2138007FRGLUR9KGBT40 2024-04-01 2025-03-31 iso4217:GBP 2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 2138007FRGLUR9KGBT40 2025-03-31 2138007FRGLUR9KGBT40 2024-03-31 2138007FRGLUR9KGBT40 2024-04-01 2025-03-31 halma:AdjustedMember 2138007FRGLUR9KGBT40 2024-04-01 2025-03-31 halma:AdjustmentsMember 2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 halma:AdjustedMember 2138007FRGLUR9KGBT40 2023-04-01 2024-03-31 halma:AdjustmentsMember iso4217:GBP xbrli:shares 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 2024-04-01 2025-03-31 ifrs-full:IssuedCapitalMember 2138007FRGLUR9KGBT40 2024-04-01 2025-03-31 ifrs-full:SharePremiumMember 2138007FRGLUR9KGBT40 2024-04-01 2025-03-31 ifrs-full:TreasurySharesMember 2138007FRGLUR9KGBT40 2024-04-01 2025-03-31 ifrs-full:CapitalRedemptionReserveMember 2138007FRGLUR9KGBT40 2024-04-01 2025-03-31 ifrs-full:ReserveOfCashFlowHedgesMember 2138007FRGLUR9KGBT40 2024-04-01 2025-03-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2138007FRGLUR9KGBT40 2024-04-01 2025-03-31 ifrs-full:OtherReservesMember 2138007FRGLUR9KGBT40 2024-04-01 2025-03-31 ifrs-full:RetainedEarningsMember 2138007FRGLUR9KGBT40 2024-04-01 2025-03-31 ifrs-full:NoncontrollingInterestsMember 2138007FRGLUR9KGBT40 2025-03-31 ifrs-full:IssuedCapitalMember 2138007FRGLUR9KGBT40 2025-03-31 ifrs-full:SharePremiumMember 2138007FRGLUR9KGBT40 2025-03-31 ifrs-full:TreasurySharesMember 2138007FRGLUR9KGBT40 2025-03-31 ifrs-full:CapitalRedemptionReserveMember 2138007FRGLUR9KGBT40 2025-03-31 ifrs-full:ReserveOfCashFlowHedgesMember 2138007FRGLUR9KGBT40 2025-03-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 2138007FRGLUR9KGBT40 2025-03-31 ifrs-full:OtherReservesMember 2138007FRGLUR9KGBT40 2025-03-31 ifrs-full:RetainedEarningsMember 2138007FRGLUR9KGBT40 2025-03-31 ifrs-full:NoncontrollingInterestsMember 2138007FRGLUR9KGBT40 2023-03-31 ifrs-full:IssuedCapitalMember 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 2023-03-31 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
Halma plc | Annual Report and Accounts 2025
Growing a safer,
cleaner, healthier
future for everyone,
every day.
We are a global group
of life-saving technology
companies. Our companies
provide innovative solutions
to many of the key problems
facing the world today.
Sustainability Review
Comprehensive review of sustainability-related
progress and results at Halma, including detailed
examples of sustainability initiatives in action.
ESG Data Supplement
Quantitative environmental, people and other
ESG-related metrics (including SASB reporting).
ESG Data Basis of Preparation
Calculation and reporting methodologies
for all environmental data.
Independent Verification Statement
Independent limited verification of Halma’s
Scope 1 and Scope 2 reported emissions.
Our verification statement will be published in the
second half of2025 and available on www.halma.com
Our reporting suite
This report forms part of our 2025 reporting suite.
To learn more about our reports, visit our website:
www.halma.com/sustainability
ESG Data
Supplement
Halma plc
|
Sustainability Reporting Suite 2025
ESG Data Basis
of Preparation
Halma plc
|
Sustainability Reporting Suite 2025
Sustainability
Review
Halma plc
|
Sustainability Reporting Suite 2025
Front cover: Hong-Nga Nguyen, Manufacturing Technician, MST
Strategic Report
02 Financial highlights
03 Our purpose in action
04 Halma at a glance
06 Chair’s statement
08 Group Chief Executive’s review
12 Chief Financial Officer’s review
16 Talent & Culture review
19 Our Sustainable Growth Model
20 Our purpose
21 Our DNA
22 Our markets
23 Our growth strategy
24 Our business model
26 Our investment proposition
27 Key performance indicators
32 Financial review
36 Business review
48 Our stakeholders
54 Sustainability
64 Non-financial & sustainability information statement
68 Risk management and principal risks
79 TCFD statement
92 Viability statement
Governance Report
94 Governance at a glance
96 Board of Directors
98 Executive Board
100 How we are governed
103 Board activities
105 Section 172 statement and decision-making
107 Board oversight of our culture
109 Board engagement with our employees
110 Nomination Committee report
116 Audit Committee report
123 Remuneration Committee report
128 Remuneration at a glance
131 Annual Remuneration Report
143 Directors’ Remuneration Policy
147 Directors’ report
151 Statement of Directors’ responsibilities
Financial Statements
153 Independent Auditors’ report
162 Consolidated Income Statement
163 Consolidated Statement of Comprehensive
IncomeandExpenditure
164 Consolidated Balance Sheet
165 Consolidated Statement of Changes in Equity
166 Consolidated Cash Flow Statement
167 Accounting Policies
177 Notes to the Accounts
225 Company Balance Sheet
226 Company Statement of Changes in Equity
227 Notes to the Company Accounts
242 Summary 2016 to 2025
Other Information
244 Shareholder Information
Contents
Transforming airport operations
BEA’s sensor technology is helping to improve the safety
and efficiency of Zurich Airport.
Helping people walk
again withoutpain
IZI Medical’s devices enable surgeons to conduct
minimally-invasive surgery, improving patient outcomes.
Enabling sustainable
coastalcommunities
Deep Trekker’s remotely operated vehicles are helping
advance scientific research for coastal communities.
pg37
pg45
pg41
Halma plc | Annual Report and Accounts 2025 1
Governance Report Financial Statements Other InformationStrategic Report
Financial highlights
We delivered a strong financial performance,
withrecord revenue andprofit and increased returns.
Throughout this Strategic Report, references to profit, unless otherwise qualified, refer to Adjusted
1
Profit before interest and taxation (EBIT), as management’s preferred measure of profitability.
See note 3 to the Accounts for alternative performance measures
1 See note 3 to the Accounts for alternative performance measures and reconciliations to statutory measures.
Revenue
+11%
£2,248m
Adjusted
1
EBIT
+15%
£486m
808
962
1,076
1,211
1,338
1,318
1,525
1,853
2,034
2,248
2025202420232022202120202019201820172016
173
203
223
256
279
288
325
378
424
486
2025202420232022202120202019201820172016
Dividend per share
paidandproposed
+7%
23.12p
Adjusted
1
EBIT margin
+80 basis points
21.6%
12.81
13.71
14.68
15.71
16.50
17.65
18.88
20.20
21.61
23.12
2025202420232022202120202019201820172016
21.4
21.1
20.8
21.1
20.9
21.9
21.3
20.4
20.8
21.6
2025202420232022202120202019201820172016
Statutory Profit before
Interest and Taxation
+12%
£411m
Return on Total Invested Capital
1
+60 basis points
15.0%
143
167
182
217
236
263
313
308
368
411
2025202420232022202120202019201820172016
15.6
15.3
15.2
16.1
15.3
14.4
14.6
14.8
14.4
15.0
2025202420232022202120202019201820172016
2 Halma plc | Annual Report and Accounts 2025
Our purpose in action
Please see www.halma.com for more information about our companies’ impact and pages54 to 63 for information on how we protect our environment
andsupport our people. The figures on this pageare indicative examples and approximate estimates, based on a number of assumptions about usage
ofourproducts. Seewww.halma.com for more information.
Our purpose drives everything we do
and delivers a positive impact on people
and planet.
Monitoring health
Number of diagnostics products supplied
eachyearfor cancer, eye health, blood pressure
andvitalsigns monitoring.
>50 million
Protecting lives
Number of people protected every day
byourgassensor products.
