items is givenin note 1 to
theAccounts.
Strong growth in our largest regions; varied
performance across sectors
We saw good overall demand for our companies’
products and services, which, in addition to the
contribution from acquisitions, was reflected in the
double-digit increase in Group constant currency
revenue,up by 12.6%.
Our two largest regions, the USA and Mainland
Europe,grew strongly. Growth in the UK was solid, while
AsiaPacific declined, mainly due to weakness in China.
Revenue growth in the other smaller regions was strong
inaggregate.
Performance by sector and subsector was varied given
mixed market conditions. The Environmental & Analysis
Sector delivered very strong revenue growth, driven
byexceptional growth in the photonics business, and
alsowell supported by Water Treatment and Analysis.
However, weaker trends in spectroscopy, principally in
thefirst half of the year, resulted in a lower margin
whichrestrained Adjusted
1
profit growth. Revenue
growthin theSafety Sector was broadly spread across
markets and regions, supported by a healthy order book,
and strong growth in Adjusted
1
profit reflected the benefit
of prior year price increases, greater stability in materials
and labour costs, and portfolio improvements, which
resulted in an increased margin against last year’s weaker
performance. Healthcare Sector revenue and Adjusted
1
profit declined modestly given the impact of OEM
destocking and budgetary constraints in the Healthcare
Assessment & Analytics and Life Sciences subsectors,
partly offset by strong growth in Therapeutic Solutions.
Further information on regional and sector performance
is given in the individual sector reviews on pages50 to 67
of this Report, and commentary on performance by
region is given in the Financial review, later in this Report.
* Organic constant currency
1
* Organic constant currency
1
Halma plc | Annual Report and Accounts 2024 19
Governance Report Financial Statements Other Information
Strategic Report
1 In addition to those figures reported under IFRS, Halma uses alternative performance measures as key performance indicators, as management believe these
measures enable them to better assess the underlying trading performance of the business by removing non-trading items that are not closely related to the
Group’strading or operating cash flows. Adjusted¹ profit excludes the amortisation and impairment of acquired intangible assets; acquisition items; restructuring
costsand profit or loss on disposal of operations. All of these are included in the statutory figures. Notes 1 and 3 to the Accounts give further details with the
calculation and reconciliation of adjusted figures.
2 See alternative performance measures in note 3 to the Accounts.
3 Sector profit before allocation of adjustments. See note 1 to the Accounts.
4 Based on Return on Sales as reported under the relevant accounting principles at the time.
Revenue and profit change
2024
£m
2023
£m
Change
£m
Total
growth %
% organic
growth
% organic
growth
2
at
constant
currency
Revenue ,. ,. . . . .
Adjusted
1
earnings before interest and taxation (EBIT) . . . . . .
Adjusted
1
profit before taxation . . . . . .
Statutory profit before taxation . . . .
Sector revenue change
2024 2023
£m
%
of total £m
%
of total
Change
£m
%
growth
% organic
growth
2
at
constant
currency
Safety .  .  . . .
Environmental & Analysis .  .  . . .
Healthcare .  .  (.) (.) (.)
Inter-segment sales (.) (.) .
Revenue ,.  ,.  . . .
Sector profit
3
change
2024 2023
£m
%
of total £m
%
of total
Change
£m
%
growth
% organic
growth
2
at
constant
currency
Safety .  .  . . .
Environmental & Analysis .  .  . . .
Healthcare .  .  (.) (.) (.)
Sector profit
3
.  .  .
Central administration costs (.) (.) (.)
Adjusted
1
earnings before interest and
taxation (EBIT) . . . . .
Net finance expense (.) (.) (.)
Adjusted
1
profit before taxation . . . . .
Adjusted
1
EBIT margin .% .%
Return on Sales
2
.% .%
20 Halma plc | Annual Report and Accounts 2024
CHIEF FINANCIAL OFFICER’S REVIEW continued
Continued high returns
Halma’s Return on Sales
2
has exceeded 16% for 39
consecutive years
4
. This year’s Return on Sales
2
was flat
at19.5% (2023:19.5%), well within our KPI target range of
18-22%. By contrast, our Adjusted
1
EBIT margin expanded
from 20.4% to 20.8%, reflecting a good operating result,
including a benefit from acquisitions and a recovery in the
Safety Sector margin, as expected. Our Return on Sales
2
performance in 2024 reflected the impact of increased
finance costs given higher average levels of indebtedness
and rises in interest rates.
It is a strength of our business model that we are able to
simultaneously deliver a strong operating performance,
maintain a strong balance sheet, and make substantial
strategic investments for organic growth. We continued
to invest in our businesses, with both strong organic
andinorganic investment in the year to support our
future growth.
We maintained a high level of Return on Total Invested
Capital (ROTIC)
2
, the post-tax return on the Group’s total
assets including all historical goodwill. This year, ROTIC
2
was 14.4%, compared to14.8% in the prior year. The
change principally reflected adverse effects from currency,
interest and tax movements, which more than offset
thebenefit from our positive performance. Our ROTIC
2
remains within our target range of 12-17%. It is also
substantially above Halma’s Weighted Average Cost
ofCapital (WACC), which is estimated to be 9.7%
(2023:8.9%), which increased mainly as a result of
higherinterest rates.
Substantial investment to support future growth
All sectors continue to innovate and invest in new
products, reflecting our companies’ confidence in the
future growth prospects of their respective markets.
R&Dexpenditure as apercentage of revenue remained
well above our KPI target of 4% at 5.3% (2023:5.5%),
increasing at a slower rate than revenue to £107.2m
(2023:£102.8m), principally as result of the change in the
mix of revenues in the Environmental & Analysis Sector.
We are also continuing to invest group-wide in automation
and technology upgrades, including enhanced cybersecurity,
improved data and analytics capabilities and upgrades
tooperating technology bothat the company level
andcentrally.
Following last year’s record investment in acquisitions,
wecontinued to make a substantial investment in
acquisitions, of £292m (maximum total consideration).
These eight acquisitions were across all threesectors and
well distributed by geography. The acquisitions completed
in the current and prior year contributed to revenue this
year in line with expectations overall, and we expect a
good performance from them in the future. We also
made one small disposal in the Safety Sector. Details
ofthe acquisitions made are given in the sector reviews
on pages50 to 67 ofthe Report and details of the
acquisitions and investments made in the year are
givenin note 25 to the Accounts.
ROTIC
2
14.4%
Adjusted
1
EBIT margin
20.8%
Halma plc | Annual Report and Accounts 2024 21
Governance Report Financial Statements Other Information
Strategic Report
Solid cash generation and strong financial position
Cash generation is an important component of the
Halma model, underpinning further investment in
organicgrowth, supporting value-enhancing acquisitions
and funding a progressive dividend to shareholders.
Cash conversion was strong at 103% (2023:78%) and
ahead of our KPI target of 90%. This increased through
the year, with cash conversion of 96% in the first half of
the year and 108% in the second half, and reflected good
underlying working capital control and also the ongoing
reduction of the strategic investment in inventory made
in the prior two financial years.
Our financial position remains strong, with gearing
(netdebt to EBITDA) improving slightly from 1.38 times
atthe prior year end to 1.35 times at the year end, a
pleasing result given the significant acquisition spend
during the year. Net debt (on an IFRS 16 basis which
includes lease commitments) increased by £56.5m
to£653.2m (2023:£596.7m).
We have substantial available liquidity. During the year,
we exercised one of two one-year extension options on
our £550m syndicated revolving credit facility. After the
year end, in May 2024, we exercised the second one-year
option, extending the maturity on our facility to May
2029. In addition, in April 2024, we completed a new
Private Placement issuance of £336m with an eight-year
average life. This fixed rate Private Placement issuance
positions us well in a period of relatively higher interest
rates. Further detail on cash generation and our financial
position is given in our Financial review on pages44 to 49.
Cash conversion and net debt
2024 2023
Cash conversion
2
% %
Closing net debt
2
(.)m (.)m
Net debt
2
to EBITDA
2
.x .x
Key Performance Indicators (KPIs)
This year, we have reviewed our financial KPIs, and have
made a number of changes to ensure that we are using
the most appropriate metrics to drive performance,
andto enable our stakeholders to more easily compare
our performance against our peers.
We have added an Adjusted
1
EBIT margin KPI and have
moved our organic and acquisition profit growth KPIs
toapre-interest basis consistent with this new KPI.
Forcontinuity, we have also reported our acquisition
growthKPI on a post-interest basis.
We have discontinued the use of our International
GrowthKPI, as, while growth in markets outside the
UK,USA and Mainland Europe remains an important
component of our overall growth, we no longer consider
itto be a strategic priority over growth in the UK, USA
and Mainland Europe.
Summary
Halma delivered a strong financial performance in 2024,
with good organic constant currency
2
revenue and profit
growth, an increased Adjusted
1
EBIT margin, strong cash
generation and continued high returns. The consequent
strength of our financial position is a key element in
enabling our companies to invest to address the many
opportunities in their markets, and to continue to invest
in value-enhancing acquisitions, which will support our
growth and returns over the medium term.
The finance team plays a crucial role in our companies’
success, providing insights and ensuring a strong
controlenvironment, helping companies to optimise
theircurrent performance and make informed decisions
on investments which will deliver growth and returns
overthe longer term. I would like to thank everyone in
thefinance team for their hard work and commitment
throughout the year.
Steve Gunning
Chief Financial Officer
22 Halma plc | Annual Report and Accounts 2024
CHIEF FINANCIAL OFFICER’S REVIEW continued
Why talent is at the heart of our success at Halma
At Halma, we bet on talent. It’s a fundamental part of
what makes Halma a successful business.
Halma’s Sustainable Growth Model is built on acquiring
and growing businesses in global niches that help us fulfil
our purpose, profitably. To be sure these companies will
thrive within Halma, we have a set of assessment criteria
that helps us to ensure they can sustain strong growth
and returns over the long term and be agile in identifying
and capitalising on changes in their customers, markets
and the wider world.
Our approach to talent is just as fundamental
andworks in a similar way
Firstly, we look for leaders with potential who can learn
fast in a rapidly moving world because they need to be
agile in the face of constant change. We believe that
intellect, learning agility and proven ability to succeed
innew and different circumstances are great predictors
of the potential to bet on. This approach enables us to
access a broader talent pool as we grow, embracing a
more diverse range of talents that might be overlooked
by traditional pipelines.
Secondly, we look for entrepreneurial leaders capable
ofrunning a fully integrated business, owning all key
decisions. We want leaders who are inspired by our
purpose, whoare accountable and who can grow each
ofour companies as if it were their own. Our model
enables them to respond quickly to their customers’
needs to capture new growth opportunities, set
strategyand ownit themselves.
Our ability to bet on talent is aided by the unique set of
organisational and cultural genes which are encapsulated
in Halma’s DNA, giving us confidence that leaders can
thrive in our unique organisational model and culture
(seeover the page for our talent philosophy).
Investing in talent
Given the essential role that talent plays in our model,
itisimperative that we nurture and develop our existing
talent, that we continue to protect our DNA and ensure
our businesses’ ongoing success. It has always been
ourapproach to provide challenging opportunities to
high‑potential individuals and promote talent from
withinHalma. We have several examples of this in our
senior and executive leadership teams, including Marc
Ronchetti, who assumed the Group Chief Executive role
after having served as Group Financial Controller and
subsequently Chief Financial Officer.
This year, we have divided the Talent & Culture
review into two parts. This review from our Group
Talent, Culture and Communications Director (Part1)
focuses on our talent philosophy and strategic
priorities. Further detail on our people and culture
initiatives and progress against key metrics is
givenin Part 2, on pages 84 to 87 of this Report.
Why we bet
on talent
Talent is fundamental to our
Sustainable Growth Model and
enablesus to take advantage
oftheopportunities ahead.
Jennifer Ward
Group Talent, Culture and
Communications Director
Halma plc | Annual Report and Accounts 2024 23
Governance Report Financial Statements Other Information
Strategic Report
TALENT & CULTURE REVIEW
Halma's Talent Philosophy
Why talent
matters at Halma
What we look for How we assess
Our decentralised model
requires exceptional leaders
who can grow each business
as if it were their own.
To allow us to make this bet
ontalent, we need to have
theconfidence that our leaders
have the following traits:
Core
characteristics
Experience
Ability to
learn from
experience
High Intellect and
Good Judgement
Learning Agility
and Potential
Culture Fit
1
2
3
Four of the Divisional Chief Executives (DCEs) who chaired
our companies during the year are former Managing
Directors. This includes David Lashbrook who retired at
the end of March2023 after a 28‑year career with Halma.
Two of ourSector Chief Executives (SCEs) were promoted
from a DCE role and in July 2023 we appointed Funmi
Adegoke, former Group General Counsel & Chief
Sustainability Officer, asthe Sector Chief Executive,
Safety, having played an instrumental role on the
Executive Board forthree years.
We continue to see the advantages of this approach
instrengthening our talent pool and throughout the
yearwe reinforced our development programme
forhigh‑potential individuals. This contributed to
11individuals being promoted to our companies’
boards,ofwhich two are now Managing Directors.
Collaborating, networking and learning from peers are
allkey to how we grow leaders at Halma. One way we
dothat is through the annual leadership conference,
Accelerate CEO, bringing together all Managing Directors
of Halma companies along with the Executive Board,
plcBoard, sector boards and senior leaders in our Group
Functions and Growth Enablers (see page 34). This year,
akey focus for the conference was talent and the role our
leaders play in nurturing the next generation of leaders. It
was clear from the discussion that an area of opportunity
is cultivating talent below the boards of our companies.
Iam optimistic about the positive trend that we are already
witnessing, and I am encouraged by the enthusiasm our
company leaders are showing to explore diverse strategies
to do it even better.
Enabling collaboration and connection
One of Halma’s advantages is the ability to go faster
bylearning from each other and by tapping into the
different perspectives and experiences of a diverse
groupof nearly 50 companies globally.
Over the past year, all Halma companies have migrated
into the same Microsoft environment, streamlining
communication and facilitating peer‑to‑peer collaboration.
This shift has not only simplified the exchange of
information but has also led toincreased engagement
across companies, with best practice being shared more
easily across the network. Further, in June 2024 all companies
will migrate to a unified people platform, Workday, which
will further enhance data accessibility, process automation
and the employee experience, supporting our companies’
growth and competitiveness on a global scale. Over time,
this technology platform will also improve the candidate
and employee experience. As we foster a culture of
inclusion, we also intend to broaden our spectrum of
identity choices, guided by the evolving needs of our
people, giving us a greater understanding of the
variousdimensions of diversity within our workforce.
24 Halma plc | Annual Report and Accounts 2024
TALENT & CULTURE REVIEW continued
Diversity, Equity and Inclusion
We prioritise creating diverse and inclusive businesses
thattreat all individuals fairly. This approach helps us
tobroaden our talent pool, attract and retain top talent,
and cultivate committed, diverse and resilient teams.
These attributes were pivotal in driving our strong
performance this year.
One measure of inclusion is gender diversity, and we
seekto achieve diversity on each leadership team
acrossthe Group. We are proud of our achievements
ongender balance on the Executive and plc Boards,
including twoofHalma’s key board roles – Chair and
Senior Independent Director – being held by women.
Wearedelighted that our efforts in this area have been
acknowledged by the Balance in Business Awards and
theFTSE Women LeadersReview, as highlighted on the
right. We are also proud that 46% of our senior leaders
are women and that two of the three SCEs who lead
ourportfolio of companies are also women.
Achieving gender balance at the top is the first step
andwe understand that the area where progress
needsto be made is in our portfolio leadership
teams.These teams run nearly 50 small to mid‑sized
manufacturing businesses, headquartered all over
theglobe. Our measure of progress is to achieve a
40‑60% gender balance for all company board roles.
We are making positive strides, and Iamparticularly
pleased with the improvements several of our companies
have made in promoting, recruiting and retaining female
talent, using various approaches. However, we have yet
to achieve our ambition, and this is an agenda we
continue to pursue. Read more about our gender
diversitytargets on page 84.
The talent imperative
Finding and growing the right talent is fundamental
toour business, as our decentralised model requires it.
Weneed leaders inspired by our purpose who can set
strategyand own it themselves.
Our approach to talent is a vital component of our
Sustainable Growth Model. It is our disciplined focus
onensuring we attract and cultivate entrepreneurial
leaders that puts us in a strong position to take
advantage of the opportunities ahead.
Jennifer Ward
Group Talent, Culture and Communications Director
Leading the way in
gender diversity
In March 2024, Halma was recognised as one of
thetop 10 best performers for Women on Boards
inthe FTSE 2023 Women Leaders Review. It is a UK
government‑backed, business‑led voluntary initiative
focused on increasing the representation of women
on boards and leadership teams in the FTSE 350 and
50 of the UK’s largest private companies. The Review
builds on the work of the Hampton‑Alexander and
Davies Reviews which preceded it.
This recognition underscores Halma’s progress
toimprove gender diversity. Specifically, we have
achieved 50% and 45% representation of women
onthe Executive and Halma plc Boards, respectively.
In May, Halma was also shortlisted for a second year
and commended by the Balance in Business Awards,
which focuses on gender balance at Exco and Direct
Reports level. This is an award, in partnership between
INSEAD and the Institute of Directors, using data
from the FTSE Women Leaders Review and judged
by an expert panel drawn from the business and
government community.
Both awards are a testament to our commitment
togender diversity, developing a strong pipeline of
diverse talent, and affording opportunities to
women throughout our businesses.
Awards
Halma plc | Annual Report and Accounts 2024 25
Governance Report Financial Statements Other Information
Strategic Report
We deliver sustainable growth, consistently
highreturns and positive impact.
Each of the elements of our Sustainable Growth
Model create a self‑reinforcing system that gives
us the resources and flexibility to address new
opportunities and challenges.
It is the combination and interdependency
ofallof them that enables us to deliver value
overthe long term for all our stakeholders.
Our Sustainable
Growth Model
Our purpose
Purpose drives our Sustainable Growth
Model. It powers every decisionwemake, from
choosing our markets to finding the right
talent. It attracts people who want to solve the
sameproblems aswedo, and keeps usfocused
on the thingsthat mattertoour business.
Read more on page28
Our business model
We have a simple and self‑sustaining
financial model which supportsinvestment in
our Sustainable Growth Model. It enables us to
deliver bothstrong performance in the short
termandhigh and sustainable growth
andreturns in the longer term.
Read more on page34
01
05
26 Halma plc | Annual Report and Accounts 2024
SUSTAINABLE GROWTH MODEL
Our growth strategy
Our growth is powered by our purpose
andis focused on acquiring andgrowing
businesses in global niches within thesafety,
environmental and healthcare markets.
Read more on page32
Our markets and their
long‑term growth drivers
We choose niches in markets
withresilient,long‑term growth drivers.
Wefind niches that are driven by growing
demand for healthcare, increasing pressure
onlife‑critical resources, increasing regulation,
and growing global efforts to address
climate change, waste andpollution.
Read more on page30
Our DNA
The combination of our organisational
model and culture is a fundamental
partofwhat makes Halma asuccessful,
sustainable business. We callthis
Halma’sDNA,and it runs
throughourbusinessat all levels.
Read more on page29
02
03
04
Other InformationFinancial StatementsGovernance Report
Strategic Report
Halma plc | Annual Report and Accounts 2024 27
We acquire companies that make the world safer, cleaner
and healthier and then help them to grow so they have
an even greater positive impact on people and planet.
Each of our companies is focused on a global niche market
that is aligned with our purpose. This is how we identify
them to become part of our Group and we then help
them to grow, amplifying the benefit they have
onsociety.
We are a global group of life‑saving technology
companies, driven by a clear purpose: to grow a safer,
cleaner, healthier future for everyone, every day.
Our purpose drives every decision we make. It determines
the markets we operate in, the companies we buy, and
the people we hire, and we measure the impact our
companies have against our purpose.
Our purpose
01
Find out more information on our website www.halma.com
It drives our
markets
We are an organisation built for
growth. Our purpose keeps us
focused on markets where we
can have the most beneficial
impact on society while
delivering strong growth
overthe short and long term:
safety,the environment and
healthcare. We buy and grow
companies inthese markets
sothey can help us deliver
ourpurpose.
It drives
ourM&A
How does a potential acquisition
help us deliver our purpose? This
is the first question we ask when
we are thinking about buying a
company. If a company doesn’t
help us fulfil our purpose, we
won’t consider it. We also review
our portfolio on a regular basis
to ensure our companies remain
aligned with our purpose.
It drives our
talent
Our purpose helps us attract
people who are passionate
about helping us fulfil our
purpose. Every job interview
leads with purpose to ensure
that everyone who works with
us is focused on achieving it.
Our purpose drives our business in three ways:
28 Halma plc | Annual Report and Accounts 2024
SUSTAINABLE GROWTH MODEL continued
Our DNA
02
Halma’s DNA runs through our
businessat all levels. It embodies the
core elements of our organisation and
culture that are inextricably linked to
enable our success. Even though we
continuously adapt to a changing world,
these core elements remain constant.
Halma Organisational Genes
These core elements of our business structure have
proved themselves to be fundamental drivers in delivering
consistent, long‑term growth. They describe what we
willprotect while we continuously transform ourselves.
• Purpose drives us
• Agility is everything
• We bet on talent
• We are global niche specialists
• We invest for the future
• We are structured for growth
Halma Cultural Genes
These are the unique cultural and behavioural
principlesthat we require, protect and leverage
toeffectively optimise our organisational genes
anddeliverourpurpose.
• Live the purpose
• Embrace the adventure
• Be an entrepreneur
• Say yes, and…
• Just be a good person
Find out more about each element of our DNA
on our website www.halma.com
Halma plc | Annual Report and Accounts 2024 29
Governance Report Financial Statements Other Information
Strategic Report
We operate in three broad market
areas, safety, the environment and
healthcare, which are defined by
ourpurpose.
Our companies operate in niches within these broad
market areas. Each of these niches has a high exposure
tolong‑term growth drivers.
These growth drivers reflect demographic trends,
including ageing and urbanising populations, increasing
demands on infrastructure and natural resources,
andgrowing sustainability‑related opportunities.
They are expected to persist over the long term
andreflect fundamental global challenges:
Our markets and their
long‑termgrowth drivers
03
1 https://www.un.org/development/desa/pd/content/urbanization‑0
2 International Labour Organization, https://www.ilo.org/global/about‑the‑ilo/
newsroom/news/WCMS_007969/lang‑‑en/index.htm
3 https://www.who.int/news‑room/fact‑sheets/detail/ageing‑and‑health
4 International Association for Prevention of Blindness,
https://www.iapb.org/learn/vision‑atlas
• A growing need to improve the safety
and efficiency of vital industry and
infrastructure, and to safeguard people
as they live and work in increasingly
crowded spaces. Similarly, increasing
automation and complexity in industrial
processes means that there is more
needto protect workers in these
hazardous environments.
The proportion of the global
population that will live in
urbanareas by 2050
1
68%
The number of workers killedeach
year due to workplaceaccidents
2
1m
• Increasing demand for better
healthcare as people live longer and the
prevalence of chronic health conditions
increases. Increasing demand by healthcare
providers for safer and more efficient
diagnostic and treatment methods as
innovation presents new options for
prevention, diagnosis and treatment,
andas aspirations to improve efficiency
and the standard of care increase.
The number of people who will be
aged 60 years and older by 2050
3
2.1bn
The number of people worldwide
living with vision loss in 2020
4
1.1bn
30 Halma plc | Annual Report and Accounts 2024
SUSTAINABLE GROWTH MODEL continued
In each of these areas, growth is underpinned by
increasing safety, health and environmental
regulation, as governments and regulators demand
higher standards in response to these challenges.
We operate in more than 20 countries, with major
operations in the UK, Mainland Europe, the USA and
AsiaPacific, and supply customers in over 100 countries,
through a variety of routes to market, from direct sales
tothird party distribution.
We have a diverse customer base, ranging from small
businesses to Original Equipment Manufacturers (OEMs),
who operate in a wide variety of sectors, including
commercial and public buildings, utilities, healthcare,
science, the environment, process industries, and energy
and resources. Further details on our customers are given
in the individual sector reviews on pages 50 to 67 of
thisreport.
See Safety Sector review on page50
See Environmental & Analysis Sector review on page56
See Healthcare Sector review on page62
5 https://unstats.un.org/sdgs/report/2023/Goal‑06/#:~:text=An%20estimated%20
2.4%20billion%20people,key%20to%20reducing%20water%20stress
6 https://www.who.int/data/gho/data/themes/air‑pollution
7 https://www.wri.org/initiatives/clean‑air‑catalyst
8 https://www.unwater.org/sites/default/files/app/uploads/2018/10/
WaterFacts_water_and_watewater_sep2018.pdf
• The growing need to protect
life‑critical natural resources as they
are increasingly threatened by scarcity,
pollution and increasing demands from
factors such as population growth and
climate change.
The number of people who live
inwater‑stressed countries
withageing water networks
5
2.4bn
The proportion of the world’s
population that live in places
where air pollution levels
exceedWHO guideline limits
6
99%
• Global efforts to address climate
change, waste and pollution as these
impacts become more severe and as
populations are increasingly affected.
The number of people who breathe
unhealthy air, causing nearly seven
million premature deaths every year
7
9/10
The proportion of the world’s
wastewater that is discharged
backinto the environment
withoutbeing treated
8
80%
Halma plc | Annual Report and Accounts 2024 31
Governance Report Financial Statements Other Information
Strategic Report
Business Model
Growth Markets
Portfolio &
Performance
Continuous
Investment
Talent & Culture
Transparent
Incentives
How we grow
Our growth strategy is to acquire small to medium‑sized
companies that are aligned with our purpose, and to grow
them over the long‑term. Through this growth strategy,
weaspire to double our earnings every five years while
maintaining high returns.
Our growth strategy
04
32 Halma plc | Annual Report and Accounts 2024
SUSTAINABLE GROWTH MODEL continued
Portfolio & Performance
We actively manage our portfolio of companies by
investing in acquisitions in niches adjacent to our
existing operations which offer new opportunities
forgrowth, and through mergers and disposals
wheremarket conditions change. This ensures that
ourportfolio can sustain strong growth and returns
over the long term, and that it maintains a high
degreeof resilience given its diversity.
Growth Markets
We look for companies that operate in high value niches
that we know well, within the broad market areas of
safety, the environment, and healthcare. These niches
have global potential and a high exposure to our
long‑term growth drivers.
See Our markets and their long‑term growth drivers on page30
Read more about our approach to acquisitions on page 15
Business Model
We are structured for growth. Our simple and
self‑sustaining financial model enables continuous
investment in our growth strategy. Our companies’
growth is supported by our Growth Enablers which
leverage a unique set of skills and expertise from
acrossthe Group to give our companies a competitive
edge in their markets.
See Our business model on page34
Talent & Culture
We bet on talent. Our decentralised model requires
exceptional leaders who are empowered and accountable
to set strategy, create a high‑performing culture, and
grow their own business.
See Talent & Culture review on page23
Transparent Incentives
We set clear, challenging targets each year and
rewardour people for delivering sustainable growth
andreturns, as well as supporting our people and
protecting the environment.
See Our business model on page34
Continuous Investment
We continually invest in our business and our people to
maintain strong positions in our markets. The highly cash
generative nature of our companies allows us to fund this
investment, both to support organic growth and drive
growth through acquisitions.
See Our business model on page34
Halma plc | Annual Report and Accounts 2024 33
Governance Report Financial Statements Other Information
Strategic Report
We are structured for growth
Our structure is simple and lean, with onlythree layers – companies, sectors andGroup teams – all three of which are aligned
andrewarded on driving growth. This allows for fast decision‑making, andreduced bureaucracy.
See How we are structured on page6
We support our companies through our Growth Enablers
Our Growth Enablers support our companies in delivering their growth strategies, aligned with our purpose. These seven Growth
Enablers leverage a unique set of skills and expertise from across the Group, powered and coordinated by small central teams.
See How the Board supports our companies through our Growth Enablers on page 131
M&A
We acquire and grow businesses
sustainably over thelong term
in line with our strategy and sell
or merge businesses which are
no longeraligned.
Talent & Culture
We ensure Halma
hasworld‑class teams
andhigh‑performance,
inclusivecultures across
allthree layersof our
operatingmodel.
Digital Growth
We provide support to our
companies to accelerate
theirdigital capabilities and
thetechnology to grow.
International Expansion
We assist our companies in
growing their business in key
export markets, including
through our hubs in the USA,
Brazil, UK, India and China.
Finance, Legal & Risk
We give our leaders the
insightto make good decisions,
through accurate, timely,
andactionable financial data,
legal advice and risk analysis.
Innovation Network
We connect our companies
globally with each other
andwith experts to help
themlearnfaster, see new
market trends and establish
strategicpartnerships.
Our companies Our sectors Group teams
Our business model
05
We have a simple and self‑sustaining financial model which
supports investment in our growth strategy and our scalable
organisational model, underpinned by Halma’s DNA. It delivers
strong performance in both the short and longer term.
Each company is a separate legal entity
with a board of directors. This drives
accountability for performance and good
governance. It also allows companies
todrive innovation in their chosen niche
markets and be agile and responsive
tochanges in their customers’ needs.
Our sector teams are the vital connection
between our companies andGrowth
Enablers and drive our M&A efforts.
Theypromote internal networks and
collaboration between companies,
enabling companies to capitalise on
broader sector trends.
Group teams provide expertise in capital
management and control frameworks.
They support our companies through our
Growth Enablers, oversee our portfolio of
companies and the allocation of capital,
set our risk appetite, and ensure
compliance and good governance.
Op 1: Strat Comms
and Brand
Strategic Communications
&Brand
We enable our companies
toreach and influence key
stakeholders by helping them
build their brand, understand
their market needs and develop
leading positions.
34 Halma plc | Annual Report and Accounts 2024
SUSTAINABLE GROWTH MODEL continued
We have a sustainable financial model
Our purpose drives our focus on growing and acquiring businesses in global niches in the safety, environmental,
and healthcare markets.
This market focus results in a highly sustainable financial model with strong organic growth and cash
generationallowing us to continuously reinvest in future growth and acquisitions, as well as increasing
dividendsto investors each year.
We aim to deliver:
We measure our achievements andrewardperformance
We measure our achievements throughfinancial and non‑financial key performance indicators (KPIs), through customer
satisfaction and the delivery ofshareholder value.
See our Key Performance Indicators on page38
Setting challenging targets
We aspire to double our earnings every
fiveyears while maintaining high returns,
and set targets for our growth, returns,
cash generation and investment KPIs.
Wework hard to ensure that we have
theright culture, talent and diversity
andset challenging targets for employee
engagement, healthandsafety, training
and sustainability.
Closely monitoring performance
We closely monitor our companies’
performance, strategic plans and
forecasts. Twice a year, each company
certifies its compliance, with minimum
controls for finance, legal and IT; this
iscomplemented by independent
peerreviews of financial performance,
andinternal and external audits.
We continue to review and develop
ourfinancial and non‑financial KPIs
toensure they remain relevant to the
deliveryof ourstrategy and to the
fulfilment of our purpose.
Rewarding our people
We reward our people for delivering
superior and sustainable growth and
returns, also holding them accountable
fordelivering our strategy and complying
with our control frameworks. Short‑term
incentives based on Economic Value
Added(profit growth, adjusted for a
charge for the use of any capital) are
balanced by longer‑term incentives in
theform of Halma shares.
Read more about our sustainable financial model in our Investment Proposition on page36
Modest
balance sheet
leverage
Strong cash
generation
High
returns
Continued
investment
A growing
dividend
Strong
growth
Healthy
margins
Halma plc | Annual Report and Accounts 2024 35
Governance Report Financial Statements Other Information
Strategic Report
Strong track record of delivery
Consecutive years of
record levels of
profit
21 years
Consecutive years of
Return on Sales of
16% or more
39 years
Consecutive years of
dividend growth of
5% or more
45 years
Strong and superior shareholder returns
Halma
+2,391%
FTSE 100
+281%
NASDAQ
Composite Index
+721%
We believe that our Sustainable Growth Model
enables us to deliver superior and sustainable
returns for our investors.
Our purpose motivates us to make a positive differenceto
people’s lives worldwide. It gives us exciting opportunities
for growth in a diverse range of markets, which have
resilient, long-term growth drivers and high levels
ofdefensibility.
We pursue these opportunities through investment
inourproducts, services and people to drive organic
growth,and by expanding into adjacent markets
throughacquisitions. We actively manage our portfolio
ofbusinesses to ensure we can sustain strong growth
andreturns over the long term.
We set ourselves challenging targets, and use a
range of key performance indicators, to measure
theperformance and success of our business.
See pages 38-43
We aim for the combination of organic and acquisition
growth to exceed an average of 10% pa over the long
term. We aspire to double our earnings every five years,
while maintaining high returns and a conservative
riskappetite.
We aim to deliver high levels of performance and, as a
result, create superior and sustainable shareholder value.
600
450
300
150
% increase
359%
290%
77%
0
Halma FTSE 100 NASDAQ Composite Index
31 March
2014
31 March
2015
31 March
2016
31 March
2017
31 March
2018
31 March
2019
31 March
2020
31 March
2021
31 March
2022
31 March
2023
31 March
2024
Total Shareholder Return
1
(TSR)
Graph as rebased to 100
TSR
1
over the last 20 years
36 Halma plc | Annual Report and Accounts 2024
OUR INVESTMENT PROPOSITION
Our 10 year track record
We have a strong track record of delivering superior growth and high returns, well above our cost of capital,
drivenbythe positive difference we make to people’s lives, in line with our purpose.
We support our continued strong growth and high returns by substantial investment, both organically and through
acquisitions, while maintaining a clear risk appetite (see page 106 of this report) and modest balance sheet leverage.
We delivered Supported by Our 10 year track record
Strong
growth
• Organic growth in markets with
long-term growth drivers
• A strong track record of acquisitions
Revenue CAGR
11.6%
Adjusted
3
Earnings
per share CAGR
11.2%
Healthy
margins
• The high value to our customers
ofourproducts and solutions
Average Adjusted
3
EBIT margin
21.2%
Average Return on Sales
3
20.3%
High
returns
• Healthy profitability and disciplined
capital investment
Average Return on
Total Invested Capital
3
15.2%
Strong cash
generation
• Disciplined capital management
Average cash
conversion
3
90%
Continued
investment
• Strong cash generation and modest
balance sheet leverage
Average annual
R&D spend as
a % of revenue
5.3%
Total acquisition spend
>£1.5bn
Modest
balance sheet
leverage
• Strong cash generation
anddisciplined investment
Average leverage
(net debt
3
/EBITDA
3
)
1.0x
A growing
dividend
• Continued profitable growth
andstrongcash generation
Dividend CAGR
6.8%
1 To 31 March 2024.
2 Compound annual growth rate (CAGR) is the annualised rate of growth across the period. For further detail see the Summary 2015 to 2024 on pages 274 to 275.
3 See alternative performance measures in note 3 to the Accounts.
Halma plc | Annual Report and Accounts 2024 37
Governance Report Financial Statements Other Information
Strategic Report
Organic revenue growth (%)
(constant currency)
Organic profit growth (%)
(constant currency)
Acquisition profit growth (%) EPS growth (%)
(adjusted earnings per share)
Key performance indicator
Performance
7.9%
Performance
7.2%
Performance
6.6%
Performance
7.9%
Target ≥5%
2023
2024
202220212020
5
(6)
17
10
8
Target ≥5%
2023
2024
202220212020
2
(1)
14
4
7
Target ≥5%
2023
2024
202220212020
1
8
4
9
7
Target ≥10%
2023
2024
202220212020
9
2
12
17
8
Strategic focus
Through careful selection of our market
niches and targeted strategic investment,
we aim to achieve organic growth in
excessof our blended market growth
rate,broadly matching revenue and
profitgrowth in the medium term.
Through careful selection of our market
niches and strategic investment, we aim
toachieve organic growth in excess of
ourblended market growth rate, broadly
matching revenue and profit growth in
themedium term.
We buy companies with business and
market characteristics similar to those
ofexisting Halma operations. Acquired
businesses have to be a good fit with our
operating culture and strategy in addition
to being value enhancing financially.
The measure of how successful we are in
growing our business organically and by
acquisition coupled with strong financial
disciplines, including those related to tax
and capital allocation, is captured in the
Group’s adjusted earnings per share.
Comment
Organic revenue growth at constant
currency was above our KPI at 7.9%,
reflecting growth in the Safety and
Environmental & Analysis Sectors,
partlyoffset by a modest decline in the
Healthcare Sector. Growth was ahead
ofour target in both halves of the year.
Organic constant currency revenue
growthhas averaged 6.9% over the
lastfiveyears, ahead of our target.
Organic profit growth at constant currency
was ahead of our target at 7.2%, reflecting
growth in the Safety and Environmental
&Analysis Sectors, partly offset by a
declinein Healthcare. Organic profit
growth over the last five years has
averaged 5.1%, ahead of our target,
despitethe negative effects of the
COVIDpandemic in 2020 and2021.
Acquisition profit growth was good at 6.6%
(3.6% including financing costs). Following
a record level of expenditure on acquisitions
in 2023, we completed eight acquisitions in
2024 for a maximum total consideration of
£292m. We have completed one further
acquisition since the year end and have a
healthy pipeline of M&A opportunities.
Growth in adjusted earnings per share
wasbelow our KPI at 7.9%. While Adjusted
profit growth on a constant currency basis
was 12.5%, there was a negative effect
onearnings per share from currency
translation and an increase in the tax rate.
Growth in Adjusted earnings per share
overthe past five years has averaged
9.5%,close to our KPI.
Definition
Organic revenue growth is calculated
atconstant currency and measures
thechange in revenue achieved in the
current year compared with the prior
yearfrom continuing Group operations.
The effect of acquisitions and disposals
made during the current or prior financial
year has been eliminated.
Organic profit growth is calculated at
constant currency and measures the
change in Adjusted operating profit
achieved in thecurrent year compared
withthe prior year from continuing Group
operations. The effect of acquisitions and
disposals made during the current or prior
financial year has been eliminated. This
year we have changed this metric to
showAdjusted EBIT growth (on an organic
constant currency basis), which excludes
financing costs. This better reflects the
Group’s focus on delivering a strong
operating performance.
Acquisition profit growth measures the
annualised profit from acquisitions made
inthe year, measured at the date of
acquisition, expressed as a percentage
ofprior yearprofit. From this year, we are
reporting this key performance indicator
excluding financing costs, given our
sustainable financial model, which allows
us to make substantial investments in
acquisitions while maintaining modest
levels of financial leverage. We have also
reported the indicator including financing
costs, as above.
Adjusted earnings per share is calculated
asearnings from continuing operations
attributable to owners of the parent before
adjustments (as outlined on page213) and
the associated taxation thereon, divided
bythe weighted average number of shares
in issue during the year (net of shares
purchased by the Group and held as
ownshares).
Target
The Board has established a long‑term
minimum organic revenue growth target
of5% pa, slightly above the blended
long‑term average growth rate of
ourmarkets.
The Board has established a long‑term
organic growth target of at least 5% pa,
slightly above the blended long‑term
average growth rate of our markets.
Acquisitions must meet our demanding
criteria and we continue to have a strong
pipeline of opportunities to meet our
minimum 5% growth target.
We aim for the combination of organic and
acquisition growth to exceed an average of
10% pa over the long term. TheDirectors
consider that adjusted earnings represent
amore consistent measure of underlying
performance than statutory earnings.
Remuneration
linkage
Organic revenue drives earnings growth
which contributes to the EVA performance.
This forms the basis of the annual bonus
plan for Group, sector and company
boards, requiring consistent annual
andlonger‑term growth with disciplined
financial management.
Growth in organic profit is a key
elementofthe Economic Value Added
(EVA) performance which forms the
basisof theannual bonus plan for Group,
sectorand company boards, requiring
consistent annual and longer‑term growth.
SeetheAnnual Remuneration Report
fordetails of the EVA calculation.
Growth in acquired profit is the second key
element of the EVA performance which
forms the basis of the annual bonus plan
for Group, sector and company boards,
requiring consistent annual and
longer‑termgrowth.
EPS provides a clear link to the aims of
thebusiness growth strategy. It is a key
financial driver for our business and
provides a clear line of sight for our
executives. EPS growth is 50% of the
performance condition attaching to
theExecutive Share Plan.
We have a range of financial and
non‑financial key performance
indicators (KPIs) thatweuse to
measurethe performance and
successof our business.
A number of financial KPIs are alternative performance
measures. Seenote3 to the Accounts for reconciliations.
This year, we have reviewed our financial KPIs, and have
made a number of changes to ensure that we are using
the most appropriate metrics to drive performance, and
to enable our stakeholders to more easilycompare our
performance against our peers.
We have added an Adjusted
1
EBIT margin KPI and have
moved our organic and acquisition profit growth KPIs
toapre‑interest basis consistent with this new KPI.
Forcontinuity, we have also reported our acquisition
growth KPI on a post‑interest basis.
We have discontinued the use of our International
GrowthKPI, as, while growth in markets outside the
UK,USA and Mainland Europe remains an important
component of our overall growth, we no longer consider
itto be a strategic priority over growth in the UK, USA
and Mainland Europe.
38 Halma plc | Annual Report and Accounts 2024
KEY PERFORMANCE INDICATORS
Organic revenue growth (%)
(constant currency)
Organic profit growth (%)
(constant currency)
Acquisition profit growth (%) EPS growth (%)
(adjusted earnings per share)
Key performance indicator
Performance
7.9%
Performance
7.2%
Performance
6.6%
Performance
7.9%
Target ≥5%
2023
2024
202220212020
5
(6)
17
10
8
Target
≥5%
2023
2024
202220212020
2
(1)
14
4
7
Target ≥5%
2023
2024
202220212020
1
8
4
9
7
Target ≥10%
2023
2024
202220212020
9
2
12
17
8
Strategic focus
Through careful selection of our market
niches and targeted strategic investment,
we aim to achieve organic growth in
excessof our blended market growth
rate,broadly matching revenue and
profitgrowth in the medium term.
Through careful selection of our market
niches and strategic investment, we aim
toachieve organic growth in excess of
ourblended market growth rate, broadly
matching revenue and profit growth in
themedium term.
We buy companies with business and
market characteristics similar to those
ofexisting Halma operations. Acquired
businesses have to be a good fit with our
operating culture and strategy in addition
to being value enhancing financially.
The measure of how successful we are in
growing our business organically and by
acquisition coupled with strong financial
disciplines, including those related to tax
and capital allocation, is captured in the
Group’s adjusted earnings per share.
Comment
Organic revenue growth at constant
currency was above our KPI at 7.9%,
reflecting growth in the Safety and
Environmental & Analysis Sectors,
partlyoffset by a modest decline in the
Healthcare Sector. Growth was ahead
ofour target in both halves of the year.
Organic constant currency revenue
growthhas averaged 6.9% over the
lastfiveyears, ahead of our target.
Organic profit growth at constant currency
was ahead of our target at 7.2%, reflecting
growth in the Safety and Environmental
&Analysis Sectors, partly offset by a
declinein Healthcare. Organic profit
growth over the last five years has
averaged 5.1%, ahead of our target,
despitethe negative effects of the
COVIDpandemic in 2020 and2021.
Acquisition profit growth was good at 6.6%
(3.6% including financing costs). Following
a record level of expenditure on acquisitions
in 2023, we completed eight acquisitions in
2024 for a maximum total consideration of
£292m. We have completed one further
acquisition since the year end and have a
healthy pipeline of M&A opportunities.
Growth in adjusted earnings per share
wasbelow our KPI at 7.9%. While Adjusted
profit growth on a constant currency basis
was 12.5%, there was a negative effect
onearnings per share from currency
translation and an increase in the tax rate.
Growth in Adjusted earnings per share
overthe past five years has averaged
9.5%,close to our KPI.
Definition
Organic revenue growth is calculated
atconstant currency and measures
thechange in revenue achieved in the
current year compared with the prior
yearfrom continuing Group operations.
The effect of acquisitions and disposals
made during the current or prior financial
year has been eliminated.
Organic profit growth is calculated at
constant currency and measures the
change in Adjusted operating profit
achieved in thecurrent year compared
withthe prior year from continuing Group
operations. The effect of acquisitions and
disposals made during the current or prior
financial year has been eliminated. This
year we have changed this metric to
showAdjusted EBIT growth (on an organic
constant currency basis), which excludes
financing costs. This better reflects the
Group’s focus on delivering a strong
operating performance.
Acquisition profit growth measures the
annualised profit from acquisitions made
inthe year, measured at the date of
acquisition, expressed as a percentage
ofprior yearprofit. From this year, we are
reporting this key performance indicator
excluding financing costs, given our
sustainable financial model, which allows
us to make substantial investments in
acquisitions while maintaining modest
levels of financial leverage. We have also
reported the indicator including financing
costs, as above.
Adjusted earnings per share is calculated
asearnings from continuing operations
attributable to owners of the parent before
adjustments (as outlined on page213) and
the associated taxation thereon, divided
bythe weighted average number of shares
in issue during the year (net of shares
purchased by the Group and held as
ownshares).
Target
The Board has established a long‑term
minimum organic revenue growth target
of5% pa, slightly above the blended
long‑term average growth rate of
ourmarkets.
The Board has established a long‑term
organic growth target of at least 5% pa,
slightly above the blended long‑term
average growth rate of our markets.
Acquisitions must meet our demanding
criteria and we continue to have a strong
pipeline of opportunities to meet our
minimum 5% growth target.
We aim for the combination of organic and
acquisition growth to exceed an average of
10% pa over the long term. TheDirectors
consider that adjusted earnings represent
amore consistent measure of underlying
performance than statutory earnings.
Remuneration
linkage
Organic revenue drives earnings growth
which contributes to the EVA performance.
This forms the basis of the annual bonus
plan for Group, sector and company
boards, requiring consistent annual
andlonger‑term growth with disciplined
financial management.
Growth in organic profit is a key
elementofthe Economic Value Added
(EVA) performance which forms the
basisof theannual bonus plan for Group,
sectorand company boards, requiring
consistent annual and longer‑term growth.
SeetheAnnual Remuneration Report
fordetails of the EVA calculation.
Growth in acquired profit is the second key
element of the EVA performance which
forms the basis of the annual bonus plan
for Group, sector and company boards,
requiring consistent annual and
longer‑termgrowth.
EPS provides a clear link to the aims of
thebusiness growth strategy. It is a key
financial driver for our business and
provides a clear line of sight for our
executives. EPS growth is 50% of the
performance condition attaching to
theExecutive Share Plan.
Halma plc | Annual Report and Accounts 2024 39
Governance Report Financial Statements Other Information
Strategic Report
Adjusted EBIT margin (%) Return on Sales (%) ROTIC (%)
(Return on Total Invested Capital)
Cash generation (%)
Key performance indicator
Performance
20.8%
Performance
19.5%
Performance
14.4%
Performance
103%
Target range
19% to 23%
2023
2024
202220212020
20.9
21.9
21.3
20.4
20.8
Target range
18% to 22%
2023
2024
202220212020
19.9
21.1 20.7
19.5 19.5
Target range
12% to 17%
2023
2024
202220212020
15.3
14.4
14.6
14.8
14.4
Target ≥90%
2023
2024
202220212020
97
104
84
78
103
Strategic focus
We choose to operate in market niches
which are capable of delivering growth
andhigh returns. The ability to sustain
these returns is a result of maintaining
strong market and product positions
sustained by continuing product and
process innovation.
We choose to operate in market niches
which are capable of delivering growth
andhigh returns. The ability to sustain
these returns is a result of maintaining
strong market and product positions
sustained by continuing product and
process innovation.
We choose to invest in high return on
capital businesses operating in markets
which are capable of delivering growth
andhigh returns. The ability to sustain
growth and high returns is a result of
maintaining strong market and product
positions sustained by continuing
productand process innovation.
Strong cash generation provides the
Groupwith freedom to pursue its strategic
goals of investment in organic growth,
acquisitions and progressive dividends
without becoming highly leveraged. Our
decentralised structure ensures that cash
management is controlled at the individual
company level and then transferred to the
central treasury function.
Comment
Our Adjusted EBIT margin increased by
40basis points to 20.8%. This reflected a
strong performance in the Safety Sector,
partly offset by weaker performance in
theHealthcare and Environmental &
Analysis Sectors.
Return on Sales remained stable at 19.5%,
within our target range of 18‑22%, despite
amaterial increase in net finance expense
in the year. Return on Sales remained
aboveour minimum target in each of
ourthree sectors.
ROTIC was 14.4%, remaining ahead of
ourtarget and substantially above our
Weighted Average Cost of Capital, which
isestimated to be 9.7% (2023: 8.9%).
Thechange compared to the prior year
principally reflected adverse effects from
currency, interest and tax movements,
which more than offset the benefit from
our positive performance.
Our cash conversion was strong and
increased to 103%, well ahead of our target.
Cash conversion was 96% in the first half
ofthe year and increased to 108% in the
second half. This reflected good underlying
working capital control as well as a
reduction of the strategic investment in
inventory made in the two prior years.
Definition
Adjusted EBIT margin is defined as Adjusted
operating profit from continuing operations
expressed as a percentage of revenue from
continuing operations.
Return on Sales is defined as Adjusted Profit
before Taxation from continuing operations
expressed as a percentage ofrevenue from
continuing operations.
ROTIC is defined as the post‑tax return
fromcontinuing operations before
adjustments (as outlined on page 214)
andthe associated taxation thereon,
asapercentage of average Total
InvestedCapital.
Cash generation is calculated using
adjusted operating cash flow as a
percentage of adjusted operating profit.
Target
We aim to achieve an Adjusted EBIT margin
within a range of 19‑23%.
We aim to achieve a Return on Sales within
the 18% to 22% range.
A range of 12% to 17% is considered
representative of the Board’s expectations
over the long term to ensure a good
balance between growth, investment
andreturns.
The goal of Group cash inflow exceeding
90% of profit has relevance at all levels of
the organisation and aligns management
action with Group needs. We ensure that
strong internal cash flow and availability
ofexternal funding underpin our strategic
goals of organic growth, acquisitions and
progressive dividends.
Remuneration
linkage
Adjusted EBIT margin is a measure of the
value our customers place on our solutions
and of our operational efficiency. High
profitability supports the generation of
higheconomic value and cash generation.
We choose a range in order to maintain a
balance between short‑term performance
and longer‑term growth.
Return on Sales is a measure of the
valueour customers place on our solutions
and of our operational efficiency. High
profitability supports the generation of
higheconomic value and cash generation.
We choose a range in order to maintain a
balance between short‑term performance
and longer‑term growth.
ROTIC performance, averaged over three
financial years, is 50% of the performance
condition attaching to the Executive
SharePlan.
Strong cash generation is closely correlated
with high return on capital which is a key
component of our EVA bonus plan and
ourROTIC Executive Share Plan
vestingmeasure.
40 Halma plc | Annual Report and Accounts 2024
KEY PERFORMANCE INDICATORS continued
Adjusted EBIT margin (%) Return on Sales (%) ROTIC (%)
(Return on Total Invested Capital)
Cash generation (%)
Key performance indicator
Performance
20.8%
Performance
19.5%
Performance
14.4%
Performance
103%
Target range
19% to 23%
2023
2024
202220212020
20.9
21.9
21.3
20.4
20.8
Target range
18% to 22%
2023
2024
202220212020
19.9
21.1 20.7
19.5 19.5
Target range
12% to 17%
2023
2024
202220212020
15.3
14.4
14.6
14.8
14.4
Target ≥90%
2023
2024
202220212020
97
104
84
78
103
Strategic focus
We choose to operate in market niches
which are capable of delivering growth
andhigh returns. The ability to sustain
these returns is a result of maintaining
strong market and product positions
sustained by continuing product and
process innovation.
We choose to operate in market niches
which are capable of delivering growth
andhigh returns. The ability to sustain
these returns is a result of maintaining
strong market and product positions
sustained by continuing product and
process innovation.
We choose to invest in high return on
capital businesses operating in markets
which are capable of delivering growth
andhigh returns. The ability to sustain
growth and high returns is a result of
maintaining strong market and product
positions sustained by continuing
productand process innovation.
Strong cash generation provides the
Groupwith freedom to pursue its strategic
goals of investment in organic growth,
acquisitions and progressive dividends
without becoming highly leveraged. Our
decentralised structure ensures that cash
management is controlled at the individual
company level and then transferred to the
central treasury function.
Comment
Our Adjusted EBIT margin increased by
40basis points to 20.8%. This reflected a
strong performance in the Safety Sector,
partly offset by weaker performance in
theHealthcare and Environmental &
Analysis Sectors.
Return on Sales remained stable at 19.5%,
within our target range of 18‑22%, despite
amaterial increase in net finance expense
in the year. Return on Sales remained
aboveour minimum target in each of
ourthree sectors.
ROTIC was 14.4%, remaining ahead of
ourtarget and substantially above our
Weighted Average Cost of Capital, which
isestimated to be 9.7% (2023: 8.9%).
Thechange compared to the prior year
principally reflected adverse effects from
currency, interest and tax movements,
which more than offset the benefit from
our positive performance.
Our cash conversion was strong and
increased to 103%, well ahead of our target.
Cash conversion was 96% in the first half
ofthe year and increased to 108% in the
second half. This reflected good underlying
working capital control as well as a
reduction of the strategic investment in
inventory made in the two prior years.
Definition
Adjusted EBIT margin is defined as Adjusted
operating profit from continuing operations
expressed as a percentage of revenue from
continuing operations.
Return on Sales is defined as Adjusted Profit
before Taxation from continuing operations
expressed as a percentage ofrevenue from
continuing operations.
ROTIC is defined as the post‑tax return
fromcontinuing operations before
adjustments (as outlined on page 214)
andthe associated taxation thereon,
asapercentage of average Total
InvestedCapital.
Cash generation is calculated using
adjusted operating cash flow as a
percentage of adjusted operating profit.
Target
We aim to achieve an Adjusted EBIT margin
within a range of 19‑23%.
We aim to achieve a Return on Sales within
the 18% to 22% range.
A range of 12% to 17% is considered
representative of the Board’s expectations
over the long term to ensure a good
balance between growth, investment
andreturns.
The goal of Group cash inflow exceeding
90% of profit has relevance at all levels of
the organisation and aligns management
action with Group needs. We ensure that
strong internal cash flow and availability
ofexternal funding underpin our strategic
goals of organic growth, acquisitions and
progressive dividends.
Remuneration
linkage
Adjusted EBIT margin is a measure of the
value our customers place on our solutions
and of our operational efficiency. High
profitability supports the generation of
higheconomic value and cash generation.
We choose a range in order to maintain a
balance between short‑term performance
and longer‑term growth.
Return on Sales is a measure of the
valueour customers place on our solutions
and of our operational efficiency. High
profitability supports the generation of
higheconomic value and cash generation.
We choose a range in order to maintain a
balance between short‑term performance
and longer‑term growth.
ROTIC performance, averaged over three
financial years, is 50% of the performance
condition attaching to the Executive
SharePlan.
Strong cash generation is closely correlated
with high return on capital which is a key
component of our EVA bonus plan and
ourROTIC Executive Share Plan
vestingmeasure.
Halma plc | Annual Report and Accounts 2024 41
Governance Report Financial Statements Other Information
Strategic Report
Research and development (%)
(% of revenue)
Employee engagement (%) Health & Safety
(accident frequency rate)
Climate Change
(reduction in Scope 1 & 2 emissions
from 2020 baseline (%))
Diversity, Equity and Inclusion
(company board gender balance (%))
Key performance indicator
Performance
5.3%
Performance
76%
Performance
0.05
Performance
55%
Performance
31%
Target
≥4%
2023
2024
202220212020
5.4
5.3
5.6
5.5
5.3
Target 74%
2023
2024
202220212020
75
78
76 76 76
Target <0.02%
2023
2024
202220212020
0.06
0.02
0.09
0.08
0.05
Target 42% reduction
2023
2024
2020
0
46%
55%
Target 40%
2023
2024
202220212020
22
19
26
29
31
Strategic focus
We have maintained high levels of
researchand development (R&D)
investment and spending on innovation.
The successful introduction of new products
is a key contributor to the Group’sability
tobuild competitive advantage and
groworganically andinternationally.
Halma conducts an annual survey of its
employees to assess engagement across
the Group. This provides visibility of
engagement at the Group, sector
andcompany levels.
Health and safety is a top priority for
theGroup. Halma collects details of
itsworldwide reported health and
safetyincidents and encourages all
Groupcompanies to seek continuous
improvement in their health
andsafetyrecords and culture.
As part of our sustainability pillar of
protecting our environment, reducing
ourown emissions is a key focus area
fortheGroup as a whole and for each
ofourcompanies.
As part of our sustainability pillar of
supporting our people, diversity, equity
andinclusion is a key focus area. Following
our success in increasing gender diversity
atthe Halma and Executive Boards, our
current target is to increase gender diversity
on our company boards.
Comment
Total R&D spend remained well above our
KPI target at 5.3% of revenue (2023: 5.5%).
In absolute terms, R&D expenditure in
theyear increased by £4.4m to £107.2m.
Thisincreasing investment reflected our
companies’ confidence in the growth
prospects of their respective markets.
Inthemedium term we expect R&D
expenditure to continue to increase
broadlyin line with revenue growth.
The baseline for our target was established
in 2017 when we ran our first global
employee engagement survey. We were
pleased to see the employee engagement
score remain strong this year, achieving
thesame engagement score as last year.
The Health & Safety AFR performance this
year was 0.05 (2023: 0.08) representing a
decrease against last year. We continue
topromote the importance of health and
safety and review all reported incidents.
There are no specific underlying patterns
which cause concern.
Scope 1 & 2 emissions have reduced by
55%since 2020, further exceeding our
target, largely as a result of increasing
renewable energy, alongside energy
efficiency initiatives and other
operationalimprovements.
During 2024 Halma also adopted a 2050
date for our Scope 3 Net Zero ambition
andcontinues to work towards transition
planning and interim target setting.
This year we have 31%
*
women on company
boards, increasing from 29% lastyear.
Whilst this is an improvement, werecognise
we need to accelerate the pace of change
to meet our target for allboards to be
within a 40–60% gender balanced range
bya new date of 31 March 2030. See page84
of the Support our people sectionfor more
details on this.
Definition
Total R&D expenditure in the financial
year(boththatexpensed and capitalised)
asapercentage of revenue from
continuingoperations.
The engagement of employees as
measured through an externally facilitated
survey over nine dimensions: engagement,
empowerment, accountability, collaboration
and teamwork, communication,
development, ethics and fairtreatment,
innovation and leadership.
The year‑to‑date Accident Frequency Rate
(AFR) is the total number of reportable
*
incidents in the period divided by the
number of hours worked in that period by
employees (including temporary staff and
any overtime) multiplied by 100,000 hours
(representing the estimated number of
working hours in an employee’s work
lifetime). The AFR figure represents
anindication of how many incidents
employees will have in their working lives.
The total reduction in global Scope 1 & 2
greenhouse gas emissions compared toour
2020 baseline (as adjusted for acquisitions
and disposals), with Scope 2 measured
using a market‑based approach that takes
account of contractual instruments for
renewable electricity. Baseline and
comparative year were restated as a result
of acquisitions. Full details of our definition
and measurement are set outinour Basis
of Preparation atwww.halma.com.
The total number of board members
whoare women as a proportion of the
totalnumber of Halma company board
directors (191
*
company directors as
at31 March 2024).
Target
New products contribute strongly to
organic growth, maintaining high returns
and building strong market positions.
The 4% minimum investment target is
appropriate to the mix of product life
cyclesand technologies within Halma.
Our target remains to match or
beat the baseline achieved in 2017
of74%engagement.
The target is set at the lowest rate we have
achieved as a Group and was re‑set at
<0.02 in 2021.
The Group is targeting Net Zero Scope 1 & 2
emissions by 2040. Our interim target for
2030, set in line with a 1.5 degree trajectory,
is to reduce Scope 1 & 2 emissions 42% from
our 2020 baseline.
Halma company boards are to be within
a40–60% gender balance range by
31March2030.
Remuneration
linkage
Successful R&D investment is a key
component of sustaining strong growth
and returns which, in turn, help to drive
EVA, EPS and ROTIC – all key elements
ofour annual bonus and longer term
incentive plans.
* Specified major injury incidents are reportable
incidents which result in more than three
workingdays lost.
5% of the maximum opportunity
ofourannual bonus plan is related to
achievement of an energy productivity
target. Energy productivity is a key action
that can be remunerated on an annual
basis and underpins our achievement
ofthese Scope 1 & 2 targets. This applies
tothe annual bonus for the Executive
Directors and other senior leaders in the
business. This target was exceeded this
yearas outlined on page 169 of the
AnnualRemuneration Report.
5% of the maximum opportunity of
ourannual bonus plan isrelated to the
achievement of a target which reflects
ourwider ambition of achieving 40‑60%
gender balance on our company boards.
This applies to the Executive Directors
andother senior leaders in the business.
Wedidnot meet the target this year as
outlined onpage 169 in the Annual
Remuneration Report.
* This includes directors of the companies that have
been in the portfolio for longer than three years as
at 31 March 2024.
42 Halma plc | Annual Report and Accounts 2024
KEY PERFORMANCE INDICATORS continued
Research and development (%)
(% of revenue)
Employee engagement (%) Health & Safety
(accident frequency rate)
Climate Change
(reduction in Scope 1 & 2 emissions
from 2020 baseline (%))
Diversity, Equity and Inclusion
(company board gender balance (%))
Key performance indicator
Performance
5.3%
Performance
76%
Performance
0.05
Performance
55%
Performance
31%
Target ≥4%
2023
2024
202220212020
5.4
5.3
5.6
5.5
5.3
Target 74%
2023
2024
202220212020
75
78
76 76 76
Target
<0.02%
2023
2024
202220212020
0.06
0.02
0.09
0.08
0.05
Target 42% reduction
2023
2024
2020
0
46%
55%
Target 40%
2023
2024
202220212020
22
19
26
29
31
Strategic focus
We have maintained high levels of
researchand development (R&D)
investment and spending on innovation.
The successful introduction of new products
is a key contributor to the Group’sability
tobuild competitive advantage and
groworganically andinternationally.
Halma conducts an annual survey of its
employees to assess engagement across
the Group. This provides visibility of
engagement at the Group, sector
andcompany levels.
Health and safety is a top priority for
theGroup. Halma collects details of
itsworldwide reported health and
safetyincidents and encourages all
Groupcompanies to seek continuous
improvement in their health
andsafetyrecords and culture.
As part of our sustainability pillar of
protecting our environment, reducing
ourown emissions is a key focus area
fortheGroup as a whole and for each
ofourcompanies.
As part of our sustainability pillar of
supporting our people, diversity, equity
andinclusion is a key focus area. Following
our success in increasing gender diversity
atthe Halma and Executive Boards, our
current target is to increase gender diversity
on our company boards.
Comment
Total R&D spend remained well above our
KPI target at 5.3% of revenue (2023: 5.5%).
In absolute terms, R&D expenditure in
theyear increased by £4.4m to £107.2m.
Thisincreasing investment reflected our
companies’ confidence in the growth
prospects of their respective markets.
Inthemedium term we expect R&D
expenditure to continue to increase
broadlyin line with revenue growth.
The baseline for our target was established
in 2017 when we ran our first global
employee engagement survey. We were
pleased to see the employee engagement
score remain strong this year, achieving
thesame engagement score as last year.
The Health & Safety AFR performance this
year was 0.05 (2023: 0.08) representing a
decrease against last year. We continue
topromote the importance of health and
safety and review all reported incidents.
There are no specific underlying patterns
which cause concern.
Scope 1 & 2 emissions have reduced by
55%since 2020, further exceeding our
target, largely as a result of increasing
renewable energy, alongside energy
efficiency initiatives and other
operationalimprovements.
During 2024 Halma also adopted a 2050
date for our Scope 3 Net Zero ambition
andcontinues to work towards transition
planning and interim target setting.
This year we have 31%
*
women on company
boards, increasing from 29% lastyear.
Whilst this is an improvement, werecognise
we need to accelerate the pace of change
to meet our target for allboards to be
within a 40–60% gender balanced range
bya new date of 31 March 2030. See page84
of the Support our people sectionfor more
details on this.
Definition
Total R&D expenditure in the financial
year(boththatexpensed and capitalised)
asapercentage of revenue from
continuingoperations.
The engagement of employees as
measured through an externally facilitated
survey over nine dimensions: engagement,
empowerment, accountability, collaboration
and teamwork, communication,
development, ethics and fairtreatment,
innovation and leadership.
The year‑to‑date Accident Frequency Rate
(AFR) is the total number of reportable
*
incidents in the period divided by the
number of hours worked in that period by
employees (including temporary staff and
any overtime) multiplied by 100,000 hours
(representing the estimated number of
working hours in an employee’s work
lifetime). The AFR figure represents
anindication of how many incidents
employees will have in their working lives.
The total reduction in global Scope 1 & 2
greenhouse gas emissions compared toour
2020 baseline (as adjusted for acquisitions
and disposals), with Scope 2 measured
using a market‑based approach that takes
account of contractual instruments for
renewable electricity. Baseline and
comparative year were restated as a result
of acquisitions. Full details of our definition
and measurement are set outinour Basis
of Preparation atwww.halma.com.
The total number of board members
whoare women as a proportion of the
totalnumber of Halma company board
directors (191
*
company directors as
at31 March 2024).
Target
New products contribute strongly to
organic growth, maintaining high returns
and building strong market positions.
The 4% minimum investment target is
appropriate to the mix of product life
cyclesand technologies within Halma.
Our target remains to match or
beat the baseline achieved in 2017
of74%engagement.
The target is set at the lowest rate we have
achieved as a Group and was re‑set at
<0.02 in 2021.
The Group is targeting Net Zero Scope 1 & 2
emissions by 2040. Our interim target for
2030, set in line with a 1.5 degree trajectory,
is to reduce Scope 1 & 2 emissions 42% from
our 2020 baseline.
Halma company boards are to be within
a40–60% gender balance range by
31March2030.
Remuneration
linkage
Successful R&D investment is a key
component of sustaining strong growth
and returns which, in turn, help to drive
EVA, EPS and ROTIC – all key elements
ofour annual bonus and longer term
incentive plans.
* Specified major injury incidents are reportable
incidents which result in more than three
workingdays lost.
5% of the maximum opportunity
ofourannual bonus plan is related to
achievement of an energy productivity
target. Energy productivity is a key action
that can be remunerated on an annual
basis and underpins our achievement
ofthese Scope 1 & 2 targets. This applies
tothe annual bonus for the Executive
Directors and other senior leaders in the
business. This target was exceeded this
yearas outlined on page 169 of the
AnnualRemuneration Report.
5% of the maximum opportunity of
ourannual bonus plan isrelated to the
achievement of a target which reflects
ourwider ambition of achieving 40‑60%
gender balance on our company boards.
This applies to the Executive Directors
andother senior leaders in the business.
Wedidnot meet the target this year as
outlined onpage 169 in the Annual
Remuneration Report.
* This includes directors of the companies that have
been in the portfolio for longer than three years as
at 31 March 2024.
Halma plc | Annual Report and Accounts 2024 43
Governance Report Financial Statements Other Information
Strategic Report
Revenue growth in all regions except Asia Pacific
Our revenue performance reflected broad-based
demandfor the Group’s products and services, with
revenue growth in all regions except Asia Pacific, both
ona reported and organic constant currency
1
basis.
Reported growth rates in each region were impacted to
differing extents by acquisitions (net of disposals), and,
outside the UK, negative effects from foreign currency
translation, given the appreciation of Sterling. On an
organic constant currency
1
basis, there was very strong
growth in the USA, our largest sales region. Growth
inMainland Europe and the UK was solid, reflecting
themixof company performances, while Asia Pacific
declinedoverall, due to weaker demand in China. The
smaller other regions delivered good growth in aggregate.
Strong growth in the USA
Revenue in the USA increased by 14.7%, and the USA
remains our largest revenue destination, accounting for
44% of Group revenue, an increase of two percentage
points compared to the prior year. Reported revenue
included a 3.8% contribution from acquisitions (net of
disposals), and a negative effect of 4.5% from foreign
exchange translation. Organic constant currency
1
revenueincreased 15.4%, reflecting strong growth in
theEnvironmental & Analysis Sector led by exceptional
growth in photonics within the Optical Analysis subsector,
and reflecting good momentum in the Safety Sector.
Thismore than offset a decline in the Healthcare
Sectoron an organic constant currency
1
basis, given
destocking by OEM customers and budgetary caution
athealthcare providers.
Solid growth in Mainland Europe
Mainland Europe revenue was 11.4% higher, or up
4.3%onan organic constant currency
1
basis. Reported
revenueincluded a 7.3% contribution from acquisitions
(net of disposals), and a negative effect of 0.2% from
foreign exchange translation.
On an organic constant currency
1
basis, there was strong
growth in the Healthcare Sector, driven by ophthalmology
within Therapeutic Solutions. There wasagood performance
in the Environmental & AnalysisSector, with a strong
growth in Water Analysis and Treatment partly offset
byweaker trends in Optical Analysis as a result of lower
spectroscopy revenues. Growth in the Safety Sector
wassolid, reflecting modestgrowth in Fire Safety
andPublicSafety.
Solid growth in the UK
UK revenue was 5.4% higher, or up 4.1% on an
organicconstant currency basis. Reported revenue
included a 1.4% contribution from acquisitions (net
ofdisposals), anda negative effect of 0.1% from
foreignexchange translation.
There was strong growth on an organic constant currency
1
basis in the Environmental & Analysis Sector asaresult
ofa very strong performance in Water Analysis and
Treatment. Growth in the Safety Sector was modest,
given the end of a significant road safety contract.
Thiswas offset by a modest decline in the Healthcare
Sector, reflecting end market weakness.
Strong growth in Other regions offset by
weaknessin China
Revenue from territories outside the UK/Mainland Europe/
the USA grew by 2.1%, which was lower than our 10% KPI
growth target, reflecting weakness in China.
Asia Pacific revenue decreased 2.7%, and by 2.8% on an
organic constant currency
1
basis. This reflected an organic
constant currency
1
revenue decline in China, our largest
market in the region at approximately 5% of Group
revenue, as economic conditions remained subdued. This
was partly offset by solid growth in Australasia, the second
largest market in the region. Performance by sector was
mixed, with strong organic constant currency
1
growth in
the Safety Sector, offset by a decline in organic constant
currency
1
revenue in the Environmental & Analysis and
Healthcare sectors. Reported revenue included a 5.1%
contribution from acquisitions (net of theimpact of
disposals), and a negative effect of 5.0% from foreign
exchange translation.
Other regions, which represent 7% of Group revenue,
reported revenue 12.1% higher on a reported basis,
andup4.8% on an organic constant currency
1
basis,
reflecting strong growth in the Safety Sector, partially
offset by a flat performance in the Environmental &
Analysis Sector and a decline in the Healthcare Sector.
Geographic revenue
bridge (£m)
+9.8%
£2,034.1m
2024OtherAsia PacificUKEuropeUSA2023
2,034.112.1%
(2.7)%5.4%
11.4%
14.7%
1,852.8
Financial review
Our Financial review is divided into two parts.
Thissecond part gives further detail on our
financialperformance and position, including
onourperformance by region.
Please refer to the Chief Financial Officer’s review
onpages 18 to 22 for commentary on the key
financial metrics for the Group: revenue, profit,
cashgeneration, organic and inorganic investment,
and returns.
Details of the performance of our individual sectors
is given in each of the sector reviews, on pages50
to67 of this Report.
44 Halma plc | Annual Report and Accounts 2024
FINANCIAL REVIEW
First and second half performance
Revenue grew by 8.6% in the first half of the year and by
10.9% in the second half, with second half revenue 14.0%
higher than revenue in the first. There was a first half/
second half split of revenue of 47%/53%, compared with
our typical 48%/52% pattern. Organic constant currency
1
revenue increased by 7.9%, comprising a 5.4% increase
inthe first half and growth of 10.2% in the second half.
There was a negative effect of 2.1% from currency
translation in the first half, and of 3.5% in the second
half, giving a negative effect of 2.8% for the year as a
whole. Acquisitions (net of disposals) had a positive
effectof 4.7%, comprising a 5.3% positive effect in
thefirst half and 4.2% in the second half.
Adjusted
1
EBIT increased by 6.7% in the first half and by
16.9% in the second half, reflecting stronger second half
performances in the Environmental & Analysis and Safety
sectors, partly offset by weaker trends in the Healthcare
Sector, as described in the sector reviews. Similarly,
Adjusted
1
profit increased by 3.4% in the first half and
by15.5% in the second half. There was a first half/second
half split of Adjusted
1
profit of 45%/55%, in line with our
typical 45%/55% pattern. Organic profit at constant
currency
1
was flat in the first half, and increased by
15.2%in the second half, resulting in growth of 8.0%
fortheyear.
Central costs, which include our Growth Enabler
functions, increased from £38.6m in 2023 to £41.1m.
Theincrease reflected investment in our Growth Enabler
teams, technology infrastructure and talent to support
our future growth, and was in line with the increase in
ourgrowth, but below our previous guidance reflecting
the timing of various cost items, including project and
recruitment spend, which we now expect to be incurred
in2025. As a result, we expect central coststo be
approximately £47m in 2025.
Currency effects on reported revenue and profit
Halma reports its results in Sterling. Our other key trading
currencies are the US Dollar, Euro and to a lesser extent
the Swiss Franc, the Chinese Renminbi and the Australian
Dollar. Almost 50% of Group revenue is denominated in US
Dollars, approximately 25% in Sterling and approximately
13% in Euros.
The Group has both translational and transactional
currency exposures. Translational exposures are not
hedged, except for net investment hedges. Transactional
exposures, after matching currency of revenue with
currency costs wherever practical, are hedged for a
proportion (up to 75%) of the remaining forecast net
transaction flows where there is a reasonable certainty
ofan exposure. We hedge up to 12 months forward
usingforward exchange contracts.
Sterling strengthened on average in the year. This
gaverise to a negative currency translation impact
of2.8% onrevenue and 2.9% on profit for the full year.
Based on the current mix of currency denominated
revenue and profit, a 1% movement in the US Dollar
relative to Sterling changes revenue by approximately
£10m and profit by approximately £2m.
Similarly, a 1% movement in the Euro changes revenue
byapproximately £3m and profit by approximately
£0.6m. If Sterling weakens against foreign currencies,
thishas a positive impact on revenue and profit as
overseas earnings are translated into Sterling.
Geographic revenue
2024 2023
£m
%
of total £m
%
of total
Change
£m
%
Change
% change
organic at
constant
currency
United States of America .  .  . . .
Mainland Europe .  .  . . .
United Kingdom .  .  . . .
Asia Pacific .  .  (.) (.) (.)
Africa, Near and Middle East .  .  . . .
Other countries .  .  . . (.)
,.  ,.  . . .
Currency effects
Weighted average rates
used in the income statement
Exchange rates used to
translate the Balance sheet
First half
2024
Full year
2023
Full year
2024
Year end
2023
Year end
US$ . . . . .
Euro . . . . .
Halma plc | Annual Report and Accounts 2024 45
Governance Report Financial Statements Other Information
Strategic Report
If currency rates for the financial year to the end of
March2025 were US Dollar 1.263/Euro 1.171 relative to
Sterling respectively, and assuming a constant mix of
currency results, driven by the strengthening of Sterling
versus the US Dollar we would expect approximately a
£7m negative revenue and a £2m negative profit impact
compared tothe financial year to the end of March 2024,
with approximately 60% of the impact in the second half
oftheyear.
Strong cash generation
Halma’s operations have continually been cash generative.
Cash generated from operations in the year was £472.2m
(2023:£325.2m) and adjusted operating cash flow, which
excludes operating cash adjusting items, and includes net
cash capital expenditure, was £435.1m (2023:£293.2m)
which represented a cash conversion of 103% (2023:78%)
of Adjusted
1
operating profit. This was significantly ahead
of our cash conversion KPI target of90%.
There was a working capital outflow of £19.2m,
comprising changes in inventory, receivables and
creditors(2023:outflow of £95.7m), which reflected
goodunderlying working capital control as well as
theongoing reduction of the strategic investment in
inventory made in the prior two financial years. Adjusted
1
operating cash flow is defined in note 3 to the Accounts.
A summary of the year’s cash flow is shown in the tables
below. The largest outflows in the year were in relation to
acquisitions, dividends and taxation paid. Acquisition of
businesses including cash and debt acquired and fees
were £263.4m (2023:£391.5m), reflecting another year
ofstrong M&A investment. Dividends totalling £78.2m
(2023:£73.3m) were paid to shareholders in the year.
Taxation paid increased to £87.2m (2023:£67.2m).
Operating cash flow summary
2024
£m
2023
£m
Operating profit . .
Acquisition items . .
Amortisation and impairment of acquisition-related acquired intangible assets . .
Adjusted operating profit . .
Depreciation and other amortisation . .
Working capital movements (.) (.)
Capital expenditure net of disposal proceeds (.) (.)
Additional payments to pension plans (.) (.)
Other adjustments . (.)
Adjusted operating cash flow . .
Cash conversion % % %
Non-operating cash flow and reconciliation to net debt
2024
£m
2023
£m
Adjusted operating cash flow . .
Tax paid (.) (.)
Acquisition of businesses including cash/debt acquired and fees (.) (.)
Purchase of equity investments (.) (.)
Disposal of businesses . –
Net finance costs and arrangement fees (excluding lease interest) (.) (.)
Net lease liabilities additions (.) (.)
Dividends paid (.) (.)
Own shares purchased (.) (.)
Adjustment for cash outflow on share awards not settled by own shares (.) (.)
Effects of foreign exchange . .
Movement in net debt (.) (.)
Opening net debt (.) (.)
Closing net debt (.) (.)
46 Halma plc | Annual Report and Accounts 2024
FINANCIAL REVIEW continued
Substantial funding capacity and liquidity;
financing cost well managed
The Group has access to competitively priced committed
debt finance, providing good liquidity. Group treasury
policy remains conservative and no speculative
transactions are undertaken.
We have a strong balance sheet and substantial available
liquidity. During the year, we exercised one of two
one-year extension options on our £550m syndicated
revolving credit facility. After the year end, inMay 2024,
we exercised the second one-year option, extending the
maturity on our revolving credit facility to May 2029.
Inaddition, shortly after the year end in April 2024, we
completed a new Private Placement issuance of£336m.
The issuance consists of US Dollar and Euro tranches.
TheUS Dollar tranche matures in April 2035 with an
amortisation profile giving it a nine and a half year
average life. The Euro tranche matures in April 2034,
withan amortisation profile giving it a seven and
threequarter year average life.
The financial covenants on these facilities are for leverage
(net debt/adjusted EBITDA) to not be more than three
and a half times and for adjusted interest cover to be not
less than four times. The Group continues to operate well
within its banking covenants with significant headroom
under each financial ratio.
At 31 March 2024, net debt was £653.2m, a combination
of £711.9m of debt, £83.7m of IFRS 16 lease liabilities and
£142.4m of cash held around the world to finance local
operations. Net debt at 31 March 2023 was £596.7m.
The gearing ratio at the year end (net debt to EBITDA)
was 1.35 times (2023:1.38 times). Net debt represented 7%
(2023:7%) of the Group’s year-end market capitalisation.
The net financing cost in the Income Statement of
£27.6m was higher than the prior year (2023:£16.9m).
Thisreflected a higher weighted average interest rate
inthe year (see the “Average debt and interest rates”
table on page48 for more information) and a higher
average level of indebtedness due to acquisitions. The
recent fixedrate Private Placement issuance positions
uswell ina period of relatively high interest rates, and
securesdebtfinancing sufficient to meet the Group’s
likely medium-term requirements. We would expect
thenetfinancing cost for the 2025 financial year to be
approximately £27m, if no further acquisitions were
tobemade. This reflects higher average net debt and a
forecast modestly lower weighted average interest rate
inthe year.
The net pension financing impact under IAS 19 is included
in the net financing costs. This year the Group recognised
a gain of £1.9m (2023:gain of £1.1m).
Group tax rate increased
The Group has major operating subsidiaries in a
numberof countries and the Group’s effective tax
rateisa blendof these national tax rates applied
tolocally generated profits.
The Group’s effective tax rate on Adjusted
1
profit
washigher than the prior year at 21.5% (2023:20.2%),
reflecting the increase in the UK corporation tax rate
to25% from 1 April 2023. Based on the latest forecast
mixofadjusted profits for the year to 31March2025,
wecurrently anticipate the Group effective tax rate to
behigher at approximately 22.5% of adjusted profits.
On 2 April 2019, the European Commission (EC) published
its final decision that the UK controlled Finance Company
Partial Exemption (FCPE) constituted State Aid.In common
with many other UK companies, Halma has benefited
from the FCPE and had appealed against theEuropean
Commission’s decision, as had the UK government. The
EU General Court delivered its decision on 8 June 2022.
The ruling was in favour of the European Commission
butin August 2022 the UK government and the taxpayer
appealed this decision. The appeals have now been heard
with the judgment expected to be released in the next
few months. The Group’s assessment is that it would
expect these appeals to be successful. Following receipt
of charging notices from HM Revenue &Customs (HMRC)
we made a payment in February 2021 of £13.9m to HMRC
in respect of tax, and in May2021 made a further payment
of approximately £0.8m in respect of interest. As the
amounts paid are expected tobe fully recovered, the
Group continues to recognise anon-current receivable
of£14.7m within non-current assets in the balance sheet.
Capital allocation and funding priorities
Halma aims to deliver high returns, measured by ROTIC
1
,
well in excess of our cost of capital. We invest to deliver
the future earnings growth and strong cash returns
whichenable us to achieve this aim on a sustainable
basis, and our capital allocation priorities remain
asfollows:
• Investment for organic growth: Organic growth is our
first priority and is driven by investment in our existing
businesses, including through capital expenditure,
innovation in digital growth and new products,
international expansion and the development of
our people.
• Value-enhancing acquisitions: We supplement organic
growth with acquisitions in current and adjacent
market niches, aligned with our purpose. This brings
new technology, intellectual property and talent into
the Group and expands our market reach, keeping
Halma well-positioned in growing markets over the
long term.
• Regular and increasing returns to shareholders: We
have maintained a progressive dividend policy for
over40 years and this is our preferred route for
delivering regular cash returns to shareholders without
impacting on our investment to grow our business.
Halma plc | Annual Report and Accounts 2024 47
Governance Report Financial Statements Other Information
Strategic Report
Continued investment for organic growth
All sectors continue to innovate and invest in new
products, with R&D spend determined by each individual
Halma company. R&D expenditure as a percentage of
revenue remained well above our KPI target of 4% at
5.3% (2023:5.5%). In absolute terms, R&D expenditure
increased by £4.4m to £107.2m (2023:£102.8m). Our
continued organic investment reflects our companies’
confidence in the growth prospects of their
respectivemarkets.
Under IFRS accounting rules we are required to capitalise
certain development projects and amortise the cost over
an appropriate period, which we determine as three
years. This year we capitalised £16.4m (2023:£15.8m),
impaired £3.0m (2023:£0.5m) and amortised £9.2m
(2023:£8.5m). The closing intangible asset carried on
theConsolidated Balance Sheet, after a £0.9m loss
(2023:£1.2m gain) relating to foreign exchange was
£51.8m (2023:£49.6m). All R&D projects requiring
capitalisation are subject to rigorous review and
approvalprocesses by the relevant sector board
andGroup financial control.
Capital expenditure on property, plant, equipment and
vehicles, computer software and other intangible assets
was £35.2m (2023:£30.1m). Expenditure was principally
onplant, equipment and vehicles. We anticipate capital
expenditure to increase to approximately £38m in the
coming year, reflecting investment in the expansion of
manufacturing facilities and automation to support
future growth.
Lease right-of-use asset additions and remeasurements
were £18.6m (2023:£32.2m). This included additions of
£3.2m as a result of acquisitions made in the year, and
the commencement of new leases and extensions or
renewals of existing leases.
Value-enhancing acquisitions and
disciplinedcapitalallocation
Acquisitions and disposals are a key component of our
Sustainable Growth Model, as they keep our portfolio
ofcompanies focused on markets which have strong
growthopportunities over the medium and long term.
In the year we made eight acquisitions at a cost of
£260.5m (net of cash acquired of £8.3m and including
acquisition costs and debt acquired, settled on
acquisition of £17.1m). In addition, we paid £2.9m in
contingent consideration for acquisitions made in prior
years, giving a total spend of £263.4m, with a further
estimated £20.1m of deferred contingent consideration
payable. Following the year end, we made one further
acquisition, for a maximum total consideration of
approximately £44m.
We actively manage our portfolio of global businesses
toensure that it continues to deliver strong growth and
returns and is aligned with our purpose of growing a
safer,cleaner, healthier future for everyone, every day.
Wemade one small disposal in the first half of the
year,of our 70% stake in FireMate Software Pty. Ltd.
(FireMate), for a total consideration of £3.2m, of which
£1.1m is deferred. A profit of £0.5m was recognised on
thedisposal. Following the year end, we made one
furtherdisposal, of Hydreka SAS, for approximately
£7m,net ofdisposal costs.
Details of the acquisitions and investments made are
given in the sector reviews on pages50 to 67 of the
Report and in notes25 and 14 to theseAccounts.
Net debt to EBITDA
2024
£m
2023
£m
Adjusted EBIT . .
Depreciation and amortisation (excluding acquired intangible assets) . .
EBITDA . .
Net debt to EBITDA . .
Average debt and interest rates
2024 2023
Average gross debt (£m) . .
Weighted average interest rate on gross debt .% .%
Average cash balances (£m) . .
Weighted average interest rate on cash .% .%
Average net debt (£m) . .
Weighted average interest rate on net debt .% .%
48 Halma plc | Annual Report and Accounts 2024
FINANCIAL REVIEW continued
Regular and increasing returns for shareholders
Adjusted
1
Earnings per Share increased by 7.9% to
82.40p(2023:76.34p) and included the adverse effects
ofhigher financing costs, an increased tax rate, and
currency movements. Statutory basic earnings per
shareincreased by 14.8% to 71.23p (2023:62.04p).
The Board is recommending a 7.0% increase in the
finaldividend to 13.20p per share (2023:12.34p per share),
which together with the 8.41p per share interim dividend
gives a total dividend per share of 21.61p (2023:20.20p),
up 7.0% in total.
Dividend cover (the ratio of Adjusted
1
profit after
taxtodividends paid and proposed) is 3.81 times
(2023:3.78times).
The final dividend for the financial year ended March
2024is subject to approval by shareholders at the Annual
General Meeting on 25 July 2024 and, if approved, will be
paid on 16 August 2024 to shareholders on the register at
12 July 2024.
We aim to increase dividends per share each year, while
maintaining a prudent level of dividend cover, and declare
approximately 35-40% of the anticipated total dividend
as an interim dividend. The Board’s determination of
theproposed final dividend increase this year took into
account the Group’s financial performance, economic
and geopolitical uncertainty, the Group’s continued
balance sheet strength and medium-term organic
constant currency growth.
Pensions update
The Group accounts for post-retirement benefits
inaccordance with IAS 19 Employee Benefits. The
Consolidated Balance Sheet reflects the net accounting
surplus on our pension plans as at 31 March 2024 based
on the market value of assets at that date and the
valuation of liabilities using discount rates derived from
year end AA corporate bond yields. Lane Clark & Peacock
LLP assist the Company in setting assumptions, and
thevaluation work is performed by Mercer Limited.
We closed the two UK defined benefit (DB) plans to new
members in 2002. In December 2014 we ceased future
accrual within these plans with future pension benefits
earned within the Group’s Defined Contribution (DC)
pension arrangements. These two plans represent over
95% of consolidated plan liabilities.
On an IAS 19 basis, before deferred taxes, the Group’s
DBplans at 31 March 2024 had a net surplus of £30.9m
(2023:£37.9m surplus). The value of plan assets decreased
to £278.5m (2023:£284.7m). Plan liabilities increased to
£247.6m (2023:£246.8m). The long-term inflation rate
decreased from 3.30% to 3.15%, with the discount rate
remaining at 4.75%. Mortality assumptions have been
aligned to updated actuarial information.
The plans’ actuarial valuation reviews, rather than
theaccounting basis, are used to evaluate the level of
anycash payments into the plan. Following a triennial
actuarial valuation of the two UK pension plans in the
2022 financial year, the cash contributions were agreed
with the trustees aimed at eliminating the deficit.
During the 2023 financial year the aggregate payments
made since the last triennial actuarial valuation, coupled
with the performance of the plan assets and movement
in the liabilities, resulted in the Halma Group Pension Plan
being funded over the trustees’ secondary funding target
and close to the expected current valuation on a solvency
basis. As a result, it was agreed with the trustees of the
Halma Group Pension Plan that contributions will be
suspended until 1 April 2025, when they will either fall
dueor be superseded by cash contributions agreed
withthe trustees in respect of the latest triennial
actuarial valuation. All contributions due agreed at
thelast triennial valuation of the Apollo Pension and
LifeAssurance Plan have been paid and any further
contributions will be agreed following the outcome
ofthelatest triennial valuation.
We expect contributions to the schemes in the 2025
financial year to be £0.8m. In the event thatthese
payments result in a surplus on winding upofthe
schemes, the Group has an unconditional right to
arefund under the plan rules.
1 See alternative performance measures in note 3 to the Accounts
Halma plc | Annual Report and Accounts 2024 49
Governance Report Financial Statements Other Information
Strategic Report
Naïm Harraounine is the Environment Advisor for
GCC,part of the BTP group, aconstruction company
based in France.
He is responsible for the safety of Europe’s biggest
wooden campus, the Arboretum, in Paris, while it is
underconstruction.
At 126,000m
2
, the Arboretum is the same size as 18
football pitches. With seven separate buildings, each
oneseven stories high, it is a huge, complex site to
protect. And it is made even more vulnerable due
toitsmain building material – wood.
The dangers of fire
All building sites are dangerous places to work. The risk
ofinjury, or worse, is a constant threat. One danger
specific to these sites is the threat of fire. Dust and
sparksgenerated by cutting material within the site,
looseelectric cables, and overheating power tools
allcontribute tothe risk of fire. The Arboretum is
particularlyexposed tothis risk, as wood dust
fromconstruction lies on everysurface.
It is a sad fact that over 200,000 people a year globally
die from fires in buildings, and many of those deaths
could be prevented by fire protection systems.
One evening in 2023, after the site had closed and
everyone had left for the weekend, Naïm got an alert
from the fire detection system at the Arboretum, warning
him that something was wrong.
He quickly alerted firefighters who arrived on site to
discover that a fire had broken out in a builder’s bin within
one of the buildings, close to a pallet full of flammable
building material. Thankfully, they were on site so fast
that they were able to put the fire out before it spread.
Without the fire detection technology and the system to
alert him, the outcome could have been catastrophic for
the whole wooden campus and its neighbouring area.
Improving fire safety
in construction
Orama’s life‑saving technology
GCC, the company Naïm works for, operates on
over300building projectsevery year across France
andSwitzerland. Each building has its own unique
requirements, but one thing iscommon across all of
them– a need to protect worker safety and the safety
ofthe building itself while it is underconstruction.
To do this Naïm works with Orama, a Halma company.
Orama specialises in wireless fire protection for buildings
under construction.
Orama’s wireless system has a number of advantages.
Itis quick and easy to install, it provides better coverage
as its sensors can be positioned in hard to reach places,
and it can be reused after construction has finished,
helping customers with their own sustainability goals.
It also has an additional advantage, that was crucial
inhelping to protect the Arboretum. It combines its
robust fire detection hardware with a software platform
that can immediately alert the right people remotely,
whenever a potential fire is detected.
Naïm chose Orama’s market‑leading wireless solution
because it gives him peace of mind. It’s easy to install,
itprovides wide and reliable coverage across his complex
site, and most importantly, it ensures that the workers
and the buildings they are working in are kept safe
fromfire.
The risk of fire on building sites is real.
Orama’s technology gives me peace
ofmind that my workers are being
protected at all times.
Our fire companies
In addition to Orama, Halma has
several other companies that
address the global problem of
firesafety.
50 Halma plc | Annual Report and Accounts 2024
SAFETY – Case study
Orama’s wireless fire detection
technology saves lives
Watch the film
Naïm Harraounine
Environment Advisor, GCC
An Orama customer
Halma plc | Annual Report and Accounts 2024 51
Governance Report Financial Statements Other Information
Strategic Report
Our markets
Fire Safety
Solutions that detect, mitigate and suppress the
effectsof fires, protecting people and assets.
Public Safety
Technologies that safeguard the public by preventing
andprotecting people against a variety of risks.
Worker Safety
Solutions that protect people in hazardous
work environments.
Infrastructure & Asset Safety
Technologies that ensure the safe management
and operation of critical assets.
Split of sector revenue
*
Fire Safety
Public Safety
Worker Safety
Infrastructure & Asset Safety
Safety
Safety Sector companies protect
people,assets and infrastructure
incommercial, industrial and public
spaces.Our innovative technologies
playa critical role in reducing safety
risksin hazardous situations, increasing
efficiency and helping create a safe and
more sustainable future for everyone.
Summary
• Strong revenue and profit growth
• Healthy contribution from acquisitions
• Revenue growth in all geographic regions
• Substantial increase in Return on Sales
1
Revenue
*
+10.5%
£823.8m
Adjusted profit
1
+25.6%
£191.6m
Sector % of Group turnover
41%
Safety
Environmental & Analysis
Healthcare
* includes inter‑segmental sales
52 Halma plc | Annual Report and Accounts 2024
BUSINESS REVIEW
What the sector does
Safety Sector companies protect people, assets and
infrastructure. Our technologies are used in public
andcommercial spaces, industrial and manufacturing
environments, and contribute to creating a more
sustainable future.
Our companies develop and provide solutions that keep
people safe and assets secure in hazardous situations.
Weoperate across four subsectors:
Fire Safety – covering fire detection products like smoke,
heat and CO
2
detectors, fire systems, and specialised fire
suppression solutions.
Public Safety – sensors, radars and emergency
communication systems that are used in public
spaceslike elevators, carparks and highways.
Worker Safety – solutions that manage access to
heavymachinery in potentially hazardous industrial
andcommercial environments, keeping workers safe.
Infrastructure & Asset Safety – our technologies ensure
the safe management and operation of critical assets,
such as pressure valves, leak detection and electrical
testing systems.
The Safety Sector’s products and solutions are used
invarious end markets including construction, energy,
utilities, transportation, manufacturing and logistics.
They are used in a broad range of applications, from
commercial buildings like retail outlets, offices and
healthcare facilities, to industrial and process
manufacturing environments, and in aerospace,
railandroad transportation.
The sector’s long‑term growth drivers
The long‑term growth of the sector is driven by
increasingsafety and environmental regulation, and by
its customers’ focus on reducing safety risks. The sector’s
growth is further underpinned by long‑term global trends,
with the most relevant being the changing climate,
technological advances and urbanisation.
The increasingly urgent need to address climate change
continues to drive growth opportunities for the sector.
Our companies benefit from increasing regulations, such
as those aimed at minimising energy loss in commercial
and industrial buildings.
Our companies are also supporting the drive towards
renewable and cleaner energy sources and uses, including
through fire suppression in renewable energy facilities,
electrical testing of electric vehicles (EVs) and mass
transit systems, and increasing the efficiency of
industrialprocesses.
Halma plc | Annual Report and Accounts 2024 53
Governance Report Financial Statements Other Information
Strategic Report
Technological advancements and the increasing
deployment of automated solutions and intelligent
products in industrial environments are providing exciting
market opportunities for our companies. Our companies’
connected products and solutions are well placed to
ensure continued worker safety in automated or hybrid
working environments where people and machines
interact in close proximity.
We also see long‑term opportunities from the continued
urbanisation of populations. Significant global infrastructure
investment is increasing the need todrive safety and
efficiency in cities, which results in growth in areas
suchas emergency communications.
Sector performance
The Safety Sector delivered a strong performance,
withgood organic constant currency
1
growth, a healthy
contribution from current and prior year acquisitions,
anda strong recovery in Return on Sales
1
after a
reduction in the prior financial year because of
globalsupply chain challenges.
Revenue of £823.8m (2023:£745.6m) was 10.5% higher
than in the prior year. Revenue growth on an organic
constant currency
1
basis was 6.2%, which was driven
bygood levels of growth across the majority of our
companies. This growth was supported by a healthy
orderbook, and a more normal benefit from pricing,
following an exceptionally high contribution from price
inthe prior year.
Revenue growth in the first and second half was 12.7%
and 8.4% respectively on a reported basis, with the strong
first half performance benefiting from a low comparator
of slower growth in the first half of the prior year.
We saw both reported and organic constant currency
1
revenue growth in three of our four subsectors, with the
strongest growth in Infrastructure & Asset Safety, which
benefited from the acquisition of Weetech, and also in
our Worker Safety subsector, driven by strong execution
by our companies and the acquisition of Lazer Safe.
Public Safety saw a mixed performance, with a sluggish
first half driven by portfolio management within the
subsector and the end of a significant road safety
contract in the UK.
There was growth across all of the sector’s geographies
on both a reported and organic constant currency
1
basis,
with double‑digit revenue growth in Mainland Europe,
Asia Pacific and Africa and the Middle East regions.
Chinawas up 26.7% on a reported basis and 15.5% on
anorganic constant currency
1
basis, showing a steady
recovery following the post pandemic slowdown. UK
growth was lower given the end of a significant road
safety contract.
Profit¹ grew by 25.6% to £191.6m (2023:£152.5m) on a
reported basis and increased by 15.5% on an organic
constant currency
1
basis. Profit
1
margin increased
substantially to 23.3% (2023: 20.5%), ahead of expectations.
This reflected the impact of annualised price increases
and relatively stable materials and labour markets
compared to previous years, further supported by
portfolio improvements.
Profit¹ growth in the first half was 18.7% and 32.4% in the
second half, with the second half seeing improvements
following the completion of the implementation of a
significant ERP upgrade in one of our biggest companies,
as well as continued benefits from a strong order book.
Investment in future growth continued, including through
R&D spend and acquisitions. R&D expenditure of £45.2m
remained at a good level, representing 5.5% of revenue
(2023:£41.0m; 5.5% of revenue).
The sector made one acquisition in the year, Lazer
SafePty. Ltd., an Australia‑based designer and
manufacturer of safety solutions for industrial press
brakeapplications, for a maximum total consideration
of£23m. The acquisitions made in the prior year
areperforming to expectations and the impact of
acquisitions was a positive effect of 6.8% on revenue
and12.5% on profit¹. The disposal of FireMate in the
firsthalf of the year had a negative effect of 0.2%
onrevenueand a positive effect of 0.3% on profit¹.
Currencyexchange movements had a negative effect
of2.3% on revenue and 2.7% on profit¹.
Revenue by destination
£824m
USA 27%
Mainland Europe 29%
UK 19%
Asia Pacific 16%
Africa, Near and Middle East 6%
Other countries 3%
1 See alternative performance measures in note 3 to the Accounts. For sector
profit before allocation of adjustments, see note 1 to the Accounts.
54 Halma plc | Annual Report and Accounts 2024
BUSINESS REVIEW continued
According to recent estimates from the International
Labour Organization (ILO), the number of workers that
die from work‑related accidents and illnesses annually
has risen to nearly 3 million. This marks an increase of
over 5% from 2015. This sobering statistic highlights
theongoing need to ensure the wellbeing and safety
ofworkers worldwide.
Growth in industries like automotive, construction and
energy generation is creating an increased demand
forsheet metal. Heavy machines called press brake
machines are used to bend the metal into shape, with
workers operating close to dangerous moving parts.
In August 2023, Halma acquired Lazer Safe, a
company based in Perth, Australia. Lazer Safe
manufactures safety technology designed to protect
workers when operating machinery used to shape
sheet metal. Press brakes can lead to serious injuries,
and installing safety technology is critical to protect
these front‑line workers. Lazer Safe’s technology helps
the operator do their job safely and effectively.
As more countries and markets adopt safety
regulations for press brake machinery, Lazer Safe
iswellpositioned for future growth. The company
works closely with its customers and the regulatory
boards tohelp more manufacturers meet new
safetyregulations while at the same time enhancing
productivity. Lazer Safe is committed to contributing
its expertise to the improvement of safety integrity
levels as defined by the International Electrotechnical
Commission (IEC). Itsproducts are “SIL 3” certified by
the International Electrotechnical Commission, one of
the higheststandards.
The acquisition of Lazer Safe further strengthens
Halma’s position in manufacturing safety. Increasing
regulation for employee safety and the need for
greater efficiency drives the long‑term growth of the
industrial safety business and will help to provide a
safer future for workers globally as demand for sheet
metal continues to grow.
I am pleased to welcome Lazer
Safeto Halma. Its purpose is
stronglyaligned with Halma’s,
andLazer Safe’s technologies are
complementary to other businesses
in our Safety Sector portfolio. As
demand continues to increase for
press brake machines, I look forward
working with the Lazer Safe team
toimprove worker safety worldwide.
Thorsten Mueller
Divisional Chief Executive,
Safety Sector and Chair of Lazer Safe
Acquiring adjacent worker safety technology
Case study
Halma plc | Annual Report and Accounts 2024 55
Governance Report Financial Statements Other Information
Strategic Report
Digital map of Oak Park water network
Watch the film
Michael Bills
Water & Sewer Superintendent,
Village of Oak Park
A HWM customer
56 Halma plc | Annual Report and Accounts 2024
ENVIRONMENTAL & ANALYSIS – Case study
Michael Bills is the Water & Sewer Superintendent forthe
Village of Oak Park in Chicago, USA.
As a thriving Chicago suburb, Oak Park is famous for its
historic architecture such as Frank Lloyd Wright’s Unity
Temple. It also has one of the oldest water networks with
some components dating back to the late 19th Century.
Michael is responsible for maintaining its ageing 105-mile
network of pipes to ensure that 1.7 billion gallons of safe,
drinkable water reaches 54,000 residents annually.
Oak Park has a Lake Michigan water allocation and
purchases treated water from the city of Chicago.
However, the village was losing around 20% of its water
through leaks each year. This works out at roughly
350 million gallons or the equivalent to 530 Olympic-sized
swimming pools, enough to provide drinking water for a
neighbourhood 10 times the population of Oak Park.
As a result, Mike and his team set themselves the target
of reducing water loss to 10% to meet the Illinois
Department of Natural Resources regulation for Lake
Michigan water users. However, they faced a number
ofchallenges. The network was already old. The region
suffered from temperature extremes which put additional
stress on the pipes, leading them to break more easily.
The local porous soil prevented leaks from surfacing, so
they were difficult to spot. Something needed to be done.
The global water crisis
Globally, more than 8.5 trillion gallons of water is lost
each day due to leakage. Outdated infrastructure is one
of the main reasons for this. Nearly a third of the world’s
lost water occurs in the US, where undetected leaks in
pipes lead to the daily loss of 7 billion gallons of treated
water. This costs the nation’s water industry and its
consumers billions of dollars a year. However, it also has
adetrimental impact on people and the environment.
Preventing
water leaks
It can mean shortages for drinking, farming, and industry
as well as leading to higher costs for everyone. At the
same time, less water in rivers and lakes can harm
animals and plants, making it harder for them to find
what they need to survive.
Listening for leaks
As one strategy to combat water loss through leakage,
Oak Park started a pilot project with HWM, a Halma
company that makes environmental monitoring
technologies that can listen for leaks in ageing networks.
Its Fluid Conservation Systems (FCS) technology uses
sensors, called loggers, that were placed along a third of
the Oak Park water network, attached to its pipes with
magnets. These loggers pick up the smallest sounds
made by water leaks. As soon as the tell-tale noise of a
water leak – similar to the sound of a flute – is detected,
the sensor converts it into a digital signal and alerts
thesystem.
From there, Mike and his team can access a digital map
of all possible water leaks on a network, helping them
toprioritise what needs to be fixed rather than spending
time sending engineers to every alert, ensuring that
thelimited resources are deployed most effectively.
The successful pilot programme helped Oak Park identify
19 leaks that had not surfaced, making them otherwise
undetectable. The Village of Oak Park is now in the
process of implementing acoustic loggers throughout
itswater network.
HWM’s technology checks the pipe
network at night when the system
isquiet, allowing us to respond to
aleak as soon as it is detected.
Our water companies
In addition to HWM, Halma
hasanumber of companies
thatspecialise in tackling water
conservation and pollution.
Other InformationFinancial StatementsGovernance Report
Halma plc | Annual Report and Accounts 2024 57
Strategic Report
Our markets
Optical Analysis
World-class optical, optoelectronic and spectral
imagingsystems that use light in a wide variety
ofindustrial, digital and research applications.
Water Analysis and Treatment
Systems that assist communities and businesses
aroundthe world to sustainably improve water
qualityand availability.
Environmental Monitoring
Technologies that detect hazardous gases,
analyseairquality, gases and water to monitor
environmentalquality and ensure that resource
infrastructure operates efficiently.
Split of sector revenue
*
Optical Analysis
Water Analysis and Treatment
Environmental Monitoring
Environmental
& Analysis
Our Environmental & Analysis Sector
companies provide technologies that
monitor the environment, ensure the
quality and availability of life-critical
resources, and are used in materials
analysis and optoelectronic applications.
Summary
• Very strong revenue growth
• Exceptional growth in photonics business
• Strong growth in USA and UK
• Four acquisitions completed in the year
Revenue
*
+19.3%
£658.4m
Adjusted profit
1
+10.2%
£147.9m
Sector % of Group turnover
32%
Safety
Environmental & Analysis
Healthcare
* includes inter-segmental sales
Kenneth Monterubio
Deputy Water & Sewer Superintendent,
Village of Oak Park
58 Halma plc | Annual Report and Accounts 2024
BUSINESS REVIEW continued
What the sector does
Our Environmental & Analysis Sector companies provide
high-technology solutions that monitor the environment,
improve the quality and availability of life-critical natural
resources such as air, water and food, and analyse
materials and support digital and data capabilities in a
wide range of applications. Their valuable solutions are
technically differentiated by high levels of application
knowledge, often assisted by digital, optical and
optoelectronic expertise, and supported by high levels
ofcustomer responsiveness. They serve a wide variety
ofend markets and customers. These markets include:
water and waste water management and treatment,
including for water utilities; gas analysis and detection;
food, beverage, medical and bio-medical; digital, data
and communications; aquaculture; research and science;
inspection and maintenance of infrastructure in water,
for example, dams and offshore wind turbines; and a
variety of industrial markets.
The sector’s long‑term growth drivers
The sector’s long-term growth is driven by rising demand
for life-critical resources and increasing challenges in the
management of waste and pollution, given worldwide
population growth and rising standards of living. In
addition, the increasingly urgent need to address climate
change is creating new opportunities in many of the
sector’s markets.
In turn, these trends are resulting in new policy initiatives
and environmental regulations to manage these impacts,
including strategies to meet Net Zero commitments and
plans to increase adaptation and resilience. They are also
driving new regulatory initiatives to preserve life-critical
resources and prevent environmental degradation.
The sector’s growth is further underpinned by our
abilityto design, develop and manufacture innovative,
high-technology detection and analysis solutions which
help our customers address these challenges. We see
growing long-term opportunities for our companies to
help their customers, for example, to prevent emissions,
detect leaks and analyse air and water quality, and to
support new technologies to address issues such as
renewable energy and storage, sustainable food
systemsand mobility in cities.
Sector performance
The Environmental & Analysis Sector delivered strong
revenue growth. Revenue of £658.4m (2023:£552.1m)
was19.3% higher than in the prior year, and up 20.8%
onan organic constant currency basis.
Sector growth was driven primarily by exceptional growth
in the photonics business within the Optical Analysis
subsector, particularly in the second half, which benefited
from accelerated demand for technologies that support
the building of digital and data capabilities. This was
partly offset by a challenging year for the spectroscopy
business within Optical Analysis which saw a decline in
revenue, reflecting destocking by research, science and
bio-pharma OEM customers, and weak semi-conductor
and personal electronics end markets.
Halma plc | Annual Report and Accounts 2024 59
Governance Report Financial Statements Other Information
Strategic Report
In other subsectors, organic constant currency
1
growth
was led by Water Analysis and Treatment, with strong
growth in water infrastructure where ongoing investment
in both the clean and wastewater segments by UK
utilities drove increasing demand. On a reported basis,
the subsector also benefited from the acquisitions of
Visual Imaging Resources LLC (VIR) to support Minicam’s
expansion into the US market and of Sewertronics,
whichcapitalises on the growing opportunity in the
rehabilitation of wastewater infrastructure. These trends
offset lower order intake for those of our water testing
and disinfection companies, which have a higher
relianceupon discretionary endmarkets.
The Environmental Monitoring subsector delivered a
mixed performance with strong growth from newly
acquired Deep Trekker and moderate growth within the
established Gas Detection companies, offset by lower
order intake in the emerging environmental monitoring
market in the US, due to delayed large capital projects,
and lower demand in the flow and pressure control
market in India and China, following last year’s
substantial growth.
By region, the USA accounts for more than half of the
sector’s revenue (59%) and reported the highest organic
constant currency
1
growth at 43%. Performance was
dominated by the exceptional growth in photonics and
was also supported by international expansion by our
water infrastructure companies within Water Analysis
andTreatment. Organic constant currency
1
revenue
growth was also strong at 14% in the UK, with continued
growth in UK water project spend and strong demand in
gas detection. Mainland Europe reported good growth
onan organic constant currency
1
basis at 5%, with strong
demand in gas detection. Asia Pacific declined by 19% on
an organic constant currency
1
basis, reflecting the lower
demand within the flow and pressure control market in
India andChina.
Profit
1
grew by 10.2% to £147.9m (2023:£134.2m),
orby10.9% on an organic constant currency
1
basis.
Profit
1
margin decreased by 180 basis points to 22.5%
(2023:24.3%) but improved to 23.7% in the second half.
The year-on-year change primarily reflected a mix effect
from the revenue decline in the higher margin
spectroscopy businesses, the impact of lower order intake
in the watertesting & disinfection business, combined
with one-off costs, mainly in the first half, associated
with a challenging Enterprise Resource Planning (ERP)
system implementation and business restructuring. Gross
