(Sharecast News) - Shares in Halma tanked on Thursday, despite a jump in full-year earnings, after a conservative outlook from the safety equipment and life-saving technology specialist disappointed.
The blue chip saw revenues rise 14.9% to £2.58bn, or 16.6% on an organic basis, in the year to 31 March, while adjusted earnings before interest and tax surged 22% to an above-forecast £594.5m. It is the first time earnings have come in above £500m.

Statutory pre-tax profits were 27.7% stronger at £490.7m.

Halma said demand had been broad-based across its three sectors - safety, environment and healthcare - with premium growth in its photonics business, despite difficult conditions.

Marc Ronchetti, chief executive, called it a "successful year".

He continued: "We delivered our 23rd consecutive year of adjusted profit growth in an uncertain economic and geopolitical environment. This reflects the fundamental strengths of our sustainable growth model, the long-term growth drivers that underpin our diverse portfolio and the cumulative benefit of decades of disciplined choices around the markets we operate in."

Looking to the current year, and Halma said it had made a "positive" start, with a robust order book and order intake ahead of revenue and last year.

However, it also acknowledged that conditions remained uncertain, with its companies continuing to experience "varied conditions" in their end markets, and adopted a conservative outlook for the full year. It is predicting low double-digit percentage organic growth - less than 2026's 16.6% uplift - and unchanged adjusted EBIT.

As at 0915 BST, the stock had tumbled 12% at 4,070p, making it the biggest faller in the top flight.

Jefferies, which has an 'underperform' rating on the stock, said: "The focus for this set of results was very much on the organic growth guidance, given the data centre-led tailwinds from the Avo Photonics business.

"Guidance does clear the bar of sell-side consensus, which was pegged at 10.4%. However, it may fall slightly short of where more lofty expectations were.

"That said, we would expect Halma to be guiding conservatively at the start of the year, especially given the global geopolitical uncertainty, and the market may well give them the benefit of the doubt when it comes to walking up consensus through the remainder of the year."

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