>300,000
Supporting the energy transition
Number of wind turbines protected by supplying
over33,000 fire suppression systems.
>17,000
Making buildings and assets safer
Aggregate area of buildings and critical assets
protected by our fire detection products.
>6,000km
2
Supporting mothers and babies
Number of births monitored per year, helping
caregivers identify and manage trends that could
bedangerous to mother and baby during childbirth.
>700,000
Conserving water
Kilometres of water pipelines monitored
byourproducts.
>110,000km
Sectors
Safety
Environmental & Analysis
Healthcare
Halma plc | Annual Report and Accounts 2025 3
Governance Report Financial Statements Other InformationStrategic Report
Halma at a glance
Our companies are grouped into three
sectors: Safety, Environmental & Analysis
and Healthcare. They have customers
inmore than 100 countries and make
theworld safer, cleaner and healthier
formillions of people every day.
Revenue by sector
£2,248m
Total
£777m
Environmental & Analysis
35% of revenue
£902m
Safety
40% of revenue
£570m
Healthcare
25% of revenue
Revenue by geography
06
05
04
03
02
01
01. USA 46%
£1,039m
04. Asia Pacific 14%
£304m
02. Mainland Europe 19%
£431m
05. Africa, Near and Middle East 4%
£80m
03. UK 14%
£316m
06. Other countries 3%
£78m
Read where we operate on www.halma.com
Percentages are % of Group revenue.
Sector revenue includes inter-segmental sales.
4 Halma plc | Annual Report and Accounts 2025
Safety
Protecting people, assets and
infrastructure in commercial,
industrial and public spaces.
Reducing safety risks in hazardous
situations, increasing efficiency
and helping to create a more
sustainable future.
Read more: 36–39
Environmental
& Analysis
Monitoring and protecting
theenvironment, and ensuring
thequality and availability of
life‑critical resources. Creating
solutions used in materials analysis
and optoelectronic applications.
Read more: 40–43
Healthcare
Improving the care delivered by
healthcare providers, and enhancing
the quality of patients’ lives, through
contributing to the discovery and
development of new cures, the
diagnosis and treatment of patient
conditions, and data analysis.
Read more: 44–47
Halma plc | Annual Report and Accounts 2025 5
Governance Report Financial Statements Other InformationStrategic Report
Chair’s statement
Sustainable
growth and
positive impact
Dame Louise Makin
Chair
Halma’s purpose remains
atthe heart of everything
wedo. It guides every decision
made by the Board and is
thecommon thread that
binds our diverse operating
companies as a group.
I am pleased to report that Halma has delivered another
successful year. This has been achieved in a business
environment which remains volatile and uncertain.
Thestrength of our performance has allowed usto
continue to invest, organically and through acquisition,
tosupport sustainable and compounding growth,
returns and positive impact in the years ahead.
People are our greatest asset, and these results are a
testament to the entrepreneurial spirit of our leadership
and the dedication of our colleagues worldwide. On
behalf of the Board, I extend my thanks to everyone for
their personal contributions in delivering these results.
Halma’s purpose of growing a safer, cleaner, healthier
future for everyone, every day remains at the heart of
everything we do. It guides every decision made by the
Board and is the common thread that binds our diverse
operating companies as a group. Through purpose-driven
growth and innovation, we will continue to provide
solutions that address some of the biggest challenges
facing the world today.
Board changes
This year, we had a notable change in our executive
management team with the appointment of a new
Chief Financial Officer. In January 2025, Steve Gunning
announced his intention to retire from Halma, stepping
down as Chief Financial Officer on 31 March 2025. In line
with the Nomination Committee’s succession plans, we
were delighted to announce the appointment of Carole
Cran as Steve’s successor, effective from 1 April 2025.
Carole had been a non-executive Director at Halma
fornine years and served as Audit Committee Chair
formost of that period. Her deep understanding of our
business model and strategy has ensured a smooth and
seamless transition. On behalf of the Board, I would like
to thank Steve for his contribution to Halma during his
tenure, and for his support with the handover process,
and congratulate Carole on her executive appointment.
As part of the Committee’s routine succession planning,
we began the search for two new non-executive Directors
in the final quarter of 2024. In March 2025, wewere
pleased to announce the appointment of Barbara
Thoralfsson as a non-executive Director, effective 16 June
2025. Barbara brings a wealth of international experience
from public and private companies, across various
sectors. In May 2025, we announced the appointment
ofHudson La Force as a non-executive Director,
6 Halma plc | Annual Report and Accounts 2025
How governance has
supportedour growth
Information on key areas
ofgovernance can befound
inthesesections.
Sustainable Growth Model
Learn more on pages 19–26
Talent & Culture review
Learn more on pages 16–18
Board activities
Learn more on pages 103–104
Board oversight of our culture
Learn more on pages 107–108
Nomination Committee Report
Learn more on pages 110–115
effective2 June 2025. Hudson has broad industrial and
international experience which will complement the
existing skills and experience that we have on the Board.
I look forward to the contribution that Barbara and
Hudson will bring in their roles.
Corporate governance
Our Board recognises the value of good governance in
enhancing its effectiveness, and of our Directors staying
well informed about the evolving governance landscape.
Over the past year, the Board has considered the impact
of the UK Corporate Governance Code 2024, which
takeseffect for Halma from1 April 2025. Work to define
and map the Group’s material controls and assurance
processes is ongoing. The Audit Committee, on behalf
ofthe Board, will reviewthe output and make
recommendations for any strengthening of controls
oradditional assurance desired, ahead of the revised
Code provision 29 coming into force for our financial year
commencing on 1 April 2026. TheBoard will continue
tomonitor developments aroundthe government’s
proposed audit and corporate governance reforms.
Stakeholder engagement
In the first quarter of 2025, I held meetings with a
number of our largest shareholders. Stewardship teams
and portfolio managers representing around one-fifth
ofthe Company’s share capital engaged with me.
Topicsdiscussed included executive and non-executive
director succession, talent and culture within our
operating companies, and there were broader
discussions on remuneration and sustainability matters.
These conversations continue to be valuable to me
andthe Board, ensuring we have the opportunity
toshare information about the Company and,
importantly, hearthe views of our shareholders and
confirm thattheydo not have any material concerns.
Additionally,ourinstitutional investors are in regular
dialogue with members of our executive and investor
relations team throughout the year, including through
meetings held with our Group Chief Executive and Chief
Financial Officer immediately after our Full Year and
HalfYear results.
Employee engagement remains a focus area for theBoard.
Over the past year, the non-executive Directors increased
their operating company visits andfocus-group
engagement with the wider workforce. They also
attended and participated in company events, including
panel discussions and networking at our Accelerate
Halma conference, held in the US. During my site visits,
itwas most pleasing to see Halma’s Organisational
andCultural Genes embedded within the businesses,
and demonstrated through the passionate talent who
embrace our core values.
Looking ahead with confidence
Despite the increasingly unpredictable environment, the
spirit and determination of our people to succeed is clear
and positions us well to face into any challenges ahead.
Our success is built on the strength of our talent and our
purpose-led strategy to acquire and grow businesses in
attractive niche markets. Our focus on capital allocation
supports our continued delivery of strong growth, returns
and positive impact in varied market conditions. These
foundations give me confidence that we will continue to
evolve and adapt to sustain our success over the long term.
Dame Louise Makin
Chair
Halma plc | Annual Report and Accounts 2025 7
Governance Report Financial Statements Other InformationStrategic Report
Group Chief Executive’s review
Delivering
sustainable
growth and
returns
Marc Ronchetti
Group Chief Executive
Our performance reflects
thededication of our people
and the strength of our
Sustainable Growth Model.
Record profit for the 22nd consecutive year
I am pleased to report another year of record revenue
and profit, marking Halma’s 22nd consecutive year
ofrecord profit. Achieving such a strong performance
amidst varied market conditions and a challenging
economic and geopolitical backdrop is a testament
tothe fundamental strengths of our Sustainable Growth
Model. These include the clarity of our purpose and
strategy, the breadth of our portfolio, the diversity,
agility and entrepreneurialism of our teams, and the
hardwork and dedication of our people.