margin was lower due to mix, given exceptional growth in
the lower gross margin photonics business. R&D
expenditure of £27.4m represented 4.2% of revenue
(2023:£28.3m; 5.2% of revenue) reflecting changes in
revenue mix.
The sector made four acquisitions: there were two
acquisitions at the start of the year for an aggregate
maximum total consideration of £55m: Sewertronics
Sp.Z.o.o., which designs and manufactures equipment
and consumables for wastewater pipeline rehabilitation,
waspurchased as a standalone company in May 2023;
and VIR, which distributes and services wastewater
inspectionequipment in North America, was purchased
in April 2023 as a bolt-on to Minicam. In the second
half,there were two further bolt-on acquisitions: Alpha
Instrumatics, acquired in October 2023 for a maximum
total consideration of £33m, and ZED acquired in
December 2023. Alpha designs and manufactures devices
for high-precision measurement of trace moisture in
gases, used in growth markets and industries aligned to
the energy transition, extending Alicat’s product offering.
ZED designs and manufactures technically advanced
ballasts and sensors for UV sterilisation, which will enable
Nuvonic to offer an optimised and complete UV solution,
further increasing opportunities in their existing and
target endmarkets.
The impact of acquisitions during the year contributed
growth of 3.1% to revenue, and 2.6% to profit
1
. Currency
exchange movements had a negative effect of 3.8%
onrevenue and 3.3% on profit
1
.
Revenue by destination
£658m
USA 59%
Mainland Europe 11%
UK 14%
Asia Pacific 11%
Africa, Near and Middle East 3%
Other countries 2%
1 See alternative performance measures in note 3 to the Accounts. For sector
profit before allocation of adjustments, see note 1 to the Accounts.
60 Halma plc | Annual Report and Accounts 2024
BUSINESS REVIEW continued
Today’s wastewater infrastructure is no longer fit for
purpose. As an example, two-thirds of the United
States’ 800,000 miles of sewers are over 60 years old
and struggling to keep up with demand. A growing
population, increasing urbanisation and climate
change are putting additional pressure on an
alreadyageing network, causing sewage overflows.
The US government recently earmarked $50bn to
improve the nation’s drinking water, wastewater,
andstormwater infrastructure – the largest investment
in water that the federal government hasever made.
As the nation invests billions in the modernisation of its
wastewater systems, it will be critical for municipalities
to look at technology that can predict leaks, patrol
pipes and provide real-time insight into managing
water infrastructure.
Already successful in the wastewater inspection
market, Minicam Group has been growing fast for
several years. Its technology keeps sewers free from
blockages and renovates existing pipes to extend their
use. Minicam’s ambition is to become a global leader
ininspection and maintenance solutions.
To help accelerate this growth, Halma supported
Minicam to acquire Visual Imaging Resources (VIR)
inApril 2023 to form Minicam Inc. Based in Detroit,
United States, VIR will help extend Minicam Group’s
presence in the fast-growing North America market.
The acquisition will enable the company to serve its
customers in the region more closely, supporting local
municipalities to keep their wastewater networks
running smoothly by removing blockages and repairing
aging pipes without the need to dig a trench.
As the demands on our water networks continue to
grow, so is the need to repair ageing wastewater
infrastructure to reduce water leakage and sewage
overflows. Water infrastructure is a strategic priority
forour Environmental & Analysis Sector. The addition
ofVIR to Minicam Group adds exciting market access
and expands Halma’s growth opportunities in a
fast-growing global niche.
The acquisition of Visual Imaging
Resources will help Minicam Group
toaddress pollution and waste in the
United States with technology that
assesses the condition of pipes and
spots blockages or damage before
they become harmful overflow. I am
pleased to have welcomed VIR as
animportant addition to the
MinicamGroup.
Rob Lewis
Divisional Chief Executive, Environmental & Analysis
Sector and Chair of Minicam Group
Expanding into the US wastewater market
Case study
Halma plc | Annual Report and Accounts 2024 61
Governance Report Financial Statements Other Information
Strategic Report
Susan lives in small village with her husband near
theAppenzell Alps, Switzerland. She is a mother and
grandmother to a large family, and enjoys an active
lifestyle, going for walks with her husband in the
beautifulSwiss countryside.
A year ago, Susan noticed the colours of the flowers
shesaw on her walks were looking less clear than usual.
As time went on, the details got less and less distinct
andher sight started to become blurry. Concerned, she
went to a local eye clinic. The ophthalmologist examined
her eyes and discovered that she had cataracts.
Losing my sight not only affected
myquality of life but also affected
everyone around me.
Cataracts are one of the leading causes of blindness.
Thecondition affects 65 million people worldwide,
andaccounts for half of the world’s 40 million people
whoare blind.
Cataracts occur when the lens of the eye develops cloudy
patches. People with cataracts see the world as if they
are looking through a frosted window. This can make
daily tasks difficult, reducing mobility and independence,
and severely impacting a person’s quality of life.
Although cataracts can happen due to injury, the
maincause is age. With the World Health Organization
estimating that the number of people over the age
of60will nearly double from 12% to 22% by 2050,
cataract cases are expected to rise significantly.
Helping patients
seeagain
Medicel, a Halma company based in Switzerland, is
oneof the global market leaders in cataract surgery
technology. Its injectors enable every fifth cataract
surgery worldwide, helping 6 million new lenses to be
implanted each year, saving the eyesight of millions.
Cataracts can be easily treated if detected early. Once
Susan was diagnosed, she was booked in for cataract
surgery at a local eye clinic, under the supervision of
anophthalmologist, Dr Florian Sutter. Thetreatment
involved replacing the cloudy lens with anartificial lens
using one of Medicel’s specialist lens injectors. The
innovative design ofMedicel’s injectors means that
experienced eye surgeons like Dr Sutter can perform
thewhole treatment in less than 10 minutes.
Thanks to the surgery, Susan’s quality of life has been
transformed. Her vision went from 20% before the
surgery to 100% after. She can now do the things she
hasalways loved, without the need for extra support.
Halma has a number of companies who are specialists
ineye care and help address the global problem of
preventable blindness. Each company focuses on a
specific niche within this global market to care for
people’s eyes. Eye surgeons seek out Halma companies’
technologies to help them care for people’s eyes and,
inSusan’s case, enable them to see clearly again.
The surgery has transformed my life.
Now I can be independent again
andenjoy life to the full.
Eye care companies
In addition to Medicel, Halma has
a number of eye care companies
that make medical devices to
helpimprove people’s sight.
62 Halma plc | Annual Report and Accounts 2024
HEALTHCARE – Case study
Medicel’s innovative lens injector helps eye surgeons perform
cataract surgeries
Watch the film
Susan
Appenzell Alps, Switzerland
Halma plc | Annual Report and Accounts 2024 63
Governance Report Financial Statements Other Information
Strategic Report
Our markets
Healthcare Assessment & Analytics
Components, devices and systems that provide
valuableinformation and analytics so providers can
better understand patient health and make decisions
across thecontinuum of care.
Life Sciences
Technologies and solutions to enable in‑vitro
diagnosticsystems and accelerate life‑science
discoveriesand development.
Therapeutic Solutions
Technologies, materials and solutions that enable
treatment across key clinical specialties.
Split of sector revenue
*
Healthcare Assessment & Analytics
Life Sciences
Therapeutic Solutions
Healthcare
Our Healthcare companies’ technologies
and digital solutions help providers improve
the care they deliver and enhance the
quality of patients’ lives. They contribute
tothe discovery and development of new
cures, the diagnosis and treatment of
patient conditions, and the provision of
improved healthcare through data analysis.
Summary
• Subdued performance in Healthcare Assessment
& Analytics and weakness in Life Sciences
• Strong growth in Therapeutic Solutions
• Continued investment in new
product development
• Three acquisitions completed in the year
Revenue
*
(0.6)%
£552.9m
Adjusted profit
2
(3.5)%
£125.6m
Sector % of Group turnover
27%
Safety
Environmental & Analysis
Healthcare
* includes inter‑segmental sales
64 Halma plc | Annual Report and Accounts 2024
BUSINESS REVIEW continued
What the sector does
Our Healthcare Sector companies’ advanced technologies
and digital solutions help providers improve the care they
deliver and enhance the quality of patients’ lives. Their
products and technologies are components, devices
andsystems critical to delivering the required standards
of care for patients. They operate in high value niches,
whichinclude: eye health, supporting both diagnostics
and surgical treatment; vital signs monitoring, including
bloodpressure, cardiac and respiration; surgical instruments
to assist with interventional radiology andoncology;
retraction systems for surgical procedures; and synthetic
bone grafts for clinical applications.
The sector has an increasing footprint in women’s health
with artificial intelligence (AI) based clinical decision support
tools for childbirth and sample collection devicesfor
cervical cancer screening.
Sector companies also supply critical fluidic components
for diagnostic and analytical instruments, and sensor
technologies to track healthcare facility assets, increase
efficiency, and support patient and staff safety.
The sector operates across a diverse range of healthcare
segments and settings, including ophthalmology, dentistry,
orthopaedics, perinatal care and women’s health, surgical
intervention, diagnostics and analytics. Its customers
range from individual healthcare professionals to large
healthcare systems and medical device original
equipment manufacturers (OEMs).
The sector’s long‑term growth drivers
The sector’s long‑term growth is supported by demographic
trends, technological innovation, improvements in
standards of care, health equity andincreased efficiency.
Most countries in the world are experiencing growth in
both the size of population and the proportion of older
people. By 2050, the world’s population of people aged
60years and older is estimated to double to 2.1 billion.
This is expected to lead to an increased prevalence of
chronic conditions, driving demand for diagnostics and
treatment. These factors are key growth drivers for our
Therapeutic Solutions businesses, given their presence in
the respiratory therapy, bone replacement, interventional
radiology, oncology and surgery markets.
Technological innovations drive growth, by increasing
thecapabilities of healthcare professionals to prevent,
diagnose and treat conditions, including remotely through
telemedicine. They contribute to improving standards of
care and increasing efficiency by enabling better, earlier,
faster and more cost‑effective diagnosis and treatment
of patients. This in turn leverages the skills and availability
of increasingly scarce healthcare staff. In addition, rising
patient demand and workforce shortages have created
substantial backlogs of patients, which are likely to persist
for many years, driving an increasing need for efficiency.
These factors are strong growth drivers for our Healthcare
Assessment & Analytics businesses.
Marina Safradin
Contact Lens Supervisor, Volk, performing surgical
contact lens inspection under a slit lamp
Halma plc | Annual Report and Accounts 2024 65
Governance Report Financial Statements Other Information
Strategic Report
Our businesses contribute to reducing healthcare
inequity, in particular to helping close the women’s
healthgap. Women spend 25% more time in ill health
compared to men due to lower effectiveness of
treatments for women, worse care delivery and lack
ofdata
1
. Our company PeriGen provides AI‑powered
algorithms to prevent complications during childbirth,
whilst Rovers, arecent acquisition, provides sample
collection devices for cervical cancer screening.
Sector performance
The Healthcare Sector delivered a subdued
performance,driven by weak trends in Healthcare
Assessment & Analytics and Life Sciences, partly
offsetbystrong growth in Therapeutic Solutions.
Revenue of £552.9m (2023:£556.4m) was 0.6% lower
thanin the prior year, and 2.6% lower on an organic
constant currency
2
basis.
Whilst patient caseloads and backlogs remain high,
theunwinding of high inventories by OEM customers,
andbudgetary constraints in healthcare providers
generated headwinds throughout the year in our
Healthcare Assessment & Analytics and Life
Sciencessubsectors.
Most of our companies in Healthcare Assessment &
Analytics experienced soft demand, with vital signs
monitoring and ophthalmology assessment impacted by
a combination of destocking and budgetary headwinds.
Communication & software systems proved resilient,
asthe need for greater efficiency in healthcare facilities
upheld demand. Perinatal care performed strongly as
improved outcomes for mother and baby remain a
societal priority.
Our smaller Life Sciences subsector experienced a
significant slowdown as OEM customers delayed
orderstowind down their over‑stocked positions.
Our Therapeutic Solutions subsector continued to
benefitfrom strong growth in cataract and glaucoma
procedures, and solid growth in interventional radiology
and bone grafts. Demand in respiratory remained
suppressed as the segment normalises after the COVID
peak. Growth on a reported basis was supported by
theacquisitions of AprioMed (a bolt‑on to IZI Medical
Products) and the TeDan group of companies.
By geography, Mainland Europe reported double‑digit
revenue growth on a reported and organic constant
currency
2
basis. This was driven in large part by strength
in acute ophthalmology. The USA and UK showed single
digit organic constant currency
2
decline. Performance
inAsia Pacific reflected ongoing challenges in China,
withthe move to volume based procurement, and
economic headwinds.
Profit
2
of £125.6m was 3.5% lower than the prior year
(2023:£130.1m), or 6.7% lower on an organic constant
currency
2
basis.
Profit
2
margin decreased by 70 basis points to
22.7%(2023:23.4%). This reflected the impact from
theweakness in volumes, partially offset by good
management of pricing and cost discipline across
thesector. R&D expenditure increased to £34.4m,
representing 6.2% ofrevenue (2023:£33.1m; 5.9% of
revenue), reflecting continued high levels of investment
innew productdevelopment.
The sector made three acquisitions during the year.
AprioMed AB, a company based in Sweden, was acquired
in October 2023 for a maximum total consideration of
£10m. AprioMed designs, manufactures and distributes
medical devices used for bone biopsies. AprioMed’s range
of biopsy needles, used for minimally invasive procedures,
complements IZI Medical’s products for cancer diagnosis
and treatment.
The TeDan group of companies was purchased in
November 2023 for a maximum total consideration
of£80m. TeDan develops, manufactures and supplies
medical retraction systems used by surgeons in spinal,
neurological, cardiac and orthopaedic procedures.
Rovers Medical Devices B.V., based in The Netherlands,
was acquired in March 2024 for a maximum total
consideration of £77m. Rovers designs, manufactures and
distributes innovative and market‑leading brushes, used
by professionals or by patients at home in more than 90
countries, to collect samples for cervical cancer screening.
Acquisitions had a positive effect of 4.6% on revenue
and4.9% on profit
2
. Currency exchange movements had
anegative effect of 2.6% on revenue and 1.7% on profit
2
.
Revenue by destination
£553m
USA 52%
Mainland Europe 19%
UK 9%
Asia Pacific 13%
Africa, Near and Middle East 2%
Other countries 5%
1 Closing the Women’s Health Gap, World Economic Forum insight report,
January 2024
2 See alternative performance measures in note 3 to the Accounts. For sector
profit before allocation of adjustments, see note 1 to the Accounts.
66 Halma plc | Annual Report and Accounts 2024
BUSINESS REVIEW continued
Cervical cancer claims a woman’s life every two
minutes. It is the fourth most common cancer
amongwomen globally. However, it is also one of
themost treatable forms of cancer if diagnosed early.
Few diseases reflect global health inequities as much
as cervical cancer. More than 85% of those affected
are young, undereducated women who live in the
world’s poorest countries, where death rates are
threetimes as high as in more developed countries.
Not surprisingly screening is considerably lower in
thosecountries.
As a result, in November 2020, the World Health
Organization (WHO) launched a strategy to
acceleratethe elimination of cervical cancer by
increasing proactive screening. The WHO strategy
established ambitious global targets to achieve by
2030, including that 70% of women will be screened,
using a high performance test, by the age of 35, and
again by theage of 45.
In February 2024, Halma acquired Rovers Medical
Devices, a company based in Oss, The Netherlands,
that enables better screening of cancers, especially
cervical cancer. Its innovative and market‑leading
brushes, used in more than 90 countries, collect
largercell samples leading to more accurate diagnosis.
Its brushes can either be used by professionals or by
patients at home to self‑sample. Currently, every
second a Rovers brush is used to screen a woman
forcervical cancer, helping to proactively save lives.
Health inequality between women and men is often
ignored. Even though women tend to live longer than
men, they spend more of their lives in poor health.
Thewomen’s health market is a strategic priority for
Halma’s healthcare sector and with the acquisition
ofRovers, it has expanded its positive impact on
improving health outcomes for everyone, every day.
I am thrilled to welcome Rovers to
theHalma family. From the earliest
conversations, the alignment with our
purpose was clear and we could see
agreat fit for the Healthcare Sector.
The World Health Organization’s
strategy will drive further demand
forits innovative brushes increasing
global cervical screening rates and
diagnostics for patients worldwide,
ensuring long‑term growth and
impact in women’s health.
Claire Ferguson
Divisional Chief Executive, Healthcare Sector and
Chairof Rovers Medical Devices
Saving lives by growing into new markets
Case study
Halma plc | Annual Report and Accounts 2024 67
Governance Report Financial Statements Other Information
Strategic Report
Developing, attracting and
retaining high quality talent is
akeydriver of our success and
delivery of our strategy. We strive
tobuild leadership teams which
arediverse, effective and engaged.
Their key matters
• Fair pay, terms and conditions.
• Inclusive, diverse and
supportive environment.
• Opportunity for development
and progression.
• Workforce policies.
• Collaboration and engagement across
the Group.
Further links:
Sustainability on page84
Governance Report on page119
Remuneration Report on page152
Maintaining strong stakeholder relationships is
essential to Halma’s long‑term sustainable growth
andthe fulfilment of our purpose.
Engagement with our stakeholders
How we engage
We foster an open and collaborative environment, which ensures
regular communication and engagement across our Group of over
8,000 employees. At a Group level, we engage with our employees
through a number of mechanisms, including, but not limited to,
regular hybrid townhalls, our Group intranet and the annual
employee engagement survey. Leaders of our companies are
regularly updated and brought intoconversations regarding key
strategic topics and financial performance, which they then share
with their own employee populations.
At the company level, our companies engage with their employees
through company newsletters; regular townhalls; digital platforms,
including intranet sites; employee pulse checks; employee forums;
wellbeing initiatives; and organised socialevents.
Our Board members greatly value engagement opportunities with
our colleagues, which take the form of both direct and indirect
engagement and consider the interests of employees when making
decisions. Details of Board engagement with employees during the
year is set out on page136 of the Governance Report.
Outcomes and actions in the year
• Executive and non‑executive Directors attended 37 company site
visits, meeting with a diverse range of colleagues.
• Achieved an 83% response rate and 76% overall engagement rate
for our annual employee engagement survey.
• Through the Employee Assistance Programme in the US, Europe
and India, we have supported employees in exploring topics such
as menopause, managing grief and loss, and mindfulness. We
also introduced a helpline in Israel to support our employees
through the conflict in the Middle East.
• Introduction of YuLife wellbeing app for the majority of
UK companies.
• In June 2024 all companies will migrate to a unified people
platform, Workday, which will further enhance data accessibility,
process automation and the employee experience, supporting
ourcompanies’ growth and competitiveness on a global scale.
• Continued to improve the onboarding experience for new joiners
and created learning and networking opportunities for colleagues
across regions as a follow up from feedback received via the
employee engagement survey.
Our people
68 Halma plc | Annual Report and Accounts 2024
OUR STAKEHOLDERS
Our customers play a pivotal role
inthe fulfilment of our purpose by
delivering our products and services
to the end market where they serve
to protect and improve the quality
of life.
Their key matters
• Innovative solutions.
• Competitive pricing.
• Long‑term relationships.
• Stable supply chain.
• Service and support levels.
Further links:
Business reviews on page50
Non-financial & sustainability information
statement on page100
How we engage
Our Divisional Chief Executives (DCEs) engage with our major
customers to ensure that we offer and develop innovative solutions
using our technology and deep application knowledge.
As a highly decentralised business our companies work closely with
their customers, which fosters close partnerships and promotes
open two‑way communication and dialogue.
Outcomes and actions in the year
• Investment in our digital growth programmes to explore new
waysof providing value to customers through digital products.
• An increasing number of our customers are engaging with our
companies on sustainability matters via a variety of channels,
including through sustainability performance surveys.
How we engage
The Board members engage and communicate with our companies
through business reporting, site visits, presentations and events,
which ensures alignment of the development and performance
ofthe companies with Halma’s growth strategy and culture.
The Board regularly receives sector and company updates directly
or via the Group Chief Executive and sector presentations are
scheduled into Halma’s annual Board agenda.
Outcomes and actions in the year
• Accelerate CEO conference held in October 2023.
• Completion of our Security Upgrade Programme, which has
greatly enhanced our ability to connect across companies,
learnfrom one another and collaborate.
• All Halma companies have migrated into the same Microsoft
environment. This change has made collaboration and connection
easier across companies and peer groups. We have also refreshed
our communications channels so that they are simpler to use
andmore integrated. As a result, we are seeing more news being
shared across companies, more questions put to the network and
functional communities and interest groups growing.
• Supported the development of our companies’ products via our
Functional Networks, which enables collaboration, interconnectivity
and allows our companies to leverage their experiences and
knowledge from one another.
• Continued M&A activity, providing companies with access to new
products, knowhow and end markets.
Our decentralised model places
ourcompanies close to their end
markets, under the management
of their own board of directors,
which empowers entrepreneurial
action. Our companies are vital to
the success of our growth strategies
– collectively delivering our organic
growth and through selective asset
and bolt‑on acquisitions, deliver
inorganic growth.
Their key matters
• Collaboration and interconnectivity.
• Operational and financial performance.
• Access to our Growth Enablers and
central expertise, skills and
other resources.
• R&D investment.
• Talent development.
• International expansion.
Further links:
Business reviews on page50
Strategic Report on page1
Our companies
Customers
Halma plc | Annual Report and Accounts 2024 69
Governance Report Financial Statements Other Information
Strategic Report
Accelerate CEO 2023
Case study
In October 2023, Halma’s Senior Leadership Team
(comprising the Board, Executive Board, sector boards,
all company managing directors, and senior leaders in
our Group Functions and Growth Enablers) gathered in
Berlin for two days.
The gathering covered Halma’s strategic priorities and
reflected on the challenges and opportunities facing
our companies. In a series of workshops and panel
discussions key topics around talent development, go
to market, innovation, digital and technology change
were discussed.
During the conference, a focus was placed on
celebrating the achievements of the past year,
culminating in awarding Company of the Year
ineachsector and overall, commending their
performance and the dedication of their employees.
Feedback from the conference highlighted the most
valuable aspect: building networks and connections
between people, which is crucial to our operating
model. It also offered valuable insights for the
upcoming year. Harnessing the momentum and
energy, we’ve established working groups to address
follow‑up actions and opportunities identified in
talent,technology, and go‑to‑market strategies,
whichensures we make swift progress.
70 Halma plc | Annual Report and Accounts 2024
OUR STAKEHOLDERS continued
Developing strong relationships
with our suppliers is key to the
operational success of our business
and ensures that we have agility
todevelop new and market
competitive solutions to meet
ourcustomers’ needs, who play
anessential role in ensuring the
sustainable growth of the Group.
Their key matters
• Fair payment practices.
• General terms and conditions
of business.
• Social, ethical and
environmental impacts.
• Long‑term partnerships.
Further links:
Sustainability on page77
Non-financial & sustainability information
statement on page100
How we engage
As a highly decentralised business our companies work closely
withtheir suppliers. Our DCEs engage with our key suppliers to
ensure that we continue to deliver the best products and services
for our customers and have the infrastructure in place to respond
tomarket developments. DCEs report back to the Board periodically
on significant supplier contracts and arrangements, and the Board
maintains oversight of potential supply chain issues and mitigations.
Many of our companies have been engaging with suppliers on
sustainability matters and as part of reducing Scope 3 emissions
linked to our supply chain. We expect increased engagement
fromour companies as they start to develop their Scope3
decarbonisation plans.
Our Halma Strength in Numbers (HSIN) team provides a
strategicpurchasing function to our companies, offering collective
economies of scale and introduction of new vendors to serve a
specific business need. The HSIN team engage with key suppliers
todevelop proposals and present options to our companies.
Our principal suppliers are subject to regular engagement, including
audits, and are encouraged to operate with the high ethical
standards that are set out in our Code of Conduct. The Board
annually reviews and approves our Modern Slavery Act statement.
Outcomes and actions in the year
• Continued to engage with suppliers on sustainability including
anumber of our companies utilising the EcoVadis platform via
Halma’s group licence to gain a better understanding of supplier
sustainability credentials.
• Held a “Halma Strategic Supplier” event (see page72).
Suppliers
Halma plc | Annual Report and Accounts 2024 71
Governance Report Financial Statements Other Information
Strategic Report
Halma Strategic Supplier event
Case study
In May 2023, the Halma Strength in Numbers (HSIN)
team held the second Halma Strategic Supplier event,
hosted by BEA in Belgium. The event connected key
suppliers from across our supply chain with operational
leaders from our companies. The event’s aims were to
encourage networking, facilitate the sharing of best
practices, provide opportunities for companies to meet
with established partners, identify strategic initiatives
and to hear and engage with keynote speakers.
Supplier presentations on the first day of the event
provided our companies with ideas to take into an
internal discussion on the second day to determine
areas of focus and actions.
The event was highly beneficial to both suppliers
andcompanies and strengthened the bond with
keysuppliers by showing how much we value their
commitment to Halma’s business. The event prompted
various actions resulting in greater collaboration
acrosscompanies and the launch of three key tenders
involving 16 of our companies, leading to significant
value for all.
HSIN events have helped to
buildstrong supplier relationships,
identified vital supply chain risk
management opportunities,
provided various saving
opportunitiesas well as increased
collaboration across the Halma
operating companies.
Ross Walker,
Head of Supply Chain, Apollo
72 Halma plc | Annual Report and Accounts 2024
OUR STAKEHOLDERS continued
We have a duty to conduct
business in a responsible and
sustainable way that aligns with
our purpose, our organisational and
cultural genes, and supports the
communities in which we operate.
Their key matters
• Environmental and social impact.
• Improving quality of life.
• Protecting people.
Further links:
Sustainability on page77
Non-financial & sustainability information
statement on page100
How we engage
Our Executive Directors are in dialogue with our business partners
and will meet with management at potential acquisition targets as
part of the due diligence process.
The Board receives reports on the M&A pipeline at every scheduled
meeting, which allows for considered discussion and facilitates their
decision‑making process.
Outcomes and actions in the year
• Completed eight purpose‑aligned acquisitions across our three
sectors throughout the year.
How we engage
The Directors regularly review our portfolio to consider how our
companies and their products align with our purpose.
The Sustainability team engages with stakeholders on sustainability
issues and reports to the Board on these matters.
At a more local level, our companies undertake a range of
initiativeswith their local communities to provide engagement
andpositive impact.
Outcomes and actions in the year
• Our companies support wide‑ranging charities including housing
and food needs, health and education, through both volunteering
efforts and charitable donations. Some examples include: BEA
supports underprivileged families through donations of goods like
toys, books and hygiene products; Crowcon fundraised for various
charities including local schools and orphanages and donated to
the Ukrainian relief efforts; Ocean provided school supplies on
behalf of A Gift For Teaching, a non‑profit organisation providing
supplies to teachers of students in need in Florida; Oseco/Elfab
supports an organisation providing cancer treatments and
ancillary services, a local food shelter, and delivered aid to a
Ukrainian village which one of their employees originates from;
Riester supports a children’s cancer hospital with in‑kind
donations; Alicat gifted books to benefit a local daycare
centreand goods for a food pantry.
A key aspect of our sustainable
growth strategy is achieved through
acquisitions and our companies
andsector M&A teams work
continuously to build relationships
with businesses that could become
an acquisition prospect or a
strategic business partner.
Their key matters
• Financial performance.
• R&D investment.
• Collaboration and interconnectivity.
• Delivery of initiatives.
• Mergers and acquisitions.
• International expansion.
• Cultural and ethical fit and alignment
with our purpose.
Further links:
Strategic Report on page 1
Business reviews on page 50
Governance in action on page132
Acquisition prospects and business partners
Society and community
Halma plc | Annual Report and Accounts 2024 73
Governance Report Financial Statements Other Information
Strategic Report
Investors and debt holders provide
the financial liquidity we require
tooperate and continue our
sustainable growth, and are key
beneficiaries in the value that we
create. As investors in our business,
we are committed to transparent
and open engagement with them.
Their key matters
• Strategy and implementation.
• Operational and financial performance.
• Capital structure, liquidity, capital
allocation and dividend policy.
• Risk management.
• M&A.
• Talent and succession planning.
• Environmental, social and
governance matters.
• Company culture.
Further links:
Strategic report on page1
Business review on page50
How we engage
The Board recognises the value of engaging with all of our investors
and debt holders and gaining a diverse selection of shareholder and
stakeholder views from a range of geographies. We maintain an
annual programme of investor publications and key engagement
initiatives, and the Directors meet investors on a regular basis,
principally through investor roadshows, investor events and the
Annual General Meeting.
The Chair is accessible to shareholders and will invite the Company’s
largest equity shareholders to meet to discuss Company strategy,
direction and any other significant matters. The Senior Independent
Director provides an alternative channel for shareholders to raise
concerns, independent of executive management and the Chair.
The Head of Investor Relations, Head of Sustainability, the
Company Secretary and Group Treasurer maintain an ongoing
dialogue with shareholders, investor bodies, financial analysts and
our lenders regarding financial, operational, risk and environmental,
social and governance issues, and provide regular reports to the
Board on these interactions.
Outcomes and actions in the year
• Held 250 investor meetings, with over 270 investors, attended
bya broad range of senior Halma management, including the
GroupChief Executive, Chief Financial Officer and members of
the Executive Board.
• Held roadshows focused on smaller investors and private
client brokers.
• Held a webinar focused on private investors.
• Held a series of meetings between our Chair, Dame Louise Makin,
and major shareholders, covering approximately 25% of our
issued share capital. Key discussions included Board succession
forboth executive and non‑executive teams, Board composition
and skills, remuneration, sustainability and talent management.
• Excellent relationships with key debt investors and a strong credit
story led to very high demand and favourable pricing for our
private placement issuance in April 2024.
• Held our Annual General Meeting in July 2023, allowing for
face‑to‑face interaction between Board members and a range
of investors.
• Held a series of meetings between our Chief Sustainability Officer,
Constance Baroudel, and major shareholders to engage on our
progress in reducing GHG Scope 3 emissions and working towards
setting appropriate GHG Scope 3 emissions targets.
Investors and debt holders
74 Halma plc | Annual Report and Accounts 2024
OUR STAKEHOLDERS continued
Throughout the year the Directors believe that they
have acted in a way that they considered, in good
faith, would be most likely to promote the success
ofthe Company for the benefit of shareholders,
andin doing so had regard, among other matters,
to S.172(1)(a) to (f) of the Companies Act 2006.
Further disclosures on each of the S.172(1) factors, found throughout this Report, are set out below.
S.172(1) element and their relevant disclosures
The likely consequences ofany
decision in the longterm
Key decisions made in theyearon page76
Sustainable Growth Model on page26
Business reviews on page50
Strategic Report on page1
The need to foster the company’s
business relationships with suppliers,
customers and others
Non-financial & sustainability information statement
onpage100
Our stakeholders on page68
Business reviews on page50
The desirability of the company
maintaining a reputation for high
standards of businessconduct
Sustainable Growth Model on page26
Risk management and internal control on page104
Non-financial & sustainability information statement
onpage100
The interest of the
company’s employees
Sustainability on page77
Our stakeholders on page68
Governance Report on page119
Non-financial & sustainability information statement
onpage100
Remuneration Report on page152
The impact of the company’s operations
on the community andenvironment
Sustainability on page77
TCFD Statement on page90
The need to act fairly as between
members of thecompany
Our stakeholders on page68
Governance Report on page119
Directors’ Report on page178
(a)
(c)
(e)
(b)
(d)
(f)
Halma plc | Annual Report and Accounts 2024 75
Governance Report Financial Statements Other Information
Strategic Report
SECTION 1721 COMPLIANCE STATEMENT
Principal decision and stakeholdersconsidered Factors considered by the Board Longer‑term considerations
Capital allocation
• Our companies.
• Shareholders and investors.
• Our people.
• Customers and suppliers.
The Group’s Budget, approved by the Board, sets the
allocation of capital to deliver our growth strategy
through investment in R&D, capital expenditure, talent
and acquisitions. The Board were cognisant of the
Group’s short to medium‑term priorities in setting the
Group Budget whilst being mindful of macroeconomic
and geopolitical circumstances, to ensure continued
delivery of growth and the safeguard ofshareholders’
interests, as well as thoseofits wider stakeholders
including employees, customers and suppliers.
Balancing investment
forfuture growth while
considering shorter
terminflationary cost
pressures and political
andeconomic risks.
Dividend
• Shareholders andinvestors.
• Our people.
• Customers and suppliers.
For its 45th consecutive year, the Board took the
decision to increase dividend payments by more than
5%. As a high growth company, the Board carefully
balanced the financial resources required to execute
our strategy, including organic investment needs
andacquisition opportunities in line with our Budget;
the Group’s medium‑term rate of organic constant
currency growth; maintaining a prudent level of
dividend cover and moderate indebtedness; and
equitable treatment of our stakeholders when taking
this decision.
That dividends are
consistent with the
Company’s financial
performance and would
not be detrimental to the
strength of the balance
sheet and future
sustainable growth.
Acquisitions
• Shareholders and investors.
• Our companies.
• Our people.
• Customers and suppliers.
• Acquisition prospects and
business partners.
The Group completed eight acquisitions during the
year, six of which required Board approval. The
detailed acquisition proposals from the Group Chief
Executive set out the long‑term implications of the
acquisition and the effect on Halma’s stakeholders.
Itis essential that each of our companies aligns with
our purpose and the Board carefully balanced the
financial commitment required against the risks and
anticipated return, whilst considering the strategic
fitwith our purpose, the opportunities for geographic
ormarket growth (either organic or through further
M&A) and the talent and knowhow which would
beacquired.
Halma’s discipline in
making acquisitions which
are aligned to our purpose
and which are in market
nicheswith long‑term
growth drivers are core
toour strategy and are
criticalto ensure that
wecan continue to grow
sustainably for the benefit
of allourstakeholders.
Cash pooling
• Shareholders and investors.
• Our companies.
• Acquisition prospects
andbusiness partners.
In 2023 the Board approved the introduction of cash
pooling arrangements for Group entities in China
andEurope and the enhancement of existing UK
arrangements. This was to improve cash efficiency
across the Group and provide flexibility to pay down
debt and reduce interest expense.
Ensuring that the Company
is well placed to continue to
have the ability to invest in
future growth.
Board decision‑making
The principal decisions taken by the Board during the year, along with how the Directors considered stakeholder
interests when discharging their duties under S.172(1), are set out below.
76 Halma plc | Annual Report and Accounts 2024
CONSIDERING STAKEHOLDERS IN OUR DECISIONMAKING
Seeking growth opportunities driven by
ourpurpose, long-term growth drivers
andevolving sustainability demands
Aiming to increase and
broaden the benefits enabled
by our products and services
Doing more good while doing less harm
We protect our
environment by:
We drive growth in sustainability by:
We support
our people by:
Improving the lives of employees,
suppliers and community members
Diversity, equity
and inclusion
Reducing
emissions
Sustainable
design
Reducing our environmental footprint in
our operations and wider value chains
Our approach to sustainability
Sustainability for growth
At Halma, sustainability has always been at the core
ofour purpose-driven strategy for growth.
Our sustainability-related growth is achieved by our
continued focus on acquiring and growing companies
insafety, environmental and healthcare markets that
areaddressing real-world problems by enabling their
customers to provide safer environments, protect life-
critical resources, and deliver better healthcare.
The agility of our companies means they can be quick
torespond to the demands of their customers, evolving
their products and services to address sustainability-
related opportunities and challenges over time.
We believe that continuing to encourage our companies
to identify and pursue sustainability-related opportunities
to grow their products and markets, through our first
sustainability pillar – to drive growth in sustainability
– will allow us to accelerate our progress and broaden the
benefits that our companies already enable through their
products and services. Our companies think of this as
prioritising opportunities to “do more good” and grow
their revenues and profits.
At the same time, we recognise that our growth has
potentially negative impacts on people and planet –
andmanaging and improving this impact is the focus
ofour second and third sustainability pillars.
Our second sustainability pillar is driven by our purpose
and cultural DNA – to support our people as we grow –
our employees, suppliers and the communities we
operate in. Within this pillar, our key focus area is
diversity,equity and inclusion.
Our third pillar – to protect our environment – is vitally
important to Halma, not only because it is the right
thingto do, but also as it will support our future growth.
Priority focus areas include sustainable product design
and reducing our carbon emissions.
For all of our companies, these three sustainability pillars
together translate into our wider ambition – to “do more
good while doing less harm”.
Our three sustainability pillars
CO
2
Halma plc | Annual Report and Accounts 2024 77
Governance Report Financial Statements Other Information
Strategic Report
SUSTAINABILITY
Board and Executive level sustainability governance
At Group level, our Board is ultimately responsible for our
Sustainable Growth Model, which has sustainability at its
core and includes oversight of climate-related risks and
opportunities. Further embedding sustainability into our
business continues to be one of the Board’s key priorities
for 2025.
All members of the Board have sustainability experience
or expertise. Jo Harlow, Senior Independent Director,
alsohas significant experience and expertise in climate
change and decarbonisation, including through her role
as a Board member of Chapter Zero, the UK chapter of
the Climate Governance Initiative.
Our sustainability agenda is led by our Chief Sustainability
Officer, Constance Baroudel, who has principal responsibility
for our sustainability activities andpolicy. She is also our
Sector Chief Executive for Environmental and Analysis
and a member of the Executive Board, and regularly
presents to the Board.
During the first part of 2024, she chaired our Sustainability
Management Committee (SMC), whichwas a cross-
functional team of Group and sector representatives
providing direction and oversight of implementation of
our sustainability agenda. Having finalised our refreshed
internal expectations for our companies (see below),
theSMC was disbanded as theirresponsibilities became
embedded into our existing management structures, in
line with our overall priority of embedding sustainability
across our business operations.
The Executive Board is now responsible for providing
additional direction and oversight of our sustainability
approach and internal sustainability expectations,
including being responsible for the identification and
management of sustainability and climate-related
opportunities and risks.
Since 2023, progress on reducing emissions (energy
productivity) and diversity, equity and inclusion
(genderbalance on company boards) has been
incorporated into executive remuneration.
Read more about the Board’s key priorities on page130
See the Board’s sustainability‑related skill set on page141
Read more about climate‑related governance on page90
Read more about sustainability‑related remuneration on page168
Read more about sustainability governance at www.halma.com
Materiality and reporting
Our 2021 informal strategic materiality assessment
process continues to inform the key focus areas within our
sustainability approach, including diversity, equity and
inclusion, reducing emissions and sustainable design.
During 2024 and into 2025, we are focusing on creating
an approach to a Group sustainability materiality
assessment that is fully embedded in our wider risk
andopportunity management processes. Our initial
focusis on preparing for the financial materiality based
disclosures that will be applicable for the Group in the
coming years, including commencing work on further
assessing potential sustainability-related risks within
ourcompanies’ supply chains.
As in the prior year, this sustainability section allows
ustoshare our progress on the key elements of our
sustainability agenda. Data on other environmental,
social and governance topics and more detailed
examplesof our companies’ progress are available
atwww.halma.com.
Read more about our sustainability approach and informal
strategic materiality assessment at www.halma.com
Further social and environmental metrics and information on our
progress can be found in our ESG Data Supplement and Emissions
Reduction Report at www.halma.com
Our internal sustainability expectations
We are embedding our approach to sustainability in
ouroperations. During 2024, we established refreshed
sustainability-related expectations for our companies.
These expectations relate to both driving growth in
sustainability and managing impacts on people and
environment. Our expectations also include how the
sectors and Group functions can support and enable
ourcompanies to achieve the Group’s, and their own,
sustainability-related goals.
Embedding our sustainability approach
78 Halma plc | Annual Report and Accounts 2024
SUSTAINABILITY continued
Expectations for driving growth in sustainability
Our expectations embed consideration of sustainability
growth opportunities and risks into strategic planning. All
companies are required to consider potential sustainability-
related revenue and profit growth opportunities as part
of their annual strategic planning cycle – prioritising these
where possible. These could include, for example, growing
into new markets aligned with the energy transition, or
increasing ability to access healthcare via technology.
Companies are also required to consider and include
strategic sustainability-related risks in their risk registers.
The sectors support this strategic planning process, connect
Halma companies tobetter respond to opportunities,
and pursue sustainability-related opportunities through
M&A whererelevant. More information is available in
theDrivegrowth in sustainability section overleaf.
Expectations for protecting the environment
andsupporting people
Our expectations also extend the existing requirement
foreach company to maintain a tactical Sustainability
Action Plan (SAP) – formerly called a Key Sustainability
Objective (KSO) Action Plan – by embedding it into the
budgeting process. These plans contain goals and actions
set by each company to manage their impacts on the
environment and people. All companies must refresh
theirSAP annually, and companies must meet different
‘minimum requirements’ for these plans depending
ontheir size or the potential size of their negative
environmental impacts. In this manner, we aim to
makeprogress on the Group’s goals and impacts
withoutoverburdening our smaller companies.
The scope and ambition of these ‘minimum requirements’
increases each year, with companies also encouraged
toinclude goals and actions that are most relevant to
their operations and products. Importantly, however, the
companies retain autonomy over the specific goals and
actions they include in their SAP, choosing to contribute
to the Group goals and the ‘minimum requirements’ in
the ways that are most appropriate for their geography,
business context and sustainability impacts. Theirplans,
as well as the ‘minimum requirements’ setbythe Group,
will change and adapt over time.
Our sectors are responsible for monitoring and challenging
the SAP ambition and progress of our larger and higher
impact companies. The Group function supports the
companies by creating resources, networks and education
to enable companies to share best practice, support each
other and access subject matterexpertise where relevant.
Halma plc | Annual Report and Accounts 2024 79
Governance Report Financial Statements Other Information
Strategic Report
Overview
Halma companies know their markets and customers
best, which is why our sustainability approach focuses
onbottom-up company led identification and
management of sustainability growth opportunities.
Because of our diversified portfolio, this results in a
varietyof different outcomes.
In practice, some of our companies are growing
existingsustainability-related markets further, some
aredeveloping new products for sustainability-related
markets, and others are pivoting their existing products
for alternative uses in sustainability-related sectors.
Formany companies, leveraging innovation and digital
technologies will be key to solving sustainability challenges.
However, for some of our companies, it maybe more
relevant for them to focus on identifying any potential
sustainability-related risks to their existingpurpose-
aligned growth plans.
At the Group and sector level, we also continue to be
excited by acquisitions that deliver on our purpose and
long-term growth drivers and additionally have significant,
long-term sustainability growth opportunities.
This Annual Report includes a number of examples
oforganic and inorganic growth opportunities in
sustainability, including climate-related opportunities
inour TCFD statement on pages 90 to 99, and in the
casestudies on pages 56, 61 & 67.
Within this Sustainability section:
• The case study on the facing page explains how we
arebroadening the social benefits delivered by Halma’s
Healthcare Sector via the recent acquisitions of IZI
Medical and TeDan Surgical Innovations.
• The case study on the use of PeriGen’s technology
inMalawi (page 82), while currently a largely non-
commercial opportunity, illustrates how one of our
small companies is exploring the sustainability-related
growth opportunities that may arise from improving
maternal health in emerging markets.
Defining and measuring sustainability-related growth
willcontinue to be a challenge, given our Sustainable
Growth Model is already driven by our purpose to create
asafer, cleaner, healthier future for everyone, every
day.Therefore, separately identifying and measuring
opportunities can be difficult, and we are conscious
ofadding to the reporting burden on our small and
medium-sized companies. Therefore, we are focused on
building a variety of flexible approaches to measurement
and reporting of opportunities over time.
Drive growth in sustainability
Halma and the SDGs
The societal and environmental benefits we enable
through our products and services help contribute
towards the broad aims of many UN Sustainable
Development Goals (SDGs).
Because of the diversity of Halma companies, the
contribution from our products and services covers
awide range of SDGs, depending on the sector and
the business.
In this Annual Report, we aim to give some
indicative examples of the benefits enabled by
ourcompanies’ products and services, and more
information about the relevant SDGs supported is
available on our website.
See theOurcompanies’ impact and Impact examples and
metrics sections of our website at www.halma.com
Broadly, the SDGs most regularly supported by our
businesses include the following:
80 Halma plc | Annual Report and Accounts 2024
SUSTAINABILITY continued
Healthy innovation for social impact
Case study
Halma’s work in the Healthcare Sector not only
enables economic benefits and drives organisational
growth, it also enables social benefits. The innovative
solutions our companies develop are helping to
improve the quality and lifespan ofindividuals across
the globe.
This is illustrated by two of our more recent acquisitions:
IZI Medical and TeDan Surgical Innovations (TSI). These
two companies’ technologies are estimated to have
improved health outcomes for more than 1 million
individual patients who underwent surgeries and
diagnostics procedures in 2023.
At IZI, a manufacturer and distributor of quality
medical devices that support the surgical process,
thiswas achieved through their image-guided Spherz
®
product. These reflective spherical devices are placed
on biopsy needles and other image guided surgery
components to help triangulate the exact location
from which a biopsy sample needs to be taken.
These innovative spheres provide information that
enable surgeons to make minute incisions or punctures,
especially important for delicate procedures in complex
locations such as the brain and spine. Smaller incisions
and punctures improve success rates,reduce the risk of
additional tissue damage and improve patient recovery
times. We estimate that in 2023, IZI’s products played
a part in nearly 400,000 patients’ surgical or
diagnosticprocedures.
TSI is a Halma company that manufactures specialised
surgical instruments to enhance and support surgical
procedures. Its technology helps toretract and expose
tissue and vascular structures toenable surgeons safe
access to complex surgical sitesincluding the spine,
brain and heart.
For example, their Phantom UL™ zdATP™ Surgical
Access System enables surgeons to directly access
patients’ lumbar discs via narrow passageways
through their abdomen. This development replaces
thetraditional route taken from the back of the
patient, which requires surgeons to remove parts of
thespine to get past the spinal cord and nerve roots
before reaching affected discs. Access via the abdomen
not only results in a safer procedure, but also in quicker
recovery times and a lowered possibility of issues that
traditional open posterior surgery can cause.
We estimate that more than 800,000 patients were
treated in neuro/spine and cardiothoracic conditions
procedures using TSI products in 2023, bringing the
combined total of the number of patients supported
by these two Halma companies to more than 1 million
in a single year. This demonstrates how Halma
companies, driven by our purpose, are working to
ensure a healthier future for everyone, every day.
The figures quoted in this example are high level estimates only and
moreinformation on our methodology and assumptions is available
at www.halma.com.
Halma plc | Annual Report and Accounts 2024 81
Governance Report Financial Statements Other Information
Strategic Report
Halma’s purpose has driven our business for decades
andinforms every decision we make. A key part of our
purpose is focused on growing our companies who can
then amplify the positive difference they make every day
through their technologies. Sustainability has always been
at the heart of this growth strategy, and our companies
are always alert to new opportunities that will enable
their customers to provide safer environments, protect
life-critical resources and enable better healthcare.
Enabling better health outcomes
PeriGen is an example of a Halma company looking
atways to drive its growth through sustainability.
Itdevelops technologies that solve an urgent global
problem: enabling better health outcomes for
mothersand babies during childbirth.
Worldwide, about 140 million women give birth every
year. Tragically, however, around one million new-born
babies die within the first 24 hours. Added to this, the
World Health Organization estimates that each day 810
women die from pregnancy related or childbirth related
complications. Sub-Saharan Africa has a particularly high
maternal death rate and an even higher stillbirth and
neonatal death rate. In Malawi, there is a shockingly high
maternal death rate, with about one in every 200 women
dying around the time of delivery, and even higher levels
of early neonatal death and stillbirth rate, ranging
between 2-6% of all babies during the time of delivery,
either in the womb or outside the womb.
During the delivery process, electronic fetal monitoring
can provide data on the birth progress, but caregivers
must interpret the data and recognise any warning
signs,many of which can be subtle and build gradually
over hours.
Early warning system for healthcare workers
PeriGen, a Halma company based in North Carolina,
US,provides Artificial Intelligence based software
solutions to interpret this data in real time, updating
thecare team and enhancing the delivery of care during
childbirth. PeriGen joined Halma in 2021 and its PeriWatch
Vigilance
®
technology acts as an automated early
warning system for both mothers and babies, tracking
vital information such as fetal heart rate, contractions,
and labour progression.
Life-saving technology
in emerging markets
The Area 25 Health Centre serves Malawi’s bustling
capital, Lilongwe, home to around one million people.
Working in partnership with Malawi’s Ministry of Health
together with one of PeriGen’s customers, the Texas
Children’s Hospital, and Baylor College of Medicine,
theclinic is transforming the quality of care in its
Maternal Health Unit.
Introducing PeriGen’s technology to the Area 25 Health
Centre helped the clinical team to reduce the number of
stillbirths and neonatal deaths by 82% and also improve
the overall quality of care for new mothers.
Exploring new growth opportunities
This is the first time the system has been used outside the
US healthcare market. It has enabled PeriGen to create a
proof of concept in an emerging market with significant
resource constraints, demonstrating a transformational
impact on the health outcomes of mothers and babies.
The company is already exploring opportunities to grow
its business in Africa, as well as customise its life-saving
solution to work in different healthcare markets.
Even as technology becomes more
available in resource-constrained
environments, the main factor to
improve care globally is the experience
and expertise to effectively translate
data to improved care. Systems such
as PeriGen’s provide continuous,
objective and actionable information,
that helps train care teams as well.
Matt Sappern
President, PeriGen
82 Halma plc | Annual Report and Accounts 2024
SUSTAINABILITY continued
Area 25 Health Centre
in Lilongwe, Malawi
PeriGen’s AI Software monitors mums and babies
Other InformationFinancial StatementsGovernance Report
Strategic Report
Halma plc | Annual Report and Accounts 2024 83
Our employees
Building greater diversity, equity and inclusion to
drive our growth
We aim to cultivate a highly inclusive culture at Halma.
Improving diversity, equity and inclusion (DEI) produces
significant advantages for our global communities and
isfundamental to achieving our purpose. It is therefore
akey focus area.
Our focus on DEI was supported by several initiatives
thisyear. We expanded our in-house talent acquisition
capacity and are exploring creative ways to attract
diverse talent to our organisation, including targeted social
networking campaigns. These campaigns showcase our
diverse leaders as role models, inviting others to experience
the Halma culture first-hand and widening ourtalent
pool for recruitment. In March this year, we also expanded
our communications channels to launch asignature
podcast series, Leading with Purpose. Each episode
features diverse company and sector leaders discussing
leadership and purpose and giving insight intoour culture.
By doing so, we want to encourage others to want to join
us to help meet our purpose.
To foster a sense of community and belonging at Halma,
we use platforms such as our intranet and social media
to amplify the voices of our global employees. Our
employees shared their unique journeys commemorating
events like Black History Month, International Women in
Engineering Day and Pride Month, providing avenues for
connection and engagement, and enriching colleagues’
understanding of diverse cultures and backgrounds.
We know the value of inclusive benefits in attracting
diverse talent within our companies and are pleased
tosee these benefits continue to have a positive uptake.
Since it was introduced in October 2020, over 700employees
across the Group have benefited from ourglobal parental
leave policy which provides 14 weeks of full paid leave for
births, surrogacy and adoptions, forboth men and women.
In 2023 we implemented comprehensive fertility benefits
for US employees. Wemade this change recognising that
infertility care isoften not covered by health plans, leaving
many individuals to pay high out-of-pocket costs for
treatments, often putting a disproportionate burden
onwomen and other minority groups.
Gender balance
As a Group, we are working towards gender balance
onour company boards. This is a metric we started to
track in 2020 and in 2021 we set a target to be within a
gender-balanced range of 40-60% by the end of March
2024. We introduced this ambitious target knowing that
given the nature and size of our companies, it would be
difficult to achieve. However, we were resolute in our
belief it was the right thing to do to broaden our talent
and bring in different perspectives to help us grow faster.
To accelerate the pace of change, in the 2023 financial
year, we built progress towards the target into the bonus
element of remuneration for our senior leaders. We
endedthe 2024 financial year with 31%
of women on our
company boards, representing a year-on-year increase
of2% compared to the 2023 figure of 29%. Although we
have not met the overarching target, we have achieved
steady year-on-year improvement resulting in an increase
of 12% from where we started. We are proud of the
progress our companies have made in this area, including
notable cultural shifts.
We remain committed to our goal. However, due to the
complexities of achieving DEI targets, we have reviewed
the position and will look to reach the 40-60% gender-
balanced range by a revised date of 31 March 2030. We
are confident that this target is attainable by this new
date, particularly as we reinforce some of the cultural
changes we have seen across our companies and
continue to refine our talent acquisition, pipeline
development and retention strategies.
1 This includes companies that have been in the portfolio for longer than three
years as at 31 March 2024.
2 This is based on the Halma definition of ethnic diversity. See page 85.
Support our people
Key targets and progress
Gender balance on company
boards by end 2024
End 2024: 31%¹
40-60%
Senior management (Executive Board and
their direct reports) that will be from
under‑represented ethnic groups by
December 2027. End 2024: 17%²
20%
Accident Frequency Rate
Progress: 0.05
(0.02)
Key focus area
Diversity, equity and inclusion
Relevant SDGs
84 Halma plc | Annual Report and Accounts 2024
SUSTAINABILITY continued
Figures at 31 March 2024
Senior Management
2
70%
30%
160
68
228
Board of Directors
1
55%
45%
6
5
11
Other employees
58%
42%
4,902
3,482
8,384
Men Women
1 Includes non-executive Directors.
2 Defined as Executive Board members who are not appointed to the Board, Divisional Chief Executives and Directors of our companies.
3 This includes companies that have been in the portfolio for longer than three years as at 31 March 2024.
4 Mean Gender Pay Gap for all US and UK employees. Rounded to whole percentage numbers.
Our gender diversity
At the executive level, we are pleased to have remained
within our 40–60% gender-balanced range, with women
representing 45% and 50% of Halma’s Board and
Executive Board, respectively. Our three sector boards
arealso within our 40–60% gender-balanced range and
46% of all our senior roles (Executive Board, Halma Board
and Divisional Chief Executives) are held by women.
Gender pay gap
Under the UK government’s Gender Pay Gap Information
Regulations, all legal entities in Great Britain with more
than 250 employees are required to report their gender
pay gap.
Although most of our individual UK companies
(includingHalma plc) do not directly employ more
than250 employees, we are voluntarily reporting the
Gender Pay Gap figure, based on combined data for the
employees intwo of our largest regions – the UK and USA.
We are pleased to report a mean (average) pay gap of
15.7% as at 31 March 2024, which isa reduction from the
31 March 2023 figure of 17.9%. Weare also encouraged to
see the steady year-on-year reduction from 25.9% in 2021,
when we started publishing this figure. We however
recognise that there is further work tobe done.
We have a gap in favour of men as we have more male
senior leaders, who are in higher paid roles, alongside
having more women in hourly paid positions. However,
we continue to see improvement in representation of
women at senior levels, which is one reason for the
reduction in the gap.
Our Global Parental Leave policy and Halma Catalyst
Programme are aimed at supporting women across
different roles, functions and geographies of our
businessand as we focus on the ability to attract,
hireand retaindiverse talent, we are confident that
progress willcontinue to be made.
Ethnic diversity
Improving ethnic diversity is also important to us. 14%
ofall employees consider themselves to be in an ethnic
minority and 38% of our Halma Future Leaders are from
an ethnically diverse background. At Board level, we will
continue to meet the Parker Review target this year as
well as the Change the Race Ratio target of having at
least one ethnically diverse member at the Board and
Executive Board level. In support of the Parker Review’s
newest recommendation, we have set a target of 20%
ofsenior management (Executive Board and their direct
reports) that will be from under-represented ethnic
groups by December 2027.
Currently, based on the Parker Review’s definition of
diversity, 27% of our Executive Board and their direct
reports, are from an ethnically diverse background. The
Parker Review defines ethnic diversity as Black, Asian or
any other race or ethnicity that is not the white majority
of the UK population as defined by the Office for National
Statistics and used in the 2021 UK census. This contrasts
with our view of ethnic diversity, which has a more global
focus and specifically does not count those who are not
ethnic minorities in the region where they work as being
ethnically diverse. Based on our definition of ethnic
diversity, 17% of those on our Executive Board and their
direct reports are from an ethnically diverse background.
In future years, we will report on our progress against
both the Halma and the Parker Review ethnic diversity
definitions. Whilst our current figures are encouraging,
relative to industry benchmarks, ethnic diversity is
something we willalways nurture and look to improve
even further.
202420232022202120202019201820172016
29%
31%
42% 42%
54%
61%
59%
56%
50%
19%
22%
26%
29%
31%
20242023202220212020
2024202320222021
26%
20%
18%
16%
% Women on plc and
Executive Boards
% Women on company boards
3
Gender pay gap
4
Halma plc | Annual Report and Accounts 2024 85
Governance Report Financial Statements Other Information
Strategic Report
Employee engagement
Employee engagement is vital for organisational success;
without productive and engaged employees, businesses
cannot prosper. Our annual global employee engagement
survey is a crucial gauge of the health of our culture and
the vitality of our businesses.
Over the past eight years, feedback from the survey
hasconsistently shown a steadfast belief in our culture
and DNA. This year we saw both a consistently strong
response rate of 83% and stable engagement at all levels
at 76%. Our commitment to building inclusive businesses
continues to yield positive results, as evidenced by high
engagement scores indicating that colleagues feel fairly
and respectfully treated (83%), which is above the
industry benchmark. It’s also reassuring to see that
people feel good about the efforts their company is
making on sustainability, scoring 66%, and ranking
among the key drivers of engagement. Another leading
factor is providing an environment where people can
beinnovative (with 68% favourability).
Fostering employee wellbeing
The satisfaction and wellbeing of our people is key to
ensuring they feel healthy, productive and engaged at
work and beyond. This year we continued to focus on
wellbeing in all its forms to ensure this happens.
Through the Employee Assistance Programme in the
US,Europe and India, employees have confidential,
complimentary access to experts to manage emotional,
financial and legal issues. We also organised several
sessions to support employees in exploring topics such as
menopause, managing grief and loss, and mindfulness.
Additionally, with the current conflict in Israel, we
launched a support hotline for our colleagues in the
country for in-the-moment support via our Employee
Assistance provider.
In the UK we introduced the YuLife app to over 2,000
employees which incentivises wellbeing by rewarding
employees for healthy behaviours like walking, cycling,
meditation and giving back to the community. Since its
October 2023 rollout, over 50% of eligible employees
havesigned up and downloaded the app with consistent
monthly and daily active usage. In China, colleagues
continued reinforcing the importance of work-life balance
and hosted its first Family Day at our newly established
Shanghai Family Park with over 70 employees and their
loved ones enjoying an immersive experience filled with
entertaining and educational activities. In India, a total
wellness programme, “Healthy You, Healthier Halma,”
ensures employees are actively engaged through physical
and team-building activities year-round. As evidence of
this workplace culture, policies and practices, the India
hub was awarded a Great Place To Work
®
certificate by
the Institute of the same name, as we celebrate our 15th
year in the region.
Ensuring our benefits remain competitive in attracting
and retaining top talent is a priority for us. In 2023,
weintroduced various enhancements to the 401(k)
retirement savings plan for our US employees.
Grassroots community
engagement
At the core of our community engagement strategy
lies a grassroots-driven approach within each
company, complemented by group-wide support
and resources. Our companies live our purpose every
day, actively participating in their communities
through tailored initiatives. By advocating for local
initiatives and assisting underserved communities,
they cultivate a profound sense of purpose in their
workforce, enriching lives and making a positive
impact where it’s needed most.
Since 2016, Lazer Safe, based in Australia, has been
supporting Action for Empowerment, an orphanage
in Zambia, Africa. In Zambia, childhood can be
challenging for many children, with approximately
10% of the population being orphaned. The
organisation strives to make a difference by
providing essential healthcare, education and care
to vulnerable children, about two-thirds of them
being girls. Early education empowers these girls
with knowledge on family planning, fostering
independence and participating in decision-making.
This grassroots approach ensures a lasting impact,
as values are passed down through generations.
Lazer Safe’s staff are deeply invested in this cause,
knowing their contributions help make a significant
difference where it truly matters.
Many other Halma companies also make a positive
impact through charitable programmes. For
example, eye care company Keeler has organised
donation drives benefiting various organisations
fighting hunger, animal cruelty and children’s
welfare. They have also donated food, toys,
eyeglasses, and surgical and cleaning supplies
tolocal charities in the USA and UK.
AAI, based in Michigan, USA has collected funds
fora local volunteer-run organisation that offers
asafe and joyful haven for burn survivors. They’ve
alsomade gift collections to support survivors of
domestic and sexual violence and to sponsor
families in need, for the first time this year,
includingtwo employees’ families.
Case study
Ian Costley, Lazer Safe President, visiting Action
forEmpowerment orphanage inZambia,Africa.
86 Halma plc | Annual Report and Accounts 2024
SUSTAINABILITY continued
Our culture of continuous improvement drives us to
regularly review our practices. Over the past six months,
we’ve extensively consulted with Managing Directors/
Presidents to understand their perceptions ofthe
programme’s value and weaknesses. This work is
culminating in a couple of imminent changes: A rebrand
to Halma Catalyst Programme, launched in April this
year, and a remodel to three eight-month rotations
starting in October. The expectation is longer rotations
would make a bigger impact, giving both our companies
and the graduates the ability to see the result of their
hard work.
Our communities
We are proud of the work we do in our communities.
Ourcompanies drive their own community engagement
programmes, and the case study on the previous page
gives some examples of these programmes in action.
Ourglobal fundraising campaigns have built on the
benefits our products deliver and provided our products
to underprivileged communities. Having completed our
partnership with Water for Life, we are now considering
options for our next global campaign.
Suppliers
Our suppliers are a key part of our value chain, and
weexpect them to act in line with our Code of Conduct
andour DNA. We are encouraging our companies to
workin partnership with their suppliers to deliver positive
outcomes for their customers and workforce, including,
where relevant, using our Group licence to EcoVadis.
Read more about how we engage with our suppliers in the
Stakeholders section on page71
Wider social metrics, including health and safety, diversity and
employee engagement, can be found in our ESG Data Supplement
at www.halma.com
For more information on how we support our people
please see:
Social, supply chain and community matters:
• Stakeholders section – pages 68 to 76.
• Non-financial & sustainability information statement
– pages 100 to 103.
Thesechanges have resulted in substantial progress
towards reducing the disparity in savings rates between
our highly compensated employees and those who are
not, as demonstrated by the successful compliance
testcarried out in December 2023. The changes also
allow all employees tosave more effectively for retirement.
We take pride in maintaining our commitment to pay
aReal Living Wage, with all our UK companies aligning
their employee pay with the rates set by the Living
WageFoundation. We also recognise that the cost of
living continues to be an issue, and our companies are
taking measures to support our colleagues. In addition,
we have introduced a new health cash plan for our
UKemployees, allowing them to claim money back
foreveryday treatments such as a trip to the optician,
dentist, physiotherapist, podiatrist and much more.
Health and safety
Looking after the wellbeing of our people is critical to
ourbusiness and a key priority for all our leaders. The
Group’s Accident Frequency Rate (AFR) for the year
was0.05. Whilst it is still relatively low and represents a
decrease against the AFR for 2023, it is greater than our
target of 0.02. We continue to promote the importance
ofhealth and safety and the role that everyone has to
help maintain a safe workplace. There were no work
related fatalities in 2024 or in prior years and details of
both the number of days lost to preventable work injuries
and recorded injuries during the year and the prior four
years are set out in the graphs. In line with the decrease
in theAFR, the days lost to preventable work injuries has
decreased by 325 days and the total recorded injuries
hasdecreased by 71 injuries.
Talent and leadership development
We remained active in our pursuit to help our companies
develop leaders at and below the company board level.
We do this through face-to-face leadership programmes,
online platforms for blended learning, coaching and
mentoring, and on-the-job experiences. A notable
achievement this year was the promotion of one-third
ofthe participants from our high-potential programme
into company board roles, including two Managing
Directors. From the start of 2024, we have observed
arisein the demand for leadership programmes with
leaders more invested and engaged in its success.
We see the successful development of young people
asakey contributor to the future of our businesses
anddelivering our purpose. Halma’s Future Leaders
(HFL)Development Programme offers new graduates
adistinctive opportunity for professional and personal
growth, empowering them to make a meaningful
impact. We continue to build a diverse pipeline of future
leaders; with 42% of all current programme participants
being women and 38% ethnically diverse. Since the
programme’s inception we’ve also hired from 25 different
nationalities. This ensures a varied array of voices and
experiences within our leadership ranks.
Days lost to
preventable
work injuries
*
130
Total
recorded
injuries to
all employees
249
2023
2024
202220212020
111
42
171
455
130
2023
2024
202220212020
360
212
283
320
249
* Specified major injury incidents are reportable incidents which result in more
than three working days lost.
Halma plc | Annual Report and Accounts 2024 87
Governance Report Financial Statements Other Information
Strategic Report
Overview
Our purpose – to grow a safer, cleaner, healthier future for
everyone, every day – drives our commitment to protect
the environment for future generations and means that
emissions reduction remains a key area offocus.
As a Group, most of our environmental footprint comes
from our wider value chain, embedded in the design of
our products and services rather than our operations.
This means that while we are committed to reducing
ouroperational emissions and impacts, we place even
greater importance on supporting our companies to
engage with their wider emissions and impacts through
activities such as sustainable design, supply chain
engagement, and climate-related opportunities
thatsupport their customers’ transitions.
Our companies recognise the ethical and environmental
benefits of more environmentally sustainable operations.
However, they increasingly find this work helps to lower
operating costs as well as helping to meet their customers’
changing environmental expectations.
Our companies’ bottom-up Sustainability Action Plans
generally include goals and actions focused on:
• Reductions in emissions through energy efficiency.
• Reductions in emissions through renewable energy,
moving to EVs, and considering alternatives to natural
gas for heating.
• Starting to engage with sustainable product design
andScope 3 decarbonisation.
• Starting to engage with supply chains on both
environmental and wider social matters.
Making progress against these goals, especially through
the supply chain, and aggregating performance and
targets at Group level, is particularly challenging within
Halma’s unique model. This is due to the diversity of
products and services, alongside the fact that each
company manages their own supply chains
andoperations.
Similarly, the relatively small size of most of our companies
limits their ability to influence their wider value chain at
scale, as they are often a small customer of their own
suppliers and logistics providers. More information on
these key challenges, limitations and dependencies in
thecontext of our Scope 3 ambitions is included on
page98 of our TCFD statement.
Scope 1 & 2
We are pleased that we have continued to see reductions
in our Scope 1 & 2 emissions, and progress towards our
renewable electricity target. We expect all of our companies
to consider how they will reduce Scope 1 & 2 emissions,
particularly through switching to renewable electricity
and increasing energy productivity, in their Sustainability
Action Plans. A summary of our Scope 1 & 2 targets,
further discussion on our progress, and examples of
ourcompanies’ work in this area is available in our
TCFDstatement on page 90 and in our more
detailedEmissions Reduction Report available at
www.halma.com.
Reduction in Scope 1 & 2 emissions
from 2020 baseline
(2023: 46% reduction)
55%
Renewable electricity
(2023: 62%)
71%
Protect our environment
Key focus area
Sustainable product design and reducing emissions
Relevant SDGs
88 Halma plc | Annual Report and Accounts 2024
SUSTAINABILITY continued
Scope 3 and the role of sustainable design
Our disclosures against the TCFD recommendations
(pages 90 to 99) give an overview of our key sources
ofScope 3 emissions, our ambition to reach Net Zero
forScope 3 by 2050 and our multiyear approach to
supporting our companies to build bottom-up Scope 3
decarbonisation plans.
For most of our companies, supply chain and upstream
transport emissions make up the bulk of their Scope 3
footprint. For some companies, emissions from the
electricity that their customers use to run their products
ismore significant. This means that for many of our
companies, concentrating on sustainable product design
and supply chain emissions are key ways to reduce their
emissions – and many of our companies are already
taking action.
Some examples of sustainable design and emissions
reductions activities in our companies are on the facing
page, and more examples are available in our Emissions
Reduction Report at www.halma.com.
We continue to consider what additional sustainable
design related Group targets could be appropriate, given
the high diversity of our products. This will need to reflect
and balance Group-led top-down goals with the bottom-
up actions of our companies.
See our TCFD statement on pages 90 to 99 for more information
about our progress against emissions reduction targets
Further detailed information about Scope 1, 2 & 3 emission sources,
targets and progress can be found in our Emissions Reduction
Report at www.halma.com
Further information on our target calculation and Scope 1, 2 & 3
reporting methodologies is in our ESG Data Basis of Preparation at
www.halma.com
Further information about our wider environmental impacts,
including waste, water and SASB disclosures, can be found in our
ESG Data Supplement at www.halma.com
For more information on other environmental matters,
including supply chain engagement, please see:
• Stakeholders section – pages 68 to 76.
• Non-financial & sustainability information statement
– pages 100 to 103.
• ESG Data Supplement (including SASB disclosures) –
www.halma.com.
Sustainable design
and emissions
reductions in action
One example of sustainable design in action is in our
Healthcare Sector, where ophthalmology specialists
Keeler made some changes to their otoscope and
ophthalmoscope handheld torch-style diagnostic
devices. Keeler has enhanced their offering to
include LEDs in place of traditional arc bulbs. A
seemingly small change given Keeler’s relatively low
emissions in use, but one that has the potential to
both reduce energy usage and waste thanks to LED
bulbs lasting several times longer than the arc bulbs.
Another example comes from a company in our
Safety Sector, Advanced, which sought to adjust its
component ordering processes by shifting from an
‘on demand’ air flown supply model to an approach
that focused on less frequent quarterly orders and
shipment of the same components by sea. While
the related emissions are only a small part of its
overall Scope 3 footprint, this is a step in the
rightdirection to both reduce their emissions for
transportation as well as saving freight costs.
An Environmental & Analysis Sector company
Crowcon is another example, having redesigned
some of its gas detectors to have extended life
spansthat reduce the need for customers to
replacethe product as often and so reduce waste.
Another benefit of the redesigned products has
been the removal of lead from the product design,
contributing to the worldwide push to reduce the
volume of lead incirculation.
Case study
Halma plc | Annual Report and Accounts 2024 89
Governance Report Financial Statements Other Information
Strategic Report
Introduction and compliance statement
Our disclosures within this Annual Report and Accounts
are consistent with the four Task Force on Climate-related
Financial Disclosures (TCFD) recommendations and the 11
recommended disclosures as required by the Listing Rules.
In preparing our disclosures, we have considered the TCFD
additional guidance for all sectors (2021 TCFD Annex).
These climate-related financial disclosures also comply
with the requirements of the Companies Act 2006 as
amended by the Companies (Strategic Report) (Climate-
related Financial Disclosure) Regulations 2022. In addition,
the Directors have considered the relevance of the risks
ofclimate change and transition risks associated with
achieving the goals of the Paris Agreement when
preparing and signing off the Company accounts.
In order to ensure our TCFD statement is proportionate
withour overall Strategic Report and business risks
andopportunities, supplementary details which are
notmaterial to our overall assessment or disclosures,
including additional details from our inaugural risk and
opportunity assessment process in 2022, are set out in
our2022 Annual Report and Accounts on pages 89 to 95.
Our 2022 Annual Report and Accounts is available
on our website at www.halma.com
Governance
Our Group management structure is simple and
lean,with only three layers – companies, sectors
andGroupteams – all of which are focused on driving
purpose-aligned growth enabling fast decision-making
and minimising bureaucracy.
Further details of our Board and management structure,
including the connections between the management
structure and the Board governance structure, are set
outin the How we are structured and How we are
governed sections on pages6 and 126.
This Governance section describes how our climate-related
governance sits within our overall governance structure.
During 2024, we further integrated our climate-related
governance into our existing strategic and risk management
processes, and this integrated structure is reflected in the
section below and in the diagram on page 106 of the Risk
management and internal controls section.
a) Describe the Board’s oversight of
climate‑related risks and opportunities.
The Board as a whole has ultimate oversight of and
responsibility for climate-related opportunities and risks
and is highly engaged on this topic. At least annually,
itreviews management’s Group-level assessment of
climate-related opportunities and risks as part of our
principal and emerging risks processes; our performance
against our sustainability strategy and our climate change
related targets; and approves any new or amended
climate-related targets. It also reviews additional
information on climate-related opportunities and risks for
relevant standalone acquisition opportunities as part of
its strategic remit. During 2024, the Board approved the
adoption of a 2050 date for our Scope 3 Net Zero ambition.
The Board also received a report on sustainability at half
of its scheduled Board meetings during 2024 and receives
an update on our progress on climate change related
actions and targets at least annually.
The Audit Committee has responsibility for approving
ouroverall TCFD disclosures as part of the Annual Report
and Accounts process. During 2024, the Remuneration
Committee continued to oversee the inclusion of
climate-related targets in executive remuneration, as set
out in our Remuneration Committee Report on page152.
Our approach to climate change
The climate emergency is one of the biggest issues facing our society and our environment. The physical impacts
of climate change are of significant concern to all of us, as individuals and as businesses.
We believe that a robust and timely low-carbon transition in line with a 1.5-degrees Celsius trajectory is highly
aligned with Halma’s purpose to grow a safer, cleaner, healthier future for everyone, every day and therefore a
significant source of potential growth opportunities for our companies. Alongside this, climate change presents
potential transition and physical risks for Halma. However, as set out further in this Statement, on balance we
believe that pursuing potential climate-related opportunities, which are highly aligned with our purpose and
long-term growth drivers, should be the focus of our strategic response.
TCFD in the context of our business model
Our approach to sustainability, risk management and
climate aligns with our Sustainable Growth Model.
We have a highly decentralised organisational model
that places our operational resources close to our
customers through locally managed, autonomous
and agile companies.
We have a diverse portfolio of companies who operate
in highly diverse markets across diverse geographies.
Our model means that we typically have a diverse
customer base, products and supply chains.
This business model enables our companies to
respond quickly to changing markets and events,
andcompany boards are empowered to make
strategic decisions within Halma’s framework.
Find out more about our decentralised
Group structure onpage6
90 Halma plc | Annual Report and Accounts 2024
TCFD STATEMENT
c) Describe the resilience of the organisation’s
strategy, taking into consideration different
climate‑related scenarios including a 2°C or
lowertemperature scenario.
Background to risk and opportunity assessments
Materiality
We currently use financial materiality (as set out on
page184), as well as considering reputational and
regulatory impacts, to make decisions about the
potential materiality of climate-related risks and
opportunities andthe appropriate level of detail to
include in our TCFD disclosures. We also consider
proportionality with the rest of the Annual Report
andAccounts and our principal risks. We assess this
ona“net basis” after consideration of mitigating
factorsor actions in place.
As we continue to integrate sustainability risks and
opportunities into our Enterprise Risk Management
framework, and prepare for IFRS sustainability
disclosuresand changes to governance requirements,
weare reviewing our definition of materiality. This is
toensure it is fit for purpose across strategic, financial,
operational, compliance and sustainability risks and
opportunities, and appropriately flexed to account for
risks and opportunities arising over the long term.
Timeframes
We consider the following timeframes in assessing
climate-related risks and opportunities:
Timeframe Period Rationale for timeframe
Short
term
0-3 years Annual strategic planning process and
viability assessment.
Medium
term
3-10 years Useful life of most premise leases and
assets. Timeframe for major product and
market shifts.
Long
term
10-30+ years Sustainable Growth Model and M&A
assessment timeframes.
Scenarios
We identified and assessed climate-related opportunities
and risks using the three high-level, qualitative, narrative
scenarios shown in the table below. These scenarios were
prepared in 2022 and our scenarios and scenario based
analysis will be refreshed in 2025. The scenarios were
selected due to their alignment with the relevant
Representative Concentration Pathways (RCPs) and
Shared Socioeconomic Pathways (SSPs) which feed
intothe International Panel on Climate Change (IPCC)’s
global, economy-wide assessment process. Sector-
specific scenarios would not have been appropriate
forHalma’s diversified model.
Given our assessment outlined below that climate-related
risks are unlikely to have a material impact on the
business, and the significant diversity of opportunities
available, we will continue to review whether and in what
contexts quantitative scenario assessment may be able
to provide additional useful information for investors.
b) Describe management’s role in assessing
and managing climate‑related risks
and opportunities.
The Executive Board (including the Chief Sustainability
Officer who is also a Sector Chief Executive) is responsible
for identification and management of climate-related
opportunities and risks at the Group level.This responsibility
has transferred from the Sustainability Management
Committee as a result of thefull integration of
climate-related risk management into theEnterprise
RiskManagement process, and the Sustainability
Management Committee is no longeractive.
The Sector Chief Executives, who are part of the
ExecutiveBoard, are responsible for identification
andmanagement of climate-related opportunities
andrisks at the sector level.
During 2024, the Executive Board and Sector Chief
Executives reviewed the key climate-related risks identified
in 2022 as part of our annual Principal and Emerging Risks
processes (see Risk Management section).In addition,
theExecutive Board reviews and inputs into the continued
development and rollout of our sustainability strategy,
which encourages our companies to pursue climate and
sustainability-related business opportunities. The Executive
Board receives an update on our sustainability agenda at
least quarterly, including an update on our progress on
our Scope 3 decarbonisation planning (see box on page
98), and during 2024 recommended the adoption of a
2050 date for our Scope 3 Net Zero ambition to the Board.
The Executive Board and Sector Chief Executives are
alsoinformed about and monitor climate-related issues
through informal updates and discussions, as relevant
topics arise, with the Sustainability function and/or
external advisers.
Each company board is responsible for identifying and
managing climate-related opportunities and risks at
thecompany level, reflecting our decentralised, agile
andautonomous business model.
Strategy
Like all businesses, Halma is exposed to potential
transition and physical risks associated with climate
change, as outlined further in this Statement. However,
given the potential scale of climate-related opportunities,
our strategic response is primarily focused on developing
and pursuing these opportunities over the short to
medium term.
a) Describe the climate‑related risks and
opportunities the organisation has identified
over the short, medium and long term.
b) Describe the impact of climate‑related risks and
opportunities on the organisation’s businesses,
strategy and financial planning.
Halma plc | Annual Report and Accounts 2024 91
Governance Report Financial Statements Other Information
Strategic Report
Scenario
IPCC
alignment
Approx
temp
increase
(2100) Key narrative points
Steady
Path to
Sustainability
SSP 1/
RCP 2.6
1.5°C Globally coordinated
decarbonisation efforts from the
early 2020s through to Net Zero
emissions by 2050.
Late Policy
Action
SSP4/
RCP 4.5
2°C Delayed disorderly transition with
individual states, corporations and
individuals taking drastic but
divergent action to limit emissions.
Fossil-fuelled
Growth
SSP 5/
RCP 8.5
4°C Extremely limited decarbonisation
efforts leading to strongly
increased physical climate risks.
Transition planning
In addition to the information provided in this Statement,
we are continuing to develop our formal transition plan,
taking into account the guidance from the UK’s Transition
Plan Taskforce. This year, the box on page 98 contains
additional disclosures on our Scope 3 decarbonisation
planning to give context to our ambition to reach Scope 3
Net Zero by 2050. More information on our GHG
reduction targets is in the Targets and Metrics section.
Opportunities
Our assessment of climate‑related opportunities
We continue to believe that in aggregate, climate-related
product and market sub-opportunities (both organic
andinorganic) will become material for the Group over
the medium to long term (3-30+ years). Given that
theseopportunities are only expected to be material
inaggregate, not individually, we refer to individual
opportunities as ‘sub-opportunities’ in this Statement
forclarity.
Our initial assessment, carried out in 2022, was supported
by top-down qualitative scenario analysis, which identified
multiple potential organic and inorganic sub-opportunities
within our existing Environmental & Analysis and Safety
Sector strategies. These included new products and
technologies, as well as greater demand for existing
product lines
1
. Where relevant, companies continue to
identify and develop climate-related sub-opportunities
intheir annual strategic planning cycles.
A small selection of potential sub-opportunities, where
Halma already had a market presence at the time of
theinitial assessment, are described in the table below
inorder to give some detail on the types of potential
sub-opportunities that could be available to Halma
companies. Given the diversified nature of Halma’s
business model and our companies’ markets, and the
bottom-up nature of how our companies investigate and
pursue sub-opportunities, these are illustrative only, and
material financial impacts would only be expected at an
aggregated level (across multiple sub-opportunities being
pursued by multiple companies).
Please see the box on page 93 for more examples of
climate‑related sub‑opportunities
Our strategic response to climate‑related opportunities
Our approach to climate-related opportunity identification
and pursuit reflects our purpose-led Sustainable Growth
Model (see pages 26 to 35), and the highly granular,
diverse and early-stage nature of sub-opportunities.
Ourapproach contrasts with a more centralised
decision-making, prioritisation and target setting approach
which would not be appropriate within our business model.
Examples of potential climate‑related sub‑opportunities over the medium to longer term
2
Description Most relevant scenarios Potential financial impact
Clean water leak detection, recycling and reuse All – physical climate change driving increasing water scarcity. Increased profits
from growing
revenues and/or
higher margin
opportunities
(organic and
inorganic).
Stormwater and wastewater management All – physical climate change driving increasing storm and
flooding events.
Energy efficiency related building
improvements and retrofits
1.5 degrees – increase in pace and scale of building retrofits
required to meet Net Zero targets.
Industrial refrigerant detection 1.5 degrees – phase out of HFC based refrigerants and
introduction of low GHG potential refrigerants.
Methane detection and leakage prevention 1.5 degrees – reducing methane emissions as a key lever to
mitigate near-term temperature rises.
Growth in hydrogen usage 1.5 degrees – increasing use of hydrogen in diverse applications,
requiring detection and management.
Growing renewable energy, energy storage and
other energy transition and Net Zero related
end markets
1.5 degrees – rapid expansion of renewable energy and electricity
end markets for existing Safety and Environmental & Analysis
products, as well as new markets.
1 In order to support our assessment that these sub-opportunities could be significant in aggregate, quantitative and qualitative data in relation to a number of
scenarios were considered internally for a selection of the sub-opportunities. However, we do not believe that it would be appropriate or practical to disclose potential
quantified financial impacts for the aggregate impact from climate-related opportunities. This is because there is a high degree of uncertainty about which specific
sub-opportunities will become most impactful, and our aggregate opportunity is likely to be distributed across a high volume of small sub-opportunities. Given
Halma’s dual organic and inorganic growth strategy, potential sub-opportunities to participate in the Net Zero transition could be highly varied both in terms of
the scale of the sub-opportunities, and the cost of accessing them. In many cases, it will also be difficult to identify the profits that arise from climate mitigation/
adaptation as separate from our wider growth drivers including increasing environmental regulation, efforts to address waste and pollution, and increasing demands
on life-critical resources.
2 This table is not exhaustive and may not represent the individual sub-opportunities which are likely to become most significant over time.
92 Halma plc | Annual Report and Accounts 2024
TCFD STATEMENT continued
Company level:
• Talented people throughout the organisation seek and
pursue most relevant sub-opportunities.
• Autonomous and agile individual companies can rapidly
take advantage of sub-opportunities.
• R&D and capital expenditure budgets are set from the
bottom up.
Sector and Group level:
• Focus on increasing education and awareness around
low-carbon transition and adaptation opportunities
within sectors.
• Low-carbon transition and adaptation sub-opportunities
are considered in the development of M&A strategies.
• Level of alignment with the low-carbon transition is
explicitly considered for relevant standalone acquisitions.
In 2023, we made three standalone acquisitions which
had market sub-opportunities aligned with a low-carbon
transition, including WEETECH, Deep Trekker and FirePro.
More information on those acquisitions is available in our
2023 Annual Report and at www.halma.com. In 2024, our
standalone acquisitions were mostly neutral with regards
to low-carbon transition opportunities (with three of the
four acquisitions being in healthcare and specialised
worker safety). However, Sewertronics, acquired in May
2023, adds to our capabilities in addressing wastewater
management with a lower carbon and more
environmentally friendly method of pipe repair.
Although climate opportunities and risks are not yet
uniformly incorporated into board discussions across all
companies, an increasing number of companies are
actively investigating climate-related sub-opportunities.
See the box below for more information and examples.
Case study
Increasing opportunities from enabling
climate mitigation and adaptation
Most of the climate-related sub-opportunities that our
companies may pursue are enabling the low-carbon
transition or enabling adaptation to climate change.
This is where our companies supply technology or support
products and services that contribute towards the
overall transition, alongside their customers’ actions
and technologies and alongside other providers.
For example, multiple companies are pursuing
opportunities to supply fire, worker and other safety
and sensing equipment for renewable electricity
generation and distribution, battery installations,
low-carbon transport and hydrogen applications.
Oneof our companies provides sensors that enable
recyclers to achieve high-speed, precise sorting of
aluminium scrap. Some of our water companies supply
sensors to help utilities detect stormwater overflows
and leaks in the water network, as well as equipment
to enable them to repair pipes faster.
As an example of a sub-opportunity, Crowcon, a gas
sensing company in our Environmental & Analysis
Sector, has identified a strategic growth opportunity
across a variety of low-carbon transition applications.
This includes supplying detectors that detect hydrogen
in electrolyzer installations (which create “green”
hydrogen), at hydrogen refuelling stations, and
otherhydrogen transportation and use cases.
Crowcon have designed their newest generation of
fixed detectors to enable hydrogen detection as well
asreducing the need for scheduled maintenance –
meaning their sensors automatically detect hydrogen
leaks to keep people and property secure for many
years at a time.
An additional area of focus is their work to produce
detectors that can also detect hydrogen and other
offgasses within lithium battery energy storage
installations, providing early warning of thermal
runaway and potential explosions or fires in these
otherwise volatile settings.
This sub-opportunity is growing from a very low revenue
base and is not expected to be material to Crowcon
within the next three years, and would not be material
to the Group in its own right. However, Crowcon
considers these climate-related markets as a key
strategic initiative that they expect to contribute to
theirgrowth over their next three-year strategic
planning cycle.
A Crowcon Xgard bright gas sensor installed
inaHydrogenRefuelling Station
Halma plc | Annual Report and Accounts 2024 93
Governance Report Financial Statements Other Information
Strategic Report
Risks and resilience
Our assessment of climate‑related risks
andresilience
Like all businesses, Halma is exposed to both transition
and physical climate risks. Having assessed the potential
significance of multiple risk categories in 2022, and
considered potential impacts from Scope 3 work in 2023
and 2024, we continue to conclude that there are no
material individual climate-related risks arising for
Halmain the short to medium term (0-10 years).
See more information on how we reassess climate‑related risks
annually and how we considered Scope 3 in 2023 and 2024 on page
95 in the Risk Management section of this Statement
Over the longer term (10-30+ years), we identified physical
and transition-driven supply chain impacts, as well as
business model and communication risks, as potentially
having a higher impact on the business compared to
theother climate-related risks assessed, due to the
higherlikelihood of underlying risk events under
transitionscenarios.
Nevertheless, we do not currently expect these risks to
become material, as our business model and strategy
isexpected to be resilient to climate-related risks and
exposed to climate-related growth opportunities.
Our resilience stems from our highly diverse, agile and
decentralised business model (see page 6), as well as
ourability to provide products and operate in sectors
expected to thrive in a low-carbon economy.
Key factors which also reduce the level of inherent
climate-related risk include the diversification of the
Group’s products, markets (including low exposure to
highly impacted markets), geographies and first tier
supply chains, the inherent resilience and agility of
theGroup’s business model, our pricing resilience
andourasset-light model.
More information is available on page 105 of the Risk management
and internal controls section. Fuller details on resilience are
included in our 2022 Annual Report and Accounts on page 93, and
are not repeated here in the interest of proportionate disclosures.
Within our overall assessment of our business model’s
climate resilience, the ‘late policy action’ scenario
createsthe largest potential challenge for Halma over
themedium to long term, particularly in relation to
navigating rapid and divergent regulatory, disclosure and
stakeholder expectation changes within our decentralised
business model. In this scenario, however, we would
expect significant transition related growth opportunities.
Over the longer term, a ‘fossil-fuelled growth’ scenario
would create increasing operational and supply chain
challenges, and fewer climate-related opportunities for
Halma. However, we believe this scenario is the least likely
outcome given momentum and progress already made
on the energy transition – which is expected to support
Halma’s future growth.
Our response to climate‑related risks
Taking the above factors into account, we have not
identified climate change as a standalone principal risk
for the Group, but have included the potential impact
ofclimate-related issues as drivers, modifiers or
accelerators to existing principal risks where relevant
1
.
In addition, we have incorporated the three
climate-related risks that were identified as most
potentially impactful over the longer term into our
emerging risk landscape. The table below shows the
potential directional impacts and key mitigating actions
for these risks. As part of our emerging risk landscape,
they are subject to annual review and monitoring.
More information is available on pages 104 to 107 of the
Risk management and internal controls section
Climate‑related emerging risks over the long term
Risk category & description
Potential financial impacts (not currently
expected to have a material impact on
financial position or performance)
2
Key mitigating actions
Physical supply chain disruption: Increasingly severe
extreme weather events could reduce availability of
materials and components and/or interrupt
transportation and logistics.
• Increased materials, logistics
or other supply chain related
costs.
• Revenue disruption.
• Our companies continue to manage their
supply chains, supported where appropriate
by our Group Growth Enablers.
Transition‑induced supply chain risks: Increased
costs (including from carbon pricing) and constrained
material/component availability resulting from the
low-carbon transition.
• Increased materials, logistics
or other supply chain related
costs.
• Revenue disruption.
• Our companies continue to manage their
supply chains, supported where appropriate
by our Group Growth Enablers.
• Scope 3 emission measurement and target
setting.
Business model and communications: Meeting
increasing or shifting stakeholder, regulatory and
reporting expectations within our decentralised
business model. This includes reputational and other
risks that may arise from efforts to reach and maintain
Scope 3 Net Zero.
• Decreased valuation or
reduction in available capital.
• Increased costs or business
model changes.
• Continued commitment to transparency in
our reporting.
1 Despite our assessment that these risks are not likely to be material, at 31 March 2024 we continue to subject balance sheet items to detailed review against our
climate-related risks, including goodwill, acquired intangible assets and PP&E. As set out in the Critical accounting judgements and key sources of estimation uncertainty
section of the Accounting Policies of the Accounts (page 202), there were no indicators of impairment identified or adjustments made as a result of these reviews.
2 As none of these risks are currently expected to have a material impact on financial position or performance, we do not disclose granular descriptions of potential
impacts (for example relating to geographies, business units, or sectors in which we operate). As we refresh our scenario analysis and continue to keep these emerging
risks under annual monitoring, we will consider what additional, more granular information may be appropriate to disclose if the potential impacts or likelihoods are
significantly increased.
94 Halma plc | Annual Report and Accounts 2024
TCFD STATEMENT continued
As set out in the Risk Management section of these
disclosures, we continue to reassess the potential impact
of climate-related risks on an ongoing basis. They may
become more significant over time if new information
becomes available or we have significant changes to
ourstructure.
Given our risk assessment, we do not outline additional
details on our strategic response to climate-related risks
or risk related metrics and targets within this Statement.
In addition, we do not expect to carry out quantitative
scenario analysis on these risks or disclose their quantified
financial impacts, unless our assessment of their
materiality changes as a result of our ongoing risk
management process.
Risk Management
a) Describe the organisation’s processes for
identifying and assessing climate‑related risks.
b) Describe the organisation’s processes for
managing climate‑related risks.
c) Describe how processes for identifying, assessing
and managing climate‑related risks are integrated
into the organisation’s overall risk management.
The Risk management and internal controls section on
pages 104 to 107 sets out our overall risk management
system, in which climate-related risks are identified
andmanaged. This system includes ‘bottom-up risk
assessment’ and ‘top-down principal and emerging
risks’frameworks.
Climate integration into bottom‑up processes
Companies, sectors and functions identify opportunities
and risks on an ongoing basis and, more formally, as part
of their annual strategic reviews where they assess how
these are currently controlled and whether any further
actions are required. As set out on page 105 of the Risk
management and internal controls section, there has
been a continued focus on enhancing the quality of risk
discussions at the company board level. This bottom-up
process enables climate-related opportunities and risks
tobe captured, and includes an annual request for our
companies to consider climate-related risks.
We continue to support our companies to improve their
ability to capture bottom-up climate-related risks by
integrating climate-related risks into the overall risk
landscape in a more prominent manner. Nevertheless,
aslargely small to medium-sized companies, they may
not all be fully capturing and managing transition and
physical risks, particularly over the medium to longer
term. For example, the companies do not currently
utiliseclimate scenario analysis.
However, we generally do not expect climate-related
risksarising at the individual company level to create a
significant risk to the Group as a whole, because of the
decentralised and diversified nature of Halma. Therefore,
we continue to believe this lighter-touch approach is
appropriate at the Company level.
Climate integration into top‑down processes
In 2022 we assessed the significance of potential
climate-related opportunities and risks as part of a
standalone process, using largely qualitative scenario
analysis, at the Grouplevel over the short, medium
andlong term. Eight potentially relevant risk categories
wereassessed:
Transition risks Physical risks
Supply chain Supply chain disruption
Business model and
communications
Operational interruption
Products and markets
M&A and portfolio strategy
Skills, talent and information
Regulatory environment
Our assessment included analysis of potential impacts
across different geographies and markets/sectors.
Weintend to review the conclusions from the 2022
assessment and update our scenarios during 2025.
More details on our 2022 standalone assessment, as well as
moreinformation for the remaining risk categories not shown
asemerging risks in the table on page 94, is available on pages
89to95 of our 2022 Annual Report and Accounts. In the interest of
proportionate disclosures, this information has not been reproduced
in this Statement to conserve space for more relevant and timely
disclosures and due to the very low potential impact of those risks
compared to our principal risks.
The continued assessment and management of the
Group-level risks identified in 2022 is integrated into our
top-down principal and emerging risk process, which
includes an annual review of those climate-related risks
that have been added to the emerging risks landscape.
Inparticular, the Executive Board reviews whether there
have been major changes to either the risk drivers or
mitigating factors for each of these three emerging risks
which may increase potential impacts or likelihood.
See pages 106 to 107 in the Risk management and
internal controls section for more information on our
top‑down principal and emerging risks process
We assess the relative importance of climate-related
opportunities and risks at the Group level by comparing
qualitative potential impact and likelihood with the
samescales used to assess principal risks. This qualitative
process includes a high level, directional assessment of
financial impact as well as reputational, regulatory and
other impacts (including considering existing and
emerging regulatory requirements).
2024 and 2023 updates
In 2023, we reassessed the potential materiality of
‘transition related supply chain risks’ and ‘product and
market risks’ as we screened and estimated baselines for
our Scope 3 emissions, which are set out in the Metrics and
Targets section. This included a quantitative and qualitative
assessment of carbon pricing risks within our supply chain.
Many of the risk mitigating considerations outlined earlier in
this Statement, including the diversification of the Group’s
geographies and first tier supply chains and our pricing
resilience, influenced our assessment.
Halma plc | Annual Report and Accounts 2024 95
Governance Report Financial Statements Other Information
Strategic Report
In particular, we noted that approximately 60% of our
product-in-use emissions baseline is related to only one
company which contributes approximately 1% of Group
revenue. This company sells products which have high
energy usage to meet customer needs. This work did not
result in any change to the risks identified in our original
risk assessment performed in 2022.
In 2024, we confirmed our intention to reach Net Zero
forScope 3 by 2050, reinforcing the importance of this
goal internally and acknowledging that we will be highly
dependent on wider economy decarbonisation to meet
this. We have not yet set supporting short-term targets,
and we are taking a multiyear approach to requiring our
decentralised companies to create bottom-up
decarbonisation plans.
See the box on page 98 for more information on our Scope 3
decarbonisation planning.
Based on the information available to us from Scope 3
decarbonisation planning so far, we carried out a
qualitative assessment of risks that could arise from
confirming a 2050 date for our Scope 3 Net Zero
ambition, including quantitative assessment of potential
neutralisation costs. This did not indicate any required
change to our original risk assessment. However, we
haveadded risks related to our Scope 3 ambition to our
‘Business model and communications’ climate-related
emerging risk, in order to keep this under annual review
and monitoring. As we develop our Group transition plan
further, we will assess whether there may be increased
risks created by our commitment to decarbonisation.
Metrics and Targets
a) Disclose the metrics used by the organisation
to assess climate‑related risks and
opportunities in line with its strategy and risk
management process.
We disclose total GHG emissions in line with the TCFD
cross-industry metric guidance, as set out below.
Although we have not identified our Scope 1 & 2 emissions
as a material risk, 5% of executive bonuses are currently
linked to an energy productivity target that supports
achievement of our Scope 1 & 2 targets (outlined below),
as set out in our Remuneration Report on page152.
We do not consider that most of the other suggested
cross-industry metrics are currently appropriate for our
business model and the nature of our opportunities
andrisks.
Given our assessment that climate-related risks do not
pose a material risk to our business model, we do not
currently intend to disclose the amount or percentage of
assets or activities vulnerable to transition or physical
risks. We will continue to consider the use of an internal
carbonprice, if relevant, as we develop our Scope 3
transition plan.
We do not currently use any centralised or cross-industry
metrics to manage climate-related opportunities. Where
individual businesses and sectors identify climate-related
opportunities, they may use specific metrics to track their
progress against these, in line with our decentralised
model and the granular, diverse and early-stage nature
ofthe sub-opportunities.
As our climate governance process evolves and we
increase centrally available climate-related information
over time, we may be able to disclose other opportunity
metrics where relevant.
b) Disclose Scope 1, Scope 2, and, if appropriate,
Scope 3 greenhouse gas (GHG) emissions and
therelated risks.
c) Describe the targets used by the organisation to
manage climate‑related risks and opportunities
and performance against targets.
Scope 1 & 2 emissions
Reporting and targets
Our Scope 1 & 2 emissions, calculated in accordance with
the GHG protocol, are disclosed in the SECR-compliant
table at the bottom of this Statement. Our Scope 1 & 2
emissions profile is fairly simple, and at approximately 18
ktCO
2
e in our 2020 baseline year, is small compared to
the FTSE 100 average and only c.2% of our total baseline
greenhouse gas footprint.
We apply internal audit processes to our Scope 1 & 2
emissions, and are reviewing what level of external
assurance may be appropriate considering our business
and the way we use these metrics.
Despite not identifying our Scope 1 & 2 emissions as a
material risk, we have targets in place to reduce our
emissions in line with stakeholder expectations. These
targets are outlined in the table at the bottom of this
Statement and include a Net Zero by 2040 and a 1.5
degree-aligned interim 2030 target, set according to the
guidance from the Science Based Target initiative (SBTi)
2
.
Our company boards continue to annually refresh
theirown Sustainability Action Plans, and focus on their
achievement. These include their bottom-up Scope 1 & 2
emissions reduction plans. A high level summary of
performance against our targets is included in the
tablebelow.
Full details on the definitions of our Scope 1 & 2 targets,
ourcurrent and historic performance against them, and
narrative discussion about key emission sources, milestones
and key levers required to reach these targets is disclosed
inour Emissions Reduction Report available at
www.halma.com. This level of detail is not included in
ourStrategic Report in the interests of proportionate
disclosures, given the low materiality of our emissions.
Scope 3 emissions
Baseline estimate
During 2023, we worked with an external consultant to
estimate our Scope 3 baseline (2020) emissions. Figures
were calculated for all relevant categories in accordance
with the GHG protocol and using acceptable Scope
3 methodologies, but as these figures are heavily reliant
on assumptions and estimates they may be recalculated
in the future as data availability and accuracy improves.
96 Halma plc | Annual Report and Accounts 2024
TCFD STATEMENT continued
We estimate that 2020 Scope 3 emissions were
approximately 0.95 m tonnes CO
2
e, or c.98% of our total
baseline greenhouse gas footprint.
The main components of this footprint are as follows:
• Supply chain (including upstream transport and
distribution): approximately 0.34 m tCO
2
e
(c.35%oftotal 2020 baseline emissions).
• Products’ use phase: approximately 0.58 m tCO
2
e
(c.59% of total baseline) – with approximately 60% of
these emissions relating to one company comprising
approximately 1% of Group revenue, which sells
products which have high energy usage to meet
customer needs.
2024 estimate
We faced significant difficulties and data limitations, due
to our decentralised business model, when estimating our
2020 Scope 3 baselines from the bottom up. Therefore,
we believe that to re-model Scope 3 emissions on the
same bottom-up basis annually would require undue
costand effort for limited useful additional information
provided for our stakeholders. As a result, during 2024 we
created a methodology to enable a high level annual
estimate of Scope 3 emissions.
Using this methodology, total Scope 3 emissions in 2024
were estimated at approximately 1.05 m tonnes CO
2
e,
up11% compared to our 2020 baseline. Our two main
components, supply chain (including upstream transport
and distribution) and products’ use phase were estimated
to increase 20% to approximately 0.41 m tCO
2
e and 6% to
approximately 0.61 m tCO
2
e respectively.
These increases reflect our methodology which largely
relies on scaling our baseline emissions in line with growth
in inflation adjusted revenues and operating costs, with
more granular data based on current emissions factors
only supplied by a small number of companies. The mix
ofrevenue and operating costs growth impacts the
estimates, along with data improvements in 2024
compared to the baseline. We were also pleased to see
one of our larger contributors to products’ use phase
emissions increasing the proportion of sales from more
energy efficient products.
Greenhouse gas data and commentary on greenhouse gas and energy performance
Scope 1 & 2 targets 2020 baseline 2023 2024 Commentary
Long term:
Net Zero by 2040
1
Medium term:
42% reduction by 2030
from 2020 baseline
2
% % % This medium-term target, which has already been exceeded, is aligned
with1.5 degree Science-based Target guidance
2
. The continued reduction
from our 2020 baseline is largely due to increasing renewable electricity
purchases, alongside energy efficiency measures and changes to our
companies’ operations. More detail is set out in our Emissions Reduction
Report at www.halma.com.
Short term:
80% renewable
electricity by 2025
3
% % % The improvement is driven by bottom-up company-led purchase and
generation of renewables. Approximately 94% (2023: 94%) is local
renewable tariffs, largely backed by Energy Attribute Certificates (EACs),
orunbundled EACs. Onsite electricity generated increased by 19%
year-on-year, comprising the remaining 6% (2023: 6%).
Annual:
At least 4% energy
productivity
improvements on a
cumulative basis from
FY22
4
N/A % % Since FY22, we have seen a c.19% increase in revenue (adjusted to remove
the effects of currency movements and acquisitions) while energy
consumption (adjusted on the same basis) has remained almost flat.
Changes in energy consumption reflect various operational changes and
investments, including premise moves and expansions, energy efficiency
measures at a number of our companies, and a number of elements
outside our control (ie weather fluctuations in some geographies).
Scope 3 ambition (ktCO2e) 2020 baseline 2023 2024 Commentary
Long‑term ambition:
Net Zero by 2050
5
Estimated:

N/A Estimated:
,
11% increase since 2020 baseline. Please see commentary in the Metrics and
Targets section above.
1 Market-based calculation of Scope 2 emissions. Our Net Zero target is aligned with guidance from the Science Based Targets initiative (SBTi). We will reach Net Zero by
reducing emissions as much as is feasible before using carbon removal instruments. We do not expect to utilise carbon offsets, as set out in our Emissions Reduction
Report at www.halma.com.
2 From 2020 baseline. Market-based calculation of Scope 2 emissions. This target is aligned with guidance from the Science Based Targets initiative (SBTi) and is an
absolute measure aligned with the non-sector specific 1.5-degree emissions pathway. This target has not been verified, as SBTi verification requires our target to
include Scope 3.
3 Current year renewable % reflects the full year impact of acquisitions and disposals made during the period. Comparative figures are not updated for the impact of
acquisitions and disposals made in subsequent periods.
4 Revenue/energy consumed. Annual straight line increase from 2022. Due to the inclusion of this metric in remuneration, it is calculated on a different basis to Scope
1 & 2 emissions and renewable electricity percentage. Revenue is adjusted to a constant currency basis, and both revenue and energy are adjusted to exclude all
acquisitions in the current and prior period. This target was set using the EP100 initiative minimum commitment (to double energy productivity over 25 years).
5 Not aligned with guidance from the Science Based Targets initiative (SBTi). Please see further commentary in Metrics and Targets section above.
Halma plc | Annual Report and Accounts 2024 97
Governance Report Financial Statements Other Information
Strategic Report
Our plans to transition to a low‑carbon
economyandScope3decarbonisation plans
We operate globally and are committed to achieving Net Zero for our entire value chain. Our decentralised
model– in which our companies have a high degree of strategic and operational autonomy – as well as our
companies’ highly diversified products and markets, bring unique challenges to creating a transition plan for
Scope 3 decarbonisation.
Our formal transition plans are still under development,
considering guidance from the Transition Plan
Taskforce and TCFD. However, this section outlines our
current direction of travel and what we have learned
from our progress this year. These learnings and our
approach are expected to continue to change as we
execute on our near-term activities.
We have not identified our own emissions as a material
risk to Halma, and our Scope 1 & 2 emissions are very
small. This section therefore focuses on Scope 3 –
c.98% of our baseline footprint – where we have set
anambition to reach Net Zero by 2050 and where we
have the largest challenges to decarbonisation. See
theMetrics and Targets section for more information
on our targets, and our Emissions Reduction Report at
www.halma.com for more information on our plans to
reduce Scope 1 & 2 emissions, including our approach
to renewables and offsets.
Near to mid‑term objectives
Our ambition is to establish decarbonisation planning
to 2030 at the company level, where most feasible
andrelevant, to:
• Ensure initial real-world emission reduction
actionsare underway.
• Assist us in setting interim targets to support our
2050 Scope 3 Net Zero commitment.
• Understand key decarbonisation levers and
challenges and identify the key dependencies and
assumptions that will underpin our transition plans
and potential alignment of our 2050 Net Zero
commitment with the SBTi’s guidance.
We aim to balance a pragmatic and achievable
approach for our largely small to medium-sized
companies with the transition plan and reporting
requirements expected by external stakeholders.
Our multiyear approach to bottom‑up
decarbonisation planning:
• In 2024, five companies, representing a significant
portion of our 2020 estimated emissions baseline,
created initial high level Scope 3 decarbonisation
plans to 2030 utilising Group guidance and tools.
• In 2025, using the learnings from the first
fivecompanies, we are building on the initial
decarbonisation plans and engaging with a
largergroup of companies, covering the
majorityofestimated baseline emissions.
• We currently expect to expand engagement on
Scope 3 decarbonisation planning to remaining
companies, where relevant and feasible, from
2026 onwards.
Key decarbonisation levers, challenges,
assumptions and dependencies:
The initial five bottom-up decarbonisation plans
identify multiple actions the companies can take
intheperiod to 2030. These include product design
changes to reduce electricity usage and reduce/
changematerials, and engagement with key
suppliersandcustomers.
However, as expected, the companies have identified
challenges that introduce significant uncertainty and
limit visibility on a trajectory to 2050 Net Zero. These
include relative lack of influence over suppliers and
customers, expected levels of organic growth making
absolute emissions reductions challenging, and
limitations to product design changes due to the high
level of regulation and certification of our products.
In addition, achievement of our 2050 Net Zero
commitment is likely to be highly dependent on
manyfactors outside our control or influence.
Someofthese dependencies surfaced by the
initialfivebottom-up decarbonisation plans include
sector-wide decarbonisation of multiple globally
tradedcomponents (such as electronics, plastics
andmetals), grid decarbonisation, customers’
switchto renewable electricity and supportive
productstandards and policyenvironments.
98 Halma plc | Annual Report and Accounts 2024
TCFD STATEMENT continued
We recognise the limitations in this methodological
approach, but we believe the most effective allocation of
our resources is to creating company-level decarbonisation
plans that our companies can implement with conviction,
and increasing reporting granularity and accuracy for the
most significant emission reduction opportunities over
time. We currently expect to carry out a fuller bottom-up
modelling of emissions on a periodic basis, including
re-estimating our baseline to reflect better data and
methodologies and enabling us to capture the current
and baseline impact of recent acquisitions.
Full details of our reporting methodology can be found in
the Basis of Preparation document at www.halma.com.
Full details of all categories of Scope 1, 2 & 3 baseline
and2024 emissions, as well as more information on the
limitations and caveats associated with these estimates,
are available in our Emissions Reduction Report at
www.halma.com, given this is not material information
toinclude in our TCFD Statement.
Targets
As explained above, our 2020 Scope 3 baseline estimate
confirmed our assessment that Scope 3 emissions are
notexpected to constitute a material risk for Halma.
However, in order to provide a strong direction internally
and show commitment externally, we are setting our
ambition toreach absolute Net Zero for our Scope 3
emissions by2050.
This long-term ambition encompasses all categories of
Scope 3, and we expect that we will aim for the greatest
amount of decarbonisation possible before any use of
offsets. Achieving our ambition will be highly dependent
on economy-wide decarbonisation, and as we develop
our transition plan to understand more about our levers
and dependencies, we will determine whether we can
align with the SBTi’s standard for Scope 3 Net Zero, which
includes the requirement for a 90% reduction in absolute
emissions (from our 2020 baseline) followed by
permanent neutralisation.
As set out in the box opposite, we have a multiyear
approach to developing bottom-up Scope 3
decarbonisation plans with our companies, to enable
usto set short-term Scope 3 targets and develop our
group-wide transition plan. In the meantime, multiple
Halma companies are already taking action to reduce
Scope 3 emissions from their products and supply chains.
Please see examples in our Emissions Reduction Report at
www.halma.com.
Greenhouse gas data and commentary on greenhouse gas and energy performance (continued)
CO
2
e emissions (tonnes) from:
2024
(current year)
2023
1
(comparative
year)
2020
1
(baseline year)
Scope 1
2
, , ,
Scope 2: Location-based
3
, , ,
Scope 2: Market-based
3
, , ,
Total Scope 1 & 2: Location-based , , ,
Of which UK , , ,
Total: Scope 1 & 2: Market-based , , ,
Of which UK , , ,
Energy consumption in MWh used to calculate above emissions , , ,
Of which UK , , ,
Intensity ratio (market-based)
4
. . N/A
Scope 3: Annually calculated categories
5
, , ,
7
Scope 3: Total including remaining estimated categories
6
,, N/A ,
SECR data reporting methodology and scope (excluding estimated Scope 3 categories):
We have reported on all the emission sources required under the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report)
Regulations 2018. We have employed the Operational Control definition to outline our carbon footprint boundary; included within that boundary are Scope 1, 2 & 3
emissions from manufacturing sites and offices which we own and/or operate. Excluded from our footprint boundary are emissions from manufacturing sites and offices
which we do not own and/or operate and emissions considered non-material by the business. We have used the GHG Protocol Corporate Accounting and Reporting
Standard (revised edition) and the Environmental Reporting Guidelines (March 2019) including Streamlined Energy and Carbon Reporting (SECR) guidance published by
the UK’s Department for Business, Energy & Industrial Strategy (BEIS). Full calculation and reporting methodologies for all emissions and energy data, as well as further
information on our Scope 3 estimation methodologies, can be found in our Basis of Preparation on our website at www.halma.com.
1 Our Scope 1 & 2 (market-based) GHG emissions for the year ended 31 March 2020 form the baseline for our science based target. Given the acquisitive nature of Halma,
we have chosen to apply a 5% base year threshold for the structural change trigger of acquisitions and disposals. This year the threshold for recalculation was exceeded
and we have represented our baseline and comparative figures. We do not recalculate Scope 3 annually calculated emissions for acquisitions and disposals, and have
not re-estimated our Scope 3 baseline in the current year.
2 Included in Scope 1 are GHG emissions from direct fuel combustion at our sites, refrigerants and from fuel use in our company-owned or leased vehicle fleet.
3 Electricity purchased for our own use. Market-based is net of market instruments.
4 Total Scope 1 & 2 (market-based) emissions divided by revenue. Prior to 2024, we included annually calculated Scope 3 emissions in this metric. These have now been
excluded as we report against all relevant Scope 3 categories, which include estimates. We do not show a recalculated intensity measure for our 2020 baseline.
5 Scope 3 categories 3, 5 and 6. 2024 Scope 3 annually calculated emissions reflect the continued recovery in business travel following restrictions during the pandemic.
We do not recalculate Scope 3 annually calculated emissions for acquisitions and disposals.
6 Estimated as explained further in our Statement above, and in our Emissions Reduction Report and ESG Data Basis of Preparation document at www.halma.com.
Neither our 2024 figures or our baseline have been recalculated for acquisitions and disposals in 2023 and 2024, given data limitations. As explained above, we expect
to do a fuller bottom-up estimate on a periodic basis to enable us to include the impact of our multiple small acquisitions.
7 We do not recalculate Scope 3 for acquisitions or disposals. Updated to reflect detailed Scope 3 baseline re-calculation.
Examples of energy efficiency measures undertaken during the year by our companies included enhancements to operational efficiencies, LED lighting and motion
sensors, improving HVAC controls and removal of inefficient equipment and installation of heat exchangers.
Halma plc | Annual Report and Accounts 2024 99
Governance Report Financial Statements Other Information
Strategic Report
In compliance with the Non‑Financial & Sustainability Reporting requirements contained in Sections 414CA and 414CB
of the Companies Act 2006, the table set out below, and the information it refers to, is intended to help stakeholders
understand our position on key non‑financial matters. The description of our business model can be found on pages 28
to 35 and stakeholder engagement information can be found on pages 68 to 76.
Policies Due diligence, implementation andoutcomes
Environmental and climate
Halma’s Environmental Policy
1
and our Environmental
Commitment statement
2
setout our guiding principles
and commitments for both
internal and external audiences.
Halma’s Environmental Policy has been set by the Board, and our Sector Chief Executive,
Environmental & Analysis and Chief Sustainability Officer has principal responsibility for
coordinating and monitoring.
We encourage our companies and their suppliers to improve energy productivity, reduce water
consumption, waste and emissions and, in terms of materials, to reduce or make more efficient use
of them. Focusing on our sustainability pillar of Protecting our environment will help us limit our key
environmental impacts including energy consumption, GHG emissions and hazardous and other
waste production. Our energy use and emissions performance can be found in the TCFD Statement
on page 97 and in more detail in our ESG Data Supplement at www.halma.com.
All Halma companies are encouraged to undertake an ISO 14001 environmental management
accreditation, where warranted. We collate data from our companies every two years to estimate
the proportion of the Group’s sites that are covered by an ISO 14001 accreditation and will do so
again in 2025. For 2023, the estimate was 20% of sites, contributing 24% of revenue (2022: 17%
sites, 22% revenue).
More information on our programmes to reduce our environmental impact and data is available in
the Sustainability section on page 80 and on our website.
Our assessment of and response to climate‑related risks and opportunities can be found in our
TCFD Statement on pages 90 to 99.
Risk:
• Natural Hazards, including Climate Change –
page114
Non-financial KPIs:
• Reduction in Scope 1 & 2 emissions
– page43
Anti-bribery and corruption
Halma has a zero‑tolerance
policy on bribery and corruption,
as set out in its Anti-Bribery
and Corruption Policy
1,3
, which
extends to all business dealings
and transactions in which the
Group is involved. This includes
aprohibition on making political
donations, offering or receiving
inappropriate gifts or making
undue payments to influence the
outcome of business dealings.
Our policy and guidance in this area is well understood, routinely reviewed and compliance is
checked as part of the half year and year end control process. There are set criteria for any
gifts,hospitality, entertainment and charitable donations including that any gifts, hospitality,
entertainment or charitable donations in excess of the thresholds set out in the policy must
receiveset pre‑approval and be recorded in the Gifts and Hospitality Register.
We require customers and suppliers who contract on our standard business terms to comply with
anti‑corruption and anti‑bribery laws and any suspected breaches of compliance with this policy
can be reported through the whistleblowing reporting service.
Online anti‑bribery and corruption compliance training is mandatory for senior management,
allcompany board directors and other key business personnel. Over 650 employees completed
anti‑bribery and corruption training during the year ended 31 March 2024.
Risk:
• Non‑compliance with Laws and Regulations – page113
100 Halma plc | Annual Report and Accounts 2024
NONFINANCIAL & SUSTAINABILITY INFORMATION STATEMENT
Policies Due diligence, implementation andoutcomes
Employees
The Code of Conduct
2
(Code)
aims to ensure that Halma
maintains consistently high
ethical standards globally, while
recognising that our companies
operate in markets and
countries with cultural
differences and practices. It is
issued to all Halma employees
and published on our website.
Halma has a group‑wide
Whistleblowing Policy
2,3
which
applies to all employees and
Halma operations as well as
joint venture partners, suppliers,
customers and distributors
relating to our companies.
Our Health and Safety Policy
1
requires companies to manage
their activities in a way which
avoids causing unnecessary or
unacceptable risks to health
and safety and provides clear
guidelines for our companies
onmanaging health and
safetyrisks to ensure a safe
work environment.
Our Diversity and Inclusion
Policy
2
sets out our
commitment to building
inclusive and diverse companies.
Our Equal Opportunities
Policy
1
is a Group policy which
promotes equal opportunity for
all employees and job applicants
and aims to create a working
environment in which all
individuals are able to make the
best use of their skills, free from
discrimination or harassment.
Code of Conduct
Each officer or employee who joins the Group is required to acknowledge that they have read the
Code and understood its importance.
Whistleblowing
All whistleblowing reports are appropriately investigated and concluded. The Audit Committee
receives details of any reports relating to financial misconduct and the Board receives an overview
of reports relating to people and culture.
We have an independent third‑party reporting line, NavexGlobal, for individuals to raise concerns
that they are either not able to do so through other channels or would prefer to raise anonymously.
Details about the confidential reporting service are available in our Whistleblowing Policy and in the
Code (both available on our website, www.halma.com) and SharePoint sites, and are prominently
displayed on posters within all of our Group and company locations.
Health and Safety
The Board monitors health and safety performance, which is collected through the central
financial consolidation system, at every meeting.
In the event of any accident, the company in which the accident occurred is to review the relevant
root cause and ensure that preventative measures are taken, including further training and
education of their employees.
In line with Halma’s autonomous structure, operational responsibility for compliance with local
health and safety regulations, including that of suppliers, resides with the board of each company.
However, we routinely monitor health and safety performance across the Group and companies
are encouraged to seek continuous improvement and to promote a strong health and safety
culture. Companies are required to carry out an independent health and safety review every three
years to assess compliance and to ensure that there is a consistent and adequate level of reporting
and investigation of health and safety incidents across the Group. In addition, our lead global
insurer reviews employee and third‑party safety and controls at four to five properties per year as
part of their rotational assessments.
During the year ended 31 March 2024 over 850 employees completed our Group online health and
safety training programmes.
Our companies are encouraged to certify to the ISO 45001 or BS OHSAS 18001 standard, a
minimum standard for occupational health and safety management best practice. We collate
data from our companies every two years to estimate the proportion of the Group’s sites that are
covered by ISO 45001 or BS OHSAS 18001 accreditation and will do so again in 2025. For 2023, the
estimate was 17% of sites, contributing 17% of revenue (2022: 15% sites, 16% revenue).
Diversity and Inclusion
We have identified Diversity, Equity and Inclusion (DEI) as a key societal issue in which Halma can
have a strong positive impact. DEI is one of our key focus areas within our Protecting our people
sustainability pillar.
Further information on health and safety, employee wellbeing and engagement, diversity and
inclusion, gender pay gap and training and development, including metrics, can be found in the
Sustainability section on page 84 and in our ESG data supplement, available at www.halma.com.
Page 29 details Halma’s cultural genes and DNA.
Risk:
• Talent and Diversity – page108
Non-financial KPIs:
• Accident Frequency Rate – page43
• Employee Engagement % – page 42
• Company board gender balance –
page43
Halma plc | Annual Report and Accounts 2024 101
Governance Report Financial Statements Other Information
Strategic Report
Policies Due diligence, implementation andoutcomes
Social
Halma has a group‑wide Data
Protection Policy
1
and
Guidance which requires our
companies to comply with six
keydata protection principles:
Lawfulness, Fairness and
Transparency, Purpose Limitation,
Data Minimisation, Accuracy,
Storage Limitation and Integrity
and Confidentiality.
The Group has a policy on
Competition Law
1
which is
applicable to all employees.
We have a Conflict Minerals
Policy
1
which gives guidance to
all companies on how to
determine whether any of the
four minerals, or their derivatives,
classified by the US government
as “conflict minerals” are
contained in any product.
Code of Conduct
2
, as
detailedabove.
Code of Conduct
We expect our external business partners and suppliers to be aware of the Code of Conduct
andapply similar ethical standards in their operations. Each of our companies is responsible for
monitoring the standards of their business partners and suppliers.
Data Protection
Under the Data Protection Policy, all companies are required to have their own Privacy Policy in
placewhich is tailored to their business and local law, relating to the categories of individuals whose
personal data they process. Privacy Policies and security measures are required to be reviewed at
least annually and tested where appropriate. Our companies are also required to ensure appropriate
and robust clauses are included in any contracts with third parties where personal data will
bedisclosed.
Competition Law
Our companies must confirm that the relevant people in their business are familiar with the
Competition Compliance manual as part of the half year and year end control process. Online
anti‑competition compliance training is mandatory for senior management, all company board
directors and other key business personnel. Over 450 employees completed competition law training
during the year ended 31 March 2024.
Conflict Minerals
Our companies are responsible for managing their own supply chains, which includes complying with
conflict mineral due diligence requests from their customers where applicable, supported by Group
guidance to do so. A number of our companies already confirm that their supply chains are conflict
mineral‑free, including a number of our largest companies. Historically, we have not collated data on
these policies or procedures centrally.
Product safety
Our companies take pride in the quality of their work and are committed to the highest levels of
quality and safety standards at every stage of the product life cycle. Given the significant diversity
oftypes of products and end markets, responsibility for complying with relevant product safety
andquality requirements and obtaining relevant accreditations and certifications sits with the
local,legally constituted company boards. We collate data from our companies every two years to
estimate the proportion of the Group’s sites that are covered by an ISO 9001 quality management
accreditation and will do so again in 2025. For 2023, the estimate was 62% of sites, contributing 75%
of revenue (2022: 60% sites, 70% of revenue).
Further information on the positive role we play in society can be found in the following sections of
this Report.
• Sustainability – page 77
• Business reviews – page 50
102 Halma plc | Annual Report and Accounts 2024
NONFINANCIAL & SUSTAINABILITY INFORMATION STATEMENT continued
Policies Due diligence, implementation andoutcomes
Human rights
Halma is committed to
conducting its business ethically
and in line with all relevant
legislation including human
rights laws. Halma has
published Modern Slavery
ActStatements
2
since
September 2016, which detail
the progressive steps taken
annually to tackle modern
slavery and human trafficking.
Halma’s Human Rights and
Labour Conditions Policy
2,3
reflects the core requirements
ofthe Universal Declaration of
Human Rights and the Group
observes the International
Labour Organization (ILO)
Declaration on Fundamental
Principles and Rights at Work,
including the conventions
relating to forced labour, child
labour, non‑discrimination,
freedom of association and
right to collective bargaining.
The Group Chief Executive has overall responsibility for ensuring that human rights considerations
areintegral to the way in which existing operations and new opportunities are developed and
managed. Compliance with, and respect for, these fundamental principles are integrated
throughoutour organisation.
All companies have been provided with a detailed guidance note to raise awareness of the Modern
Slavery Act and the issue of modern slavery in business and supply chains. Each company is required
to consider the potential issue of modern slavery and human trafficking within their business and
supply chain and may take varying approaches, such as supplier due diligence, questionnaires and
the use of terms and conditions, according to their specific circumstances.
Online compliance training on the Modern Slavery Act has been rolled out to senior management,
allcompany board members and other relevant employees across the Group. Over 650 employees
have completed this training during the year ended 31 March 2024. This is an important tool in
assisting our business management in raising awareness of the issues and understanding their
responsibilities in their operations.
Our companies continue to take their own approaches to supply chain engagement, and we
expectto give additional support over time, particularly to our smaller companies, as they continue
to manage modern slavery risks going forward. Some of our companies have had some success
onboarding their key suppliers onto the EcoVadis platform, which assesses suppliers against all
aspects of their treatment of their people. However, we have found that a centralised supplier
engagement platform is not fit for purpose for most of our small companies and we are reviewing
our approach to encouraging our companies to improve environmental and social supply chain
engagement in 2025.
Our Modern Slavery Act Statement can be found at www.halma.com.
Managers and supervisors must provide leadership that promotes human rights as an equal priority
to other business issues. All employees are responsible for ensuring that their own actions do not
impair the human rights of others, and are encouraged to bring forward, in confidence, any concerns
they may have about human rights.
Risk:
• Non‑compliance with Laws and Regulations – page113
1 Available to all employees of Halma and our companies. Not published externally.
2 Available both on our website at www.halma.com and to employees of Halma and our companies.
3 Included within our Code of Conduct.
The Strategic Report was approved by the Board of Directors on 13 June 2024 and signed on its behalf by:
Marc Ronchetti
Group Chief Executive
Steve Gunning
Chief Financial Officer
Cautionary note: this Strategic Report has been prepared solely to assist shareholders to assess the Board’s strategies and their potential to succeed. It should not be
relied on by any other party, for other purposes. Forward looking statements have been made by the Directors in good faith using information available up until the date
that they approved the Report. Forward looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks.
Halma plc | Annual Report and Accounts 2024 103
Governance Report Financial Statements Other Information
Strategic Report
Managing risk and leveraging
opportunities to achieve our
sustainable growth strategy
Our approach to risk management
Effective management of risks enables us to leverage
opportunities to achieve our strategic goals and provides
a solid foundation from which our businesses can grow.
Whilst there is a group-wide framework and approach
torisk management, as described in this section, our
decentralised business model empowers every employee
and every business at Halma to identify and manage risks
and take advantage of opportunities. Our risk management
approach is underpinned by a risk awareness culture
which allows management to make better commercial
decisions, deliver our sustainable growth strategy
andmaximise the benefits of our decentralised
businessmodel.
Key evolutions in the year
• Enhancing our approach to emerging risks: We’ve
focused on enhancing and refining our emerging
risksframework, ensuring it evolves in tandem with
theever-changing risk landscape. At the core of this
framework lies a structured mechanism for consistent
monitoring, allowing us to track the trajectory of
emerging risks over time. Each emerging risk has
beenassigned dedicated owners at the Executive
Boardlevel, along with a comprehensive strategy
forcontinuous monitoring throughout the year.
Theseappointed risk owners oversee the emerging
risksand their evolution and implement appropriate
riskmitigation strategies asneeded.
Read more on our Emerging risks on page107
•
• Strengthening our crisis management approach:
Recognising the imperative of resilience in the face of
adversity, we’ve focused on reviewing and enhancing
our crisis management protocols across all levels of
theorganisation. Central to this endeavour was a
comprehensive evaluation of our crisis response plans,
which were tested during a crisis tabletop exercise
conducted with the Executive Board and in collaboration
with an expert external crisis management firm. This
exercise, which was focused on a cyber incident scenario,
served as a test for our preparedness, enabling us to
identify and address opportunities for improvement
inour crisis response mechanisms. A critical aspect
ofthis review involved a thorough examination
ofourescalation procedures, ensuring seamless
communication throughout the Group and swift
decision-making in times of crisis. Furthermore,
wereviewed and refreshed our network of external
partners to ensure we have strong external support
incrisis scenarios.
• Resilience analysis: We have further articulated
thepillars of Halma’s resilience with the purpose of
identifying Halma’s resilience drivers. This framework
will support the regular monitoring and comprehensive
assessment of the factors whose evolution might
impact these drivers in the future, which ultimately
helps us ensure continuous adjustment of the risk
management approach.
See more on our Resilience drivers within the panel to the right
104 Halma plc | Annual Report and Accounts 2024
RISK MANAGEMENT AND INTERNAL CONTROL
Halma’s resilience drivers
Halma’s strategy and Sustainable Growth Model
enable a high level of resilience to risks. As the Group
evolves, some of the resilience risk factors might
alsostrengthen or weaken, hence we monitor such
evolutions to understand how these might impact
the overall Group risk profile and, when needed,
adjust the risk management approach accordingly.
Below a description of Halma’s key resilience drivers:
Model
• Sustainable growth drivers: investing in markets
with resilient and regulation-driven long-term,
fundamental and highly sustainable growth drivers.
• Strong internally generated liquidity through
aclear financial framework of strong organic
growth and margins, high returns and cash
generation, combined with an asset-light model.
• Diverse and high performing talented people with
entrepreneurial mindsets ensure diversity of
thoughts and effective decision-making.
Read more on our Sustainable Growth Model on page26,
and on our Talent Philosophy on page24
Agility
• Companies’ intimacy with the customers/markets
and their agility enables them to quickly flex and
adapt to changes in the market.
• Companies are nimble and able to flex and adapt
to changing operational needs by managing
overheads and adapting their supply chains.
Portfolio
Halma benefits from a high degree of diversification
through the large number of companies and their
variety. This is underpinned by:
• Product and industry diversification.
• Market, distribution channels and customer
diversification.
• Operational footprint diversification and
independent operational setups.
• Supply chains diversification.
• Quality risk discussions: Continuing to focus
onenhancing the quality of risk discussions at the
companies board level and increasing the inclusion
ofopportunities within those discussions,
whereappropriate.
• Internal control environment: Following the publication
of the revised UK Corporate Governance Code, we
areenhancing our focus on further formalisation and
review of our internal control environment whilst
findingopportunities to streamline it to ensure it
remains fit-for-purpose, closely aligned to our model
and to our risk appetite. The focus on this area will
continue in the next year.
• Further integration of sustainability and climate-
related risks into the group-wide risk management
approach: During 2024, we incorporated sustainability
and climate-related governance into our overall
riskmanagement process and reporting. This further
enhancement in our approach helps us identify, evaluate
and mitigate various risks more comprehensively while
maintaining an efficient process and avoiding
duplication of efforts.
Read more on our TCFD Statement on page90
Halma plc | Annual Report and Accounts 2024 105
Governance Report Financial Statements Other Information
Strategic Report
Risk appetite
The risk appetite review is a foundational element of our
risk framework as it provides guidance to management
on the amount and type of risk we seek to take in
pursuing our strategic objectives. To identify the level
ofrisk appetite we have towards our principal risks,
wehave four defined risk appetite categories.
• Averse: We have little appetite for risk and will seek
tominimise our exposure and avoid uncertainty.
• Cautious: We have an appetite for some risk but
preferoptions that have a low degree of downside.
• Open: We are open to taking risks after considering
potential options, and will choose options that have
agreater likelihood of success and offer an acceptable
level of reward.
• Seeking: We are willing to proactively take risks and
bemore innovative to achieve higher returns, despite
the higher inherent risks.
The risk appetite statements are approved by the Board,
which also reviews the level of risk appetite associated
with our principal risks annually, recognising that risk
appetite will change and evolve over time. Principal
risksare assessed against their risk appetite to evaluate
whether further risk mitigation actions should be taken
toensure that the risk levels remain within the Board’s
riskappetite.
Risk management process
As in prior years, each company within Halma identifies
risks and opportunities as part of their annual strategic
reviews, assesses their likelihood and impact, evaluates
existing risk mitigations and assesses whether any further
actions are required. A similar exercise is performed at
sector and Group level as part of the Group’s “bottom-up”
risk assessment process.
Our “top-down” approach focuses on reviewing our
principal risks and takes into account the results of the
bottom-up risk assessment, the emerging risk review
andthe Executive Board perspectives.
Our risk and control governance framework
The graphic below illustrates the structure of our governance framework. For more details on the role and responsibility
of the Board and its Committees, refer to the Corporate Governance Report section on page126.
Board
Overall responsibility for risk/opportunities and for mitigating risk/opportunities to ensure Halma achieves its strategic objectives
Remuneration Committee
Executive and senior management
remuneration framework and
workforce remuneration policies
Audit Committee
Oversight and challenge of the
effectiveness of risk/opportunities
process and assurance activities
Nomination Committee
Board composition,
evaluation and succession
Executive Board
Accountability for the management of risk/opportunities and for mitigating risks/leveraging opportunities
Sector boards
Risk & Compliance
and otherGroup functions
Internal Audit & Assurance
Company boards Growth Enablers
1st line of defence 2nd line of defence 3rd line of defence
Risk & Opportunities
Management/
Group oversight,
IA&A, External
Audit
Monitoring and
reporting
Information &
communication
Policies procedures
and guidance
Control activities
Risk/
Opportunities
assessment
Risk
appetite
Governance & culture, delegation, resources,
oversight, communication
Accountability, performance & reporting
Assurance
Control Environment
106 Halma plc | Annual Report and Accounts 2024
RISK MANAGEMENT AND INTERNAL CONTROL continued
02
05
03
06
09
10
11
12
08
01
07
Very low risk
High risk
Very high risk
Medium risk
Low risk
04
Type of risk
Strategic
Operational
Legal & Regulatory
Financial
Principal risk
01 Talent and Diversity
02 Innovation
*
03 Economic and Geopolitical Uncertainty
04 Cyber and IT Interruption
05 Acquisitions and Investments
06 Organic Growth
07 Non-compliance with Laws and Regulations
08 Natural Hazards, including Climate Change
09 Business Model and its Communication
10 Product Failure or Non-compliance
11 Liquidity
12 Financial Controls
The assessment of the principal risks, the risk appetite,
mitigating actions and the evaluation of potential
emerging risks are reviewed and approved by the Executive
Board. The Audit Committee reviews the effectiveness of
the process, whilst the Board reviews and approves the
principal risks, the risk appetite and evaluates whether
the risks are managed within the risk appetite assigned
tothem. Any actions to improve how we manage our
principal risks are captured and tracked to completion in
our integrated risk, control and assurance software. Risk
mitigations are periodically audited by the Internal Audit
& Assurance Team.
During the year, deep-dive risk analyses are performed
onspecific areas to assist the Executive Board in their
strategic decision-making. These areas included specific
elements of principal risks, such as cyber and geopolitical
risk. The risk deep dives and their outcome are integrated
into the wider risk management approach and process.
Emerging risks
We consider emerging risks as part of our risk management
review process and as part of the everyday management
of the business. In addition to the day-to-day management
of such risks, we conducted a specific review to assess
theevolution of the emerging risks landscape over the
short (0 to 3 years), medium (4 to 10 years) and long
(10+years)periods.
The review was informed by:
• Emerging risk factors identified at company and sector
level during the bottom-up assessment process.
• Leading external thought leaders’ views on global
emerging risks.
• Insights from Executive Board members on emerging
risks trends.
Whilst a number of potential emerging risks were
monitored and assessed during the review this year,
suchas the speed of change in technology, increasing
regulation on data and AI, erosion of social cohesion,
andclimate-related risk (see also TCFD Statement
sectionat page90), currently, none of these is
expectedto become future principal risks.
Refer to our TCFD statement section on page90
The outcomes of the emerging risk assessment have been
discussed with and reviewed by the Executive Board and
by the Board. We will continue to monitor the evolution
ofemerging risks and reassess the landscape at least on
an annual basis.
Our risk profile and principal risks
Below is a visual representation of Halma’s risk profile,
showing the level of residual risk and the risk type for
each principal risk. We also use Halma’s risk profile as
abasis for our scenario analysis, including those used
inthe long-term Viability statement.
During the year, no new principal risks were identified,
and a few movements in existing principal risks levels
aredisclosed and explained in the next section.
Allrisksremain within Halma’s risk appetite.
Refer to our Viability statement on page118
* The title was streamlined to “Innovation” (previously
“Innovation & Digital”) as “digital” is one of the key
enablers of innovation, together with sustainability.
This aspect is captured in the reworded risk description.
Halma risk profile
Halma plc | Annual Report and Accounts 2024 107
Governance Report Financial Statements Other Information
Strategic Report
01. Talent and Diversity
Risk Owner:
Group Talent, Culture and
Communications Director
Inherent risk level:
Residual risk level:
Residual risk change:
No change
Risk appetite: Open
Risk and impact
Not having the right talent and diversity
at all levels of the organisation to
deliver our strategy whilst embodying
Halma’s cultural genes, resulting in
reduced financial performance or
reputational damage.
For more information on our talent
and diversity-related targets, see
the “Employee engagement”, and
the “ Diversity, Equity & Inclusion”
KPIs on pages 42 and 43.
Risk evolution
One year after the Group Chief
Executive and Chief Financial Officer
transitions, the inherent risk related
tothis change is deemed to have
lowered, and the residual risk
significantly mitigated. External
challenges in finding the right
expertisewithin our businesses and
atthe Group level remain consistent
with the prior year. Several initiatives
are targeting this challenge to provide
companies with enhanced support.
Weare making progress on our
“company board gender balance”
target although at a slower pace
thanplanned, especially within our
companies’ boards. Several mitigating
measures are being implemented to
improve diversity at companies’ board
level, including expertise on diversity
recruitment to support the identification
of diverse candidates for company
board positions. Overall, the risk level
remains in line with the prior year.
How do we manage the risk?
We have comprehensive recruitment processes to recruit the
brightest talent, including the “Future Leaders” programme
toattract and develop graduates into future leadership roles.
Group provides specialised support to Sectors and Companies
ondiversity recruitment to support the identification of diverse
candidates who can fill board positions.
We use a defined competency and potential model and tools
forselection and assessment of leaders, including fit with Halma
Cultural DNA and required technical skills (eg sustainability,
digital, legal, finance, etc). Onboarding plans for company
boardlevel and above support the onboarding of new leaders.
The Senior Management reward structure is aligned with
strategic priorities of companies, sectors and Group and
DEItargets. Periodic review of reward packages to ensure
competitiveness, benchmark with the market and
alignmentwith high long-term growth.
An Annual Performance and Development Review process is in
place for sector and Executive Board members. The Nomination
Committee reviews succession and development plans annually.
A strategic review of sector board and company leadership
talent is performed annually to identify and develop future
leaders, including through development programmes (eg MDs,
future leaders programme, HiPo development programme for
future MDs/leaders and for managers), to give us a competitive
advantage and ensure that we have highly effective and
motivated leaders to deliver our strategy.
An annual employee engagement survey is carried out to provide
insight into employee sentiment, including alignment between
strategy and objectives and clarity to employees about their
contribution towards achieving objectives. Insights are actioned
to ensure continuous improvement.
Very high Very low
Type of risk
Strategic
Operational
Legal & Regulatory
Financial
108 Halma plc | Annual Report and Accounts 2024
PRINCIPAL RISKS AND UNCERTAINTIES
02. Innovation
Risk Owner:
Group Chief Executive
Inherent risk level:
Residual risk level:
Residual risk change:
Decreased
Risk appetite: Seeking
Risk and impact
Failing to innovate to create new high
quality products to meet customer
needs whilst capturing digital and
sustainability growth opportunities,
orfailure to adequately protect
intellectual property, resulting in
alossof market share and poor
financialperformance.
For more information on our
innovation related target,
see the “Research & Development”
KPI on page42
Risk evolution
Risk remains high at an inherent
level,consistent with the prior year, to
reflect the risk of missing sustainable
and growth opportunities due to
inadequate execution. However,
thesuccessful embedment of the
innovation capabilities and mindset
inthe companies reduces the likelihood
of missing the growth opportunities,
leading to a lower residual risk compared
to the prior year, although itstill
remains at a high level.
How do we manage the risk?
Companies have autonomy in identifying and pursuing
innovative initiatives in alignment with their business and
strategy. Product development is devolved to our operating
companies who are closest to the customer, with support
andguidance provided by sector management.
Companies are encouraged to develop and protect intellectual
property, and focus on talent and retention to ensure there is
sufficient expertise within the business.
Sectors promote active collaboration between companies
toidentify and share innovative digital and sustainable ideas,
potential opportunities, ways of working (eg agile, lean)
andbestpractices between companies through innovation
champions network and partnerships, conferences,
developmentprogrammes.
Sectors also play a key role in reviewing R&D budgets and
projects to ensure that the spend effectively supports the
growthstrategy in targeted markets.
Sector M&A activity is also targeted to help address innovation
and R&D gaps, in line with sector-specific initiatives.
Key R&D and innovation metrics, such as R&D investment as a %
of revenues, are periodically reviewed at a Sector and Group level
to measure positive impact.
03. Economic and Geopolitical Uncertainty
Risk Owner:
Group Chief Executive
Inherent risk level:
Residual risk level:
Residual risk change:
Increased
Risk appetite: Cautious
Risk and impact
Failure to anticipate or adapt to
macroeconomic and geopolitical
changes, resulting in a decline in
financial performance and/or an
impact on the carrying value of
goodwill and other assets.
Risk evolution
During the year, the inherent
risklikelihood has risen due to
themacroeconomic environment
continuing to remain challenging,
theincreasing geopolitical complexities
and their high velocity. Halma has very
limited direct exposure to geographies
with high geopolitical risk, however it
could potentially sufferfrom collateral
impacts.
The increase in residual risk captures
the potential short-term impact of
macroeconomic headwind, however
the overall residual risk remains at
amedium level.
Overall, Halma remains resilient to
thechallenging macroeconomic
outlook through its model, agility
anddiversified portfolio.
Refer to Halma’s resilience
factors on page105
How do we manage the risk?
The diverse portfolio of companies across the sectors, in multiple
countries and in relatively non-cyclical global niche markets with
secular long-term growth drivers helps to minimise the impact
ofany single event.
Monitoring mechanisms are established at Group, sector and
company levels, including:
• Regular monitoring and assessment of emerging trends
andpotential risks and opportunities relating to economic
orgeopolitical uncertainties.
Read more on our Emerging risks on page107
• Monitoring of end-market exposure and changes in key
endmarkets due to macroeconomic factors.
• Monitoring of financial warning signs through KPIs review
which gives earlier indications of potential problems.
Halfyearly assessments of the carrying value of goodwill
andother assets are performed.
In line with Halma’s model, the risk is managed at the local
company level through decentralised decision-making and
autonomy to rapidly adjust to changing circumstances.
Thecompanies have robust credit management processes
inplaceand operations, cash deposits and sources of funding
inuncertain regions are kept to a minimum.
The Group provides continuous support to company boards
andDCEs to navigate geopolitical changes (including when
these changes are triggered by disorderly low-carbon transition
scenarios). Halma’s financial strength and availability of pooled
resources in the Group can be deployed, if needed, to further
mitigate the risk.
Halma plc | Annual Report and Accounts 2024 109
Governance Report Financial Statements Other Information
Strategic Report
04. Cyber and IT Interruption
Risk Owner:
Chief Technology Officer
Inherent risk level:
Residual risk level:
Residual risk change:
No change
Risk appetite: Averse
Risk and impact
Inability to operate IT systems or
connected devices due to internal
orthird-party failure (eg in managing
ERPchanges or Digital Transformation
Programmes), or cyber attack,
resulting in business interruption,
lossof information, and/or financial
and reputational damage.
Risk evolution
The inherent risk level remains very
high due to the continuously evolving
landscape of external cyber threats.
However, it is mitigated to a medium
level, in line with the prior year,
throughto the continuous delivery
ofenhancements in the control
framework. Specifically, this year
sawthe finalisation of our security
upgrade programme, which was also
successfully audited by an external
specialised auditor, crisis management
framework improvements, and an
enhanced focus on third-party risk
assessment process.
Refer to the “Key evolutions in the
year” on page104
The scope of this principal risk was
expanded beyond cyber to include
risksrelated to IT infrastructure
updates (eg ERP changes and
digitaltransformation programmes).
However, the cyber risk component
isstill the main driver of the
overallrating.
How do we manage the risk?
Cyber risk is owned by the CTO at an executive level, who
periodically updates the Board and Audit Committee.
All employees are required to comply with the IT Acceptable
UsePolicy. Regular online IT awareness training is provided for
allemployees who use computers.
A group-wide IT framework is in place, periodically reviewed
andincludes cyber risk policies and procedures. Companies
confirm the effectiveness of their most critical IT controls
(including documented and tested disaster recovery plans
forcritical systems and infrastructure) every six months
throughtheInternal Control Certification process. The
InternalAudit&Assurance Team periodically and
independentlyteststhesecontrols.
Central and local IT resources maintain and share updated
technical knowledge.
The Halma Technology Team provides several critical services
that are mandated, centrally procured and managed to
mitigatecyber risk across the Group. These include endpoint
andidentity protection, firewalls, attack surface management,
email scanning, penetration testing, vulnerability management,
and a 24x7 security operation centre to monitor and respond
tocyber incidents.
Group-wide Incident Management Policies and Crisis Plans are in
place. Should a cyberattack occur, provision is in place to access
global external cyber expertise.
Very high Very low
Type of risk
Strategic
Operational
Legal & Regulatory
Financial
110 Halma plc | Annual Report and Accounts 2024
PRINCIPAL RISKS AND UNCERTAINTIES continued
05. Acquisitions and Investments
Risk Owner:
Group Chief Executive
Inherent risk level:
Residual risk level:
Residual risk change:
Decreased
Risk appetite: Open
Risk and impact
Failing to achieve our strategic growth
target for acquisitions and investments
due to insufficient opportunities being
identified, poor due diligence or poor
integration, resulting in erosion of
shareholder value.
For more information on our
inorganic growth target, see the
“Acquisition profit growth” KPI
onpage39
Risk evolution
The reduction in the risk level is mainly
due to external and internal factors.
From an external factors standpoint,
Halma’s acquisition strategy, which is
focused on the long-term time horizon
and targets not-for-sale businesses,
and Halma’s financial strength, are
proving to be effective in the current
high interest rate environment.
From an internal factors standpoint,
we are experiencing the benefits of
continuous investments in our internal
processes and capabilities, which result
in increased effectiveness in managing
the acquisition and investment process.
How do we manage the risk?
Acquisitions are a core pillar of Halma’s growth strategy;
hencethe Group has a clear strategy that allows us to take
advantage of new growth opportunities through the acquisition
of companies in our existing or adjacent markets. Key controls
inthis area include:
• Regular reporting of the acquisition pipeline to the Executive
Board and the Board. All acquisitions are reviewed and
approved by the Group Chief Executive, Chief Financial
Officerand Board.
• Dedicated M&A Directors who support the sectors in
theiracquisition strategy, from pipeline development
andmonitoring to the delivery of the acquisition.
• A robust due diligence process is carried out for all
acquisitions by experienced staff who bring in specialist
expertise as required, and low-carbon transition risk and
opportunity reviews are built into our standalone M&A
process. An M&A playbook of procedures and standard
templates are in place to ensure effective and efficient
execution of the M&A process.
• Strategic transformation plans and clear processes are in
place for new acquisitions to enable them to achieve their
growth potential whilst integrating into the Group (including
from a control framework and compliance perspective).
• Internal Audit reviews are performed within six and 12 months
of acquisition to assess the effectiveness of the required
control framework for standalone acquisitions.
• Post-acquisition reviews are performed for all acquisitions
bythe responsible DCE after 12 months to ensure strategic
objectives are being met and to identify learnings for
futureacquisitions.
• Minority equity investments are assessed through the lenses
of Halma’s investment framework and executed in line with
an established acquisition process which ensures an
appropriate level of assessment and oversight.
Halma plc | Annual Report and Accounts 2024 111
Governance Report Financial Statements Other Information
Strategic Report
06. Organic Growth
Risk Owner:
Group Chief Executive
Inherent risk level:
Residual risk level:
Residual risk change:
No change
Risk appetite: Open
Risk and impact
Failing to deliver desired organic
growth, resulting in missed expected
strategic growth targets and erosion
ofshareholder value. This risk includes
potential impacts from the Net Zero
transition on our supply chain.
For more information on our organic
growth target, see the “Organic
revenue growth” and “Organic profit
growth” KPIs on pages 38 and 39.
Risk evolution
During the year, the delivery of the
organic growth targets has been
challenged by the short-term impact
of a higher level of macroeconomic
and geopolitical risk (see principal
risk03). This made the achievement
ofour short-term organic growth
targets harder, however the ability
tofulfil strategic growth targets
remains strong.
How do we manage the risk?
Halma has a clear Group strategy to achieve growth targets
through the organic growth of Halma’s companies, which is
accelerated by the Halma Growth Enablers and the Halma DNA.
The remuneration of companies’ executives and above is based
on profit growth.
Companies achieve organic growth through the continuous
focus on the development of an agile business model and
aculture of innovation to take advantage of new growth
opportunities as they arise. Company strategies are reviewed
and challenged by the sector boards to ensure they are aligned
with the Group strategy and organic growth targets. Companies
continuously focus on attracting and developing the best talent
to deliver Halma’s organic growth strategy effectively.
Sector management ensures that the Group strategy is fulfilled
through ongoing review and chairing of companies. Regional
hubs, for example those located in China and India, support
localstrategic growth initiatives for all companies. Potential
newpartnerships and investments are comprehensively
assessedfor future organic growth prospects.
At a Group level, the annual strategic planning process, the
annual budget and the monthly 12-month rolling forecast
enablea review of the effectiveness of the delivery of the
organicgrowth strategy through control over the balance
sheetand the Profit & Loss. The Executive Board holds regular
meetings with allDCEs to discuss and share key messages
onstrategy andexecution.
Climate risk and opportunity review processes and governance
are in place, and we continue to work with our companies to
helpthem manage transition risks within their supply chains.
More information on climate-related risks is
available in the TCFD Statement on page90
Very high Very low
Type of risk
Strategic
Operational
Legal & Regulatory
Financial
112 Halma plc | Annual Report and Accounts 2024
PRINCIPAL RISKS AND UNCERTAINTIES continued
07. Non-compliance with Laws and Regulations
Risk Owner:
Chief Financial Officer
Inherent risk level:
Residual risk level:
Residual risk change:
No change
Risk appetite: Averse
Risk and impact
Failing to comply with relevant laws
and regulations, resulting in fines,
reputational damage and possible
criminal liability for Halma senior
management.
Relevant laws include but are not
limited to Anti-Bribery & Corruption,
Sanctions and Export Controls, Data
Protection, Competition, Environmental
and Health & Safety.
Risk evolution
No significant changes in risk factors
have been identified at both inherent
and residual risk levels during the year.
We continuously challenge, review
andenhance our legal compliance
framework and the processes across
the Group, which ensure these are
effective whilst we continue to closely
monitor the developments of any
emerging regulations.
As part of this continuous process,
arefreshed and streamlined Code of
Conduct and compliance policies were
launched this year to ensure continued
alignment with the evolving regulatory
framework. Complementary resources,
templates and guidelines have been
provided to companies to support their
compliance.
How do we manage the risk?
Legal compliance is owned by the Chief Financial Officer at an
executive level, who periodically updates the Board and Audit
Committee. The periodic reporting includes updates on key
matters, trend analysis and assessment of effectiveness of
keycompliance processes.
Group policies, procedures and guidance are in place and
regularly reviewed, setting out the Group’s requirements
fromacompliance and regulatory perspective.
Companies confirm the effectiveness of their most critical
legalcompliance controls every six months through the Internal
Control Certification process. The Internal Audit & Assurance
Team periodically and independently tests these controls.
GroupLegal, Sustainability & Governance (LSG) Team advises
onlegislative and regulatory changes relevant to the Group
asalisted company.
All employees are required to sign to confirm that they have
readand understood the Halma Code of Conduct.
An ongoing compliance training programme is in place for
Groupand its companies.
A whistleblowing hotline is available to all employees and
thirdparties to raise concerns over the lack of compliance
andmisconduct. These are independently followed up and
investigated.
The Group LSG Team resources, including the Deputy General
Counsels, who sit on the sector boards, and a panel of high
quality external legal advisers, are available to sectors and
companies to help them better manage legal compliance
risks,including during due diligence processes.
The board of each company is accountable for identifying and
monitoring what laws are relevant to their business, including
any emerging or changing legislation, and for ensuring
commercial legal risks are appropriately managed.
Claims and litigation risks are reported to Group by all companies
every six months. Material legal issues and risks are reported to
and discussed by the Board every quarter.
Appropriate levels of Group insurance cover are maintained.
A crisis management plan exists to manage communications
and the reputational risk for Halma and/or its companies.
Halma plc | Annual Report and Accounts 2024 113
Governance Report Financial Statements Other Information
Strategic Report
08. Natural Hazards, including Climate Change
Risk Owner:
Group Sustainability
Officer
Inherent risk level:
Residual risk level:
Residual risk change:
No change
Risk appetite: Averse
Risk and impact
Inability to respond to large scale
disasters or natural catastrophes
suchas hurricanes, floods, fires
orpandemics, including those
exacerbated by the climate change,
resulting in Health & Safety hazards
and/or in the inability of one or more
ofour businesses to operate, causing
financial loss and reputational
damage. This risk includes potential
impacts from physical climate
changeon our supply chains.
Risk evolution
A model based review based on natural
hazard data and models has been
undertaken to ensure our property and
business interruption insurance cover
remains aligned with the underlying
natural hazard risk.
The inherent and residual risk levels
remain in line with the prior year.
How do we manage the risk?
Halma operates in end markets with strong long-term growth
drivers contributing to a low-carbon economy and lower risks
ofdisruptions due to natural hazards. Our business model is
expected to be resilient to climate-related risks, due to Halma’s
highly diversified portfolio of companies and agile business
model, which enable our companies to quickly address
challenges caused by natural hazards and climate change.
The geographical diversity of Halma’s companies reduces the
impact of any single event, and the companies’ manufacturing
capabilities can be leveraged, in case of need, to provide
flexibility to support the companies affected.
All companies are required to have business continuity and
disaster recovery plans in place which are tested periodically
andtailored to manage the specific risks they are most likely
toface. The Group has a crisis management plan to manage
communications and the reputational risk for Halma and/or
itscompanies.
Property and business interruption insurance is in place to
mitigate financial losses that may occur from natural hazards.
Climate risk and opportunity review processes and governance
are in place and we continue to work with our companies to
helpthem manage disruption risk within their supply chains.
More information on climate-related risks is available
intheTCFDStatement on page90
Very high Very low
Type of risk
Strategic
Operational
Legal & Regulatory
Financial
114 Halma plc | Annual Report and Accounts 2024
PRINCIPAL RISKS AND UNCERTAINTIES continued
09. Business Model and its Communication
Risk Owner:
Group Chief Executive
Inherent risk level:
Residual risk level:
Residual risk change:
No change
Risk appetite: Cautious
Risk and impact
Failing to adapt or clearly articulate
Halma’s sustainable growth model as
OpCos grow through exploring and
implementing additional or new
business models, resulting in missed
growth opportunities and erosion of
shareholder value. This risk includes
meeting increasing or shifting
shareholder expectations around
climate change and sustainability.
Risk evolution
Although Halma’s sustainable growth
model is constantly challenged and
fine-tuned to ensure that it enables the
companies to grow, these evolutions
are consistent and preserving the
fundamental pillars of our model. The
inherent and residual risk levels remain
in line with the prior year.
How do we manage the risk?
The Halma Sustainable Growth Model is at the core of the Group
strategy and a key success factor underpinning the Group’s
ability to deliver returns for its stakeholders.
More information on our Sustainable Growth Model
isavailableon page26
The sector and Executive Boards perform periodic reviews to
identify opportunities which may require a new organisational
approach or evolutions of the existing approach. The current
model is challenged through the lenses of the learnings from
past experience and through the continuous search and
exploration of innovative ideas and opportunities to grow and
scale the Group as the global economic environment evolves.
The Board performs strategic reviews of the business model to
consider the strengths and weaknesses of the existing model
andthe need to make changes.
The Group has a clear strategy to communicate its business
model to internal and external stakeholders, which is crucial
tothe successful execution of the Group’s sustainable growth
strategy. Regular communications and updates on the business
model underpin the delivery of the communication strategy.
These target Group, sector and company boards throughout the
year and are integral to the recruiting and onboarding process.
Sustainability, including climate change, is integral to Halma’s
strategy at all levels. Sustainability strategies are regularly
reviewed and discussed in the companies, sectors and
ExecutiveBoard as well as at the Board. Sustainability
networksare in place to share learnings and promote
awarenessin our companies.
There are central growth-enabling resources with sustainability-
related knowledge which are available to sectors and companies
to help them better manage sustainability risks and opportunities.
More information on climate-related risks
isavailableintheTCFDStatement on page90
Halma plc | Annual Report and Accounts 2024 115
Governance Report Financial Statements Other Information
Strategic Report
10. Product Failure or Non-compliance
Risk Owner:
Group Chief Executive
Inherent risk level:
Residual risk level:
Residual risk change:
No change
Risk appetite: Averse
Risk and impact
A failure in one of our products,
including due to non-compliance
withproduct regulations, may result in
severe injuries, death, financial loss and
reputational damage, which might be
amplified in cases of large contracts.
Risk evolution
No significant risk factors have
beenidentified at both inherent
andresidualrisk levels during the
year.Keyquality and compliance
requirements are closely monitored
byour companies and, where
relevant,knowledge is shared
amongthem to ensure efficiency.
How do we manage the risk?
Our companies manufacture and assemble a wide variety of
product types across different geographies and end markets.
They are, therefore, experts in their trade and carry the
responsibility for complying with relevant product safety and
quality requirements, obtaining relevant accreditations and all
necessary product certifications.
Halma’s companies have adopted customised sets of controls to
achieve high quality standards – these might include but are not
limited to:
• Strict product development and rigorous testing procedures.
• Clear requirements for suppliers to ensure safety and quality.
• Quality checks on products received from suppliers.
• Monitoring of defects and warranty returns.
• Traceability of product.
• Obtaining ISO 9001 certification, where relevant.
• Product compliance with regulations is checked as part of
due diligence for any new acquisition.
• Ensuring employees have appropriate quality related skills.
Furthermore, potential liabilities are limited as much as possible
through terms and conditions of sale and liability insurance cover.
11. Liquidity
Risk Owner:
Chief Financial Officer
Inherent risk level:
Residual risk level:
Residual risk change:
No change
Risk appetite: Averse
Risk and impact
Inadequacy of the Group’s cash/
funding resources to support its
activities or there is a breach of
funding terms.
For more information on our liquidity
target, see the “Cash generation”
KPI in the KPI section on page41
Risk evolution
Due to the strength of Halma’s
cash-generation model and the
tightcontrols over liquidity, the
residualrisk remains low, in line with
the prior year. In order to support
future business growth, since year
endwe have extended the term of
our£550m RCFby a further one year
to May2029andhave completed a
newPrivate Placement of £336m,
increasing debtfacility headroom.
More information is given in
Note 27 to the Accounts, on
page248
How do we manage the risk?
A clear liquidity management strategy is a core pillar of the
Halma financial model.
More information is available on page34
The strong cash flow generated by the Group provides financial
flexibility, together with a revolving credit facility.
Treasury policy and procedures provide comprehensive guidance
to the Group and companies on banking and transactions,
including required approvals for drawdowns and all new or
renewed sources of funding.
Cash needs and the Group cash position are monitored regularly
through the review of the 12-month rolling forecast, the three-
years liquidity forecast and forecast covenant compliance.
Thecurrency mix of debt is reviewed annually, and on
acquiringor disposing of a business.
Very high Very low
Type of risk
Strategic
Operational
Legal & Regulatory
Financial
116 Halma plc | Annual Report and Accounts 2024
PRINCIPAL RISKS AND UNCERTAINTIES continued
12. Financial Controls
Risk Owner:
Chief Financial Officer
Inherent risk level:
Residual risk level:
Residual risk change:
No change
Risk appetite: Averse
Risk and impact
Failure in financial controls either
onitsown or via a fraud which takes
advantage of a weakness, resulting
infinancial loss and/or misstated
reported financial results.
Risk evolution
No new significant risk factors have
been identified at both inherent and
residual risk levels during the year. We
continuously challenge, review and
enhance our financial controls and
theprocesses across the Group,
whichensure these are effective.
How do we manage the risk?
Group policies, procedures and guidance are in place, setting
outthe Group’s requirements for financial controls. Companies
confirm the effectiveness of their most critical financial controls
(including segregation of duties, delegation of authorities and
financial accounts reconciliations) every six months through
theInternal Control Certification process. The Internal
Audit&Assurance Team periodically and independently
teststhese controls.
Sector and Group finance teams perform regular reviews of
financial reporting and indicators. Six-monthly peer reviews of
reported results for each company are performed to provide
anindependent challenge.
Ongoing training of finance personnel (including finance teams
of newly acquired companies) on Halma’s policies and financial
control framework.
Companies’ directors have legal and operational responsibilities
as they are statutory directors of their companies. This fits with
Halma’s decentralised model and contributes to ensuring an
effective financial control environment is in place.
Halma plc | Annual Report and Accounts 2024 117
Governance Report Financial Statements Other Information
Strategic Report
During the year, the Board carried out a robust
assessment of the principal risks affecting the Group,
including those that would threaten its business model,
future performance, solvency or liquidity. The principal
risks and uncertainties, including an analysis of the
potential impact and mitigating actions are set out
onpages 108 to 117 of the Strategic Report.
The Board has assessed the viability of the Group over a
three-year period, taking into account the Group’s current
position and the potential impact of the principal risks
and uncertainties. While the Board has no reason to
believe that the Group will not be viable over a longer
period, it has determined that three years is an
appropriate period. In drawing its conclusion,
theBoardhas aligned the period of viability assessment
with the Group’s strategic planning process (a three-year
period). The Board believes that this approach provides
greater certainty over forecasting compared to a longer
period and, therefore, increases reliability in the modelling
and stress testing of the Company’s viability. In addition,
a three-year horizon is typically the period over which we
review our external bank facilities and is the performance
based period over which awards granted under Halma’s
share based incentive plan are measured.
In making their assessment, the Board carried out a
comprehensive exercise of financial modelling and
stress-tested the model with a downside scenario based
on the principal risks identified in the Group’s annual risk
assessment process. The scenarios modelled used the
same assumptions as for the going concern review, as set
out on page 181, for the years ending 31 March 2025 and
31 March 2026 with further assumptions applied for the
year ending 31 March 2027.
The downside scenario included a reduction in trading
which could be caused by a significant downside event
with the addition of impacts from other of the Group’s
principal risks such as litigation or product failure. In both
scenarios, the effect on the Group’s KPls and borrowing
covenants was considered, along with any mitigating
factors. Based on this assessment, the Board confirms
that they have a reasonable expectation that the Group
will be able to continue in operation and meet its liabilities
as they fall due over the three-year period to 31 March 2027.
In reviewing the Company’s viability, the Board has identified
the following factors which they believe support their assessment:
1 2 3 4 5
The Group operates in
diverse and relatively
non-cyclical markets
and is highly cash
generative through
our Sustainable
Growth Model.
There is considerable
financial capacity
under current
facilities and the
ability to raise
further funds
ifrequired.
The decentralised
nature of our Group
ensures that risk is
spread across our
businesses and
sectors, with limited
exposure to any
particular industry,
market, geography,
customer or supplier.
There is a strong
culture of local
responsibility and
accountability
witharobust
governanceand
control framework.
An ethical approach
to business is set
fromthe top and
flows throughout
ourbusiness.
118 Halma plc | Annual Report and Accounts 2024
VIABILITY STATEMENT
120 Governance at a glance
122 Board of Directors
124 Executive Board
126 How we are governed
129 Board activities and priorities
132 Governance in action
134 Board oversight of our culture
136 Board engagement with
employees
138 Board evaluation
140 Nomination Committee Report
144 Audit Committee Report
152 Remuneration Committee
Report
158 Directors’ Remuneration Policy
166 Annual Remuneration Report
178 Directors’ Report
182 Statement of Directors’
responsibilities in respect of
thefinancial statements
Section contents
Governance Report
This Report outlines the governance framework
within which the Company operates, how it
hassupported the Board’s strategic activities
during the year and how the UK Corporate
Governance Code 2018 has been applied.
We believe that our organisational structure
and governance framework enables our
companies to operate effectively and with
agility – which means we can continue to
deliver value through our sustainable growth,
returns and positive impact for the benefit
of all of our stakeholders.
Other InformationFinancial StatementsStrategic Report
Halma plc | Annual Report and Accounts 2024 119
Governance Report
Halma plc | Annual Report and Accounts 2024 119
Key Board activities
UK Corporate Governance Code
The Company reports against the Financial Reporting Council’s (FRC) UK Corporate Governance Code 2018
(theCode), which is available at www.frc.org.uk. The Board considers that it has applied all Principles, and
compliedwith all Provisions of the Code for the year ended 31 March 2024. TheBoardcontinues tomonitor
developments in corporate governance and is well‑placed to report in future Annual Reports on its application of
thenew Code, which becomes effective for Halma from 1 April 2025 and, in respect of provision 29, from 1 April 2026.
How we apply the Code
Board Leadership and
Company Purpose
Sustainable Growth Model on page 26 Board engagement with employees on page 136
How we are governed on page 126 Governance and control frameworkson page 127
Board activities and priorities on page 129
Risk management and internal control
onpage104
Our stakeholders, s.172(1) compliance statement
and Board decision‑making on page 68
Audit Committee Report on page 144
Board oversight of our culture on page 134
Division of
Responsibilities
How we are governed on page 126 Independence on page 128
Board of Directors on page 122
Composition, Succession
and Evaluation
Nomination Committee Report on page 140 Board Evaluation on page 138
Audit, Risk and
Internal Control
Risk management and internal control, including
principal and emerging risks on page 104
Audit Committee Report, including fair balanced
and understandable assessment on page 144
Remuneration
Remuneration Committee Report on page 152
Eight acquisitions
Two disposals
Read more in
Strategic Report
onpage 11
Readiness review for
2024 Governance Code
Read more below and in
the Audit Committee
Report on page 144
Private Placement
debt issuance
Read more in Financial
Review on page 44
Ethnic diversity target
for senior management
Read more in
Nomination Committee
Report on page 140
Cyber security and
crisismanagement
Read more in Governance
in action on page 132
Scope 3 Net Zero
ambition
Read more in
Sustainability
onpage77
Externally facilitated
Board evaluation
Read more in Board
Evaluation Report
onpage 138
Non‑executive Director
succession
Read more in
Nomination Committee
Report on page 140
120 Halma plc | Annual Report and Accounts 2024
GOVERNANCE AT A GLANCE
Board Composition
The charts below provide an overview of the structure of our Board as at 13 June 2024.
For more information, see the Nomination Committee on page 140
For more information about our people, see on page 84
Gender Ethnicity
5
50%
5
50%
2
20%
8
80%
Men Women Ethnic minority White
Age Composition
3
30%
1
10%
3
30%
3
30%
6
60%
1
10%
3
30%
45‑49 50‑54 55‑59 60+ Chair Non‑Executive Executive
Executive Board Composition
Gender Ethnicity
4
50%
4
50%
3
37.5%
5
62.5%
Men Women Ethnic minority White
Halma plc | Annual Report and Accounts 2024 121
Financial Statements Other InformationStrategic Report
Governance Report
Committee Membership
A Audit Committee
N Nomination Committee
R Remuneration Committee
Chair of Committee
Member of Committee
02
03
07
04
01. Dame Louise Makin
Chair
N
R
Appointed: February 2021
(July 2021 as Chair)
Louise brings a wealth of leadership and
international experience to the Board and
isan experienced board director, having led
businesses across multiple sectors. She was
the Chief Executive Officer of BTG plc from
2004 to 2019 and led the transformation
ofthe company through organic growth
and acquisitions. She has held various
non‑executive roles and was a director
ofseveral not‑for‑profit organisations.
02. Marc Ronchetti
Group Chief Executive
Appointed: July 2018
(April 2023 asGroupChief Executive)
Marc brings a proven ability to create
sustainable value. He joined Halma in 2016
as Group Financial Controller before being
promoted to the plc and Executive Board as
Group CFO in July 2018 and was appointed
Group Chief Executive in April 2023. He has
played a vital role in evolving the Group’s
Sustainable Growth Model, purpose and
culture, and has overseen a significant
number of acquisitions while supporting
Halma’s companies to grow.
05. Jo Harlow
Senior Independent Director
A
N
R
Appointed: October 2016 (August 2023
asSenior Independent Director)
Jo brings a wealth of expertise in digital,
technology, sales and marketing. She has
significant international experience, gained
as Corporate Vice President of the Phones
Business Unit at Microsoft and as Executive
Vice President of Smart Devices at Nokia.
Before her move into consumer electronics,
Jo worked in strategic marketing at Reebok
and Procter & Gamble. She is Chair of
theRemuneration Committee and a
member of the Corporate Responsibility &
Sustainability Committee at J Sainsbury plc
and is a non‑executive director of
Centricaplc.
External appointments:
J Sainsbury plc, Non‑executive director
Chapter Zero, Member of the board
Centrica plc, Non‑executive director
03. Steve Gunning
Chief Financial Officer
Appointed: January 2023
Steve brings a breadth of financial and
commercial experience to the Board. He
joined Halma in January 2023 as Chief
Financial Officer. He was previously CFO
ofInternational Airlines Group and prior
tothat held several senior commercial
andfinance roles within IAG, including CFO
ofBritish Airways and Chief Executive of
IAG Cargo. Steve was also a non‑executive
Director at FirstGroup plc.
04. Jennifer Ward
Group Talent, Culture and
Communications Director
Appointed: September 2016
Jennifer has extensive international
experience in talent development and
building high performance culture. She
joined the Halma Executive Board in
March2014 and has global responsibility
fortalent and culture as well as internal
and external communications and brand.
Prior to joining Halma, Jennifer spent over
15 years leading Human Resources, Talent
and Organisational Development for
divisions of PayPal, Bank of America
andHoneywell.
External appointments:
Diploma plc, Non‑executive director
For full biographies please
visitwww.halma.com
122 Halma plc | Annual Report and Accounts 2024
BOARD OF DIRECTORS
09
05
10
08
06
01
06. Sharmila Nebhrajani OBE
Independent non‑executive Director
A
N
R
Appointed: December 2021
Sharmila brings extensive private and public
sector experience from her executive and
non‑executive roles in health, media and
sustainability. She served with the BBC for
15 years, latterly as Chief Operating Officer
of BBC New Media and was Chief Executive
of Wilton Park. She has held executive
board positions at the Medical Research
Council, the Association of Medical Research
Charities and the NHS and wasappointed
OBE for services to medicalresearch.
External appointments:
ITV plc, Non‑executive director
Severn Trent plc, Non‑executive director
Coutts & Co, Non‑executive director
National Institute for Health and Care
Excellence, Chair
07. Dharmash Mistry
Independent non‑executive Director
A
N
R
Appointed: April 2021
Dharmash is an experienced technology
venture capitalist, entrepreneur and
non‑executive director. He was formerly
aPartner at Balderton & Lakestar, an
executive at Emap PLC and worked earlier
in his career at The Boston Consulting
09. Liam Condon
Independent non‑executive Director
A
N
R
Appointed: September 2023
Liam is Chief Executive of Johnson Matthey
plc and brings a wealth of experience gained
across a variety of roles, with a strong
global background in driving growth and
sustainability in the Life Science, Chemical
and Energy Transition Industries. Earlier in
his career, Liam held senior positions within
Bayer AG and Schering AG.
External appointments:
Johnson Matthey plc, Chief Executive
10. Giles Kerr
Independent non‑executive Director
A
N
R
Appointed: February 2024
Giles brings extensive M&A and strategic
business growth experience and has held
arange of executive and non‑executive
positions across life sciences, technology
and industrial businesses. His executive
career included senior financial roles at
Arthur Andersen, Amersham plc and the
University of Oxford. Since 2006, Giles
hasheld a number of non‑executive
director roles.
External appointments:
PayPoint plc, Chair
Group and Procter & Gamble. Dharmash
was a founder of blow LTD, which he
chaired, and has served as a non‑executive
director at The British Business Bank, BBC,
Hargreaves Lansdown PLC and Dixons
Retail PLC.
External appointments:
The Premier League, Non‑executive director
Rathbones Group, Non‑executive director
The FA, Non‑executive director
Competition & Markets Authority, Non‑
executive director
08. Carole Cran
Independent non‑executive Director
A
N
R
Appointed: January 2016
Carole has extensive financial experience
and has a strong focus on governance and
risk. Carole was Chief Financial Officer of
Aggreko plc until December 2017, prior to
which she held a number of senior finance
roles within that group. Previously, she
worked at BAE Systems plc in a range of
senior financial positions, which included
four years in Australia.
External appointments:
Forth Ports Limited, Chief Financial and
Commercial Officer
Halma plc | Annual Report and Accounts 2024 123
Financial Statements Other InformationStrategic Report
Governance Report
01. Steve Gunning
Chief Financial Officer
See page122 for biography
02. Constance Baroudel
Sector Chief Executive,
Environmental & Analysis and Chief
Sustainability Officer
Constance was appointed to the
ExecutiveBoard in April 2021. She joined
Halma as Divisional Chief Executive,
Medical & Environmental in August 2018.
04. Aldous Wong
President of Halma Asia Pacific,
Adviser to the Executive Board
Aldous was appointed as President of
Halma Asia Pacific in January 2022,
becoming the senior leader for the region
and an adviser to the Executive Board.
03. Jennifer Ward
Group Talent, Culture
and Communications Director
See page122 for biography
01
02
03
04
For full biographies please
visitwww.halma.com
124 Halma plc | Annual Report and Accounts 2024
EXECUTIVE BOARD
05. Marc Ronchetti
Group Chief Executive
See page122 for biography
06. Steve Brown
Sector Chief Executive, Healthcare
Steve joined Halma in 2015 and was
appointed to the Executive Board in
November 2021. Prior to his appointment,
Steve was Divisional Chief Executive of
Halma’s Environmental & Analysis Sector,
Divisional Chief Executive for the Safety
Sector and Managing Director of Apollo,
one of Halma’s largest companies.
07. Catherine Michel
Chief Technology Officer
Catherine joined Halma as its first Chief
Technology Officer in September 2019. She
has global responsibility for fostering the
digitalisation of our companies’ products
and our underlying business operations.
06
05
07
08
08. Funmi Adegoke
Sector Chief Executive, Safety
Funmi joined Halma’s Executive Board
inSeptember 2020 and was previously
theGroup General Counsel and Chief
Sustainability Officer. Funmi assumed
therole of Sector Chief Executive,
SafetyinJuly 2023.
Halma plc | Annual Report and Accounts 2024 125
Financial Statements Other InformationStrategic Report
Governance Report
Board and Committee structure
A summary of the Board and Committee structure, together with key executive and non-executive responsibilities,
is outlined below. Board responsibilities are clearly defined, set out in writing and are regularly reviewed. For further
details on the role of Board members see the Corporate Governance section at www.halma.com.
Board
Establishes and monitors the ongoing effectiveness of the Company’s purpose, values and strategy for delivering long-term sustainable
value for stakeholders. It has responsibility for monitoring the culture of the Company and providing challenge to management.
Chair
• Leadership of the Board.
• Promoting high standards of
corporategovernance.
• Ensuring that Directors receive
accurate, timely and clear information.
• Ensuring effective communication with
key stakeholders.
• Facilitating the effective contribution
of non-executive Directors and
ensuring constructive relations
between executive and non-executive
Directors.
• Regular review of Board composition
and succession planning.
• Setting clear expectations concerning
the Company’s culture, values
andbehaviours.
Group Chief Executive
• Provide coherent leadership and
management of the Company
andExecutive Board.
• Developing objectives, strategy
andperformance standards.
• Maintaining an Executive Board
oftheright calibre and expertise.
• Monitoring, reviewing and managing
key risks and strategies.
• Ensuring the assets of the Group
aresafeguarded and maintained.
• Building and maintaining
communications and standing with
shareholders, financial institutions
andother stakeholders and effectively
communicating Halma’s investment
proposition and purpose.
• Ensuring the Board hears the voice of
the wider workforce.
Executive Directors
• Implementing and delivering the
strategy and operational decisions
agreed by the Board.
• Making operational and financial
decisions required in the day-to-day
management of the Company.
• Providing executive leadership
tosenior management across
thebusiness.
• Championing the Group’s culture
andvalues, reinforcing governance
and control procedures.
• Promoting talent management
anddiversity, equity and inclusion.
• Ensuring the Board is aware of
theview of employees on issues
ofrelevance to Halma.
Senior Independent Director
• Acting as a sounding board for
theChair.
• Serving as a trusted intermediary
forthe other Directors.
• Providing an alternative channel for
shareholders and employees to raise
concerns, independent of executive
management and the Chair.
Independent non‑executive Directors
• Contributing independent thinking
and judgement and providing external
experience and knowledge to the
Board’s agenda.
• Scrutinising the performance of
management in delivering the
Company’s strategy and objectives.
• Providing constructive challenge to
theExecutive Directors.
• Monitoring the reporting of performance
and ensuring that the Company
operates within the governance and
risk framework approved by the Board.
Company Secretary
• Acting as a sounding board for
theChair and other Directors.
• Ensuring clear and timely information
flow to the Board and its Committees.
• Providing advice and support to the
Board and its Committees on matters
of corporate governance and
regulatory compliance.
Board Committees
Nomination Committee
Leads on Board appointments,
succession planning and evaluation;
reviews the size, skills, diversity
andcomposition of the Board
andCommittees.
To learn more see page 140
Audit Committee
Monitors the integrity of financial
statements, oversees the system of
internal control, compliance and risk
management and reviews external
Auditor independence and performance.
To learn more see page 144
Remuneration Committee
Keeps under review the framework and
Policy on Executive Director and senior
management remuneration.
To learn more see page 152
Share Plans Committee
Actions and administers share award grants and vestings,
following approval by the Remuneration Committee.
Bank Guarantees and Facilities Committee
Agrees and approves arrangements for issuing guarantees,
indemnities or other support for bank loans and other
financingfacilities.
Management Committee
Executive Board (EB)
Responsibility for the development and implementation of the Group’s strategy
and objectives rests with the Group Chief Executive, who is supported by the EB.
Details of our Executive Board
members can be found on page 124
and on www.halma.com
126 Halma plc | Annual Report and Accounts 2024
HOW WE ARE GOVERNED
Governance and control frameworks
As a decentralised organisation, it is critical that Halma’s
governance and control framework is robust, clearly
defined, well communicated and operating effectively
tosupport the Company in the delivery of its strategy.
The Board has adopted a formal schedule of matters
reserved solely for its decision and certain decision-making
and monitoring activities are delegated to Board
Committees or management committees.
The full list of matters reserved for the Board
can be found at www.halma.com
The Board has established three principal Committees
(Audit Committee; Nomination Committee; Remuneration
Committee) which review and monitorspecific areas on
behalf of the Board and makerecommendations for its
approval. Each Board Committee operates under written
terms of reference which are approved by the Board
andare made available at www.halma.com. Further
information on the composition, role and activities of
each Committee issetout in the respective
CommitteeReports.
There are additionally two topic specific committees,
typically chaired by the Group Chief Executive, to which
the Board has delegated certain powers to negotiate,
review and administer matters (Share Plans Committee
and Bank Guarantees and Facilities Committee).
Whilst the Board sets the Company’s strategy, the
execution of it is delegated to the Executive Board,
chaired by the Group Chief Executive, which monitors
progress against the Group’s strategic objectives and
reviews operational and business performance.
A summary of the responsibilities of the Board
and each Board Committee is set out on page 126
Decentralised model
The foundation of our business model is the autonomy
that our businesses enjoy. To support this autonomy,
while retaining oversight and control from a Group
perspective, companies must comply with Halma’s suite
of financial and non-financial policies and procedures and
provide confirmation of compliance with key controls half
yearly. The Group’s policies set out our requirements in the
areas of financial reporting and internal control, health
and safety, ethics, human resources, IT, data privacy, and
legal and compliance. These policies are made available
to all employees via a dedicated SharePoint site. An
appropriate level of assurance is provided to the Board
through a rotational programme of internal audits and
semi-annual peer reviews.
An authority matrix sets out the matters that are
reserved for decision by the Board, those that can be
approved by the Group Chief Executive and the financial
authority that has been delegated to Executive Board
members, the Divisional Chief Executives (DCEs) and to
company managing directors. This approach ensures that
companies have a clear framework within which they can
operate and balances autonomy with the need for
oversight and control.
Each company in the Group has its own board of
directors which meets regularly to fulfil its legal duties
and to maintain operational and financial management
of the company’s affairs. Each DCE chairs the main
operating company boards in their subsector portfolio
and meets with the Executive Board at least four times
per year. The DCEs also provide a written report on the
financial and business performance, including areas
suchas talent, culture, diversity and sustainability, to
theExecutive Board members and Halma’s Chair on a
regular basis.
The Sector Chief Executives (SCEs) hold regular sector
board meetings, attended by the sector’s DCEs and
finance, talent and M&A leads, which provide a valuable
forum for review of sector-wide strategy, financial and
operational performance, talent and culture, diversity,
sustainability, M&A, legal, compliance and risk.
The governance structure of our companies,
sectors and Board is set out on page 6.
Board meetings
The Board schedules six meetings per year but will meet
or pass resolutions, as required, to deal with urgent
matters and event-driven items such as acquisitions,
Board appointments and trading updates. There is
provision at the end of each meeting for the Chair
andnon-executive Directors to meet privately, when
considered necessary, to enable regular discussion
without the presence of management.
Halma plc | Annual Report and Accounts 2024 127
Financial Statements Other InformationStrategic Report
Governance Report
Independence
The Board has reviewed the independence of each
non-executive Director and, following an assessment
ofany relationships or circumstances which are likely
toaffect a Director’s judgement, consider each to be
independent for the year ended 31 March 2024. Dame
Louise Makin was independent on appointment as
anon-executive Director in February 2021 and the
Boardconsiders that she retains objective judgement.
While non-executive Directors are not required to hold
shares in the Company, the Board believes that any
Halma shares held serve to align their interests with
thoseof shareholders and do not interfere with
theirindependence.
Time commitment
Director availability and time commitment to the
Company is essential for a properly functioning Board
and no issues have been experienced during the year.
Inaddition to the scheduled and ad hoc Board and
Committee meetings, Directors also attend the Annual
General Meeting and the annual strategy meeting.
Non-executive Directors are also encouraged to attend
our Accelerate conference and undertake company site
visits, both of which our Executive Directors also attend.
The Board must approve all significant external
appointments prior to any Director accepting the
position. Our appointments policy permits Executive
Directors to accept one external appointment, provided
that it is beneficial to the Company and the development
of the individual. The Board must be satisfied that it
doesnot present a conflict of interest with the Group’s
activities or require a significant time commitment
whichcould interfere with the performance of their
executive duties.
For non-executive Directors, the number of external
directorships is an important consideration when
recruiting and a preferred candidate must reassure the
Nomination Committee that they can allocate sufficient
time to the role (around 20 days per annum is anticipated
plus additional time if they Chair a Committee) before
they are recommended for appointment.
Prior to the Board’s approval of an additional role, an
assessment is made of the combined time commitment
required by their existing roles plus that required in the
new role. If there is any concern over the time available
tofulfil their role at Halma, the Board would not approve
the appointment. However, where Directors are rotating
off or rebalancing their portfolio of roles, consideration
will be made of the sequence and timing of the roles
anda pragmatic approach is taken (as opposed to an
absolute numerical limit) in respect of any potential
over-boarding concerns, whether temporary or otherwise.
All Directors are subject to an annual review, at which
time commitment and their personal contribution is a
keyfocus.
Board attendance
The attendance at each Board meeting, for the year
ended 31 March 2024, is set out in the table below.
Board attendance Eligible Attended
Dame Louise Makin  
Marc Ronchetti  
Steve Gunning  
Andrew Williams  
Jennifer Ward  
Liam Condon
1
 
Carole Cran  
Jo Harlow  
Giles Kerr²  
Dharmash Mistry  
Sharmila Nebhrajani OBE  
Tony Rice
3
 
Roy Twite  
1 Liam Condon joined the Board on 25 September 2023.
2 Giles Kerr joined the Board on 1 February 2024.
3 Tony Rice stepped down from the Board on 31 December 2023.
Changes to the Board
Two new non-executive Directors joined the Board this
year; Liam Condon in September 2023 and Giles Kerr
inFebruary 2024. Both were recruited as part of clear
succession planning for non-executive Directors who will
reach the end of their nine year term in the coming years.
Two non-executive Directors reached the end of their
term since the last report and retired from the Board:
Tony Rice in December 2023 and Roy Twite in June 2024.
Jo Harlow was appointed Senior Independent Director in
August 2023 and is available as an alternative channel of
communication for shareholders, independent from
executive management and the Chair.
128 Halma plc | Annual Report and Accounts 2024
HOW WE ARE GOVERNED continued
2023
2024
Board activities
At each meeting, the Board receives updates from the Group CEO, Group CFO, Sectors, Investor Relations, M&A,
Board Committees, Company Secretary, Group Legal and Risk & Compliance. There are rotational presentations
fromthe SCEs on sector performance and strategy. Other key items covered by the Board in 2023/24 are shown below.
September
• Liam Condon appointed as
non-Executive Director
• Strategy meeting
• Trading update
April
• Marc Ronchetti
becomes Group CEO
June
• Full year results
• Recommendation of final dividend
• Review results of employee
engagement survey
July
• AGM
• Cyber update
May
• Acquisition
of Sewertronics
January
• Externally facilitated evaluation
• Cyber update
• Tech trends
October
• Acquisition of Alpha
Instrumaticsand AprioMed
• Accelerate CEO Conference
August
• Acquisition of Lazer Safe
• Jo Harlow becomes Senior
Independent Director
February
• Giles Kerr appointed as
a non-Executive Director
March
• Acquisition of Rovers
Medical Devices
• Trading update
• Annual Budget approved
• Confirmation of
Scope 3 Net Zero target
November
• Acquisition of TeDan
• Half year results
• Declaration
of interim dividend
• Crisis management review
• Parker Review target set
• Directors’ duties and
obligations refresher
Halma plc | Annual Report and Accounts 2024 129
Financial Statements Other InformationStrategic Report
Governance Report
BOARD ACTIVITIES AND PRIORITIES
Board priorities
Embedding Halma’s DNA
throughout the Group
See Talent & Culture review on
page23
Portfolio
Executing purpose-aligned M&A
and optimising the portfolio for
future growth.
Board and Executive
Board succession
Refreshing our succession
plans in light of recent
Executive Board changes and
non-executive Directors serving
out their final three-year term.
Maintaining agility within
our business model
Re-enforcing company
accountability and autonomy,
seeking simplification and
removing duplication to focus
on agility and scalability.
Sustainability
Continuing to embed
sustainability as a growth driver
into our businesses, while
striving to reduce the negative
impact that our operations
have on the environment.
Optimising returns
Keeping focused on our returns,
including R&D, Growth Enabler
functions and cyber &
technology investments.
International expansion
Revisiting our strategic approach
and future opportunities for
international growth, including
in the APAC region.
Revisiting the APAC strategy
Included within 2024 priorities
(see below)
Supporting companies to
identify sustainability‑linked
growth opportunities
See Sustainability section on
page77
Maintaining a focus on
purpose‑aligned M&A
See Strategic Report on page 15
Reviewing Growth Enabler
investments to ensure
that they are appropriately
utilised by our operating
companies
See How the Board supports
our strategy on page 131
Evolving our ongoing
portfolio review to optimise
each component for the
long‑term sustainable
value creation
See Strategic Report on page 26
Progress on 2023 priorities
Priorities for 2024
130 Halma plc | Annual Report and Accounts 2024
BOARD ACTIVITIES AND PRIORITIES continued
How the Board supports our strategy
The Board supports the evolution of Halma’s growth strategy and the development of its Growth Enablers,
whichhelp to allocate human and capital resources, to ensure that our sectors and companies continue to
investorganically and through acquisition to deliver sustainable growth over the long term.
See how our Growth Enablers relate to our Business model on page 34
Mergers and
Acquisitions (M&A)
• The Board sets a clear strategy which includes a significant growth element
being delivered through standalone M&A and bolt-on acquisitions to
our companies.
• Through the annual Budget process, key resources, both in terms of people
and financing, are made available by the Board to ensure that we can
deliver on this strategic priority.
• The M&A pipeline is reviewed at each Board meeting and all material
acquisitions (those with a maximum consideration in excess of £10m)
aresubject to its approval. Prior to approval, the Board will review the
proposed value creation strategies and, post-acquisition, it receives insight
on the financial and operational performance of newly acquired businesses.
International
Expansion
• All major changes, material financial commitments or new business
developments – such as significant expansion into a new territory –
areconsidered by the Board and are matters reserved for its decision.
Talent and
Culture
• The Board receives regular updates from Jennifer Ward, Group Talent, Culture
and Communications Director on areas including the talent pipeline, diversity,
equity and inclusion initiatives and employee engagement.
• Talent discussions are a key feature at each Nomination Committee
meeting and monitoring the Group’s culture and diversity is an important
role for the Board.
Finance,
Legaland Risk
• The Board has established a clear and robust framework to control financial
investment, oversee financial performance and reporting, and to manage
risks and opportunities. At least annually, it assesses risk management,
compliance and internal control systems.
• The Board has an established legal and compliance framework to enable
companies to maintain their autonomy and agility while leveraging the
scaleof Halma to get consistent, quality advice at competitive rates
through a panel of preferred external law firms.
Digital Growth • The Board takes a close interest in Halma’s desire to expand its digital
capability and supports R&D within our companies through Board presentations
and non-executive Director interactions with management. Our companies
can leverage the skills and experience from our non-executive Directors with
digital expertise.
Innovation
Network
• The Board shares its deep and diverse knowledge and experience with
seniormanagement and company personnel, both formally and informally
through events and other interactions – enabling our companies to leverage
the breadth of their network and obtain support, guidance and contacts in
areas which are new to them.
Op 1: Strat Comms
and Brand
Strategic
Communications
and Brand
• A key focus in the Board’s Budget approval process is to allocate capital to
resource the central and sector teams to support our companies in
developing market leading positions by connecting with customers through
their brand, marketing, product positioning and the effective use of all
media channels.
Halma plc | Annual Report and Accounts 2024 131
Financial Statements Other InformationStrategic Report
Governance Report
Portfolio management
The Board reviews and approves significant acquisition
and disposal opportunities with a total consideration over
£10m. In 2023/24, the Board approved six acquisitions:
Sewertronics, Lazer Safe, Alpha Instrumatics, AprioMed,
TeDan and Rovers.
For each prospective acquisition or disposal, the Board’s
main objective is to ensure that it is in the best interests
of the Company, having considered the impact on key
stakeholders. For all acquisitions, the Board reviews a
transformation plan, the financial modelling and an
Executive Board Q&A. These insights give them a clear
understanding of the target, its market and customer,
itspeople and culture and the risks and opportunities for
growth. The Board can be confident that any proposals
that they have seen have been carefully reviewed through
Halma’s disciplined approach so will be purpose-driven
companies, in similar or adjacent niche markets that can
deliver sustainable growth and high returns.
In the case of our Rovers acquisition, the Board
recognised that the women’s health industry had been
a strategic priority for the Healthcare Sector and has a
strong alignment with Halma’s purpose and long-term
growth drivers. Discussion was around future growth
opportunities and how Halma could help accelerate
Rovers’ growth by leveraging our Growth Enablers and
network of healthcare companies. The Board concluded
that Rovers would be a good addition to the Group given
the alignment with our purpose and acquisition criteria.
Following completion, the Board monitors the integration
and performance of acquisitions independently of its
wider review of the portfolio. At least annually, the Board
will review the status of the portfolio and consider whether
companies could benefit from further investment, are
adequately resourced, are in a turnaround position or
nolonger fit our financial or purpose-led criteria so are
candidates for divestment. It is Halma’s ability to manage
its capital and resource allocation that has been a key
factor in its long-term success.
Read more on Halma’s approach to M&A on page 15
Cyber security and
technology
The Board is alive to the strategic imperative of robust
cyber security initiatives and receives regular updates
from the Chief Technology Officer on this topic. In
addition, the Board is kept informed on the future
direction of technology, how the digital footprint of
ourcompanies is changing and what controls are in
placeto manage data and cyber risk.
Board discussions during the year have covered cyber
risklevels and activity, the threat posed by the dark web,
statistics on cyber threats intercepted, improving visibility
of Halma’s emerging attack surface and suggested steps
for improving cyber response readiness. The Board was
also updated on the completion of the major Security
Upgrade Programme, which saw the rollout of improved
security capabilities, bringing the bulk of our internal
operations under enhanced protection.
On the topic of emerging technology trends, the Board
received a presentation from a Microsoft expert on the
use of artificial intelligence, Large Language Models
andtechnology trends – which included the future of
connectivity, quantum computing and connecting
physical and virtual environments.
As referenced in the separate case study on crisis
management, the Executive Board undertook a cyber
incident desktop exercise, facilitated by an external firm
of security experts, and communicated the learnings
back to the Board.
Read more on page 104
132 Halma plc | Annual Report and Accounts 2024
GOVERNANCE IN ACTION
Crisis management exercise
As part of the Board’s responsibility to ensure the
maintenance of a sound system of internal control and risk
management, the Board, Audit Committee and Executive
Board have all contributed to a review of our approach to
crisis management to ensure that the Group is prepared
for whatever eventualities it may be presented with.
2023
July
Executive Board
As a periodic exercise, the Director of Risk &
Compliance, together with the members of
the Crisis Response Team, reviewed the crisis
management framework and protocols.
Thisentailed engagement with relevant
Executive Board members and session with
the full Executive Board.
September
Audit Committee
The Committee was updated on progress
and planned work on crisis management.
November
Board
A restructured framework and approach
were presented to the Board along with
plans to finalise the refreshed crisis
management protocols and test them in a
tabletop exercise. The Board’s discussions
provided the Director of Risk and
Compliance with a firm direction for an
externally facilitated tabletop review.
2024
March
Tabletop exercise
Tabletop exercise was conducted, picking up
on elements of the cyber related work the
Board had also been involved in as a test
scenario. The Executive Board and Crisis
Management Team participated in this
externally led exercise.
May
New protocols and guidance
New crisis management protocols finalised
and made available to relevant stakeholders
throughout the levels of the Group.
Additional guidance for companies on how
to structure effective Business Continuity
Plans was provided.
June
Outcomes
Outcome reports to the Audit Committee
and Board.
Monitoring sustainability progress
Sustainability remains a focus for Halma, with
climatechange a key aspect that has seen Board
andCommittee discussion throughout 2023/24.
The many facets of sustainability are discussed regularly
by the Board, which also has ultimate oversight of and
responsibility for climate-related opportunities and
risks. There have been regular presentations by the
Chief Sustainability Officer and Head of Sustainability
at Board meetings on areas such as the external
ESGlandscape, internal sustainability expectations,
Scope3decarbonisation planning, sustainability and
climate-related risks and the impact on stakeholders.
As part of its annual cycle, the Board reviewed:
• management’s Group-level assessment of
climate-related opportunities and risks;
• performance against our sustainability strategy
andclimate change related targets; and
• information on climate related opportunities and risks
for relevant standalone acquisition opportunities.
The Board reviewed the refreshed internal sustainability
expectations, corresponding internal messaging and
supporting resources and continued to engage on
theembedding of sustainability initiatives into
business-as-usual functions and processes.
Additionally, the Board considered and approved
Halma’s long-term ambition to reach Scope 3 Net
Zeroby 2050.
See detailed disclosures around this on page 90
Halma plc | Annual Report and Accounts 2024 133
Financial Statements Other InformationStrategic Report
Governance Report
Our culture
Our corporate culture is an essential component of our
strategy and is embedded within Halma’s DNA through
our cultural and organisational genes. Our inclusive
culture across our business brings competitive advantage
to the Group and is encapsulated within our Talent &
Culture Growth Enabler. It is vital that we protect the
unique cultural genes that we have in order to grow our
business sustainably, deliver on our purpose and make
Halma a great place to work.
It is essential that the Board and executive management
act in a constructive and respectful manner, exhibiting
the tone that we expect across our Group. We consider
that this culture promotes good governance across our
companies and empowers people to make good and
ethical business decisions.
See page 29 for more information on Halma’s DNA
and cultural and organisational genes
Establishing and promoting culture
The Board ensures that the Company’s purpose and
DNAare aligned to its culture and strategic objectives.
Our employees are key to delivering our success and by
fostering a collaborative and inclusive culture our people
are unified by our purpose and aspire to deliver our
strategic ambitions. Our positive culture is demonstrated
through the 76% overall employee engagement score
achieved from our annual engagement survey this year,
which also had a strong response rate of 83%.
Our robust risk and governance framework provides a
base from which our culture can be embedded across
alllevels of our business and the Board periodically
reviews workforce policies and annually reviews our
Codeof Conduct.
Our Code of Conduct underpins our culture. It sets out
our cultural genes and the expected behaviours and
corporate culture that we require all employees to display.
It also provides a plain language summary of key matters
relating to business ethics and integrity towards people
and the planet. These include guidance on: anti-bribery
and corruption, political and charitable activities, conflicts
of interest, international trade and competition laws,
health & safety, human rights, modern slavery and human
trafficking, diversity, equity and inclusion, financial integrity
to protect our assets and ensure accurate reporting and
insider dealing. Alongside postersat every company
location and online promotion internally, the Code of
Conduct sets out information onhow employees can
raise concerns via management or the independent
third-party confidential reporting service, operated by
NavexGlobal. Halma’s Code of Conduct must be read
and acknowledged by every employee when they join
theCompany and periodicallythereafter.
The Board takes health and safety matters very seriously
and accident statistics are reported to the Board at
eachmeeting. This enables the Board to assess the
effectiveness of health and safety practices and
behaviours within the Group.
The Directors made a number of business site visits
duringthe year, which provides them with a first-hand
experience of the workplace environment and culture,
particularly around health and safety. Directors report
their observations from all site visits to the Board and
tothe relevant Sector Chief Executive and Divisional
ChiefExecutive.
The Code of Conduct is available from our website at
www.halma.com.
Find out more information on our website
www.halma.com/who‑we‑are
Find out more information in the
Sustainability section page 84
Elements of our culture
DNA
Sustainable
Growth Model
Purpose
Strategy
Behaviours
Diversity, Equity
& Inclusion
Our Culture
134 Halma plc | Annual Report and Accounts 2024
BOARD OVERSIGHT OF OUR CULTURE
Reporting on process and review
of outcomes
Feedback provided to the Board and
management after each visit
Reporting, presentations, discussion
Company site visits
and employee events
Monitoring and insight
During the year our executive and
non-executive Directors undertook
sitevisits to our companies, which
provided invaluable insight into how
our culture permeates throughout our
decentralised, autonomous structure.
Directors engaged with employees on
matters such as executive and wider
workforce remuneration, company
culture, purpose, health and safety
and diversity, equity and inclusion. Our
non-executive Directors also had the
opportunity to interact with company
CEOs at Accelerate in October 2023.
Read more on page 70
Workforce concerns
Monitoring and insight
The Board has put in place procedures
for employees to confidentially raise
matters of concern, either with
management or through our dedicated
confidential reporting hotline. All
workforce concerns that have been
raised are reviewed at each Board
meeting, including updates on previous
investigations and the action that has
been taken where reports are founded.
Annual employee
engagement survey
Monitoring and insight
The Group’s annual engagement
survey results are a good indicator
ofsentiment across the Group and
provide insights at a company and
Group function level. A summary of the
survey results is reviewed by the Board
and areas for improvement discussed.
2024 results are below.
Read more on the outcomes
of our employee engagement
survey on page 86
Employee engagement KPI, page 42
Policies and practices
Monitoring and insight
Our workforce policies and Code of
Conduct are underpinned by our values
and culture. Each of our employees is
required to read and sign the Code of
Conduct upon joining and to adhere
toour workforce policies. The Board
periodically reviews these policies to
ensure they remain appropriate and
aligned with our purpose and culture.
Board, Committee
and strategy meetings
Monitoring and insight
The Board receives reports throughout
the year on whistleblowing, talent
andretention, employee engagement
survey results, health and safety
matters as well as inviting senior
employees to present at the Board
orattend events with the Directors,
allof which provide insights into
employee sentiment and culture.
Investing in and
rewarding employees
Monitoring and insight
The Remuneration Committee
regularly considers wider workforce
remuneration, including gender pay
gap data across the UK and the US.
Our employee share schemes and
bonus/profit sharing plans are designed
to benefit the wider workforce and
incentivise our employees to contribute
to the success and performance of
theCompany.
How the Board monitors culture
Halma plc Board
All cases reported to the Board and
monitored throughout the process
Policies provided for
review periodically
Approval of share plan grants,
Board seeks shareholder authority
when needed
Halma plc | Annual Report and Accounts 2024 135
Financial Statements Other InformationStrategic Report
Governance Report
Our employee engagement framework
Executive Board and Sector Chief Executives (SCE)
The SCEs are Executive Board members with operational responsibility for all of
our companies. They provide a vital link between the Board and our companies,
by ensuring that there are close channels of communication.
Halma companies and Divisional Chief Executives (DCE)
The DCEs chair their respective sub-sector company boards and meet with the
Executive Board at least three times per year and with the Board annually.
This facilitates regular dialogue on employee related matters.
Employees
Through our established communication channels, our employees are able to effectively
communicate with both their local company board as well as directly and indirectly with
Halma’s senior management and the Board.
Board
The Board employs both direct and indirect methods of engagement with employees,
which include company site visits, attending employee events such as Accelerate CEO
conference, DCE/company chair reports, presentations and reports to the Board on matters
such as workforce concerns, the employee engagement survey and regular updates from the
Group Talent, Culture and Communications Director.
The Code sets out three prescribed ways in which the
Board should engage with its workforce, or, where one
ofthese methods is not adopted, an explanation must
beprovided on the alternative engagement methods
used and the reasons for adopting that approach. Due
tothe Company’s decentralised operating model and
thegeographic spread of our companies, we have
implemented alternative engagement methods, which
we believe are more fitting, and effective, for our
structure and culture.
The Board utilises a number of different methods of
engagement, both directly and indirectly, with employees
to foster and promote a two-way dialogue and to provide
a critical means of monitoring culture.
Read more about how the Board monitors culture on page 134
There are frequent opportunities for the employee
voiceto be relayed to the Board through company
management, the annual engagement survey, site visits,
company events and reporting of workforce concerns
raised via the confidential reporting service operated
byNavexGlobal.
In addition, we consider that engagement by the local
company board with their own workforce, as well as
theengagement by the Board through these methods,
provides an effective platform for clear and open
communication with our global employee base. To
support this, we have also put in place reporting
mechanisms such that concerns and feedback
raisedatthe company level is fed into the Board.
The Board strongly believes that its mechanisms for
engaging with our employees are appropriate for our
decentralised structure and are an effective means of
bilateral engagement with our colleagues.
Read more about how we have supported
our colleagues in Our Stakeholders on page 68
136 Halma plc | Annual Report and Accounts 2024
BOARD ENGAGEMENT WITH EMPLOYEES
Non-executive Director engagement
Case study
In April 2023, Sharmila Nebhrajani spent two days with
our Healthcare Sector board and operating company
managing directors in Raleigh, North Carolina. The visit
was a great way for our businesses to leverage Shar’s
expertise in the healthcare industry and for Shar to
engage with management by facilitating a discussion
on some of the challenges in healthcare. During her
visit, Shar gave a presentation on key trends, including
the health economics driving resource optimisation
insystems around the world, the intersection of
healthcare and Artificial Intelligence (AI) and
sustainability-focused health procurement.
The event prompted an interesting and collaborative
discussion among all attendees on topics such as APAC
strategies, sector risks, the financial challenge across
healthcare systems and the impact of AI on products,
processes and the needs of customers.
Feedback from the visit was highly positive –
withmanyciting how Shar’s open and engaging
presentation helped them to challenge and develop
their own thinking. In line with our approach to
employee engagement, Shar reported back to the
Board and remarked that the visit had been an
excellent opportunity to experience Halma’s culture
first hand and to obtain a deeper understanding of
ourhealthcare businesses.
I know how much Halma focuses
onrecruiting and developing great
leaders but seeing the calibre of the
talent that participated in this event
was most impressive. I admire the
way in which our managing directors
embrace Halma’s purpose, live out
our DNA and have abundant curiosity
to keep up with the trendsin
thesector.
Sharmila Nebhrajani OBE
Non-executive Director
Halma plc | Annual Report and Accounts 2024 137
Financial Statements Other InformationStrategic Report
Governance Report
2024 evaluation
The 2024 Board and Committee evaluation was conducted
according to the guidance in the Code and was externally
facilitated by Ffion Hague of Independent Board
Evaluation (IBE).
The last externally facilitated evaluation was undertaken
in January 2021 and internal questionnaire based reviews
were conducted in 2022 and2023.
An update on the actions agreed by the Board, following
the 2023 evaluation, are set out in the Nomination
Committee Report on page 140. The section below
describes the process undertaken and outcomes from
the2024 Board evaluation.
IBE has reviewed the narrative set out in this Board
Evaluation section of the Corporate Governance Report.
2024 process
Selection of evaluator
The Chair and Company Secretary
recommended the appointment of IBE based
on information from a review of the board
evaluation market undertaken by the Company
in 2020, a desktop review in 2023 of changes in
the market and a proposal presentation by IBE.
The Nomination Committee supported the
recommendation, which was approved by
theBoard in July 2023.
Agreeing the scope of the review
A comprehensive brief was given to IBE by
theChair, Group Chief Executive and the
Company Secretary. The scope of the review
covered the Board, Audit Committee,
Remuneration Committee and Nomination
Committee. Individual Director feedback was
collated and shared with the Chair and the
relevant Director.
Board observation
Ffion observed the Board and Committee
meetings, in person, in January 2024, having
reviewed the agenda, papers and supporting
materials in advance.
Interviews
Individual interviews were held with each Director,
Company Secretary, members of the Executive
Board, Head of Total Rewards, the external
audit partner and remuneration advisers.
Reporting
Considered and balanced reports were
compiled by IBE, which set out the analysis
ofthe Board and its effectiveness, key
recommendations and individual Director
feedback. The report was shared with the
Chairand Company Secretary (and for each
Committee, with the Committee chair) before
being presented by Ffion at the March Board.
Individual Director feedback
Individual feedback on the Chair was provided
to the Senior Independent Director (SID) and
the reports on each Director were shared with
the Chair and the respective individual. These
reports were used by the Chair, SID and Group
Chief Executive to inform their annual
appraisaldiscussions.
Compliance
The Company has followed the principles
set out in the Chartered Governance
Institute’s Principles of Good Practice for
Listed companies using board reviewers.
Reviewer’s independence and experience
IBE is an independent board assessment practice,
founded in 2008 by Ffion Hague. IBE has not previously
undertaken an evaluation of the Halma plc Board
andhas not provided any other services to the Group.
Thereare no conflicts or other commercial relationships
between IBE and the Company, or any of its Directors,
which could compromise IBE’s independence.
Ffion was the lead evaluator for Halma’s 2024
evaluation and brought diverse experience from her
roles within the Civil Service, the not-for-profit sector
and as an executive search consultant, in addition to
her latter 15 years focusing on board evaluation. IBE
has a credible client list, comprised of many of the UK’s
largest Listed companies.
IBE is a signatory to the Chartered Governance
Institute’s Code of Practice for board reviewers and
hasapplied it in undertaking the evaluation.
Ffion Hague
Independent
Board Evaluation
138 Halma plc | Annual Report and Accounts 2024
BOARD EVALUATION
The feedback received during the Halma 2024 board review consistently
paints a picture of a high‑performing board with thoughtful and engaged
directors. It is an intellectually curious board with very positive dynamics
characterised by mutual respect among board members. This is underlined
by the fact that all board members describe the board culture as excellent
and regard it as a key strength.
All members of the board are encouraged to speak freely on any issue and
tobe as active as they wish in visiting companies and meeting members
ofthe executive team. Board and committee meetings are tightly run,
butwith scheduled private sessions and a board dinner at which more
confidential matters can be discussed. The tone in board meetings is mature
and supportive, with due respect given to the unusual business model that
has driven growth on an impressive scale over past years but with frank
feedback and challenge woven into the mix as well.
Extract from IBE’s Board evaluation report on Halma plc
March 2024
2024 Board evaluation outcomes
Following the externally facilitated evaluation, the Board concluded that it is appropriately structured, with a strong
element of independent challenge, and operating effectively, with strong governance.
While the Board was pleased with the outcomes from the evaluation, in the spirit of continuous improvement and to
build on the strong foundations that are already in place, the recommendations proposed by IBE were adopted and
the following actions have been agreed by the Board:
Recommendation Actions
Director induction
Introduce an element of governance support,
including some ‘boardcraft’ mentoring or training,
as standard for any board member who has not
previously served on a UK plc board.
Elements on boardroom culture and dynamics will be
introduced into the Director induction process. Where
a non-executive Director has not previously served on
alisted company board, this would be supplemented
with some ‘light-touch’ mentoring on the role by the
Chair or Senior Independent Director.
Post‑decision reviews
More formally reflect on key decisions made by
the Board over the year.
A specific decision reflection session will be included
onthe Board agenda annually.
Employee engagement
Consider how to supplement the Board’s
employee engagement mechanism, which
workswell for Halma.
Further opportunities for non-executive Directors
tojoin and support Halma’s training programmes
(whichcover a wide range of employees) and to
facilitate/speak at Halma’s internal development
programmes and annual conference would be sought.
Halma plc | Annual Report and Accounts 2024 139
Financial Statements Other InformationStrategic Report
Governance Report
Dame Louise Makin
Nomination Committee Chair
Committee composition and attendance
Eligible Attended
Dame Louise Makin (Chair)  
Liam Condon¹  
Carole Cran  
Jo Harlow  
Giles Kerr¹  
Dharmash Mistry  
Sharmila Nebhrajani OBE  
Tony Rice
1
 
Roy Twite
1
 
1 Liam Condon and Giles Kerr joined the Committee on 25 September 2023
and 1 February 2024 respectively. Tony Rice stepped down from the Board
on31 December 2023 and Roy Twite stepped down on 7 June 2024.
The Committee schedules three routine meetings a
year but will meet more often as the work requires.
Theattendance at each Committee meeting for the
year ended 31 March 2024 is set out in the table above.
The Committee comprises the Chair and all independent
non-executive Directors. Dame Louise Makin chairs the
Committee but she would not chair a meeting which
considers the appointment of her successor.
Only Committee members are entitled to attend
meetings although the Group Chief Executive and Group
Talent, Culture and Communications Director are regular
attendees. External search consultants are invited to
attend and present on specific items, when appropriate.
Committee activities 2023/24
The Committee operates under written terms of
reference, reviewed annually, which are available
atwww.halma.com. The Committee discharged
itsduties under its TermsofReference for the year.
Principal activities during the year included:
• Reviewing the internal and external talent pipeline as
part of the Committee’s regular succession planning
activities at Board and Executive Board level.
• Following a thorough selection process,
recommending to the Board the appointment of Liam
Condon and Giles Kerr as non-executive Directors.
• Recommendation to the Board for the appointment
of Independent Board Evaluation to undertake
Halma’s externally facilitated Board and
Committee review.
• Working with external search consultants, Lygon
Group, to seek potential non-executive director
candidates as part of the Committee’s planning
fordirectors who are serving out their final term.
• Following a comprehensive assessment,
recommending the appointment of Jo Harlow
asSenior Independent Director.
• Continuing the focus on increasing diversity
throughout the organisation.
• Updating the Board skills and experience matrix.
• Receiving a presentation from Group Talent on
whatmakes a successful operating company
CFOand how the role is evolving.
• Following the individual Director evaluations,
recommending the election and re-election of
Directors standing at the 2024 Annual
General Meeting.
140 Halma plc | Annual Report and Accounts 2024
NOMINATION COMMITTEE REPORT
Board and Executive Board composition
The Board comprises an independent Chair, six
non-executive Directors and three executive Directors.
There is a strong independent element to the Board
which ensures that the balance of power rests with
thenon-executive members of the Board and each
Boardmember brings a variety of skills, knowledge and
experience, in addition to diverse thinking. The Committee
regularly reviews the balance of skills, experience and
knowledge on the Board and its Committees – along
withthe diversity that each member brings – in order
toidentify any gaps or new skills and experience that
would benefit the Group, which helps inform Board
succession planning.
The matrix below sets out the core skills and experience
that each Director has and also identifies where
particular Directors are considered to have expertise
inacertain area.
The Executive Board comprises the three executive
Directors plus five other executives who cover a range
ofstrategic, operational, financial and technical areas.
Further background on the skills and experience of the
Board and Executive Board is set out in the biographies
on pages 122 to 125 and full biographies are available on
our website at www.halma.com.
Board and Executive Board diversity
Embracing diversity, in all its forms, enables individuals to
share their own perspective, which promotes inclusivity
and supports good decision-making by the Board and
Executive Board. The Board recognises the many benefits
of building a diverse leadership team and the tables on
page 85 set out gender, ethnic and age diversity of the
Board and Executive Board at the date of this Report.
Our Board Diversity Policy, which is available at
www.halma.com, was updated in March 2022 to reflect
the targets set by the FTSE Women LeadersReview on
gender diversity. The Policy also affirmsour commitments,
on ethnic diversity, as a signatory to the Change the
RaceRatio. Halma has maintained at least one ethnically
diverse Director on theBoard since 2011, which is prior to
the publication ofthe Parker Review’s original report in
October 2017. Wetook the opportunity in our March 2022
Policy to gobeyond the Parker Review recommendation,
by committing to maintain our current composition of
twoethnically diverse Directors on theBoard.
The Committee is pleased to report that during the
financial year ended 31 March 2024 and up to the date
ofthis Report, the Board had met these targets:
• at least 40% of the individuals on the Board
are women;
• the Chair and Senior Independent Director are women;
and
• at least one individual on the Board is from a minority
ethnic background.
The Company has collected the diversity data used for
these purposes from each individual on a voluntary basis.
In March 2023, the Parker Review published an update
report entitled “Improving Ethnic Diversity in UK Business”
and requested that Boards of FTSE 350 companies set
their own target, by December 2023, for the percentage
of their senior management group who self-identify as
being in an ethnic minority. The Board and management
considered what that target should be for the Company
and agreed at its November 2023 meeting that 20-30% is
a suitable target range to be achieved by December 2027.
Board skills and experience
Dame Louise
Makin
Marc
Ronchetti
Steve
Gunning
Jennifer
Ward
Carole
Cran
Jo
Harlow
Dharmash
Mistry
Sharmila
Nebhrajani
OBE
Liam
Condon
Giles
Kerr
Strategy & M&A
Finance & accounting
Risk management & regulation
Digital and technology
Engineering sector
Life sciences & healthcare
Sustainability
Talent and remuneration
International experience
Listed CEO/CFO
Expertise Experience
Halma plc | Annual Report and Accounts 2024 141
Financial Statements Other InformationStrategic Report
Governance Report
Board appointment process
The Board has an established approach for identifying
and evaluating suitable candidates for Board positions.
Prior to the Committee making a recommendation to
theBoard for a Director appointment, it undertakes the
following steps:
• Agrees the skills, experience and knowledge required for,
and complementary to, the role.
• Approves the role specification.
• Selects an independent global executive search
firm,which understands Halma’s business model
andculture, to prepare a long list of diverse external
candidates and, for executive roles where there are
internal candidates that have been identified through
the Committee’s succession planning, to benchmark
those candidates. For the year ended 31 March 2024,
the Committee used the services of executive search
consultancy, Lygon Group – who are not connected to
the Company or any Halma Director – to source suitable
candidates for two non-executive Director roles.
• Reviews the long list of candidate profiles and, based
on insight derived internally or from the search firm,
creates a shortlist of diverse candidates for interview.
• For non-executive positions, interviews are held with
members of the Committee (including the Chair), the
Group Chief Executive and the Group Talent, Culture
and Communications Director. For executive positions,
the Chair and non-executive Directors lead the interview
process and seek input from other executives,
as appropriate.
• The Committee members meet to share their feedback
on each candidate and will compare their assessment
against the role criteria, along with any reference
information provided by the search firm. Maintaining
afocus on gender and ethnic diversity, while ensuring
that other elements of diversity are not overlooked,
remains an important factor for the Committee. Where
elements of diversity will be lost when certain Directors
come to the end of their tenure, the Committee aimsto
ensure that it will remain diverse or will seek a replacement
Director to maintain/restore that element of diversity to
the Board and its Committees.
• A preferred candidate is selected by the Committee
and, following discussion with the candidate, a formal
decision is taken to recommend their appointment to
the Board.
• If the Board approves the appointment, the
Companyannounces the decision via a regulatory
information service.
Board and Executive Board – Gender Diversity as at 13 June 2024
Number of
Board Members
Percentage of
the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
& Chair)
Number in
Executive
Management
Percentage of
Executive
Management
Men  %   %
Women  %   %
Board and Executive Board – Ethnic Diversity as at 13 June 2024
Number of
Board Members
Percentage of
the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
& Chair)
Number in
Executive
Management
Percentage of
Executive
Management
White British or other White (including minority-white groups)  %   %
Mixed/Multiple Ethnic Groups – – –  %
Asian/Asian British  % –  %
Black/African/Caribbean/Black British – – –  %
Other ethnic group, including Arab – – – – –
Board and Executive Board – Age Diversity as at 13 June 2024
Number of
Board Members
Percentage of
the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
& Chair)
Number in
Executive
Management
Percentage of
Executive
Management
40–49  %   %
50–59  %   %
60–69  %  – –
70–79  – – – –
142 Halma plc | Annual Report and Accounts 2024
NOMINATION COMMITTEE REPORT continued
Director induction process
Newly appointed Directors follow a tailored induction
programme, which includes dedicated time with each
Board and Executive Board member, the Company
Secretary, Divisional Chief Executives and functional
experts. A schedule of company visits across each of
thethree sectors is arranged for the Director and they
arerequired to attend the Accelerate CEO conference
and other Company events throughout the year. The
induction aims for Directors to become swiftly acquainted
with Halma’s strategy, business model, DNA(cultural
andorganisational genes) and governance structure
priortothem building their understanding of each sector
andour companies. In addition, a briefing onstatutory
duties and listed company regulation is provided to new
Directors and updated at least annually and presented
atthe Board for the benefit of all.
Executive Directors may undertake tailored professional
development as part of their onboarding plan, such as
business management, personal development or
mentoring programmes.
The Chair mentors new Directors to ensure that they
understand the Board culture and boardroom dynamics.
At least annually, the training and development needs of
the Board, and for each Director, are reviewed.
Annual Board and Committee evaluations
The Committee reviews the process and output from the
annual Board and Committee evaluations. The formal
evaluation process involves a review of the performance
of each Director through individual meetings held with
the Chair and for the Chair, an appraisal is undertaken by
the non-executive Directors collectively and fed back via
the Senior Independent Director. The Board undertakes
an evaluation of its own performance and effectiveness,
with the findings and proposed actions being presented
at the Board by the Chair.
Each Committee undertakes its own evaluation and the
findings and proposed actions are formally reviewed at
the relevant Committee meeting. Progress against
agreed actions is monitored by the Company Secretary
throughout the year and a formal review is undertaken
ahead of the next evaluation cycle, to ensure that the
actions have been, or will be, appropriately closed out.
The results from the Audit Committee and Remuneration
Committee evaluations are discussed in the respective
Committee Reports and the results from the
Committee’s own evaluation are set out below.
Progress on 2023 actions
Based on the feedback from last year’s internal Board
evaluation, the Board agreed four areas of focus for 2024.
Each area identified has been actioned and a summary
of the progress made is set out below.
• Rotational presentations from the Sector Chief
Executives now include more insights on the market
trends in the sector, evolving and disruptive
technologies (including AI) and business models.
• Mega trends and the competitive landscape were
topics specifically covered at the Board’s annual
strategy meeting in September 2023.
• Further opportunities for senior management and
Non-executive Directors to interact have been
developed, while the immensely valued Non-executive
Director and Divisional Chief Executive dinner is now
anannual item in the calendar.
• More detail on the M&A pipeline has been included in
Board papers and M&A proposals have been expanded
to provide details on the Executive Board’s appraisal of
the opportunity, including questions raised by individual
Executive Board members.
2023/24 Evaluation
The Committee normally utilises an external evaluator
ona triennial basis and the Chair, with the support of
theCompany Secretary, formulates a bespoke internal
questionnaire in the two years in between. The last
externally facilitated evaluation was undertaken in 2021
and an internal evaluation was undertaken for 2022 and
2023. For the year ending 31 March 2024, an externally
facilitated evaluation was carried out by Independent
Board Evaluation (IBE); details of the process and output
for this is detailed on pages 138 and 139. IBE’s analysis
concluded that the Committee is well functioning, active
and forward thinking. The only recommendation was
tomaintain a focus on cultural fit for potential
appointments, before filtering for desired skills and
experience – to enable the broadest diversity in the
initialcandidate pool.
Following the annual evaluation, and the individual
performance reviews undertaken by the Chair, all
Directors that are standing for election or re-election
areconsidered to be effective in their role, hold recent
and relevant experience applicable for Halma’s business
and they each continue to add value and demonstrate
commitment to their role. Accordingly, the Board is
recommending to shareholders the election or
re-electionof the Directors standing at the 2024 AGM.
Dame Louise Makin
Committee Chair
For and on behalf of the Committee 13 June 2024
Halma plc | Annual Report and Accounts 2024 143
Financial Statements Other InformationStrategic Report
Governance Report
Carole Cran
Audit Committee Chair
Committee composition and attendance
Eligible Attended
Carole Cran (Chair)  
Jo Harlow  
Dharmash Mistry  
Sharmila Nebhrajani OBE  
Tony Rice

 
Roy Twite

 
Liam Condon

 
Giles Kerr

 
1 Liam Condon and Giles Kerr joined the Committee on 25 September 2023
and 1 February 2024 respectively. Tony Rice stepped down from the Board on
31 December 2023 and Roy Twite stepped down on 7 June 2024.
The Committee has four scheduled meetings per
year,to coincide with the key events in the corporate
reporting calendar and audit cycle. The attendance at
each Committee meeting, for the year ended 31 March
2024, is set out in the table above.
Committee roles and responsibilities
The Committee has a wide-ranging remit, which
covers reviewing and monitoring the integrity of the
financial statements and other financial information,
internal controls and risk management, the external
and internal audit and assurance processes and
compliance with laws, regulations and ethical codes
ofpractice. The Committee Terms of Reference,
whichdescribe the roles and responsibilities of
theCommittee, can be found on our website,
www.halma.com. The Committee discharged its
dutiesunder its Terms of Reference, and in line with
theFRC’s Minimum Standard, for the year. Key
activities included:
Committeeactivities2023/24
• Reviewing the Half Year Results and Annual Report
and Accounts and considering the key accounting
judgements and estimates that affect the application
of the policies and reported values andapproving the
Group’s going concern and Viability statements.
• Reviewing the risk and internal control processes,
including preparatory work for the forthcoming
newUK Corporate Governance Code requirements
inrelation to risk and internal control.
• Reviewing the internal audit and assurance processes.
• Reviewing and monitoring the whistleblowing,
compliance and bribery procedures, as well as
anyreports raised, throughout the year.
• Agreeing the external Auditor fee and confirming
their independence and effectiveness.
• Approving the Internal Audit Charter and work plan.
• Receiving updates on TCFD and the reporting
landscape from the Head of Sustainability,
andreviewing and approving TCFD disclosures.
• Considering emerging financial reporting and
governance topics.
• Keeping abreast of progress on the implementation
of the Group’s new Enterprise Performance
Management (EPM) system.
• Reviewing the Group’s Principal and Emerging Risks.
• Considering the output of the annual Committee
evaluation and agreeing appropriate actions.
• Receiving a presentation on the controls environment
in the Environmental & Analysis Sector by the Sector
Chief Executive.
• Receiving a presentation on Treasury risk and internal
controls, presented by the Director of Treasury
and Tax.
• Reviewing the output of the Financial Reporting
Council report on Audit Quality Review.
• Considering the output of the Internal Audit
effectiveness review.
• Reviewing the Committee’s Terms of Reference
andAuditor Independence Policy.
144 Halma plc | Annual Report and Accounts 2024
AUDIT COMMITTEE REPORT
Committee composition and appointment
The Committee comprises seven independent
non-executive Directors. Carole Cran is Chair of the
Committee and continues to have recent and relevant
financial experience and competence in accounting,
seepage122 for her biography. The Committee as a
whole has competence relevant to the Group, with
eachmember bringing valuable experience, diversity
ofthought and independent judgement. Biographies
foreach member of the Committee are set out on
pages122and 123.
Only Committee members are entitled to attend
meetings, although the Committee Chair invites the
Board Chair, Executive Directors, Group Financial
Controller, Director of Internal Audit & Assurance and
representatives from the external Auditor to regularly
attend meetings. Appointments to the Committee
aremade by the Board and the remuneration of the
Committee Chair reflects the additional responsibilities
and time commitment required in the role.
The induction process for new members of the Committee
includes meeting with key individuals – including the
Committee Chair, the Chief Financial Officer, the Director
of Internal Audit & Assurance and theexternal Auditor.
The Committee receives relevant updates throughout
theyear including from the external Auditor and other
professional advisers on matters relevant to financial
reporting, technical accounting and governance, internal
control, tax, audit and risk, and may request additional
information, as required. All members of the Committee
further their internal network and knowledge of the
companies through company visits, corporate events
andthe Accelerate conference.
Governance
The Committee, and independently the Committee
Chair, regularly meets with the Director of Internal Audit
& Assurance and separately with the external Auditor,
without any Executive Directors present. The Committee
Chair maintains regular contact with management,
particularly the Chief Financial Officer, Group Financial
Controller and the Company Secretary.
The Committee Chair sets the forward agenda for the
year but also allows for flexibility in the timing and the
schedule to ensure that new or unforeseen areas can be
appropriately reviewed. The agenda and meeting papers
are circulated in a timely manner, in accordance with the
terms of reference.
The Committee Chair reports to the Board after each
meeting on the key matters discussed. Minutes are
circulated to all Board members and the external Auditor
once they have been approved by the Committee.
Internal Audit reports that identify any significant control
or compliance weakness, or other risk that requires
immediate management attention, are circulated to the
Committee via the Company Secretary when the report
is issued. At the same time, commentary from the Chief
Financial Officer and Divisional Chief Executive on the
background to the weakness, any mitigating controls
andthe actions being taken to address the findings is
shared with Committee members.
Committee evaluation
An evaluation of the Committee’s own effectiveness is
undertaken each year and the findings are reported to
theBoard. In 2024, this evaluation took the form of an
externally facilitated review. The 2024 externally facilitated
evaluation confirmed that the Committee is working
effectively and the Committee members considered
ittobe exercising good oversight of the reporting
andcontrols environment, taking full account of the
autonomous model. The Committee Chair presented
feedback to theCommittee at its June 2024 meeting
andactions wereagreed.
Financial Statements and significant
accounting matters
During the year, and prior to the publication of the
Group’s results for the half year ended 30 September 2023
and the full year ended 31 March 2024, the Committee
considered the key judgements and estimates made in
relation to the Group’s financial statements.
These issues were discussed with management at various
stages during the year and during the preparation and
finalisation of the financial statements. After reviewing
the presentations and reports from management, the
Committee is satisfied that the financial statements
appropriately address the key accounting judgements
and estimates, set out on the following page, both in
respect of the amounts reported and the disclosures
made. The Committee is also satisfied that the significant
assumptions used for determining the value of assets and
liabilities have been appropriately scrutinised, challenged
and are sufficiently robust. The Committee has discussed
these issues with the external Auditor during the audit
planning process and at the finalisation of the year end
audit and is satisfied that its conclusions are in line with
those drawn by the external Auditor in relation to
theseissues.
Halma plc | Annual Report and Accounts 2024 145
Financial Statements Other InformationStrategic Report
Governance Report
Significant risks and material issues,
judgementsand estimates How the Committee addressed each area and conclusion
Value of goodwill, due to
the significance of the
amounts recorded on the
Consolidated Balance
Sheet, and the
judgements and
estimates involved in
assessing goodwill for
impairment.
• Focusing on, monitoring regularly, and constructively challenging the reasonableness of
the assumptions used in impairment calculations by management, in particular discount
rates, growth rates, the level of aggregation of individual cash generating units (CGUs)
and methodology applied, including application of reasonably possible sensitivities.
• Considering the appropriateness and reasonableness of stated judgements and
conclusions included in the disclosures in note 11 to the Accounts.
• In particular, during the year, considering the CGU groups to which the Group’s eight
acquisitions were attributed, and the assessment of the impact of the challenging
trading conditions seen in certain CGU groups within the Healthcare Sector.
Carrying value of
acquired intangibles
across the Group and the
adequacy of future cash
flows.
• Focusing on and challenging the assessment of the presence of impairment indicators
that warrant an impairment test of an asset.
• Constructively challenging the reasonableness of assumptions used in impairment
calculations by management, in particular discount rates and asset specific growth rates.
Risk that acquisitions are
not accounted for
correctly in line with IFRS
3 “Business
combinations”.
• Challenging the appropriateness of assumptions used in determining the fair value of the
acquired intangible assets and residual goodwill identified, and the reasonableness of the
disclosures included in note 25 to the Accounts.
• The fair value of acquired intangible assets and carrying values arising on the eight
acquisitions in the year, particularly in relation to the material/larger acquisitions of
Sewertronics, Lazer Safe, AprioMed, Alpha Instrumatics, TeDan Surgical Innovations
(TeDan), Ziegler Electronic Devices and Rovers Medical Devices (Rovers).
Valuation of contingent
consideration arising on
acquisitions in current
and prior periods.
• Assessing treatments of contingent consideration payment arrangements against the
requirements of IFRS 3 and IFRS 13.
• Considering assumptions made around forecasts used in calculations.
• In particular, at 31 March 2024, the treatment and valuation of the contingent
consideration provisions in relation to Visiometrics, Infinite Leap, Sewertronics,
VisualImaging Resources, TeDan, Alpha Instrumatics and Rovers.
Judgements and
estimates involved in
valuing defined benefit
pension plans.
• Assessing the assumptions in determining pension obligations and determining whether
key assumptions were reasonable, particularly the assumptions around mortality, discount
rate and inflation that are most material to the Group’s plans and resulted inretirement
benefit assets being recognised for the Group at 31 March 2024.
• The recognition of the plan surpluses in accordance with IFRIC 14.
Compliance risks with
existing and evolving tax
legislation, and
judgements around
uncertain tax positions
including the
recoverability of the tax
receivable balances.
• Assessing the position taken with regards to tax judgements.
• The judgements around the carrying value of tax provisions and uncertainties, in particular,
the potential impact on the Group of the European Commission’s decision against the
UKgovernment relating to the UK Controlled Foreign Company partial exemption being
illegal State Aid.
• Understanding the evolving BEPS Pillar 2 legislation and the likely compliance impact
onthe Group.
Carrying value of
investments (Company
only).
• Constructively challenging the reasonableness of the assumptions used in impairment
calculations by management, in particular discount rates and future cash flows.
• Considering the accounting for and disclosure made in respect to the immaterial
impairment made to one of the Company’s investments.
Going concern status of
the Group and any
impact to future viability.
• The evidence supporting the going concern basis of accounts preparation, the Viability
statement and the risk management and internal control disclosure requirements.
Task Force on
Climate-related Financial
Disclosures (TCFD)
• The work undertaken to continue to assess and manage the climate-related risks
andopportunities for the Group and the associated reporting in accordance with
theTCFD framework.
In addition, the Committee considered the presence of any significant product failures or other legal cases in the
period that would warrant the inclusion of a significant warranty or legal provision, and assessed the capitalisation
and carrying value of Capitalised Development Costs in line with the accounting policy and standards.
146 Halma plc | Annual Report and Accounts 2024
AUDIT COMMITTEE REPORT continued
External Auditor
The Committee monitors the effectiveness of the external
Auditor throughout the year and annually conducts an
evaluation of the external audit, by way of a tailored
online questionnaire, further details are set out on
page148. The assessment highlighted no major concerns
and the insights from the questionnaires have been
discussed both internally and with PwC, to assist with
theplanning of future work. The Committee concluded
that it was satisfied with the Auditor’s performance in
discharging the Full Year audit and the Half Year review;
the independence and objectivity of the Auditor; the
robustness of the audit process, including how the
Auditor demonstrated professional scepticism and
challenged managements assumptions and the quality
of service and delivery of the audit. Accordingly, the
Committee recommends that PwC are reappointed
asAuditor at the 2024 Annual General Meeting (AGM).
Audit tendering
The Committee has primary responsibility for
recommending to the Board the appointment or
reappointment of the external Auditor before it is put
toshareholders at the AGM. The Committee will, at the
appropriate time, lead the audit tender process. This
process will be carried out at least every 10 years and,
unless it is undertaken earlier, it is the Committee’s policy
to consider whether a tender is appropriate every five years
– to coincide with the change in Senior Statutory Auditor.
Following a tender process, PwC were appointed Auditor
to the Company at the AGM in 2017. In accordance with
our Auditor Independence Policy, which requires us to
change our audit partner every five years, Christopher
Richmond was appointed Senior Statutory Auditor for
thefinancial period commencing 1 April 2022.
In 2021, prior to any decision on the rotation of the
SeniorStatutory Auditor, the Committee considered
thepossibility of re-tendering the external audit function
and concluded that it was satisfied that PwC was
effective and remained independent in accordance with
our Auditor Independence Policy and the FRC’s Ethical
Standard, and that a tender process was not appropriate
at that time.
Whilst the Committee remains satisfied that PwC are
effective and independent, it is currently anticipated that
the next competitive external audit tender will commence
during 2026 with a recommendation put to shareholders
at the 2027 AGM. The proposed tender date is in the best
interests of shareholders and the Company as PwC has a
detailed knowledge of our business, an understanding of
our industry and continues to demonstrate that it has the
necessary expertise and capability to undertake the audit.
Statement of compliance
The Company confirms that it complied throughout the
year with the provisions of the Competition and Markets
Authority’s Statutory Audit Services for Large Companies
Market Investigation (Mandatory Use of Competitive
Tender Processes and Audit Committee Responsibilities)
Order 2014.
Auditor objectivity and independence
(includingnon‑audit fees)
The Group has adopted a Policy on “Auditor
Independence and Services provided by the External
Auditor” which sets out the limited services that the
external Auditor can provide to Group companies, which
do not conflict with the Auditor’s independence.
The Policy was updated in 2020 to align with the FRC’s
revised Ethical Standard which applied from March 2020.
The Committee continues to monitor changes in
legislation related to auditor independence and
objectivity and annually reviews the Policy.
In addition to Halma’s Policy, the Auditor runs its own
independence and compliance checks, prior to accepting
any engagement, to ensure that all non-audit work is
compliant with the Ethical Standard in force and that
there is no conflict of interest.
As disclosed in the Independent Auditor’s Report on
page184, a minor breach to PwC’s independence was
identified during the year. In August 2023, shortly after
the acquisition, PwC submitted a request to change the
tax year end for Lazer Safe Pty. Ltd. to the Australian Tax
Office, with fees totalling A$1,500. Prior approval had not
been sought by the local PwC team, however both PwC
and the Committee are satisfied that this has not
affected PwC’s professional judgements in connection
with the audit of the year ended 31 March 2024.
During the year, five pieces of permitted audit related
services work (in addition to the Half Year review) were
undertaken by PwC. These were in respect of a liquidity
test pertaining to a dividend distribution in Belgium,
which must be performed by an auditor, a verification
forthe King’s Awards for Enterprise 2024, in respect of
Fortress Interlocks Limited, provision of legal support in
respect of the establishment of a Japanese subsidiary,
R&D activities for FY23 for Italian based entity, Sensitron
SRL and a report to support a grant claim for Hydreka
SAS, with total fees of c.£23,000. It was deemed
appropriate to use PwC in respect of these five items
ofwork given their understanding of the business
andinvolvement in the Group audit.
Additionally, PwC provided access to their technical
guidance toolkit, for a total fee of c.£1,300. All work was
pre-approved by the Committee Chair and reported to
the Committee in accordance with our Policy.
The audit fees payable to PwC for the year ended
31 March 2024 were £3.2m (2023:£2.6m) and permitted
audit related service fees were £0.1m (2023:£0.1m).
Other non-audit services totalled less than £0.1m in both
the current and preceding year. The total of audit related
and non-audit related services for the year totalled c.7%
of three year average audit fees, significantly below the
limit of 70% required by the Policy.
Halma plc | Annual Report and Accounts 2024 147
Financial Statements Other InformationStrategic Report
Governance Report
Evaluation of the effectiveness and quality
oftheexternal Auditor
The effectiveness of the external Auditor throughout the
year, including through:
• FRC’s Audit Quality Inspection and Supervision
report 2022/23 – the Committee reviewed the results
of the FRC’s Audit Quality Inspection and Supervision
report 2022/23 during the year and noted that the FRC
had concluded that PwC continued to invest in
improvements in audit quality, through a focus of
culture and resourcing initiatives.
• Progress against audit plan and strategy – the
Committee continually evaluated and monitored
progress against the agreed audit plan and strategy
and any issues or reasons for variation from the plan
were identified, discussed and agreed with the Auditor.
The Committee approved the Auditor’s fees for the year
under review.
• Auditor reports to the Committee – through PwC’s
formal reports to the Committee at each meeting the
Committee track and consider the work undertaken by
the Auditor during the year.
• Interaction with Auditor – the Committee Chair, the
Chief Financial Officer and management have regular
communication with the Auditor throughout the year
and are able to raise issues and discuss key deliverables
as the year progresses. The Committee recognises that
PwC have appropriately challenged management on
key judgements and estimates throughout the year,
asdetailed in the significant risks and material issues,
judgements and estimates table above.
• Audit tender and rotation – in accordance with our
Auditor Independence Policy, the Committee reviews
the appropriateness of tendering the external audit
function every five years and, in conjunction with this,
will rotate statutory audit partner at least every five
years, the most recent rotation of which took place
in2022, with a new audit partner in place for FY23.
• Annual internal effectiveness survey – a tailored
online questionnaire is circulated and completed by
Committee members, other senior management and
company CFOs who are engaged in the audit process,
the outcomes of which are reported to the Committee
and the Board. A summary of the process and key
findings is set out below.
External audit evaluation process:
Bespoke questionnaire covering:
• External audit partner time commitment.
• Quality of the team.
• Accounting, technical and governance insight.
• Policies for compliance with the revised
Ethical Standards.
• Quality and timeliness of reporting.
• Clarity and authority of communications.
Results:
• Results of the questionnaire are collated centrally
by the Group Financial Controller and a summary
of the findings and the FRC’s AQR Report on PwC
as a firm, are provide to the Committee and PwC.
Questionnaire completed by:
• Committee members.
• Group Chief Executive.
• Chief Financial Officer.
• Director of Internal Audit and Assurance.
• Company Secretary.
• Company CFOs.
• Sector CFOs.
• Group Financial Controller.
Outcome:
• Following a review by the Committee of the
output from the 2024 questionnaire and the AQR
findings, the Committee confirmed that PwC is
effective as external Auditor to the Company and
recommend to the Board their reappointment as
Auditor to be proposed at the 2024 AGM.
148 Halma plc | Annual Report and Accounts 2024
AUDIT COMMITTEE REPORT continued
Risk management and internal controls
The Committee maintains oversight of the risk
management and internal control framework and
systems (including financial, operational and compliance
controls) and monitors its effectiveness, reporting back
tothe Board, which has ultimate responsibility to the
shareholders for the Group’s system of internal control
and risk management. While not providing absolute
assurance against material misstatements or loss, this
system is designed to identify and manage those risks
that could adversely impact the achievement of the
Group’s objectives. The Group’s risk and control
governance framework is detailed on page106 and
therisk management and internal control processes
aredetailed on pages 104 to 107.
Regular reporting to the Committee by the Director of
Internal Audit & Assurance, as well as findings of internal
audits by circulation between meetings, ensures that
there is a good understanding of any non-compliance
that arises and the swift action being taken to close
anygaps. The Committee receives regular reports from
management throughout the year on the financial
reporting control and risk management environment,
aswell as receiving presentations from Sector Chief
Executives and Financial Officers, and heads of Tax,
Treasury, Sustainability and Risk & Compliance on their
control and assurance processes, which form the basis of
the Committee’s annual review of the Group’s financial
and accounting systems. The Group’s external Auditor,
PwC, has audited the financial statements and has
reviewed the financial control framework to the extent
considered necessary to support the audit report.
The Committee regularly reviews the ongoing process
inplace for identifying, evaluating and managing the
emerging and principal risks faced by the Group, as
detailed on pages108 to 117, and for determining the
nature and extent of the risks it is willing to take in
achieving its strategic priorities. This risk framework is
inaccordance with the Guidance on Risk Management,
Internal Control and Related Financial and
BusinessReporting.
In January 2024, the FRC published a revised UK Corporate
Governance Code, following a consultation during 2023.
During the consultation process, the Group’srisk and
internal controls environment was furtherstrengthened in
preparation for the proposed UK Corporate Governance
Code reforms. The Committee oversaw work undertaken
by a steering committee, comprised of the Chief Financial
Officer, Director of Internal Audit & Assurance, Director
ofRisk & Compliance, Group Financial Controller and
theCompany Secretary; the purpose of which was
primarily to assess Halma’s risk and control framework.
The Committee are well placed to report against the
newinternal control provision in the 2024 UK Corporate
Governance Code, effective for Halma from 1 April 2026.
The Committee is satisfied that the risk management and
internal control framework remains robust and effective,
while still allowing autonomous and agile decision-making
which is essential to Halma’s decentralised structure and
an integral part of Halma’s growth strategy. No significant
failings or weaknesses have been identified in the
internalcontrols.
Whistleblowing
The Committee has responsibility for reviewing the
adequacy and security of the Group’s arrangements
foremployees and contractors to raise concerns about
possible improprieties in financial reporting, fraud or
otherfinancial or ethical misconduct.
Halma has appointed an external third-party provider,
NavexGlobal, to operate a confidential, multilingual,
telephone and web reporting service, 24/7, through
whichconcerns can be raised. Further details are set
outin the non-financial & sustainability information
statement on page100.
The Director of Risk & Compliance receives and reviews
allreports to ensure that they are appropriately
investigated and all allegations of fraud or financial
misconduct are reported to the Committee. In line
withmany listed companies, most matters reported
through the NavexGlobal service relate to personnel/HR
matters and, while these are not areas for review by the
Committee, such matters are duly investigated in the
same manner and reported directly to the Board in its
role of monitoring culture and workforce concerns.
Following a review during the year, the Committee
issatisfied with the adequacy and security of the
arrangements in place for concerns to be raised.
Climate‑related disclosures
The Committee has overall responsibility for approving
the disclosures made under the climate-related Listing
Rule 9.8.6R(8). The Committee has continued to receive
updates during the year on progress made against
reporting on the climate-related disclosures. These are
consistent with the TCFD recommendations and the 11
recommended disclosures under TCFD, as required by
theListing Rules.
Halma plc | Annual Report and Accounts 2024 149
Financial Statements Other InformationStrategic Report
Governance Report
Internal Audit & Assurance
The Internal Audit & Assurance function comprises the
Director of Internal Audit & Assurance and six audit
managers – three based in the UK, two in the US and
onein China, and a systems and data administrator.
External co-source is also utilised for certain specialist
areas as required, such as cyber risk and sustainability.
Arisk based audit work plan is agreed by the Committee
annually and seeks to provide assurance at principal risk
level and also other areas such as companies’ compliance
with the Halma control framework. Progress against the
audit plan is reviewed at each Committee meeting, in
order that any changes in priorities or resourcing can be
discussed and agreed. Pulse checks are also undertaken
to provide an additional assurance snapshot. These are
shorter verbal assurance touchpoints that take place mid-
way between full audits. Pulse checks are also used for
recent acquisitions and are performed six months after
the date of the acquisition to check progress, followed by
a full audit at 12 months.
The Committee has oversight of the Internal Audit &
Assurance budget and resources available and it has
satisfied itself that the function has the appropriate
levelof resources and funds available to undertake its
role. AllInternal Audit reports are issued to management
andthe external Auditor.
Evaluation of the effectiveness and quality of the
Internal Audit function
The effectiveness of the Internal Audit function is
monitored throughout the year, including through:
• Progress against the Internal Audit plan –
theCommittee reviews and discusses progress
madeagainst an agreed Internal Audit action
planateach meeting.
• Internal Audit reports to the Committee –
InternalAudit reports are presented at each
Committeemeeting for review and discussion.
• Annual review of the Internal Audit & Assurance
charter – the Committee annually reviews and
approves changes to the Internal Audit &
Assurance charter.
• Annual internal effectiveness survey – a tailored
online questionnaire is circulated and completed by
Committee members and other senior management
who are engaged in the audit process, the outcomes
ofwhich are reported to the Committee and the Board.
A summary of the process and key findings is set out below.
Internal audit evaluation process and outcome
Bespoke questionnaire covering:
• The functions’ position and reporting lines.
• Internal audit scope and its relevance to
our business.
• Audit approach.
• Quality of the team.
• Reliability and quality of reporting.
• Use of technology and communication.
Results:
• The responses from the questionnaire are
collatedcentrally and a summary of the findings
isprovided to the Committee to consider the
overall effectiveness of the function and any
action required.
Questionnaire completed by:
• Board members.
• Executive Board members.
• Sector CFOs.
• Group Financial Controller.
• Managing Director for Halma IT.
• Divisional Chief Executives.
• Company Secretary.
• PwC Audit Partner.
Outcome:
• Following a review by the Committee of the
output of the 2024 questionnaires and direct
feedback from the Chief Financial Officer and
theChair, the Committee concluded that the
quality, experience and expertise of the
InternalAudit function is effective.
150 Halma plc | Annual Report and Accounts 2024
AUDIT COMMITTEE REPORT continued
Fair, balanced and understandable
To ensure that the report and accounts are fair,
balancedand understandable, the Committee considers
the output from a series of focused exercises that take
place during the Annual Report and Accounts production
process. These can be summarised as follows:
• A qualitative review, performed by the Group’s
Financeand Secretarial functions, of disclosures and a
review of internal consistency throughout the Annual
Report and Accounts. This review assesses the Annual
Report and Accounts against objective criteria drawn
up for each component of the requirement (individual
criteria that indicate “fairness”, “balance” and
“understandability” as well as criteria that overlap
twoor more components).
• A risk comparison review which assesses the consistency
of the presentation of risks and significant judgements
throughout the main areas of risk disclosure in the
Annual Report and Accounts.
• A formal review of all Board and Committee meeting
minutes by the Company Secretary to ensure that all
significant issues are appropriately reflected and
givendue prominence in narrative reporting.
• Availability to the Committee of the key working
papersand results for each of the significant issues
andjudgements considered by the Committee in
the period.
The Directors’ statement on a fair, balanced and
understandable Annual Report and Accounts is set out
onpage182.
Carole Cran
Committee Chair
For and on behalf of the Committee 13 June 2024
Halma plc | Annual Report and Accounts 2024 151
Financial Statements Other InformationStrategic Report
Governance Report
Jo Harlow
Remuneration Committee Chair
Committee composition and attendance
Eligible Attended
Jo Harlow (Chair)  
Carole Cran  
Dame Louise Makin  
Dharmash Mistry  
Sharmila Nebhrajani OBE  
Tony Rice
1
 