I would like to thank everyone at Halma for their
contributions to our success and their commitment to
growing a safer, cleaner, healthier future for everyone,
every day.
22nd
Consecutive year
of record profit
Driven by a common purpose
While our companies operate in a wide variety of
individual market niches, our purpose unites them,
andmotivates our people to develop innovative
solutionswhich address our customers’ pressing safety,
environmental, and healthcare challenges. Leading a
group whose dedicated people share a strong sense
ofpurpose is a huge privilege and when I visit our
companies, I am inspired by the passion and focus
eachperson brings to their work.
Our purpose is both a significant motivator for our
people and a strategic business driver at the core of our
Sustainable Growth Model (see page 19). It means that
wefocus on markets which offer opportunities for Halma
to grow for decades to come. Growth in our markets is
underpinned by structural long-term drivers, such as the
increasing need to ensure the safety of people and assets
in an ever more crowded and fast-moving world, the
growing necessity to protect life-critical natural resources
as they come under increased pressure, and the rising
demand for better healthcare as populations age
anddemand for better patient outcomes continues
toincrease.
A proven Sustainable Growth Model
The strengths of our Sustainable Growth Model have
been proven over many years. It gives each of our
individual companies the autonomy to be entrepreneurial
in their markets, and to act with agility to ensure that
they can maximise opportunities in existing and new,
8 Halma plc | Annual Report and Accounts 2025
adjacent market areas. It also allows them to benefit
from being part of a FTSE 100 company with global
operations, and from the network of Halma companies.
These elements are important assets forour companies
in more challenging markets, enabling them to react
rapidly to mitigate the effects of adverse geopolitical,
economic or regulatory changes, and to benefit from
collaboration with other Halma companies in finding
solutions to specific issues.
For the Group as a whole, we benefit from the diversity
of our portfolio, and the low correlation between the
growth drivers in our individual companies’ markets.
Thisenhances the resilience of our Group performance,
with variations of performance in specific markets often
offset elsewhere in the portfolio, and this in turn allows
us to invest for the longer term, through market cycles.
Our Sustainable Growth Model is therefore designed
toenable the delivery of both strong and resilient
performance in the near term, and sustainable,
compounding growth and returns over the longer term.
We focus on acquiring high-quality companies in global
niche markets that are aligned with our purpose, and
then ensure we have talented leaders to run them. These
are the critical inputs to Halma’s success, and you can
read more about them, and the common characteristics
we look for in our companies and leaders, on page 17.
We have seen the benefits of this disciplined approach
this year and over many years. The quality of the talent
and the companies in our portfolio generates strong
organic growth and high cash flow returns on
investment, allowing us to continually invest in new
organic growth opportunities, as well as high-quality
acquisitions which then further contribute to our future
organic growth. This creates a positive compounding
effect, delivering long-term sustainable growth and
returns. This has meant our total shareholder return
hasbeen well above returns delivered by the FTSE 100
and NASDAQ Index over the past 20 years.
A strong financial performance
in varied market conditions
We delivered a strong financial performance this year.
Revenue grew by 11% to £2,248m, Adjusted
1
EBIT
increased by 15% to £486m, and Adjusted
1
earnings per
share rose by 14%, well above our 10% target, to 94.23p.
It was pleasing tosee this supported by good levels of
organic
1
revenue and organic
1
Adjusted
1
EBIT growth, of
9% and 13% respectively. This was well ahead of our 5%
organic
1
growth targets and above our average growth
rates for both metrics over the preceding decade of 7%
and 6% respectively, and reflected our companies’ ability
to respond to the substantial opportunities in their
markets. Statutory profit before interest and taxation
increased by 12% to£411m.
12%
10 year revenue
compoundannual growth
The strength of our performance was supported by our
companies’ ability to respond with agility to the varied
opportunities and challenges in their end markets, and
by the diversity of our portfolio. We saw strong growth
inthe Safety Sector, broadly spread across allsubsectors,
and in the Environmental & Analysis Sector. The latter
included exceptional performance fromphotonics within
the Optical Analysis subsector whose solutions support
the ongoing development of a large “hyperscaler”
technology customer’s data centre capabilities (for
further detail please see the Environmental & Analysis
sector review). In the Healthcare Sector, there was a
substantial improvement in performance inthe second
half, following a weaker first half which reflected a
subdued background in its end markets.
Our continued focus on the delivery of high and
compounding returns and optimising cash flow returns
on investment resulted in a strong performance against
a number of our KPIs. Our Adjusted
1
EBIT margin was
21.6%, up 80 basis points, ahead of our expectations
atthe beginning of the year and above the mid point
ofour KPI target range of 19%-23%, reflecting favourable
product and portfolio mix and good operational delivery
across all three sectors. Return on Total Invested Capital
1
increased by 60 basis points to 15.0%, which is both well
above our estimated weighted average cost of capital
of9.8% and towards the upper end of ourKPI target
range of 12%-17%. Cash conversion for the year was
substantially ahead of our 90% KPI at 112%.
12%
10 year profit
compound annual growth
Marc at MK Test Systems on one of his regular company visits.
Halma plc | Annual Report and Accounts 2025 9
Governance Report Financial Statements Other InformationStrategic Report
This performance continues to support our investment
ingrowth, both organically and through acquisitions,
andour progressive dividend policy. The Board is
recommending a 7% increase in the final dividend to
14.12p per share, resulting in a total dividend for the year
of23.12p, marking our 46th consecutive year of dividend
per share growth of 5% or more.
Strategic investment to support future growth
Investing in organic growth
Supporting our companies’ investment in their organic
growth is central to our Sustainable Growth Model
andunderlines the future growth opportunities each
company sees in its end markets. Our companies are
high-performing, high-quality companies when we
acquire them. Our focus is then to support and invest in
them to sustain their growth, empowering leaders who
have a deep understanding of their markets and their
customers to seize new growth opportunities. Supporting
our companies’ investment in their organic growth
opportunities is therefore our top capital allocation
priority, and I am pleased to report that investment
ininnovation and new product development grew
intheyear, with R&D expenditure increasing by £5m
to£108m, representing 4.8% of revenue.
Investing in acquisitions to broaden
ourgrowthopportunities
One of the benefits of our model is that we can continue
to invest across our sectors through varied end market
conditions. This year we made seven acquisitions across
all sectors for a total maximum consideration of £157m.
This relatively modest amount compared to recent
yearsreflected our continued discipline in selecting only
companies that meet our stringent acquisition criteria,
and the timing of individual transactions. Overthe last
five years, we have achieved an average contribution to
profit growth from acquisitions (priortofinancing costs)
of 5.9%, ahead of our 5% KPI. Our healthy pipeline of
potential acquisitions and the strength of our balance
sheet support our confidence that acquisitions will
continue to make amaterial contribution to growth
inthe future.
Many of our companies are now of a size and capability
that they are increasingly looking for their own
acquisitions. It’s great to see that five of our companies
have completed bolt-on acquisitions this year, expanding
their capabilities and accessing new technologies and
markets to accelerate their growth and deliver their
individual longer-term growth strategies.
We actively manage our portfolio to ensure it remains
aligned to our Sustainable Growth Model. As a result,
wemade one small disposal in the first half of the year
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 our talent and culture
Talent is one of the critical inputs to our model and vital
for our continued success. People are at the heart of our
growth strategy, and we are focused on ensuring that we
cultivate leaders who can thrive within our decentralised
model and build high-performing businesses. We also
believe building diverse and inclusive businesses is the right
thing to do and the source of our strength as agroup.
I was pleased to see that our focus on developing
leadershas resulted in eight people being promoted
ontocompany boards this year, including two Managing
Directors who were previously part of our graduate
scheme, the Catalyst programme. We also welcomed
two new Sector CFOs forSafety and Healthcare, the
latter being an internal promotion from a company
board role. We also supported over 100 leaders through
our development programmes, many of whom will
goonto become future Halma leaders.