Roy Twite
1
 
Liam Condon
1
 
Giles Kerr
1
 
1 Liam Condon and Giles Kerr joined the Committee on 25 September 2023
and 1 February 2024 respectively. Tony Rice stepped down from the Board on
31 December 2023 and Roy Twite stepped down on 7 June 2024.
The Committee comprises of the non-executive
Directors set out in the table above, with Jo Harlow as
Chair. All members of the Committee are considered
independent within the definition set out in the Code.
No member of the Committee has any personal
financial interest in Halma (other than as shareholders),
conflicts of interests arising from cross directorships
orday-to-day involvement in running thebusiness.
The Committee schedules four routine meetings a year
but will meet more often, if required. This year, the
Committee met formally four times. The attendance
at each Committee meeting, for the year ended
31 March 2024 is set out in the table above.
Only members of the Committee have the right
toattend Committee meetings. The Group Chief
Executive, the Chief Financial Officer, the Group
Talent,Culture and Communications Director and
Director of Total Rewards attend Committee meetings
by invitation but are not present when their own
remuneration is discussed. The Committee also
takesindependent professional advice as required.
Committee activities 2023/24
The Committee discharged its duties under its Terms
ofReference for the year. The Committee’s main
activities through the financial year are set out below:
• Reviewed the 2023 Directors’ Remuneration
Report,including narrative on the Real Living Wage,
GenderPay Gap and the Chief Executive pay ratio.
• Approved the 2023 annual bonus payout and
Executive Share Plan (ESP) vesting.
• Approved 1 June 2023 merit increases for the
Executive Board.
• Progressed discussions on the 2024 Directors’
Remuneration Policy review, which included
examining benchmarking, shareholder feedback
andstrategy considerations as part of the process.
• Approved the 2024 annual bonus and ESP targets.
• Discussed wider workforce remuneration, including
acost of living update and non-executive Director
engagement with employees.
• Received executive remuneration governance and
market updates from our remuneration consultants,
WTW.
• Reviewed the Committee’s Terms of Reference.
• Discussed the 2025 annual bonus targets.
• Reviewed a draft of the Committee Chair’s letter
forthe 2024 Directors’ Remuneration Report.
• Considered the output of the Committee
effectiveness review.
• Discussed agenda items for the Committee
meetings to be held through the 2025 financial year.
152 Halma plc | Annual Report and Accounts 2024
REMUNERATION COMMITTEE REPORT
On behalf of the Board, I am pleased to present our
Directors’ Remuneration Report for the year ended
31 March 2024. This statement sets out the work of
theCommittee during the year and provides context
forthedecisions taken.
The context of remuneration in 2024
Our performance
I am also pleased to be presenting this report against a
backdrop of strong financial results, as Halma reports
its21st consecutive year of profit growth, delivering 45
consecutive years of dividend per share growth of 5%
ormore.
We continue to see a story of growth and success in a
continually challenging macroenvironment. Over the
lastyear, we delivered continued high returns and
stronggrowth and the highlights are:
• Revenue and Adjusted
1
profit both grew by 10%.
• Adjusted
1
earnings per share increased by 8%.
• Return on Sales of 19.5% was within our KPI target
range of 18-22%.
• Return on Total Invested Capital (ROTIC) of 14.4%
remained well above our Weighted Average Cost
ofCapital estimated at 9.7%.
• Our total shareholder return has continued to
outperform the FTSE 100 index, with an investment
of£100 in Halma shares on 31 March 2014 worth £459.3
on31 March 2024 compared to £176.9 for a similar
investment in the FTSE 100 index.
Our people
Halma’s employees remain instrumental to the Halma
success story.
It is recognised that the cost-of-living crisis had an
impacton our employees and as such I am pleased that
in addition to introducing initiatives that support financial
resilience, Halma has continued to meet its commitment
to pay the Real Living Wage across its UK workforce with
effect from 1 June 2024.
Halma also continues to invest in initiatives to support all
aspects of wellbeing like the introduction of the wellbeing
app to over 2,000 UK employees and our first Family Day
in China. You can find more details on these on page 86
in the Support our people section.
We continue to publish details of our mean (average)
gender pay gap for the employees across our two largest
regions (UK and the US), with a narrowing of the gap
from 17.9% as at 31 March 2023 to 15.7% as at 31 March
2024. Details of our progress in this area can be found on
page85 in the Support our people section.
When making decisions on executive remuneration,
theCommittee considers remuneration arrangements
offered to the wider workforce. During the year, the
Committee received updates on a range of employee
benefits including the Defined Contribution pension
arrangement available to UK employees.
The Board continues to pursue opportunities for
non-executive Directors to meet with employees under
aprogramme of in-person site visits to get a deeper
understanding of Halma’s DNA. My non-executive
Director colleagues and I attended the Accelerate CEO
leadership conference in October 2023, engaging directly
with the leaders of Halma companies and more recently,
I had the pleasure of visiting Halma companies in North
America and in the UK, where I was able to speak with
employees about a variety of topics, including executive
remuneration at Halma and company culture. My colleagues
on the Committee also visited Halma companies and
were able to discuss employee engagement and received
positive feedback on the range of benefits offered.
Remuneration outcomes for 2024
2024 was the third and final year of our current
Remuneration Policy, which was approved by
shareholders in 2021. In the light of the context of
remuneration set out above, the Committee made
thefollowing decisions in respect of executive pay.
Bonus
Bonuses for 2024 were based on three metrics below:
• Economic Value Added (EVA) – Performance against
aweighted average target of EVA for the past three
years, representing 90% of overall bonus opportunity.
• Diversity, Equity and Inclusion (DEI) – Gender balance
on the boards of individual Halma companies,
representing 5% of overall bonus opportunity.
• Climate Change – Cumulative improvement in
energyproductivity from a 2022 baseline (revenue /
energy consumed), representing 5% of overall
bonus opportunity.
The Committee considered the targets to be demanding,
appropriate and material to stakeholder value creation.
The formulaic outcomes across all three metrics are set
out below, with one-third of the total payout deferred
into shares which will become available after two years:
Metric
(Weighting)
EVA
(90%)
DEI
(5%)
Climate
Change
(5%) Total
Achievement as a %
ofmaximum
% % % %
1 See Highlights on page 1 for details of adjustments made.
Halma plc | Annual Report and Accounts 2024 153
Financial Statements Other InformationStrategic Report
Governance Report
Executive Share Plan (ESP)
For the 2021 ESP award, the two performance metrics,
equally weighted and measured over a three-year
periodare:
• Growth in Adjusted
1
earnings per share (EPS).
• Average Return on Total Invested Capital (ROTIC).
The three-year performance for average ROTIC (14.52%)
and Adjusted
1
EPS growth over the three-year period
(11.99%) have been strong and are reflected in 84.44%
vesting as set out in the table below.
Metric
(Weighting)
Adjusted
EPS Growth
(50%)
ROTIC
(50%) Total
Vesting .% .% .%
The Committee considers the targets for this award to be
stretching.
The Committee reviewed the topic of windfall gains for
the 2021 grant and it determined that there was no
concern. It was therefore of the view that the formulaic
vesting should proceed without any adjustments.
In line with the 2018 Corporate Governance Code (Code),
the Committee reviewed the outcomes of the individual
incentive plans (annual bonus and ESP) as well as the
overall levels of remuneration to ensure that they
remained consistent with the underlying performance
ofthe business. The Committee is satisfied that the total
remuneration received by executive Directors in respect
ofthe year ended 31 March 2024 is a fair reflection of
performance over the period and no use of discretion
iswarranted.
Salary
The table below sets out the position for the executive
Directors over the 2024 financial year.
Executive Director Base Salary
Group Chief Executive ,
Chief Financial Officer ,
Group Talent, Culture and Communications Director ,
Chair and non-executive Director fees
The Committee carried out a benchmarking review of
theChair’s fees and the Committee was unanimous in
approving an increase of 3.5% and you will find details
ofthis on page172.
Following a benchmarking review, apart from the
SeniorIndependent Director fee, the Board agreed to
increase the base and the Committee Chair fees for the
non-executive Directors with effect from 1 January 2024.
The increases were made to reflect the growing
complexity of the business, along with the increased time
commitments of the individuals. The Senior Independent
Director fee was left unchanged as this still aligns with
the benchmark, which is the median of the FTSE 100
(excluding financial services). You will find more details
onpage172. The next review will be carried in the autumn
of 2024 and any change effective from 1 January 2025.
Remuneration Policy Review
The 2021 changes made to variable pay quantum were
significant but necessary to appropriately reset pay levels
to remain competitive in the marketplace and attract,
retain and motivate executives as a FTSE 100 company.
During the year, the Committee undertook a thorough
and detailed review of our existing Policy to assess whether
it remains appropriate and relevant in the context of our
strategic plan and business goals set against a changing
macroenvironment. After considering annual benchmarking
data, shareholder feedback, and multiple strategic
business and talent considerations, theCommittee
concluded that the Policy remains appropriate, so the
overall structure will be unchanged from the 2021 Policy.
In addition, the Committee continues to believe that
thePolicy remains in line with best practice and current
governance and as such no changes will made in
thisarea.
Whilst we have regularly consulted with shareholders in
the past, given the fact that no changes will be made
tothe Policy, the Committee agreed that this was not
necessary this year.
Despite the fact that we are not making any change to
the Policy, we are however cognisant of the developments
in the wider UK executive remuneration landscape to
address the needs of UK companies to compete for
andattract talent on a global basis. Remuneration is an
important tool to enable us to meet our talent objectives
and as such, over the cycle of the Policy, we will continue
to the monitor the position to ensure that Halma has the
appropriate capabilities to fulfil its growth ambitions
andcan recruit talent on a global basis.
At our Annual General Meeting on 25 July 2024 we will
beasking shareholders to pass resolutions to approve
ourDirectors’ Remuneration Report and our Directors’
Remuneration Policy and further details of the Policy
canbe found on page158.
Remuneration arrangements for 2025
Salary and pension arrangements
Positioning Halma executive Director remuneration at
themedian of the FTSE 100 (excluding financial services)
ensures Halma maintains the level of pay that supports
the current talent retention and succession needs as well
as the Company’s growth ambitions.
The Committee approved a base salary increase of
4.5%for our Group Chief Executive. The Committee’s
decision reflected the fact that Marc Ronchetti has had
astrong performance in a challenging year. In addition,
the Committee is cognisant of the fact that Marc’s base
salary is behind the median of the FTSE 100 (excluding
financial services) and as such, the Committee believes
that Marc’s package is not excessive.
154 Halma plc | Annual Report and Accounts 2024
REMUNERATION COMMITTEE REPORT continued
Base salary increases of 3% were approved for our Chief
Financial Officer and our Group Talent, Culture and
Communications Director, in line with the average
increase awarded to the wider workforce.
Role Current position
Position with
effect from
1 June 2024
Group Chief Executive , ,
Chief Financial Officer , ,
Group Talent, Culture
and Communications Director
, ,
Pension arrangements for Executive Directors will continue
to remain aligned with the wider UK workforce maximum
contribution rate of 10.5% of base salary.
Annual Bonus
Halma is focused on delivering sustainable growth and
consistently high returns. As such, we will continue to use
EVA as the performance metric for the annual bonus as it
is aligned with our business model. This will represent 90%
of the overall bonus opportunity.
Sustainability continues to be at the core of our growth
strategy and for the 2025 financial year, we will continue
to use Climate Change and DEI as non-financial metrics,
each representing 5% of the overall bonus opportunity.
• For Climate Change, Energy Productivity continues
tobe a metric that underpins the achievement of
ourScope 1 & 2 science based and Net Zero targets
andisaligned with our sustainability pillar to protect
our environment.
• We are proud of the results the focus on energy
efficiency actions has produced across Halma’s
companies. Given the progress already made, the
diverse nature of the businesses and the diminishing
materiality of future energy productivity improvements,
we will review the appropriateness of the Energy
Productivity metric for remuneration over the 2025
financial year. The Committee will consider the
materiality and measurability of potential alternatives
as part of this review.
• For DEI, aligned with our desire to support our people,
we continue to believe in the strength of our
over-arching ambition to achieve 40-60% gender
representation on the boards of Halma companies.
Although we have not met this target as at 31 March
2024, we are proud of the progress to date and the
culture shifts we have seen in our companies, where
women are increasingly recruited and retained. Further
details of our progress and ambitions in this area are
setout on page 84 of the Support our people section.
• We are confident that the gender diversity we have
achieved on the Board and Executive Board will be
realised on our company boards and as such we
continue to include this target in remuneration for 2025.
1 See Highlights on page 1 for details of adjustments made.
ESP
The 2025 ESP awards will be granted as normal, using
Adjusted
1
EPS growth and ROTIC as the performance
metrics based on stretching performance conditions.
Wewill continue to review whether sustainability-linked
remuneration can be extended to the ESP over time.
Director changes and closing remarks
Liam Condon and Giles Kerr joined as non-executive
Directors in September 2023 and February 2024
respectively. I would like to take this opportunity
towelcome them to the Committee.
Tony Rice stepped down as non-executive Director in
December 2023 and Roy Twite stepped down in June
2024. They have provided invaluable support in my role
asRemuneration Committee Chair and I wish them
wellfor the future.
The Committee’s performance was assessed by an
independent consultant, Independent Board Evaluation
as part of the annual Committee evaluation and the
findings were discussed with me. Overall, the Committee
is viewed as effective and performing well and the
Boardtakes assurance from the quality of the
Committee’s work.
In closing, I would like to thank the Committee for its
work and support during the year. I hope that you will
vote in favour of the proposed Directors’ Remuneration
Policy and the Directors’ Remuneration Report at the
Annual General Meeting on 25 July 2024.
Jo Harlow
Committee Chair
Halma plc | Annual Report and Accounts 2024 155
Financial Statements Other InformationStrategic Report
Governance Report
We have a strong pay for performance culture
that is aligned to our business model, focused
onsustaining our companies’ growth and returns
over the longer term, while delivering strong
performance in the shorter term.
The components of our Executive Remuneration
Our performance metrics
Short-term incentive
Economic
Value Added
(EVA)
• The use of EVA (profit less a charge for
capital employed) reinforces the Group’s
business objective to double our earnings
every five years through a mix of organic
growth and acquisitions. Performance is
measured against a weighted average
target of EVA for the past three years.
Diversity,
Equity
and Inclusion
• Our focus on DEI is the right thing to do
and a critical driver of growth. Following
our success in increasing gender diversity
at the Halma and Executive Boards, our
current focus is on increasing gender
diversity on our company boards.
Climate
Change
• Action on climate change is an important
part of us delivering on our purpose to
grow a safer, cleaner, healthier future for
everyone, every day. Reducing our own
emissions is a key priority for us with
cumulative improvement in energy
productivity as our current target.
Maximum opportunity:
200% of Salary (GroupChief Executive)
180% of Salary (ChiefFinancialOfficer)
180% of Salary (GTCC Director)
Long-term incentive
Adjusted
EPS Growth
• EPS growth provides a disciplined focus on
increasing profitability and thereby
provides close shareholder alignment
through incentivising shareholder value
creation.
ROTIC
• ROTIC reinforces the focus on capital
efficiency and delivery of strong returns,
thereby further strengthening the
alignment of remuneration with the
Group strategy.
Maximum award:
300% of Salary (Group Chief Executive)
250% of Salary (Chief Financial Officer)
200%ofSalary(GTCC Director)
Salary, benefits & pension
A fair, fixed remuneration
reflecting the size of the
executive’s responsibilities
which attracts and retains
high calibre talent necessary
for the delivery of the
Group’s strategy.
Annual Bonus
To incentivise and focus
management on the
achievement of objective
annual targets, which are
set to support the short to
medium-term strategy of
the Group.
Executive Share Plan
To incentivise executives to
achieve superior returns to
shareholders over a three-year
period rewarding them for
sustained performance
against challenging
long-termtargets.
Fixed Pay
Short-term
incentive
Long-term
incentive
Total Pay
156 Halma plc | Annual Report and Accounts 2024
REMUNERATION AT A GLANCE
How actual performance compared to targets
Short-term incentive – Annual Bonus
Metric Weighting Threshold Maximum
Outcome achieved
(% of maximum)
Economic Value Added 90%
£346.0m £ 399.0 m
Actual:
£401.9m
100%
DEI 5%
40% –
Actual:
31%
0%
Climate Change 5%
10% 12%
Actual:
19%
100%
Overall annual bonus outcome (% of max)
95%
Long-term incentive – Executive Share Plan
Metric Weighting Threshold Maximum
2024 Achievement
(Vesting %)
Adjusted EPS growth over
a three-year period
50%
5% 12%
Actual:
11.99%
49.9%
Three-year average ROTIC 50%
11% 17%
Actual:
14.52%
34.5%
Vesting percentage (2021 Award)
84.4%
1
1 Rounded to one decimal place
Executive Directors’ earnings in 2024
The following chart sets out the aggregate emoluments earned by the executive Directors in the year ended 31 March
2024.
Element Marc Ronchetti Steve Gunning Jennifer Ward Andrew Williams
Fixed Pay
1,024 690 539 256
Salary
900 600 470 225
Benefits
29 27 20 7
Pension supplement 95 63 49 24
Short-term incentive
Annual Bonus 1,710 1,026 810 0
Long-term incentive
Executive Share Plan and Share Incentive Plan
871 4 559 1,080
Total Pay 3,605 1,720 1,908 1,336
Halma plc | Annual Report and Accounts 2024 157
Financial Statements Other InformationStrategic Report
Governance Report
This section of the Report sets out our Remuneration Policy (the “Policy”) in detail. This policy is subject to a binding
shareholder vote at the Annual General Meeting on 25 July 2024 and, if approved, the Committee intends that it
willoperate for three years from this date.
The current Remuneration Policy (“the 2021 Policy”) for executive Directors applied from the date of the 2021
AnnualGeneral Meeting andcontinues to apply until it is re-approved at the 2024 Annual General Meeting.
The Remuneration Committee discussed the details of the Policy over a series of meetings, to assess whether the
2021Policy remains appropriate and relevant in the context of our strategic plan and business goals set against a
changing macroenvironment. With support from internal experts and external advisers, the Committee concluded
that the Policy remains appropriate, so the overall structure remains unchanged from the 2021 Policy. In addition,
theCommittee continues to believe that the Policy remains in line with best practice and current governance and
assuch no changes will made in this area.
As part of the review, minor narrative changes have been made.
Whilst we have regularly consulted with shareholders in the past, given the fact that no changes will be made to the
2021 Policy, the Committee agreed that this was not necessary this year.
Principles underpinning our Policy
The Committee determined that the principles which underpin our current Policy would remain unchanged as they
reflect our culture of strong governance and clear purpose.
These principles are:
• A strong pay for performance culture, focusing on the long-term success of the organisation and the alignment
tobusiness strategy.
• A balance of focus on growth and returns ensuring the creation of shareholder value.
• A dedication to attracting, retaining and motivating the right quality of talent, acknowledging Halma’s DNA.
• A focus on being a good corporate citizen in line with our culture, the 2018 Corporate Governance Code and market
best practice.
How the Policy addresses the factors set out in provision 40 of the 2018 UK Corporate Governance Code
The table below shows how the Policy addresses each of the factors set out in provision 40 of the 2018 UK Corporate
Governance Code.
Clarity We ensure pay for performance and our policy is designed to be logical and transparent. We believe this is clearly
communicated to and understood by our stakeholders and participants.
Simplicity Remuneration for executive Directors is comprised of distinct elements: fixed pay, annual bonus award and the
long-term incentive award.
Risk A number of features within the Remuneration Policy exist to manage different kinds of risks; these include:
• Malus and clawback provisions operating across all incentive plans.
• A post-cessation shareholding requirement.
• Deferral of remuneration and holding periods.
• Remuneration Committee discretion to override formulaic outturns to ensure incentive payouts reflect underlying
business performance and shareholder experience.
• Limits on awards specified within the policy and plan rules.
Predictability Target ranges and potential maximum payments under each element of remuneration are disclosed.
The Committee regularly reviews the performance of the inflight awards, so it understands the likely outcomes.
Proportionality The Committee believes that poor performance should not be rewarded. Therefore, a significant portion of
remuneration is performance based and requires achievement against challenging performance targets.
Alignment
to Culture
Our business is performance orientated and our remuneration structure is appropriately aligned to our culture,
withperformance measures for variable awards being aligned to the Company’s wider strategy.
158 Halma plc | Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION POLICY
The Remuneration Policy table
The table below summarises the key components of the Policy:
Fixed Pay: Salary
Purpose and link
tostrategy
A fair, fixed remuneration reflecting the size and scope of the executive’s responsibilities which
attracts and retains high calibre talent necessary for the delivery of the Group’s strategy.
Operation Reviewed annually or following a material change in responsibilities. Salary is benchmarked to market
median levels periodically against appropriate comparators of a similar size and operating in a similar
sector and is linked to individual performance and contribution.
Salary is the only element of remuneration that is pensionable.
Maximum opportunity Base salary increases will be applied in line with the outcome of annual reviews (normally with effect from
1 June). Salaries for the financial year under review (and the following year) are disclosed in the Annual
Remuneration Report. Salary increases for executive Directors will not normally exceed the average of
thewider employee population other than in exceptional circumstances. Where increases are awarded in
excessof the wider employee population, for example where there is a material change in the responsibility,
size or complexity of the role, the Committee will provide the rationale in the relevant year’s Annual
Remuneration Report.
Performance metrics Not Applicable.
Fixed Pay: Benefits
Purpose and link
tostrategy
To provide benefits that are competitive within the relevant market.
Operation Benefits are appropriate to the location of the Director and typically comprise (but are not limited to) a
carallowance, life insurance, permanent disability insurance, private medical insurance, relocation and tax
advice for international assignments.
Maximum opportunity Benefits may vary by role, and the level is determined to be appropriate for the role and circumstances of
each individual Director. The maximum value will equate to the reasonable market cost of such benefits.
The Committee retains the discretion to approve a higher cost of benefits in exceptional circumstances
(egrelocation expenses or an expatriation allowance on recruitment, etc) or in circumstances where
factorsoutside the Company’s control have changed materially (eg market increases in insurance costs).
The rationale behind the exercise of such discretion will be provided in the relevant year’s Annual
Remuneration Report.
Performance metrics Not Applicable.
Fixed Pay: Pension
Purpose and link
tostrategy
To provide competitive post-retirement benefits, or the cash allowance equivalent, to provide the
opportunity for executives to save for their retirement.
Operation Executive Directors participate in a Group Defined Contribution pension plan.
Cash supplements in lieu of Company pension contributions may be made to some individuals at a
leveldependent upon seniority and length of service. Cash supplements may be reduced to reflect the
additional employer social costs thereon. To the extent the pension contributions exceed the local tax
allowance, the contributions may be paid to the executive, subject to taxes and social charges.
Some executives were deferred members of the Group Defined Benefit pension plan, which closed to
futureaccrual in December 2014.
Maximum opportunity Defined Contribution: maximum contribution of 10.5%.
Cash supplement: Halma contributes up to 10.5% of salary. Defined Contribution members whose
contributions exceed the local tax allowance are paid the excess contributions, on pensionable salary,
asacash supplement, net of employer social costs.
Defined benefit: now closed to future accrual, but provides a maximum pension equivalent to two-thirds
offinal pensionable salary, up to a CPI-indexed cap: £174,586 for 2023 and £192,219 for 2024.
Performance metrics Not Applicable.
Halma plc | Annual Report and Accounts 2024 159
Financial Statements Other InformationStrategic Report
Governance Report
Annual Bonus
Purpose and link
tostrategy
To incentivise and focus management on the achievement of objective annual targets which are
set to support the short to medium-term strategy of the Group.
Operation The structure of the Annual Bonus is reviewed at the start of the year to ensure that the performance
measures and their weightings remain appropriately aligned with the Group’s strategy and are
sufficientlychallenging.
Performance targets are calibrated and set at the start of the year, with reference to a range of relevant
reference points including the annual budget agreed by the Board. At the end of the year, the Committee
determines the extent to which these targets have been achieved.
Payment of one-third of any bonus is in the form of an award of shares that is deferred for two years.
Dividend equivalents accrue over the vesting period. Dividend equivalents are paid in cash or shares at
theend of the vesting period.
Deferral into shares provides a link to the long-term strategy of the Group. A recovery and withholding
provision enables the Company to recoup overpayments either through withholding future remuneration
orrequiring the executive to repay the requisite amount in the event of misstatement, error or misconduct;
serious reputational damage to the business by the individual; and/or a breach of the company code
ofconduct.
Maximum opportunity Maximum opportunity: 200% of salary for Group Chief Executive, 180% for other executive Directors.
Bonuspayable at threshold: 0% of salary.
The Committee can exercise discretion to override the formulaic bonus outcome within the limits of the
scheme where it believes the outcome is not truly reflective of performance and to ensure fairness to both
shareholders and participants.
Performance metrics The bonus is based on the achievement of financial performance targets, including Economic Value Added
(EVA). Other financial measures may supplement EVA at the discretion of the Committee.
Such financial measures must comprise at least 80% of the overall bonus opportunity.
The balance of up to 20% may be utilised, at the Committee’s discretion, to support non-financial,
butmeasurable, strategic growth priorities.
Long-term Incentive: Executive Share Plan (ESP)
Purpose and link
tostrategy
To incentivise executives to achieve superior returns to shareholders over a three-year period
rewarding them for sustained performance against challenging longer term targets; to retain
keyindividuals and align interests with shareholders, reflecting the sustainability of the business
model over the longer term and the creation of shareholder value.
Operation Executive Directors are granted annual awards over Halma plc shares or a cash equivalent where
requiredas determined by the Committee; awards vest after a period of at least three years based
onGroup performance.
Dividend equivalents accrue over the vesting period. Dividend equivalents are paid in cash or shares at
theend of the vesting period, and only on those shares which vest.
A recovery and withholding provision enables the Company to recoup overpayments either through
withholding future remuneration or requiring the executive to repay the requisite amount in the event of
misstatement, error or misconduct; serious reputational damage to the business by the individual; and/or
abreach of the company code of conduct.
A mandatory two-year holding period applies.
Maximum opportunity Maximum opportunity: Up to 300% of salary for Group Chief Executive, 250% of salary for Chief Financial
Officer and 200% of salary for other executive Directors.
The Committee can exercise discretion to override the formulaic ESP outcome within the limits of the
scheme where it believes the outcome is not truly reflective of performance and to ensure fairness to both
shareholders and participants and will ensure formulaic outturns do not result in windfall gains.
Threshold performance will result in the vesting of 25% of the maximum award.
Performance metrics Vesting of performance share awards is subject to continued employment and the Company’s
performance over a three-year performance period.
Financial measures must comprise at least 80% of the overall ESP opportunity.
The balance of up to 20% may be utilised, at the Committee’s discretion, to support non-financial,
butmeasurable, strategic growth priorities.
160 Halma plc | Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION POLICY continued
Share Incentive Plan (SIP)
Purpose and link
tostrategy
To encourage share ownership across all UK based employees using HMRC-approved schemes.
Operation The SIP is an HMRC-approved arrangement. It entitles all eligible UK based employees to receive Halma
shares in a potentially tax advantageous manner.
Maximum opportunity Participation limits are in line with those set by HMRC from time to time.
Performance metrics Not applicable.
Share Ownership Guideline
Purpose and link
tostrategy
Align executive Directors’ interests with those of long-term interests of shareholders.
Operation Executive Directors are expected to build a holding in the Company’s shares to a minimum value equivalent
to their ESP award maximum opportunity: 300% for Group Chief Executive, 250% for Chief Financial Officer
and 200% for other executive Directors.
In addition, executive Directors are required to hold shares after cessation of employment. The requirement
is to hold shares to the value of the share ownership guidelines or actual shareholding (if lower) for a period
of two years post cessation of employment.
Progress towards the share ownership guideline is monitored on an annual basis.
Maximum opportunity No maximum holding but requirement to build to minimum value.
Performance metrics Not applicable.
Notes to the Policy table
Differences in remuneration for employees
The Remuneration Policy for the executive Directors is more heavily weighted towards variable and share-based
paythan for other employees, to make a greater part of their pay conditional on the successful delivery of business
strategy. This aims to create a clear link between the value created for shareholders and the remuneration received
bythe executive Directors.
Due to annual allowance restrictions, our current executive Directors receive cash supplements as opposed to being in
the pension arrangement offered to eligible UK employees. They receive a cash supplement of 10.5% of salary, which is
the maximum company contribution rate available to UK employees. All UK-based employees have the opportunity to
participate in the Share Incentive Plan.
Payments from existing awards
The Committee will honour any commitment entered into, and executive Directors will be eligible to receive payment
from any award made, prior to the approval and implementation of the Policy. Details of these awards are disclosed
inthe Annual Remuneration Report.
Selection of performance measures
The performance measures used in Halma’s executive incentives have been selected to ensure incentives are
challenging and support the Group’s strategy and align executive interests closely with those of our shareholders.
In the annual bonus, the use of EVA, in summary, profit less a charge for capital employed (definition is provided on
page 168) supports the Group’s business objective to double earnings every five years through a mix of acquisitions
and organic growth. Profit is a function of the extent to which the Company has achieved both its organic and
inorganic (through strong acquisitions) growth targets in current and past years. Ensuring that the cost of funding
acquisitions is reflected in the bonus model means that executives share the benefit of an acquisition that outperforms
expectations, but equally bear the cost of overpaying for an acquisition. Good or poor management ofworking
capital is also reflected in the calculation of EVA.
Positive impact is at the heart of our business model and this is why we have included Diversity, Equity and Inclusion
and Climate Change as non-financial metrics in our annual bonus. Following our success in increasing gender diversity
at the Halma and Executive Boards, our current focus is on increasing gender diversity on our company boards.
Action on Climate Change is an important part of us delivering on our purpose to grow a safer, cleaner, healthier
future for everyone, every day and reducing our own emissions is a key priority for us, with cumulative improvement
inenergy productivity as our target.
Halma plc | Annual Report and Accounts 2024 161
Financial Statements Other InformationStrategic Report
Governance Report
In the ESP, EPS provides a disciplined focus on increasing profitability and thereby provides close shareholder alignment
through incentivising shareholder value creation, and ROTIC reinforces the focus on capital efficiency and delivery of
strong returns, thereby further strengthening the alignment of remuneration with the Group’s strategy.
Performance targets are set to be stretching yet achievable, considering the Company’s strategic priorities and the
economic environment in which it operates. Targets are calibrated considering a range of reference points but are
based primarily on the Group’s strategic plan.
Malus and Clawback
The Committee believes that it is appropriate for all variable pay awards to be subject to provisions that allow it to
recover any value delivered (or which would otherwise be delivered) in connection with any variable award including
annual incentive and ESP awards in exceptional circumstances, and where it believes that the value of those variable
pay awards is no longer appropriate.
Malus provisions apply before payment and clawback provisions are in place following payment of the annual bonus
(or vesting of any element of annual bonus deferred into an award over shares) or vesting of any ESP award.
The malus and clawback provisions can be used in certain scenarios. Such scenarios include but are not limited to:
• Material misstatement of the Company’s financial accounts.
• A material failure of risk management by the Company or any Group company.
• An error in calculation of any awards based on false or misleading information.
• Gross misconduct by the relevant participant.
• Any action or omission on the part of a participant resulting in serious reputational damage to the Company,
anymember of the Group; a serious breach or non-observance of any code of conduct, policy or procedure
operatedby the Group.
Illustrations of the application of the Policy
The following charts provide an estimate of the potential future rewards for executive Directors, and the potential
splitbetween different elements of pay, under three different performance scenarios: “Fixed”, “On-target” and
“Maximum”.
Potential reward opportunities are based on the Policy, applied to salaries as at 1 June 2024. The projected values
exclude the impact of any share price movements and dividend equivalents.
The “Fixed” scenario shows base salary, pension and benefits only.
The “On-target” scenario shows fixed remuneration as above, plus a target level of 50% of the maximum under
theannual bonus and vesting of 50% of a single year’s award under the ESP.
The “Maximum” scenario reflects fixed remuneration, plus maximum level of annual bonus and ESP awards.
Marc Ronchetti, Group Chief Executive
35%
21%
27%
33%
38%
46%
100%
31%
18%
28%
33%
41%
49%
100%
Steve Gunning, Chief Financial Officer
37%
24%
30%
36%
33%
40%
100%
Fixed
On-target
Maximum
Fixed
On-target
Maximum
Fixed
On-target
Maximum
Jennifer Ward, Group Talent, Culture and Communications Director
Percentages
709
2,038
3,367
1,068
3,419
5,771
559
1,486
2,414
Amounts (£000)
Fixed Pay Short-term incentive (Total incentive award) Long-term incentive (Award vests)
162 Halma plc | Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION POLICY continued
Impact of share price
Long-term incentive awards in the ESP are granted in shares and as such the value can vary significantly depending
onshare price movement over the vesting and holding period. The table below shows how the maximum values
abovewould change as a result of a 50% change in the share price over the vesting and holding period:
Executive Director
50% increase
in share price
Marc Ronchetti ,
Steve Gunning ,
Jennifer Ward ,
External appointments
In the case of appointing a new executive Director, the Committee may make use of any of the existing elements of
remuneration, as follows:
Component Approach
Salary The base salaries of new appointees will be determined by reference to relevant market data, experience
and skills of the individual, internal relativities and the current salary of any incumbent in the same role.
Where a new appointee has an initial base salary set below market, the Committee may make phased
increases over a period of several years to achieve the desired position, subject to the individual’s
development and performance in the role.
Benefits New appointees will be eligible to receive benefits in line with the current Policy, as well as expatriation
allowances and any necessary expenses relating to an executive’s relocation on appointment.
Pension New appointees will be eligible to participate in the Company’s defined contribution arrangements,
receive a cash supplement or local equivalent.
Annual bonus The scheme as described in the Policy table will apply to new appointees with the relevant maximum
beingpro-rated to reflect the proportion of the year employed.
ESP New appointees will be granted performance awards under the ESP on the same terms as other
executives, as described in the Policy table.
SIP New appointees in the UK will be eligible to participate on identical terms to other employees.
In addition to the elements of remuneration set out in the Policy table, in exceptional circumstances the Committee
may consider it appropriate to grant an incentive award under a different structure in order to facilitate the recruitment
of an individual or to replace incentive arrangements forfeited on leaving a previous employer. In makingsuch awards,
the Committee will look to replicate the arrangements being forfeited as closely as possible andin doing so consider
relevant factors including any performance conditions attached to these awards, the payment mechanism, expected
value and the remaining vesting period of these awards.
Internal appointments
Remuneration for new executive Directors appointed by way of internal promotion will similarly be determined in
linewith the policy for external appointments, as detailed above. Where an individual has contractual commitments
made prior to their promotion to the Board, the Company will continue to honour those commitments. Incentive
opportunities for employees below Board level are generally no higher than for Executive Directors, and incentive
measures vary to ensure they are appropriate.
Executive Director service contracts and exit payment policies
It is the Company’s policy that executive Directors should have contracts with an indefinite term providing
foramaximum of one year’s notice. The details of the Directors’ contracts are summarised in the table below.
Contractsare available for inspection at the AGM and throughout the year at the Company’s registered office.
Executive Director Date of service contract Notice period
Marc Ronchetti July 2018 One year
Steve Gunning January 2023 One year
Jennifer Ward January 2014 One year
The Company’s policy is to limit payments on cessation to pre-established contractual arrangements. In the event
that the employment of an executive Director is terminated, any amount payable will be determined in accordance
with the terms of the service contract between the Company and the employee, as well as the rules of any incentive
plans. No predetermined amount is provided for in the Directors’ contracts. The UK executive Director contracts
enable the Company to pay up to one year’s salary in lieu of notice, with no contractual entitlement to any other
benefits, and, under the rules, the Remuneration Committee may determine the individual’s leaving status for
shareplan vesting purposes.
Halma plc | Annual Report and Accounts 2024 163
Financial Statements Other InformationStrategic Report
Governance Report
When considering termination payments under incentive schemes, the Committee reviews all potential incentive
outcomes to ensure they are fair to both shareholders and participants. The table below summarises how the awards
under the annual bonus and share plans are treated in specific circumstances under the rules of the relevant plan
andthe extent to which the Committee has discretion:
Reason for leaving Timing of payment/vesting Calculation of payment/vesting
Annual bonus Death, injury or disability,
redundancy, retirement, or any
other reasons the Committee
may determine
After the end of the financial year,
although the Committee has
discretion to accelerate (eg in
relation to death)
Performance against targets will
be assessed at the end of the
yearin the normal way and any
resulting bonus normally will be
pro-rated for time served during
the year
All other reasons No bonus is payable –
Deferred bonus Death, injury or disability,
redundancy, retirement, or any
other reasons the Committee
may determine
On the second anniversary of the
Award
Awards vest in full
All other reasons On the second anniversary of the
award (unless the Remuneration
Committee determines
otherwise)
Awards vest in full
Share Plans Injury or disability, redundancy,
or any other reason the
Committee may, at its
discretion, determine
On the third anniversary of the
award
Awards will normally be pro-rated
for time to the date of cessation
of employment and performance
metrics assessed as at the third
anniversary
Death Immediately (unless otherwise
determined by the Committee at
its discretion)
Any outstanding awards normally
will be pro-rated for time and
performance up to the point of
death
All other reasons Awards lapse –
External directorships
The Committee acknowledges that executive Directors may be invited to become independent non-executive
Directors of other listed companies which have no business relationship with the Company and that these roles
canbroaden their experience and knowledge to Halma’s benefit.
Executive Directors are permitted to accept one such appointment with the prior approval of the Chair. Approval will
only be given where the appointment does not present a conflict of interest with the Group’s activities and the wider
exposure gained will be beneficial to the development of the individual. Where fees are payable in respect of such
appointments, these are retained by the executive Director.
Jennifer Ward became a non-executive Director of Diploma plc in June 2023. Fees paid to her during the year to
31 March 2024 were £49,800.
Chair and non-executive Directors’ Remuneration Policy
Chair and non‑executive Director fees
Purpose and link
tostrategy
To attract and retain individuals with the requisite skills, experience and knowledge to contribute to
theBoard.
Operation Non-executive Director fees are determined by the Board and may comprise a base fee, committee chair
fee and Senior Independent Director fee. The Chair’s fee is determined by the Committee.
Travel and other expenses incurred in the performance of non-executive duties for the Company may be
reimbursed or paid for directly by the Company, as appropriate, including any tax due on the benefits.
Maximum opportunity Fees are normally reviewed annually. Increases are typically effective from 1 January.
The fee paid to the Chair is determined by the Committee and fees to non-executive Directors are
determined by the Board. The fees are calculated by reference to market levels and take account of the
time commitment and the responsibilities of the non-executive Directors.
These fees are the sole element of non-executive remuneration and they are not eligible for participation in
Group incentive awards, nor do they receive any retirement benefits.
Performance metrics Not applicable.
164 Halma plc | Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION POLICY continued
Non-executive Directors’ letters of appointment
Unless otherwise indicated, all non-executive Directors have a specific three-year term of engagement, subject to
annual re-election at the Annual General Meeting, which may be renewed for up to two further three-year terms if
both the Director andthe Board agree. The remuneration of the Chair and the non-executive Directors is determined
by the Committeeand the Board respectively, in accordance with the Remuneration Policy approved by shareholders.
The contract in respect of the Chair’s services provides for termination, by either party, by giving not less than six
months’ notice.
The non-executive Directors have contracts in respect of their services, which can be terminated without compensation,
by either party, by giving not less than three months’ notice. Contracts are available for inspection at the Annual
General Meeting and throughout the year at the Company’s registered office. Summary details of terms and notice
periods for non-executive Directors are included below.
Non‑executive Director Date of appointment End of next term Notice period
Dame Louise Makin February 2021 February 2027 Six months
Roy Twite July 2014 June 2024 Three months
Carole Cran January 2016 January 2025 Three months
Jo Harlow October 2016 October 2025 Three months
Dharmash Mistry April 2021 April 2027 Three months
Sharmila Nebhrajani OBE December 2021 December 2024 Three months
Liam Condon September 2023 September 2026 Three months
Giles Kerr February 2024 February 2027 Three months
Non-executive Director recruitment
In recruiting a new Chair or non-executive Director, the Committee will use the policy as set out above.
Halma plc | Annual Report and Accounts 2024 165
Financial Statements Other InformationStrategic Report
Governance Report
The Annual Remuneration Report sets out details of how the Policy was implemented in the year to 31 March 2024
andthe proposed implementation for the next financial year.
External advisers
In June 2020, after a thorough and competitive tender process, WTW was appointed by the Committee as the
independent remuneration adviser and continued in this capacity through the year.
WTW is a member of the Remuneration Consultants’ Group and voluntarily operates under the Remuneration
Consultants’ Group Code of Conduct in relation to executive remuneration consulting in the UK. This is based
uponprinciples of transparency, integrity, objectivity, competence, due care and confidentiality by executive
remuneration consultants. WTW has confirmed that it has adhered to that Code of Conduct throughout the
yearforall remuneration services provided to the Company. Therefore, the Committee is satisfied that the advice
from WTWisindependent and objective. The Remuneration Consultants’ Group Code of Conduct is available at
remunerationconsultantsgroup.com.
WTW’s fee for the year with respect to executive remuneration matters was £58,785 (2023:£97,300) based on an
agreed fee. WTW also provided services to the Company globally which comprise remuneration benchmarking and
other consultancy advice.
Compliance statement
This Report has been prepared in accordance with the requirements of the Companies Act 2006 and the Large and
Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008 and subsequent amendments.
The Report also meets the relevant requirements of the Listing Rules of the Financial Conduct Authority and describes
how the Board has applied the Principles relating to Directors’ remuneration in the UK Corporate Governance Code.
The Policy will be subject to a binding vote and the Directors’ Remuneration Report will be subject to an advisory vote
by shareholders at the 2024 Annual General Meeting.
Shareholder vote at 2021 and 2023 Annual General Meetings
The following table shows the results of the binding vote on the 2021 Policy at the Annual General Meeting held on
22 July 2021 and the advisory vote on the Directors’ Remuneration Report held on 20 July 2023.
For Against Total Withheld
Remuneration Policy (2021)
Total number of votes ,, ,, ,, ,,
% of votes cast .% .% %
Directors’ Remuneration Report (2023)
Total number of votes ,, ,, ,, ,
% of votes cast .% .% %
The details of the extensive shareholder engagement carried out in response to the shareholder votes to approve the
2021 Directors’ Remuneration Policy and the 2022 Directors’ Remuneration Report can be found in our 2023 Directors’
Remuneration Report.
166 Halma plc | Annual Report and Accounts 2024
ANNUAL REMUNERATION REPORT
Remuneration for 2024
Single figure of total remuneration for executive Directors (audited)
The table below sets out the single figure of total remuneration received by executive Directors for the years to
31 March 2023 and 31 March 2024.
Marc Ronchetti
1
£000
Steve Gunning
1
£000
Jennifer Ward
£000
Andrew Williams
£000
2024 2023 2024 2023 2024 2023 2024 2023
Salary 900 666 600 128 470 449 225 879
Benefits
2
29 21 27 6 20 24 7 28
Pension
3
95 109 63 13 49 75 24 194
Total Fixed Pay 1,024 796 690 147 539 548 256 1,101
Annual Bonus
4
, 845 , 188  577 0 1,254
Executive Share Plan – Awards
5
 728  0  498 1,080 1,282
Share Incentive Plan
6
4 4 4 0 4 4 0 4
Total Variable Pay , 1,577 , 188 , 1,079 1,080 2,540
Total Pay , 2,373 , 335 , 1,627 1,336 3,641
Notes to the table:
1 Marc Ronchetti became Chief Executive Designate on 16 June 2022 and Group Chief Executive on 1 April 2023. Steve Gunning joined Halma as Chief Financial Officer
on 16 January 2023.
2 Benefits: mainly comprises car allowance and private medical insurance.
3 Pension: value based on the Company’s cash supplement in lieu of pension during the year.
4 Annual bonus: payment for performance during the year; two-thirds is payable in cash and one-third is deferred into shares which vest two years from award without
any performance conditions. Table shows total bonus including amounts to be deferred.
5 ESP: Figures relate to awards vesting based on performance to the years ended 31 March 2024 and 2023. For the awards vesting for the year ended 31 March 2024
(theJune and July 2021 awards), as the share prices on the dates of vesting are currently unknown, the value shown is estimated using the average share price over
the three months to 31 March 2024 of 2,234p. For the award vesting for the year ended 31 March 2023, these figures have been updated from last year’s report
to reflect the actual share price on the vesting date of 2,278p. Dividend equivalents in 2024 and 2023 respectively were: Marc Ronchetti – £22,392 and £20,707,
JenniferWard – £14,320 and £14,167, Andrew Williams – £27,902 and £37,349 andare included in the figures above. Andrew Williams’ awards have been time-
proratedto 30June2023, his Retirement Date.
6 SIP is based on the face value of shares at grant.
Payments for loss of office (audited)
No payments were made in the year.
Remuneration arrangements for Andrew Williams (audited)
Andrew Williams retired and stepped down from the Board on 30 June 2023 (“Retirement Date”). On this basis and in
accordance with his service agreement, Andrew Williams continued to be paid in line with the Remuneration Policy
until his retirement and details are:
• He continued to be paid a salary of £900,000 until Retirement Date.
• He received a bonus paid in June 2023, in respect of the 2023 financial year, with one-third granted as a deferred
bonus award to vest in June 2025, with no attaching further performance conditions.
• He will not be paid a bonus for the 2024 financial year.
• He did not receive an ESP award in June 2023.
• He was treated as a good leaver as he retired and hence his outstanding ESP awards that were unvested in June 2023
were time pro-rated to Retirement Date and vest, subject to performance, at their normal vesting date.
• He had automatic good leaver reason under the Share Incentive Plan (SIP) rules and as such all SIP shares held in
trust were transferred at retirement, free of tax and national insurance.
• He continued to receive benefits through to the Retirement Date.
• He did not receive any payment for unused and accrued holiday days as at Retirement Date.
• He remains subject to the post cessation shareholding requirements.
Payments to past Directors (audited)
Adam Meyers
On his retirement from the Board in July 2021, Adam Meyers retained the following interests under the ESP, which
vested during the year:
• 2,545 deferred bonus awards granted in 2022 will vest on 27 June 2024.
Halma plc | Annual Report and Accounts 2024 167
Financial Statements Other InformationStrategic Report
Governance Report
Incentive outcomes for 2024 (audited)
Annual bonus in respect of 2024
In 2024, the maximum bonus opportunity for the Group Chief Executive was 200% and 180% of salary for the
ChiefFinancial Officer and the Group Talent, Culture and Communications Director.
Annual bonus for all executive Directors was linked to performance based on the three metrics below:
• Economic Value Added (EVA) – Performance against a weighted average target of EVA for the past three years,
representing 90% of overall bonus opportunity.
• Diversity, Equity and Inclusion (DEI) – Gender balance on the boards of Halma companies, representing 5% of
overallbonus opportunity.
• Climate Change – Cumulative improvement in energy productivity (revenue / energy consumed) from a 2022
financial year baseline, representing 5% of overall bonus opportunity.
The Committee felt that the targets were demanding, appropriate and material to stakeholder value.
Operating company directors, sector leaders and central senior management participate in bonus arrangements
similar to those established for senior executives.
EVA calculation:
Bonuses for the executive Directors are calculated based on Group profit exceeding a target calculated from the
profits for the three preceding financial years after charging a cost of capital, including on the cost of acquisitions.
Asthe EVA for each year is utilised for a further three years in the comparator calculations, executives must consider
the medium-term interests of the Group otherwise there is the potential for an adverse impact on their capacity to
earn a bonus.
Profit
excluding
interest for
each year at
constant
currency
Minus a charge
on cost of
acquisitions
Minus a charge
on working
capital
Equals the EVA
for
each year
DEI and Climate Change:
The DEI target is based on progress towards our goal of reaching female representation on the boards of Halma
companies of at least 40%. In 2024, maximum payout of 5% of bonus opportunity could have been achieved with
agender balance figure of 40% or above and nil payout with a figure lower than 40%.
The Climate Change target is based on achieving a stretching range of cumulative improvement in Energy
Productivity. In 2024, the target was set to retain alignment with our external benchmark, while not rewarding
anyreduction in cumulative performance compared to 2023.
Details of these non-financial targets for the 2024 financial year are set out in the tables below:
Diversity, Equity and Inclusion: Gender balance on the boards of Halma Companies
Target % payout for performance against target
On/Off Target ≥ 40% 100%
Climate Change: Cumulative improvement in energy productivity from 2022 baseline position
Target % payout for performance against target*
Threshold 10% 25%
Maximum ≥12% 100%
* Straight line payout between threshold and maximum.
168 Halma plc | Annual Report and Accounts 2024
ANNUAL REMUNERATION REPORT continued
Performance levels against all three targets are provided in the table below:
Metric Weighting Threshold Maximum
2024
Achievement
(% of maximum)
Economic Value Added 90%
£346.0m £ 399.0 m
Actual:
£401.9m
100%
DEI 5%
40% –
Actual:
31%
0%
Climate Change 5%
10% 12%
Actual:
19%
100%
Overall annual bonus outcome (% of max)
95%
The cash and deferred bonus awards across all three targets are set out in the table below:
Executive Director
Overall bonus
outcome
(% of maximum)
Overall bonus
outcome
(% of salary)
Bonus for
2024 Cash‑settled
Value of 2024
deferred
bonus award
Marc Ronchetti % % ,, ,, ,
Steve Gunning % % ,, , ,
Jennifer Ward % % , , ,
The deferred bonus awards across all three metrics are calculated as one-third of the bonus earned. Deferred bonus
awards will be granted under the ESP in June 2024. The number of shares over which awards will be made will be
determined by the share price for the five trading days prior to the date of award. These awards will not be subject
toany further performance conditions and will ordinarily vest in full on the second anniversary of the date of grant.
Full details will beprovided in next year’s Annual Remuneration Report.
Executive Share Plan (ESP): 2021 Awards (vesting at the end of the year to 31 March 2024)
In June 2021, the executive Directors received awards of performance shares under the ESP. In July 2021, a top-up
grantwas made, based on their revised salaries, after the Policy was approved at the 2021 Annual General Meeting.
The performance targets for these ESP awards are set out below. The vesting criteria are 50% EPS-related and 50%
ROTIC-related.
Metric Below Threshold Threshold Maximum
Adjusted EPS growth
1
Performance level: % % % or more
% of award vesting
3
: .% .% %
ROTIC
2
Performance level: % % % or more
% of award vesting
3
: .% .% %
Total vesting .% % %
1 Adjusted earnings per share growth over the three-year performance period.
2 Average ROTIC over the performance period.
3 There is straight line vesting in between threshold and maximum vesting.
Halma plc | Annual Report and Accounts 2024 169
Financial Statements Other InformationStrategic Report
Governance Report
The three-year period over which these two performance metrics are measured ended on 31 March 2024. Average
ROTIC was 14.52% (the average ROTIC for financial years 2022, 2023 and 2024) and adjusted EPS growth was 11.99%
per annum for the period from 1 April 2021 to 31 March 2024, resulting in vesting of 84.44% of the awards.
The estimated vesting value of the awards granted in June and July 2021 are included in the 2024 single figure of total
remuneration for Directors and are detailed in the table below:
Executive Director
Interest
held
Face value
at grant
£000
Total Face
value
at grant
£000
Shares
available
after
pro‑ration
for time
Vesting
%
Interest
vesting
Three–month
average price
at year end
Estimated
vesting
value
£000
of which
value
attributable
to share
price
£000
and value
attributable to
corporate
performance
£000
Marc Ronchetti ,
2
 ,
.%
,
p
 () ,
,
3

Jennifer Ward ,
2
  ,  () 
,
3

Andrew Williams
1
,
2
, , , , , () ,
,
3
 ,
1 Andrew Williams’ ESP awards above are time pro-rated to his Retirement Date of 30 June 2023.
2 June 2021 Award.
3 July 2021 Award.
Awards normally lapse if they do not vest on the third anniversary of their award. These awards are subject to a
two-year post-vesting holding period. Dividend equivalents accrue over the vesting period and are paid in cash at
theend of the vesting period, and only on those shares that vest. All awards are subject to tax and social security
deductions. In line with regulations, the values disclosed above and in the single total figure of remuneration table on
page167 capture the number of interests vesting for performance to 31 March 2024. As the market price on the date
ofvesting is unknown at the time of reporting, the values are estimated using the average market value over the
three-month period to 31 March 2024 of 2234p. The actual values at vesting will be trued-up in the next Annual
RemunerationReport.
Incentive Awards granted during 2024 (audited)
Long-term incentive – Performance Share Plan Awards (granted during the year to 31 March 2024)
In June 2023, the executive Directors were granted awards under the ESP. All awards are subject to ROTIC and Adjusted
EPS growth performance over a three-year period measured from 1 April 2023 to 31 March 2026. Specifically, the ROTIC
element will be based on the average ROTIC for 2024, 2025 and 2026. The EPS element will be based on EPS growth
from 1 April 2023 to 31 March 2026. These two elements are equally weighted at 50% each. The performance targets
applying to these awards are as set out in the table below:
Metric Below Threshold Threshold Maximum
Adjusted EPS growth
1
Performance level: % % % or more
% of award vesting
3
: .% .% %
ROTIC
2
Performance level: % % % or more
% of award vesting
3
: .% .% %
Total vesting .% % %
1 Adjusted earnings per share growth over the three-year performance period.
2 Average ROTIC over the performance period.
3 There is straight line vesting in between threshold and maximum vesting.
The awards vest on 26 June 2026, being the third anniversary from the date of grant and subject to a two-year
post-vesting holding period.
Executive Director % of salary
Awards made
during the year
Five‑day
average market
price at award
date (p)
Face value at
award date
£000
Marc Ronchetti % ,  ,
Steve Gunning % ,  ,
Jennifer Ward % ,  
170 Halma plc | Annual Report and Accounts 2024
ANNUAL REMUNERATION REPORT continued
Long-term incentive – Deferred Share Awards (granted during the year to 31 March 2024)
In June 2023, the executive Directors were granted deferred share awards under the ESP in respect of one-third of the
total bonus earned for the financial year ended 31 March 2023. Awards are not subject to performance conditions as
they are deferred awards relating to bonus earned for the year ended 31 March 2023. Awards vest in full on the second
anniversary of the date of grant (June 2025).
Executive Director
Awards made
during the year
Five day average
market price at
award date
Face value at
award date
£000
Bonus to
31 March 2023
£000
Proportion
awarded in
shares
Marc Ronchetti ,
p
  .%
Steve Gunning ,   .%
Jennifer Ward ,   .%
Andrew Williams ,  , .%
Implementation of the Policy for the year to 31 March 2025
Base Salary, effective 1 June 2024
The Committee approved a base salary increase of 4.5% for our Group Chief Executive. The Committee’s decision
reflected the fact that Marc Ronchetti has had a strong performance in a challenging year. In addition, the Committee
is cognisant of the fact that Marc’s base salary is behind the median of the FTSE 100 (excluding financial services) and
as such, the Committee believes that Marc’s package is not excessive. Base salary increases of 3% were approved for
our Chief Financial Officer and our Group Talent, Culture and Communications Director, in line with the average
increase awarded to the wider workforce.
Executive Director Salary for 2025 Salary for 2024
Marc Ronchetti , ,
Steve Gunning , ,
Jennifer Ward , ,
Pension and benefits
UK employees are offered a maximum company pension contribution rate of 10.5% of salary, along with a tiered
contribution structure, which benefits our lowest paid the most.
Pension cash supplements for executive Directors will be 10.5% of salary in line with the maximum rate offered to
UKemployees.
Annual bonus
The maximum annual bonus opportunity for 2025 is 200% of salary for the Group Chief Executive and 180% of salary
for the other executive Directors. One-third of the bonus earned will be deferred into a share award which vests in full
after two years. Bonus payments will be subject to malus and clawback during a period of three years from the date
of payment.
Bonuses for 2025 will be based on EVA performance against a weighted average target of EVA for the past three
years. We will also continue to use the two non-financial targets on Diversity, Equity and Inclusion (DEI) and Climate
Change. The weightings for EVA performance, DEI and Climate Change will be 90%, 5% and 5% respectively.
For DEI, we remain committed to our stretch target of achieving at least 40% gender balance on our company
boardsand you can find more on page 84, where we set out details of our accomplishments and a new over-
archingtarget date.
The Climate Change target is based on achieving a stretching range of cumulative improvement in Energy
Productivity. The target is set in excess of our external benchmark, while not rewarding any reduction in cumulative
performance compared to 2024. Further details can be found on page 78 of the Sustainability section and page96
ofthe TCFD Statement.
As financial targets are commercially sensitive, they are not disclosed at this time but will be in next year’s
Remuneration Report.
The Remuneration Committee must be satisfied that Halma’s underlying performance over the financial year justifies
the payout. When making this judgement the Committee has scope to consider such factors as it deems relevant.
TheCommittee believes that this approach will ensure fairness to both shareholders and participants.
Halma plc | Annual Report and Accounts 2024 171
Financial Statements Other InformationStrategic Report
Governance Report
Long-term incentive – Performance Share Awards (to be granted)
Under the ESP, performance share plan awards and deferred bonus awards will be made in June 2024, based on
thePolicy. The number of shares over which awards will be made is determined by the average share price for the
fivetrading days prior to the date of award. The value of each performance share award is as follows:
Executive Director
Salary for
2025
Performance
Share Award
Value of
Award
Marc Ronchetti , % ,,
Steve Gunning , % ,,
Jennifer Ward , % ,
The performance share awards will be subject to an Adjusted EPS growth performance target for 50% of the
awardand a ROTIC target for 50% of the award measured over the three financial years 2024, 2025 and 2026.
The full performance conditions are set out in detail below.
Metric Below Threshold Threshold Maximum
Adjusted EPS growth
1
Performance level: % % % or more
% of award vesting
3
: .% .% %
ROTIC
2
Performance level: % % % or more
% of award vesting
3
: .% .% %
Total vesting .% % %
1 Adjusted earnings per share growth over the three-year performance period.
2 Average ROTIC over the performance period.
3 There is straight line vesting in between threshold and maximum vesting.
Chair and non-executive Director fees
A review of the non-executive Directors’ fees was carried out and the Board made a decision to increase the fees
witheffect from January 2024. A market review was carried out in respect of our Chair’s fee, which was subsequently
increased with effect from January 2024. Fees are subject to an annual review with any changes effective in January.
Fees
Annual fees for
2024
Annual fees for
2023
Chair , ,
Base fee , ,
Senior Independent Director , ,
Audit Committee Chair , ,
Remuneration Committee Chair , ,
Committee Member nil nil
Single figure of total remuneration for non-executive Directors (audited)
The following table sets out the total remuneration for the Chair and the non-executive Directors for the year end
31 March 2024.
Non‑executive Director
1
2024
£000
2023
£000
Dame Louise Makin  
Roy Twite  
Tony Rice  
Carole Cran  
Jo Harlow  
Dharmash Mistry  
Sharmila Nebhrajani OBE  
Liam Condon  _
Giles Kerr  _
1 Fees have been rounded to the nearest £1,000
172 Halma plc | Annual Report and Accounts 2024
ANNUAL REMUNERATION REPORT continued
Group Chief Executive pay ratio
The following table sets out our Group Chief Executive’s pay ratios as at 31 March 2024. All figures are calculated using
pay and benefits data for the year to 31 March 2024 and for part-time employees, the full-time equivalent salary and
benefits are used.
Year Method
25th Percentile:
pay ratio, total pay
and benefits,
(salary)
50th Percentile:
pay ratio, total pay
and benefits,
(salary)
75th Percentile:
pay ratio, total pay
and benefits,
(salary)
2024 Option A 127:1 99:1 63:1
£28,275 £36,473 £57,501
(£25,653) (£32,973) (£50,000)
Historical information
25th Percentile:
pay ratio
50th Percentile:
pay ratio
75th Percentile:
pay ratio
2023 Option A 138:1 104:1 68:1
2022 Option A 145:1 110:1 70:1
2021 Option A 141:1 110:1 68:1
2020 Option A 183:1 139:1 86:1
Option A was chosen again this year as it is the most statistically accurate method, considered best practice by
thegovernment, in line with shareholder expectations and is directly comparable to the Group Chief Executive’s
remuneration. This method requires calculation of pay and benefits for all UK employees using the same methodology
that is used to calculate the Group Chief Executive’s single figure per the table on page167.
Commentary
We are satisfied that the median pay ratio reported this year is consistent with our wider pay, reward and progression
policies for employees.
The Group Chief Executive is remunerated predominantly on performance related elements (bonus and share awards),
based on the delivery of strong returns.
Compared to last year, the Group Chief Executive’s single figure has increased because of the higher bonus outturn.
This increase has been offset by the vesting of 2021 ESP awards – totalling 250% of salary – which were granted while
he was Chief Financial Officer and lower than the Group Chief Executive award level of 300% of salary. There has also
been no increase in the Group Chief Executive’s base salary over the year. These factors, the lower vesting percentage
for the 2021 award (compared to the 2020 award) and the higher increase of employee total pay at the 25th, 50th
and75th percentiles result in the reduction of the Group Chief Executive pay ratio figures for the year, compared to
last year.
Directors’ pensions (audited)
Prior to his retirement on 30 June 2023, Andrew Williams was the only UK executive Director who was a deferred
member of the defined benefit section of the Halma Group Pension Plan. This benefit is a funded final salary
occupational pension plan registered with HMRC, providing a maximum pension of two-thirds of final pensionable
salary after 25 or more years’ service at normal pension age (60). Up to 5 April 2006, final pensionable salary was the
greatest salary of the last three complete tax years immediately before retirement or leaving service. From 6 April 2011,
final pensionable salary was capped at £139,185 and is increased annually thereafter by the increase in CPI (£192,219 for
2024). Bonuses and other fluctuating emoluments and benefits-in-kind are not pensionable nor subject to any pension
supplement. The Plan also provides a pension in the event of early retirement through ill-health and a dependant’s
pension of one-half of the member’s prospective pension. Early retirement pensions, currently possible from age 55
with the consent of the Company and the trustees of the Plan, are subject to actuarial reduction. Pensions in payment
increase by 3% per annum for service up to 5 April 1997, by price inflation (subject to a maximum of 5%) through to
31 March 2007 and 3% thereafter. The Company closed the Defined Benefit section to future accrual with effect from
1 December 2014 and, in April 2014, Andrew Williams chose to cease future service accrual in the Plan in return for
apension supplement on his base salary. This supplement was equivalent to a 20% employer contribution plus an
additional 6% compensatory payment, in line with the enhanced contribution rate offered to other members who
were in the Defined Benefit section when future accrual was ceased.
With effect from 1 January 2023, executive Directors voluntarily lowered their pension supplements to 10.5% of base
salary and Andrew Williams received this until his retirement date on 30 June 2023.
Our current executive Directors are entitled to join the UK Defined Contribution Plan but due to annual allowance
restrictions, they receive a cash-in-lieu pension contribution of 10.5% of salary, which is the maximum contribution
rateavailable to the UK wider workforce.
Halma plc | Annual Report and Accounts 2024 173
Financial Statements Other InformationStrategic Report
Governance Report
Andrew Williams accrued benefits under the Company’s defined benefit pension plan during the year as follows.
Executive Director
Age at
31 March 2024
Years of
pensionable
service at
31 March 2024
Increase
in accrued
benefits
£000
Increased
in accrued
benefits net
of inflation
£000
Accrued
benefits at
31 March 2024
£000
Andrew Williams   . – 
Percentage change in Directors’ remuneration versus employees
The table below shows the percentage change in the salary/fees, benefits and bonus outcomes of the Directors
andthis is compared to the average percentage change in remuneration for other Halma plc employees over four
financialyears ending 31 March.
Salary/fees
(% change)
Benefits
(% change)
Annual Bonus
(% change)
2024 2023 2022 2021 2024 2023 2022 2021 2024 2023 2022 2021
Executive Directors
Marc Ronchetti % % % (%) % % (%) % % (%) % (%)
Steve Gunning
1
% – – – % – – – % – – –
Jennifer Ward % % % (%) (%) (%) % % % (%) % (%)
Non-executive Directors
Dame Louise Makin
2
% % % – – – – – – – – –
Roy Twite % % % (%) – – – – – – – –
Carole Cran % % % (%) – – – – – – – –
Jo Harlow % % % % – – – – – – – –
Dharmash Mistry % % – – – – – – – – – –
Sharmila Nebhrajani OBE % % – – – – – – – – – –
Liam Condon
3
– – – – – – – – – – – –
Giles Kerr
3
– – – – – – – – – – – –
Former Directors
Andrew Williams (%) % % (%) (%) % (%) (%) (%) (%) % (%)
Tony Rice (%) – – – – – – – – – – –
Other Halma plc Employees % % % % % % % (%) % ()% % (%)
1 Steve Gunning joined the Board on 16 January 2023.
2 Dame Louise Makin was appointed as non-executive Director on 9 February 2021 and became Chair at the Annual General Meeting on 22 July 2021 as evidenced by the
change in percentage in financial year 2022.
3 Liam Condon and Giles Kerr joined the Committee on 25 September 2023 and 1 February 2024 respectively.
Relative importance of spend on pay
The table below shows the percentage change in total employee pay expenditure and shareholder distributions
(iedividends and share buybacks) from the financial year ended 31 March 2023 to the financial year ended
31 March2024.
2024
£m
2023
£m
%
change
Distribution to shareholders . . .%
Employee remuneration (gross) . . .%
The Directors are proposing a final dividend for the year ended 31 March 2024 of 13.2p per share (2023:12.34p).
Pay-for-performance
The graph on the next page shows Halma’s Total Shareholder Return (TSR) performance over the 10 years to 31 March
2024 as compared to the FTSE 100 index. Over the period indicated, Halma’s TSR was 359% compared with 77% for
the FTSE 100. The table below the graph details the Group Chief Executive’s single figure of total remuneration and
actual variable pay outcomes over the same period.
The FTSE 100 has been selected because it is widely used and Halma has been a constituent of this index since
December 2017. Prior to that, Halma was a constituent of the FTSE 250.
174 Halma plc | Annual Report and Accounts 2024
ANNUAL REMUNERATION REPORT continued
Total Shareholder Return
Graph as rebased to 100
Dates as at 31 March
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
600
450
300
150
% increase
0
77%
359%
CEO Andrew
Williams
Marc
Ronchetti

CEO’s single figure
remuneration (£000)
, , , , , , , , , ,
Annual bonus
outcome
(% of maximum)
% % % % % % % % % %
ESP vesting outcome
(% of maximum)
% % % % % % % % %

%

Halma FTSE 100
1 Marc Ronchetti became Group Chief Executive on 1 April 2023, with Andrew Williams as Group Chief Executive prior to that.
2 Rounded to whole percentage figures.
Directors’ interests in Halma shares(audited)
The interests of the Directors in office during the year ended 31 March 2024 (and their connected family members)
inthe ordinary shares of the Company are below. During the period between 31 March 2024 and 13 June 2024 (the
latest practicable date prior to the publication), no changes to Directors’ interests were disclosed to the Company.
31 March
2024
31 March
2023
Dame Louise Makin , ,
Marc Ronchetti , ,
Steve Gunning , 
Jennifer Ward , ,
Andrew Williams
1
, ,
Roy Twite , ,
Tony Rice , ,
Carole Cran , ,
Jo Harlow , ,
Dharmash Mistry , ,
Sharmila Nebhrajani OBE
2
– –
Liam Condon , –
Giles Kerr , –
1 Andrew Williams ceased to be an executive Director on 30 June 2023, which is the date at which his interests are shown.
2 Sharmila Nebhrajani cannot hold shares in Halma while she is Chair of the National Institute for Health and Care Excellence (NICE), as their conflicts policy prohibits
ownership interests in companies which operate within the life sciencessector.
Halma plc | Annual Report and Accounts 2024 175
Financial Statements Other InformationStrategic Report
Governance Report
Directors’ interests in Halma share plans (audited)
Details of Directors’ outstanding deferred share awards (DSA), conditional share awards (ESP) and free shares under
the SIP are outlined in the tables below:
Executive Share Plans Date of grant
As at
1 April
2023
Granted/
(vested)
in the year
Five day average
share price on
grant (p)
As at
31 March
2024
Marc Ronchetti ESP -Jul- , (,) . –
DSA -Jun- , (,) . –
ESP -Jun- , . ,
ESP -Jul- , . ,
DSA -Jun- , . ,
ESP -Jun- , . ,
DSA -Jun- , . ,
ESP -Jun- , . ,
Steve Gunning ESP -Feb- , . ,
DSA -Jun- , . ,
ESP -Jun- , . ,
Jennifer Ward ESP -Jul- , (,) . –
ESP -Jun- , . ,
DSA -Jun- , (,) . -
ESP -Jul- , . ,
DSA -Jun- , . ,
ESP -Jun- , . ,
DSA -Jun- , . ,
ESP -Jun- , . ,
Andrew Williams ESP -Jul- , (,) . –
ESP -Jun- , . ,
DSA -Jun- , (,) . -
ESP -Jul- , . ,
DSA -Jun- , . ,
ESP -Jun- , . ,
DSA -Jun- , . ,
The balance of ESP awards that did not vest during the year have lapsed.
The DSAs do not have any attaching performance conditions. The performance conditions attached to the 2021,
2022and 2023 ESP awards are described earlier in this Report, on page170. The 2020 ESP awards have different
performance conditions as a result of the adjustment that was made (at the time of grant) to align targets with
thechanges to the business forecasts due to the COVID pandemic and these are set out below:
Metric Below Threshold Threshold Maximum
Adjusted EPS growth
1
Performance level: % % % or more
% of award vesting
3
: .% .% %
ROTIC
2
Performance level: .% .% .% or more
% of award vesting
3
: .% .% %
Total vesting .% % %
1 Adjusted earnings per share growth over the three-year performance period.
2 Average ROTIC over the performance period.
3 There is straight line vesting in between threshold and maximum vesting.
176 Halma plc | Annual Report and Accounts 2024
ANNUAL REMUNERATION REPORT continued
Share Incentive Plan
Date of
grant
As at
1 April 2023
Granted
in the year
Share price
on award
(p)
As at
31 March 2024
Marc Ronchetti -Oct-   
-Oct-   
-Oct-   
Steve Gunning -Oct-   
Jennifer Ward -Oct-   
-Oct-   
-Oct-   
Andrew Williams -Oct-   
-Oct-   
The SIP shares are held in trust and become the employee’s, subject to the rules of the plan, after three years.
Thereare tax benefits for retaining the shares in the trust for at least five years from award date. Steve Gunning
joinedHalma on 16 January 2023 and received his first SIP shares with effect from 1 October 2023.
There have been no variations to the terms and conditions for share awards during the financial year.
Share Ownership Guidelines
Executive Directors are expected to build a holding in the Company’s shares to a minimum value broadly equivalent
totheir ESP award maximum opportunity: 300% for Group Chief Executive, 250% for Group Chief Financial Officer
and 200% for other executive Directors. In addition, executive Directors are required to hold shares after cessation of
employment. The requirement is to hold shares to the value of the share ownership guidelines or actual shareholding
(if lower) for a period of two years post cessation of employment.
Jennifer Ward meets the Share Ownership Guideline. Marc Ronchetti and Steve Gunning are yet to meet the Share
Ownership Guideline. Until such time as this threshold is achieved, they are required to retain no less than 50% of the
net of tax value of any vested conditional share or deferred share awards. There are no other non-beneficial interests
of Directors. There were no changes in Directors’ interests from 31 March 2024 to 13 June 2024.
Consideration of conditions elsewhere in the Group
The Committee considers the remuneration and employment conditions elsewhere in the Group when determining
remuneration for executive Directors. In addition to the employee engagement detailed on page86, we have
established a mean gender pay gap figure for our UK and US companies and the CEO pay ratio is available to employees.
As part of Committee/workforce engagement, our non-executive Directors held sessions with a cross-section of
employees on site visits to our companies. A breakfast meeting was also held with selected employees at Accelerate
CEO, our leadership conference, held in October 2023. At these sessions there were productive conversations on the
role of Remuneration Committee, executive and employee remuneration and a range of other topics including job
satisfaction and company culture.
Consideration of shareholder views
When determining remuneration, the Committee takes into account the views of our shareholders and guidelines set
by shareholder representative bodies.
Whilst we have regularly consulted with shareholders in the past, given the fact that no changes are to be made
toour Remuneration Policy, the Committee agreed that this was not necessary this year. However, an annual
engagement meeting was held with Glass Lewis.
The Remuneration Committee also seeks ongoing advice from its external advisers on wider shareholder views,
toensure that it is kept up to date with any changes in market practice and shareholder sentiment.
Jo Harlow
Committee Chair
For and on behalf of the Board
13 June 2024
Halma plc | Annual Report and Accounts 2024 177
Financial Statements Other InformationStrategic Report
Governance Report
The Directors present their report on the affairs of the
Company, together with the audited financial statements
and Independent Auditors’ Report, for the year ended
31 March 2024.
Activities
The Company’s principal activity is to act as a holding
company. The Company is incorporated and domiciled
inEngland and Wales. A list of its subsidiary companies
isset out on pages264 to 270. Subsidiaries of the
Company have established branches in a number of
different countries in which they operate. As permitted
under Section 414C (11) of the Companies Act 2006,
theinformation set out below, which forms part of this
Directors’ Report and is incorporated by reference, can
belocated in the Strategic Report on pages1 to 118:
• Future developments in the Group’s business.
• Activities of the Group in the field of research and
development.
• Environmental matters, including greenhouse gas
emissions.
Dividends
The Directors’ recommend a final dividend of 13.20p
pershare and, if approved, the dividend will be paid on
16 August 2024 to ordinary shareholders on the register
atthe close of business on 12 July 2024. Together with the
interim dividend of 8.41p per share already paid, this will
make a total dividend of 21.61p (2023:20.20p) per share
for the financial year.
Political donations
In line with our Group Anti-Bribery and Corruption Policy,
the Group did not make any political donations or incur
any political expenditure during the year.
Directors and Directors’ interests
The Directors of the Company as at the date of this
Report, together with their biographical details, are
shown on pages122 and 123. The Remuneration Report
on page175 provides details of the interests of each
Director in the shares of the Company.
Liability insurance and indemnities
The Company has agreed to indemnify, to the extent
permitted by law, the Company’s Directors against any
liability incurred in respect of acts or omissions arising in
the course of their office. Qualifying third party indemnities
were in force during the financial year and at the date of
approval of the Financial Statements. Each Director is
covered by appropriate Directors’ and Officers’ liability
insurance, at the Company’s expense.
Financial risk management objectives and policies
Disclosures relating to financial risk management
objectives and policies are set out in note 27 to the
financial statements, along with exposures relating
tocredit risk and liquidity risk.
Share capital and capital structure
Details of the share capital, together with details of
themovements in the share capital during the year,
areshown in note 23 to the accounts. The Company
hasone class of ordinary shares which carry no right
tofixed income. Each share carries the right to one
voteat general meetings of the Company.
There are no other classes of share capital. There are
nospecific restrictions on the size of a holding nor on
thetransfer of shares, with both governed by the general
provisions of the Company’s Articles of Association and
prevailing legislation. No person has any special rights of
control over the Company’s share capital and all issued
shares are fully paid.
Rights and obligations of ordinary shares
Holders of ordinary shares are entitled to attend and speak
at general meetings of the Company and to appoint one
or more proxies or, if the holder of shares is a corporation,
one or more corporate representatives. On a show of
hands, each holder of ordinary shares who (being an
individual) is present in person or (being a corporation)
ispresent by a duly appointed corporate representative,
not themselves being a member, shall have one vote, as
shall proxies (unless they are appointed by more than
oneholder, in which case they may vote both for and
against the resolution in accordance with the holders’
instructions). On a poll, every holder of ordinary shares
present in person or by proxy shall have one vote for
everyshare of which they are the holder.
Electronic and paper proxy appointments and voting
instructions must be received not later than 48 hours
before the meeting.
A holder of ordinary shares can lose the entitlement
tovote at general meetings where that holder has been
served with a disclosure notice and has failed to provide
the Company with information concerning interests held
in those shares. Except as set out above and as permitted
under applicable statutes, there are no limitations on
voting rights of holders of a given percentage, number
ofvotes or deadlines for exercising voting rights.
The Company has established an Employee Benefit Trust
and the trustee has waived its right to vote and its right
to all dividends.
Restrictions on transfer of shares
The Directors may refuse to register a transfer of a
certificated share that is not fully paid, provided that
therefusal does not prevent dealings in shares in the
Company from taking place on an open and proper
basisor, where the Company has a lien over that share.
The Directors may also refuse to register a transfer of
acertificated share unless the instrument of transfer is:
(i)lodged, duly stamped (if necessary), at the registered
office of the Company or any other place as the Board
may decide accompanied by the certificate for the
share(s) to be transferred and/or such other evidence
asthe Directors may reasonably require to show the
rightof the transferor to make the transfer;
178 Halma plc | Annual Report and Accounts 2024
DIRECTORS’ REPORT
(ii)inrespectof only one class of shares; (iii) in favour of
aperson who is not a minor, infant, bankrupt or a person
of unsound mind; or (iv) in favour of not more than four
persons jointly.
Transfers of uncertificated shares must be carried out
using CREST and the Directors can refuse to register a
transfer of an uncertificated share in accordance with
theregulations governing the operation of CREST.
There are no other restrictions on the transfer of ordinary
shares in the Company except certain restrictions which
may from time to time be imposed by laws and regulations
(for example insider trading laws); or where a shareholder
with at least a 0.25% interest in the Company’s certificated
shares has been served with a disclosure notice and
hasfailed to provide the Company with information
concerning interests in those shares. TheDirectors are
notaware of any agreements between holders of the
Company’s shares that may result in restrictions on
thetransfer of securities or on votingrights.
Employees
An overview of the Board’s engagement with employees
along with the mechanisms for sharing information
andtaking account of their views in decision-making are
included on page68 of the Strategic Report and page136
of the Governance Report. Aligning the interests of
employees in the Company’s performance is achieved
through a variety of share and bonus schemes.
The Company gives full and fair consideration to
applications of employment from disabled people.
Training, career development and promotion
opportunities are equally applied for all our employees,
regardless of disability. In the event of an existing
employee becoming disabled, every effort will be
madetoensure that their employment with the Group
continues and that appropriate support is provided.
Halma has a group-wide diversity and inclusion policy
which sets out our commitment that all candidates
areconsidered fairly, regardless of their gender, race,
age,sexual orientation, professional or academic
background and it is our practice to ensure that there is a
diverse selection of candidates before we commence the
assessment process. While appointments are ultimately
based on merit – taking account of an individual’s
relevant skills and experience for the role – we recognise
the strong benefits that a diverse workforce brings.
Accordingly, we require recruiters to make diversity a
priority in their selection of potential candidates, which
ensures that we factor diversity and inclusion into our
process at the outset.
The work that Halma is doing to improve diversity across
the Group, along with our open and inclusive culture,
ensures that all candidates are fairly considered for each
role. We continue to include a DEI target within executive
remuneration to align our drive for a diverse and inclusive
culture throughout the Group. Our Talent and Culture
Growth Enabler embodies the importance of DEI to
Halma’s sustainable growth strategy – see page43
andpage84 for more information.
Stakeholder engagement
A description of how the Directors have had regard to
theneed to foster the Company’s business relationships
with suppliers, customers and others, and the effect of
Director engagement with our stakeholders, is set out on
pages68 to 74. Examples of how the Directors had regard
to stakeholder interests when making principal decisions
during the year are set out on pages75 to76.
Appointment and removal of Directors
With regard to the appointment and replacement of
Directors, the Company is governed by its Articles of
Association, the UK Corporate Governance Code, the
Companies Act and related legislation. Directors can
beappointed by the Company by ordinary resolution
atageneral meeting or by the Board. If a Director is
appointed by the Board, such a Director will hold office
until the next Annual General Meeting (AGM) and
shallthen be eligible for election at that meeting. In
accordance with the Articles of Association and UK
Corporate Governance Code, each of the Directors,
beingeligible, will offer themselves for election or
re-election at this year’s AGM. The Company can
removea Director from office, including by passing a
special resolution or by notice being given by all the
otherDirectors. The Articles themselves may be
amendedby special resolution of theshareholders.
Powers of Directors
The powers of Directors are set out in the Articles of
Association and a full list of the matters reserved for
decision by the Board can be found on our website,
www.halma.com.
Contracts of significance and change of control
There are a number of agreements that take effect, alter
or terminate upon a change of control of the Company,
principally bank loan agreements, private placement
debt and employee share plans.
There are two significant agreements, in terms of the
likely impact on the business of the Group as a whole,
containing such provisions:
• The £550m syndicated Revolving Credit Facility which,
ifafter 30 days of a change of control notice to the
loan agent, can result in 30 days’ notice being given
tothe Company by any Lender, for all amounts
outstanding to that Lender, to be immediately
dueandpayable, at which time the commitment
ofthat Lender will be cancelled. If all of the Lenders
givethisnotice the whole facility would be cancelled.
Halma plc | Annual Report and Accounts 2024 179
Financial Statements Other InformationStrategic Report
Governance Report
• The US$430m US Private Placement Note Purchase
Agreement under which, in the event of a change of
control, the Company is required (within 10 days of a
change of control) to make an offer to the holders of
the US Private Placement notes to prepay the principal
amount of the notes together with interest accrued.
The US$425m US Private Placement Note Purchase
Agreement entered into in April 2024 has the same
change of control requirements.
The Group has contractual arrangements with a wide
range of suppliers. The Group is not unduly dependent
upon contractual arrangements with any particular
customer. While the loss or disruption to certain of
thesearrangements could temporarily affect the
Group’sbusiness, none are considered to be essential.
The Company’s share plans contain provisions as a result
of which awards may vest and become exercisable on a
change of control of the Company in accordance with
the rules of the plans.
There are no agreements between the Company, its
Directors or employees that provide for compensation
forloss of office or employment that occurs because of
atakeover bid.
Allotment authority
Under the Companies Act 2006 the Directors may only
allot shares if authorised by shareholders to do so. At
theAGM an ordinary resolution will be proposed which,
ifpassed, will authorise the Directors to allot and issue
shares up to an aggregate nominal value of £12,500,000
(up to 125,000,000 for ordinary shares of 10p each), being
just less than one third of the issued share capital of the
Company (excluding treasury shares) as at 13 June 2024
(the latest practicable date prior to the publication of
theNotice of Meeting).
In accordance with the Directors’ stated intention to seek
annual renewal, the authority will expire at the earlier of
the conclusion of the AGM of the Company in 2025 and
30 September 2025.
Passing this resolution will give the Directors flexibility
toact in the best interests of shareholders, when
opportunities arise, by issuing new shares. As at
13June2024, the Company had 379,645,332 ordinary
shares of 10p each in issue.
The Companies Act 2006 also requires that, if the Company
issues new shares for cash or sells any treasury shares, it
must first offer them to existing shareholders in proportion
to their current holdings. At the AGM a special resolution
will be proposed which, if passed, will authorise the
Directors to issue a limited number of shares for cash
and/or sell treasury shares without offering them to
shareholders first.
The authority is for an aggregate nominal amount of
upto 10% of the aggregate nominal value of the issued
share capital of the Company as at 13 June 2024 of
£3,780,000. The resolution will also modify statutory
pre-emption rights to deal with legal, regulatory or
practical problems that may arise on a rights issue or
other pre-emptive offer or issue. The authority will expire
at the same time as the resolution conferring authority
on the Directors to allot shares. The Directors consider this
authority necessary in order to give them flexibility to deal
with opportunities as they arise, subject to the restrictions
contained in the resolution. There are no present plans to
issue shares.
Substantial shareholdings
As at 31 March 2024, the Company had been notified,
inaccordance with DTR 5 of the Disclosure Guidance and
Transparency Rules, of the following interests in voting
rights in its shares.
Year ended 31 March 2024
No. of
ordinary
shares
Percentage of
voting rights
and issued
share capital No of holdings
BlackRock, Inc. ,, . Indirect
During the period between 31 March 2024 and 13 June
2024 (the latest practicable date prior to the publication),
no changes to substantial shareholdings were disclosed to
the Company.
Purchase of the Company’s own shares
The Company was authorised at the 2023 AGM to
purchase up to 37,900,000 of its own 10p ordinary shares
in the market. This authority expires at the earlier of the
conclusion of the AGM of the Company in 2024 and
30 September 2024. The Company did not purchase any
of its own shares under this authority during the year. In
accordance with the Directors’ stated intention to seek
annual renewal, a special resolution will be proposed at
the AGM to renew this authority until the earlier of the
end of the Company’s 2025 AGM and 30 September 2025,
in respect of up to 37,900,000 ordinary shares, which is
approximately 10% of the Company’s issued share
capitalas at 13 June 2024.
Annual General Meeting
The Company’s AGM will be held on 25 July 2024.
The Notice of Meeting, together with an explanation
ofthe proposed resolutions, is enclosed with this
AnnualReport and Accounts and is also available
ontheCompany’s website at www.halma.com.
180 Halma plc | Annual Report and Accounts 2024
DIRECTORS’ REPORT continued
Independent auditors
Each of the persons who is a Director at the date
ofapproval of this Annual Report and Accounts
confirmsthat:
• So far as the Director is aware, there is no relevant
auditinformation of which the Company’s Auditor
isunaware.
• The Director has taken all the steps that he/she ought
to have taken as a director in order to make himself/
herself aware of any relevant audit information and
toestablish that the Company’s Auditor is aware of
that information.
This confirmation is given and should be interpreted
inaccordance with the provisions of Section 418 of the
Companies Act 2006.
PricewaterhouseCoopers LLP (PwC) has expressed its
willingness to continue in office as Independent Auditor
and a resolution to appoint PwC will be proposed at
theforthcoming AGM.
Going concern statement
The Group’s business activities, together with the main
trends and factors likely to affect its future development,
performance and position, and the financial position of
the Group as at 31 March 2024, its cash flows, liquidity
position and borrowing facilities are set out in the
Strategic Report. In addition, note 27 contains further
information concerning the security, currency, interest
rates and maturity of the Group’s borrowings.
The financial statements have been prepared on a
goingconcern basis. In adopting the going concern basis
the Directors have considered all of the above factors,
including potential scenarios and its principal risks set
outon pages 108 to 117. Under the potential scenarios
considered, which includes a severe but plausible
downside scenario, the Group remains within its debt
facilities and the attached financial covenants for the
foreseeable future and the Directors therefore believe,
atthe time of approving the financial statements, that
the Company is well placed to manage its business risks
successfully and remains a going concern. The key facts
and assumptions in reaching this determination are
summarised below.
Our financial position remains robust with committed
facilities at the balance sheet date totalling approximately
£927m, including a £550m Revolving Credit Facility (RCF).
The undrawn committed facilities as at 31 March 2024
amounted to £215m. In May 2024, the last extension
option for the RCF was exercised, resulting in a maturity
date of May 2029. Since the year end, the Group also
entered into a new Note Purchase Agreement which
provided access to loan notes totalling £336m. The
financial covenants across the facilities are for leverage
(net debt/adjusted EBITDA) of not more than three and
ahalf times and for adjusted interest cover of not less
than four times.
Our base case scenario has been prepared using forecasts
from each of our companies as well as expectations of
cash outflows on acquisitions. In addition, a severe but
plausible downside scenario has been modelled showing
adecline in trading for the year ending 31 March 2025, as
well as other potential adverse impacts such as a one-off
legal event and deterioration in working capital position.
The reduction in trading could be caused by another
pandemic or other geopolitical crises, or continued
macroeconomic volatility leading to further inflation
andinterest rate increases. In mitigating the impacts
ofthe downside scenario there are actions that can be
taken which are entirely discretionary to the business
suchas further reducing acquisition spend and decreasing
the dividend growth rates. In addition, the Group has
demonstrated strong resilience and flexibility to manage
its overheads and adapt the supply chain during recent
global economic uncertainty.
Neither the base case nor severe but plausible downside
scenarios result in a breach of the Group’s available debt
facilities or the attached covenants and, accordingly, the
Directors believe there is no material uncertainty in the
use of the going concern assumption and, therefore,
deem it appropriate to continue to adopt the going
concern basis of accounting for at least the next
12-month period.
Post‑balance sheet events
Events subsequent to the year end are reported in note32
to the Accounts on page256.
Disclosure required under the Listing Rules and the
Disclosure Guidance and Transparency Rules
For the purposes of compliance with DTR 4.1.5 R(2), the
required content of the management report can be
found in this Directors’ Report and the Strategic Report,
including the sections of the Annual Report and Accounts
incorporated by reference.
Relevant disclosures required by LR 9.8.4 R can be located
as follows:
Page
Details of long-term incentives 
Contracts of significance 
Shareholder waiver of dividends 
Shareholder waiver of future dividends 
Corporate Governance Statement
The Company’s statement on corporate governance can
be found in the Governance Report on page120. The
Governance Report forms part of this Directors’ Report
and is incorporated into it by cross-reference.
Mark Jenkins
Company Secretary
By order of the Board 13 June 2024
Halma plc | Annual Report and Accounts 2024 181
Financial Statements Other InformationStrategic Report
Governance Report
The Directors are responsible for preparing the Annual
Report and the financial statements in accordance with
applicable law and regulation.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the
Directors have prepared the Group financial statements
inaccordance with UK-adopted international accounting
standards and the Company financial statements in
accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting
Standards, comprising FRS 101 “Reduced Disclosure
Framework”, and applicable law).
Under company law, directors must not approve the
financial statements unless they are satisfied that they
give a true and fair view of the state of affairs of the
Group and Company and of the profit or loss of the
Groupfor that period. In preparing the financial
statements, the Directors are required to:
• select suitable accounting policies and then apply
themconsistently;
• state whether applicable UK-adopted international
accounting standards have been followed for the
Groupfinancial statements and United Kingdom
Accounting Standards, comprising FRS 101 have been
followed for the Company financial statements,
subjectto any material departures disclosed and
explained in the financial statements;
• make judgements and accounting estimates that are
reasonable and prudent; and
• prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
Group and Company will continue in business.
The Directors are responsible for safeguarding the
assetsof the Group and Company and hence for taking
reasonable steps for the prevention and detection of
fraud and other irregularities.
The Directors are also responsible for keeping adequate
accounting records that are sufficient to show and
explain the Group’s and Company’s transactions
anddisclose with reasonable accuracy at any time
thefinancial position of the Group and Company and
enablethem to ensure that the financial statements
andthe Directors’ Remuneration Report comply with
theCompanies Act 2006.
The Directors are responsible for the maintenance
andintegrity of the Company’s website. Legislation in
theUnited Kingdom governing the preparation and
dissemination of financial statements may differ from
legislation in other jurisdictions.
Directors’ confirmations
The Directors consider that the Annual Report and
Accounts, taken as a whole, is fair, balanced and
understandable and provides the information necessary
for shareholders to assess the Group’s and Company’s
position and performance, business model and strategy.
Each of the Directors, whose names and functions are
listed on pages122 and 123 confirm that, to the best of
their knowledge:
• the Group financial statements, which have been
prepared in accordance with UK-adopted international
accounting standards, give a true and fair view of
theassets, liabilities, financial position and profit of
theGroup;
• the Company financial statements, which have
beenprepared in accordance with United Kingdom
Accounting Standards, comprising FRS 101, give a
trueand fair view of the assets, liabilities and financial
position of the Company; and
• the Strategic Report and the Directors’ Report includes
a fair review of the development and performance
ofthe business and the position of the Group and
Company, together with a description of the principal
risks and uncertainties that it faces.
In the case of each Director in office at the date the
Directors’ Report is approved:
• so far as the Director is aware, there is no relevant audit
information of which the Group’s and Company’s
auditors are unaware;
• they have taken all the steps that they ought to have
taken as a Director in order to make themselves aware
of any relevant audit information and to establish that
the Group’s and Company’s auditors are aware of that
information; and
• the financial statements on pages183 to 275 were
approved by the Board of Directors on 13 June 2024
andsigned on its behalf by Marc Ronchetti and
SteveGunning.
On behalf of the Board
Marc Ronchetti
Group Chief Executive
Steve Gunning
Chief Financial Officer
13 June 2024
182 Halma plc | Annual Report and Accounts 2024
STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS
Financial Statements
184 Independent Auditors’ Report
194 Consolidated Income
Statement
195 Consolidated Statement
of Comprehensive Income
and Expenditure
196 Consolidated Balance Sheet
197 Consolidated Statement
of Changes in Equity
198 Consolidated Cash
Flow Statement
199 Accounting Policies
208 Notes to the Accounts
258 Company Balance Sheet
259 Company Statement
of Changes in Equity
260 Notes to the Company
Accounts
274 Summary 2015 to 2024
Section contents
Other InformationGovernance ReportStrategic Report
Financial Statements
Halma plc | Annual Report and Accounts 2024 183
Report on the audit of the financial statements
Opinion
In our opinion:
• Halma plc’s group financial statements and company
financial statements (the “financial statements”) give
atrue and fair view of the state of the group’s and of
the company’s affairs as at 31 March 2024 and of the
group’s profit and the group’s cash flows for the year
then ended;
• the group financial statements have been properly
prepared in accordance with UK-adopted international
accounting standards as applied in accordance with
the provisions of the Companies Act 2006;
• the company financial statements have been properly
prepared in accordance with United Kingdom Generally
Accepted Accounting Practice (United Kingdom
Accounting Standards, including FRS 101 “Reduced
Disclosure Framework”, and applicable law); and
• the financial statements have been prepared in
accordance with the requirements of the Companies
Act 2006.
We have audited the financial statements, included within
the Annual Report and Accounts (the “Annual Report”),
which comprise: the Consolidated and Company
BalanceSheets as at 31 March 2024; the Consolidated
Income Statement and Consolidated Statement
ofComprehensive Income and Expenditure, the
Consolidated Cash Flow Statement, and the
Consolidatedand Company Statement of Changes
inEquity for the year then ended; the accounting
policies;and the notes to the financial statements.
Our opinion is consistent with our reporting to the
AuditCommittee.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (“ISAs (UK)”) and applicable
law. Our responsibilities under ISAs (UK) are further
described in the Auditors’ responsibilities for the audit
ofthe financial statements section of our report.
We believe that the audit evidence we have obtained
issufficient and appropriate to provide a basis for
ouropinion.
Independence
We remained independent of the group in accordance
with the ethical requirements that are relevant to our
audit of the financial statements in the UK, which includes
the FRC’s Ethical Standard, as applicable to listed public
interest entities, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
On 7 August 2023, following the acquisition of Lazer Safe
Pty. Ltd. On 4 August 2023, PwC Australia requested,
onbehalf of the entity, a change in the tax year end
fromthe Australian Tax Office to align that of the
ultimate parent company for a total fee of $1,500 AUD,
which is aprohibited service under paragraph 5.40 of
theFRC Revised Ethical Standard 2019. The service
relatedto animmaterial subsidiary that did not form
partof ourevidence in respect of the audit of the Group’s
consolidated financial statements and had no impact on
the accounting records or internal controls over financial
reporting. We confirm that, based on our assessment of
these breaches, the nature and scope of the service
andthe subsequent actions taken, the provision of the
service has not affected our professional judgements in
connection with our audit of the year ended 31 March
2024, we therefore remained independent for the
purposes of the audit.
Other than the matter referred to above, and to the
bestof our knowledge and belief, we declare that no
non-audit services prohibited by the FRC’s Ethical
Standard were provided to the Group.
Other than those disclosed in note 6 of the Notes to
theGroup Financial Statements, we have provided no
non-audit services to the Company or its controlled
undertakings in the period under audit.
Other than those disclosed in note 6 to the financial
statements, we have provided no non-audit services to
the company or its controlled undertakings in the period
under audit.
Our audit approach
Overview
Audit scope
• We identified one financially significant operating component within the Group;
• We performed audit procedures over 44 of the 312 reporting components in the group to provide sufficient Group wide coverage on all
financial statement line items; and
• This provided coverage of approximately 71% of revenue, approximately 75% of profit before tax on an absolute basis, and approximately
88% of net assets.
Key audit matters
• Acquisition accounting – valuation of acquired intangibles (group)
• Assessment of impairment of goodwill and acquired intangible assets (group)
• Impairment of investments and recoverability of intercompany receivables (parent)
Materiality
• Overall group materiality: £19,820,000 (FY23: £18,060,000) based on 5% of adjusted profit before taxation.
• Overall company materiality: £19,132,000 (FY23: £16,200,000) based on 1% of total assets.
• Performance materiality: £14,865,000 (FY23: £13,540,000) (group) and £14,300,000 (FY23: £12,100,000) (company).
184 Halma plc | Annual Report and Accounts 2024
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF HALMA PLC
The scope of our audit
As part of designing our audit, we determined materiality
and assessed the risks of material misstatement in the
financial statements.
Key audit matters
Key audit matters are those matters that, in the auditors’
professional judgement, were of most significance in the
audit of the financial statements of the current period
and include the most significant assessed risks of material
misstatement (whether or not due to fraud) identified
bythe auditors, including those which had the greatest
effect on: the overall audit strategy; the allocation of
resources in the audit; and directing the efforts of the
engagement team. These matters, and any comments
we make on the results of our procedures thereon, were
addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion
onthese matters.
This is not a complete list of all risks identified by
ouraudit.
The key audit matters below are consistent with last year.
Key audit matter How our audit addressed the key audit matter
Acquisition accounting – valuation of acquired
intangibles(group)
Refer to Accounting Policies for the disclosure of relevant critical
accounting judgements and estimates together with Note 25 –
Acquisitions.
During the year ended 31 March 2024, the Group completed eight
business acquisitions with a combined total consideration of
£265.9m. Acquired intangibles recognised in these transactions
totalled £155.4m.
There is a risk of material misstatement to the financial
statements from the application of IFRS 3 ‘Business combinations’,
and the related valuation of the assets acquired, the liabilities
assumed, and the consideration paid, including contingent
consideration. The risk of material misstatement is inherently
higher for the acquired intangible assets as a result of the
methodology and assumptions used in the valuation.
Management engaged third party valuation experts to assist
them in the valuation of acquired intangible assets for the
sevenlargest acquisitions during the year. The total estimated
consideration including contingent consideration for the remaining
acquisition was £3.8m.
The key estimates assessed were:
• the completeness of the identified intangible assets which have
been recognised in the business combinations;
• the methodology and assumptions used in the valuation; and
• management’s estimate of the future forecast cash flows at
the respective acquisition date.
We focused our audit procedures on the five largest acquisitions
which in aggregate led to the recognition of acquired intangible
assets totalling £139.9m.
There were a further three acquisitions for which the acquired
intangibles amounted to £15.5m in total. Therefore in aggregate
the risk of a material misstatement in the valuation of these
acquisitions is not deemed to be significant.
In respect of the five acquisitions we:
• Obtained and read key documentation and agreements relating
to these acquisitions together with the acquisition models,
internal management due diligence reports and the final
purchase price allocations performed by management’s experts;
• Agreed the appropriateness of the trade names, customer
relationships and technology recognised as separately identified
intangible assets in each of these acquisitions whererelevant;
• Used our internal valuation experts to evaluate the
methodology used by management’s experts and confirmed
that appropriate income approach techniques had been utilised
in valuing the identified intangible assets. Our internal
valuations experts also evaluated the assumptions used by
management’s experts, including assessing discount rates,
royalty rates and attrition rates;
• Challenged the key assumptions used in these areas and
performed sensitivity or where rates differed from those we
might typically use;
• Examined the detailed acquisition cash flow forecasts and
confirmed that they reflect the nature of the businesses
acquired and management’s planned actions as at the
acquisition date, and that these actions align with those which
could foreseeably be achieved by another market participant.
These were compared to historic growth rates and margins
andindustry reports where available; and
• Reviewed the disclosures in the Annual Report, including in
note25, and checked that these are consistent with our audit
work performed and the disclosure requirements of IFRS 3.
Based on the work performed, as summarised above, we
concluded the Group’s acquisition accounting is materially
appropriate and the recognised acquired intangible assets
havebeen appropriately valued and disclosed.
Halma plc | Annual Report and Accounts 2024 185
Governance Report Other InformationStrategic Report
Financial Statements
Key audit matter How our audit addressed the key audit matter
Assessment of impairment of goodwill and acquired
intangible assets (group)
Refer to Accounting Policies for the disclosure of critical
accounting judgements and estimates around goodwill and
acquired intangibles impairment, Note 11 – Goodwill and Note 12
– Other Intangible Assets of the financial statements.
The Group holds significant goodwill and acquired intangible
assets balances totalling £1,211.0m (2023: £1,120.5m) and £510.4m
(2023: £416.1m) respectively as at 31 March 2024.
The valuation of these assets involves estimation and there is a
riskthey may be impaired. Under IAS 36 ‘Impairment of Assets’,
goodwill must be tested for impairment at least annually and
finite life intangible assets tested to the extent there is any
indication that an asset may be impaired. Management has
performed an annual impairment review for each of the 11 CGU
groups (‘CGUG’), which is the lowest level at which goodwill is
monitored by the Group. The impairment reviews performed by
management contain a number of estimates such as the forecast
cash flows, growth rates and discount rates. They also include
climate change related additional capital expenditure in their
basecase model and adjustments to the long term growth rates
where industries have been identified as having the potential to
beadversely impacted. A change in the assumptions applied by
management across the assessment, could result in an
impairment charge in one CGUG.
As per management’s impairment model, there is headroom
inthe base case for all CGUG’s. The two CGUGs with the
lowestheadroom percentage are Life Sciences and Healthcare
Assessment, where the cashflows generated by these two
CGUGsand expectations of future growth in the short-term
havedecreased. We believe there is a higher risk of an impairment
in these CGUG’s and hence we performed additional procedures
to address this risk. For the remaining nine CGUG’s the impairment
ofgoodwill has been assessed as a normal audit risk given the
significance of headroom in these.
Management also assessed whether there are any indications
thatother intangible assets may be impaired. Where such
indications were identified, management has performed
valueinuse calculations to assess the recoverable amount
ofthese assets by comparing them to the carrying amounts.
Noimpairment losses have been recognised as a result of
thisassessment.
The audit procedures we performed to address the risk of
impairment of goodwill and acquired intangibles were:
• Assessed the methodology and approach applied by
management in performing its impairment reviews, including
theidentification of CGUG’s and the allocation of businesses
andassets, particularly for acquisitions within the period. This
wasundertaken to ensure that the allocation was consistent
andin linewith the requirements of IAS 36 ‘Impairment of Assets’;
• Obtained management’s goodwill annual impairment assessment
for all 11 CGUG’s and ensured the calculations were mathematically
accurate and the methodology used was appropriate’;
• Tested the underlying data on which the impairment assessment
was based. We evaluated the year one cash flows and assessed
the short and long-term growth rates applied to them to determine
the value in use. In doing so, we compared the; cash flow forecasts
to the latest Board approved budgets for CGUG’s and Sector
forecasts for the acquired intangibles, prior year budgets to
actualresults, and historical cash generation of these CGUG’s
where applicable, in order to assess the accuracy of the
forecasting process;
• Ensured consistency of management’s climate change assumptions
through comparison to the strategic report and theTCFD analysis
including the current year 2050 Net Zero commitment targets for
scope 3 emissions;
• Tested the growth rate assumptions by comparing them to
management’s strategic plans, historic growth rates, and industry
reports where available;
• For the Life Sciences and the Healthcare Assessment CGUG’s,
dueto their lower headroom, we also used our valuation experts
to calculate an independent WACC rate and long-term
growthrate;
• In addition to the above, for acquired intangible assets we tested
management’s impairment assessment, evaluating the approach
and ensuring that the underlying triggers used were appropriate;
• Where triggers were identified in acquired intangibles, we reviewed
managements value in use calculations in line with the useful
economic lives of those assets, discussed performance with local,
sector and group management, along with external expectations
for the markets and industries to which other intangibles relate;-
• Assessed management’s sensitivity analysis of key assumptions
and applied our own independent sensitivities to determine whether
any changes in these assumptions would either individually or
collectively, result in any of the goodwill or acquiredintangible
assets becoming impaired; and
• Reviewed the adequacy of disclosures made in the financial
statements and assessed compliance with IAS 36.
Based on our work summarised above, we concluded that the
goodwill and acquired intangible assets balances are materially
accurate at 31 March 2024 and that appropriate disclosures have
been made in the financial statements.
186 Halma plc | Annual Report and Accounts 2024
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF HALMA PLC continued
Key audit matter How our audit addressed the key audit matter
Impairment of investments and recoverability of
intercompany receivables (parent)
Refer to Statement of Accounting Policies and Notes C5 –
Investments and C6 – Debtors.
At 31 March 2024, the Company held investments in subsidiaries
with a carrying value of £636.0m (2023: £576.8m) and
intercompany receivables of £1,194.6m (2023: £1,025.6m).
There is a risk that the recoverable amount of combined
investments and intercompany debtors held at 31 March 2024
fallsbelow their current carrying value. The investment amount
consists of the direct ownership of all UK subsidiaries in addition
toindirect investments in the remaining Group entities. The
realisation of the carrying value of these investments and debtors
is dependent on the future performance of the trading entities
within the Group. The assessment therefore involves estimation,
particularly around forecasting future cash flows, the discount
rate applied and the long term growth rate.
Management initially prepared a trigger assessment to identify
those investments with impairment indicators, before preparing
detailed Value in Use (VIU) models. The areas of audit focus
werethe key assumptions in the VIU model including investment
specific operating assumptions, discount rates and growth rates
along with adjustments for any external debt and intercompany
loans outside of the investment sub-groups.
Through this assessment management concluded that £7.5m of
investment impairment was required, and that no impairment
was required in relation to intercompany receivables.
The audit procedures we performed to address the risk around the
carrying value of investments in subsidiaries and recoverability of
intercompany receivables were:
• Discussed with management the basis of its impairment
reviewand, where triggers were identified, the key assumptions
supporting the cash flow forecasts, comparing these against
the goodwill and other intangible models where applicable;
• Supported by PwC valuations experts, reviewed management’s
discount rate and long term growth rate calculation for
appropriateness;
• Tested all current year acquisitions and disposals back to the
supporting documentation and reconciled the closing positions
from management’s detailed schedules to the financial
statements at 31 March 2024;
• Compared the total market capitalisation of the Group to the
carrying value of investments and net intercompany debtors,
adjusted for net debt, which did not identify any impairment
triggers;
• Sensitised management’s assumptions in the VIU model in
particular around the forecast cash flow growth rates based on
historic performance and industry expected growth rates; and
• In respect of intercompany balances recoverability, reviewed the
expected cash flows of the associated entity to ensure this is
appropriately recorded and recoverable.
Based on the work performed, as summarised above, we agree
the impairment of £7.5m to be materially appropriate against the
investments held at 31 March 2024.
Halma plc | Annual Report and Accounts 2024 187
Governance Report Other InformationStrategic Report
Financial Statements
How we tailored the audit scope
We tailored the scope of our audit to ensure that we
performed enough work to be able to give an opinion
onthe financial statements as a whole, taking into
account the structure of the group and the company,
theaccounting processes and controls, and the industry
inwhich they operate.
The Group is split into three sectors being Safety,
Environmental & Analysis and Healthcare. Each sector
consists of a number of businesses spread globally
acrossmore than 20 countries. The businesses are
furtherdisaggregated into 312 reporting components
within theconsolidation.
Beyond the parent company we have identified one
financially significant operating component, with no
othercomponents providing more than 15% of the
Group’sexternal revenue or adjusted profit before taxation.
Wedetermined the most efficient approach toscoping
was to perform full scope procedures over 29reporting
components where statutory audits are already required
in the United Kingdom, Belgium, Germany, France, China,
Singapore, Switzerland, Italy, Australia andCyprus. Full
scope procedures were also performed inrelation to the
component holding all consolidation adjustments. In
addition, specified audit procedures wereperformed over
all material balances fora further 14components in the
United States, which includes the financially significant
operating component. Additional audit procedures were
performed on specific financial statement line items for
afurther 12 components in China, the United Kingdom,
the United States, Canada, Poland and Australia. This
approach ensured that appropriate audit coverage has
been obtained across allfinancial statement line items.
Where work was performed by component auditors,
wedetermined the appropriate level of involvement we
needed to have in that audit work to ensure we could
conclude that sufficient appropriate audit evidence had
been obtained for the Group financial statements as a
whole. We issued written instructions to all component
auditors and had regular communications with them
throughout the audit cycle. We have held remote meetings
with members of each component team during the
planning phase of our work and reviewed all matters of
significance reported. In addition, the Group Engagement
Leader and a senior member of the Group engagement
team visited the US during the execution phase of the
audit to provide additional oversight to the US component
teams. The Group Engagement Leader and senior
members of the Group engagement team also visited
anumber of the UK based reporting components.
Working paper reviews have also been performed for all
components which are individually material to the Group;
that is exceeding 5% of the Group’s profit before taxation
or 3% of the Group’s revenue.
Based on the detailed audit work performed across the
Group, we have gained coverage of approximately 71% of
total revenue, approximately 75% of profit before tax on
an absolute basis, and approximately 88% of net assets.
The impact of climate risk on our audit
As part of our audit we have made enquiries of
management to understand the process it adopted to
assess the extent of the potential impact of climate risk
on the financial statements and support the disclosures
made in relation to climate risk within the Strategic
report, TCFD Report and Sustainability report. We
performed enquiries with management and read it’s
underlying working papers for updates to the TCFD risk
assessment and Scope 3 2050 Net Zero risk assessment.
We assessed the completeness of management’s climate
risk assessment by: reading external reporting made by
management including the Carbon Disclosure Project
submissions to ensure consistency with climate reporting;
and enquiring with management on it’s climate risk
assessment including work performed over the
finalisation of Scope 3 Net Zero targets. The Board has
made commitments to get to a 2040 Net Zero target
forScope 1 and Scope 2 and a 2030 interim target, set
inline with a 1.5 degree trajectory, to reduce Scope 1 & 2
emissions by 42% from management’s 2020 baseline.
Inthe current year, management has also confirmed a
2050 Net Zero target for Scope 3 emissions. Management
continues to assess that there is no material impact
onthe financial reporting judgements and estimates
arisingfrom its considerations, consistent with previous
assessments made by the business. Using our knowledge
of the business, we evaluated management’s risk
assessment, its estimates as set out in the Accounting
Policies and resulting disclosures where significant. In
particular we have considered how climate risk would
impact the assumptions made in the forecasts prepared
by management used in it’s impairment analyses, as
referenced in the key audit matters in relation to the
impairment of goodwill, acquired intangible assets and
investments above. We also considered the consistency
ofthe disclosures in relation to climate change within the
Strategic report, TCFD Statement and the Sustainability
report and our knowledge obtained from the audit.
Ourprocedures did not identify any material impact in
the context of our audit of the financial statements as
awhole, or our key audit matters, for the year ended
31 March 2024. Our responsibility over other information
isfurther described in the “Reporting on other
information” section of our report. We have not been
engaged to provide assurance over the accuracy of
thesedisclosures.
Materiality
The scope of our audit was influenced by our application
of materiality. We set certain quantitative thresholds
formateriality. These, together with qualitative
considerations, helped us to determine the scope of our
audit and the nature, timing and extent of our audit
procedures on the individual financial statement line
items and disclosures and in evaluating the effect of
misstatements, both individually and in aggregate on
thefinancial statements as a whole.
188 Halma plc | Annual Report and Accounts 2024
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF HALMA PLC continued
For each component in the scope of our group audit, we
allocated a materiality that is less than our overall group
materiality. The range of materiality allocated across
components was £0.1m to £17.84m. Certain components
were audited to a local statutory audit materiality that
was also less than our overall group materiality.
We use performance materiality to reduce to an
appropriately low level the probability that the aggregate
of uncorrected and undetected misstatements exceeds
overall materiality. Specifically, we use performance
materiality in determining the scope of our audit and
thenature and extent of our testing of account balances,
classes of transactions and disclosures, for example in
determining sample sizes. Our performance materiality
was 75% (FY23: 75%) of overall materiality, amounting to
£14,865,000 (FY23: £13,540,000) for the group financial
statements and £14,300,000 (FY23: £12,100,000) for the
company financial statements.
In determining the performance materiality, we considered
a number of factors – the history of misstatements, risk
assessment and aggregation risk andthe effectiveness
ofcontrols – and concluded that anamount at the upper
end of our normal range wasappropriate.
We agreed with the Audit Committee that we would
report to them misstatements identified during our
auditabove £990,000 (group audit) (FY23: £903,000)
and£990,000 (company audit) (FY23: £903,000) as well
as misstatements below those amounts that, in our
view,warranted reporting for qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the group’s
and the company’s ability to continue to adopt the going
concern basis of accounting included:
• Testing the appropriateness of the underlying cash
flowforecasts and performing a retrospective review
ofactual performance to the prior year model;
• Reviewing the debt agreements to confirm the terms
and conditions, including covenants. The covenants
were consistent with those used in management’s
going concern assessment;
• Agreeing borrowings currently in place to third-party
confirmations and considered the Group’s available
financing and maturity profile. This supported the
Directors’ conclusion that sufficient liquidity headroom
remained throughout the assessment period;
• Testing the mathematical accuracy of the covenant
calculations, including confirming that the adjustments
recorded to determine proforma EBITDA;
• Reviewing management’s base case and severe but
plausible downside scenario, ensuring the directors
haveconsidered all appropriate factors, including the
cash flows, the liquidity position of the Group, available
borrowing facilities, the timing of contractual debt
repayments and the relevant financial and non-
financial covenants; and
• Performing sensitivity analysis to assess the impact of
movements in significant assumptions on the overall
liquidity headroom and the banking covenants.
Based on the work we have performed, we have not
identified any material uncertainties relating to events
orconditions that, individually or collectively, may cast
significant doubt on the group’s and the company’s
ability to continue as a going concern for a period of at
least twelve months from when the financial statements
are authorised for issue.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Financial statements – group Financial statements – company
Overall materiality £19,820,000 (FY23: £18,060,000). £19,132,000 (FY23: £16,200,000).
How we determined it 5% of adjusted profit before taxation 1% of total assets capped at 90% of
Groupmateriality for the purposes of
theGroup audit.
Rationale for benchmark applied Based on the benchmarks used in the
Annual Report, adjusted profit before
taxation is considered as the primary
measure used by the shareholders in
assessing the underlying performance
ofthe Group. This benchmark excludes
theimpact of adjustments in respect of
amortisation and impairment of acquired
intangible assets, acquisition items,
significant restructuring costs and
profitorloss on disposal of operations.
We determined our materiality based on
total assets, which is more applicable than
a performance-related measure as the
company is an investment holding
company for the group. The higher
company materiality level was used for
thepurposes of testing balances not
relevant to the group audit, such as
investments in subsidiary undertakings
andintercompany balances.
Halma plc | Annual Report and Accounts 2024 189
Governance Report Other InformationStrategic Report
Financial Statements
In auditing the financial statements, we have concluded
that the directors’ use of the going concern basis of
accounting in the preparation of the financial statements
is appropriate.
However, because not all future events or conditions
canbe predicted, this conclusion is not a guarantee
astothe group’s and the company’s ability to continue
asagoing concern.
In relation to the directors’ reporting on how they have
applied the UK Corporate Governance Code, we have
nothing material to add or draw attention to in relation
to the directors’ statement in the financial statements
about whether the directors considered it appropriate
toadopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the
directorswith respect to going concern are described
inthe relevant sections of this report.
Reporting on other information
The other information comprises all of the information in
the Annual Report other than the financial statements and
our auditors’ report thereon. The directors are responsible
for the other information. Our opinion on the financial
statements does not cover the other information and,
accordingly, we do not express an audit opinion or,
exceptto the extent otherwise explicitly stated in this
report, any form of assurance thereon.
In connection with our audit of the financial statements,
our responsibility is to read the other information and,
indoing so, consider whether the other information is
materially inconsistent with the financial statements
orour knowledge obtained in the audit, or otherwise
appears to be materially misstated. If we identify
anapparent material inconsistency or material
misstatement, we are required to perform procedures
toconclude whether there is a material misstatement
ofthe financial statements or a material misstatement
ofthe other information. If, based on the work we
haveperformed, we conclude that there is a material
misstatement of thisother information, we are required
to report that fact. We have nothing to report based
onthese responsibilities.
With respect to the Strategic Report and Directors’
Report, we also considered whether the disclosures
required by the UK Companies Act 2006 have
beenincluded.
Based on our work undertaken in the course of the audit,
the Companies Act 2006 requires us also to report certain
opinions and matters as described below.
Strategic report and Directors’ Report
In our opinion, based on the work undertaken in the course
of the audit, the information given in the Strategic Report
and Directors’ Report for the year ended 31 March 2024 is
consistent with the financial statements and has been
prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the
groupand company and their environment obtained
inthecourse of the audit, we did not identify any
materialmisstatements in the Strategic Report
andDirectors’ Report.
Directors’ Remuneration
In our opinion, the part of the Annual Remuneration
Report to be audited has been properly prepared in
accordance with the Companies Act 2006.
Corporate governance statement
The Listing Rules require us to review the directors’
statements in relation to going concern, longer-term
viability and that part of the corporate governance
statement relating to the company’s compliance with
theprovisions of the UK Corporate Governance Code
specified for our review. Our additional responsibilities
with respect to the corporate governance statement
asother information are described in the Reporting
onotherinformation section of this report.
Based on the work undertaken as part of our audit,
wehave concluded that each of the following elements
of the corporate governance statement is materially
consistent with the financial statements and our
knowledge obtained during the audit, and we have
nothing material to add or draw attention to in
relationto:
• The directors’ confirmation that they have carried out a
robust assessment of the emerging and principal risks;
• The disclosures in the Annual Report that describe those
principal risks, what procedures are in place to identify
emerging risks and an explanation of how these are
being managed or mitigated;
• The directors’ statement in the financial statements
about whether they considered it appropriate to
adoptthe going concern basis of accounting in
preparing them, and their identification of any
materialuncertainties to the group’s and company’s
ability to continue to do so over a period of at least
twelve months from the date of approval of the
financial statements;
190 Halma plc | Annual Report and Accounts 2024
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF HALMA PLC continued
• The directors’ explanation as to their assessment
ofthegroup’s and company’s prospects, the period
thisassessment covers and why the period is
appropriate; and
• The directors’ statement as to whether they have a
reasonable expectation that the company will be able
to continue in operation and meet its liabilities as they
fall due over the period of its assessment, including any
related disclosures drawing attention to any necessary
qualifications or assumptions.
Our review of the directors’ statement regarding the
longer-term viability of the group and company was
substantially less in scope than an audit and only
consisted of making inquiries and considering the
directors’ process supporting their statement; checking
that the statement is in alignment with the relevant
provisions of the UK Corporate Governance Code; and
considering whether the statement is consistent with
thefinancial statements and our knowledge and
understanding of the group and company and their
environment obtained in the course of the audit.
In addition, based on the work undertaken as part of
ouraudit, we have concluded that each of the following
elements of the corporate governance statement is
materially consistent with the financial statements
andour knowledge obtained during the audit:
• The directors’ statement that they consider the
AnnualReport, taken as a whole, is fair, balanced
andunderstandable, and provides the information
necessary for the members to assess the group’s
andcompany’s position, performance, business
modelandstrategy;
• The section of the Annual Report that describes
thereview of effectiveness of risk management
andinternal control systems; and
• The section of the Annual Report describing the
workofthe Audit Committee.
We have nothing to report in respect of our responsibility
to report when the directors’ statement relating to the
company’s compliance with the Code does not properly
disclose a departure from a relevant provision of the
Codespecified under the Listing Rules for review by
theauditors.
Responsibilities for the financial statements
andthe audit
Responsibilities of the directors for the
financialstatements
As explained more fully in the Statement of Directors’
responsibilities in respect of the financial statements,
thedirectors are responsible for the preparation of the
financial statements in accordance with the applicable
framework and for being satisfied that they give a true
and fair view. The directors are also responsible for such
internal control as they determine is necessary to enable
the preparation of financial statements that are free
from material misstatement, whether due to fraud
orerror.
In preparing the financial statements, the directors are
responsible for assessing the group’s and the company’s
ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using
the going concern basis of accounting unless the directors
either intend to liquidate the group or the company or to
cease operations, or have no realistic alternative but to
do so.
Auditors’ responsibilities for the audit of the
financial statements
Our objectives are to obtain reasonable assurance
aboutwhether the financial statements as a whole
arefree from material misstatement, whether due
tofraud or error, and to issue an auditors’ report that
includes ouropinion. Reasonable assurance is a high
levelof assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always
detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate,
they could reasonably be expected to influence the
economic decisions of users taken on the basis of
thesefinancial statements.
Halma plc | Annual Report and Accounts 2024 191
Governance Report Other InformationStrategic Report
Financial Statements
Irregularities, including fraud, are instances of non-
compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined
above,to detect material misstatements in respect of
irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities,
including fraud, is detailed below.
Based on our understanding of the group and industry,
we identified that the principal risks of non-compliance
with laws and regulations related to Employment
regulation, Health and safety regulation, Data Protection
regulations, Task Force on Climate-Related Financial
Disclosures and Streamlined Energy and Carbon
Reporting (SECR), and we considered the extent to which
non-compliance might have a material effect on the
financial statements. We also considered those laws and
regulations that have adirect impact on the financial
statements such as TheListing Rules, applicable tax
legislation, Pensions legislation, The UK Corporate
Governance Code 2018 andCompanies Act 2006. We
evaluated management’s incentives and opportunities
for fraudulent manipulation of the financial statements
(including the risk of override of controls), and determined
that the principal risks were related to posting
inappropriate journal entries, either inthe underlying
books and records or as part of the consolidation process,
and management bias in accounting estimates and
judgements. The group engagement team shared this
risk assessment with thecomponent auditors so that
they could include appropriate audit procedures in
response to such risks in their work. Audit procedures
performed by the group engagement team and/or
component auditors included:
• Discussions with management and the Group’s
legalteam, including consideration of known or
suspected instances of non-compliance with laws
andregulations and fraud;
• Review of selected component auditors’
workingpapers;
• Challenging management’s significant accounting
judgements and estimates that involve considering
future events that are inherently uncertain or that
maybe subject to management bias. In particular,
wefocused our work on impairment of goodwill and
acquired intangible assets, valuation of acquired
intangible assets, defined benefit pension liabilities
andcontingent consideration;
• Identifying and testing journal entries, in particular any
journal entries posted with unusual account
combinations; and
• Testing all material consolidation adjustments to ensure
these were appropriate in nature and magnitude.
There are inherent limitations in the audit procedures
described above. We are less likely to become aware of
instances of non-compliance with laws and regulations
that are not closely related to events and transactions
reflected in the financial statements. Also, the risk of not
detecting a material misstatement due to fraud is higher
than the risk of not detecting one resulting from error, as
fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or
through collusion.
Our audit testing might include testing complete
populations of certain transactions and balances, possibly
using data auditing techniques. However, it typically
involves selecting a limited number of items for testing,
rather than testing complete populations. We will often
seek to target particular items for testing based on their
size or risk characteristics. In other cases, we will use audit
sampling to enable us to draw a conclusion about the
population from which the sample is selected.
A further description of our responsibilities for the audit of
the financial statements is located on the FRC’s website
at: www.frc.org.uk/auditorsresponsibilities. This
description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for
and only for the company’s members as a body in
accordance with Chapter 3 of Part 16 of the Companies
Act 2006 and for no other purpose. We do not, in giving
these opinions, accept or assume responsibility for any
other purpose or to any other person to whom this report
is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
192 Halma plc | Annual Report and Accounts 2024
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF HALMA PLC continued
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report
to you if, in our opinion:
• we have not obtained all the information and
explanations we require for our audit; or
• adequate accounting records have not been kept by
the company, or returns adequate for our audit have
not been received from branches not visited by us; or
• certain disclosures of directors’ remuneration specified
by law are not made; or
• the company financial statements and the part of the
Annual Remuneration Report to be audited are not in
agreement with the accounting records and returns.
We have no exceptions to report arising from this
responsibility.
Appointment
Following the recommendation of the Audit Committee,
we were appointed by the members on 20 July 2017 to
audit the financial statements for the year ended
31 March 2018 and subsequent financial periods. The
period of total uninterrupted engagement is 7 years,
covering the years ended 31 March 2018 to 31 March 2024.
Other matter
The company is required by the Financial Conduct
Authority Disclosure Guidance and Transparency Rules to
include these financial statements in an annual financial
report prepared under the structured digital format
required by DTR 4.1.15R – 4.1.18R and filed on the National
Storage Mechanism of the Financial Conduct Authority.
This auditors’ report provides no assurance over whether
the structured digital format annual financial report has
been prepared in accordance with those requirements.
Christopher Richmond (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
13 June 2024
Halma plc | Annual Report and Accounts 2024 193
Governance Report Other InformationStrategic Report
Financial Statements

|  |  |  | Year ended 31 March 2024 |  | Year ended 31 March 2023 |
|  |  | Adjustments* |  |  | Adjustments* |
|  | Adjusted* | (note 1) | Total | Adjusted* | (note 1) | Total
| Notes | £m | £m | £m | £m | £m | £m
Continuing operations |  |  |  |  |  |  |
Revenue | 1 | 2,034.1 | – | 2,034.1 | 1,852.8 | – | 1,852.8
Operating profit |  | 424.3 | (56.6) | 367.7 | 378.2 | (69.8) | 308.4
Share of loss of associate | 14 | (0.3) | – | (0.3) | – | – | –
Profit on disposal of operations | 30 | – | 0.5 | 0.5 | – | – | –
Profit before interest and taxation |  | 424.0 | (56.1) | 367.9 | 378.2 | (69.8) | 308.4
Finance income | 4 | 3.1 | – | 3.1 | 1.8 | – | 1.8
Finance expense | 5 | (30.7) | – | (30.7) | (18.7) | – | (18.7)
Profit before taxation | 6 | 396.4 | (56.1) | 340.3 | 361.3 | (69.8) | 291.5
Taxation | 9 | (85.4) | 13.9 | (71.5) | (72.9) | 15.7 | (57.2)
Profit for the year | 1 | 311.0 | (42.2) | 268.8 | 288.4 | (54.1) | 234.3
Attributable to: |  |  |  |  |  |  |
Owners of the parent |  |  |  | 268.8 |  |  | 234.5
Non–controlling interests |  |  |  | – |  |  | (0.2)
Earnings per share | 2 |  |  |  |  |  |
From continuing operations |  |  |  |  |  |  |
Basic |  | 82.40p |  | 71.23p | 76.34p |  | 62.04p
Diluted |  |  |  | 70.96p |  |  | 61.86p
Dividends in respect of the year | 10 |  |  |  |  |  |
Paid and proposed (£m) |  |  |  | 81.5 |  |  | 76.3
Paid and proposed per share |  |  |  | 21.61p |  |  | 20.20p