In October, we held our biennial Accelerate conference,
attended by over 300 company board members.
Thisevent enables leaders to connect with their peers,
build new relationships, and share solutions to common
business challenges. Although our companies work in
different market niches, sectors and countries, they often
share similar challenges, and it was great to see the
energy and excitement throughout the event as our
leaders shared real-life examples and learned from
eachother.
During the year, we were also pleased to launch the
Impact the Future Fund, a new initiative to enable our
companies to support causes in their local communities.
You can find out more about this in the case study
onpage 60.
Group Chief Executive’s review continued
Accelerate enabled leaders to connect and share solutions to common problems.
10 Halma plc | Annual Report and Accounts 2025
Sustainability as a growth driver
Sustainability is an integral part of our Sustainable
Growth Model and is embedded in our companies’
growth strategies. Our focus on end markets
underpinned by long-term growth drivers of safer
infrastructure, a cleaner environment, and a healthier
future for all means that we are already making a
positive contribution towards helping our customers
tackle several global sustainability challenges, including
climate change. We continue to encourage our
companies to “do more good” by broadening the positive
benefits they provide and seeking new opportunities
insustainability-related end markets and products.
In addition to developing new sustainability-related
opportunities, we aim to “do less harm” – by supporting
our people and protecting our environment.
Ourcompanies set their own sustainability goals that
aremost relevant and stretching for them, while
contributing towards the Group’s overall focus areas of
reducing emissions, sustainable design and supporting
our people. I’m excited to see the innovative and diverse
approaches our companies are taking, examples of
which can be found in our Environment & People Reports
on pages 54 to 63.
We remain committed to our climate change objectives.
We believe this is not only the right thing to do, but we
know that our stakeholders want and expect us to take
action. This year, we’ve exceeded our 2025 target to
achieve 85% renewable electricity globally and continue
to make good progress towards our 2040 Scope 1 & 2
NetZero goal. We’ve also introduced a new interim
science-aligned Scope 3 target for 2035, complementing
our existing 2050 Scope 3 Net Zero ambition. More
information on our climate-related targets and progress
is available on pages 80 to 91 of this report.
Executive Board changes
I am delighted to welcome Carole Cran as Chief Financial
Officer following Steve Gunning’s retirement from
Halma. Carole brings considerable experience as a
finance leader and a strong understanding of Halma’s
Sustainable Growth Model, having spent nine years as
anon-executive director on our Board. Her passion for
Halma’s purpose, our companies and our people makes
her a great addition to the executive team.
Steve has played a vital role for Halma and for me
personally, enabling me to focus fully on my transition
into the Group Chief Executive role. He has delivered
strategically critical work across the finance function,
setting us up for the next phase of our growth. I would
like to thank him for his partnership and support,
andIwish him all the best for the future.
In September 2024, we appointed Charlene Lim as Group
General Counsel to our Executive Board. Charlene brings
extensive legal and commercial experience. Charlene’s
appointment follows our previous Group General
Counsel, Funmi Adegoke, moving to become Safety
Sector Chief Executive in July 2023.
Summary and outlook
This has been another successful year for Halma,
reflecting the contributions and commitment of everyone
in the Group. We delivered record revenue and profit,
with strong margins and cash generation, and increased
returns on capital. We achieved our 22nd consecutive
year of profit growth, and delivered our 46th consecutive
year ofdividend growth of 5% or more.
46th
Consecutive year of dividend
growth of 5% or more
We have made a positive start to the 2026 financial
year,with a strong order book and order intake ahead
ofrevenue and last year. While the geopolitical and
economic environment remains uncertain, we currently
expect to deliver upper single digit percentage organic
1
constant currency revenue growth in this financial year.
This includes an expected benefit from further very
strong growth in photonics within the Environmental &
Analysis Sector. Adjusted
1
EBIT margin is expected to be
modestly above the middle of our target range of 19-23%.
Achieving such a strong performance amidst varied
market conditions and a challenging economic and
geopolitical backdrop is a testament to the fundamental
strengths of our Sustainable Growth Model. These
include our positive purpose and culture, and a diverse
portfolio of companies, each with strong positions in
their markets and growth underpinned by long-term
drivers. Our business model gives our talented and
dedicated teams the autonomy to respond with agility
tochanges in their markets, and our financial strength
supports continued substantial investments in future
growth opportunities. These strengths support my
confidence that we are 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.
Halma plc | Annual Report and Accounts 2025 11
Governance Report Financial Statements Other InformationStrategic Report
Chief Financial Officer’s review
Good growth
andreturns
deliver strong
cash generation
Carole Cran
Chief Financial Officer
This relentless commitment to our Sustainable Growth
Model has resulted in our total shareholder returns
exceeding those of the NASDAQ Composite Index and
being more than triple those of the FTSE 100 Index over
that same period.
Our sustainable financial model of strong operating
cashgeneration and balance sheet strength enabled
usto continue to invest for long-term growth, through
organic R&D and acquisitions. We expect these growth
drivers, combined with our financial strength, to enable
us tocontinue to deliver compounding growth and high
returns over the longer term as our companies invest
toaddress some of the world’s most fundamental
needsand challenges.
Record revenue and profit
We delivered strong revenue growth of 10.5%, with
revenue for the year to 31 March 2025 of £2,248.1m
(2024:£2,034.1m). This comprised good momentum
onan organic
2
basis, with revenue growth of 9.4%, and
acontribution from acquisitions of 3.1% (2.7% net of
disposals). The appreciation of Sterling mainly against
the US Dollar had anegative currency translation effect
of 1.6%.
We executed wellagainst our
KPIs, delivering good growth
andincreasedreturns.
Strong financial performance
It is my pleasure to introduce my first review as Halma’s
Chief Financial Officer and I am pleased to present
another year of strong financial performance. This further
demonstrates thebenefits ofagility and diversity we
derive from our Sustainable Growth Model. We executed
well against ourkey performance indicators, delivering
good organic growth and increased returns, with strong
operational cash flows for reinvestment.
This performance extends our track record of delivering
long-term compounding growth and strong returns for
our shareholders. Over the past ten years, our disciplined
approach to our business model and capital allocation has
resulted in both revenue and Adjusted
1
EBIT compounding
at 12% annually and maintaining strong margins
andreturns well in excess ofour weighted average cost
of capital, with cash conversion averaging 92% and
leverage in a range of 0.6 to 1.4 times netdebt/EBITDA
2
.
12 Halma plc | Annual Report and Accounts 2025
Adjusted
1
EBIT grew 14.7% to £486.3m (2024: £424.0m).
Adjusted
1
EBIT growth comprised a 12.6% increase in
organic
2
EBIT, a 4.1% contribution fromacquisitions
(4.0%net of disposals), and a negative effect from
currency of 1.9% due to the appreciation of Sterling.
Thisled to 80 basis points of improvement in
theAdjusted
1
EBIT margin to 21.6% (2024: 20.8%).
Adjusted
1
profit before taxation grew by 15.9%
to£459.4m (2024:£396.4m).
Statutory profit before interest and taxation of £411.2m
(2024: £367.9m) was 11.8% higher and Statutory profit
before taxation of £384.3m (2024: £340.3m) was 12.9%
higher. Statutory profit before taxation is calculated after
charging the amortisation and impairment of acquired
intangible assets of £56.9m (2024: £49.5m), a net £2.0m
gain on disposal and impairment of associate (2024:
£0.5m gain), and other acquisition items ofanet £20.2m
(2024: £7.1m).
Further detail on these items is given in note 1
totheAccounts.
Revenue and profit growth in all sectors
All sectors grew revenue on a reported and organic
2
basis. The Safety Sector delivered strong growth, broadly
spread across markets and regions. Strong sales growth,
favourable product mix and good operational cost
control resulted in strong growth in Adjusted
1
profit and
an increased sector profit
3
margin. The Environmental
&Analysis Sector also delivered strong revenue growth,
led by exceptional growth in photonics within Optical
Analysis. Adjusted
1
profit grew strongly with good
operational cost control and favourable portfolio
andproduct mix, including a recovery in spectroscopy
inOptical Analysis, resulting in an increased
marginagainstlast year’s weaker performance.
The Healthcare Sector grew modestly, reflecting a
firsthalf where we experienced a continued subdued
background in the healthcare market, offset bya
significant improvement pointing to signs ofrecovery
across the majority of companies in the second half.
Adjusted
1
profit also grew modestly and good
operational cost control resulted in a robust
marginperformance.
Further information on regional andsector performance
is given in the individual sectorreviews on pages 36 to 47
of this Report, andcommentary on performance by
region is given inthe Financial review, later in this Report.
£2,248.1m
Revenue
+10.5%
Revenue growth
£486.3m
Adjusted
1
EBIT
+14.7%
Adjusted
1
EBIT growth
Revenue bridge (£m) Adjusted
1
EBIT bridge (£m)
2025CurrencyDisposalsAcquisitionsOrganic
2
2024
£2,248m
(1.6)%
(0.4)%
+3.1%
+9.4%
£2,034m
2025CurrencyDisposalsAcquisitionsOrganic
2
2024
£486.3m
(1.9)%
(0.1)%
+4.1%
+12.6%
£424m
Halma plc | Annual Report and Accounts 2025 13
Governance Report Financial Statements Other InformationStrategic Report
Substantial investment to drive future growth
All sectors continue to innovate and invest in new
products, reflecting our companies’ confidence in the
future long-term growth prospects of their respective
markets. R&Dexpenditure as a percentage of revenue
remained well above our KPI target of 4% at 4.8%
(2024:5.1%; restated), increasing at a slightly slower
ratethanrevenue to £108.4m (2024: £103.8m; restated),
principally as result of the exceptional revenue growth in
photonics, which has relatively lower R&D requirements.
R&D as a percentage of revenue in other companies
remained at a similar level tothe prior year.
We invested £157m (maximum total consideration)
inseven new businesses in FY25. These were two new
businesses and five bolt-ons for our existing companies,
spread across the sectors and well distributed by
geography. Thisadds to the eight acquisitions completed
in FY24, which have performed well in their first year of
trading under Halma’s ownership. We also made one
small disposal in the Environmental & Analysis Sector.
Details ofthe acquisitions made are given in the sector
reviews on pages 36 to 47 of the Report and details
ofthe acquisitions made in the year aregiven in note 25
to the Accounts.
We are also continuing to invest group-wide in our
infrastructure, both in our facilities as well as in our
systems and data and analytics capabilities.
Chief Financial Officer’s review continued
Revenue and profit
3
change by sector
2025 2024
Change
£m
%
growth
% organic
growth
2
£m
% of
total £m
% of
total
Safety 902.0 40 823.8 41 78.2 9.5 7.7
Environmental & Analysis 776.6 35 658.4 32 118.2 18.0 19.0
Healthcare 570.4 25 552.9 27 17.5 3.2 0.3
Inter segment sales (0.9) (1.0) 0.1
Revenue 2,248.1 100 2,034.1 100 214.0 10.5 9.4
2025 2024
Change
£m
%
growth
% organic
growth
2
£m
% of
total £m
% of
total
Safety 217.9 41 191.6 41 26.3 13.7 11.6
Environmental & Analysis 185.5 35 147.9 32 37.6 25.4 25.5
Healthcare 130.6 24 125.6 27 5.0 4.0 0.3
Sector profit
3
534.0 100 465.1 100 68.9 14.8 13.0
Central administration costs (47.7) (41.1) (6.6) (16.2)
Adjusted
1
earnings before interest
andtaxation (EBIT) 486.3 424.0 62.3 14.7 12.6
Statutory profit before interest
andtaxation 411.2 367.9 43.3 11.8
Net finance expense (26.9) (27.6) 0.7 2.5
Adjusted
1
profit before taxation 459.4 396.4 63.0 15.9 16.3
Statutory profit before taxation 384.3 340.3 44.0 12.9
Adjusted
1
EBIT margin 21.6% 20.8%
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.
14 Halma plc | Annual Report and Accounts 2025
Increased returns, cash generation and strong
financial position
Strong returns on investment 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.
This is demonstrated through our strong cash conversion
at 112% (2024: 103%), which was ahead of our KPI target
of 90%. This reflected the strength of our growth
andmargins, combined with good working capital
andcashmanagement. Our good working capital
performance this year and last has resulted in inventory
returning to levels more typical of years pre-COVID
pandemic. Asa result, we expect cash conversion to be
more in line with our KPI target of 90% going forward.
We maintained a high level of Return on Total Invested
Capital (ROTIC)
2
, which increased to 15.0% from 14.4%
inthe prior year. The increase principally reflects strong
constant currency profit growth. Our ROTIC
2
remains well
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 9.8% (2024: 9.7%).
Our financial position remains strong, with gearing
(netdebt to EBITDA) improving from 1.35 times at the
prior year end to 0.97 times at the year end. Net debt
(onan IFRS 16 basis which includes lease commitments)
decreased by £117.4m to £535.8m (2024: £653.2m).
We have substantial available liquidity with committed
facilities in excess of £1.25bn. Our balance sheet strength
and available liquidity give us the flexibility and firepower
to support our healthy pipeline of potential acquisitions.
Further detail on cash generation and our financial position
is given in our Financial review on pages 32 to 35.
Cash conversion and net debt
2025 2024
Cash conversion
2
112% 103%
Closing net debt
2
£(535.8) £(653.2)m
Net debt
2
to EBITDA
2
0.97x 1.35x
Summary
We have delivered a strong financial performance
thisyear, executing well against our key performance
indicators. We have driven double-digit revenue and profit
growth, underpinned by good momentum in organic
growth, and delivering strong cash generation. We have
maintained our discipline in the investments we have
made to support our future growthwhile increasing our
margins and returns. Thecombination of these financial
indicators is important in ensuring we continue driving
compounding growth and strong returns over the
medium tolong term.
As I embark on my first year as Chief Financial Officer,
Iam excited to build on our strong foundation and lead
the Halma finance team in supporting the business to
deliver a future of continued sustainable quality growth,
high returns and success. We will achieve this through
ensuring we have the best talent, providing actionable
analysis and insights to the wider Group, maintaining
strong controls, supporting capital allocation and M&A
activity, and leveraging the use of new technology,
whilechallenging ourselves to continuously improve.
I would like to thank all my colleagues in Finance for their
hard work, which has contributed to another record year
for Halma.
Carole Cran
Chief Financial Officer
Capital allocation and funding priorities
Halma aims to deliver high returns on investment
well in excess of our cost of capital. We invest to
deliver future earnings growth and strong returns
which enable us to achieve this aim on a sustainable
basis, and our capital allocation priorities remain
asfollows:
1. Investment for organic growth: Organic growth
is our first priority and is driven by investment
inour existing businesses, including through
development of our existing products, bringing
new products to market, international expansion,
the development of our people and investing in
our facilities and infrastructure.
2. 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.
3. Regular and increasing returns to shareholders:
Wehave maintained a progressive dividend policy
forover 45 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 2025 15
Governance Report Financial Statements Other InformationStrategic Report
Talent & Culture review
Agility and
resilience are
in our DNA
Jennifer Ward
Chief Talent, Culture and Communications Executive
Agility and resilience are in our DNA,
driving sustainable growth and
empowering our leaders to navigate
challenges and seize opportunities.
Halma operates a very different business structure to
many other large industrial companies. The decisions
that we make around structure and people are based
onthe core belief that agility drives resilience. The agility
of our companies and leaders to sense, consider and
react effectively to changing dynamics within their
markets and technologies is what enables us to provide
consistent, long-term sustainable growth through
dynamic and evolving market conditions. We have
created a scalable business model to protect the
individual companies’ ability to react with agility,
thusproviding resilience. There are minimal dependencies
on other parts of the organisation, which enable our
leaders to make swift decisions and adjust to retain
theircompetitive position in their niche markets.