* Adjustments include where applicable the amortisation and impairment of acquired intangible assets; acquisition items; significant restructuring costs and profit or
loss on disposal of operations; and the associated taxation thereon. Note 3 provides more information on alternative performance measures.
194 Halma plc | Annual Report and Accounts 2024
CONSOLIDATED INCOME STATEMENT

|  | Year ended | Year ended
|  | 31 March | 31 March
|  | 2024 | 2023
| Notes | £m | £m
Profit for the year |  | 268.8 | 234.3
Items that will not be reclassified subsequently to the Consolidated Income Statement: |  |  |
Actuarial losses on defined benefit pension plans | 29 | (12.0) | (8.8)
Tax relating to components of other comprehensive income that will not be reclassified | 9 | 3.0 | 1.2
Unrealised (losses)/gains in the fair value of equity investments at fair value through other comprehensive income | 14 | (1.2) | 6.1
Items that may be reclassified subsequently to the Consolidated Income Statement: |  |  |
Effective portion of (losses)/gains in fair value of cash flow hedges | 27 | (2.1) | 1.3
Deferred tax in respect of cash flow hedges accounted for in the hedging reserve | 9 | 0.2 | (0.3)
Exchange (losses)/gains on translation of foreign operations and net investment hedge |  | (36.0) | 45.1
Other comprehensive (expense)/income for the year |  | (48.1) | 44.6
Total comprehensive income for the year |  | 220.7 | 278.9
Attributable to Owners of the parent |  | 220.7 | 279.2
Non‑controlling interests |  | – | (0.3)

The exchange losses of £36 .0m (2023: gains of £4 5. 1m) includes gains of £1 3 .2m (2023: losses of £7 .4m) which relate to net investment
hedges as described in note 27.
Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 195
Strategic Report
Financial Statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE

|  | 31 March | 31 March
|  | 2024 | 2023
| Notes | £m | £m
Non‑current assets |  |  |
Goodwill | 11 | 1,211.0 | 1,120.5
Other intangible assets | 12 | 569.0 | 472.3
Property, plant and equipment | 13 | 236.8 | 222.9
Interest in associates and other investments | 14 | 19.8 | 21.0
Retirement benefit asset | 29 | 32.0 | 38.4
Tax receivable | 31 | 14.7 | 14.7
Deferred tax asset | 22 | 4.9 | 3.0
|  | 2,088.2 | 1,892.8
Current assets |  |  |
Inventories | 15 | 304.8 | 312.4
Trade and other receivables | 16 | 460.9 | 410.7
Tax receivable |  | 2.6 | 1.5
Cash and bank balances |  | 142.7 | 169.5
Derivative financial instruments | 27 | 0.7 | 1.5
|  | 911.7 | 895.6
Total assets |  | 2,999.9 | 2,788.4
Current liabilities |  |  |
Trade and other payables | 17 | 296.5 | 280.7
Borrowings | 19 | 0.3 | 1.0
Lease liabilities | 28 | 19.5 | 19.2
Provisions | 20 | 35.0 | 21.0
Tax liabilities |  | 18.2 | 18.4
Derivative financial instruments | 27 | 2.6 | 0.9
|  | 372.1 | 341.2
Net current assets |  | 539.6 | 554.4
Non‑current liabilities |  |  |
Borrowings | 19 | 711.9 | 677.3
Lease liabilities | 28 | 64.2 | 68.7
Retirement benefit obligations | 29 | 1.1 | 0.5
Trade and other payables | 21 | 23.9 | 21.9
Provisions | 20 | 10.7 | 9.7
Deferred tax liabilities | 22 | 79.5 | 70.2
|  | 891.3 | 848.3
Total liabilities |  | 1,263.4 | 1,189.5
Net assets |  | 1,736.5 | 1,598.9
Equity |  |  |
Share capital | 23 | 38.0 | 38.0
Share premium account |  | 23.6 | 23.6
Own shares |  | (58.0) | (46.1)
Capital redemption reserve |  | 0.2 | 0.2
Hedging reserve |  | (1.3) | 0.6
Translation reserve |  | 126.3 | 162.3
Other reserves |  | 3.2 | 4.4
Retained earnings |  | 1,604.5 | 1,415.8
Equity attributable to owners of the parent |  | 1,736.5 | 1,598.8
Non‑controlling interests |  | – | 0.1
Total equity |  | 1,736.5 | 1,598.9

The financial statements of Halma plc, company number 00040932, were approved by the Board of Directors on 13 June 2024.
Marc Ronchetti Steve Gunning
Director Director
196 Halma plc | Annual Report and Accounts 2024
CONSOLIDATED BALANCE SHEET

|  | Share |  | Capital |  |  |  |  | Non‑ |
| Share | premium | Own | redemption | Hedging | Translation | Other | Retained | controlling |
| capital | account | shares | reserve | reserve | reserve | reserves | earnings | interest | Total
| £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
At 1 April 2023 | 38.0 | 23.6 | (46.1) | 0.2 | 0.6 | 162.3 | 4.4 | 1,415.8 | 0.1 | 1,598.9
Profit for the year | – | – | – | – | – | – | – | 268.8 | – | 268.8
Other comprehensive income and expense | – | – | – | – | (1.9) | (36.0) | (1.2) | (9.0) | – | (48.1)
Total comprehensive income and expense | – | – | – | – | (1.9) | (36.0) | (1.2) | 259.8 | – | 220.7
Dividends paid | – | – | – | – | – | – | – | (78.2) | – | (78.2)
Share‑based payment charge | – | – | – | – | – | – | – | 21.4 | – | 21.4
Deferred tax on share‑based |  |  |  |  |  |  |  |  |  |
payment transactions | – | – | – | – | – | – | – | 0.6 | – | 0.6
Excess tax deductions related |  |  |  |  |  |  |  |  |  |
to share‑based payments on vested awards | – | – | – | – | – | – | – | (0.1) | – | (0.1)
Purchase of own shares | – | – | (19.7) | – | – | – | – | (1.4) | – | (21.1)
Performance share plan |  |  |  |  |  |  |  |  |  |
awards vested | – | – | 7.8 | – | – | – | – | (13.2) | – | (5.4)
Non‑controlling interest |  |  |  |  |  |  |  |  |  |
disposed | – | – | – | – | – | – | – | (0.2) | (0.1) | (0.3)
At 31 March 2024 | 38.0 | 23.6 | (58.0) | 0.2 | (1.3) | 126.3 | 3.2 | 1,604.5 | – | 1,736.5

|  | Share |  | Capital |  |  |  |  | Non‑ |
| Share | premium | Own | redemption | Hedging | Translation | Other | Retained | controlling |
| capital | account | shares | reserve | reserve | reserve | reserves | earnings | interest | Total
| £m | £m | £m | £m | £m | £m | £m | £m | £m | £m
At 1 April 2022 | 38.0 | 23.6 | (30.7) | 0.2 | (0.4) | 117.1 | (1.7) | 1,256.6 | 0.4 | 1,403.1
Profit for the year | – | – | – | – | – | – | – | 234.5 | (0.2) | 234.3
Other comprehensive income and expense | – | – | – | – | 1.0 | 45.2 | 6.1 | (7.6) | (0.1) | 44.6
Total comprehensive income and expense | – | – | – | – | 1.0 | 45.2 | 6.1 | 226.9 | (0.3) | 278.9
Dividends paid | – | – | – | – | – | – | – | (73.3) | – | (73.3)
Share‑based payment charge | – | – | – | – | – | – | – | 17.7 | – | 17.7
Deferred tax on share‑based |  |  |  |  |  |  |  |  |  |
payment transactions | – | – | – | – | – | – | – | (0.7) | – | (0.7)
Excess tax deductions related |  |  |  |  |  |  |  |  |  |
to share‑based payments on vested awards | – | – | – | – | – | – | – | – | – | –
Purchase of own shares | – | – | (22.3) | – | – | – | – | – | – | (22.3)
Performance share plan awards |  |  |  |  |  |  |  |  |  |
vested | – | – | 6.9 | – | – | – | – | (11.4) | – | (4.5)
At 31 March 2023 | 38.0 | 23.6 | (46.1) | 0.2 | 0.6 | 162.3 | 4.4 | 1,415.8 | 0.1 | 1,598.9

Own shares are ordinary shares in Halma plc purchased by the Company and held to fulfil the Company’s obligations under the Group’s
share plans.
The market value of own shares was £58.2m (2023: £4 2.4m).
The Capital redemption reserve was created on repurchase and cancellation of the Company’s own shares. The Hedging reserve is used
torecord the portion of the cumulative net change in fair value of cash flow hedging instruments net of tax that are deemed to be an
effective hedge.
The Translation reserve is used to record the difference arising from the retranslation of the financial statements of foreign operations,
offset by net investment hedges with a carrying value of £2 0. 7 m (2023: £33 . 9m). The Other reserves represent the cumulative fair value
adjustments on equity instruments held at fair value through other comprehensive income.
Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 197
Strategic Report
Financial Statements
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

|  | Year ended | Year ended
|  | 31 March | 31 March
|  | 2024 | 2023
| Notes | £m | £m
Net cash inflow from operating activities | 26 | 385.0 | 258.0
Cash flows from investing activities |  |  |
Purchase of property, plant and equipment – owned assets | 13 | (32.8) | (29.0)
Purchase of computer software | 12 | (2.0) | (0.8)
Purchase of other intangibles | 12 | (0.4) | (0.3)
Proceeds from sale of property, plant and equipment and capitalised development costs |  | 1.6 | 3.1
Development costs capitalised | 12 | (16.4) | (15.8)
Interest received |  | 1.2 | 0.7
Acquisition of businesses, net of cash acquired | 25 | (238.8) | (320.1)
Disposal of business, net of cash disposed | 30 | 1.6 | –
Purchase of equity investments | 14 | (0.3) | (6.7)
Net cash used in investing activities |  | (286.3) | (368.9)
Cash flows from financing activities |  |  |
Dividends paid |  | (78.2) | (73.3)
Purchase of shares for settlement of employee share arrangements |  | (21.1) | (22.3)
Interest paid |  | (29.6) | (17.5)
Loan arrangement fees |  | (0.3) | (4.1)
Proceeds from bank borrowings | 26 | 513.2 | 451.8
Repayment of bank borrowings | 26 | (465.7) | (394.2)
Repayment of acquired debt on acquisition | 26 | (17.1) | (65.1)
Drawdown of loan notes | 26 | – | 338.1
Repayment of loan notes | 26 | – | (74.4)
Repayment of lease liabilities, net of interest |  | (20.9) | (18.0)
Net cash (used in)/from financing activities |  | (119.7) | 121.0
(Decrease)/increase in cash and cash equivalents | 26 | (21.0) | 10.1
Cash and cash equivalents brought forward |  | 168.5 | 156.7
Exchange adjustments |  | (5.1) | 1.7
Cash and cash equivalents carried forward | 26 | 142.4 | 168.5

Notes
Year ended
31 March
2024
£m
Year ended
31 March
2023
£m
Reconciliation of net cash flow to movement in net debt
(Decrease)/increase in cash and cash equivalents (21.0) 10.1
Net cash inflow from bank borrowings and loan notes 26 (30.4) (256.1)
Net debt acquired 26 (17.1) (65.1)
Lease liabilities additions and accretion of interest (18.3) (24.9)
Lease liabilities acquired (3.2) (9.3)
Lease liabilities and interest repaid 28 24.1 20.9
Exchange adjustments 9.4 2.5
Increase in net debt (56.5) (321.9)
Net debt brought forward (596.7) (274.8)
Net debt carried forward (653.2) (596.7)
198 Halma plc | Annual Report and Accounts 2024
CONSOLIDATED CASH FLOW STATEMENT
Basis of presentation
The consolidated financial statements of Halma plc are prepared in accordance with UK‑adopted International Accounting Standards
and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards.
The principal Group accounting policies are explained below and have been applied consistently throughout the years ended 31 March 2024
and 31 March 2023, other than those noted below.
The Group accounts have been prepared under the historical cost convention, except as described below under the headings
‘Derivative financial instruments and hedge accounting’, ‘Financial assets at fair value through other comprehensive income (FVOCI)’,
‘Pensions’ and ‘Business combinations and goodwill’.
New Standards and Interpretations applied for the first time in the year ended 31 March 2024
The following standards, with an effective date of 1 January 2023, have been adopted without any significant impact on the amounts
reported in these financial statements:
• IFRS 17 Insurance Contracts
• Definition of Accounting Estimates – Amendments to IAS 8
• Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2
• Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12
• Lease Liability in a Sale and Leaseback – Amendments to IFRS 16
• Classification of Liabilities as Current or Non‑current and Non‑current Liabilities with Covenants – Amendments to IAS 1
• Amendments to IAS 12 International Tax Reform Pillar Two Model Rule
New Standards and Interpretations not yet applied
At the date of authorisation of these financial statements, the following Standards and Interpretations that are potentially relevant to
the Group, and which have not been applied in these financial statements, were in issue but not yet effective:
• Amendment to IAS 1 – Non‑current liabilities with covenants
• Amendment to IAS 16 – Leases on sale and leaseback
• Amendment to IAS 7 and IFRS 7 – Supplier finance
• Amendment to IAS 21 – Lack of Exchangeability (not yet endorsed)
• IFRS 18 – Presentation and disclosures in financial statements (not yet endorsed)
The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the
financial statements of the Group except for IFRS 18 which has an effective date of 1 January 2027.
Use of Alternative performance measures (APMs)
In the reporting of the financial information, the Group uses certain measures that are not required under IFRS, the Generally Accepted
Accounting Principles (GAAP) under which the Group reports. The Directors believe that Return on Total Invested Capital (ROTIC), Return
on Capital Employed (ROCE), Organic growth at constant currency, Adjusted EBIT/EBITDA, Adjusted profit and earnings per share measures,
net debt, cash conversion and Adjusted operating cash flow provide additional and more consistent measures of underlying performance
to shareholders by removing items that are not closely related to the Group’s trading or operating cash flows. These and other alternative
performance measures are used by the Directors for internal performance analysis and incentive compensation arrangements for employees.
The terms ROTIC, ROCE, organic growth at constant currency and ‘adjusted’ are not defined terms under IFRS and may therefore not be
comparable with similarly titled measures reported by other companies. They are not intended to be a substitute for, or superior to,
GAAP measures.
The principal items which are included in adjusting items are set out below in the Group’s accounting policy and in note 1. The term
‘adjusted’ refers to the relevant measure being reported for continuing operations excluding adjusting items.
Definitions of the Group’s material alternative performance measures along with reconciliation to their IFRS equivalent measure are
included in note 3.
Key accounting policies
Below we set out our key accounting policies, with a list of all other accounting policies thereafter.
Going concern
The Group’s business activities, together with the main trends and factors likely to affect its future development, performance and position,
and the financial position of the Group as at 31 March 2024, its cash flows, liquidity position and borrowing facilities are set out in the
Strategic Report. In addition, note 27 contains further information concerning the security, currency, interest rates and maturity of the
Group’s borrowings.
The financial statements have been prepared on a going concern basis. In adopting the going concern basis the Directors have
considered all of the above factors, including potential scenarios and its principal risks set out on pages 108 to 117. Under the potential
scenarios considered, which includes a severe but plausible downside scenario, the Group remains within its debt facilities and the
attached financial covenants for the foreseeable future and the Directors therefore believe, at the time of approving the financial
statements, that the Company is well placed to manage its business risks successfully and remains a going concern. The key facts
and assumptions in reaching this determination are summarised below.
Our financial position remains robust with committed facilities at the balance sheet date totalling approximately £927m, including a
£550m Revolving Credit Facility (RCF). The undrawn committed facilities as at 31 March 2024 amounted to £215m. In May 2024, the last
extension option for the RCF was exercised, resulting in a maturity date of May 2029. Since the year end, the Group also entered into a
new Note Purchase Agreement which provided access to loan notes totalling £336m. The financial covenants across the facilities are for
leverage (net debt/adjusted EBITDA) of not more than three and a half times and for adjusted interest cover of not less than four times.
Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 199
Strategic Report
Financial Statements
ACCOUNTING POLICIES
Key accounting policies continued
Our base case scenario has been prepared using forecasts from each of our companies as well as expectations of cash outflows on
acquisitions. In addition, a severe but plausible downside scenario has been modelled showing a decline in trading for the year ending
31 March 2025, as well as other potential adverse impacts such as a one‑off legal event and deterioration in working capital position.
The reduction in trading could be caused by another pandemic or other geopolitical crises, or continued macroeconomic volatility leading
to further inflation and interest rate increases. In mitigating the impacts of the downside scenario there are actions that can be taken
which are entirely discretionary to the business such as further reducing acquisition spend and decreasing the dividend growth rates.
In addition, the Group has demonstrated strong resilience and flexibility to manage its overheads and adapt the supply chain during
recent global economic uncertainty.
Neither the base case nor severe but plausible downside scenarios result in a breach of the Group’s available debt facilities or the attached
covenants and, accordingly, the Directors believe there is no material uncertainty in the use of the going concern assumption and, therefore,
deem it appropriate to continue to adopt the going concern basis of accounting for at least the next 12‑month period.
Business combinations and goodwill
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is
transferred to the Group. The Group measures goodwill at the acquisition date as:
• the fair value of the consideration transferred; plus
• the recognised amount of any non‑controlling interests in the acquiree measured at the proportionate share of the value of net
identifiable assets acquired; plus
• the fair value of the existing equity interest in the acquiree; less
• the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities, are expensed as incurred.
Any contingent consideration payable may be accounted for as either:
a) Consideration transferred, which is recognised at fair value at the acquisition date. If the contingent purchase consideration is
classified as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair
value of the contingent purchase consideration are recognised in the Consolidated Income Statement; or
b) Remuneration, which is expensed in the Consolidated Income Statement over the associated period of service. An indicator of such
treatment includes when payments to employees of the acquired company are contingent on a post‑acquisition event, but may be
automatically forfeited on termination of employment.
For acquisitions between 4 April 2004 (the date from which the financial statements were reported under IFRS) and 2 April 2010, goodwill
represents the difference between the cost of the acquisition, including acquisition costs and the fair value of the net identifiable assets
acquired. Goodwill has an indefinite expected useful life and is not amortised, but is tested annually for impairment.
Goodwill is recognised as an intangible asset in the Consolidated Balance Sheet. Goodwill therefore includes non‑identified intangible
assets including business processes, buyer‑specific synergies, know‑how and workforce‑related industry‑specific knowledge and technical
skills. Negative goodwill arising on acquisitions would be recognised directly in the Consolidated Income Statement.
On closure or disposal of an acquired business, goodwill would be taken into account in determining the profit or loss on closure or disposal.
As permitted by IFRS 1, the Group elected not to apply IFRS 3 ‘Business Combinations’ to acquisitions prior to 4 April 2004 in its
consolidated accounts. As a result, the net book value of goodwill recognised as an intangible asset under UK GAAP at 3 April 2004 was
brought forward unadjusted as the cost of goodwill recognised under IFRS at 4 April 2004 subject to impairment testing on that date; and
goodwill that was written off to reserves prior to 28 March 1998 under UK GAAP will not be taken into account in determining the profit or
loss on disposal or closure of previously acquired businesses from 4 April 2004 onwards.
Payments for contingent consideration are classified as investing activities within the Consolidated Cash Flow Statement, except for
amounts paid in excess of that estimated in the acquisition balance sheets which are recognised in the net cash inflow from operating
activities in the year together with movements in contingent consideration provisions charged/credited to the Consolidated Income
Statement which is included as a reconciling item between operating profit and cash inflow from operating activities.
Intangible assets
(a) Acquired intangible assets
An intangible resource acquired with a subsidiary undertaking is recognised as an intangible asset if it is separable from the acquired
business or arises from contractual or legal rights, is expected to generate future economic benefits and its fair value can be measured
reliably. Acquired intangible assets, comprising trademarks, technology and know‑how and customer relationships, are amortised
through the Consolidated Income Statement on a straight‑line basis over their estimated economic lives of between three and 25 years.
The carrying value of intangible assets is reviewed for impairment if events or changes in circumstances indicate the carrying value may
not be recoverable.
(b) Product development costs
Research expenditure is charged to the Consolidated Income Statement in the financial year in which it is incurred.
Development expenditure is expensed in the financial year in which it is incurred, unless it relates to the development of a new or
substantially improved product, is incurred after the technical feasibility and economic viability of the product has been proven and the
decision to complete the development has been taken, and can be measured reliably. Such expenditure, meeting the recognition criteria
of IAS 38 ‘Intangible Assets’, is capitalised as an intangible asset in the Consolidated Balance Sheet at cost and is amortised through the
Consolidated Income Statement on a straight‑line basis over its estimated economic life of three years.
200 Halma plc | Annual Report and Accounts 2024
ACCOUNTING POLICIES continued
Key accounting policies continued
Pensions
The Group makes contributions to various pension plans.
For defined benefit plans, the asset or liability recorded in the Consolidated Balance Sheet is the difference between the fair value of the
plan’s assets and the present value of the defined obligation at that date. The defined benefit obligation is calculated separately for each
plan on an annual basis by independent actuaries using the projected unit credit method.
Actuarial gains and losses are recognised in full in the period in which they occur and are taken to other comprehensive income.
Current and past service costs, along with the impact of any settlements or curtailments, are charged to the Consolidated Income
Statement. The net interest expense on pension plans’ liabilities and the expected return on the plans’ assets is recognised within finance
expense in the Consolidated Income Statement.
Contributions to defined contribution plans are charged to the Consolidated Income Statement in the period the expense relates to.
Impairment of trade and other receivables
The Group assesses on a forward‑looking basis the expected credit losses associated with its trade and other receivables carried at
amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
The Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised from initial
recognition of the receivables. In order to estimate the expected lifetime losses, the Group categorises its customers into groups with
similar risk profiles and determines the historic rates of impairment for each of those categories of customer. The Group then adjusts the
risk profile for each group of customers by using forward looking information, such as the government risk of default for the country in
which those customers are located, and determines an overall probability of impairment for the total trade and other receivables at the
balance sheet date.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of Group accounts in conformity with IFRS requires the Directors to make judgements and estimates that affect the
application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and assumptions are based on
historical experiences and various other factors that are believed to be reasonable under the circumstances, the results of which form the
basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates.
In preparing the Consolidated Financial Statements management has considered the impact of climate change, particularly in the
context of the disclosures included in the Strategic Report and the stated Net Zero ambitions. These considerations did not have a
material impact on the financial reporting judgements and estimates in the current year. Climate change is not expected to have a
significant impact on the Group’s going concern assessment as at March 2024 nor the viability of the Group over the next three years.
The following areas of critical accounting judgement and key estimation uncertainty have been identified as having significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities:
Critical accounting judgements
Goodwill impairment CGU groups
Determining whether goodwill is impaired requires management’s judgement in assessing cash generating unit (CGU) groups to which
goodwill should be allocated. Management allocates a new acquisition to a CGU group based on which one is expected to benefit most
from that business combination. The allocation of goodwill to existing CGU groups is generally straightforward and factual, however over
time as new businesses are acquired and management reporting structures change, management reviews the CGU groups to ensure they
are still appropriate. Further details are provided in note 11. There have been no changes to the CGU groups in the current year.
Recoverability of non‑current taxation assets
In the current year, determining the recoverability of tax assets requires management’s judgement in assessing the amounts paid in
relation to group financing partial exemption applicable to UK controlled foreign companies as a result of the decision by the European
Commission that this constitutes state aid. Management’s assessment is that this represents a contingent liability and that the £14.7m
paid to HM Revenue & Customs (HMRC) in previous years, included within non‑current assets on the Consolidated Balance Sheet, will
ultimately be recovered. Further details are provided in note 31.
Key sources of estimation uncertainty
Contingent consideration changes in estimates
Determining the value of contingent consideration recognised as part of the acquisition of a business requires management to estimate
the expected performance of the acquired business and the amount of contingent consideration that will therefore become payable.
Initial estimates of expected performance are made by the management responsible for completing the acquisition and form a key
component of the financial due diligence that takes place prior to completion. Subsequent measurement of contingent consideration
is based on the Directors’ appraisal of the acquired business’s performance in the post‑acquisition period and the agreement of final
payments. See notes 20 and 27 for details of the changes in estimates made in the year and the sensitivity of contingent consideration
payables to further changes.
Intangible assets
Intangible assets IFRS 3 (revised) ‘Business Combinations’ requires that goodwill arising on the acquisition of subsidiaries is capitalised
and included in intangible assets. IFRS 3 (revised) also requires the identification and valuation of other separable intangible assets at
acquisition. The assumptions involved in valuing these intangible assets require the use of management estimates.
IAS 38 ‘Intangible Assets’ requires that development costs, arising from the application of research findings or other technical
knowledge to a plan or design of a new or substantially improved product, are capitalised, subject to certain criteria being met.
Determining the technical feasibility and estimating the future cash flows generated by the products in development requires the
use of management estimates.
Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 201
Strategic Report
Financial Statements
Critical accounting judgements and key sources of estimation uncertainty continued
The estimates made in relation to both acquired intangible assets and capitalised development costs include identification of relevant
assets, future growth rates, expected inflation rates and the discount rate used. Management also makes estimates of the useful
economic lives of the intangible assets. Management engages third party specialists to assist with the valuation of acquired intangible
assets for significant acquisitions. Depending on the nature of the assets the Group uses different valuation methodologies to arrive at
the fair value including the excess earnings method, the relief from royalty method and the cost savings method. Financial projections are
based on market participants’ expectations and are discounted to their present value using rates of return which reflects the risk of the
investment and the time value of money. Further details on intangible assets are disclosed in note 12.
Goodwill and acquired intangibles impairment future cash flows
The ‘value in use’ calculation used to test for impairment of goodwill and acquired intangibles involves an estimation of the present value
of future cash flows. For annual impairment testing of goodwill, the future cash flows of the CGU Group are based on annual budgets and
forecasts of each relevant CGU, as approved by the Board, to which management’s expectation of market‑share and long‑term growth
rates are applied. The present value is then calculated based on management’s estimate of future discount and growth rates. The Board
reviews these key assumptions (operating assumptions, long‑term growth rates, and discount rates) and the sensitivity analysis around
these. Management believes that there is no reasonably possible change in any of the key assumptions that would cause the carrying
value of any CGU group to exceed its recoverable amount. Further details are provided in note 11.
Acquired intangibles are assessed each reporting period for any indicators of impairment, both qualitative and quantitative, including
as a result of our assessments of climate‑related risks. If there are deemed to be any indicators of impairment a ‘value in use’ calculation
is performed over the remaining useful life of the asset to identify if any impairment is needed. Where required, in calculating the ‘value
in use’, future cash flows are based on annual budgets and forecasts for the relevant business. The present value is then calculated
based on management’s estimate of future discount and growth rates. The Board and management reviews these key assumptions
(operating assumptions, growth rates, and discount rates) and the sensitivity analysis around these.
Defined benefit pension plan liabilities
Determining the value of the future defined benefit asset/obligation requires estimation in respect of the assumptions used to calculate
present values of plan liabilities. The significant assumptions utilised in the calculations are future mortality, discount rate and inflation.
Management determines these assumptions in consultation with an independent actuary. Details of the estimates made in calculating
the defined benefit asset/obligation, including sensitivity analysis, are disclosed in note 29.
Other accounting policies
Basis of consolidation
The Group accounts include the accounts of Halma plc and all of its subsidiary companies made up to 31 March 2024, adjusted to eliminate
intra‑Group transactions, balances, income and expenses. The results of subsidiary companies acquired or disposed are included from the
month of their acquisition or to the month of their disposal.
Segmental reporting
An operating segment is a distinguishable component of the Group that is engaged in business activities from which it may earn revenues
and incur expenses, and whose operating results are reviewed regularly by the Chief Operating Decision Maker (the Group Chief Executive)
to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial
information is available.
Reportable segments are operating segments that either meet the thresholds and conditions set out in IFRS 8 or are considered by the
Board to be appropriately designated as reportable segments. Segment results represent operating profits and include an allocation
of Head Office expenses. Segment results exclude tax and financing items. Segment assets comprise goodwill, other intangible assets,
property, plant and equipment and Right‑of‑Use assets (excluding land and buildings), inventories, trade and other receivables.
Segment liabilities comprise trade and other payables, provisions and other payables. Unallocated items represent land and buildings
(including Right‑of‑Use assets), corporate and deferred taxation balances, defined benefit plan asset/obligation, contingent purchase
consideration, all components of net cash/borrowings, lease liabilities and derivative financial instruments.
The Group has three main operating and reportable segments (Safety, Environmental & Analysis and Healthcare), which are defined
by markets rather than product type. Each segment includes businesses with similar operating and market characteristics and are
consistent with the internal reporting as reviewed by the Group Chief Executive.
Revenue
The Group’s revenue streams are the sale of goods and services in the specialist safety, environmental technologies and health markets.
The revenue streams are disaggregated into three sectors, that serve like markets. Those sectors are Safety, Environmental & Analysis
and Healthcare.
Revenue is recognised at the point of the transfer of control over promised goods or services to customers in an amount that reflects the
amount of consideration specified in a contract with a customer, to which the Group expects to be entitled in exchange for those goods
or services.
It is the Group’s judgement that in the majority of sales there is no contract until such time as the Operating Company satisfies its
performance obligation, at which point the contract becomes the Operating Company’s terms and conditions resulting from the
supplier’s purchase order. Where there are Master Supply Arrangements, these are typically framework agreements and do not
contain clauses that would result in a contract forming under IFRS 15 until a Purchase Order is issued by the customer.
Revenue represents sales, net of estimates for variable consideration, including rights to returns, discounts, and excluding value added
tax and other sales related taxes. The amount of variable consideration is not considered to be material to the Group as a whole. The
transaction price is allocated to each performance obligation on a relative standalone selling price basis.
202 Halma plc | Annual Report and Accounts 2024
ACCOUNTING POLICIES continued
Other accounting policies continued
Performance obligations are unbundled in each contractual arrangement if they are distinct from one another. There is judgement in
identifying distinct performance obligations where the product could be determined to be a system, or where a combination of products
and services are provided together. For the majority of the Group’s activities the performance obligation is judged to be the component
product or service rather than the system or combined products and services. The contract price is allocated to the distinct performance
obligations based on the relative standalone selling prices of the goods or services.
The way in which the Group satisfies its performance obligations varies by business and may be on shipment, delivery, as services are
rendered or on completion of services depending on the nature of product and service and terms of the contract which govern how
control passes to the customer. Revenue is recognised at a point in time or over time as appropriate.
Where the Group offers warranties that are of a service nature, revenue is recognised in relation to these performance obligations over
time as the services are rendered. In our judgement we believe the associated performance obligations accrue evenly across the
contractual term and therefore revenue is recognised on a pro‑rated basis over the length of the service period.
In a small number of instances across the Group, products have been determined to be bespoke in nature, with no alternative use.
Where there is also an enforceable right to payment for work completed, the criteria for recognising revenue over time have been deemed
to have been met. Revenue is recognised on an input basis as work progresses. Progress is measured with reference to the actual cost
incurred as a proportion of the total costs expected to be incurred under the contract. This is not a significant part of the Group’s business
as for the most part, where goods are bespoke in nature, it is the Group’s judgement that the product can be broken down to standard
component parts with little additional cost and therefore has an alternate use, or there is no enforceable right to payment for work
performed. In these cases, the judgement is made that the requirements for recognising revenue over time are not met and revenue
is recognised when control of the finished product passes to the customer.
The Group applies the practical expedient in IFRS 15 (paragraph 63) and does not adjust the promised amount of consideration for
the effects of a significant financing component if the Group expects, at contract inception, that the period between the transfer of
a promised good or service to a customer and when the customer pays for that good or service will be one year or less.
Operating profit
Operating profit is presented net of direct production costs, production overheads, selling costs, distribution costs and administrative
expenditure (see note 6). Operating profit is stated after charging restructuring costs but before the share of results of associates, profit
or loss on disposal of operations, finance income and finance costs.
Adjusting items
When items of income or expense are material and they are relevant to an understanding of the entity’s financial performance, they are
disclosed separately within the financial statements. This provides additional and more consistent measures of underlying performance
to shareholders by removing items that are not closely related to the Group’s trading or operating cash flows. Such adjusting items include
costs or reversals arising from acquisitions or disposals of businesses, including acquisition costs, creation or reversals of provisions related
to changes in estimates for contingent consideration on acquisition, amortisation and impairment of acquired intangible assets, and
other significant one‑off items that may arise.
Deferred government grant income
Government grant income that is linked to capital expenditure is deferred to the Consolidated Balance Sheet and credited to the
Consolidated Income Statement over the life of the related asset. In addition, the Group claims research and development expenditure
credits arising on qualifying expenditure and shows these ‘above the line’ in operating profit. Where the credits arise on expenditure that
is capitalised as part of internally generated capitalised development costs, the income is deferred to the Consolidated Balance Sheet and
credited to the Consolidated Income Statement over the life of the related asset in line with the policy stated above.
Finance income and expenses
The Group recognises interest income or expense using the effective interest rate method. Finance income and finance costs include:
• Interest payable on loans, borrowings and lease obligations
• Net interest charge on pension plan liabilities
• Amortisation of finance costs
• Interest receivable in respect of cash and cash equivalents
• Unwinding of the discount on provisions
• Fair value movements on derivative financial instruments
The Group has classified interest income and expenses within financing activities in the Consolidated Cash Flow Statement.
Taxation
Taxation comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement except to the extent that it relates
to items recognised directly in Total equity, in which case it too is recognised in Total equity. Current tax is the expected tax payable on the
taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, along with any adjustment to
tax payable in respect of previous years. Taxable profit differs from net profit as reported in the Consolidated Income Statement because
it excludes items that are never taxable or deductible.
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes
and the amounts used for taxation purposes and is accounted for using the balance sheet liability method, apart from the following
differences which are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that affect
neither accounting nor taxable profit; and differences relating to investments in subsidiaries to the extent they will probably not reverse in
the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying
amounts of assets and liabilities, using tax rates and laws, which are expected to apply in the year when the liability is settled, or the asset
is realised. Deferred tax assets are only recognised to the extent that recovery is probable.
Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 203
Strategic Report
Financial Statements
Other accounting policies continued
Foreign currencies
The Group presents its accounts in Sterling. Transactions in foreign currencies are recorded at the rate of exchange at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates prevailing
at that date. Non‑monetary assets and liabilities denominated in foreign currencies are measured in terms of historical costs using the
exchange rate at the date of the initial transaction. Any gain or loss arising on monetary assets and liabilities from subsequent exchange
rate movements is included as an exchange gain or loss in the Consolidated Income Statement.
Net assets of overseas subsidiary companies are expressed in Sterling at the rates of exchange ruling at the end of the financial year,
and trading results and cash flows at the average rates of exchange for the financial year. Goodwill arising on the acquisition of a foreign
business is treated as an asset of the foreign entity and is translated at the rate of exchange ruling at the end of the financial year.
Exchange gains or losses arising on these translations are taken to the Translation reserve within Total equity.
In the event that an overseas subsidiary is disposed of or closed, the profit or loss on disposal or closure will be determined after taking
into account the cumulative translation difference held within the Translation reserve attributable to that subsidiary. As permitted by
IFRS 1, the Group has elected to deem the translation to be £nil at 4 April 2004. Accordingly, the profit or loss on disposal or closure of
foreign subsidiaries will not include any currency translation differences which arose before 4 April 2004.
Other intangible assets
(a) Computer software
Computer software that is not integral to an item of property, plant or equipment is recognised separately as an intangible asset and is
amortised through the Consolidated Income Statement on a straight‑line basis from the point at which the asset is ready to use over its
estimated economic life of between three and five years.
Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the
Group are recognised as intangible assets where the following criteria are met:
• it is technically feasible to complete the software so that it will be available for use;
• management intends to complete the software and use or sell it;
• there is an ability to use or sell the software;
• it can be demonstrated how the software will generate probable future economic benefits;
• adequate technical, financial and other resources to complete the development and to use or sell the software are available; and
• the expenditure attributable to the software during its development can be reliably measured.
Where the Group enters into a SaaS cloud computing arrangement to access software, there are limited cases for capitalisation of
attributable implementation costs. If the arrangement contains a lease as defined by IFRS 16, lease accounting rules apply including
capitalisation of directly attributable costs. Alternatively, directly attributable software costs can create an intangible asset if the
software can be controlled by the entity, either through the option to be run on the entity’s or a third‑party’s infrastructure or where
the development of the software creates customised software that the entity has exclusive rights to.
(b) Other intangibles
Other intangibles are amortised through the Consolidated Income Statement on a straight‑line basis over their estimated economic lives
of between three and ten years.
Property, plant and equipment
Property, plant and equipment is stated at historical cost less provisions for accumulated impairment and accumulated depreciation
which, with the exception of freehold land which is not depreciated, is provided on a straight‑line basis over each asset’s estimated
economic life. The principal annual rates used for this purpose are:

Freehold property | 2%
Leasehold buildings and improvements | Shorter of 2% or period of lease
Plant, equipment and vehicles | 8% to 33.3%

Investments in associates
An associate is an entity over which the Group is in a position to exercise significant influence, but not control or joint control, through
participation in the financial and operating policy decisions of the investee. Significant influence is the power to participate in the financial
and operating policy decisions of the investee but without control or joint control over those policies.
The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting.
Investments in associates are carried in the Consolidated Balance Sheet at cost as adjusted by post‑acquisition changes in the Group’s
share of the net assets of the associate, less any impairment in the value of individual investments. Losses of an associate in excess of the
Group’s interest in that associate (which includes any long‑term interests that, in substance, form part of the Group’s net investment in
the associate) are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on
behalf of the associate.
Any excess of the cost of acquisition over the Group’s share of the fair values of the identifiable net assets of the associate at the
date of acquisition is recognised as goodwill. The goodwill is included within the carrying amount of the investment and is assessed
for impairment as part of that investment. Any deficiency of the cost of acquisition below the Group’s share of the fair values of the
identifiable net assets of the associate at the date of acquisition (i.e. discount on acquisition) is credited in profit or loss in the year
of acquisition.
Where a Group company transacts with an associate of the Group, profits and losses are eliminated to the extent of the Group’s interest
in the relevant associate. Losses may provide evidence of an impairment of the asset transferred in which case appropriate provisioning is
made for impairment.
204 Halma plc | Annual Report and Accounts 2024
ACCOUNTING POLICIES continued
Other accounting policies continued
Where the Group disposes of its entire interest in an associate a gain or loss is recognised in the income statement on the difference
between the amount received on the sale of the associate less the carrying value and costs of disposal.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income (FVOCI) comprise equity securities which are not held for trading,
and which the Group has irrevocably elected at initial recognition to recognise as FVOCI. The Group considers this classification relevant
as these are strategic investments.
Financial assets at FVOCI are adjusted to the fair value of the asset at the balance sheet date with any gain or loss being recognised in
other comprehensive income and held as part of other reserves. On disposal any gain or loss is recognised in other comprehensive income
and the cumulative gains or losses are transferred from other reserves to retained earnings.
Impairment of non‑current assets
All non‑current assets are tested for impairment whenever events or circumstances indicate that their carrying value may be impaired.
Additionally, goodwill and capitalised development expenditure relating to a product that is not yet in full production are subject to an
annual impairment test.
An impairment loss is recognised in the Consolidated Income Statement to the extent that an asset’s carrying value exceeds its recoverable
amount, which represents the higher of the asset’s ‘fair value less costs to dispose’ and its ‘value in use’. An asset’s ‘value in use’ represents
the present value of the future cash flows expected to be derived from the asset or from the cash generating unit to which it relates. The
present value is calculated using a pre‑tax discount rate that reflects the current market assessment of the time value of money and the
risks specific to the asset concerned.
Impairment losses recognised in previous periods for an asset other than goodwill are reversed if there has been a change in the estimates
used to determine the asset’s recoverable amount, but only to the extent that the carrying amount of the asset does not exceed its
carrying amount had no impairment loss been recognised in previous periods. Such reversals are recognised in the Consolidated Income
Statement. Impairment losses in respect of goodwill are not reversed.
Inventories
Inventories and work in progress are included at the lower of cost and net realisable value. Cost is calculated either on a ‘first in, first out’
or an average cost basis and includes direct materials and the appropriate proportion of production and other overheads considered by
the Directors to be attributable to bringing the inventories to their location and condition at the year end. Net realisable value represents
the estimated selling price less all estimated costs to complete and costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances, deposits with an initial maturity of less than three months, and bank overdrafts that
are repayable on demand.
Contract assets and liabilities
A contract asset is recognised when the Group’s right to consideration is conditional on something other than the passage of time, for
example the completion of future performance obligations under the terms of the contract with the customer.
In some instances, the Group receives payments from customers based on a billing schedule, as established in the contract, which may
not match with the pattern of performance under the contract. A contract liability is only recognised on non‑cancellable contracts that
provide unconditional rights to payment from the customer for products and services that the Group has not yet completed providing or
that it will provide in the near future. Where performance obligations are satisfied ahead of billing then a contract asset will be recognised.
Contract assets are recognised within Trade and other receivables and are assessed for impairment on a forward‑looking basis using
the expected lifetime losses approach, as required by IFRS 9 (‘Financial Instruments’).
Costs to obtain or fulfil a contract
The incremental costs of obtaining a contract with a customer are capitalised as an asset if the Group expects to recover them.
Costs such as sales commissions may be incurred when the Group enters into a new contract. Costs to obtain or fulfil a contract
are presented in the Consolidated Balance Sheet as assets until the performance obligation to which they relate has been met.
These assets are amortised on a consistent basis with how the related revenue is recognised.
The Group applies the practical expedient in IFRS 15 (paragraph 94) and recognises incremental costs of obtaining a contract as an
expense when incurred if the amortisation period of the asset that the Group would otherwise have recognised is one year or less.
Trade payables
Trade payables are non‑interest bearing and are stated at amortised cost.
Interest bearing loans and borrowings
Interest bearing loans and borrowings are initially recognised in the Consolidated Balance Sheet at fair value less directly attributable
transaction costs and are subsequently measured at amortised cost using the effective interest rate method.
Provisions and contingent liabilities
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that
the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the balance
sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash
flows estimated to settle the present obligation, its carrying amount is the present value of the cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable
is recognised as an asset if it is virtually certain that reimbursement will be received, and the amount of the receivable can be
measured reliably.
Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 205
Strategic Report
Financial Statements
Other accounting policies continued
Contingent liabilities are disclosed where a possible obligation dependent on uncertain future events exists as at the end of the reporting
period or a present obligation for which payment either cannot be measured or is not considered to be probable is noted. Contingent
liabilities are not accrued for and no contingent liability is disclosed where the possibility of payment is considered to be remote.
Derivative financial instruments and hedge accounting
The Group enters into derivative financial instruments to manage its exposure to foreign exchange rate risk using forward exchange
contracts and interest rate risk using interest rate swaps. Further details of derivative financial instruments are disclosed in note 27.
The Group continues to apply the requirements of IAS 39 for hedge accounting.
Derivative financial instruments are classified as fair value through profit and loss (held for trading) unless they are in a designated
hedge relationship.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to
their fair value at each balance sheet date. The resulting gain or loss is recognised in the Consolidated Income Statement, unless the
derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in the Consolidated Income
Statement depends on the nature of the hedge relationship. The Group designates certain derivatives as hedges of highly probable
forecast transactions or hedges of foreign currency risk of firm commitments (cash flow hedges), or hedges of net investments in
foreign operations.
A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair value is recognised as a
financial liability. A derivative is presented as a non‑current asset or a non‑current liability if the remaining maturity of the instrument is
more than 12 months and it is not expected to be realised or settled within 12 months. Other derivatives are presented as current assets
or current liabilities.
Cash flow hedge accounting
The Group designates certain hedging instruments as cash flow hedges.
At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item,
along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of
the hedge and on an ongoing basis, the Group documents whether the hedging instrument has been or is expected to be highly effective
in offsetting changes in fair values or cash flows of the hedged item.
Note 27 sets out details of the fair values of the derivative instruments used for hedging purposes and the movements in the Hedging
reserve in equity.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other
comprehensive income. The gain or loss relating to the ineffective portion as a result of being over hedged is recognised immediately in
the Consolidated Income Statement.
Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to the Consolidated Income
Statement in the periods when the hedged item is recognised in the Consolidated Income Statement. However, when the forecast
transaction that is hedged results in the recognition of a non‑financial asset or a non‑financial liability, the gains and losses previously
accumulated in equity are transferred from equity and included in the initial measurement of the cost of the non‑financial asset or
non‑financial liability.
Hedge accounting is discontinued when the Group revokes the hedging relationship, the hedging instrument expires or is sold,
terminated or exercised, or no longer qualifies for hedge accounting. Any gain or loss recognised in other comprehensive income at
that time is accumulated in equity and is recognised, when the forecast transaction is ultimately recognised, in the Consolidated
Income Statement. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognised
immediately in the Consolidated Income Statement.
Net investment hedge accounting
The Group uses foreign currency denominated borrowings as a hedge against the translation exposure on the Group’s net investment in
overseas companies. Where the hedge is fully effective at hedging, the variability in the net assets of such companies caused by changes
in exchange rates and the changes in value of the borrowings are recognised in the Consolidated Statement of Comprehensive Income
and accumulated in the Translation reserve. The ineffective part of any change in value caused by changes in exchange rates is recognised
in the Consolidated Income Statement.
Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration. Where the Group determines the contract is, or contains
a lease, a right‑of‑use asset and a lease liability is recognised at the lease commencement date.
The lease term is determined from the commencement date of the lease and covers the non‑cancellable term. If the Group has an
extension option, which it considers reasonably certain to exercise, then the lease term will be considered to extend beyond that
non‑cancellable period. If the Group has a termination option, which it considers reasonably certain to exercise, then the lease term
will be considered to be until the point the termination option will take effect. The Group deem that it is not reasonably certain to
exercise an extension option or a termination option with an exercise date past the planning horizon of five years.
The right‑of‑use asset is initially measured at cost, comprising the initial amount of the lease liability plus any initial direct costs incurred
and an estimate of costs to restore the underlying asset, less any lease incentives received. The right‑of‑use asset is subsequently
depreciated using the straight‑line method from the commencement date to the end of the lease term unless the right‑of‑use asset
is deemed to have a useful life shorter than the lease term. The Group has taken the practical expedient to not separate lease and
non‑lease components and so account for both as a single lease component.
The right‑of‑use assets are also subject to impairment testing under IAS 36. Refer to the previous section on Impairment of non‑current
assets for further details.
206 Halma plc | Annual Report and Accounts 2024
ACCOUNTING POLICIES continued
Other accounting policies continued
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the incremental borrowing rate. The lease payments include fixed payments (including in‑substance fixed payments)
less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under
residual value guarantees. Variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual
value guarantees are not material to the Group. The lease payments also include the exercise price of a purchase option reasonably
certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising
the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are
incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. The lease liability is
measured at amortised cost using the effective interest method by increasing the carrying amount to reflect interest on the lease liability
and by reducing the carrying amount to reflect the lease payments made. The lease liability is remeasured when there is a change in
future lease payments arising from a change in an index or a rate or a change in the Group’s assessment of whether it will exercise an
extension or termination option. When the lease liability is remeasured, a corresponding adjustment is made to the right‑of‑use asset.
Payments associated with short‑term leases or low‑value assets are recognised on a straight‑line basis as an expense in the Consolidated
Income Statement. Short‑term leases are leases with a lease term of 12 months or less. Low‑value assets mostly comprise of IT equipment
and small items of office furniture. Lease payments for short‑term leases, low‑value assets and variable lease payments not included in
the measurement of the lease liability are classified as cash flows from operating activities within the Consolidated Cash Flow Statement.
The Group has classified the principal and interest portions of lease payments within financing activities.
Employee share plans
Share‑based incentives are provided to employees under the Group’s share incentive plan, the performance share plan and the executive
share plan.
(a) Share incentive plan
Awards of shares under the share incentive plan are made to qualifying employees depending on salary and service criteria. The shares
awarded under this plan are purchased in the market by the plan’s trustees at the time of the award, and are then held in trust for a
minimum of three years. The costs of this plan are recognised in the Consolidated Income Statement over the three‑year vesting period
of the awards.
(b) Executive share plan
Under the Executive share plan, awards of shares are made to Executive Directors and certain senior employees. Grants under this plan
are in the form of Performance Awards or Deferred Share Awards.
Performance Awards are subject to non‑market‑based vesting criteria, and Deferred Share Awards are subject only to continuing service
of the employee. Share awards are equity‑settled. The fair value of the awards at the date of grant, which is estimated to be equal to
the market value, is charged to the Consolidated Income Statement on a straight‑line basis over the vesting period, with appropriate
adjustments being made during this period to reflect expected and actual forfeitures. The corresponding credit is to Retained earnings
within Total equity. Effective for the year ended 31 March 2022, the share‑based payment reserve, which was previously presented as
Other reserves has been amalgamated with Retained earnings, in the Consolidated Statement of Changes in Equity and the Consolidated
Balance Sheet as permitted by IFRS 2. This resulted in the £13.6m debit in brought forward Other reserves at 1 April 2021 being transferred
to Retained earnings. There is no change in Total equity from this change, nor the amounts charged or credited to the reserves during the
period, which represents a change in presentational accounting policy only.
(c) Cash‑settled
For cash‑settled awards, a liability equal to the portion of the services received is recognised at the current fair value determined at each
balance sheet date.
Dividends
Dividends payable to the Company’s shareholders are recognised as a liability in the period in which the distribution is approved by the
Company’s shareholders.
Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 207
Strategic Report
Financial Statements
1 Segmental analysis and revenue from contracts with customers
Sector analysis and disaggregation of revenue
The Group has three main operating and reportable segments (Safety, Environmental & Analysis and Healthcare), which are defined by
markets rather than product type. Each segment includes businesses with similar operating and market characteristics. These segments
are consistent with the internal reporting as reviewed by the Group Chief Executive.
Nature of goods and services
The following is a description of the principal activities – separated by reportable segments, which are defined by markets rather than
product type – from which the Group generates its revenue.
Further disaggregation of sector revenue by geography and by the pattern of revenue recognition depicts how economic factors affect
the timing and uncertainty of the Group’s revenues.
Safety sector generates revenue by providing products that protect people, assets and infrastructure, enabling safe movement and
enhancing efficiency. The technologies are used in public and commercial spaces and in industrial and logistics operations. Markets
include: Fire Safety Technologies that protect people and assets from fire; Power Safety Technologies that increase the integrity
and safety of electrical systems in a range of industries; Industrial Safety Technologies that protect people and assets in industrial
environments; and Urban Safety Technologies that protect people and assets in urban environments. Products are generally sold
separately, with contracts typically less than one year in length. Warranties are typically of an assurance nature. Revenue is
recognised as control passes on delivery or despatch.
Payment is typically due within 60 days of invoice, except where a retention is held for documentation.
Environmental & Analysis generates revenue by providing products and technologies that monitor the environment, that ensure the
quality and availability of life‑critical resources, and analyse materials in a wide range of applications. Markets include: Optical Analysis
Technologies that provide world‑class optical, optoelectronic and spectral imaging systems that use light to analyse materials in a wide
range of applications; Water Analysis & Treatment Systems to sustainably improve water quality and availability; and Environmental
Monitoring Technologies that detect hazardous gases and analyse air quality, gases and water to monitor the quality of our environment.
Products and services are generally sold separately. Warranties are typically of an assurance nature, but some companies within the
Group offer extended warranties. Depending on the nature of the performance obligation, revenue may be recognised as control
passes on delivery, despatch or as the service is delivered. Contracts are typically less than one year in length, but some companies
have contracts where certain service‑related performance obligations are delivered over a number of years; this can result in contract
liabilities where those performance obligations are invoiced ahead of performance.
Payment is typically due within 60 days of invoice.
Healthcare sector generates revenue by providing products and services that help providers improve the care they deliver and enhance
the quality of patients’ lives. Markets include: Life Sciences technologies and solutions to enable in‑vitro diagnostic systems and accelerate
life‑science discoveries and development; Healthcare Assessment & Analytics components, devices and systems that provide valuable
information and analytics so providers can better understand patient health and make decisions across the continuum of care; and
Therapeutic Solutions Technologies, materials and solutions that enable treatment across key clinical specialties. Products are generally
sold separately, and warranties are typically of an assurance nature. Depending on the nature of the performance obligation, revenue is
recognised as control passes on delivery or despatch or as the service is delivered. Contracts are typically less than one year in length,
but a limited number of companies have contracts where certain service‑related performance obligations are delivered over a number
of years; this can result in contract liabilities where those performance obligations are invoiced ahead of performance.
Payment is typically due within 60 days of invoice.
208 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS
1 Segmental analysis and revenue from contracts with customers continued
Segment revenue disaggregation

|  |  |  |  |  | Year ended 31 March 2024 |
|  |  |  |  |  | Revenue by sector and destination (all continuing operations) |
|  |  |  |  | Africa, |  |
| United States | Mainland | United |  | Near and | Other |
| of America | Europe | Kingdom | Asia Pacific | Middle East | countries | Total
| £m | £m | £m | £m | £m | £m | £m
Safety | 219.4 | 240.2 | 156.8 | 129.8 | 46.4 | 31.2 | 823.8
Environmental & Analysis | 387.8 | 73.1 | 89.7 | 76.0 | 17.5 | 14.3 | 658.4
Healthcare | 288.1 | 106.2 | 48.5 | 68.9 | 14.6 | 26.6 | 552.9
Inter‑segmental sales | – | – | (1.0) | – | – | – | (1.0)
Revenue for the year | 895.3 | 419.5 | 294.0 | 274.7 | 78.5 | 72.1 | 2,034.1

|  |  |  |  |  | Year ended 31 March 2023 |
|  |  |  |  |  | Revenue by sector and destination (all continuing operations) |
|  |  |  |  | Africa, |  |
| United States | Mainland | United |  | Near and | Other |
| of America | Europe | Kingdom | Asia Pacific | Middle East | countries | Total
| £m | £m | £m | £m | £m | £m | £m
Safety | 205.1 | 217.1 | 151.4 | 112.7 | 33.2 | 26.1 | 745.6
Environmental & Analysis | 277.0 | 67.3 | 79.5 | 96.7 | 15.5 | 16.1 | 552.1
Healthcare | 298.8 | 92.0 | 49.2 | 73.0 | 14.9 | 28.5 | 556.4
Inter‑segmental sales | (0.1) | – | (1.2) | – | – | – | (1.3)
Revenue for the year | 780.8 | 376.4 | 278.9 | 282.4 | 63.6 | 70.7 | 1,852.8

Inter‑segmental sales are charged at prevailing market prices and have not been disclosed separately by segment as they are not
considered material. Revenue derived from the rendering of services was £113.3m (2023: £105.4m).

|  | Year ended 31 March 2024 |
|  | Revenue |
| Revenue | recognised |
| recognised | at a point | Total
| over time | in time | Revenue
| £m | £m | £m
Safety | 8.0 | 815.8 | 823.8
Environmental & Analysis | 238.0 | 420.4 | 658.4
Healthcare | 70.4 | 482.5 | 552.9
Inter‑segmental sales | – | (1.0) | (1.0)
Revenue for the year | 316.4 | 1,717.7 | 2,034.1

|  | Year ended 31 March 2023 |
|  | Revenue |
| Revenue | recognised |
| recognised | at a point | Total
| over time | in time | Revenue
| £m | £m | £m
Safety | 7.1 | 738.5 | 745.6
Environmental & Analysis | 121.5 | 430.6 | 552.1
Healthcare | 67.1 | 489.3 | 556.4
Inter‑segmental sales | – | (1.3) | (1.3)
Revenue for the year | 195.7 | 1,657.1 | 1,852.8

Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 209
Strategic Report
Financial Statements
1 Segmental analysis and revenue from contracts with customers continued
Segment revenue disaggregation continued

|  |  |  | Year ended 31 March 2024
| Revenue from |  | Revenue from |
| performance | Revenue | performance |
| obligations | previously | obligations |
| entered into | included as | satisfied in |
| and satisfied | contract | previous | Total
| in the year | liabilities | periods | Revenue
| £m | £m | £m | £m
Safety | 817.8 | 6.0 | – | 823.8
Environmental & Analysis | 649.9 | 8.5 | – | 658.4
Healthcare | 535.5 | 17.3 | 0.1 | 552.9
Inter‑segmental sales | (1.0) | – | – | (1.0)
Revenue for the year | 2,002.2 | 31.8 | 0.1 | 2,034.1

|  |  |  | Year ended 31 March 2023
| Revenue from |  | Revenue from |
| performance | Revenue | performance |
| obligations | previously | obligations |
| entered into | included as | satisfied in |
| and satisfied | contract | previous | Total
| in the year | liabilities | periods | Revenue
| £m | £m | £m | £m
Safety | 741.7 | 3.9 | – | 745.6
Environmental & Analysis | 545.0 | 7.1 | – | 552.1
Healthcare | 542.8 | 13.4 | 0.2 | 556.4
Inter‑segmental sales | (1.3) | – | – | (1.3)
Revenue for the year | 1,828.2 | 24.4 | 0.2 | 1,852.8

The Group has unsatisfied (or partially satisfied) performance obligations at the balance sheet date with an aggregate amount of
transaction price as follows. The time bands represented present the expected timing of when the remaining transaction price will be
recognised as revenue.

|  |  |  | Aggregate transaction price allocated
|  |  |  | to unsatisfied performance obligations
| 31 March |  |  |
| 2024 | Recognised | Recognised | Recognised
| Total | < 1 year | 1‑2 years | > 2 years
| £m | £m | £m | £m
Safety | 14.8 | 5.6 | 3.5 | 5.7
Environmental & Analysis | 18.1 | 8.6 | 3.4 | 6.1
Healthcare | 21.0 | 20.6 | 0.4 | –
Inter‑segmental sales | – | – | – | –
Total | 53.9 | 34.8 | 7.3 | 11.8

|  |  |  | Aggregate transaction price allocated
|  |  |  | to unsatisfied performance obligations
| 31 March |  |  |
| 2023 | Recognised | Recognised | Recognised
| Total | < 1 year | 1‑2 years | > 2 years
| £m | £m | £m | £m
Safety | 19.7 | 9.6 | 2.8 | 7.3
Environmental & Analysis | 16.9 | 8.5 | 3.5 | 4.9
Healthcare | 21.6 | 20.8 | 0.8 | –
Inter‑segmental sales | – | – | – | –
Total | 58.2 | 38.9 | 7.1 | 12.2

210 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
1 Segmental analysis and revenue from contracts with customers continued
Segment results

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Segment profit before allocation of adjustments * |  |
Safety | 191.6 | 152.5
Environmental & Analysis | 147.9 | 134.2
Healthcare | 125.6 | 130.1
| 465.1 | 416.8
Segment profit after allocation of adjustments * |  |
Safety | 170.2 | 123.9
Environmental & Analysis | 138.0 | 121.5
Healthcare | 100.8 | 101.6
Segment profit | 409.0 | 347.0
Central administration costs | (41.1) | (38.6)
Group profit before interest and taxation | 367.9 | 308.4
Net finance expense | (27.6) | (16.9)
Group profit before taxation | 340.3 | 291.5
Taxation | (71.5) | (57.2)
Profit for the year | 268.8 | 234.3

* Adjustments include where applicable the amortisation and impairment of acquired intangible assets; acquisition items; significant restructuring costs; profit or loss
on disposal of operations. Note 3 provides more information on alternative performance measures.
Acquisition transaction costs, adjustments to contingent consideration and release of fair value adjustments to inventory (collectively
‘acquisition items’), amortisation and impairment of acquired intangible assets and profit on disposal of operations are recognised in
the Consolidated Income Statement. Segment profit, before these acquisition items and the other adjustments, is disclosed separately
above as this is the measure reported to the Group Chief Executive for the purpose of allocation of resources and assessment of segment
performance. These adjustments are analysed as follows:

|  |  |  |  |  |  | Year ended 31 March 2024
|  |  |  | Acquisition items |  |  |
|  |  |  |  | Total |  |
| Amortisation of |  |  | Release of | amortisation | Disposal of |
| acquired |  | Adjustments | fair value | charge and | operations and |
| intangible | Transaction | to contingent | adjustments | acquisition | restructuring |
| assets | costs | consideration | to inventory | items | (note 30) | Total
| £m | £m | £m | £m | £m | £m | £m
Safety | (19.5) | (0.9) | – | (1.5) | (21.9) | 0.5 | (21.4)
Environmental & Analysis | (11.6) | (1.3) | 4.0 | (1.0) | (9.9) | – | (9.9)
Healthcare | (18.4) | (2.4) | (0.1) | (3.9) | (24.8) | – | (24.8)
Total Segment & Group | (49.5) | (4.6) | 3.9 | (6.4) | (56.6) | 0.5 | (56.1)

The transaction costs arose mainly on the acquisitions during the year. In Safety, they related to the acquisition of Lazer Safe in the
current year, FirePro in the previous year and MK Test that was purchased in April 2024. In Environmental & Analysis, they related to
the acquisition of Sewertronics, Alpha Instrumatics (Alpha), Visual Imaging Resourcing (VIR) and Ziegler Electronic Devices (ZED). In
Healthcare, they related to the acquisition of TeDan, AprioMed and Rovers in the current year, plus Infinite Leap and Visiometrics in
previous years.
The £3.9m adjustment to contingent consideration comprised a credit of £4.0m in Environmental & Analysis arising from changes in the
estimates of the payables for Sewertronics and Alpha and a £0.1m charge in Healthcare comprised changes in estimates for Spreo and IZI.
The £6.4m release of fair value adjustments to inventory related to WEETECH, Thermocable, FirePro and Lazer Safe in Safety; VIR in
Environmental & Analysis; and IZI, AprioMed, TeDan, Rovers and Alpha in Healthcare. All amounts have been released in relation to IZI,
WEETECH, Thermocable, FirePro, Lazer Safe, VIR and Alpha.
Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 211
Strategic Report
Financial Statements
1 Segmental analysis and revenue from contracts with customers continued
Segment results continued

|  |  |  |  |  |  | Year ended 31 March 2023
|  |  |  | Acquisition items |  |  |
|  |  |  |  | Total |  |
| Amortisation |  |  |  | amortisation |  |
| and impairment |  |  | Release of | and impairment | Disposal of |
| of acquired |  | Adjustments | fair value | charge and | operations and |
| intangible | Transaction | to contingent | adjustments | acquisition | restructuring |
| assets | costs | consideration | to inventory | items | (note 30) | Total
| £m | £m | £m | £m | £m | £m | £m
Safety | (25.1) | (3.1) | – | (0.4) | (28.6) | – | (28.6)
Environmental & Analysis | (11.4) | (0.9) | 0.2 | (0.6) | (12.7) | – | (12.7)
Healthcare | (20.0) | (1.9) | (3.9) | (2.7) | (28.5) | – | (28.5)
Total Segment & Group | (56.5) | (5.9) | (3.7) | (3.7) | (69.8) | – | (69.8)

The transaction costs arose mainly on the acquisitions during the prior year. In Safety, they related to the acquisition of FirePro, WEETECH,
Thermocable and Zonegreen. In Environmental & Analysis, they related to the acquisition of Deep Trekker in the prior year and
Sewertronics that was acquired in May 2023. In Healthcare, they related to the acquisition of IZI in the prior year, and the acquisition
of Visiometrics in a previous year.
The £3.7m adjustment to contingent consideration comprised of a credit of £0.2m in Environmental & Analysis arising from a decrease in
the estimate of the payables for Orca and a debit of £3.9m in Healthcare arising from changes in estimates of the payables for Infinite
Leap, IZI, Meditech, Clayborn Lab and Spreo.
The £3.7m release of fair value adjustments to inventory related to WEETECH and Thermocable in Safety; Deep Trekker and International
Light Technologies in Environmental & Analysis; and IZI in Healthcare. All amounts had been released in relation to International Light
Technologies and Deep Trekker.

|  | Assets |  | Liabilities
| 31 March | 31 March | 31 March | 31 March
Before goodwill, interest in associates and other investments and acquired intangible | 2024 | 2023 | 2024 | 2023
assets are allocated to specific segment assets/liabilities | £m | £m | £m | £m
Safety | 358.7 | 378.1 | 127.4 | 122.8
Environmental & Analysis | 279.3 | 225.8 | 105.3 | 85.5
Healthcare | 253.4 | 258.6 | 83.0 | 91.1
Total segment assets/liabilities excluding goodwill, interest in associates |  |  |  |
and other investments and acquired intangible assets | 891.4 | 862.5 | 315.7 | 299.4
Goodwill | 1,211.0 | 1,120.5 | – | –
Interest in associate and other investments | 19.8 | 21.0 | – | –
Acquired intangible assets | 510.4 | 416.1 | – | –
Total segment assets/liabilities including goodwill, interest in associates |  |  |  |
and other investments and acquired intangible assets | 2,632.6 | 2,420.1 | 315.7 | 299.4

|  | Assets |  | Liabilities
| 31 March | 31 March | 31 March | 31 March
After goodwill, interest in associates and other investments and acquired intangible | 2024 | 2023 | 2024 | 2023
assets are allocated to specific segment assets/liabilities | £m | £m | £m | £m
Safety | 940.3 | 971.3 | 127.4 | 122.8
Environmental & Analysis | 657.1 | 527.3 | 105.3 | 85.5
Healthcare | 1,035.2 | 921.5 | 83.0 | 91.1
Total segment assets/liabilities including goodwill, interest in associates and other investments and acquired intangible assets | 2,632.6 | 2,420.1 | 315.7 | 299.4
Cash and bank balances/borrowings | 142.7 | 169.5 | 712.2 | 678.3
Derivative financial instruments | 0.7 | 1.5 | 2.6 | 0.9
Other unallocated assets/liabilities | 223.9 | 197.3 | 232.9 | 210.9
Total Group | 2,999.9 | 2,788.4 | 1,263.4 | 1,189.5

Segment assets and liabilities, excluding the allocation of goodwill, interest in associate and other investments and acquired intangible
assets, have been disclosed separately above as this is the measure reported to the Group Chief Executive for the purpose of monitoring
segment performance and allocating resources between segments. Other unallocated assets include land and buildings, right‑of‑use
assets, retirement benefit assets, deferred tax assets and other central administration assets. Unallocated liabilities include contingent
purchase consideration, retirement benefit obligations, deferred tax liabilities, lease liabilities and other central administration liabilities.
212 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
1 Segmental analysis and revenue from contracts with customers continued
Other segment information

|  | Additions to |  | Depreciation, amortisation
|  | non‑current assets |  | and impairment
| 31 March | 31 March | 31 March | 31 March
| 2024 | 2023 | 2024 | 2023
| £m | £m | £m | £m
Safety | 50.5 | 225.3 | 35.9 | 39.6
Environmental & Analysis | 115.0 | 48.1 | 21.6 | 19.3
Healthcare | 184.4 | 144.0 | 30.0 | 28.2
Total Segment additions/depreciation, amortisation and impairment | 349.9 | 417.4 | 87.5 | 87.1
Unallocated | 5.5 | 34.4 | 21.1 | 22.8
Total Group | 355.4 | 451.8 | 108.6 | 109.9

Non‑current asset additions comprise acquired and purchased goodwill, other intangible assets, property, plant and equipment, interests
in associates and other investments.
During the year impairment losses of £3.2m were recognised on Property, plant and equipment and other intangible assets, of which
£1.0m was recognised in Safety, £0.3m was recognised in Environmental & Analysis and £1.9m was recognised in Healthcare (2023: £8.4m
comprising £8.0m in Safety, £0.1m in Environmental & Analysis and £0.3m in Healthcare). Impairment losses mainly related to capitalised
development costs recorded as a result of changes in the expected outcome of projects.
Geographic information
The Group’s non‑current assets by geographic location are detailed below:

|  | Non‑current assets
| 31 March | 31 March
| 2024 | 2023
| £m | £m
United States of America | 922.8 | 893.5
Mainland Europe | 614.5 | 489.1
United Kingdom | 320.1 | 290.7
Asia Pacific | 133.9 | 119.3
Other countries | 45.3 | 44.1
| 2,036.6 | 1,836.7

Non‑current assets comprise goodwill, other intangible assets, interest in associate and other investments, and property, plant
and equipment.
Information about major customers
Revenue from one customer of the Group’s Environmental & Analysis segment represents 12% of the Group’s total revenues for the year
ended 31 March 2024. No other single customer amounted to more than 10% of the Group’s revenue. In the prior year no single customer
amounted to more than 10% of the Group’s revenue.
2 Earnings per share
Basic earnings per share amounts are calculated by dividing the net profit for the year attributable to the equity shareholders of the
parent by the weighted average number of shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the net profit attributable to the equity shareholders of the parent by the
weighted average number of shares outstanding during the year plus the weighted average number of shares that would be in issue on
the conversion of all dilutive potential shares.
The weighted average number of shares used to calculate both basic and diluted earnings per share exclude shares held in the employee
benefit trust.
Adjusted earnings are calculated as earnings from continuing operations excluding the amortisation and impairment of acquired
intangible assets; acquisition items; significant restructuring costs; profit or loss on disposal of operations and the associated taxation
thereon. The Directors consider that adjusted earnings, which constitute an alternative performance measure, represent a more
consistent measure of underlying performance as it excludes amounts not directly linked with trading. A reconciliation of earnings
and the effect on basic and diluted earnings per share figures is as follows:
Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 213
Strategic Report
Financial Statements
2 Earnings per share continued
Basic earnings per share

|  |  |  | Per share
| Year ended | Year ended | Year ended | Year ended
| 31 March | 31 March | 31 March | 31 March
| 2024 | 2023 | 2024 | 2023
| £m | £m | pence | pence
Earnings from continuing operations attributable to owners of the parent | 268.8 | 234.5 | 71.23 | 62.04
Amortisation and impairment of acquired intangible assets (after tax) | 37.4 | 42.3 | 9.89 | 11.19
Acquisition transaction costs (after tax) | 4.3 | 5.3 | 1.15 | 1.41
Adjustments to contingent consideration (after tax) | (3.9) | 3.8 | (1.04) | 1.00
Release of fair value adjustments to inventory (after tax) | 4.9 | 2.7 | 1.31 | 0.70
Disposal of operations and restructuring (after tax) | (0.5) | – | (0.14) | –
Adjusted earnings attributable to owners of the parent | 311.0 | 288.6 | 82.40 | 76.34
Weighted average number of shares in issue |  |  |  |
for basic earnings per share, million | 377.3 | 378.0 |  |

Diluted earnings per share

|  |  |  | Per share
| Year ended | Year ended | Year ended | Year ended
| 31 March | 31 March | 31 March | 31 March
| 2024 | 2023 | 2024 | 2023
| £m | £m | pence | pence
Earnings from continuing operations attributable to owners of the parent | 268.8 | 234.5 | 70.96 | 61.86
Weighted average number of shares in issue for basic earnings per share, million | 377.3 | 378.0 |  |
Dilutive potential shares – share awards, million | 1.4 | 1.1 |  |
Weighted average number of shares in issue |  |  |  |
for diluted earnings per share, million | 378.7 | 379.1 |  |

3 Alternative performance measures
The Board uses certain alternative performance measures to help it effectively monitor the performance of the Group. The Directors consider
that these represent a more consistent measure of underlying performance by removing items that are not closely related to the Group’s
trading or operating cash flows. These measures include Return on Total Invested Capital (ROTIC), Return on Capital Employed (ROCE),
Organic growth at constant currency, net debt, Adjusted operating profit, Adjusted profit before interest and taxation (Adjusted EBIT),
cash conversion and Adjusted operating cash flow.
Note 1 provides further analysis of the adjusting items in reaching adjusted profit measures. Net debt is defined as Borrowings plus
Lease liabilities net of Cash and bank balances, note 26 provides an analysis of net debt for the year.
Return on Total Invested Capital

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Profit after tax | 268.8 | 234.3
Adjustments | 42.2 | 54.1
Adjusted profit after tax | 311.0 | 288.4
Total equity | 1,736.5 | 1,598.9
Less net retirement benefit assets | (30.9) | (37.9)
Deferred tax liabilities on retirement benefits | 7.9 | 9.6
Cumulative fair value adjustments on equity investments through other comprehensive income | (3.2) | (4.4)
Cumulative amortisation and impairment of acquired intangible assets | 458.2 | 418.1
Historical adjustments to goodwill | 89.5 | 89.5
Total Invested Capital | 2,258.0 | 2,073.8
Average Total Invested Capital | 2,165.9 | 1,945.5
Return on Total Invested Capital (ROTIC) | 14.4% | 14.8%

1
1
2
3
4
214 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
3 Alternative performance measures continued
Return on Capital Employed

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Profit before tax | 340.3 | 291.5
Adjustments | 56.1 | 69.8
Net finance costs | 27.6 | 16.9
Lease interest | (3.2) | (2.9)
Adjusted operating profit 1 after share of results of associates and lease interest | 420.8 | 375.3
Computer software costs within other intangible assets | 3.3 | 3.2
Capitalised development costs within other intangible assets | 51.8 | 49.6
Other intangibles within other intangible assets | 3.5 | 3.4
Property, plant and equipment | 236.8 | 222.9
Inventories | 304.8 | 312.4
Trade and other receivables | 460.9 | 410.7
Current trade and other payables | (296.5) | (280.7)
Current lease liabilities | (19.5) | (19.2)
Current provisions | (35.0) | (21.0)
Net tax payable | (0.9) | (2.2)
Non‑current trade and other payables | (23.9) | (21.9)
Non‑current provisions | (10.7) | (9.7)
Non‑current lease liabilities | (64.2) | (68.7)
Add back contingent purchase consideration | 29.2 | 16.4
Capital Employed | 639.6 | 595.2
Average Capital Employed | 617.4 | 524.7
Return on Capital Employed (ROCE) | 68.2% | 71.5%

1
3
4
1 Adjustments include the amortisation and impairment of acquired intangible assets; acquisition items; significant restructuring costs and profit or loss on disposal of
operations. Where measures are after‑tax, these also include the associated taxation on adjusting items. Note 1 provides more information on these items.
2 Includes goodwill amortised prior to 3 April 2004 and goodwill taken to reserves.
3 The ROTIC and ROCE measures are expressed as a percentage of the average of the current and prior year’s Total Invested Capital and Capital Employed respectively.
Using an average as the denominator is considered to be more representative. The 1 April 2022 Total Invested Capital and Capital Employed balances were £1,817.2m
and £454.2m respectively.
4 The ROTIC and ROCE measures are calculated as Adjusted profit after tax divided by Average Total Invested Capital and Adjusted operating profit after share of
results of associates and lease interest divided by Average Capital Employed, respectively.
Organic growth at constant currency
Organic growth measures the change in revenue and profit from continuing Group operations. This measure equalises the effect of
acquisitions by:
a. removing from the year of acquisition their entire revenue and profit before taxation;
b. in the following year, removing the revenue and profit for the number of months equivalent to the pre‑acquisition period in the prior
year; and
c. removing from the year prior to acquisition, any revenue generated by sales to the acquired company which would have been
eliminated on consolidation had the acquired company been owned for that period.
The results of disposals are removed from the prior period reported revenue and profit before taxation.
Constant currency measures the change in revenue and profit excluding the effects of currency movements. The measure restates the
current year’s revenue and profit at last year’s exchange rates.
Organic growth at constant currency has been calculated for the Group as follows:
Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 215
Strategic Report
Financial Statements
3 Alternative performance measures continued
Group

|  |  | Revenue
| Year ended | Year ended |
| 31 March | 31 March |
| 2024 | 2023 |
| £m | £m | % growth
Continuing operations | 2,034.1 | 1,852.8 | 9.8%
Acquired and disposed revenue/profit | (93.0) | (5.0) |
Organic growth | 1,941.1 | 1,847.8 | 5.1%
Constant currency adjustment | 52.6 | – |
Organic growth at constant currency | 1,993.7 | 1,847.8 | 7.9%

|  |  | Adjusted * profit before interest and taxation |  |  | Adjusted * profit before taxation
| Year ended | Year ended |  | Year ended | Year ended
| 31 March | 31 March |  | 31 March | 31 March |
| 2024 | 2023 |  | 2024 | 2023 |
| £m | £m | % growth | £m | £m | % growth
Continuing operations | 424.0 | 378.2 | 12.1% | 396.4 | 361.3 | 9.7%
Acquired and disposed revenue/profit | (28.9) | 0.4 |  | (16.4) | 0.4 |
Organic growth | 395.1 | 378.6 | 4.3% | 380.0 | 361.7 | 5.1%
Constant currency adjustment | 10.7 | – |  | 10.6 | – |
Organic growth at constant currency | 405.8 | 378.6 | 7.2% | 390.6 | 361.7 | 8.0%

Sector Organic growth at constant currency
Organic growth at constant currency is calculated for each segment using the same method as described above.
Safety

|  |  | Revenue |  |  | Adjusted * profit before taxation
| Year ended | Year ended |  | Year ended | Year ended
| 31 March | 31 March |  | 31 March | 31 March |
| 2024 | 2023 |  | 2024 | 2023 |
| £m | £m | % growth | £m | £m | % growth
Continuing operations | 823.8 | 745.6 | 10.5% | 191.6 | 152.5 | 25.6%
Acquisition and currency adjustments | (33.3) | (1.4) |  | (14.9) | 0.4 |
Organic growth at constant currency | 790.5 | 744.2 | 6.2% | 176.7 | 152.9 | 15.5%

Environmental & Analysis

|  |  | Revenue |  |  | Adjusted * profit before taxation
| Year ended | Year ended |  | Year ended | Year ended
| 31 March | 31 March |  | 31 March | 31 March |
| 2024 | 2023 |  | 2024 | 2023 |
| £m | £m | % growth | £m | £m | % growth
Continuing operations | 658.4 | 552.1 | 19.3% | 147.9 | 134.2 | 10.2%
Acquisition and currency adjustments | 4.0 | (3.6) |  | 1.0 | – |
Organic growth at constant currency | 662.4 | 548.5 | 20.8% | 148.9 | 134.2 | 10.9%

Healthcare

|  |  | Revenue |  |  | Adjusted * profit before taxation
| Year ended | Year ended |  | Year ended | Year ended
| 31 March | 31 March |  | 31 March | 31 March |
| 2024 | 2023 |  | 2024 | 2023 |
| £m | £m | % growth | £m | £m | % growth
Continuing operations | 552.9 | 556.4 | (0.6%) | 125.6 | 130.1 | (3.5%)
Acquisition and currency adjustments | (11.1) | – |  | (4.2) | – |
Organic growth at constant currency | 541.8 | 556.4 | (2.6%) | 121.4 | 130.1 | (6.7%)

* Adjustments include in the current and prior year the amortisation and impairment of acquired intangible assets; acquisition items; significant restructuring costs and
profit or loss on disposal of operations.
216 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
3 Alternative performance measures continued
Adjusted EBIT/EBITDA

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Profit before interest and taxation (EBIT) | 367.9 | 308.4
Add back: |  |
Acquisition items (note 1) | 7.1 | 13.3
Profit on disposal of operations (note 1) | (0.5) | –
Amortisation and impairment of acquired intangible assets (note 1) | 49.5 | 56.5
Adjusted profit before interest and taxation (Adjusted EBIT) | 424.0 | 378.2
Depreciation, impairment and amortisation (excluding acquired intangible assets) | 59.1 | 53.5
EBITDA | 483.1 | 431.7

Adjusted operating profit

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Operating profit | 367.7 | 308.4
Add back: |  |
Acquisition items (note 1) | 7.1 | 13.3
Amortisation and impairment of acquired intangible assets (note 1) | 49.5 | 56.5
Adjusted operating profit | 424.3 | 378.2

Adjusted operating cash flow

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Net cash from operating activities (note 26) | 385.0 | 258.0
Add: |  |
Net acquisition costs paid | 6.0 | 4.6
Taxes paid | 87.2 | 67.2
Proceeds from sale of property, plant and equipment and capitalised development costs | 1.6 | 3.1
Share awards vested not settled by own shares (note 24) | 5.4 | 4.5
Deferred consideration paid in excess of payable estimated on acquisition | 1.5 | 1.7
Less: |  |
Purchase of property, plant and equipment (excluding Right of use assets) | (32.8) | (29.0)
Purchase of computer software and other intangibles | (2.4) | (1.1)
Development costs capitalised | (16.4) | (15.8)
Adjusted operating cash flow | 435.1 | 293.2
Cash conversion % (adjusted operating cash flow/adjusted operating profit) | 103% | 78%

Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 217
Strategic Report
Financial Statements
4 Finance income

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Interest receivable | 1.2 | 0.7
Net interest credit on pension plan assets | 1.9 | 1.1
| 3.1 | 1.8

5 Finance expense

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Interest payable on borrowings | 26.1 | 14.5
Interest payable on lease obligations | 3.2 | 2.9
Amortisation of finance costs | 0.9 | 0.8
Other interest payable | 0.3 | 0.1
Fair value movement on derivative financial instruments | 0.2 | 0.4
| 30.7 | 18.7

6 Profit before taxation
Profit before taxation comprises:

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Revenue | 2,034.1 | 1,852.8
Direct materials/direct labour | (873.5) | (784.3)
Production overhead | (156.8) | (145.6)
Selling costs | (187.1) | (174.5)
Distribution costs | (33.6) | (35.6)
Administrative expenses | (415.4) | (404.4)
Operating profit | 367.7 | 308.4
Share of loss of associate | (0.3) | –
Profit on disposal of operations | 0.5 | –
Profit before interest and taxation | 367.9 | 308.4
Net finance expense | (27.6) | (16.9)
Profit before taxation | 340.3 | 291.5

Included within administrative expenses are the amortisation and impairment of acquired intangible assets, transaction costs, and
adjustments to contingent consideration. Included within direct materials/direct labour is the release of fair value adjustments to inventory.

|  | Year ended | Year ended
|  | 31 March | 31 March
|  | 2024 | 2023
|  | £m | £m
Profit before taxation is stated after charging/ (crediting): |  |  |
Depreciation |  | 44.2 | 41.4
Amortisation |  | 61.2 | 60.1
Impairment of other intangible assets |  | 3.0 | 8.3
Impairment of property, plant and equipment |  | 0.2 | 0.1
Net impairment loss on trade receivables recognised/(reversed) (note 16) |  | 0.7 | (0.4)
Research costs * |  | 90.8 | 87.0
Foreign exchange gain |  | 1.6 | (0.4)
Profit on disposal of operations (note 30) |  | (0.5) | –
Profit on sale of property, plant and equipment and computer software |  | (0.2) | (0.8)
Cost of inventories recognised as an expense |  | 1,030.3 | 929.9
Staff costs (note 7) |  | 563.0 | 535.5
Auditors’ remuneration | Audit services to the Company | 0.7 | 0.6
| Audit of the Company’s subsidiaries | 2.4 | 1.9
| Total audit fees | 3.1 | 2.5
| Audit related fees – interim review | 0.1 | 0.1
| Other services | – | –
| Total non‑audit fees | 0.1 | 0.1
| Total fees | 3.2 | 2.6

**
* A further £16.4m (2023: £15.8m) of development costs has been capitalised in the year. See note 12.
** Refer to the Audit Committee Report on pages 144 – 151 for further details.
218 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
7 Employee information
The average number of persons employed by the Group (including Directors) by entity location was:

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| Number | Number
United States of America | 2,856 | 2,754
Mainland Europe | 1,685 | 1,475
United Kingdom | 2,564 | 2,478
Asia Pacific | 1,288 | 1,281
Other countries | 222 | 215
| 8,615 | 8,203

The monthly average number of persons employed by the Group (including Directors) by employee location was:

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| Number | Number
United States of America | 2,881 | 2,702
Mainland Europe | 1,605 | 1,518
United Kingdom | 2,486 | 2,409
Asia Pacific | 1,277 | 1,294
Other countries | 366 | 280
| 8,615 | 8,203

Group employee costs comprise:

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Wages and salaries | 460.0 | 438.5
Social security costs | 60.5 | 59.2
Pension costs (note 29) | 19.6 | 18.2
Share‑based payment charge (note 24) | 22.9 | 19.6
| 563.0 | 535.5

8 Directors’ remuneration
The remuneration of the Directors is set out on pages 152 to 177 within the audited sections of the Annual Remuneration Report,
which forms part of these financial statements.
Directors’ remuneration comprises:

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Wages, salaries and fees | 7.0 | 5.8
Pension costs | – | –
Share‑based payment charge | 3.1 | 3.8
| 10.1 | 9.6

Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 219
Strategic Report
Financial Statements
9 Taxation
Recognised in the Consolidated Income Statement

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Current tax |  |
UK corporation tax at 25% (2023: 19%) | 22.8 | 14.8
Overseas taxation | 67.3 | 61.9
Adjustments in respect of prior years | (0.2) | (3.0)
Total current tax charge | 89.9 | 73.7
Deferred tax |  |
Origination and reversal of timing differences | (19.2) | (17.5)
Adjustments in respect of prior years | 0.8 | 1.0
Total deferred tax credit | (18.4) | (16.5)
Total tax charge recognised in the Consolidated Income Statement | 71.5 | 57.2
Reconciliation of the effective tax rate: |  |
Profit before tax | 340.3 | 291.5
Tax at the UK corporation tax rate of 25% (2023: 19%) | 85.1 | 55.4
Overseas tax rate differences | (6.2) | 9.0
Tax incentives, exemptions and credits (including patent box, R&D and High‑Tech status) | (9.6) | (6.8)
Permanent differences | 1.6 | 1.6
Adjustments in respect of prior years | 0.6 | (2.0)
Total tax charge recognised in the Consolidated Income Statement | 71.5 | 57.2
Effective tax rate | 21.0% | 19.6%

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Adjusted * profit before tax | 396.4 | 361.3
Total tax charge on adjusted * profit | 85.4 | 72.9
Effective tax rate | 21.5% | 20.2%

* Adjustments include the amortisation and impairment of acquired intangible assets, acquisition items, significant restructuring costs and profit or loss on disposal of
operations. Note 3 provides more information on alternative performance measures.
The Group’s future Effective Tax Rate (ETR) will mainly depend on the geographic mix of profits and whether there are any changes to tax
legislation in the Group’s most significant countries of operations. The Finance Bill 2021 received Royal Assent on 10 June 2021 and included
the increase in the UK corporation tax rate from 19% to 25% from 1 April 2023.
The UK Finance (No. 2) Act 2023, enacted on 11 July 2023, contains the UK’s provisions in relation to a new tax framework (part of the
Organisation for Economic Co‑operation and Development (OECD) BEPS initiative), which introduces a global minimum ETR of 15% to
large multinational groups, effective for accounting periods beginning on or after 31 December 2023 (year ended 31 March 2025 for Halma).
To date, member states are in various stages of implementation and the OECD continues to refine technical guidance. The Group has
performed an assessment of the Group’s potential exposure to Pillar Two income taxes. Based on the assessment, the Pillar Two ETRs
in most of the jurisdictions in which the Group operates are above 15%. However, there are a limited number of jurisdictions, where the
transitional safe harbour relief may not apply and the Pillar Two ETR may be below 15%. The Group does not expect a material exposure
to Pillar Two income taxes in those jurisdictions, but does expect the ETR to marginally increase.
The Group is continuing to monitor income tax developments in the territories in which it operates to assess the impact of the Pillar Two
income taxes legislation on its future financial performance, as well as the applicable accounting standards. The Group has applied the
exemption under the IAS 12 amendment to recognising and disclosing information about deferred tax assets and liabilities related to
top‑up income taxes.
220 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
9 Taxation continued
Recognised in the Consolidated Statement of Comprehensive Income and Expenditure
In addition to the amount charged to the Consolidated Income Statement, the following amounts relating to tax have been recognised
directly in the Consolidated Statement of Comprehensive Income and Expenditure:

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Current tax |  |
Retirement benefit obligations | (0.9) | (1.8)
Deferred tax (note 22) |  |
Retirement benefit obligations | (2.1) | 0.6
Effective portion of changes in fair value of cash flow hedges | (0.2) | 0.3
| (3.2) | (0.9)

Recognised directly in equity
In addition to the amounts charged to the Consolidated Income Statement and the Consolidated Statement of Comprehensive Income
and Expenditure, the following amounts relating to tax have been recognised directly in equity:

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Current tax |  |
Excess tax deductions related to share‑based payments on vested awards | 0.1 | –
Deferred tax (note 22) |  |
Change in estimated excess tax deductions related to share‑based payments | (0.6) | 0.7
| (0.5) | 0.7

10 Dividends

|  | Per ordinary share |  |
| Year ended | Year ended | Year ended | Year ended
| 31 March | 31 March | 31 March | 31 March
| 2024 | 2023 | 2024 | 2023
| pence | pence | £m | £m
Amounts recognised as distributions to shareholders in the year |  |  |  |
Final dividend for the year ended 31 March 2023 (31 March 2022) | 12.34 | 11.53 | 46.5 | 43.6
Interim dividend for the year ended 31 March 2024 (31 March 2023) | 8.41 | 7.86 | 31.7 | 29.7
| 20.75 | 19.39 | 78.2 | 73.3
Dividends declared in respect of the year |  |  |  |
Interim dividend for the year ended 31 March 2024 (31 March 2023) | 8.41 | 7.86 | 31.7 | 29.7
Proposed final dividend for the year ended 31 March 2024 (31 March 2023) | 13.20 | 12.34 | 49.8 | 46.6
| 21.61 | 20.20 | 81.5 | 76.3

The proposed final dividend is subject to approval by shareholders at the Annual General Meeting on 25 July 2024 and has not been
included as a liability in these financial statements.
Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 221
Strategic Report
Financial Statements
11 Goodwill

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Cost |  |
At beginning of year | 1,120.5 | 908.7
Additions (note 25) | 115.0 | 180.0
Acquisition adjustments to prior years (note 25) | 0.6 | 0.3
Disposals (note 30) | (1.6) | –
Exchange adjustments | (23.5) | 31.5
At end of year | 1,211.0 | 1,120.5
Provision for impairment |  |
At beginning and end of year | – | –
Carrying amounts | 1,211.0 | 1,120.5

The Group identifies cash generating units (CGUs) at the operating company level as this represents the lowest level at which cash inflows
are largely independent of other cash inflows. However, often the goodwill which arises as a result of a business acquisition, will benefit
more than one CGU and so at acquisition, goodwill is allocated to the groups of CGUs that are expected to benefit from that business
combination.
Where goodwill has been allocated to a cash‑generating unit (CGU) group and part of the operation within that group is disposed of, the
goodwill associated with the disposed operation must be included in the carrying amount when determining the gain or loss on disposal.
The amount included is measured on the basis of the relative values of the operation disposed of and the portion of the CGU group that
is retained.
Before recognition of any impairment losses, the carrying amount of goodwill has been allocated to CGU groups as follows:

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Safety |  |
Fire | 181.3 | 187.6
Doors, Security and Elevators | 105.0 | 107.3
Safety Interlocks and Corrosion Monitoring | 103.5 | 95.4
Bursting Discs | 9.2 | 9.4
| 399.0 | 399.7
Environmental & Analysis |  |
Water | 137.6 | 107.6
Analysis | 80.4 | 82.1
Environmental Monitoring | 33.1 | 14.1
Gas Detection | 25.6 | 26.2
| 276.7 | 230.0
Healthcare |  |
Life Sciences | 39.4 | 41.1
Healthcare Assessment | 238.3 | 243.3
Therapeutic Solutions | 257.6 | 206.4
| 535.3 | 490.8
Total Group | 1,211.0 | 1,120.5

222 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
11 Goodwill continued
Impairment testing
Goodwill values have been tested for impairment by comparing them against the ‘value in use’ in perpetuity of the relevant CGU
group. The ‘value in use’ calculations were based on projected cash flows, derived from the latest budgets prepared by management and
strategic plans approved by the Board, discounted at CGU group specific, risk adjusted, discount rates to calculate their net present value.
Key assumptions used in ‘value in use’ calculations
The calculation of ‘value in use’ is most sensitive to the following assumptions:
• CGU specific operating assumptions that are reflected in the budget period for the financial year to March 2025;
• Discount rates; and
• Growth rates used to extrapolate risk adjusted cash flows beyond the forecast period.
CGU specific operating assumptions applicable to the forecasted cash flows for the year to March 2025 relate to revenue forecasts,
expected project outcomes, forecast operating margins and fixed asset and working capital requirements. The relative value ascribed
to each assumption will vary between CGUs as the forecasts are built up from the underlying operating companies within each CGU
group. Careful consideration has been given to ensure inflation and future cash flows reflect expectations for cost and price increases.
A short‑term growth rate is applied to the March 2025 budget to derive the cash flows arising in the years to March 2026 and March 2027
based on the average growth rate calculated in the relevant sector strategic plan. A long‑term growth rate (LTGR) is applied to these
values for the year to March 2028 and onwards capped at the weighted average forecast GDP growth rates of the markets into which
that CGU group sells. The use of forward looking rather than historic GDP growth rates represents a change in estimate effective this
year to align with best practice. This change of estimation approach reduces the LTGR and affects the discount rate for all CGU groups,
all other things being equal.
Each year the results of ongoing climate and emerging risk reviews are considered and the potential impacts of climate change on
long‑term growth rates where relevant. For example, since April 2021, where any CGU group has exposure to customers in the oil and
gas industry a reduction in the long‑term growth has been applied. In the year to 31 March 2024, no additional changes were made to
the long‑term growth rates as a result of these reviews. Immaterial additional capital expenditure to meet the Group’s emission targets
and physical risks have also been factored into future cash flow estimates. No further significant adjustments to future cash flows from
climate change are expected and therefore have not been recognised in the calculations.
Discount rates are based on estimations of the assumptions that market participants operating in similar sectors to Halma would make,
using the Group’s economic profile as a starting point and adjusting appropriately. The methodology for calculating the discount rate has
not changed year on year and the market economic data sources are consistent with prior years. The Group has calculated the discount
rate to be 12.19% (2023: 11.43%). Consistent with previous years this is a notional discount rate, calculated using externally published global
market assumptions. The discount rate, which is pre‑tax and is based on short‑term variables, may differ from the Weighted Average Cost
of Capital (WACC). Discount rates are adjusted for economic risks that are not already captured in the specific operating assumptions for
each CGU group. This results in the impairment testing using discount rates ranging from 10.81% to 15.76% (2023: 10.58% to 13.96%) across
the CGU groups.
Significant CGU groups
CGU groups to which 10% or more of the total goodwill balance is allocated are deemed to be significant. In addition to the operating
assumptions, the assumptions used to determine ‘value in use’ for these CGU groups are:

| Risk adjusted discount rate |  |  | Short‑term growth rates |  | Long‑term growth rates
| 31 March | 31 March | 31 March | 31 March | 31 March | 31 March
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023
Fire | 15.76% | 13.96% | 12.32% | 11.68% | 2.37% | 3.61%
Water | 12.33% | 11.32% | 11.47% | 9.20% | 2.11% | 3.29%
Healthcare Assessment | 14.65% | 13.94% | 8.79% | 8.17% | 2.30% | 3.79%
Therapeutic Solutions | 13.62% | 12.98% | 8.79% | 8.17% | 1.88% | 3.23%

Sensitivity to changes in assumptions
As reported in the sector review on pages 64 to 67, the Healthcare sector has delivered a subdued performance in the year to March 2024,
particularly in Life Sciences and to a lesser extent in Healthcare Assessment. Consequently, the cashflows generated by these two CGU
groups and expectations of future growth in the short‑term have decreased. This compounded with the change in the approach for the
estimate of long‑term growth rates has resulted in a reduction in the available headroom over the carrying amount of goodwill,
particularly in the Life Sciences CGU group where its value in use was not substantially in excess of its carrying value as of March 2024.
As a result, additional procedures were performed to stress test the remaining available headroom for these CGU groups including further
reductions in the above key assumptions. Whilst the reasonable sensitivities reduced the value in use for Life Sciences, this was not to a
material amount and consequently the Directors do not currently believe that any reasonably possible change in the above key
assumptions will materially reduce the recoverable amount below the carrying value.
For the remaining CGU groups, the Directors believe that no reasonably possible change in any of the above key assumptions would cause
the carrying value of any CGU group to materially exceed its recoverable amount.
Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 223
Strategic Report
Financial Statements
12 Other intangible assets

|  |  | Acquired intangible assets |  |  |  |  |
|  |  |  |  | Internally |  |  |
|  |  |  |  | generated |  |  |
| Customer |  | Trademarks, |  | capitalised |  |  |
| and supplier | Technical | brands and |  | development | Computer | Other |
| relationship | know‑how | patents | Total | costs | software | intangibles | Total
| £m | £m | £m | £m | £m | £m | £m | £m
Cost |  |  |  |  |  |  |  |
At 1 April 2022 | 363.4 | 170.9 | 87.1 | 621.4 | 124.0 | 22.7 | 5.9 | 774.0
Assets of businesses acquired | 87.6 | 87.3 | 17.3 | 192.2 | – | 0.2 | – | 192.4
Additions at cost | – | – | – | – | 15.8 | 0.8 | 0.3 | 16.9
Disposals and retirements | – | – | – | – | (2.8) | (1.7) | – | (4.5)
Transfers | – | – | – | – | – | (0.4) | – | (0.4)
Exchange adjustments | 14.1 | 3.3 | 3.2 | 20.6 | 3.4 | 0.9 | 0.2 | 25.1
At 31 March 2023 | 465.1 | 261.5 | 107.6 | 834.2 | 140.4 | 22.5 | 6.4 | 1,003.5
Assets of businesses acquired (note 25) | 78.7 | 55.8 | 20.4 | 154.9 | – | – | 0.4 | 155.3
Additions at cost | – | – | – | – | 16.4 | 2.0 | 0.4 | 18.8
Assets of business sold | (1.7) | (0.7) | (0.4) | (2.8) | (1.1) | – | – | (3.9)
Disposals and retirements | – | – | – | – | (1.2) | (1.2) | – | (2.4)
Exchange adjustments | (9.8) | (5.4) | (2.5) | (17.7) | (2.4) | (0.3) | (0.1) | (20.5)
At 31 March 2024 | 532.3 | 311.2 | 125.1 | 968.6 | 152.1 | 23.0 | 7.1 | 1,150.8
Accumulated amortisation & impairment |  |  |  |  |  |  |  |
At 1 April 2022 | 228.5 | 65.0 | 52.2 | 345.7 | 82.3 | 18.5 | 2.3 | 448.8
Charge for the year | 24.5 | 18.2 | 6.0 | 48.7 | 8.5 | 2.2 | 0.7 | 60.1
Impairment | 5.4 | 2.1 | 0.3 | 7.8 | 0.5 | – | – | 8.3
Disposals and retirements | – | – | – | – | (2.7) | (1.6) | – | (4.3)
Transfers | – | – | – | – | – | (0.4) | – | (0.4)
Exchange adjustments | 10.8 | 2.7 | 2.4 | 15.9 | 2.2 | 0.6 | – | 18.7
At 31 March 2023 | 269.2 | 88.0 | 60.9 | 418.1 | 90.8 | 19.3 | 3.0 | 531.2
Charge for the year | 23.2 | 20.7 | 5.6 | 49.5 | 9.2 | 1.8 | 0.7 | 61.2
Impairment | – | – | – | – | 3.0 | – | – | 3.0
Assets of business sold | (0.5) | (0.2) | (0.1) | (0.8) | – | – | – | (0.8)
Disposals and retirements | – | – | – | – | (1.2) | (1.1) | – | (2.3)
Exchange adjustments | (5.3) | (2.0) | (1.3) | (8.6) | (1.5) | (0.3) | (0.1) | (10.5)
At 31 March 2024 | 286.6 | 106.5 | 65.1 | 458.2 | 100.3 | 19.7 | 3.6 | 581.8
Carrying amounts |  |  |  |  |  |  |  |
At 31 March 2024 | 245.7 | 204.7 | 60.0 | 510.4 | 51.8 | 3.3 | 3.5 | 569.0
At 31 March 2023 | 195.9 | 173.5 | 46.7 | 416.1 | 49.6 | 3.2 | 3.4 | 472.3

1
2
3
4
5
1 Customer and supplier relationship assets are amortised over their useful economic lives estimated to be between 3 and 25 years. Within this balance individually
significant balances relate to: CenTrak: £10.2m (2023: £12.0m); IZI: £15.7m (2023: £17.2m); WEETECH:£9.1m (2023: £10.4m); Ampac: £9.5m (2023: £11.0m);
FirePro: £40.6m (2023: £44.8m); Sewertronics: £11.2m; TeDan: £16.0m and Rovers: £25.6m.
The remaining amortisation periods for these assets are 7 years, 13, 9, 9, 14, 12, 21 and 25 years respectively.
2 Technical know‑how assets are amortised over their useful economic lives, estimated to be between 3 and 25 years. Within this balance individually material balances
relate to: IZI: £33.0m (2023: £36.2 m); FirePro: £26.5m (2023: £28.9m); and NovaBone: £17.8m (2023: £19.8m); TeDan: £12.7m and Rovers: £21.3m.
The remaining amortisation periods for these assets are 13 years, 17, 11, 10 and 20 years respectively.
3 Trademarks, brands and patents (which include protected intellectual property) are amortised over their useful economic lives estimated to be between 3 and 20
years. Within this balance individually material balances relate to: Rovers: £11.2m.
4 Internally generated capitalised development costs are amortised over their useful economic lives estimated to be 3 years from the date of product launch.
There are no individually material items within this balance, which comprises capitalised costs arising from the development phase of the R&D projects undertaken
by the Group.
5 Other intangibles comprise license and product registration costs, and customer lists, amortised over their useful economic lives, estimated to be between 3 and 5 years.
None of the intangible assets have been pledged as security.
224 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
13 Property, plant and equipment

|  |  |  | Owned assets |
| Right‑of‑use |  | Leasehold | Plant, |
| assets | Freehold land | buildings and | equipment |
| (Note 28) | and buildings | improvements | and vehicles | Total
| £m | £m | £m | £m | £m
Cost |  |  |  |  |
At 1 April 2022 | 128.3 | 69.3 | 23.6 | 206.9 | 428.1
Transfer between category | – | (0.1) | (0.2) | 0.3 | –
Assets of businesses acquired | 9.3 | 0.9 | 0.1 | 4.1 | 14.4
Additions at cost | 18.7 | 1.1 | 3.2 | 24.7 | 47.7
Remeasurements | 4.2 | – | – | – | 4.2
Disposals and retirements | (3.6) | (1.2) | (1.3) | (14.3) | (20.4)
Exchange adjustments | 3.8 | 2.3 | 0.7 | 6.2 | 13.0
At 31 March 2023 | 160.7 | 72.3 | 26.1 | 227.9 | 487.0
Transfer between category | 0.4 | (0.2) | 1.2 | (1.4) | –
Assets of businesses acquired (note 25) | 3.2 | 8.2 | 0.3 | 5.0 | 16.7
Assets of business sold | (0.7) | – | – | (0.2) | (0.9)
Additions at cost | 15.4 | 1.2 | 5.9 | 25.7 | 48.2
Disposals and retirements | (8.3) | – | (0.6) | (18.0) | (26.9)
Exchange adjustments | (4.5) | (1.0) | (0.6) | (4.9) | (11.0)
At 31 March 2024 | 166.2 | 80.5 | 32.3 | 234.1 | 513.1
Accumulated depreciation & impairment |  |  |  |  |
At 1 April 2022 | 61.3 | 17.9 | 14.7 | 140.2 | 234.1
Transfer between category | – | (0.1) | (0.2) | 0.3 | –
Charge for the year | 18.4 | 1.4 | 2.4 | 19.2 | 41.4
Impairment | – | – | – | 0.1 | 0.1
Disposals and retirements | (3.6) | (0.5) | (1.3) | (12.9) | (18.3)
Exchange adjustments | 1.6 | 0.6 | 0.6 | 4.0 | 6.8
At 31 March 2023 | 77.7 | 19.3 | 16.2 | 150.9 | 264.1
Transfer between category | (0.3) | – | 0.6 | (0.3) | –
Charge for the year | 19.8 | 1.3 | 2.7 | 20.4 | 44.2
Impairment | – | – | – | 0.2 | 0.2
Assets of business sold | (0.7) | – | – | (0.1) | (0.8)
Disposals and retirements | (7.6) | – | (0.5) | (16.9) | (25.0)
Exchange adjustments | (2.1) | (0.3) | (0.3) | (3.7) | (6.4)
At 31 March 2024 | 86.8 | 20.3 | 18.7 | 150.5 | 276.3
Carrying amounts |  |  |  |  |
At 31 March 2024 | 79.4 | 60.2 | 13.6 | 83.6 | 236.8
At 31 March 2023 | 83.0 | 53.0 | 9.9 | 77.0 | 222.9

Note 28 Leases contains further details of the Group’s right‑of‑use assets. None of the property, plant and equipment has been pledged
as security.
Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 225
Strategic Report
Financial Statements
14 Interest in associate and other investments

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Interest in associate | 1.8 | 2.1
Financial assets at fair value through other comprehensive income |  |
– Equity instruments | 18.0 | 18.9
| 19.8 | 21.0

Interest in associate

| 31 March | 31 March
| 2024 | 2023
| £m | £m
At beginning of the year | 2.1 | 1.3
Additions in the year | – | 0.8
Group’s share of loss of associate | (0.3) | –
At end of year | 1.8 | 2.1

During the prior year, OneThird B.V. issued a £1.6m (US$2.0m) convertible loan note, and the Group took up 50% of the issue at £0.8m
(US$1.0m). In February 2023, following a further funding round, the loan notes were converted increasing the Group’s equity in the
associate with ownership increasing to 31%.
OneThird B.V has its registered office at Almelosestraat 19, 7495 TG Ambt Delden, Netherlands. The Group owns 20,921 preferred A3
shares which represents 37% of the total preferred A3 shares issued. The Group also owns 30,000 ordinary shares which is 60% of the
ordinary shares issued. The company has A2 preference shares in issue of which the Group do not have a holding.

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Aggregated amounts relating to associate |  |
Non‑current assets | 2.0 | 1.9
Current assets | 0.8 | 2.0
Current liabilities | (0.1) | (0.1)
Net assets | 2.7 | 3.8
Group’s share of net assets of associate | 0.8 | 1.2
Revenue | 0.3 | 0.2
Loss | (1.0) | (0.1)
Group’s share of loss of associate | (0.3) | –

Financial assets at fair value through other comprehensive income (FVOCI)
Movements in equity investments at FVOCI comprise the following:

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Unlisted securities |  |
At beginning of the year | 18.9 | 6.9
Additions in the year | 0.3 | 5.9
Changes in fair value recognised in other comprehensive income | (1.2) | 6.1
At end of year | 18.0 | 18.9

Unlisted securities comprise of investments in Owlytics Healthcare Limited, Valencell Inc., Oxa Autonomy Ltd and VAPAR Innovation PTY
Ltd. Further information on methods and assumptions used in determining fair value is provided in note 27.
226 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
15 Inventories

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Raw materials and consumables | 175.5 | 185.8
Work in progress | 28.4 | 31.5
Finished goods and goods for resale | 100.9 | 95.1
| 304.8 | 312.4

The above is stated net of provision for slow‑moving and obsolete stock, movements of which are shown below:

| 31 March | 31 March
| 2024 | 2023
| £m | £m
At beginning of the year | 44.5 | 36.1
Write downs of inventories recognised as an expense | 8.7 | 6.0
Recognition of provisions for businesses acquired | 5.2 | 5.0
Derecognition of provisions for businesses disposed | 0.1 | –
Utilisation and amounts reversed against inventories previously impaired | (1.9) | (3.5)
Exchange adjustments | (1.0) | 0.9
At end of the year | 55.6 | 44.5

In the year ended 31 March 2024, previous write‑downs against inventory were reversed as a result of increased sales in certain markets or
where previously written down inventories have been disposed.
There is no material difference between the original cost of inventories and their cost of replacement. None of the inventory has been
pledged as security.
16 Trade and other receivables

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Trade receivables | 361.0 | 330.2
Allowance for doubtful debts | (7.1) | (6.9)
| 353.9 | 323.3
Other receivables | 26.5 | 18.7
Prepayments | 31.3 | 30.0
Contract assets (note 18) | 49.2 | 38.7
| 460.9 | 410.7

Other receivables comprise various assets across the Group, including sales tax receivables and other non‑trade balances.
The movement in the allowance for doubtful debts in respect of trade receivables during the year was as follows:

| 31 March | 31 March
| 2024 | 2023
| £m | £m
At beginning of the year | 6.9 | 6.6
Net impairment loss | 0.7 | (0.4)
Amounts recovered against trade receivables previously written down/amounts utilised | (0.8) | (0.4)
Recognition of provisions for businesses acquired | 0.5 | 0.8
Exchange adjustments | (0.2) | 0.3
At end of the year | 7.1 | 6.9

The Group assesses on a forward‑looking basis the expected credit losses associated with its trade and other receivables carried at
amortised cost.
The fair value of trade and other receivables approximates to book value due to the short‑term maturities associated with these items.
There is no impairment risk identified with regards to other receivables where no amounts are past due. The Group assessed that no
provisions or impairments were required in relation to contract assets (2023: £nil).
Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 227
Strategic Report
Financial Statements
16 Trade and other receivables continued
The ageing of trade receivables was as follows:

|  | Gross trade |  | Trade receivables
|  | receivables |  | net of doubtful debts
| 31 March | 31 March | 31 March | 31 March
| 2024 | 2023 | 2024 | 2023
| £m | £m | £m | £m
Not yet due | 281.2 | 250.8 | 280.8 | 250.3
Up to one month overdue | 50.5 | 45.4 | 50.4 | 45.4
Between one and two months overdue | 11.5 | 14.3 | 11.4 | 14.2
Between two and three months overdue | 4.2 | 5.0 | 3.8 | 4.8
Over three months overdue | 13.6 | 14.7 | 7.5 | 8.6
| 361.0 | 330.2 | 353.9 | 323.3

17 Trade and other payables: falling due within one year

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Trade payables | 117.5 | 116.9
Other taxation and social security | 12.9 | 12.7
Other payables | 9.7 | 7.7
Accruals | 121.5 | 107.3
Contract liabilities (note 18) | 34.7 | 35.9
Deferred government grant income | 0.2 | 0.2
| 296.5 | 280.7

Other payables comprise various balances across the Group including share‑based payments related amounts of £1.8m (2023: £0.9m),
deferred R&D expenditure tax credits and other non‑trade payables. These comprise £8.8m (2023: £6.8m) of financial liabilities and £0.9m
(2023: £0.9m) of non‑financial liabilities.
18 Contract balances

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Contract costs | 1.6 | 1.8
Contract assets (note 16) | 49.2 | 38.7
Contract liabilities current (note 17) | (34.7) | (35.9)
Contract liabilities non‑current (note 21) | (18.8) | (17.1)
Total contract liabilities | (53.5) | (53.0)

Contract costs represent an asset the Group has recognised in relation to costs to fulfil long‑term contracts. This is presented within other
receivables in the balance sheet.

|  | Contract assets |  | Contract liabilities
| 31 March | 31 March | 31 March | 31 March
| 2024 | 2023 | 2024 | 2023
| £m | £m | £m | £m
Amounts included in contract balances at the beginning of the year | 38.7 | 31.4 | (53.0) | (40.1)
Transfers to receivables during the year | (37.5) | (32.3) |  |
Performance obligations arising in the current reporting year |  |  |  |
Increases as a result of billing ahead of performance |  |  | (30.6) | (36.1)
Decreases as a result of revenue recognised in the year |  |  | 31.8 | 24.4
Increases as a result of performance in advance of billing | 48.8 | 37.9 |  |
Amounts arising through business combinations | – | – | (2.2) | (0.5)
Exchange movements | (0.8) | 1.7 | 0.5 | (0.7)
Amounts included in contract balances at the end of the year | 49.2 | 38.7 | (53.5) | (53.0)

In some cases, the Group receives payments from customers based on a billing schedule, as established in our contracts. The contract
assets relate to revenue recognised for performance in advance of scheduled billing and has increased as the Group has provided more
services ahead of the agreed payment schedules for certain contracts. The contract liability relates to payments received in advance of
performance under contract and varies based on performance under these contracts.
228 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
19 Borrowings

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Overdrafts | 0.3 | 1.0
Total borrowings falling due within one year | 0.3 | 1.0
Unsecured loan notes falling due after more than one year | 370.9 | 376.9
Unsecured bank loans falling due after more than one year | 341.0 | 300.4
Total borrowings falling due after more than one year | 711.9 | 677.3
Total borrowings | 712.2 | 678.3

In the current year, the loan notes falling due after more than one year relate to United States Private Placement completed in May 2022
and the remainder of the United States Private Placement completed in November 2015.
Information concerning the security, currency, interest rates and maturity of the Group’s borrowings is given in note 27.
20 Provisions
Provisions are presented as:

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Current | 35.0 | 21.0
Non‑current | 10.7 | 9.7
| 45.7 | 30.7

| Contingent |  |  | Legal, |
| purchase |  | Product | contractual |
| consideration | Dilapidations | warranty | and other | Total
| £m | £m | £m | £m | £m
At 31 March 2023 | 16.4 | 3.4 | 7.7 | 3.2 | 30.7
Additional provision in the year | 0.2 | 0.2 | 2.8 | 3.2 | 6.4
Arising on acquisition (note 25) | 20.1 | 0.1 | 0.2 | – | 20.4
Utilised during the year | (2.9) | – | (0.3) | (0.2) | (3.4)
Released during the year | (3.9) | (0.1) | (2.3) | (1.3) | (7.6)
Exchange adjustments | (0.7) | – | (0.1) | – | (0.8)
At 31 March 2024 | 29.2 | 3.6 | 8.0 | 4.9 | 45.7

Governance Report Other Information
Halma plc | Annual Report and Accounts 2024 229
Strategic Report
Financial Statements
20 Provisions continued
Contingent purchase consideration
The provision at the beginning of the year comprised £16.4m, of which £13.2m was payable within one year, included amounts based on
actual results for the final earnout period for IZI, Spreo and for the second earnout period for Infinite Leap. It also included estimates for
the final earnout period for Visiometrics, for the year ended 31 December 2018, which is subject to final agreement.
The £0.2m additional provision in the year related to revisions to the estimate of IZI and Spreo which were both settled in the year.
The £2.9m utilised during the year related to the first and final earnout period for IZI and the third and final earnout period for Spreo.
The £3.9m released during the year related to the revisions to the estimate of Sewertronics and Alpha.
The closing total provision of £29.2m, of which £24.5m is payable within one year, includes amounts based on actual results for the final
earnout period for Infinite Leap, VIR, Tedan Group and AprioMed and estimates for the first earnout period of Rovers. It also includes
estimates for the final earnout period for Visiometrics, for the year ended 31 December 2018, which is subject to final agreement.
The balance due after more than one year of £4.7m comprises the estimated future earnouts for Sewertronics, Alpha, VIR and ZED.
The total contingent purchase consideration payable in future for the existing acquisitions is a minimum of £13.1m with a maximum
possible payable of £78.8m.
Contingent consideration amounts paid in excess of that estimated in the acquisition balance sheet is included in cash flows from
operating activities.
The basis for the calculation of each contingent consideration arrangement is set out on page 248 in note 27, including sensitivity of the
estimation of the liabilities to changes in the assumptions.
Dilapidations
The dilapidations provisions are for the continuing obligations under leases in respect of property dilapidation and reinstatement
provisions. The provisions comprise the Directors’ best estimates of future payments to restore the fabric of buildings to their original
condition where it is a condition of the leases, prior to return of the properties.
These commitments cover the period from 2024 to 2036 though they predominantly fall due within five years.
Product warranty
Product warranty provisions reflect commitments made to customers on the sale of goods in the ordinary course of business and included
within the Group companies’ standard terms and conditions. The warranties represent assurance type warranties within the definition of
IFRS 15. Warranty commitments cover a period of between one and five years and typically apply for a 12‑month period. The provision
represents the Directors’ best estimate of the Group’s liability based on past experience.
Legal, contractual and other
Legal, contractual and other provisions comprise mainly amounts reserved against open legal and contractual disputes. The Company
has on occasion been required to take legal or other actions to defend itself against proceedings brought by other parties. Provisions are
made for the expected costs associated with such matters, based on past experience of similar items and other known factors, taking
into account professional advice received, and represent the Directors’ best estimate of the likely outcome. The timing of utilisation of
these provisions is frequently uncertain reflecting the complexity of issues and the outcome of various court proceedings and negotiations.
Contractual and other provisions represent the Directors’ best estimate of the cost of settling future obligations. Unless specific evidence
exists to the contrary, these reserves are shown as current.
However, no provision is made for proceedings which have been or might be brought by other parties against Group companies unless the
Directors, taking into account professional advice received, assess that it is more likely than not that such proceedings may be successful.
Management’s assessment of the potential impacts of climate change, as well as the Group’s climate strategy as laid out on
pages 77 to 99, has not resulted in the recognition of any additional provisions or disclosure of any contingent liabilities.
21 Trade and other payables: falling due after one year

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Other payables | 3.8 | 3.0
Other taxation and social security | – | –
Accruals | 0.7 | 0.6
Contract liabilities (note 18) | 18.8 | 17.1
Deferred government grant income | 0.6 | 1.2
| 23.9 | 21.9

230 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
22 Deferred tax

| Retirement | Acquired | Accelerated | Short‑term |  | Goodwill | Capitalised |
| benefit | intangible | tax | timing | Share‑based | timing | development |
| obligations | assets | depreciation | differences | payment | differences | costs | Total
| £m | £m | £m | £m | £m | £m | £m | £m
At 1 April 2023 | (9.6) | (97.8) | (7.4) | 7.6 | 5.7 | 24.0 | 10.3 | (67.2)
Credit/(charge) to Consolidated Income |  |  |  |  |  |  |  |
Statement | (0.4) | 11.8 | (1.4) | 5.9 | 2.0 | (9.0) | 9.5 | 18.4
Credit/(charge) to Consolidated Statement of Comprehensive Income and Expense | 2.1 | – | – | 0.2 | – | – | – | 2.3
Credit to equity | – | – | – | – | 0.6 | – | – | 0.6
Arising on acquisition |  |  |  |  |  |  |  |
(note 25) | – | (40.1) | – | (0.6) | – | 9.8 | – | (30.9)
Disposals (note 30) | – | 0.6 | – | (0.1) | – | – | – | 0.5
Exchange adjustments | – | 2.1 | 0.2 | 0.2 | – | (0.6) | (0.2) | 1.7
At 31 March 2024 | (7.9) | (123.4) | (8.6) | 13.2 | 8.3 | 24.2 | 19.6 | (74.6)

| Retirement | Acquired | Accelerated | Short‑term |  | Goodwill | Capitalised |
| benefit | intangible | tax | timing | Share‑based | timing | development |
| obligations | assets | depreciation | differences | payment | differences | costs | Total
| £m | £m | £m | £m | £m | £m | £m | £m
At 1 April 2022 | (7.7) | (71.8) | (6.7) | 7.8 | 5.2 | 17.1 | – | (56.1)
Credit/(charge) to Consolidated Income |  |  |  |  |  |  |  |
Statement | (1.3) | 14.6 | (0.1) | (0.4) | 1.2 | (8.1) | 10.6 | 16.5
Credit/(charge) to Consolidated Statement of Comprehensive Income and Expense | (0.6) | – | – | (0.3) | – | – | – | (0.9)
Charge to equity | – | – | – | – | (0.7) | – | – | (0.7)
Arising on acquisition | – | (39.4) | (0.2) | – | – | 15.3 | – | (24.3)
Exchange adjustments | – | (1.2) | (0.4) | 0.5 | – | (0.3) | (0.3) | (1.7)
At 31 March 2023 | (9.6) | (97.8) | (7.4) | 7.6 | 5.7 | 24.0 | 10.3 | (67.2)

The Group applied ‘Deferred tax related to assets and liabilities arising from a single transaction’ (Amendments to IAS 12) from 1 April 2023.
Following the amendments, the Group has recognised within Short-term timing differences a separate deferred tax asset in relation to
its lease liabilities of £16.2m (2023: £17.7m) and a deferred tax liability in relation to its right-of-use assets of £15.0m (2023: £16.2m).
Certain deferred tax assets and liabilities have been offset. The following is the analysis of the deferred tax balances (after offset) for
financial reporting purposes:

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Deferred tax liability | (79.5) | (70.2)
Deferred tax asset | 4.9 | 3.0
Net deferred tax liability | (74.6) | (67.2)

Deferred tax balances expected to unwind in less than one year are insignificant.
Movement in net deferred tax liability:

| 31 March | 31 March
| 2024 | 2023
| £m | £m
At beginning of year | (67.2) | (56.1)
(Charge)/credit to Consolidated Income Statement: |  |
UK | (0.8) | (2.7)
Overseas | 19.2 | 19.2
Charge to Consolidated Statement of Comprehensive Income | 2.3 | (0.9)
Credit/(charge) to equity | 0.6 | (0.7)
Arising on acquisition (note 25) | (30.9) | (24.3)
Deferred tax of business sold (note 30) | 0.5 | –
Exchange adjustments | 1.7 | (1.7)
At end of year | (74.6) | (67.2)

Halma plc | Annual Report and Accounts 2024 231
Governance Report Other InformationStrategic Report
Financial Statements
22 Deferred tax continued
It is likely that the unremitted earnings of overseas subsidiaries would qualify for the UK dividend exemption such that no UK tax would
be due upon remitting those earnings to the UK. However, £113.8m (2023: £123.7m) of those earnings may still result in a tax liability,
principally as a result of the dividend withholding taxes levied by the overseas jurisdictions in which those subsidiaries operate.
These deferred tax liabilities of £7.2m (2023: £8.5m) have not been recognised as the Group is able to control the timing of the reversal
of these temporary differences and it is probable that they will not reverse in the foreseeable future. Temporary differences in connection
with the interest in associate are insignificant.
At 31 March 2024, deferred tax assets of £2.3m and £4.8m (2023: £0.4m and £4.9m) in respect of unused capital tax losses and other tax
losses have not been recognised.
23 Share capital

|  | Issued and fully paid
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Ordinary shares of 10p each | 38.0 | 38.0

The number of ordinary shares in issue at 31 March 2024 was 379,645,332 (2023: 379,645,332), including shares held by the Employee
Benefit Trust of 2,457,205 (2023: 1,901,415); this represents 0.6% of called up share capital (2023: 0.5%). The number of own shares
purchased during the year was 890,000 (2023: 1,000,000) with a nominal value of £0.1m (2023: £0.1m).
24 Share‑based payments
The total cost recognised in the Consolidated Income Statement in respect of share-based payment plans (the ‘employee share plans’)
was as follows:

|  |  | Year ended 31 March 2024 |  |  | Year ended 31 March 2023
| Equity‑settled | Cash‑settled | Total | Equity‑settled | Cash‑settled | Total
| £m | £m | £m | £m | £m | £m
Share incentive plan | 1.2 | – | 1.2 | 1.3 | – | 1.3
Executive share plan | 21.7 | – | 21.7 | 18.0 | 0.3 | 18.3
| 22.9 | – | 22.9 | 19.3 | 0.3 | 19.6

Share incentive plan
Shares awarded under this Plan are purchased in the market by the Plan’s trustees at the time of the award and are held in trust until
their transfer to qualifying employees; vesting is conditional upon completion of three years’ service. Forfeited shares are reallocated
in subsequent grants. The costs of providing this Plan are recognised in the Consolidated Income Statement over the three-year
vesting period.
Executive share plan (ESP)
Under the ESP, in which Executive Directors and certain senior employees participate, deferred share awards are made as either performance
awards or deferred awards. Performance awards vest after three years based on Earnings Per Share and Return on Total Invested Capital
(ROTIC) targets, and after two or three years for deferred share awards based on continuing service of the employee only. Awards which
do not vest lapse on the second or third anniversary of their grant. Shares awarded under this Plan are purchased in the market by the
Plan’s trustees and are held as own shares until their transfer to qualifying employees. Under the terms of the trust deed, Halma is
required to provide the trust with the necessary funds to purchase the shares ahead of vesting. Dividends accrue on unvested awards
and are settled in cash on vesting.
The following table shows the number of deferred shares granted and outstanding at the beginning and end of the reporting period for
the ESP:

| 2024 | 2023
| Number | Number
| of shares | of shares
| awarded | awarded
Outstanding at beginning of year | 2,662,100 | 1,722,706
Granted during the year | 1,302,974 | 1,554,197
Vested during the year (pro–rated for ‘good leavers’) | (569,806) | (487,593)
Lapsed during the year | (285,887) | (127,210)
Outstanding at end of year | 3,109,381 | 2,662,100
Exercisable at end of year | – | –

Included in Retained earnings are accumulated credits of £35.0m (2023: £26.9m) representing the provision for the value of unvested
awards under the Group’s equity settled share plans. The performance shares outstanding at 31 March 2024 had a weighted average
remaining contractual life of 15 months (2023: 18 months). The weighted average share price at the date of exercise of vested shares
during the year was 2,254p (2023: 2,265p).
232 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
24 Share‑based payments continued
The fair value of the awards was calculated using an appropriate simulation method, with the inputs below:

| 2024 | 2023 | 2022
Expected life (years) | 2 or 3 | 2 or 3 | 2 or 3
Share price on date of grant (p) | 2,240.0 | 2,060.0 | 2,732.0
Option price (p) | Nil | Nil | Nil
Fair value per option (%) | 100% | 100% | 100%
Fair value per option (p) | 2,240.0 | 2,060.0 | 2,732.0

Cash‑settled
Awards under the above plans are normally settled in shares but may be settled in cash at the Board’s discretion or where required by
local regulations. Cash-settled awards follow the same vesting conditions as the plans under which they are awarded.
Net settlement feature for withholding tax obligations
On vesting, a debit is recognised to Retained earnings at a weighted average cost of the shares purchased and held for this purpose.
Shares are transferred from own shares to the qualifying employee. The deferred shares granted under the ESP include a net settlement
feature under which shares are withheld in order to settle the employee’s tax obligations. The Group withholds an amount for an
employee’s tax obligation associated with a share-based payment and transfers that amount in cash to the relevant tax authority
on the employee’s behalf.
Where permitted by local regulations, the Group is settling the deferred share grant on a net basis by withholding the number of shares
with a fair value equal to the monetary value of the employee’s tax obligation and only issuing the remaining shares on completion of the
vesting period. An amount of £5.4m was withheld and paid to the taxation authority in relation to the deferred shares that vested during
the year (2023: £4.5m).
25 Acquisitions
In accounting for acquisitions, adjustments are made to the book values of the net assets of the companies acquired to reflect their fair
values to the Group. Other previously unrecognised assets and liabilities at acquisition are included and accounting policies are aligned
with those of the Group where appropriate.
During the year ended 31 March 2024, the Group made eight acquisitions namely:
• Sewertronics sp z.o.o.;
• Lazer Safe Pty. Ltd;
• Certain trade and assets of Visual Imaging Resourcing LLC;
• AprioMed AB;
• Alpha Instrumatics Group;
• TeDan Group;
• Ziegler Electronic Devices GmbH; and
• Rovers Medical Devices B.V.
Set out on the following pages are summaries of the assets acquired and liabilities assumed and the purchase consideration of:
a) the total of acquisitions;
b) Sewertronics sp z.o.o.;
c) Lazer Safe Pty. Ltd;
d) Visual Imaging Resourcing LLC;
e) AprioMed AB;
f) Alpha Instrumatics Group;
g) TeDan Group;
h) Ziegler Electronic Devices GmbH;
i) Rovers Medical Devices B.V.; and
j) adjustments arising on prior year acquisitions.
Due to their contractual dates, the fair value of receivables acquired approximate to the gross contractual amounts receivable. The amount
of gross contractual receivables not expected to be recovered is immaterial.
There are no material contingent liabilities recognised in accordance with paragraph 23 of IFRS 3 (revised). The acquisitions contributed
£37.2m of revenue and £7.4m of profit after tax for year ended 31 March 2024.
If these acquisitions had been held since the start of the financial year, it is estimated that the Group’s reported revenue and profit after
tax would have been £40.2m and £10.5m higher respectively.
As at the date of approval of the financial statements the accounting for Sewertronics sp z.o.o. and Visual Imaging Resourcing LLC is final.
The accounting for all other current year acquisitions is provisional, relating to the finalisation of the valuation of acquired intangible
assets, the initial consideration, which is subject to agreement of certain contractual adjustments, and certain other provisional balances.
Halma plc | Annual Report and Accounts 2024 233
Governance Report Other InformationStrategic Report
Financial Statements
25 Acquisitions continued
a) Total of acquisitions

| Total
| £m
Non‑current assets |
Intangible assets | 155.3
Property, plant and equipment | 16.7
Deferred tax | 1.1
Current assets |
Inventories | 19.6
Trade and other receivables | 12.7
Cash and cash equivalents | 8.3
Total assets | 213.7
Current liabilities |
Payables | (8.8)
Borrowings | (17.1)
Lease liabilities | (0.6)
Provisions | (0.2)
Tax liabilities | (1.6)
Non‑current liabilities |
Lease liabilities | (2.6)
Payables | (0.4)
Provisions | (0.1)
Deferred tax liabilities | (32.0)
Total liabilities | (63.4)
Net assets of businesses acquired | 150.3
Initial cash consideration paid | 247.7
Other adjustments to consideration | (2.0)
Other amounts to be paid | 0.1
Contingent purchase consideration including retentions estimated to be paid | 20.1
Total consideration | 265.9
Total goodwill | 115.6

Total goodwill of £115.6m comprises £115.0m relating to current year acquisitions and £0.6m relating to adjustments to prior year
acquisitions within 12 months of the acquisition date, including WEETECH Holding GmbH, FirePro Group, IZI Healthcare Products
and Zonegreen 2013 Ltd.
Analysis of cash outflow in the Consolidated Cash Flow Statement

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Initial cash consideration paid | 247.7 | 321.0
Cash acquired on acquisitions | (8.3) | (10.1)
Initial cash consideration adjustments (received)/paid on current year acquisitions | (2.0) | 6.3
Contingent consideration paid | 2.9 | 4.6
Net cash outflow relating to acquisitions | 240.3 | 321.8
Included in cash flows from operating activities | 1.5 | 1.7
Included in cash flows from investing activities | 238.8 | 320.1

Other adjustments to consideration are primarily adjustments for acquired working capital once balances are fully reconciled, forming
part of the contractual payment mechanisms.
Contingent consideration included in cash flows from operating activities reflect amounts paid in excess of that estimated in the
acquisition balance sheets.
234 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
25 Acquisitions continued
b) Sewertronics sp z.o.o.

| £m
Non‑current assets |
Intangible assets | 17.6
Property, plant and equipment | 0.7
Deferred tax | 0.1
Current assets |
Inventories | 0.5
Trade and other receivables | 0.9
Cash and cash equivalents | 1.6
Total assets | 21.4
Current liabilities |
Payables | (0.1)
Tax liabilities | (0.8)
Non‑current liabilities |
Lease liabilities | (0.5)
Deferred tax liabilities | (3.3)
Total liabilities | (4.7)
Net assets of business acquired | 16.7
Initial cash consideration paid | 35.7
Contingent purchase consideration including retentions estimated to be paid | 4.7
Total consideration | 40.4
Total goodwill | 23.7

On 4 May 2023, the Group acquired the entire share capital of Sewertronics sp z.o.o. and its subsidiary Applied Resins, S.L. The group
(‘Sewertronics’) was acquired for a total estimated consideration of €46.2m (£40.4m). The initial consideration comprised the cash and
debt free purchase price of €39.0m (£34.1m) plus cash of €1.9m (£1.6m). Maximum contingent consideration is €19.3m (£16.5m) of which
€18.0m (£15.4m) is payable dependent on profits achieved each year over the next two years to 31 March 2025. The remaining €1.3m
(£1.1m) relates to benefits associated with taxation and is payable to the seller over the next three years. The deferred purchase
consideration of €5.3m (£4.7m) represents the fair value of the estimated amounts payable recognised on acquisition and is due for
settlement over the next three years.
Based in Rseszów, Poland, Sewertronics’ technology repairs and rehabilitates wastewater pipelines without the need to dig a trench,
by inserting a lining into the pipe which is then cured using its innovative and patented ultraviolet (UV) LED technology. Sewertronics
will continue as a standalone company and is now part of the Group’s Environmental & Analysis sector.
On acquisition, acquired intangibles were recognised relating to customer related intangibles £11.7m; trade name £1.6m and technology
related intangibles £3.9m.
The residual goodwill of £23.7m represents:
a) the technical expertise of the acquired workforce;
b) the opportunity to leverage this expertise across some of the Group’s businesses through future technologies; and
c) the ability to exploit the Group’s existing customer base.
Sewertronics contributed £4.4m of revenue and £1.9m of profit after tax for the 11 month period to 31 March 2024. If this acquisition had
been held since the start of the financial year, it is estimated that the Group’s reported revenue and profit after tax would have been
£0.6m higher and £0.2m higher respectively.
Acquisition costs totalling £0.4m were recorded in the Consolidated Income Statement.
The goodwill arising on this acquisition is not expected to be deductible for tax purposes.
Halma plc | Annual Report and Accounts 2024 235
Governance Report Other InformationStrategic Report
Financial Statements
25 Acquisitions continued
c) Lazer Safe Pty. Ltd.

| £m
Non‑current assets |
Intangible assets | 15.0
Property, plant and equipment | 0.5
Deferred tax | 0.1
Current assets |
Inventories | 1.1
Trade and other receivables | 2.0
Cash and cash equivalents | 0.1
Total assets | 18.8
Current liabilities |
Payables | (1.2)
Borrowings | (2.5)
Lease liabilities | (0.1)
Non‑current liabilities |
Lease liabilities | (0.2)
Payables | (0.4)
Deferred tax liabilities | (4.6)
Total liabilities | (9.0)
Net assets of business acquired | 9.8
Initial cash consideration paid | 22.3
Other adjustments to consideration | (1.9)
Total consideration | 20.4
Total goodwill | 10.6

On 3 August 2023, the Group acquired the entire share capital of Lazer Safe Investments Pty Ltd and its subsidiary Lazer Safe Pty Ltd.
The group (‘Lazer Safe’) was acquired for a total estimated consideration of A$39.4m (£20.4m). The initial consideration comprised
the cash and debt free purchase price of A$45.0m (£22.8m) less debt of A$4.9m (£2.5m) plus amounts due from the shareholders
of A$2.9m (£1.5m). This initial consideration was adjusted for debt from shareholders of A$2.9m (£1.5m) and closing working capital
receivable of A$0.7m (£0.4m). The debt acquired of A$4.9m (£2.5m) was settled immediately post-acquisition. There is no contingent
consideration payable.
Based in Perth, Australia, Lazer Safe designs and manufactures control, safety and operator protection systems relating to press brake
and associated sheet metal machinery. The technology is designed to protect workers when they are operating machinery and is used
in a wide range of industrial markets. Lazer Safe will continue to be run under its own management team and has become part of
the Group’s Safety sector.
On acquisition, acquired intangibles were recognised relating to customer related intangibles £9.6m; trade names £1.6m and technology
related intangibles £3.8m.
The residual goodwill of £10.6m represents:
a) the technical expertise of the acquired workforce;
b) the opportunity to leverage this expertise across some of the Group’s businesses through future technologies; and
c) the ability to exploit the Group’s existing customer base.
Lazer Safe contributed £7.8m of revenue and £1.2m of profit after tax for the eight month period ended 31 March 2024. If this acquisition
had been held since the start of the financial year, it is estimated that the Group’s reported revenue and profit after tax would have
been £3.8m higher and £0.9m higher respectively. The lower margin post-acquisition is due to an increase in overheads and a negative
exchange impact.
Acquisition costs totalling £0.4m were recorded in the Consolidated Income Statement.
The goodwill arising on this acquisition is not expected to be deductible for tax purposes.
236 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
25 Acquisitions continued
d) Visual Imaging Resources LLC

| £m
Non‑current assets |
Intangible assets | 1.6
Property, plant and equipment | 0.8
Current assets |
Inventories | 1.3
Trade and other receivables | 0.4
Total assets | 4.1
Current liabilities |
Payables | (1.6)
Provisions | (0.1)
Non‑current liabilities |
Lease liabilities | (0.3)
Deferred tax liabilities | (0.5)
Total liabilities | (2.5)
Net assets of business acquired | 1.6
Initial cash consideration paid | 2.4
Other adjustments | (0.2)
Contingent purchase consideration including retentions estimated to be paid | 1.6
Total consideration | 3.8
Total goodwill | 2.2

On 24 April 2023, the Group acquired certain trade and assets of Visual Imaging Resources LLC (‘VIR’) for a total estimated consideration
of US$4.8m (£3.8m). The initial consideration comprised the cash and debt free purchase price of US$2.8m (£2.2m) less adjustments for
working capital balances determined to be US$0.2m (£0.2m) which have been settled. Maximum contingent consideration is US$3.9m
(£3.1m) of which US$3.6m (£3.0m) is payable based on gross margin of a maximum of US$1.2m (£1.0m) per year for the three years
ending 31 March 2026. The remaining US$0.3m (£0.2m) relates to a retention amount held in place of escrow balances and is due
12 months from the date of acquisition. The deferred purchase consideration recognised of US$1.9m (£1.6m) represents the fair value of the
estimated amounts payable recognised on acquisition and is due for settlement over the next three years.
VIR is the USA service and distribution partner for Minicam, a company in the Group’s Environmental & Analysis sector.
The excess of the fair value of the consideration paid over the fair value of the assets acquired is represented by customer related
intangibles of £1.6m; with residual goodwill arising of £2.2m.
VIR contributed £7.8m of revenue and £0.1m of profit after tax for the 11 months ended 31 March 2024. If this acquisition had been held since
the start of the financial year, it is estimated that the Group’s reported revenue and profit after tax would have been £0.2m higher and
£0.0m higher respectively.
Acquisition costs totalling £0.1m were recorded in the Consolidated Income Statement.
The goodwill arising on this acquisition is expected to be deductible for tax purposes.
Halma plc | Annual Report and Accounts 2024 237
Governance Report Other InformationStrategic Report
Financial Statements
25 Acquisitions continued
e) AprioMed AB

| £m
Non‑current assets |
Intangible assets | 5.8
Property, plant and equipment | 0.2
Deferred tax | 0.1
Current assets |
Inventories | 1.3
Trade and other receivables | 0.5
Cash and cash equivalents | 0.6
Total assets | 8.5
Current liabilities |
Payables | (0.2)
Provisions | (0.1)
Non‑current liabilities |
Lease liabilities | (0.1)
Deferred tax liabilities | (1.3)
Total liabilities | (1.7)
Net assets of business acquired | 6.8
Initial cash consideration paid | 8.7
Other adjustments | 0.6
Contingent purchase consideration including retentions estimated to be paid | 1.0
Total consideration | 10.3
Total goodwill | 3.5

On 2 October 2023, the Group acquired the entire share capital of AprioMed AB and its subsidiary AprioMed Inc. The group (‘AprioMed’)
was acquired for a total estimated consideration of SEK 138.1m (£10.3m). The initial consideration comprised the cash and debt free purchase
price of SEK 117.0m (£8.7m) plus cash of SEK 7.4m (£0.6m). The initial consideration was adjusted for working capital adjustments of SEK
8.1m (£0.6m). Retention amounts to be paid include SEK 13.8m (£1.0m) held in escrow balances and is due for settlement 12 months from
the date of acquisition.
Based in Sweden, AprioMed designs, manufactures and distributes medical devices used for bone biopsies. AprioMed was bought as a
bolt-on for the Group’s IZI business and so joins the Healthcare sector.
On acquisition, acquired intangibles were recognised relating to customer related intangibles of £2.0m; trade name of £0.6m and
technology related intangibles of £3.2m. The residual goodwill of £3.5m represents:
a) the technical expertise of the acquired workforce;
b) the opportunity to leverage this expertise across some of Halma’s businesses through future technologies; and
c) the ability to exploit the Group’s existing customer base.
AprioMed contributed £1.7m of revenue and £0.6m of profit after tax for the year ended 31 March 2024. If this acquisition had been held
since the start of the financial year, it is estimated that the Group’s reported revenue and profit after tax would have been £2.4m higher
and £0.6m higher respectively.
Acquisition costs totalling £0.2m were recorded in the Consolidated Income Statement.
The goodwill arising on this acquisition is not expected to be deductible for tax purposes.
238 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
25 Acquisitions continued
f) Alpha Instrumatics Group

| £m
Non‑current assets |
Intangible assets | 14.9
Property, plant and equipment | 0.9
Deferred tax | 0.2
Current assets |
Inventories | 1.7
Trade and other receivables | 1.0
Cash and cash equivalents | 4.9
Total assets | 23.6
Current liabilities |
Payables | (0.5)
Lease liabilities | (0.2)
Tax liabilities | (0.4)
Non‑current liabilities |
Lease liabilities | (0.4)
Provisions | (0.1)
Deferred tax liabilities | (3.8)
Total liabilities | (5.4)
Net assets of business acquired | 18.2
Initial cash consideration paid | 35.1
Contingent purchase consideration estimated to be paid | 2.4
Total consideration | 37.5
Total goodwill | 19.3

On 25 October 2023, the Group acquired the entire share capital of Alpha Instrumatics Holding Company Limited and its subsidiaries
(AMSGRO Limited, Alpha Moisture Systems Limited, Shaw Moisture Meters (UK) Limited and Wetherby Engineers (UK) Limited). The
group (‘Alpha’) was acquired for a total estimated consideration of £37.5m. The initial consideration comprised the cash and debt free
purchase price of £30.2m plus cash of £4.9m. The initial consideration was adjusted for £5.9m owed by the shareholders, which was
transferred to Group and deducted from the initial cash consideration paid. Maximum contingent consideration is £2.8m which is payable
dependent on profits achieved each year over the two years to 31 March 2025. The deferred purchase consideration recognised of £2.4m
represents the fair value of the estimated amounts payable recognised on acquisition and is due for settlement over the next year.
Based in Bradford, UK, Alpha designs and manufactures devices for high-precision measurement of trace moisture found in gases. Alpha
was bought as a bolt-on for the Group’s Alicat business and so joins the Environmental & Analysis sector.
On acquisition, acquired intangibles were recognised relating to customer related intangibles of £6.7m; trade name of £0.7m and
technology related intangibles of £7.5m.
The residual goodwill of £19.3m represents:
a) the technical expertise of the acquired workforce;
b) the opportunity to leverage this expertise across some of Halma’s businesses through future technologies; and
c) the ability to exploit the Group’s existing customer base.
Alpha contributed £3.4m of revenue and £1.2m of profit after tax for the year ended 31 March 2024. If this acquisition had been held since
the start of the financial year, it is estimated that the Group’s reported revenue and profit after tax would have been £4.8m higher and
£1.5m higher respectively.
Acquisition costs totalling £0.6m were recorded in the Consolidated Income Statement.
The goodwill arising on this acquisition is not expected to be deductible for tax purposes.
Halma plc | Annual Report and Accounts 2024 239
Governance Report Other InformationStrategic Report
Financial Statements
25 Acquisitions continued
g) TeDan Group

| £m
Non‑current assets |
Intangible assets | 34.3
Property, plant and equipment | 4.9
Current assets |
Inventories | 11.5
Trade and other receivables | 5.3
Cash and cash equivalents | 0.3
Total assets | 56.3
Current liabilities |
Payables | (2.8)
Borrowings | (7.9)
Lease liabilities | (0.3)
Non‑current liabilities |
Lease liabilities | (1.1)
Deferred tax liabilities | (1.1)
Total liabilities | (13.2)
Net assets of business acquired | 43.1
Initial cash consideration paid | 63.7
Contingent purchase consideration including retentions estimated to be paid | 8.9
Total consideration | 72.6
Total goodwill | 29.5

On 16 November 2023, the Group acquired the entire share capital of TeDan Surgical Innovations, Inc., TeDan Surgical Innovations
GmbH, West Coast Surgical LLC, Axcess Surgical Innovations, LLC, and their subsidiaries (TeDan Surgical Innovations B.V., Axcess
Surgical Innovations B.V.). The group (‘TeDan’) was acquired for a total estimated consideration of US$90.3m (£72.6m). The initial
consideration comprised the cash and debt free purchase price of US$88.6m (£71.3m) less debt US$9.9m (£7.9m), plus cash of US$0.4m
(£0.3m). The initial consideration was adjusted for working capital adjustments of US$0.1m (£0.1m) which was deducted from the
initial cash consideration paid. The debt acquired of US$9.9m (£7.9m) was repaid immediately post-acquisition. Maximum contingent
consideration is US$11.1m (£8.9m) of which US$10.9m (£8.7m) is payable dependent on profits achieved in the year to 31 December 2023
or the year to 31 December 2024 which was settled in April 2024. The remaining US$0.2m (£0.2m) reflects a retention balance held is due
for settlement within the next twelve months.
Based in Houston, Texas and Half Moon Bay, California, USA, TeDan is a global leader in innovative surgical access systems, which it
develops, manufactures and supplies to surgeons for use in a range of acute therapeutic procedures. Its primary market is access systems
for spinal surgery. TeDan will be a standalone company in the Group’s Healthcare sector, led by its current management team.
On acquisition, acquired intangibles were recognised relating to customer related intangibles £16.5m; trade name £4.3m and technology
related intangibles £13.5m. The residual goodwill of £29.5m represents:
a) the technical expertise of the acquired workforce;
b) the opportunity to leverage this expertise across some of Halma’s businesses through future technologies; and
c) the ability to exploit the Group’s existing customer base.
Tedan contributed £9.7m of revenue and £1.6m of profit after tax for the year ended 31 March 2024. If this acquisition had been held since
the start of the financial year, it is estimated that the Group’s reported revenue and profit after tax would have been £15.4m higher and
£2.6m higher respectively.
Acquisition costs totalling £1.4m were recorded in the Consolidated Income Statement.
The goodwill arising on this acquisition is expected to be deductible for tax purposes.
240 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
25 Acquisitions continued
h) Ziegler Electronic Devices GmbH

| £m
Non‑current assets |
Intangible assets | 8.1
Property, plant and equipment | 2.0
Deferred tax | 0.3
Current assets |
Inventories | 1.6
Trade and other receivables | 1.2
Cash and cash equivalents | 0.5
Total assets | 13.7
Current liabilities |
Payables | (0.9)
Tax liabilities | (0.2)
Non‑current liabilities |
Deferred tax liabilities | (2.3)
Total liabilities | (3.4)
Net assets of business acquired | 10.3
Initial cash consideration paid | 13.8
Other amounts to be paid | 0.1
Contingent purchase consideration including retentions estimated to be paid | 0.8
Total consideration | 14.7
Total goodwill | 4.4

On 15 December 2023, the Group acquired the entire share capital of Ziegler Electronic Devices GmbH (‘ZED’), for a total estimated
consideration of €17.0m (£14.7m). The initial consideration comprised the cash and debt free purchase price of €15.4m (£13.4m), plus cash of
€0.6m (£0.5m). Working capital adjustments of €0.1m (£0.1m) have yet to be finalised and settled but are expected to be added to cash
consideration. Retention amounts to be paid include €1.0m (£0.8m) held in a deposit account and is due for settlement within the next
12 months.
Based in Erfurt, Germany, ZED is a designer and manufacturer of ballasts and sensors for UV sterilization for OEM system manufacturers.
ZED develops tailor-made control systems for a variety of water, air, and surfaces purification applications. ZED was bought as a bolt-on
for the Group’s Nuvonic businesses and so joins the Environmental & Analysis sector.
On acquisition, acquired intangibles were recognised relating to customer related intangibles £4.6m; trade name £0.6m and
technology-related intangibles £2.9m.
The residual goodwill of £4.4m represents:
a) the technical expertise of the acquired workforce;
b) the opportunity to leverage this expertise through future technologies across the Group’s businesses, notably Nuvonic, within the
Environmental & Analysis sector; and
c) the ability to exploit the Group’s existing customer base.
ZED contributed £1.4m of revenue and £0.4m of profit after tax for the year ended 31 March 2024. If this acquisition had been held since
the start of the financial year, it is estimated that the Group’s reported revenue and profit after tax would have been £4.0m higher and
£1.3m higher respectively.
Acquisition costs totalling £0.2m were recorded in the Consolidated Income Statement.
The goodwill arising on this acquisition is not expected to be deductible for tax purposes.
Halma plc | Annual Report and Accounts 2024 241
Governance Report Other InformationStrategic Report
Financial Statements
25 Acquisitions continued
i) Rovers Medical Devices B.V.

| £m
Non‑current assets |
Intangible assets | 58.5
Property, plant and equipment | 6.8
Deferred tax | 0.1
Current assets |
Inventories | 0.4
Trade and other receivables | 1.6
Cash and cash equivalents | 0.3
Total assets | 67.7
Current liabilities |
Payables | (1.5)
Borrowings | (6.7)
Non‑current liabilities |
Deferred tax liabilities | (15.1)
Total liabilities | (23.3)
Net assets of business acquired | 44.4
Initial cash consideration paid | 66.0
Other adjustments | (0.5)
Contingent purchase consideration estimated to be paid | 0.7
Total consideration | 66.2
Total goodwill | 21.8

On 1 March 2024, the Group acquired the entire share capital of R M Invest B.V. and Rovers Vastgoed B.V. and its subsidiary Rovers Medical
Devices B.V. (‘Rovers’), for a total estimated consideration of €77.3m (£66.2m). The initial consideration comprised the cash and debt free
purchase price of €84.7m (£71.9m), less debt of €7.9m (£6.7m), plus cash of €0.3m (£0.3m). Initial cash consideration was reduced by
working capital adjustments of €0.6m (£0.5m). The debt acquired of €7.9m (£6.7m) was repaid immediately post-acquisition. Maximum
contingent consideration of €6.0m (£5.1m) is payable dependent on profits achieved over the period 1 October 2023 to 31 March 2025. The
deferred purchase consideration recognised of €0.8m (£0.7m) represents the fair value of the estimated amounts payable recognised on
acquisition.
Based in Oss in the Netherlands, Rovers designs and manufactures sample collection devices used in the prevention and diagnostics of
cervical cancer. Rovers will be a standalone company within the Group’s Healthcare sector, led by its current management team.
On acquisition, acquired intangibles were recognised relating to customer related intangibles £25.7m; trade name £11.3m and technology
related intangibles £21.5m. The residual goodwill of £21.8m represents:
a) the technical expertise of the acquired workforce;
b) the opportunity to leverage this expertise across some of Halma’s businesses through future technologies; and
c) the ability to exploit the Group’s existing customer base.
Rovers contributed £1.0m of revenue and £0.4m of profit after tax for the year ended 31 March 2024. If this acquisition had been held since
the start of the financial year, it is estimated that the Group’s reported revenue and profit after tax would have been £9.0m higher and
£3.4m higher respectively.
Acquisition costs totalling £0.4m were recorded in the Consolidated Income Statement.
The goodwill arising on this acquisition is not expected to be deductible for tax purposes
242 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
25 Acquisitions continued
j) Adjustments arising on prior year acquisitions

| £m
Non‑current assets |
Intangible assets | (0.5)
Property, plant and equipment | (0.1)
Deferred tax | 0.2
Current assets |
Inventories | 0.2
Trade and other receivables | (0.2)
Total assets | (0.4)
Current liabilities |
Tax liabilities | (0.2)
Total liabilities | (0.2)
Net adjustment to assets of businesses acquired in prior year | (0.6)
Adjustment to goodwill | 0.6

In finalising the acquisition accounting for the prior year acquisition of WEETECH Holding GmbH adjustments were made to the fair
value of inventory to align the inventory provisions and valuation of work in progress. An adjustment was also made to property, plant
and equipment to align depreciation. This resulted in a reduction in goodwill of £0.3m.
In finalising the acquisition accounting for the prior year acquisition of FirePro Group, adjustments were made to the accrued corporation
tax liability and the fair value of property, plant and equipment to align the depreciation to Halma policy. This resulted in an increase in
goodwill of £0.3m.
In finalising the acquisition accounting for the prior year acquisition of IZI Healthcare Products LLC, adjustments were made to the fair
value of acquired intangibles resulting in an increase in goodwill of £0.4m. Smaller adjustments were also made to inventory provisions
and debtors provisions to accurately reflect the fair value, resulting in a goodwill increase of £0.2m.
These adjustments are not material and as such the comparative balance sheet was not restated; instead, the adjustments have been
made in the current year.
Halma plc | Annual Report and Accounts 2024 243
Governance Report Other InformationStrategic Report
Financial Statements
26 Notes to the Consolidated Cash Flow Statement

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Reconciliation of profit from operations to net cash inflow from operating activities: |  |
Profit on continuing operations before finance income and expense, share of results of associate |  |
and profit on disposal of operations | 367.7 | 308.4
Non-cash movement on hedging instruments | 0.4 | 0.1
Depreciation and impairment of property, plant and equipment | 44.4 | 41.5
Amortisation and impairment of computer software | 1.8 | 2.2
Amortisation of capitalised development costs and other intangibles | 9.9 | 9.2
Impairment of capitalised development costs | 3.0 | 0.5
Amortisation of acquired intangible assets | 49.5 | 48.7
Impairment of acquired intangible assets | – | 7.8
Share-based payment expense in excess of amounts paid | 16.9 | 12.9
Payments to defined benefit pension plans net of service costs | (3.0) | (15.1)
Profit on sale of property, plant and equipment, capitalised development costs and computer software | (0.2) | (0.8)
Operating cash flows before movement in working capital | 490.4 | 415.4
Decrease/(increase) in inventories | 19.6 | (54.9)
Increase in receivables | (46.4) | (52.4)
Increase in payables and provisions | 13.8 | 15.1
Revision to estimate and exchange difference on contingent consideration payable less amounts paid in excess of payable estimated on acquisition | (5.2) | 2.0
Cash generated from operations | 472.2 | 325.2
Taxation paid | (87.2) | (67.2)
Net cash inflow from operating activities | 385.0 | 258.0

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Analysis of cash and cash equivalents |  |
Cash and bank balances | 142.7 | 169.5
Overdrafts (included in current borrowings) | (0.3) | (1.0)
Cash and cash equivalents | 142.4 | 168.5

|  |  | Net |  |  |  |
| 31 March |  | cash/(debt) | Net cash/(debt) | Additions and | Exchange | 31 March
| 2023 | Cash flow | acquired | disposed | reclassifications | adjustments | 2024
| £m | £m | £m | £m | £m | £m | £m
Analysis of net debt |  |  |  |  |  |  |
Cash and bank balances | 169.5 | (29.8) | 8.3 | (0.1) | – | (5.2) | 142.7
Overdrafts | (1.0) | 0.6 | – | – | – | 0.1 | (0.3)
Cash and cash equivalents | 168.5 | (29.2) | 8.3 | (0.1) | – | (5.1) | 142.4
Loan notes falling due after more than one year | (376.9) | – | – | – | – | 6.0 | (370.9)
Bank loans falling due within one year | – | 17.1 | (17.1) | – | – | – | –
Bank loans falling due after more than one year | (300.4) | (47.5) | – | – | – | 6.9 | (341.0)
Lease liabilities | (87.9) | 24.1 | (3.2) | – | (18.3) | 1.6 | (83.7)
Total net debt | (596.7) | (35.5) | (12.0) | (0.1) | (18.3) | 9.4 | (653.2)

The net reduction in cash and cash equivalents of £21.0m comprised net cash outflow of £29.2m and net cash acquired of £8.2m.
The movement in bank loans in the year represents the proceeds and repayments of bank borrowings and the borrowings acquired as a
result of acquisition.
244 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
26 Notes to the Consolidated Cash Flow Statement continued
Reconciliation of movements of the Group’s liabilities from financing activities
Liabilities from financing activities are those for which cash flows were, or will be, classified as cash flows from financing activities in the
Consolidated Cash Flow Statement.

|  |  |  |  | Trade
|  |  |  |  | and other
|  |  |  |  | payables
|  |  |  | Total liabilities | falling
|  |  |  | from financing | due within
| Borrowings * | Leases | Overdraft | activities | one year
| £m | £m | £m | £m | £m
At 1 April 2022 | 359.4 | 72.1 | 0.7 | 432.2 | 242.7
Cash flows from financing activities | 256.1 | (20.9) | – | 235.2 | (14.4)
Acquisition/disposal of subsidiaries | 65.1 | 9.3 | – | 74.4 | 8.7
Exchange adjustments | (3.3) | 2.5 | – | (0.8) | 12.7
Other changes | – | 24.9 | 0.3 | 25.2 | 31.0
At 31 March 2023 | 677.3 | 87.9 | 1.0 | 766.2 | 280.7
Cash flows from financing activities | 30.4 | (24.1) | – | 6.3 | (26.4)
Acquisition/disposal of subsidiaries | 17.1 | 3.2 | – | 20.3 | 6.9
Exchange adjustments | (12.9) | (1.6) | (0.1) | (14.6) | (4.8)
Other changes | – | 18.3 | (0.6) | 17.7 | 40.1
At 31 March 2024 | 711.9 | 83.7 | 0.3 | 795.9 | 296.5

**
**
* Excluding overdrafts
** Other changes include movements in overdraft which is treated as cash, interest accruals, reclassifications from non-current to current liabilities, lease additions and
other movements in working capital balances.
27 Financial instruments
Policy
The Group’s treasury policies seek to minimise financial risks and to ensure sufficient liquidity for the Group’s operations and strategic
plans. No complex derivative financial instruments are used and derivative transactions are only entered into to hedge known exposures,
and no trading or speculative transactions in financial instruments are undertaken. Where the Group does use financial instruments,
these are mainly to manage the currency risks arising from normal operations and its financing. Operations are financed mainly through
retained profits and, in certain geographic locations, bank borrowings. Foreign currency risk is the most significant aspect for the Group
in the area of financial instruments. It is exposed to a lesser extent to other risks such as interest rate risk and liquidity risk. The Board
reviews and agrees policies for managing each of these risks and these policies are summarised below. The Group’s policies have
remained unchanged since the beginning of the financial year.
Details of the material accounting policy information and methods adopted (including the criteria for recognition, the basis of
measurement and the bases of recognition of income and expenses) for each class of financial asset, financial liability and equity
instrument are disclosed in the Accounting Policies note.
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the
return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of debt,
which includes the borrowings disclosed in note 19 to the Financial Statements, cash and cash equivalents and equity attributable to
equity holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in the Consolidated Statement of
Changes in Equity.
The Group is not subject to externally imposed capital requirements.
Foreign currency risk
The Group is exposed to foreign currency risk as a consequence of both trading with foreign companies and owning subsidiaries located
in foreign countries.
The Group earns a significant proportion of its profit in currencies other than Sterling. This gives rise to translational currency risk, where
the Sterling value of profits earned by the Group’s foreign subsidiaries fluctuates with the strength of Sterling relative to their operating
(or ‘functional’) currencies. The Group does not hedge this risk, so its reported profit is sensitive to the strength of Sterling, particularly
against the US Dollar and Euro. The Group also has transactional currency exposures. These arise on sales or purchases by operating
companies in currencies other than the companies’ operating (or ‘functional’) currency. Significant sales and purchases are matched
where possible and a proportion of the net exposure is hedged by means of forward foreign currency contracts.
The Group has significant investments in overseas operations in the US and EU, with further investments in Australia, New Zealand,
Canada, Denmark, Poland, Sweden, Switzerland, Brazil, China and India. As a result, the Group’s balance sheet can be affected by
movements in these jurisdiction’s exchange rates. Where significant and appropriate, currency denominated net assets are hedged
by currency borrowings. These currency exposures are reviewed regularly.
Interest rate risk
The Group is exposed to interest rate fluctuations on its borrowings and cash deposits. Where bank borrowings are used to finance
operations they tend to be short-term with floating interest rates. Longer-term funding is provided by the Group’s bank loan facilities
which are at floating rates, or by the Group’s fixed rate United States Private Placements completed in November 2015 and May 2022.
Surplus funds are placed on short-term fixed rate deposit or in floating rate deposit accounts.
Halma plc | Annual Report and Accounts 2024 245
Governance Report Other InformationStrategic Report
Financial Statements
27 Financial instruments continued
Credit risk
Credit risk is defined as the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.
The Group has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from
defaults. Credit ratings are supplied by independent agencies where available, and if not available, the Group uses other publicly available
financial information and its own trading records to rate its major customers. Credit exposure is controlled by counterparty limits that
are reviewed regularly.
Trade receivables consist of a large number of customers, spread across diverse industries and geographic areas. Ongoing credit evaluation
is performed on the financial condition of accounts receivable and, where appropriate, credit guarantee insurance cover is purchased.
The carrying amount of trade, tax and other receivables, contract assets, derivative financial instruments and cash of £590.3m
(2023: £567.9m) represents the Group’s maximum exposure to credit risk as no collateral or other credit enhancements are held.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings
assigned by international credit-rating agencies. There have been no changes to the credit ratings of these counterparties in the last
financial year.
Liquidity risk
The Group has a syndicated multi-currency revolving credit facility of £550m. The facility, in Sterling, US Dollar, Euro, Australian Dollar and
Swiss Franc, currently runs to May 2028 after the exercising the first two one-year extension options during the year. Since the end of the
year, the second one-year extension has been exercised, with the subsequent maturity date now May 2029.
In May 2022, a Private Placement of £330m was completed, and £35m of the November 2015 United States Private Placement remains.
Subsequent the year-end a new Private Placement of £336m was completed. These facilities are the main sources of long-term funding
for the Group with further detail below in the Borrowing facilities section.
The financial covenants on the facilities at year-end are for leverage (net debt/adjusted EBITDA) of not more than 3.5 times and for
adjusted interest cover of not less than four times. All covenants have been complied with.
The Group has a strong cash flow and the funds generated by operating companies are managed regionally based on geographic location.
Funds are placed on deposit with secure, highly-rated banks. For short-term working capital purposes, some operating companies utilise
local bank overdrafts. These practices allow a balance to be maintained between continuity of funding, security and flexibility.
Currency exposures
Translational exposures
It is estimated, by reference to the Group’s US Dollar and Euro denominated profits, that a one per cent change in the value of the US
Dollar relative to Sterling would have had a £2.2m (2023: £2.0m) impact on the Group’s reported profit before tax; and a one per cent
change in the value of the Euro relative to Sterling would have had a £0.6m (2023: £0.5m) impact on the Group’s reported profit
before tax for the year ended 31 March 2024.
Transactional exposures
The Group has net foreign currency monetary assets and liabilities that are assets and liabilities not denominated in the functional
currency of the underlying company. These comprise cash and overdrafts as well as certain trade receivable and payable balances.
These foreign currency monetary assets and liabilities give rise to the net currency gains and losses recognised in the Consolidated
Income Statement as a result of movement in exchange rates. The exposures are predominantly US Dollar and Euro. Group policy is
for a significant portion of foreign currency exposures, including sales and purchases, to be hedged by forward foreign exchange
contracts in the company in which the transaction is recorded.
Interest rate risk profile
The Group’s financial assets which are subject to interest rate fluctuations comprise interest-bearing cash equivalents which totalled
£23.7m at 31 March 2024 (2023: £3.0m). These comprised Sterling denominated bank deposits of £11.7m (2023: £1.0m), Euro bank deposits
of £7.0m (2023: £1.7m), US Dollar bank deposits of £4.5m (2023: £0.2m) and Renminbi bank deposits of £0.5m (2023: £0.1m) which earn
interest at local market rates. Cash balances of £119.0m (2023: £166.5m) earn interest at local market rates.
The financial liabilities which are subject to interest rate fluctuations comprise bank loans and overdrafts which totalled £341.3m at
31 March 2024 (2023: £301.4m). Bank loans bear interest at floating rates based either on the EURIBOR or risk-free overnight rates of
the currency in which the liabilities arise plus a margin. Bank overdrafts bear interest at local market rates. Where interest is based on
EURIBOR rates the fixed period can be up to six months.
The loan notes related to the United States Private Placement attract interest at a weighted average fixed rate of 2.82%.
246 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
27 Financial instruments continued
The Group’s weighted average interest cost on net debt for the year was 4.47% (2023: 3.67%). Excluding IFRS 16 lease liabilities,
the weighted average interest cost on net debt for the year was 4.59% (2023: 3.71%).

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Analysis of interest‑bearing financial liabilities |  |
Sterling denominated bank loans | – | 45.0
US Dollar denominated bank loans | 83.9 | 80.8
Euro denominated bank loans | 213.2 | 143.6
Swiss Franc denominated bank loans | 43.9 | 31.0
Total bank loans | 341.0 | 300.4
Overdrafts (principally Sterling and US Dollar denominated) | 0.3 | 1.0
Sterling denominated loan notes | 120.0 | 120.0
US Dollar denominated loan notes | 79.2 | 80.8
Euro denominated loan notes | 136.6 | 140.6
Swiss Franc denominated loan notes | 35.1 | 35.5
Total interest‑bearing financial liabilities | 712.2 | 678.3

For the year ended 31 March 2024, it is estimated that a general increase of one percentage point in interest rates would have reduced
the Group’s profit before tax by £3.0m (2023: £1.7m).
Maturity of financial liabilities
The gross contractual maturities of the Group’s non-derivative financial liabilities that are neither current nor on demand are as follows.

|  | Between | After more |  | Effect of |
| One to | two and | than | Gross | discounting/ |
| two years | five years | five years | maturities | financing rates | Total
| £m | £m | £m | £m | £m | £m
At 31 March 2024 |  |  |  |  |  |
Accruals | 0.1 | 0.2 | 0.4 | 0.7 | – | 0.7
Other payables | 1.8 | 0.2 | 2.1 | 4.1 | – | 4.1
Contingent purchase consideration | 3.9 | 0.8 | – | 4.7 | – | 4.7
Bank loans | – | 341.0 | – | 341.0 | – | 341.0
Loan notes | 45.6 | 163.8 | 205.6 | 415.0 | (44.1) | 370.9
Lease liabilities | 19.8 | 41.9 | 21.8 | 83.5 | (19.3) | 64.2
| 71.2 | 547.9 | 229.9 | 849.0 | (63.4) | 785.6

|  | Between | After more |  | Effect of |
| One to | two and | than | Gross | discounting/ |
| two years | five years | five years | maturities | financing rates | Total
| £m | £m | £m | £m | £m | £m
At 31 March 2023 |  |  |  |  |  |
Accruals | 0.3 | 0.1 | 0.2 | 0.6 | – | 0.6
Other payables | 1.6 | 0.1 | 1.3 | 3.0 | – | 3.0
Contingent purchase consideration | 3.2 | – | – | 3.2 | – | 3.2
Bank loans | – | 300.4 | – | 300.4 | – | 300.4
Loan notes | 10.8 | 158.3 | 263.5 | 432.6 | (55.7) | 376.9
Lease liabilities | 18.9 | 38.4 | 21.0 | 78.3 | (9.6) | 68.7
| 34.8 | 497.3 | 286.0 | 818.1 | (65.3) | 752.8

The Group’s bank loans are revolving credit facilities and the amount and timing of future payments and drawdowns is unknown. It is
therefore not possible to calculate the interest arising on these loans and we have therefore not disclosed the maturity of the gross cash
flows (including interest) in relation to these liabilities.
Halma plc | Annual Report and Accounts 2024 247
Governance Report Other InformationStrategic Report
Financial Statements
27 Financial instruments continued
Borrowing facilities
The Group’s principal sources of long-term funding are its unsecured five-year £550m Revolving Credit Facility, its £330m United States
Private Placement completed in May 2022 and £35m of United States Private Placement completed in November 2015.
The Revolving Credit Facility was refinanced in May 2022 and matures in May 2027 with two one-year extension options. During the year,
the first one-year extension was exercised and since the end of the year, the second one-year extension has been exercised, with the
subsequent maturity date of May 2029.
The United States Private Placement of £330m was completed in May 2022. The unsecured loan notes were drawn on 12 July 2022 as £85m,
€160m, US$100m and CHF40m at a weighted average fixed interest rate of 2.81%. The loan notes have yearly maturities from year four
to year ten, with the first tranche of £48m maturing in July 2026. Interest is payable half yearly. Unsecured loan notes of £35m drawn on
6 January 2016 at a fixed interest rate of 3.05% remain outstanding and mature in January 2026.
Subsequent to the year-end, in April 2024, a new Private Placement of £336m was completed. The issuance consists of a US Dollar tranche
of US$110m maturing in April 2035 , with an amortisation profile giving it a 9.5 year average life and a Euro tranche of €290m maturing in
April 2034, with an amortisation profile giving it a 7.75 year average life.
The Group has an additional short-term unsecured and committed US bank facility of £6.0m maturing in May 2027. The facility was
undrawn at 31 March 2024.
Other short-term operational funding is provided by cash generated from operations and by local bank overdrafts. These overdraft
facilities are uncommitted and are generally renewed on an annual or ongoing basis and hence the facilities expire within one year or less.
As part of our cash pooling arrangements UK companies have cross-guaranteed net overdraft facilities of £18.1m (2023: £13.2m).
Total net overdrafts relating to cash pooling as at 31 March 2024 were £nil (2023: £nil). Total overdrafts for the Group as at 31 March 2024
were £0.3m (2023: £1.0m).
Fair values of financial assets and financial liabilities
With the exception of the Group’s fixed rate loan notes, there were no significant differences between the book value and fair value
(as determined by market value) of the Group’s financial assets and liabilities.
The fair value of floating borrowings approximates to the carrying value because interest rates are reset to market rates at intervals of less
than one year.
The fair value of the Group’s fixed rate loan notes arising from the United States Private Placement completed in May 2022 is estimated to
be £348.9m. The fair value is estimated by discounting the future contracted cash flow using readily available market data and represents
a level 2 measurement in the fair value hierarchy under IFRS 7.
The fair value of derivative financial instruments is estimated by discounting the future contracted cash flow, using readily available
market data, and represents a level 2 measurement in the fair value hierarchy under IFRS 7.
The fair value of equity investments held at fair value through other comprehensive income is based on the latest observable price where
available. Where there are no recent observable prices, adjustments are made based on qualitative indicators, such as the financial
performance of the entity, performance against operational milestones and future outlook. This represents a level 3 measurement in
the fair value hierarchy under IFRS 7.
The fair value of deferred contingent consideration arising on acquisitions is calculated by estimating the possible future cash flows for
the acquired company identified as best, base and worst-case scenarios, using probability weightings of 25%, 50% and 25% respectively.
These scenarios are based on management’s knowledge of the business and how the current economic environment is likely to impact it.
The relevant future cash flows are dependent on the specific terms of the sale and purchase agreement.
Those terms are as follows:
• Sewertronics – Based on EBIT for the year ending 31 March 2025 as a multiple of 10x EBIT above a threshold. The threshold is equal
to the EBIT achieved in the first earnout period for the year ending 31 March 2024 increased by 15%. The maximum earnout is
€10.0m (£8.5m).
• Alpha Instruments – Based on EBIT for the year ending 31 March 2025 as a multiple of 6.5x EBIT above a threshold of £3.9m.
The maximum earnout is £2.8m.
• Rovers – Based on EBIT for the 12 months ending 30 September 2024 or 31 March 2025 (dependent on the first period to reach the
EBIT threshold) as a multiple of 7x EBIT above a threshold of €6.8m. The maximum earnout is €6.0m (£5.1m).
• VIR – Based on gross margin for the 12 months ending 31 March 2025 and 31 March 2026. The maximum earnout is $1.2m (£1.0m)
per year.
This calculation represents a level 3 measurement in the fair value hierarchy under IFRS 7. The fair value is sensitive to the weighting
assigned to the expected future cash flows. For those earnouts where the payable is based on expectations of future cash flows, a
change in weighting of 10 percentage points towards the best-case scenario would result in an increase in the estimate of future
cash flows as follows:

| Current | 10 pp shift
| expected | in weighting
| future | towards upside
| cash flow | expectation
| £m | £m
Sewertronics | – | –
Alpha Instruments | 0.6 | 0.9
Rovers | 0.7 | 0.9
VIR | 0.9 | 1.1

248 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
27 Financial instruments continued
Classification of financial assets and liabilities
All financial assets and liabilities, with the exception of financial assets at fair value through other comprehensive income, derivatives
and contingent purchase consideration, are classified as amortised cost for accounting purposes.
Derivatives in a hedging relationship are classified as cash flow hedging instruments. Derivatives not in a hedging relationship are
classified as fair value through profit or loss.
Contingent purchase consideration is classified as fair value through profit or loss.
Hedging
The Group’s policy is to hedge significant sales and purchases denominated in foreign currency using forward currency contracts.
In addition, during the year the group entered into a pre-issuance hedge contract to fix the interest rate on the Private Placement
completed post year-end in April 2024. These instruments are initially recognised at fair value, which is typically £nil, and subsequent
changes in fair value are taken to the Consolidated Income Statement, unless hedge accounted.
The following table details the foreign currency and interest rate contracts outstanding as at the year end, which mostly mature within
one year and, therefore, the cash flows and resulting effect on profit and loss are expected to occur within the next 12 months:

|  | Average exchange rate/£ |  | Foreign currency |  | Contract value |  | Fair value
|  |  | 31 March | 31 March | 31 March | 31 March | 31 March | 31 March
| 31 March | 31 March | 2024 | 2023 | 2024 | 2023 | 2024 | 2023
| 2024 | 2023 | m | m | £m | £m | £m | £m
Foreign currency forward contracts |  |  |  |  |  |  |  |
not in a designated cash flow hedge |  |  |  |  |  |  |  |
US Dollars vs GBP | 1.27 | 1.21 | 0.5 | 4.5 | 0.4 | 3.7 | – | (0.1)
Euros vs GBP | 1.17 | 1.13 | 5.8 | 0.6 | 4.9 | 0.5 | – | –
Other currencies | – | – | – | – | 18.9 | 6.7 | (0.6) | (0.1)
Foreign currency forward contracts |  |  |  |  | 24.2 | 10.9 | (0.6) | (0.2)
in a designated cash flow hedge |  |  |  |  |  |  |  |
US Dollars vs GBP | 1.26 | 1.20 | 15.9 | 17.6 | 12.6 | 13.4 | 0.1 | 0.7
Euros vs GBP | 1.15 | 1.13 | 29.6 | 29.0 | 25.3 | 25.5 | 0.2 | –
Other currencies | – | – | – | – | 9.8 | 6.6 | (0.2) | 0.1
Total foreign currency forward contracts |  |  |  |  | 47.7 | 45.5 | 0.1 | 0.8
US Dollars vs GBP | 1.26 | 1.20 | 16.4 | 22.1 | 13.0 | 17.1 | 0.1 | 0.6
Euros vs GBP | 1.15 | 1.13 | 35.4 | 31.2 | 30.2 | 26.0 | 0.2 | –
Other currencies | – | – | – | – | 28.7 | 13.3 | (0.8) | –
|  |  |  |  | 71.9 | 56.4 | (0.5) | 0.6
Interest rate swap contracts |  |  |  |  |  |  |  |
in a designated cash flow hedge |  |  |  |  |  |  |  |
Euros |  |  | 169.0 | – | 133.8 | – | (1.1) | –
US Dollars |  |  | 72.0 | – | 61.5 | – | (0.3) | –
|  |  |  |  | 195.3 | – | (1.4) | –
Total |  |  |  |  | 267.2 | 56.4 | (1.9) | 0.6
Amounts recognised in the Consolidated Income Statement |  |  |  |  |  |  | (0.6) | (0.3)
Amounts recognised in the Consolidated Statement of Comprehensive Income and Expenditure |  |  |  |  |  |  | (1.3) | 0.9
|  |  |  |  |  |  | (1.9) | 0.6

The fair values of the forward contracts
and interest rate swaps are disclosed as a £0.7m (2023: £1.5m) asset and £2.6m (2023: £0.9m)
liability in the Consolidated Balance Sheet. Of the £18.9m (2023: £6.7m) of open contracts for other currencies not in a designated cash
flow hedge £9.3m (2023: £5.0m) relates to a Swiss Franc contract for expected repayment of intercompany loan balances.
Halma plc | Annual Report and Accounts 2024 249
Governance Report Other InformationStrategic Report
Financial Statements
27 Financial instruments continued
Any movements in the fair values of the contracts in a designated cash flow hedge are recognised in equity until the hedged transaction
occurs, when gains/losses are recycled to finance income or finance expense.