The role of those of us at the Group level istherefore to
ensure that we select the right companies for long-term
growth, and ensure that they have leaders who are
capable and empowered to continually learn and act
with agility to the opportunities that are presented
within their markets. These leaders must have the
characteristics and abilities to drive growth and build
high-performing inclusive cultures.
These qualities give us agility and resilience, and they
arebaked into our model and run through our DNA
atalllevels of our organisation. We have distilled the
characteristics that we look for in our leaders and in
ourcompanies in the diagram on page 17.
Demonstrating our agility and resilience
During the year our leaders demonstrated their agility
bynavigating ongoing economic pressures and
geopolitical crises, adapting to rapid technological
changes, managing cybersecurity threats and balancing
shifting worker dynamics. Through these challenges,
theyremained focused on motivating their teams and
fostering inclusive workplaces which have allowed us to
continue to maintain high engagement in our workforce.
Learn more: 58
Halma’s resilience is significantly bolstered by diverse and
high-performing teams with entrepreneurial mindsets.
Resilience at Halma is not just about weathering
challenges; it is about anticipating them, adjusting
quickly, and emerging stronger. To do that effectively,
werely on diverse viewpoints on every team and seek
input from all directions to ensure we don’t miss a thing.
This interplay between resilience and agile leadership
isvital to our thriving culture. Resilience enables the
organisation to navigate challenges and swiftly recover
from setbacks, while agile leadership ensures that our
teams remain adaptable and responsive to change.
This dynamic combination helps us to address the
challenges and opportunities that lie ahead.
Further detail on our people and culture initiatives
and progress against key metrics: 58-61
16 Halma plc | Annual Report and Accounts 2025
Equipping leaders
Recognising the importance of agility, we equip our
leaders with tools to identify and respond to workforce
shifts. In 2024, we invested in a unified people platform,
which has unlocked many advantages including
enhancing visibility of open roles throughout the
organisation, supporting career mobility, and helping
leaders plan for future talent needs.
This year we’re using a new employee listening
platformto measure employee sentiment through our
annual global engagement survey. It will also enable
leaders to gather ongoing real-time employee feedback
throughout an employee’s journey. This means leaders
can build an accurate picture of the employee experience
and get actionable insights to drive a culture of
continuous improvement.
Nurturing talent
To help leaders keep up with the fast-paced challenges
facing their organisations, we have expanded our
leadership development offerings. In 2025, we introduced
three new programmes and in the past year we coached
over100 leaders. Additionally, we have a growing number
of mentors dedicating time to develop people.
This focus on nurturing talent resulted in eight people
being promoted onto company boards this year. This
included twoManaging Directors who started their
career with us as part of our graduate scheme, the
Catalyst programme. In the year, we were also pleased
to appoint a new Healthcare Sector CFO who was an
internal promotion from a company board role.
What we look for in our companies and in our leaders
Anatomy
of a Halma
company
Anatomy
of a Halma
leader
Each Halma company shares the
following common characteristics:
– Aligned with
our purpose
– Underpinned by one
of our long-term
growth drivers
– Operates in a global
niche with high
barriers to entry
– Knows its
market intimately
– Close to its customers
– High margin products,
not commoditised
– Low capital intensity
– Cash generative
– Ambition and
capability to grow
– Strong cultural fit
Each leader shares the following
common characteristics:
– Purpose driven
– High intellect
– High EQ and ability
tobuild followership
– Agile learner
– Holds self and others
accountable
– Entrepreneurial
– Sound judgement
– Diverse thinker
– Curious, not content
withstatus quo
– Builds trust and
developsnetworks
– Highambition and
lowego
– Just be a good person
Halma plc | Annual Report and Accounts 2025 17
Governance Report Financial Statements Other InformationStrategic Report
A group of Vice Presidents and Directors convened for the
High Performance Leadership Programme inMay 2025.
Enabling collaboration and connection
Collaboration, networking, and peer learning are integral
to supporting our leaders’ agility and enabling us all
togo faster together. We host a biennial Accelerate
leadership conference, which convenes all Managing
Directors of Halma companies and their boards, along
with the Executive Board, plc Board, sector boards, and
senior leaders within our Group. This year’s conference
was designed by a group of Managing Directors,
featuring numerous sessions led by talented people
across our businesses, reinforcing the importance we
place on learning from each other.
Our six functional networks are another way to
strengthen the links between our leaders and exchange
best practices. Each is led by a Divisional Chief Executive
or Halma leader and meets regularly to discuss topics
that matter to them and their development. In April
2024, Operations leaders convened for a two-day
event in the US joined by external subject matter
experts. Additionally, the inaugural Digital Solutions
Summit brought together almost 40 Technical Directors
from across the Group in both the US and UK. In 2025,
the Marketing Network is expanding to include all
companies, fostering an inclusive and collaborative
community for marketeers. One of the resulting focus
areas willbe supporting marketing talent through
careerdevelopment initiatives, helping us nurture
futureleaders.
Building diverse and inclusive businesses
Building diverse and inclusive businesses is an active
pursuit at Halma. It is fundamental to achieving
ourpurpose and we also know that Diversity, Equity
&Inclusion (DEI) significantly contributes to
organisationalagility and resilience. Bringing together
awider range of perspectives, skills and experiences
enables us to spot innovative solutions more quickly,
make better decisions and create a more adaptable
workforce capable of navigating challenges more
effectively. We have continued to benefit from our DEI
commitment across all levels ofthe organisation and
ourGroup results have reflected the increasing diversity
of our portfolio and people.
We are pleased to have made further progress towards
achieving 40% to 60% gender balance on our company
boards. Female representation rose from 31% to 33%
thisyear. Since 2020, this metric has increased by 14
percentage points, reflecting our commitment to diverse
sourcing, inclusive hiring, and linking progress to senior
leaders’ bonuses. Women represent 26% of our Managing
Directors and 35% of those holding Vice President
positions. Further illustrating our efforts on gender
diversity, as at 31 March 2025, women represented 50%
of the plc Board, 60% of the Executive Board and 33%
ofDivisional Chief Executives. Overall, women make up
48% of our senior leaders.
We are proud of our progress in building a more diverse
workforce. However, we understand that true inclusion
isessential for fostering a positive culture. I am pleased
that our businesses continue to focus on creating an
environment where everyone feels valued, respected,
and their contributions are acknowledged.
Learn more about our diversity, equity and inclusion efforts: 58-61
Agile leadership for exceptional times
In today’s volatile environment, the need for agile
leadership, both within the organisation and in the
broader business environment, has never been more
critical. By empowering our leaders with the tools and
support they need, cultivating a culture of collaboration,
and promoting diversity, equity and inclusion, we are
well-equipped to strengthen our resilience and continue
to thrive in these exceptional times.
Jennifer Ward
Chief Talent, Culture and Communications Executive
Talent & Culture review continued
18 Halma plc | Annual Report and Accounts 2025
Our Sustainable Growth Model
We deliver sustainable growth,
consistently highreturns and
positive impact.
Each of the elements of our
Sustainable Growth Model creates 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
01
05
06
02
04
03
Our purpose
Read more: 20
Our DNA
Read more: 21
Our business model
Read more: 24
Our investment
proposition
Read more: 26
Our growth strategy
Read more: 23
Our markets
Read more: 22
Governance Report Financial Statements Other InformationStrategic Report
Halma plc | Annual Report and Accounts 2025 19
Strategic Report
Our Sustainable Growth Model continued
Our purpose
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.
01
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.
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.
Find out more information on our website www.halma.com
Our purpose drives our business in three ways:
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.
Read more about our markets: 22
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.
Read more about our Talent & Culture: 16
20 Halma plc | Annual Report and Accounts 2025
Our DNA
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.
02
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 2025 21
Governance Report Financial Statements Other InformationStrategic Report
Our Sustainable Growth Model continued
Our markets
We operate in three broad market areas, safety, the environment
and healthcare, which are defined by ourpurpose.
03
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.
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.
A growing need to
improvethe safety and
efficiency of vital industry
and infrastructure
A growing need 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.
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 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.
Global efforts to address
climate change, waste
and pollution
As these impacts become
more severe and as populations
are increasingly affected.
68%
The proportion of the global
population that will live in
urbanareas by 2050
1
2.1bn
The number of people who
will be aged 60 years and
older by 2050
2
2.4bn
The number of people
who live inwater‑stressed
countries withageing
water networks
3
9/10
The number of people who
breathe unhealthy air, causing
nearly seven million premature
deaths every year
4
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 36 to 47 of
thisreport.
See Safety Sector review: 36‑39
See Environmental & Analysis Sector review: 40‑43
See Healthcare Sector review: 44‑47
1 https://population.un.org/wup/assets/WUP2018‑PressRelease.pdf
2 https://www.who.int/news‑room/fact‑sheets/detail/ageing‑and‑health
3 https://unstats.un.org/sdgs/report/2023/Goal‑06/
4 https://www.who.int/news/item/25‑03‑2014‑7‑million‑premature‑deaths‑annually‑linked‑to‑air‑pollution
22 Halma plc | Annual Report and Accounts 2025
Our growth strategy
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.
04
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: 22
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 access to expertise from the
Group to give our companies a competitive edge
intheirmarkets.
See Our business model: 24
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: 16
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: 24
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: 24
Halma plc | Annual Report and Accounts 2025 23
Governance Report Financial Statements Other InformationStrategic Report
Our Sustainable Growth Model continued
Our business model
Our business model delivers
strong performance in both
thenear term, and sustainable,
compounding growth and
returns over the longer term.
It combines a scalable organisational
model,which enables us to continue growing
both organically and through acquisitions,
witha simple and self‑sustaining financial
model, which supports investment in our
growth strategy.
05
1 2
3
We are structured for growth
Our decentralised structure is simple and
lean with only three layers – companies,
sectors and Group teams – all three of
whichare aligned and rewarded on driving
sustainable growth and returns. This gives
usagility, enabling faster decision‑making
and reduced bureaucracy.
Our companies
Each company has autonomy to drive
entrepreneurial growth strategies in its
niche markets. It has its own board of
directors which drives accountability
forperformance and good governance.
Our sectors
Our sector teams are the vital
connection between our companies and
the Group teams. They drive our M&A,
review organic growth and portfolio
performance, and oversee the sector’s
capital and talent allocation. They
promote internal networks and
collaboration between companies.
Group teams
Group teams oversee the overall
strategy, including allocation of Group
capital and talent. They set our risk
appetite and ensure compliance and
good governance and provide our
companies with access to expertise
through small central teams to help
them grow and sustain high returns.
We acquire purpose‑aligned companies
We look to acquire and invest in high quality companies in
global market niches that are aligned with our purpose and
which have long‑term growth drivers. We then ensure they
have the best talent to enable their growth.
The qualities we look for when acquiring companies:
– Aligned with our purpose
– Underpinned by long‑term
growth drivers
– In a global niche with
highbarriers to entry
– Intimate knowledge
oftheirmarket
– Close to their customers
– High margins and returns
– Low capital intensity
– Ambition and capability
togrow
– Strong cultural fit
Read more about the anatomy of a Halma company andaHalmaleader: 17
We support our companies
with access to expertise
Our small Group teams provide a range of expertise to support
our companies as and when they need it, helping to accelerate
their growth strategies. This expertise includes:
– Providing access to
world‑class talent
– Leadership development
programmes
– Acquisition teams to source
and execute deals
– Legal, risk and financial
support
– Digital and technology
expertise
– Brand and communications
expertise
– Sustainability expertise
– Supply chain expertise
– Access to a network of peers
– Global employee benefits
– International hubs to
expandmarket reach
24 Halma plc | Annual Report and Accounts 2025
4 5
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.
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.
Rewarding our people
We reward our leaders for delivering superior
andsustainable growth and returns, also holding
them accountable for delivering our strategy and
complying with control frameworks. Short‑term
incentives based on Economic Value Added (EVA)
(profit growth, adjusted for a charge for the use
of any capital) are balanced by longer‑term
incentives inthe form of Halma shares.
We have a self‑sustaining
financialmodel
We have a sustainable financial model. Strong organic
growth and cash generation allows us to continuously
reinvest in future growth and acquisitions as well as
increasing dividends to investors each year.
We aim to deliver:
Strong
growth
Healthy
margins
High returns
Strong cash
generation
Continued
investment
Modest
balance sheet
leverage
A growing
dividend
Read more about our investment proposition: 26
Halma plc | Annual Report and Accounts 2025 25
Governance Report Financial Statements Other InformationStrategic Report
Strong track record
ofdelivery
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70 ofthis
report) and modest balance sheet
leverage.
Our 10 year track record
Strong growth High returns
Continued
investment
Strong financial
position
12.0%
Revenue
CAGR
2
21.1%
Average Adjusted
3
EBIT margin
5.2%
Average annual
R&D as a %
ofrevenue
92%
Average cash
conversion
3
11.7%
Adjusted EPS
CAGR
2
15.1%
Average Return
onTotal Invested
Capital
3
>£1.6bn
Total acquisition
spend
1.0x
Average leverage
(net debt
3
/ EBITDA
3
)
Our Sustainable Growth Model continued
Our investment proposition
We believe that our Sustainable Growth Model
enables us to deliver superior and sustainable
growth and returns for our investors.
22 years
Consecutive years of record
levels of profit
46 years
Consecutive years of dividend
growthof 5% or more
+2,291%
TSR
1
over the last 20 years
FTSE 100, +270%
NASDAQ Composite Index, +765%
We set challenging
targets:
We achieve this through:
1
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.
2
We aim to deliver high
levelsof performance
and,asa result, create
superior and sustainable
shareholder value.
Our purpose
Our purpose motivates us to make
apositive difference topeople’s
livesworldwide.
Read more: 20
Long‑term growth drivers
Our purpose gives us exciting opportunities
for growth in a diverse range of markets,
which have resilient, long‑term growth
drivers and high levels of defensibility.
Investing for the future
We pursue these opportunities through
investment in our products, services
andpeople to drive organic growth,
andbyexpanding into adjacent markets
through acquisitions.
Portfolio and performance
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.
Read more: 27‑31
1 Total Shareholder Return (TSR) to 31 March 2025.
2 Compound annual growth rate (CAGR) is the annualised rate of growth across the period. For further detail see the Summary 2016 to 2025 on pages 242‑243.
3 See alternative performance measures in note 3 to the Accounts.
06
26 Halma plc | Annual Report and Accounts 2025
Key performance indicators
We have a range
of 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.
Organic revenue growth (%)
(constant currency)
Organic profit growth (%)
(constant currency)
Performance
9.4 %
Performance
12.6%
Target ≥5%
2024 2025202320222021
9
17
(6)
10
8
Target ≥5%
2024 2025202320222021
(1)
13
14
(1)
4
7
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.
Comment
Organic revenue growth at constant
currency was above our target at 9.4%,
principally reflecting growth in the Safety
and Environmental & Analysis Sectors.
Organic constant currency revenue growth
over the last five years (which includes the
impact of the COVID pandemic in 2021)
hasaveraged 7.9%, ahead of our target.
Organic profit growth at constant
currencywas ahead of our target at 12.6%,
principally reflecting growth in theSafety
and Environmental &Analysis Sectors.
Organic profit growth over the lastfive
years (which includes the impact of the
COVID pandemic in 2021) has averaged
7.2%, aheadof our target.
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 the change in
Adjusted EBIT achieved in thecurrent year
calculated at constant currency 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.
Target
The Board has established a long‑term
organic revenue growth target ofat least
5% pa, slightly above the blended long‑term
average growth rate of ourmarkets.
The Board has established a long‑term
organic profit growth target of at least 5%
pa, slightly above the blended long‑term
average growth rate of our markets.
Remuneration linkage
Organic revenue drives earnings growth
which contributes to the Economic Value
Added (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.