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Analysis of movement in the Hedging reserve |  |
Amounts removed from Consolidated Statement of Comprehensive Income and Expenditure and included |  |
in Consolidated Income Statement during the year | (0.8) | 0.4
Amounts recognised in the Consolidated Statement of Comprehensive Income and Expenditure | (1.3) | 0.9
Net movement in the Hedging reserve in the year in relation to the effective portion of changes in fair value of cash flow hedges | (2.1) | 1.3

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments
to ensure that an economic relationship exists between the hedged item and hedging instrument.
There was no material ineffectiveness arising with regards to net investment hedges or forward contracts and interest rate swaps in a
designated cash flow hedge.
The foreign currency forwards are denominated in the same currency as the highly probable future transactions. With the exception
of currency exposures, the disclosures in this note exclude short-term receivables and payables.
Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The Group enters into
financial instruments to manage its exposure to foreign currency risk, including:
• forward foreign exchange contracts to hedge the exchange rate risk arising on the export of goods to and from the USA,
Mainland Europe and the UK; and
• foreign exchange loans to hedge the exchange rate risk arising on translation of the Group’s investment in foreign operations which
have the Euro, US Dollar, Australian Dollar and Swiss Franc as their functional currencies.
Bank loans and loan notes with a carrying value set out in the table on page 247 as well as non-GBP intercompany loans are used as
net investment hedges for foreign currency net assets with carrying value of €409.7m (2023: €323.4m), US$203.5m (2023: US$200.0m),
CHF90.0m (2023: CHF75.0m) and NZ$12.1m (2023: NZ$11.7m). The hedging ratio was 1:1. The change in the carrying value of the
borrowings that was recognised in other comprehensive income was a gain of £13.2m (2023: loss of £7.4m).
Market risk exposures are measured using sensitivity analysis as described below.
There has been no change to the Group’s exposure to market risks or in the manner in which these risks are managed and measured.
Foreign currency sensitivity analysis
The Group is mainly exposed to the currency of the US (US Dollar) and the currency of Mainland Europe (Euro).
The carrying amount of the Group’s US Dollar and Euro denominated assets and liabilities at the reporting date are as follows:

|  | Assets |  | Liabilities
| 31 March | 31 March | 31 March | 31 March
| 2024 | 2023 | 2024 | 2023
| £m | £m | £m | £m
US Dollar – Total | 1,323.3 | 1,275.4 | 389.3 | 331.5
US Dollar – Monetary assets/liabilities | 266.1 | 239.3 | 367.2 | 329.0
Euro – Total | 616.0 | 541.5 | 450.6 | 374.6
Euro – Monetary assets/liabilities | 89.1 | 95.8 | 449.9 | 374.2

If Sterling increased by 10% against the US Dollar and the Euro, profits before taxation and other equity would decrease as follows:

|  | US Dollar |  | Euro
| 31 March | 31 March | 31 March | 31 March
| 2024 | 2023 | 2024 | 2023
| £m | £m | £m | £m
Profit | 19.7 | 17.8 | 5.2 | 3.7
Other equity | 84.9 | 85.8 | 15.0 | 15.2

The profit sensitivity arises mainly from the translation of overseas profits earned during the year. 10% is the sensitivity rate which
management assesses to be a reasonably possible change in foreign exchange rates. The Group’s profit sensitivity has increased against
the US Dollar because more of the Group’s profits is earned in this currency. The Other equity movement arises mainly from the translation
of net assets of overseas subsidiary companies with US Dollar and Euro functional currencies.
250 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
28 Leases
The Group has lease contracts for land and buildings, as well as various items of plant, machinery, vehicles and other equipment used in
its operations. The Group also has certain leases of machinery with lease terms of 12 months or less and leases of office equipment with
low value. The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.
Right‑of‑use assets by asset category
Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period, split by asset category:

|  | Plant, |
| Land | equipment |
| and | and |
| buildings | vehicles | Total
| £m | £m | £m
Cost, net of accumulated depreciation and accumulated impairment |  |  |
At 1 April 2023 | 79.3 | 3.7 | 83.0
Assets of businesses acquired | 2.8 | 0.4 | 3.2
Additions | 11.8 | 3.6 | 15.4
Transfer between category | 0.7 | – | 0.7
Disposals and retirements | (0.7) | – | (0.7)
Depreciation charge for the year | (18.4) | (1.4) | (19.8)
Exchange adjustments | (2.4) | – | (2.4)
At 31 March 2024 | 73.1 | 6.3 | 79.4
At 31 March 2024 |  |  |
Cost | 156.9 | 9.3 | 166.2
Accumulated depreciation and accumulated impairment | (83.8) | (3.0) | (86.8)
Net carrying amount | 73.1 | 6.3 | 79.4

Lease liabilities
Set out below are the carrying amounts of lease liabilities included under current and non-current liabilities and the movements during
the period:

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
At 1 April 2023 | 87.9 | 72.1
Additions and remeasurements | 15.2 | 22.0
Accretion of interest | 3.2 | 2.9
Payments | (24.1) | (20.9)
Liabilities of business acquired (note 25) | 3.2 | 9.3
Exchange adjustments | (1.7) | 2.5
At 31 March 2024 | 83.7 | 87.9
Current | 19.5 | 19.2
Non-current | 64.2 | 68.7
At 31 March 2024 | 83.7 | 87.9

The maturity analysis of lease liabilities is disclosed in note 27.
The following are the amounts recognised in Consolidated Income Statement:

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Depreciation expense of right-of-use assets | 19.8 | 18.4
Interest expense on lease liabilities | 3.2 | 2.9
Expense relating to short-term leases and leases of low-value assets | 0.3 | 0.3
Total amount recognised in Consolidated Income Statement | 23.3 | 21.6

The Group had total cash outflows for leases of £24.1m in the year (2023: £20.9m).
Halma plc | Annual Report and Accounts 2024 251
Governance Report Other InformationStrategic Report
Financial Statements
28 Leases continued
Extension options
Some leases of buildings contain extension options exercisable by the Group before the end of the non-cancellable contract period.
Where practical, the Group seeks to include extension options in new leases to provide operational flexibility. The extension options held
are exercisable only by the Group and not the lessors. For extension options exercisable within five years of commencement the Group
assesses at lease commencement whether it is reasonably certain to exercise the extension options. For options that are exercisable more
than five years from commencement the Group assesses whether it is reasonably certain to exercise the option when this option becomes
exercisable within five years. The Group will also reassess whether it is reasonably certain to exercise the option where there is a significant
event or change in circumstances within its control.
As at 31 March 2024, potential future cash outflows of £14.7m (undiscounted) (2023: £12.6m) have not been included in the lease liability
because it is not reasonably certain that the leases will be extended. During the current year the financial effect of revising lease terms to
reflect the exercising of extension and termination options was an increase in recognised lease liabilities and right-of-use assets of £0.0m
(2023: £0.0m). No other lease modifications occurred during the year.
The future cash outflows relating to leases that have not yet commenced are £17.3m (2023: £0.7m).
29 Retirement benefits
Group companies operate both defined benefit and defined contribution pension plans. The Halma Group Pension Plan and the Apollo
Pension and Life Assurance Plan (both UK) have defined benefit sections with assets held in separate trustee administered funds. Both of
these sections had already closed to new entrants in 2002/03 and closed to future benefit accruals from December 2014. From that date,
the former defined benefit members could join the defined contribution section within the Halma Group Pension Plan (which has now
been superseded by a defined contribution Master Trust with Aegon).
Overseas subsidiaries have adopted mainly defined contribution plans, with the exception of small defined benefit plans in the Swiss
entities of Medicel AG and Robutec AG.
Total pension costs of £19.6m (2023: £18.2m) recognised in employee costs (note 7), comprise £19.0m (2023: £17.7m) related to defined
contribution plans and £0.6m (2023: £0.5m) related to defined benefit plans, including administration expenses of £nil (2023: £nil).
Defined contribution plans
The amount charged to the Consolidated Income Statement in respect of defined contribution plans was £19.0m (2023: £17.7m) and
represents contributions payable to these plans by the Group at rates specified in the rules of the plans. The assets of the plans are held
separately from those of the Group in funds under the control of asset managers or trustees.
Defined benefit plans
The Group’s significant defined benefit plans were for qualifying employees of its UK subsidiaries. Under the plans, members are entitled
to retirement benefits of up to two-thirds of final pensionable salary on attainment of a retirement age of 60, for former members of
the Executive Board, and 65, for all other qualifying employee members. No other post-retirement benefits are provided. The plans are
funded plans.
The most recent actuarial valuation of the Halma Group Pension Plan was carried out for the Trustees of the Plan as at 30 November
2020 by Mr M Whitcombe, Fellow of the Institute and Faculty of Actuaries, of Mercer Limited. The present value of the liabilities was
measured using the Projected Unit method. This method is an accrued benefits valuation method in which the plan liabilities include
an allowance for projected earnings.
The most recent actuarial valuation of the Apollo Pension and Life Assurance Plan was carried out for the Trustees of the Plan as at
1 April 2021 by Mr M Whitcombe, Fellow of the Institute and Faculty of Actuaries, also of Mercer Limited. The same Projected Unit
method was used.
The plans’ triennial actuarial valuation reviews, rather than the accounting basis, are used to evaluate the level of any cash payments
into the plan. Based on the last valuations, the Trustees of the UK plans, having consulted with the Group, agreed past service deficit
recovery payments to be made with the objective of funding the plans in excess of the Technical Provisions valuation. During the year
ended 31 March 2023, the aggregate payments made since the last triennial actuarial valuation, coupled with the performance of the
plan assets and movement in the liabilities resulted in the Halma Group Pension Plan being funded over the trustees’ secondary funding
target and closer to the expected current valuation on a solvency basis. As a result, it was agreed with the trustees of the Halma Group
Pension Plan that contributions will be suspended until April 2025, when they will either fall due or be superseded by cash contributions
agreed with the trustees in respect of the latest triennial actuarial valuation. All contributions due agreed at the last triennial valuation
of the Apollo Pension and Life Assurance Plan have been paid and any further contributions will be agreed following the outcome of the
latest triennial valuation.
An alternative to the Projected Unit method is a valuation on a solvency basis, which is an estimate of the cost of buying out benefits
with a suitable insurance company. This amount represents the amount that would be required to settle the plan liabilities rather than
the Group continuing to fund the ongoing liabilities of the Plans. Following the last triennial actuarial valuation the estimate of the
solvency liability was £106.1m as at 30 November 2020 for the Halma Group Pension Plan and £44.1m as at 1 April 2021 for the Apollo
Pension and Life Assurance Plan.
The Group and trustees of the Plans are monitoring the developments regarding the UK High Court legal ruling in June 2023 between
Virgin Media Limited and NTL Pension Trustees II Limited, which resulted in amendments made to defined benefit pension schemes
contracted-out on a Reference Scheme Test basis between 6 April 1997 and 5 April 2016 to be rendered void if they were not accompanied
by actuarial certifications. As the ruling is subject to appeal no adjustments have been made to the Consolidated Financial Statements
at 31 March 2024.
252 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
29 Retirement benefits continued

| 31 March | 31 March | 31 March
| 2024 | 2023 | 2022
Key assumptions used (UK plans): |  |  |
Discount rate | 4.75% | 4.75% | 2.80%
Expected return on plan assets | 4.75% | 4.75% | 2.80%
Pension increases LPI 2.5% | 2.05% | 2.10% | 2.20%
Pension increases LPI 3.0% | 2.35% | 2.45% | 2.55%
Inflation – RPI | 3.15% | 3.30% | 3.60%
Inflation – CPI | 2.40% | 2.50% | 2.85%

Mortality assumptions
The base mortality tables utilised are consistent with those used in the last completed triennial valuations. The latest published CMI
mortality projection tables (CMI2022) have been used with a long-term improvement rate of 1.25% pa and a 2022 parameter of 25%.
The assumed life expectations on retirement at age 65 are:

| 31 March | 31 March | 31 March
| 2024 | 2023 | 2022
| Years | Years | Years
Retiring today: |  |  |
Males | 22.1 | 22.3 | 22.4
Females | 24.5 | 24.7 | 24.8
Retiring in 25 years: |  |  |
Males | 23.6 | 23.8 | 23.9
Females | 26.0 | 26.2 | 26.2

The sensitivities regarding the principal assumptions used to measure the UK plan liabilities are set out below:

Assumption | Change in assumption | Impact on plan liabilities
Discount rate | Increase/decrease by 0.5% | Decrease by 6.8%/increase by 6.5%
Rate of inflation | Increase/decrease by 0.5% | Increase by 4.2%/decrease by 4.1%
Rate of mortality | Increase by one year | Increase by 2.8%

These sensitivities have been calculated to show the impact on the plan liabilities in isolation and assume no other changes in market
conditions at the reporting date. This may not be representative of the actual change as the changes in assumptions would likely not
occur in isolation – for example, a change in discount rate is unlikely to occur without any movement in the value of the assets held by
the Group’s Schemes.
Amounts recognised in the Consolidated Income Statement in respect of the UK and Swiss defined benefit plans are as follows:

|  |  | 31 March 2024 |  |  | 31 March 2023
| UK defined | Other defined |  | UK defined | Other defined |
| benefit plans | benefit plans |  | benefit plans | benefit plans |
| £m | £m | Total £m | £m | £m | Total £m
Current service cost | – | 0.6 | 0.6 | – | 0.5 | 0.5
Net interest (credit) on pension plan assets/ liabilities | (1.9) | – | (1.9) | (1.1) | – | (1.1)
| (1.9) | 0.6 | (1.3) | (1.1) | 0.5 | (0.6)

Actuarial gains and losses have been reported in the Consolidated Statement of Comprehensive Income and Expenditure. The actual
return on plan assets was a loss of £2.7m (2023: loss of £70.2m).
The cumulative amount of actuarial losses recognised in the Consolidated Statement of Comprehensive Income and Expenditure since
the date of transition to IFRS is £69.1m (2023: £57.1m).
The amount included in the Consolidated Balance Sheet arising from the Group’s asset/obligations in respect of its defined benefit
retirement plans is as follows:

|  |  | 31 March 2024 |  |  | 31 March 2023
| UK defined | Other defined |  | UK defined | Other defined |
| benefit plans | benefit plans |  | benefit plans | benefit plans |
| £m | £m | Total £m | £m | £m | Total £m
Present value of defined benefit obligations | (233.9) | (13.7) | (247.6) | (237.2) | (9.6) | (246.8)
Fair value of plan assets | 265.9 | 12.6 | 278.5 | 275.6 | 9.1 | 284.7
Net retirement benefit asset/(obligation) | 32.0 | (1.1) | 30.9 | 38.4 | (0.5) | 37.9
Plans with net retirement benefit assets | 32.0 | – | 32.0 | 38.4 | – | 38.4
Plans with net retirement benefit obligations | – | (1.1) | (1.1) | – | (0.5) | (0.5)

Halma plc | Annual Report and Accounts 2024 253
Governance Report Other InformationStrategic Report
Financial Statements
29 Retirement benefits continued
Movements in the present value of the UK and Swiss defined benefit obligations were as follows:

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
At beginning of year | (246.8) | (317.1)
Service cost | (0.6) | (0.5)
Interest cost | (11.3) | (8.6)
Remeasurement gains/(losses): |  |
Actuarial gains arising from changes in financial assumptions | 2.5 | 86.3
Actuarial gains arising from changes in demographic assumptions | 2.2 | 0.9
Actuarial losses arising from experience adjustments | (0.8) | (16.1)
Contributions from plan members | (0.4) | (0.4)
Benefits paid | 7.4 | 9.2
Exchange adjustments | 0.2 | (0.5)
At end of year | (247.6) | (246.8)

Movements in the fair value of the UK and Swiss plan assets were as follows:

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
At beginning of year | 284.7 | 347.6
Administration cost | (0.6) | –
Interest income | 13.2 | 9.7
Actuarial (losses) excluding interest income | (15.9) | (79.9)
Contributions from the sponsoring companies | 4.4 | 15.6
Contributions from plan members | 0.4 | 0.4
Benefits paid | (7.4) | (9.2)
Exchange adjustments | (0.3) | 0.5
At end of year | 278.5 | 284.7

The net movement on actuarial gains and losses of the UK and Swiss plans was as follows:

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Defined benefit obligations | 3.9 | 71.1
Fair value of plan assets | (15.9) | (79.9)
Net actuarial losses | (12.0) | (8.8)

The analysis of the UK plan assets and the expected rate of return at the balance sheet date were as follows:
Fair value of UK plan assets

| 31 March | 31 March
| 2024 | 2023
| £m | £m
Equity instruments |  |
Quoted | 6.2 | 10.1
Debt instruments |  |
Quoted | 208.5 | 166.7
Unquoted | 24.8 | 38.3
Property/infrastructure |  |
Unquoted | 23.2 | 20.0
Cash and cash equivalent |  |
Quoted | 3.2 | 40.5
| 265.9 | 275.6

The assets of the schemes are primarily held in pooled investment vehicles which are unquoted. The pooled investment vehicles hold both
quoted and unquoted investments. Scheme assets include neither direct investments in the Company’s ordinary shares, nor any property
assets occupied by Group companies, nor other assets used by the Group.
Equity instruments include UK and Overseas equity funds. Debt instruments include corporate, government and private debt funds.
Property/Infrastructure includes private infrastructure funds and managed property funds. Cash and cash equivalent includes cash
at bank and a liquidity fund.
254 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
29 Retirement benefits continued

|  | Expected rate of return
| 31 March | 31 March
| 2024 | 2023
| % | %
Equity instruments | 4.75 | 4.75
Debt instruments | 4.75 | 4.75
Property/infrastructure/cash | 4.75 | 4.75
| 4.75 | 4.75

Assets in the non-UK plans are primarily insurance assets.
In conjunction with the trustees, the Group conducts asset-liability reviews for its defined benefit pension plan. The results of these
reviews are used to assist the trustees and the Group to determine the optimal long-term asset allocation with regard to the structure
of the liabilities of the plan. They are also used to assist the trustees in managing the volatility in the underlying investment performance
and risk of a significant decrease in the defined benefit asset by providing information used to determine the plan’s investment strategy.
As a consequence, the Group is progressively giving more emphasis to a closer return matching of plan assets and liabilities, both to
ensure the long-term security of its defined benefit commitment and to reduce earnings and balance sheet volatility.
Based on the most recent actuarial valuations and agreements with the plan trustees, the estimated amount of contributions expected
to be paid to the UK and Swiss plans during the year ended 31 March 2025 is £0.8m.
The levels of contributions are based on the current service cost and the expected future cash flows of the defined benefit pension plans.
The Group estimates the plan liabilities on average to fall due over 20 and 25 years, respectively, for the Halma and Apollo plans.
The Group has considered the requirements of IFRIC 14 with respect to the UK plans and has determined that it has an unconditional
right to a refund under the plans and therefore IFRIC 14 does not have any practical impact on the plans so no allowance for it
(and, in particular, no allowance for the asset ceiling) has been made in the calculated figures.
The expected maturity analysis of the undiscounted pension obligation for the next 10 years is as follows:

|  | Between | Between | Between |
| Less than | one and | two and | five and |
| one year | two years | five years | ten years | Total
| £m | £m | £m | £m | £m
At 31 March 2024 |  |  |  |  |
Halma | 8.2 | 8.4 | 26.7 | 50.1 | 93.4
Apollo | 1.9 | 1.9 | 6.1 | 11.4 | 21.3

Halma plc | Annual Report and Accounts 2024 255
Governance Report Other InformationStrategic Report
Financial Statements
30 Disposal of operations
On 4 August 2023, the Group disposed of its 70% interest in FireMate Software Pty. Ltd. to a third party for proceeds of £3.2m. This transaction
resulted in the recognition of a gain in the Consolidated Income Statement as follows:

| Total
| £m
Proceeds of disposal | 3.2
Less: net assets on disposal | (1.0)
Less: allocation of goodwill disposed | (1.6)
Less: costs of disposal | (0.4)
Less: non-controlling interest | 0.3
Profit on disposal | 0.5

Cash received on disposal of operations of £1.6m comprised proceeds of £3.2m, less loan note receivable of £1.1m, less £0.1m of cash
disposed and £0.4m of disposal costs. The loan note receivable accrues interest at 8% per annum and is receivable in five years.
Immediately prior to the disposal, the Group transferred FireMate’s wholly owned subsidiary Nimbus Digital Solutions Ltd (formerly
FireMate Limited) to another Group company. This resulted in the Group retaining the entity on disposal of FireMate and extinguishing
the non-controlling interest in relation to this entity.
31 Contingent liabilities
Group financing exemptions applicable to UK controlled foreign companies
On 2 April 2019, the European Commission (EC) published its final decision that the UK controlled Foreign Company Partial Exemption
(FCPE) constitutes State Aid. As previously reported, the Group has benefited from the FCPE, which amounts to £15.4m of tax for the
period from 1 April 2013 to 31 December 2018. Appeals had been made by the UK Government, the Group and other UK-based groups
to annul the EC decision. On 8 June 2022, the EU General Court delivered its decision in favour of the EC. In August 2022, the UK
Government appealed this decision. The appeals have now been heard with the judgement expected to be released in the next
few months. The Group’s assessment is that it would expect these appeals to be successful.
Notwithstanding this appeal, under EU law, the UK Government is required to commence collection proceedings. In January 2021,
the Group received a Charging Notice from HM Revenue & Customs (HMRC) for £13.9m assessed for the period from 1 April 2016 to
31 December 2018. The Group has appealed against the notice but, as there is no right of postponement, the amount charged was
paid in full in February 2021 with a further £0.8m of interest paid in May 2021. In February 2021, the Group received confirmation from
HMRC that it was not a beneficiary of State Aid for the period from 1 April 2013 to 31 March 2016.
As the amounts paid are expected to be fully recovered, the Group continues to recognise a receivable of £14.7m (31 March 2023: £14.7m)
on the Consolidated Balance Sheet within non-current assets.
Other contingent liabilities
The Group has widespread global operations and is consequently a defendant in legal, tax and customs proceedings incidental to those
operations. In addition, there are contingent liabilities arising in the normal course of business in respect of indemnities, warranties and
guarantees. These contingent liabilities are not considered to be unusual or material in the context of the normal operating activities of
the Group. Provisions have been recognised in accordance with the Group accounting policies where required. None of these claims are
expected to result in a material gain or loss to the Group.
32 Events subsequent to end of reporting period
In April 2024, a new Private Placement of £336m was completed. The issuance consists of a US Dollar tranche of US$110m maturing in
April 2035, with an amortisation profile giving it a 9.5 year average life and a Euro tranche of €290m maturing in April 2034, with an
amortisation profile giving it a 7.75 year average life. In May 2024, the Revolving Credit Facility was further extended and now matures
in May 2029.
On 30 April 2024, the Group acquired the entire share capital of MK Test Systems Limited (MK Test), based in Wellington, Somerset, UK
for a cash consideration of c.£44m on a cash and debt-free basis. MK Test designs and manufactures safety-critical electrical testing
technology. Its products are used globally to test the integrity of high voltage electrical systems in aerospace, rail and commercial EV
industries. MK Test will be part of Halma’s Safety sector. A detailed purchase price allocation exercise is currently being performed to
calculate the goodwill arising on this acquisition.
On 31 May 2024, the Group disposed of the entire share capital of Hydreka S.A.S. to a third party for proceeds of €8.4m (£7.2m).
There were no other known material non-adjusting events which occurred between the end of the reporting period and prior to the
authorisation of these financial statements on 13 June 2024.
256 Halma plc | Annual Report and Accounts 2024
NOTES TO THE ACCOUNTS continued
33 Related party transactions
Trading transactions

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Associated companies |  |
Transactions with associated companies |  |
Sales to associated companies | – | –
Balances with associated companies |  |
Amounts due from associated companies | – | –
Other related parties |  |
Balances with other related parties |  |
Amounts due to other related parties | – | –

All the transactions above are on an arm’s length basis and on standard business terms.
Remuneration of key management personnel
The remuneration of the Directors and Executive Board members, who are the key management personnel of the Group, is set out below
in aggregate for each of the categories specified in IAS 24 ‘Related Party Disclosures’. Further information about the remuneration of
individual Directors is provided in the audited part of the Annual Remuneration Report on pages 152 to 177.

| Year ended | Year ended
| 31 March | 31 March
| 2024 | 2023
| £m | £m
Wages and salaries | 12.5 | 10.8
Pension costs | – | –
Share-based payment charge | 5.0 | 6.7
| 17.5 | 17.5

34 Commitments
Capital commitments
Capital expenditure relating to the purchase of equipment authorised and contracted at 31 March 2024 but not recognised in these
accounts amounts to £2.8m (2023: £2.1m).
Halma plc | Annual Report and Accounts 2024 257
Governance Report Other InformationStrategic Report
Financial Statements
Notes
31 March
2024
£m
31 March
2023
£m
Fixed assets
Intangible assets C3 0.1 0.3
Tangible assets C4 8.5 7.4
Investments C5 636.0 576.8
Retirement benefit asset C13 21.6 28.7
Tax receivable 14.7 14.7
680.9 627.9
Current assets
Debtors C6 1,203.7 1,033.6
Short‑term deposits 22.3 0.1
Tax receivable – –
Cash at bank and in hand 6.3 6.9
1,232.3 1,040.6
Creditors: amounts falling due within one year
Borrowings C7 4.9 2.5
Tax payable 7.6 2.2
Creditors C8 159.2 99.6
171.7 104.3
Net current assets 1,060.6 936.3
Total assets less current liabilities 1,741.5 1,564.2
Creditors: amounts falling due after more than one year
Borrowings C7 712.8 677.3
Creditors C9 14.2 13.9
Deferred tax C10 2.9 5.6
729.9 696.8
Net assets 1,011.6 867.4
Capital and reserves
Share capital C11 38.0 38.0
Share premium account 23.6 23.6
Own shares (58.0) (46.1)
Capital redemption reserve 0.2 0.2
Hedging reserve (1.4) –
Profit and loss account 1,009.2 851.7
Total equity 1,011.6 867.4
The Company reported a profit for the financial year ended 31 March 2024 of £235.4m (2023: £97.4m).
The financial statements of Halma plc, company number 00040932, were approved by the Board of Directors on 13 June 2024.
Marc Ronchetti Steve Gunning
Director Director
258 Halma plc | Annual Report and Accounts 2024
COMPANY BALANCE SHEET
Share
capital
£m
Share
premium
account
£m
Own
shares
£m
Capital
redemption
reserve
£m
Hedging
reserve
£m
Profit and loss
account
£m
Total
£m
At 1 April 2023 38.0 23.6 (46.1) 0.2 – 851.7 867.4
Profit for the year – – – – – 235.4 235.4
Other comprehensive income
andexpense – – – – – – –
Actuarial losses on defined benefit
pension plan – – – – – (7.8) (7.8)
Effective portion of losses in fair value
ofcash flow hedges – – – – (1.4) – (1.4)
Tax relating to components of other
comprehensive income and expense – – – – – 2.0 2.0
Total other comprehensive expense
fortheyear – – – – (1.4) (5.8) (7.2)
Dividends paid – – – – – (78.2) (78.2)
Share‑based payment charge – – – – – 8.3 8.3
Capital contribution to subsidiaries for
share‑based payment awards (note C5) – – – – – 9.5 9.5
Deferred tax on share‑based payment
transactions – – – – – 0.2 0.2
Excess tax deductions related to share‑
based payments on vested awards – – – – – (0.1) (0.1)
Purchase of own shares – – (19.7) – – – (19.7)
Performance share plan awards vested – – 7.8 – – (11.8) (4.0)
At 31 March 2024 38.0 23.6 (58.0) 0.2 (1.4) 1,009.2 1,011.6
Share
capital
£m
Share
premium
account
£m
Own
shares
£m
Capital
redemption
reserve
£m
Hedging
reserve
£m
Profit and loss
account
£m
Total
£m
At 1 April 2022 38.0 23.6 (30.7) 0.2 – 796.9 828.0
Profit for the year – – – – – 97.4 97.4
Other comprehensive income
andexpense:
Actuarial losses on defined benefit
pension plan – – – – – (9.4) (9.4)
Tax relating to components of other
comprehensive income and expense – – – – – 1.7 1.7
Total other comprehensive expense for
theyear – – – – – (7.7) (7.7)
Dividends paid – – – – – (73.3) (73.3)
Share‑based payment charge – – – – – 9.5 9.5
Capital contribution to subsidiaries for
share‑based payment awards (note C5) – – – – – 40.3 40.3
Deferred tax on share‑based payment
transactions – – – – – (0.1) (0.1)
Excess tax deductions related to share‑
based payments on vested awards – – – – – 0.1 0.1
Purchase of own shares – – (22.3) – – – (22.3)
Performance share plan awards vested – – 6.9 – – (11.4) (4.5)
At 31 March 2023 38.0 23.6 (46.1) 0.2 – 851.7 867.4
Halma plc | Annual Report and Accounts 2024 259
Governance Report Other InformationStrategic Report
Financial Statements
COMPANY STATEMENT OF CHANGES IN EQUITY
C1 Accounting policies
Corporate Information
Halma plc (the Company) is a public limited company incorporated and domiciled in England, United Kingdom (registration
number00040932). The registered address of the Company is Misbourne Court, Rectory Way, Amersham, Buckinghamshire, HP7 0DE,
United Kingdom.
Basis of preparation
The separate Company financial statements are presented as required by the Companies Act 2006 and have been prepared on the
historical cost and going concern basis, and in accordance with Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ except
for the revaluation of certain financial instruments, pension assets and contingent purchase consideration at fair value as permitted by
the Companies Act 2006.
The principal accounting policies have been applied consistently In both the current and prior year.
Financial reporting standard 101 – reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions under FRS 101:
• the requirements of paragraphs 45(b) and 46–52 of IFRS 2 Share‑based payment;
• the requirements of IFRS 7 Financial Instruments: Disclosures;
• paragraph 79(a)(iv) of IAS 1;
• paragraph 73(e) of IAS 16 Property, Plant and Equipment;
• paragraph 118(e) of IAS 38 Intangible Assets;
• the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D,111 and 134–136 of IAS 1 Presentation of
Financial Statements;
• the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases;
• the requirements of paragraph 58 of IFRS 16;
• the requirements of IAS 7 Statement of Cash Flows and related notes;
• the effects of new but not yet effective IFRS;
• the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;
• the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members
of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member; and
• paragraph 17 of IAS 24, ‘Related party disclosures’ (key management compensation).
New Standards and Interpretations applied for the first time in the year ended 31 March 2024
The following standards and Interpretations applied for the first time, with effect from 1 January 2023, and have been adopted in the
preparation of these Company Accounts:
• IFRS 17 Insurance Contracts
• Definition of Accounting Estimates – Amendments to IAS 8
• Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2
• Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12
• Lease Liability in a Sale and Leaseback – Amendments to IFRS 16
• Classification of Liabilities as Current or Non‑current and Non‑current Liabilities with Covenants – Amendments to IAS 1
• Amendments to IAS 12 International Tax Reform Pillar Two Model Rule
None of the above mentioned new Standards and Interpretations have affected the Company’s results.
Significant accounting judgements and estimates
In preparing the financial statements, management has made judgements, estimates and assumptions that affect the application of the
Company’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates. Estimates and assumptions are reviewed on an ongoing basis and are based on historical experience and various other factors
that are believed to be reasonable under the circumstances.
Significant accounting estimates are used in determining the value of the future defined benefit obligation which requires estimation in
respect of the assumptions used to calculate present values. These include future mortality, discount rate and inflation. Management
determines these assumptions in consultation with an independent actuary. Details of the estimates made in calculating the defined
benefit obligation are disclosed in note 29 to the Group accounts, specifically page 253.
The Company’s investments are assessed each reporting period for any indicators of impairment, both qualitative and quantitative. If
there are deemed to be any indicators of impairment a ‘value in use’ calculation is performed, as reported in note C5. Where required,
the‘value in use’ calculation requires the Company to estimate the future cash flows expected to arise from the investments and apply
suitable discount rates in order to calculate present values.
There are no significant judgements used by management in preparing the Company’s financial statements.
Summary of material accounting policy information
Foreign currencies
Transactions in foreign currency are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the balance sheet date are reported at the rates prevailing at that date. Any gain or loss arising
from subsequent exchange rate movements is included as an exchange gain or loss in the Profit and Loss Account.
Financial Instruments
The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial
instruments are de‑recognised when they are discharged or when the contractual terms expire. The Company’s accounting policies in
respect of financial instruments transactions are explained below:
260 Halma plc | Annual Report and Accounts 2024
NOTES TO THE COMPANY ACCOUNTS
C1 Accounting policies continued
Summary of material accounting policy information continued
Financial assets
The Company recognises its financial assets into one of the categories discussed below, depending on the purpose for which the asset
was acquired.
Other than the financial assets in a qualifying hedging relationship, the Company’s accounting policy for each category is as follows:
Fair value through profit or loss – Derivative financial instruments are carried in the balance sheet at fair value with changes in fair value
recognised in the Profit and Loss Account.
Amortised costs – Loans and receivables are non‑derivative financial assets with fixed or determinable payments that are not quoted inan
active market. They arise principally through the provision of goods and services to customers (other group companies), but also incorporate
other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly attributable to
their acquisition or issue and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment.
The Company’s receivables relate entirely to balances due from other group companies. Where the intercompany receivable is payable
ondemand the Company determines whether any impairment provision is required by assessing the Company’s ability to repay the loan.
Where it is considered that the Company does not have the capacity to repay the loan or the loan is not repayable on demand, an
expected credit loss model is used to calculate the impairment provision required.
Financial liabilities
The Company classifies its financial liabilities into one of the categories discussed below, depending on the purpose for which the liability
was acquired.
Fair value through profit or loss – These comprise out‑of‑the‑money derivatives and contingent purchase consideration. They are carried in
the balance sheet at fair value with changes in fair value recognised in the Profit and Loss Account.
At amortised cost – Financial liabilities at amortised cost including bank borrowings are initially recognised at fair value. Such
interest‑bearing liabilities are subsequently measured at amortised cost using the effective interest rate method.
Interest bearing loans and borrowings
Interest bearing loans and borrowings are initially recognised in the balance sheet at fair value less directly attributable transaction costs
and are subsequently measured at amortised cost using the effective interest rate method.
Interest rate hedging
The Company enters into derivative financial instruments to manage its exposure to interest rate risk using interest rate swaps.
TheCompany continues to apply the requirements of IAS 39 for hedge accounting.
Derivative financial instruments are classified as fair value through profit and loss (held for trading) unless they are in a designated
hedgerelationship.
A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair value is recognised as a
financial liability. A derivative is presented as a non‑current asset or a non‑current liability if the remaining maturity of the instrument is
more than 12 months and it is not expected to be realised or settled within 12 months. Other derivatives are presented as current assets or
current liabilities.
Share-based payments
The cost of the equity‑settled transactions with employees of other Group companies is measured by reference to the fair value at the
date at which equity instruments are granted and, where it is not recharged to a Group company, is recognised as a capital contribution
in investments in subsidiary undertakings over the vesting period, which ends on the date on which the employees become fully entitled
to the award. A corresponding credit is recognised within equity. This credit is not distributable.
Investments
Investments are stated at cost less provision for impairment. In respect of IFRS 2 ‘Share‑based payments’, the Company records an
increase in its investment in subsidiaries to reflect the share‑based compensation recorded by its subsidiaries.
Fixed assets and depreciation
Fixed assets are stated at cost less provisions for impairment and depreciation which, with the exception of freehold land which is not
depreciated, is provided on all fixed assets on the straight‑line method, each item being written off over its estimated life. The principal
annual rates used for this purpose are:
Freehold property 2%
Plant, equipment and vehicles 8% to 33.3%
Leases
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to
control the use of an identified asset for a period of time in exchange for consideration. Where the Company determines the contract is,
or contains a lease, a right‑of‑use asset and a lease liability is recognised at the lease commencement date.
The lease term is determined from the commencement date of the lease and covers the non‑cancellable term. If the Company has
anextension option, which it considers reasonably certain to exercise, then the lease term will be considered to extend beyond that
non‑cancellable period. If the Company has a termination option, which it considers reasonably certain to exercise, then the lease
termwill be considered to be until the point the termination option will take effect. The Company deems that it is not reasonably
certainto exercise an extension option or a termination option with an exercise date past the planning horizon of five years.
The right‑of‑use asset is initially measured at cost, comprising the initial amount of the lease liability plus any initial direct costs incurred
and an estimate of costs to restore the underlying asset, less any lease incentives received.
Halma plc | Annual Report and Accounts 2024 261
Governance Report Other InformationStrategic Report
Financial Statements
The right‑of‑use asset is subsequently depreciated using the straight‑line method from the commencement date to the end of the lease
term unless the right‑of‑use asset is deemed to have a useful life shorter than the lease term. The Company has taken the practical
expedient to not separate lease and non‑lease components and so account for both as a single lease component.
Right‑of‑use assets are also subject to impairment testing under IAS 36, as described in the policy on Impairment of non‑current assets
Inthe Accounting Policies for the Group.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the incremental borrowing rate. The lease payments include fixed payments (including in‑substance fixed payments)
less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under
residual value guarantees. Variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual
value guarantees are not material to the Group. The lease payments also include the exercise price of a purchase option reasonably
certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising
the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are
incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. The lease liability is
measured at amortised cost using the effective interest method by increasing the carrying amount to reflect interest on the lease liability
and by reducing the carrying amount to reflect the lease payments made. The lease liability is remeasured when there is a change in
future lease payments arising from a change in an index or a rate or a change in the Company’s assessment of whether it will exercise an
extension or termination option. When the lease liability is remeasured, a corresponding adjustment is made to the right‑of‑use asset.
Pensions
The Company makes contributions to defined contribution pension plans, which are charged against profits when they become payable.
TheCompany also operates a UK defined benefit pension plan. For defined benefit plans, the asset or liability recorded in the Company
Balance Sheet is the difference between the fair value of the plan’s assets and the present value of the defined obligation at that date.
Thedefined benefit obligation is calculated separately for the plan on an annual basis by an independent actuary using the projected
unitcredit method.
Actuarial gains and losses are recognised in full in the year in which they occur, and are taken to other comprehensive income.
Current and past service costs, along with the impact of settlements or curtailments, are charged to profit and loss. The unwinding of
thediscounting on the net liability is recognised within finance income or expense as appropriate.
Taxation
Tax on the profit or loss for the year comprises both current and deferred tax. Tax is recognised in the Profit and Loss Account except to
the extent that it relates to items recognised either in other comprehensive income or directly in equity.
Current tax is the expected tax payable, on the taxable income for the year, using tax rates enacted, or substantively enacted, at the
balance sheet date, and any adjustments to tax payable in respect of previous years.
Deferred taxation is provided on taxable temporary differences between the carrying amounts of assets and liabilities in the financial
statements and their corresponding tax bases. Deferred tax is measured at the tax rates that are expected to apply in the periods in
which the temporary differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted
by the balance sheet date. Deferred tax assets are only recognised if recovery is considered more likely than not on the basis of all
available evidence.
The recognition of deferred tax assets is dependent on assessments of future taxable income.
C2 Result for the year
As the Company is included in the consolidated financial statements, made up to 31 March each year, it is not required to present a
separate profit and loss account as permitted by Section 408(3) of the Companies Act 2006, as such the Profit and Loss Account of
Halma plc is not presented as part of these accounts. The Company has reported a profit after taxation for the financial year of
£235.4m(2023: £97.4m).
Auditors’ remuneration for audit services to the Company was £0.7m (2023: £0.6m). Total employee costs (including Directors) were:
Year ended
31 March
2024
£m
Year ended
31 March
2023
£m
Wages and salaries 33.4 32.7
Social security costs 4.9 4.0
Pension costs 0.8 0.7
39.1 37.4
Included within wages and salaries are share‑based payment charges under IFRS 2 of £9.4m (2023: £8.2m).
Year ended
31 March
2024
Number
Year ended
31 March
2023
Number
Monthly average number of employees (UK) 113 114
Monthly average number of employees (Mainland Europe) 4 6
Monthly average number of employees (Other) 1 –
Monthly average number of employees 118 120
Details of Directors’ remuneration are set out on pages 152 to 177 within the Annual Remuneration Report and form part of these
financialstatements.
C1 Accounting policies continued
262 Halma plc | Annual Report and Accounts 2024
NOTES TO THE COMPANY ACCOUNTS continued
C3 Fixed assets – intangible assets
Computer
software
£m
Other
intangibles
£m
Total
£m
Cost
At 1 April 2023 2.2 0.1 2.3
At 31 March 2024 2.2 0.1 2.3
Accumulated amortisation
At 1 April 2023 2.0 – 2.0
Charge for year 0.2 – 0.2
At 31 March 2024 2.2 – 2.2
Carrying amounts
At 31 March 2024 – 0.1 0.1
At 31 March 2023 0.2 0.1 0.3
C4 Fixed assets – tangible assets
Freehold
properties
£m
Plan,
equipment
and vehicles
£m
Right of use
assets
£m
Total
£m
Cost
At 1 April 2023 8.0 2.0 – 10.0
Additions at cost – 0.1 1.3 1.4
At 31 March 2024 8.0 2.1 1.3 11.4
Accumulated depreciation
At 1 April 2023 1.3 1.3 – 2.6
Charge for year 0.1 0.1 0.1 0.3
At 31 March 2024 1.4 1.4 0.1 2.9
Carrying amounts
At 31 March 2024 6.6 0.7 1.2 8.5
At 31 March 2023 6.7 0.7 – 7.4
C5 Investments
31 March
2024
£m
31 March
2023
£m
At cost less amounts written off at beginning of year 576.8 453.5
Increase in investments 57.2 83.0
Contributions to subsidiary undertakings relating to share‑based payments 9.5 40.3
Impairment charge (7.5) –
At cost less amounts written off at end of year 636.0 576.8
The increase of £57.2m in the year comprises additions from the acquisitions of Alpha Instrumatics of £43.1m, Firemate UK of £0.5m
andadditional investments into existing subsidiaries Halma Euro Trading Limited of £10.5m and Halma Ventures Limited of £3.1m.
The Impairment charge of £7.5m in the year is in respect of the Company’s investment in three subsidiary undertakings. This followed
areview by management of the discounted future cash flows expected to be derived from these Investments compared to its carrying
value in the Company’s balance sheet.
In the current year, capital contributions to subsidiary undertakings of £9.5m were recorded; in the prior year, capital contributions to
subsidiary undertakings of £40.3m were recorded, pertaining to the prior year and previous periods. These capital contributions arise
where equity‑settled share awards in the Company were granted to employees of subsidiary undertakings and no recharge was made
tothat subsidiary. More detail on the Company’s share plans can be found in note 24 to the Consolidated Accounts. Capital contributions
are not realised profits and so are non‑distributable retained earnings for the Company until such time as they are realised either through
impairment of the investment or sales of the relevant subsidiary. The contribution in the prior year of £40.3m comprised £32.0m in relation
to previous years which management do not consider quantitatively or qualitatively material in the context of the Company’s
distributable reserves and so was not recognised as a prior year adjustment.
In the prior year, the increase of £83.0m in the year comprises additions from the acquisition of Thermocable (Flexible Elements) Limited
of £22.5m and Zone Green 2013 Ltd of £3.9m and additional investments into existing subsidiaries Halma Euro Trading Limited of £52.1m
and Halma Ventures Limited of £4.5m.
Halma plc | Annual Report and Accounts 2024 263
Governance Report Other InformationStrategic Report
Financial Statements
C5 Investments continued
Subsidiaries
Details of the Company’s subsidiaries at 31 March 2024 are below.
Name Registered Address Country Class Group %
A & G Security Electronics Limited (1) United Kingdom Ordinary 100
*
Accutome, Inc. 3222, Phoenixville Pike, Malvern, PA, 19355,
United States
United States Ordinary 100
Adler Diamant BV Simon Homburgstraat 21, 5431 NN Cuijk, Netherlands Netherlands Ordinary 100
Advanced Electronics Limited The Bridges, Balliol Business Park,
Newcastle Upon Tyne, Tyne and Wear, NE12 8EW
United Kingdom Ordinary 100
*
Advanced Fire Systems Inc. 25 Corporate Dr, Auburn Hills, MI 48326 United States Common Stock 100
Alicat Scientific BV Geograaf 24, 6921EW Duiven Netherlands Ordinary 100
Alicat Scientific India Private Limited Plot No. A/147, Road No. 24, Wagle Industrial Estate,
Thane West, Thane 400064, Maharashtra, THANE
400064
India Ordinary 100
Alicat Scientific, Inc. 7641 N Business Park Drive, Tucson, AZ 85743, United
States
United States Common Stock 100
Alpha Instrumatics Holding Company
Limited
Alpha House, 96 City Road, Bradford, West Yorkshire,
United Kingdom, BD8 8ES
United Kingdom Ordinary 100
*
Alpha Moisture Systems Limited Alpha House, 96 City Road, Bradford, West Yorkshire,
United Kingdom, BD8 8ES
United Kingdom Ordinary 100
Ampac Europe Limited Unit 2, Waterbrook Estate, Waterbrook Road, Alton,
Hampshire, GU34 2UD
United Kingdom Ordinary 100
*
Ampac NZ Limited c/o MinterEllisonRuddWatts, 125 The Terrace,
Wellington Central, Wellington, 6011
New Zealand Ordinary 100
Ampac Pty Limited 7, Ledgar Road, Balcatta, Western Australia, 6021 Australia Ordinary 100
AMSGRO Limited Alpha House, 96 City Road, Bradford, West Yorkshire,
United Kingdom, BD8 8ES
United Kingdom Ordinary 100
Analytical Development Company Limited (1) United Kingdom Ordinary 100
*
Anton Industrial Services Limited 172 Brook Drive, Milton Park, Oxfordshire, OX14 4SD United Kingdom Ordinary 100
*
Apollo (Beijing) Fire Products Co. Ltd Block A5, Jinghai Industrial Park,
No. 156 Jinghai Fourth Road, BDA Beijing, China
China Ordinary 100
Apollo America, Inc. 25 Corporate Drive, Auburn Hills MI 48326,
United States
United States Common Stock 100
Apollo Fire Detectors Limited 36 Brookside Road, Havant, Hampshire, PO9 1JR,
United Kingdom
United Kingdom Ordinary and Deferred 100
*
Apollo GmbH Am Anger 31, D‑33332 Gütersloh, Germany Germany Ordinary 100
Applied Resins, S.L. C/ Alejandro Rodríguez 22, Madrid Spain Ordinary 100
AprioMed AB Virdings Allé 28, SE‑754 50 Uppsala, Sweden Sweden Ordinary 100
AprioMed Inc. 2711 Centorville Road, Suite 400, City of Wilmington,
County of New Castle, State of Delaware 19808
United States Common Stock 100
Aquionics, Inc. 4215, Suite E, Stuart Andrew Boulevard, Charlotte,
NC, 28217, United States
United States Common Stock 100
Argus Security S.r.l. Via Maurizio Gonzaga no. 7, Milan, 20123 Italy Quotas 100
Ashton Lister Investments Limited Ramtech House, Castlebridge Office Village,
Castle Marina Road, Nottingham, NG7 1TN
United Kingdom Ordinary 100
*
ASL Holdings Limited Ty Coch House, Llantarnam Park Way, Cwmbran,
WW, NP44 3AW, United Kingdom
United Kingdom Ordinary 100
*
Avire Australia Pty Limited Unit 39,110‑116 Bourke Road, Alexandria NSW 2015 Australia Ordinary 100
Avire Elevator Technology Shanghai Ltd 4th Floor, Building G, 1999‑2059 Duhui road, Shanghai,
201108, China
China Ordinary 100
Avire Global Pte Ltd 8, Admiralty Street, #07‑01/02 Admirax, 757438,
Singapore
Singapore Ordinary 100
Avire Limited Unit 2, The Switchback, Gardner Road, Maidenhead,
Berkshire, EN, SL6 7RJ, United Kingdom
United Kingdom Ordinary 100
Avire s.r.o.
Okružní 2615, České Budějovice, 370 01,
Czech Republic
Czech Republic Ordinary 100
Avire Trading Limited Unit 2 The Switchback, Gardner Road, Maidenhead,
Berkshire, EN, SL6 7RJ, United Kingdom
United Kingdom Ordinary 100
*
Avo Photonics (Canada) Inc. 20 Mural Street, Unit 7, Richmond Hill, Ontario,
L4B 1K3, Canada
Canada A & B shares 100
264 Halma plc | Annual Report and Accounts 2024
NOTES TO THE COMPANY ACCOUNTS continued
C5 Investments continued
Subsidiaries continued
Name Registered Address Country Class Group %
Avo Photonics, Inc. 120, Welsh Road, Horsham, PA 19044 United States A & B Preferred stock
and common stock
100
Axcess Surgical Innovations BV Kantstraat 19, Haaren, Netherlands Netherlands Ordinary 100
Axcess Surgical Innovations, LLC 141 California Ave, Suite 101, Half Moon Bay,
CA 94019
United States Membership interests 100
B.E.A. Holdings, Inc. 100 Enterprise Drive, RIDC Park West, Pittsburgh,
PA 15275, United States
United States Ordinary 100
B.E.A. Inc. 100 Enterprise Drive, RIDC Park West, Pittsburgh,
PA 15275, United States
United States Ordinary 100
B.E.A. Investments, Inc. 100 Enterprise Drive, RIDC Park West, Pittsburgh,
PA 15275, United States
United States Ordinary 100
Baoding Longer Precision Pump Co., Ltd Building A, Chuangye Center, Baoding National
High‑Tech Development Zone, Baoding, Hebei,
071051, China
China Ordinary 100
BEA Electronics (Beijing) Co Ltd Room 5959, Shenchang Building,
No.51, Zhichun Road, Haidian District, Beijing, China
China Ordinary 100
BEA Electronics Singapore Pte Ltd. 16 Raffles Quay, #38‑03, Hong Leong Building,
Singapore, 048581
Singapore Ordinary 100
BEA Japan KK 154‑0012 Komazawa, Setagaya‑ku 3‑28‑11,
Tokyo, Japan
Japan Ordinary 100
Beijing Ker’Kang Instrument Limited
Company
Unit 316, Area 1 Tower B, Chuangxin Building,
12 Hongda North Rd, Beijing, 100176, China
China Ordinary 100
Berson Milieutechniek BV PO Box 90, 5670 AB Nuenen, Netherlands Netherlands Ordinary 100
Bio‑Chem Fluidics, Inc. 85 Fulton Street, Boonton, New Jersey 07005,
United States
United States Ordinary 100
Bureau d’Electronique appliquée S.A. Allée des Noisetiers 5, Liege Science Park, B‑4031
LIEGE‑Angleur, Belgium
Belgium Ordinary 100
Business Marketers Group, Inc. N56 W24720 N. Corporate Circle, Sussex, WI, 53089 United States Ordinary 100
Cardio Dinâmica Ltda Avenida Paulista, 509, 3º andar,
conjuntos 308, 309 e 310, Sao Paulo, Brazil
Brazil Quotas 100
Cardio Sistemas Comercial e Industrial Ltda Avenida Paulista, 509, 1º e 2º andares, conjuntos 201,
212, 213 e 214, Bela Vista, São Paulo, Estado de São
Paulo, CEP 01311‑910, Brazil
Brazil Quotas 100
Castell Interlocks, Inc. 9048 Meridian Cir NW, North Canton, Ohio 44720 United States Ordinary 100
Castell Locks Limited (1) United Kingdom Ordinary 100
*
Castell Safety International Limited 217 Kingsbury Road, London, NW9 9PQ,
United Kingdom
United Kingdom Ordinary 100
*
Castell Safety Technology Limited (1) United Kingdom Ordinary 100
*
CEF Safety Systems BV Delftweg 69, 2289 BA Rijswijk, Netherlands Netherlands Ordinary 100
Celanova Limited 8 Faleas Street, Agios Athanasios, 4101, Limassol Cyprus Common Stock 100
CenTrak, Inc. 826, Newtown‑Yardley Road, Newtown, PA, 18940,
United States
United States Common Stock 100
Cosasco Middle East – FZE – Dubai Dubai Silicon Oasis Office, Dubai, United Arab Emirates United Arab Emirates Common Stock 100
Cosasco Middle East (FZE), Sharjah PO Box 8186, SAIF Zone, Sharjah, United Arab Emirates United Arab Emirates Common Stock 100
Cranford Controls Limited Unit 2, Waterbrook Estate, Waterbrook Road, Alton,
Hampshire, GU34 2UD, England, United Kingdom
United Kingdom Ordinary 100
Crowcon Detection Instruments Limited 172 Brook Drive, Milton Park, Oxfordshire, OX14 4SD,
United Kingdom
United Kingdom A & Ordinary 100
*
Dancutter A/S Livøvej 1A, 8800 Viborg, Denmark Denmark Ordinary 100
Deep Trekker Inc. 830 Trillium Drive, Kitchener, Ontario, N2R 1K4 Canada Unlimited common
shares
100
Deep Trekker SpA Ruta 5 Sur Km. 1025 Bodega 5 – Megacentro 1,
Puerto Montt, Región de Los Lagos
Chile Common Stock 100
Diba Industries Limited 2 College Park, Coldhams Lane, Cambridge, CB1 3HD,
United Kingdom
United Kingdom Ordinary 100
*
Diba Industries, Inc. 4, Precision Road, Danbury, CT, 06810, United States United States Common Stock 100
Halma plc | Annual Report and Accounts 2024 265
Governance Report Other InformationStrategic Report
Financial Statements
C5 Investments continued
Subsidiaries continued
Name Registered Address Country Class Group %
E&C Medical Intelligence, Inc. 100, Regency Forest Dr Ste 200, Cary, NC 27518 United States Common Stock 100
Eco Rupture Disc Limited (1) United Kingdom Ordinary 100
*
Eiffel APAC PTE. LTD 4, Shenton Way, #15‑01, SGX Centre II Singapore Ordinary 100
Eiffel Holdings Limited (1) United Kingdom Ordinary 100
Eiffel Investments UK Limited (1) United Kingdom Ordinary 100
Elfab Hughes Limited (1) United Kingdom Ordinary 100
*
Elfab Limited Alder Road, West Chirton Industrial Estate, North
Shields, Tyne & Wear, NE29 8SD, United Kingdom
United Kingdom Ordinary 100
*
F.I.R.E. Panel, LLC 8435 N. 90th St., Suite 2, Scottsdale AZ 85258,
United States
United States Common Stock 100
Fabrication de Produits de Sécurité SaRL 21 Rue du Cuir, ZI Sidi Rezig, Mégrine, 2033, Tunisia Tunisia Ordinary 100
FFE B.V J. Keplerweg 14, 2408AC Alphen aan den Rijn,
Netherlands
Netherlands Ordinary 100
FFE Holdings Limited (1) United Kingdom Deferred A & Ordinary 100
*
FFE Limited 9 Hunting Gate, Hitchin, Herts, SG4 0TJ, United
Kingdom
United Kingdom Ordinary 100
*
Fire Fighting Enterprises Limited (1) United Kingdom Ordinary 100
*
FirePro Eng. Co., Limited 1400, Hyeeum‑ro, Gwangtan‑myeon, Paju‑Si,
Gyeonggi‑do
Korea (the Republic
of)
Common Stock 60
FirePro Systems Ltd 8 Faleas Street, Agios Athanasios, 4101, Limassol Cyprus Common Stock 100
Firetrace Aerospace, LLC 8435, Suite 7, N. 90th St., Scottsdale, AZ, 85258,
United States
United States Ordinary 100
Firetrace International Asia Pte. Ltd 16 Collyer Quay, #11‑01, Hitachi Tower, Singapore,
049318, Singapore
Singapore Ordinary 100
Firetrace USA, LLC 8435, Suite 7, N. 90th St., Scottsdale, AZ, 85258,
United States
United States Ordinary 100
Fluid Conservation Systems, Inc. 1960 Old Gatesburg Rd, Ste #150, State College, PA
16803
United States Ordinary 100
FluxData Incorporated 176, Suite F304, Anderson Avenue, Rochester, NY, 14607 United States Ordinary 100
Fortress Interlocks Limited 2 Inverclyde Drive, Wolverhampton, West Midlands,
WV4 6FB, United Kingdom
United Kingdom Ordinary & Preferred
shares
100
*
Fortress Interlocks Pty Ltd Ross Wadeson Accountants, Unit 13, 20‑30 Malcolm
Road, Braeside, VIC, 3195, Australia
Australia Ordinary 100
Halma (China) Group Block 1, 3rd Floor, No. 123, Lane 1165, Jindu Road,
Minghang District, Shanghai, 201108, China
China Ordinary 100
Halma Australasia Holdings Limited (1) United Kingdom Ordinary 100
Halma Australasia Pty Limited 7, Ledgar Road, Balcatta, Western Australia, 6021,
Australia
Australia Ordinary 100
Halma Do Brasil – Equipamentos De
Segurança Ltda
Av. Tancredo Neves 620, Salas 1003/1004, Caminho das
Árvores, Salvador, Bahia, 41.820‑020, Brazil
Brazil Ordinary 100
Halma Euro Trading Limited (1) United Kingdom Ordinary 100
*
Halma Europe DS B.V. J Keplerweg 14, 2408 AC Alphen aan den Rijn Netherlands Ordinary 100
Halma Financing Limited (1) United Kingdom Ordinary 100
Halma Holding GmbH PO Box 35, Bruckstrasse 31, D‑72417 Jungingen,
Germany
Germany Ordinary 100
Halma Holdings Inc. 3500 Quadrangle Blvd., Orlando, FL 32817 United States Ordinary 100
Halma India Private Limited Prestige Shantiniketan’, Gate 2, Tower C, 7th Floor,
Whitefield Main Road, Mahadevapura, Bengaluru,
Bangalore, Karnataka, 560048, India
India Ordinary 100
Halma International BV De Huufkes 23, 5674TL Nuenen, Netherlands Netherlands Ordinary 100
Halma International Limited (1) United Kingdom A & Ordinary 100
*
Halma Investment Holdings Limited (1) United Kingdom Ordinary 100
Halma IT Services Limited (1) United Kingdom Ordinary 100
*
266 Halma plc | Annual Report and Accounts 2024
NOTES TO THE COMPANY ACCOUNTS continued
C5 Investments continued
Subsidiaries continued
Name Registered Address Country Class Group %
Halma Japan K.K. 1‑23‑5 Higashi‑azabu, Minato‑ku, Tokyo Japan Ordinary 100
Halma Overseas Funding Limited (1) United Kingdom Ordinary 100
Halma PR Services Limited (1) United Kingdom Ordinary 100
*
Halma Resistors Unlimited (1) United Kingdom Ordinary 100
Halma Safety Limited (1) United Kingdom Ordinary 100
*
Halma Saúde e Otica do Brasil –
Importação, Exportação e Distribuição Ltda
Avenida Marcos Penteado de Ulhoa Rodrigues,
n. 1119, 11th Floor, Suite 1102, Tambore,
Barueri/São Paulo, 06.460‑040, Brazil
Brazil Ordinary 100
Halma Services Limited (1) United Kingdom Ordinary 100
Halma UK DS Limited (1) United Kingdom Ordinary 100
*
Halma US, Inc. 3500 Quadrangle Blvd., Orlando, FL 32817 United States Common Stock 100
Halma Ventures Limited (1) United Kingdom Ordinary 100
*
Hanovia Limited 780/781 Buckingham Avenue, Slough, Berkshire,
SL1 4LA, United Kingdom
United Kingdom Ordinary 100
*
HWM‑Water Limited Ty Coch House, Llantarnam Park Way, Cwmbran,
Gwent, NP44 3AW, United Kingdom
United Kingdom Ordinary 100
*
Hydreka SAS 51, Avenue Rosa Parks, 69009, Lyon France Ordinary 100
Hyfire Italy SRL Via Achille Grandi 8, 20063 Cernusco sul Naviglio (MI) Italy Ordinary 100
Hyfire Wireless Fire Solutions Limited B12a Holly Farm Business Park, Honiley, Kenilworth,
Warwickshire, CV8 1NP
United Kingdom Ordinary 100
*
I.D. Infinity Developments Cyprus Limited 8 Faleas Street, Agios Athanasios, 4101, Limassol Cyprus Common Stock 100
Ilumark GmbH Hohenlindner Str. 11 c, 85622 Feldkirchen, Bavaria Germany Ordinary 100
Infinite Leap, Inc. 826, Newtown‑Yardley Road, Newtown, PA, 18940 United States Common Stock 100
InPipe GmbH Jagerwinkel 1a, 6991 Riezlern Austria Ordinary 90
Instituto Cardios de Ensino e Pesquisa em
Eletrocardiologia Não Invasiva e M.A.P.A.
Avenida Paulista, 509, 3º andar, conjuntos 308,
309 e 310, Sao Paulo, Brazil
Brazil Ordinary 100
International Light Technologies, Inc. 10 Technology Drive, Peabody, MA 01960, United States United States Ordinary 100
Invenio Systems Limited Ty Coch House Llantarnam Park Way, Cwmbran,
NP44 3AW
United Kingdom Ordinary 100
*
Iso‑Lok Limited (1) United Kingdom Ordinary 100
*
IZI Medical Products, LLC 5 Easter Court, Suite J, Owings Mills, Maryland 21117 United States Ordinary 100
Keeler Europe Distribution S.L. Argenters, 8. Edifici 3, Parc Tecnològic del Vallès,
08290 Cerdanyola, Spain
Spain Ordinary 100
Keeler Instruments, Inc. 3222, Phoenixville Pike, Malvern, PA, 19355,
United States
United States Ordinary 100
Keeler Limited Clewer Hill Road, Windsor, Berks, SL4 4AA,
United Kingdom
United Kingdom Ordinary 100
*
Kirk Key Interlock Company, LLC 9048, Meridian Circle NW, North Canton, OH, 44720,
United States
United States Ordinary 100
Labsphere, Inc. 231, Shaker Street, North Sutton, NH, 03260,
United States
United States Ordinary 100
Langer Instruments Corporation 7461, N. Business Park Drive, Tucson, AZ, 85743,
United States
United States Ordinary 100
Lazer Safe Investments Pty Limited 27 Action Road, Malaga WA 6090 Australia Ordinary & Class B 100
Lazer Safe Pty Ltd 27 Action Road, Malaga WA 6090 Australia Ordinary 100
Limotec Besloten Vennootschap (BV) Bosstraat 21, 8570 Anzegem (Vichte) Belgium Ordinary 100
Maxtec, LLC 2305, South 1070 West, Salt Lake City, UT, 84119,
United States
United States Common Stock 100
Meadowbridge Holdings Limited (1) United Kingdom Ordinary 100
*
Medicel AG Dornierstrasse 11, CH – 9423 Altenrhein, Switzerland Switzerland A & B Preference & C
Ordinary shares
100
MEDITECH Egészségügyi Szolgáltató,
Műszerfejlesztő és Kereskedelmi Kft.
1184, Budapest, Mikszáth Kálmán utca 24, 1184 Hungary Ordinary 100
Halma plc | Annual Report and Accounts 2024 267
Governance Report Other InformationStrategic Report
Financial Statements
C5 Investments continued
Subsidiaries continued
Name Registered Address Country Class Group %
MicroSurgical Technologies Germany GmbH 73, Neuenhaus Platz, Erkath, 40699 Germany Ordinary 100
MicroSurgical Technology, Inc. 8415, 154th Avenue NE, Redmond, WA, 98052,
United States
United States Common Stock 100
Mini‑Cam Enterprises Limited Unit 33, Ravenscraig Road, Little Hulton,
Manchester, M38 9PU
United Kingdom Ordinary 100
*
Minicam Inc. 12600 Newburgh Rd, Livonia, MI, 48150 United States Common Stock 100
Minicam Limited Unit 33, Ravenscraig Road, Little Hulton,
Manchester, M38 9PU
United Kingdom Ordinary 100
*
Mistura Systems Limited (1) United Kingdom Ordinary 100
*
Navtech Radar Limited Home Farm, Ardington, Wantage, Oxfordshire,
OX12 8PD
United Kingdom Ordinary 100
*
NB Products, Inc. 13510 NW US Highway 441, Alachua, FL 32615 United States Common Stock 100
Nimbus Digital Solutions Limited Chelsea House, Chelsea Street, New Basford,
Nottingham, Nottinghamshire, NG7 7HP
United Kingdom Ordinary 100
*
Nisolio Investments Limited 8 Faleas Street, Agios Athanasios, 4101, Limassol Cyprus Common Stock 100
NovaBone Products, LLC 13510, NW US Highway 441, Alachua, FL, 32615,
United States
United States Common Stock 100
Nuvonic GmbH Hungenbach 1D, D‑51515 Kürten Germany Ordinary 100
Ocean Optics (Shanghai) Co., Ltd 155, Tower A 3rd Floor, Yuanke Road, Building 16,
Minhang District, Shanghai, China
China Ordinary 100
Ocean Optics Asia LLC Suite 601, Kirin Tower, 666 Gubei Road, Shanghai,
200336, China
United States Common Stock 100
Ocean Optics BV Geograaf 24, 6921EW Duiven, Netherlands Netherlands Ordinary 100
Ocean Optics, Inc. 3500 Quadrangle Blvd, Orlando, FL 32817 United States Ordinary 100
Oklahoma Safety Equipment Co, Inc. 1701, West Tacoma, P.O. Box 1327, Broken Arrow, OK,
74013, United States
United States Ordinary 100
P.J.K.A. Investments Limited 8 Faleas Street, Agios Athanasios, 4101, Limassol Cyprus Common Stock 100
Palintest Limited Kingsway, Team Valley, Gateshead, Tyne & Wear,
NE11 0NS, United Kingdom
United Kingdom Ordinary & Deferred
Shares
100
*
Palmer Environmental Limited (1) United Kingdom Ordinary 100
*
Palmer Environmental Services Limited (1) United Kingdom A & Ordinary 100
*
PeriGen (Canada) Ltd 245, Victoria, Suite 600, Montreal, PQ, H3Z 2M6 Canada Ordinary 100
PeriGen Solutions Ltd 2, Azrieli Rishonim, Nim Boulevard, POB 110,
Rishon LeZion, 7510002
Israel Ordinary 100
PeriGen, Inc. 100, Regency Forest Dr Ste 200, Cary, NC 27518 United States Common Stock 100
Perma Pure India Private Limited Plot No. A/147, Road No. 24, Wagle Industrial Estate,
Thane West, Maharashtra, THANE 400064, India
India Ordinary 100
Perma Pure, LLC 1001, New Hampshire Ave., Lakewood, NJ, 08701,
United States
United States Ordinary 100
Pixelteq, Inc. 3500 Quadrangle Blvd., Orlando, FL, 32781 United States Ordinary 100
Power Equipment Limited (1) United Kingdom Preference & Ordinary 100
*
Radcom (Technologies) Limited Ty Coch House, Llantarnam Park Way, Cwmbran,
Gwent, NP44 3AW, United Kingdom
United Kingdom Ordinary 100
*
RadioMed Corporation 5 Easter Court, Suite J, Owings Mills, Maryland 21117 United States Common Stock 100
Radio‑Tech Limited (1) United Kingdom Ordinary 100
*
Ramtech Electronics Limited Ramtech House, Castlebridge Office Village,
Castle Marina Road, Nottingham, NG7 1TN
United Kingdom Ordinary 100
Ramtech North America, Inc. 5126, Royal Atlanta Drive, Tucker, GA 30084 United States Ordinary 100
Ramtech Overseas Limited Ramtech House, Castlebridge Office Village,
Castle Marina Road, Nottingham, NG7 1TN
United Kingdom Ordinary 100
268 Halma plc | Annual Report and Accounts 2024
NOTES TO THE COMPANY ACCOUNTS continued
C5 Investments continued
Subsidiaries continued
Name Registered Address Country Class Group %
RCS Corrosion Services Sdn. Bhd Level 21, Suite 21.01, The Garden South Tower,
Mid Valley City, Lingkaran Syed Putra, Kuala Lumpur,
Wilayah Persekutuan, 59200, Malaysia
Malaysia Ordinary 100
RCS International Limited (1) United Kingdom Ordinary 100
Research Engineers Limited (1) United Kingdom Ordinary 100
*
Reten Acoustics Limited (1) United Kingdom Ordinary 100
*
Riester USA, LLC 10404 Chapel Hill Rd Ste 112, Morrisville, NC 27560 United States Ordinary 100
R.M. Invest B.V. Lekstraat 10, 5347KV Oss, the Netherlands Netherlands Ordinary A, Ordinary B
& Cumulative
Preference Shares
100
Robutec AG Dornierstrasse 11, CH – 9423 Altenrhein, Switzerland Switzerland Ordinary 100
Rohrback Cosasco International Limited OIL (Offshore Inc Limited) PO Box 957, Offshore
Incorporations Centre, Road Town, Tortola,
British Virgin Islands
British Virgin Islands Ordinary 100
Rohrback Cosasco Systems LLC Gulf Consulting House, Saudi Arabia Saudi Arabia Common Stock 100
Rohrback Cosasco Systems Pte Ltd Ardent Business Advisory, 146, Robinson Road,
#12‑01, Singapore, 068909, Singapore
Singapore Ordinary 100
Rohrback Cosasco Systems Pty Ltd Unit 5, 17 Caloundra Road, Clarkson, WA, Australia Australia Ordinary 100
Rohrback Cosasco Systems UK Limited (1) United Kingdom Ordinary 100
*
Rohrback Cosasco Systems, Inc 11841, Smith Avenue, Santa Fe Springs, CA, 90670,
United States
United States Common Stock 100
Rovers Medical Devices B.V. Lekstraat 10, 5347KV Oss, the Netherlands Netherlands Ordinary 100
Rovers Vastgoed B.V. Lekstraat 10, 5347KV Oss, the Netherlands Netherlands Ordinary 100
Rudolf Riester GmbH Bruckstrasse 31, D‑72417 Jungingen, Germany Germany Ordinary 100
S.E.R.V. Trayvou Interverrouillage SA 1 Ter, Rue du Marais Bat B, 93106 Montreuil, Cedex,
France
France Ordinary 100
SCP IR Acquisition, LLC Corporation Trust Center, 1209 Orange Street,
Wilmington, Delaware 19801
United States Common Stock 100
Sensit Technologies EMEA S.r.l. Via Tortona n. 33, Milano, 20144, Italy Italy Ordinary 100
Sensit Technologies, LLC 851, Transport Dr., Valparaiso, IN, 46383, United States United States Common Stock 100
Sensitron SRL Cornaredo (MI) Viele Della Repubblica 48, Cap, 20007 Italy Ordinary 100
Sensorex Corporation 11751, Markon Drive, Garden Grove, CA, 92841,
United States
United States Common Stock 100
Sensorex s.r.o.
Rudolfovská tř., 149/64, České Budějovice 4, 370 01
České Budějovice
Czech Republic Ordinary 100
Sentric China Ltd Floor 2, Building 63, No 421 Hongcao Road, Xuhui
District, Shanghai
China Ordinary 100
Sentric Safety Group Limited (1) United Kingdom Ordinary 100
*
Setco S.A.U. Carrer del Ripollès 5, 08820 El Prat de Llobregat,
Barcelona
Spain Ordinary 100
Sewertronics sp. z o.o. Białobrzegi 3L, 37‑114 Białobrzegi Poland Ordinary 100
Shanghai Labsphere Optical Equipments Co.,
Ltd
Block 1, No. 123, Lane 1165, Jindu Road, Minhang
District, Shanghai, 201108, China
China Ordinary 100
Shaw Moisture Meters (U.K.) Limited Len Shaw Building, Bolton Lane, Bradford, West Yorks,
BD2 1AF
United Kingdom Ordinary 100
Shaw Moisture Meters (USA) 882 SOUTH MATLACK STREET, UNIT 107 WEST CHESTER,
PA 19382
United States Membership interests 100
Skyterra Investments Limited 8 Faleas Street, Agios Athanasios, 4101, Limassol Cyprus Common Stock 100
Smith Flow Control Limited (1) United Kingdom Ordinary 100
*
Sofis BV J Keplerweg 14, 2408 AC Alphen aan den Rijn,
Netherlands
Netherlands Ordinary 100
Sofis GmbH Hahnenkammstrasse 12, 63811 Stockstadt, Germany Germany Ordinary 100
Sofis Limited Unit 7B, West Station Business Park, Spital Road,
Maldon, CM9 6FF, England, United Kingdom
United Kingdom Ordinary 100
*
Halma plc | Annual Report and Accounts 2024 269
Governance Report Other InformationStrategic Report
Financial Statements
C5 Investments continued
Subsidiaries continued
Name Registered Address Country Class Group %
Sofis, Inc. 13105, Northwest Freeway, Suite 1120, Houston, TX,
77040, United States
United States Ordinary 100
Sonar Research & Development Limited (1) United Kingdom Ordinary 100
*
Static Systems Group Limited Heath Mill Road, Wombourne, Wolverhampton,
WV5 8AN, England
United Kingdom Ordinary 100
Static Systems Holdings Limited Heath Mill Road, Wombourne, Wolverhampton,
WV5 8AN, England
United Kingdom Ordinary 100
*
SunTech Group EB Trustee Limited (1) United Kingdom Ordinary 100
SunTech Medical (USA), LLC 5827 S. Miami Blvd., Suite 100, Morrisville, NC 27560 United States Common Stock 100
SunTech Medical Devices (Shenzhen) Co. Ltd 2‑3/F, Block A, Jinxiongda Technology Park, Guanlan,
Bao’an District, Shenzhen, Guangdong, 518110, China
China Ordinary 100
SunTech Medical Group Limited (1) United Kingdom Ordinary 100
SunTech Medical Ltd (Hong Kong) 8th Floor, Gloucester Tower, The Landmark,
15 Queen’s Road Central, Hong Kong
Hong Kong Ordinary 100
SunTech Medical, Inc. 5827 S. Miami Blvd., Suite 100, Morrisville, NC 27560 United States Common Stock 100
T.L. Jones Limited BDO Christchurch Limited, 287‑293 Durham Street,
Christchurch Central, Christchurch, 8013
New Zealand Ordinary 100
Talentum Developments Limited 9 Hunting Gate, Hitchin, Herts, SG4 0TJ,
United Kingdom
United Kingdom Ordinary 100
*
TeDan Surgical Innovations BV Kantstraat 19, Haaren, Netherlands Netherlands Ordinary 100
TeDan Surgical Innovations GmbH Steinbuckle 12, 73441 Bopfinger, Germany Germany Ordinary 100
TeDan Surgical Innovations Inc 12320 Cardinal Meadow Dr Suite #150, Sugar Land,
TX 77478
United States Common Stock 100
Telegan Gas Monitoring Limited (1) United Kingdom Ordinary 100
*
Thermocable (Flexible Elements) Limited Pasture Lane, Clayton, Bradford, BD14 6LU United Kingdom Ordinary, Ordinary A &
Ordinary B shares
100
*
Thinketron Precision Equipment Company
Limited
402, Jardine House, 1 Connaught Place, Central Hong Kong Ordinary 100
Value Added Solutions LLC 4 Precision Road, Danbury, CT, 06810, United States United States Common Stock 100
Visual Performance Diagnostics, Inc. 3222 Phoenixville Pike, Bldg. 50, Malvern, PA 19355 United States Common Stock 100
Volk Optical Inc. 7893, Enterprise Drive, Mentor, OH, 44060,
United States
United States Common Stock 100
WatchChild, LLC 100, Regency Forest Dr Ste 200, Cary, NC 27518 United States Common Stock 100
Weetech Asia Pte. Ltd. 205 Balestier Road, #02‑06, The Mezzo, (329682) Singapore Ordinary 100
Weetech B.V. Eindstraat 53 B, 5151 AE Drunen Netherlands Common Stock 100
Weetech China Ltd Room 265, Building 8, No.509, Huajing Road,
Xuhui District, Shanghai
China Ordinary 100
Weetech GmbH Hafenstraße 1, 97877 Wertheim Germany Ordinary 100
WEETECH Inc. 1300 North Skokie HWY, Ste 100, Gurnee, IL 60031 United States Common Stock 100
Weetech SRL Viale Abruzzi, 94, Milan (20131) Italy Common Stock 100
West Coast Surgical LLC 141 California Ave, Suite 101, Half Moon Bay, CA 94019 United States Common Stock 100
Wetherby Engineers Limited Alpha House, 96 City Road, Bradford, West Yorkshire,
United Kingdom, BD8 8ES
United Kingdom Ordinary 100
Wilkinson & Simpson Limited (1) United Kingdom Deferred & Ordinary 100
*
Ziegler Electronic Devices GmbH In den Folgen 7, 98693 Ilmenau Germany Ordinary 100
Zonegreen 2013 Limited Sir John Brown Building Davy Industrial Parl, Prince of
Wales Road, Sheffield, South Yorkshire, S9 4EX
United Kingdom Ordinary 100
*
Zonegreen Limited Sir John Brown Building Davy Industrial Parl, Prince of
Wales Road, Sheffield, South Yorkshire, S9 4EX
United Kingdom Ordinary A & C shares 100
* Directly held by the Company.
(1) Misbourne Court, Rectory Way, Amersham, Buckinghamshire HP7 0DE.
270 Halma plc | Annual Report and Accounts 2024
NOTES TO THE COMPANY ACCOUNTS continued
C6 Debtors
31 March
2024
£m
31 March
2023
£m
Amounts falling due in more than one year:
Amounts due from Group companies 3.5 1.0
Amounts falling due within one year:
Amounts due from Group companies 1,191.1 1,024.6
Other debtors 2.1 0.2
Prepayments 7.0 7.8
1,203.7 1,033.6
Amounts owed by Group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
C7 Borrowings
31 March
2024
£m
31 March
2023
£m
Falling due within one year:
Overdrafts 4.5 2.5
Lease liabilities 0.4 –
4.9 2.5
Falling due after more than one year:
Unsecured loan notes 370.9 376.9
Unsecured bank loans 341.0 300.4
Lease liabilities 0.9 –
712.8 677.3
Total borrowings 717.7 679.8
The Company has two sources of long‑term funding, which comprise:
• an unsecured five‑year £550m Revolving Credit Facility, which currently runs to May 2028 after the exercise of the first of two one‑year
extension options during the year and is therefore classified as expiring within two to five years (2023: within two to five years). Since
the end of the year, the second one‑year extension has been exercised, with the subsequent maturity date of May 2029. At 31 March
2024, £209.0m (2023: £249.6m) remained committed and undrawn; and
• unsecured loan notes completed in May 2022 and drawn on 12 July 2022 in a mix of Sterling, US Dollars, Euro and Swiss Francs with a
10year final maturity, amortising from year four to year ten and an average maturity of seven years. In addition, unsecured loan
notesof £35m completed in November 2015 and drawn on 6 January 2016 remain outstanding and mature in January 2026. At
31 March 2024, the outstanding loan notes totalled £370.9m (2023: £376.9m). The next tranche of loan notes is due to mature in
January 2026, as such all loan notes are classified as falling due after more than one year. Subsequent to the year end, a new
placement was completed which is described in note C14.
The bank overdrafts, which are unsecured, at 31 March 2024 and 31 March 2023 were drawn on uncommitted facilities which all
expirewithin one year and were held pursuant to a Group pooling arrangement which offsets them against credit balances in
subsidiaryundertakings.
As part of the Group’s cash pooling arrangements UK companies have cross‑guaranteed net overdraft facilities of £13.2m (2023: £13.2m).
Total net overdrafts relating to cash pooling as at 31 March 2024 were £nil (2023: £nil). Total overdrafts for the Group as at 31 March 2024
were £0.3m (2023: £1.0m).
C8 Creditors: amounts falling due within one year
31 March
2024
£m
31 March
2023
£m
Trade creditors 3.7 0.7
Amounts owing to Group companies 121.8 73.7
Other taxation and social security – 0.6
Loss on forward contracts 1.4 –
Other creditors 2.9 0.9
Provision for contingent consideration 0.6 –
Accruals 28.8 23.7
159.2 99.6
Amounts owed to Group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
Halma plc | Annual Report and Accounts 2024 271
Governance Report Other InformationStrategic Report
Financial Statements
C9 Creditors: amounts falling due after more than one year
31 March
2024
£m
31 March
2023
£m
Amounts owing to Group companies 12.5 12.7
Other creditors 1.7 1.2
14.2 13.9
These liabilities fall due as follows:
Within one to two years 1.7 1.2
After more than five years 12.5 12.7
Amounts owed to Group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
C10 Deferred tax Liability
Retirement
benefit
obligations
£m
Short–term
timing
differences
£m
Total
£m
At 1 April 2023 (7.2) 1.6 (5.6)
(Charge)/credit to Profit and Loss account (0.2) 0.7 0.5
Credit to comprehensive income 2.0 – 2.0
Credit to equity – 0.2 0.2
At 31 March 2024 (5.4) 2.5 (2.9)
At 1 April 2022 (6.7) 1.3 (5.4)
(Charge)/credit to Profit and Loss account (0.2) 0.4 0.2
Charge to comprehensive income (0.3) – (0.3)
Charge to equity – (0.1) (0.1)
At 31 March 2023 (7.2) 1.6 (5.6)
C11 Share capital
Issued and fully paid
31 March
2024
£m
31 March
2023
£m
Ordinary shares of 10p each 38.0 38.0
The number of ordinary shares in issue at 31 March 2024 was 379,645,332 (2023: 379,645,332), including shares held by the Employee
Benefit Trust of 2,457,205 (2023: 1,901,415).
C12 Reserves
The Capital redemption reserve was created on the repurchase and cancellation of the Company’s own shares. Own shares are ordinary
shares in Halma plc purchased by the Company and held to fulfil its obligations under the Group’s share plans. Profits available for
distributions are reduced by the value of Own shares.
Included in the profit and loss account are accumulated credits of £35.0m (2023: £26.9m) representing the provision for the value of
unvested awards under the Group’s equity settled share plans.
C13 Retirement benefits
The Company participates in, and is the sponsoring employer of, the Halma Group Pension Plan. The plan closed to new entrants in
2002/03 and to future benefit accrual in 2014/15. From that date, the former defined benefit members joined the Company’s existing
defined contribution plan (which has now been superseded by a defined contribution Master Trust with Aegon).
There is no contractual agreement or stated policy for charging the net defined benefit cost within the Group. In accordance with IAS 19
(Revised 2011), the Company contribution made to the defined benefit plan during the year ended 31 March 2024 was nil (2023: £4.4m).
Net interest income on pension plan liabilities/assets of £1.3m (2023: net interest income of £0.9m) was recognised in the Profit and Loss
Account in respect of the Company defined benefit plan.
The net movement on actuarial gains and losses of the plan reported in the Company Statement of Comprehensive Income and
Expenditure was as follows:
Year ended
31 March
2024
£m
Year ended
31 March
2023
£m
Defined benefit obligations 4.0 52.1
Fair value of plan assets (11.8) (61.5)
Net actuarial losses (7.8) (9.4)
The actual return on plan assets was a loss of £1.6m (2023: loss of £53.9m).
272 Halma plc | Annual Report and Accounts 2024
NOTES TO THE COMPANY ACCOUNTS continued
C13 Retirement benefits continued
The amount included in the Company Balance Sheet arising from the Company’s obligations in respect of its defined benefit retirement
plan is as follows:
31 March
2024
£m
31 March
2023
£m
Present value of defined benefit obligations (185.4) (188.5)
Fair value of plan assets 207.0 217.2
Asset recognised in the Company Balance Sheet 21.6 28.7
Movements in the present value of the defined benefit obligation were as follows:
Year ended
31 March
2024
£m
Year ended
31 March
2023
£m
At beginning of year (188.5) (241.8)
Interest cost (8.8) (6.7)
Remeasurement gains/(losses):
Actuarial gains arising from changes in financial assumptions 2.6 64.7
Actuarial gains arising from demographic assumptions 1.8 0.7
Actuarial losses arising from experience adjustments (0.4) (13.3)
1.8 0.7
Benefits paid 7.9 7.9
At end of year (185.4) (188.5)
Movements in the fair value of the plan assets were as follows:
Year ended
31 March
2024
£m
Year ended
31 March
2023
£m
At beginning of year 217.2 268.5
Interest income 10.1 7.6
Administration expenses (0.6) –
Actuarial losses, excluding interest income (11.8) (61.5)
Contributions from the sponsoring companies – 10.5
Benefits paid (7.9) (7.9)
At end of year 207.0 217.2
The plan’s triennial actuarial valuation review, rather than the accounting basis, is used to evaluate the level of any cash payments into
the plan. Based on this valuation, the Trustees having consulted with the Company, agreed past service deficit recovery payments to
bemade for the immediate future with the objective of funding the plans in excess of the Technical Provisions valuation. During the year
ended 31 March 2023 the aggregate payments made since the last triennial actuarial valuation, coupled with the performance of the plan
assets and movement in the liabilities resulted in the Halma Group Pension Plan being funded over the trustees’ secondary funding target
and closer to the expected current valuation on a solvency basis. As a result, it was agreed with the trustees of the Halma Group Pension
Plan that contributions are suspended until April 2025, when they will either fall due or be superseded by cash contributions agreed with
the trustees in respect of the latest triennial actuarial valuation.
Further details of Halma Group Pension Plan, including all disclosures required under FRS 101, are contained in note 29 to the Group accounts.
C14 Events subsequent to end of reporting period
In April 2024, a new Private Placement of £336m was completed. The issuance consists of a US Dollar tranche of US$110m maturing
inApril 2035, with an amortisation profile giving it a 9.5 year average life and a Euro tranche of €290m maturing in April 2034, with
anamortisation profile giving it a 7.75 year average life. In May 2024, the Revolving Credit Facility was further extended and now
maturesin May 2029.
On 30 April 2024, the Company, acquired the entire share capital of MK Test Systems Limited (MK Test), based in Wellington,
Somerset,UKfor an initial cash consideration of c.£44m on a cash and debt‑free basis.
There were no other known material non‑adjusting events which occurred between the end of the reporting period and prior to the
authorisation of these financial statements on 13 June 2024.
Halma plc | Annual Report and Accounts 2024 273
Governance Report Other InformationStrategic Report
Financial Statements
2014/15
£m
(Note 5)
2015/16
£m
2016/17
£m
2017/18
£m
Revenue (note 1) 726.1 807.8 961.7 1,076.2
Overseas sales (note 1) 587.8 663.0 806.7 902.9
Profit before interest, taxation, and adjustments (note 2) 158.5 173.1 203.3 223.4
Profit before taxation and adjustments (note 2) 153.6 166.0 194.0 213.7
Net tangible assets/capital employed 219.1 258.6 302.2 322.0
Borrowings (excluding overdrafts) 140.4 296.2 262.1 290.0
Acquisition spend (note 8) 88.2 202.6 10.2 117.6
Annual R&D spend/Revenue 4.8% 5.1% 5.3% 5.2%
Net debt/EBITDA 0.56 1.27 0.86 0.87
Cash and cash equivalents (net of overdrafts) 39.5 49.5 65.6 69.7
Number of employees (note 1) 5,328 5,604 5,771 6,113
Basic earnings per share (note 1) 27.49p 28.76p 34.25p 40.69p
Adjusted earnings per share (note 2) 31.17p 34.26p 40.21p 45.26p
Year‑on‑year increase in adjusted earnings per share 9.5% 9.9% 17.4% 12.6%
Adjusted EBIT margin (notes 1 and 3) 21.8% 21.4% 21.1% 20.8%
Return on Sales (notes 1 and 3) 21.2% 20.6% 20.2% 19.9%
Return on Capital Employed (restated – note 4) 77.6% 72.4% 72.5% 71.6%
Return on Total Invested Capital (restated – note 4) 16.3% 15.6% 15.3% 15.2%
Cash Conversion (note 6) 88% 86% 86% 85%
Year‑on‑year increase in dividends per ordinary share (paid and proposed) 7% 7% 7% 7%
Ordinary share price at financial year end 701p 912p 1024p 1179p
Market capitalisation at financial year end 2,661.3 3,462.4 3,887.6 4,476.0
All years are presented under IFRS.
Notes:
1 Continuing and discontinued operations.
2 Adjusted to remove the amortisation and impairment of acquired intangible assets and acquisition transaction costs, release of fair value adjustments to inventory,
adjustments to contingent consideration (collectively ‘acquisition items’), significant restructuring costs and profit or loss on disposal of operations. IFRS figures
include results of operations up to the date of their sales or closure but exclude material discontinued and continuing profits on sales or closures of operations.
In 2013/14 only, the effects of closure to future benefit accrual of the defined benefit pension plans have also been removed. In 2018/19, the adjustments also
includethe effect of equalising pension benefits for men and women in the Group’s defined benefit pension plans.
3 Both Return on Sales, which is defined as profit before taxation expressed as a percentage of revenue, and EBIT margin, which is defined as Profit between interest and
taxation expressed as a percentage of revenue, are adjusted to remove the amortisation and impairment of acquired intangible assets; acquisition items; restructuring
costs, profit or loss on disposal of operations; the effect of equalising pension benefits for men and women in the defined benefit pension plans (2018/19 only); and the
effects of closure to future benefit accrual of the defined benefit pension plans net of associated costs (2013/14 only).
4 See note 3 to the Report and Accounts for the definitions of ROCE and ROTIC. The ROCE and ROTIC measures were restated in 2014/15 and for all prior years to use
an average Capital Employed and Total Invested Capital respectively. This measure is considered to be more representative. From 2019/20 the measures include the
impact of adopting IFRS 16 ‘Leases’. There is no material impact on either measure from its inclusion.
5 The 2015/16 figures were restated in 2016/17, as required by IFRS 3 (revised) ‘Business Combinations’, for material changes arising on the provisional accounting for
acquisitions in 2014/15.
6 IFRS 16 was implemented from our 2020 financial year onwards, and benefited cash conversion in that year by approximately 5 percentage points. Accordingly,
we increased our cash conversion target from >85% to >90%. We have not restated cash conversion prior to 2020, and therefore the 90% average over the last
10financial years reflects an outperformance against the average of targets prior to and from 2020.
7 CAGR (compound annual growth rate) is the annualised rate of growth over the 10 year period presented. For Revenue, Overseas sales, Profit before interest, taxation
and adjustments, Profit before taxation and adjustments, Basic and Adjusted EPS CAGR is calculated using 2013/14 amounts as the base year as follows: Revenue
£676.5m, Overseas sales £548.6m, PBIT £144.9m, PBT £140.2m, Basic EPS 28.14p, Adjusted EPS 28.47p. The dividend CAGR is derived using the 2013/14 dividend of
£40.5m and 2023/24 dividend of £78.2m.
8 Acquisition spend is as presented in the Non‑operating cash flow and reconciliation to net debt in the Financial Review, comprising acquisition cost, net of cash
acquired plus acquisition costs and debt acquired, settled on acquisition and contingent consideration settled during the year.
274 Halma plc | Annual Report and Accounts 2024
SUMMARY 2015 TO 2024
2018/19
£m
2019/20
£m
2020/21
£m
2021/22
£m
2022/23
£m
2023/24
£m
(Note 7)
10 Year Average/
CAGR
*
/ Total
**
£m
1,210.9 1,338.4 1,318.2 1,525.3 1,852.8 2,034.1 11.6%
*
1,010.0 1,117.2 1,104.6 1,258.2 1,575.0 1,740.1 12.2%
*
255.7 279.1 288.3 324.6 378.2 424.0 11.3%
*
245.7 267.0 278.3 316.2 361.3 396.4 11.0%
*
358.9 416.9 389.5 454.2 595.2 639.6
253.8 419.2 322.3 359.4 677.3 711.9
68.1 238.0 48.8 164.4 391.5 263.4 1,592.8
**
5.2% 5.4% 5.3% 5.5% 5.5% 5.3% 5.3%
0.63 1.13 0.76 0.74 1.38 1.35 1.00
72.1 105.4 131.1 156.7 168.5 142.4
6,508 6,992 7,120 7,522 8,141 8,615
44.78p 48.66p 53.61p 64.54p 62.04p 71.23p 9.7%
*
52.74p 57.39p 58.67p 65.48p 76.34p 82.40p 11.2%
*
16.5% 8.8% 2.2% 11.6% 16.6% 7.9%
21.1% 20.9% 21.9% 21.3% 20.4% 20.8% 21.2%
20.3% 19.9% 21.1% 20.7% 19.5% 19.5% 20.3%
75.1% 71.4% 70.9% 76.4% 71.5% 68.2% 72.8%
16.1% 15.3% 14.4% 14.6% 14.8% 14.4% 15.2%
88% 98% 104% 84% 78% 103% 90%
7% 5% 7% 7% 7% 7% 6.8%
*
1672p 1921p 2374p 2510p 2229p 2368p
6,347.7 7,293.0 9,012.8 9,529.1 8,462.3 8,990.0
Halma plc | Annual Report and Accounts 2024 275
Governance Report Other InformationStrategic Report
Financial Statements
Halma plc
Misbourne Court
Rectory Way
Amersham
Bucks HP7 0DE
Tel: +44 (0)1494 721111
halma@halma.com
www.halma.com
Registered in England and
Wales, No 040932
Investor relations
Head of Investor Relations
Halma plc
Misbourne Court
Rectory Way
Amersham
Bucks HP7 0DE
investor.relations@halma.com
Registrar
Computershare Investor
Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
Tel: +44 (0)370 707 1046
www.investorcentre.co.uk
Auditor
PricewaterhouseCoopers LLP
40 Clarendon Road
Watford
Hertfordshire WD17 1JJ
Advisers
Brokers
UBS
5 Broadgate
London EC2M 2QS
Morgan Stanley
20 Bank Street
Canary Wharf
London E14 4AD
Corporate solicitors
Ashurst LLP
London Fruit & Wool Exchange
1 Duval Square
London E1 6PW
Financial PR
MHP Group
4th Floor
60 Great Portland Street
London W1W 7RT
Tel: +44 (0)20 3128 8100
halma@mhpc.com
Financial advisers
Lazard & Co., Limited
50 Stratton Street
London W1J 8LL
Morgan Stanley
20 Bank Street
Canary Wharf
London E14 4AD
Investor information
Visit our website, www.halma.com, for investor information
andCompany news. In addition to accessing financial data, you
can view and download Annual and Half Year Reports, analyst
presentations, find contact details for Halma senior executives
andsubsidiary companies and access links to Halma subsidiary
websites. You can also subscribe to an email news alert service to
automatically receive an email when significant announcements
are made.
Shareholding information
Please contact our Registrar, Computershare, directly for all
enquiries about your shareholding. Visit their Investor Centre
website www.investorcentre.co.uk for online information
aboutyour shareholding (you will need your shareholder reference
number which can be found on your share certificate or dividend
confirmation), or telephone the Registrar direct using the
dedicated telephone number for Halma shareholders:
+44 (0)370 707 1046.
Dividend mandate
Shareholders can arrange to have their dividends paid directly
intotheir bank or building society account by completing a bank
mandate form. The advantages to using this service are: the
payment is more secure than sending a cheque through the post;
itavoids the inconvenience of paying in a cheque and reduces
therisk of lost, stolen or out‑of‑date cheques.
Financial calendar
Annual General Meeting 25 July 2024
2023/24 Final dividend payable 16 August 2024
2024/25 Half year end 30 September 2024
2024/25 Half year results 21 November 2024
2024/25 Interim dividend payable February 2025
2024/25 Year end 31 March 2025
2024/25 Final results June 2025
Dividend history
2024 2023 2022 2021 2020
Interim 8.41p 7.86p 7.35p 6.87p 6.54p
Final 13.20p
*
12.34p 11.53p 10.78p 9.96p
Total 21.61p 20.20p 18.88p 17.65p 16.50p
* Proposed.
A mandate form can be obtained from Computershare or you will
find one on the reverse of your last dividend confirmation.
Dividend reinvestment plan
The Company operates a dividend reinvestment plan (DRIP) which
offers shareholders the option to elect to have their cash dividends
reinvested in Halma ordinary shares purchased in the market.
You can register for the DRIP online by visiting Computershare’s
Investor Centre website (as above) or by requesting an application
form direct from Computershare.
Shareholders who wish to elect for the DRIP for the forthcoming
final dividend, but have not already done so, should return a DRIP
application form to Computershare no later than 26 July 2024.
Electronic communications
All shareholder communications, including the Company’s Annual
Report and Accounts, are made available to shareholders on the
Halma website and you may opt to receive email notification that
documents and information are available to view and download
rather than to receive paper copies through the post. Using
electronic communications helps us to limit the amount of
paperwe use and assists us in reducing our costs.
If you would like to sign up for this service, visit Computershare’s
Investor Centre website. You may change the way you receive
communications at any time by contacting Computershare.
276 Halma plc | Annual Report and Accounts 2024
SHAREHOLDER INFORMATION
Designed and produced by Brunswick Creative
www.brunswickgroup.com
The paper used in this report is produced using virgin
wood fibre from well‑managed forests with FSC
®
certification. All pulps used are elemental chlorine
free and manufactured at a mill that has been
awarded the ISO 14001 and EMAS certificates for
environmental management. The use of the FSC
®
logo identifies products which contain wood from
well‑managed forests certified in accordance with
the rules of the Forest Stewardship Council. Printed
by Park Communications, an FSC
®
and ISO 14001
accredited company, who is committed to all
round excellence and improving environmental
performance as an important part of this strategy.
Back cover: Theodosia Kyprianou
Production line worker, FirePro
Halma plc
Misbourne Court
Rectory Way
Amersham
Bucks HP7 0DE
+44 (0)1494 721111
www.halma.com