SeetheAnnual Remuneration Report
fordetails of the EVA calculation.
Growth in organic profit is a 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. SeetheAnnual Remuneration
Report fordetails of the EVA calculation.
Halma plc | Annual Report and Accounts 2025 27
Governance Report Financial Statements Other InformationStrategic Report
Acquisition profit growth (%) EPS growth (%)
(adjusted earnings per share)
Adjusted EBIT margin (%)
Performance
3.5%
Performance
14.4%
Performance
21.6%
Target 5%
2024 2025202320222021
9.3
4.4
1.3
6.6
3.5
Target ≥10%
2024 2025202320222021
17
12
2
8
14
Target range
19% to 23%
2024 2025202320222021
20.4
21.3
21.9
20.8
21.6
Strategic focus
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.
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.
Comment
Acquisition profit growth was 3.5%
(2.1%including financing costs), below our
target, which reflected the lower spend on
acquisitions in the year, compared to the
prior year. We completed seven acquisitions
in 2025 fora maximum total consideration
of £157m. Acquisition profit growth over the
last five years (which includes the impact
ofthe COVID pandemic in 2021) has
averaged 5.9%. We have a healthy pipeline
ofM&Aopportunities.
Growth in adjusted earnings per share was
ahead of our target at 14.4%. Growth in
adjusted earnings per share overthe past
five years (which includes the impact of
theCOVID pandemic in 2021) has averaged
10.5%, slightly above our target.
Our Adjusted EBIT margin increased by
80basis points to 21.6%. This primarily
reflected astrong performance in the Safety
and Environmental & Analysis Sectors.
Definition
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.
We report 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 in note 2 on
page182) 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).
Adjusted EBIT margin is defined as
AdjustedEBIT from continuing operations
expressed as a percentage of revenue from
continuing operations.
Target
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.
We aim to achieve an Adjusted EBIT margin
within a range of 19‑23%.
Remuneration linkage
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.
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.
Key performance indicators continued
28 Halma plc | Annual Report and Accounts 2025
ROTIC (%)
(Return on Total Invested Capital)
Cash generation (%) Research and development (%)
(% of revenue)
Performance
15.0%
Performance
112%
Performance1
4.8%
Target range
12% to 17%
2024 2025202320222021
14.8
14.6
14.4
14.4
15.0
Target ≥90%
2024 2025202320222021
78
84
104
103
112
Target ≥4%
2024 2025202320222021
5.45.4
5.3
5.1
4.8
Strategic focus
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.
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.
Comment
ROTIC was 15.0%, remaining ahead of
ourtarget and substantially above our
Weighted Average Cost of Capital, which
isestimated to be 9.8% (2024: 9.7%).
Thechange compared to the prior year
principally reflected the high level of
constant currency profit growth delivered
inthe year.
Our cash conversion was strong and
increased to 112%, well ahead of our target.
This reflected good underlying working
capital management aswell as theongoing
reduction of the strategic investment in
inventory made in the 2022 and 2023
financial years.
Total R&D spend remained well above our
KPI target at 4.8% of revenue (2024: 5.1%,
restated). In absolute terms, R&D expenditure
in theyear increased by £4.6m to £108.4m.
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.
Definition
ROTIC is defined as the post‑tax return
fromcontinuing operations before
adjustments (as outlined on page 183)
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.
Total R&D expenditure in the financial
year(boththatexpensed and capitalised)
asapercentage of revenue from
continuingoperations.
Target
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.
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.
Remuneration linkage
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.
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.
Halma plc | Annual Report and Accounts 2025 29
Governance Report Financial Statements Other InformationStrategic Report
Employee engagement (%) Health & Safety
(accident frequency rate)
Climate Change (%)
(reduction in Scope 1 & 2 emissions
from 2020 baseline)
Performance
2
73%
Performance
0.07
Performance
64%
Target 70%
2024 2025202320222021
7373
74
72
73
Target <0.02
2024 2025202320222021
0.08
0.09
0.02
0.05
0.07
Target 42% reduction
2024 20252020
55
64
0
Strategic focus
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.
Comment
The baseline for our target was established
in 2017 when we ran our first global employee
engagement survey with Mercer. This year
we used a new platform and were pleased
to seethe employee engagement score
remain strong, achieving a 1% increase
fromlast year (see footnote).
The Health & Safety AFR performance this
year was 0.07 (2024: 0.05) representing
anincrease 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
64%since 2020, further exceeding our
target, largely as a result of increasing
renewable energy, alongside energy
efficiency initiatives and other
operationalimprovements.
In order to support our 2050 Scope 3
NetZero target we have set an interim
target to reduce total Scope 3 emissions
intensity by 66% by 2035.
Definition
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
3
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. Full details of our
definition and measurement are set
outinour Basis ofPreparation
atwww.halma.com.
Target
Our target remains to match or
beat the (rebased) baseline achieved in 2017
of70%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.
Remuneration linkage
During FY25, 5% of the maximum
opportunity ofour annual bonus plan
wasrelated to achievement of an energy
productivity target. This applied tothe
annual bonus for the Executive Directors
and other senior leaders in the business.
Thistarget was exceeded this yearand
willno longer form part of Executive
Remuneration from FY26. See page 126
ofthe Remuneration Committee Chair’s
letter for additional details on this change.
Key performance indicators continued
30 Halma plc | Annual Report and Accounts 2025
Diversity, Equity and Inclusion (%)
(company board gender balance)
Performance
33%
Target 40%
2024 2025202320222021
29
26
22
31
33
Strategic focus
To ensure ongoing agility and innovation,
diversity, equity and inclusion is a key focus
area. Following our success in increasing
gender diversity at the Halma plc and
Executive Boards, our current target is to
increase gender diversity on our portfolio
company boards.
Comment
This year we have 33%
4
women on portfolio
company boards, increasing from 31%
lastyear. This is an improvement we are
proud of and we continue our work to
achieve our ambition for allboards to be
within a 40–60% genderbalanced range
by31 March 2030. See page58 of the
Support our people sectionfor more details
on this.
Definition
The total number of board members
whoare women as a proportion of the
totalnumber of Halma portfolio company
board directors (181 company directors
asat31 March 2025).
Target
Halma company boards are to be within
a40–60% gender balance range by
31March2030.
Remuneration linkage
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 133 in the Annual
Remuneration Report.
1 R&D expenditure has been restated for 2022, 2023 and 2024. See Summary 2016 to 2025 on page 242.
2 The new engagement platform uses a different method to calculate engagement. To ensure comparability
ofdata, our historical engagement scores (including the 2017 baseline, which forms our KPI) have
beenrecalculated.
3 Specified major injury incidents and reportable incidents which result in more than three workingdays lost.
4 This includes directors of the companies that have been in the portfolio for longer than three years as at
31 March 2025.
Halma plc | Annual Report and Accounts 2025 31
Governance Report Financial Statements Other InformationStrategic Report
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 12 to 15 for commentary on the key
financial metrics for the Group: revenue, profit,
cashgeneration, capital allocation, organic and
inorganic investment and returns.
Details of the performance of our individual sectors
isgiven in each of the sector reviews, on pages
36to47 of this Report.
Revenue growth in all regions
Our revenue performance reflected broad-based
demand for the Group’s products and services, with
revenue growth in all regions on a reported 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
1
basis, there was strong growth in the USA,
ourlargest sales region and in Asia Pacific. Growth in
theUK and Other regions was good, while Mainland
Europe declined modestly reflecting the mix of
companyperformances.
Strong growth in the USA
Revenue in the USA increased by 16.0%, and the USA
remains our largest revenue destination, accounting for
46% of Group revenue, an increase of two percentage
points compared to the prior year. Reported revenue
included a 2.1% contribution from acquisitions (net of
disposals), and a negative effect of 1.7% from foreign
exchange translation. Organic
1
revenue increased 15.6%,
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 and solid growth
intheHealthcare Sector.
Weakness in Mainland Europe
Mainland Europe reported revenue was 2.8% higher
and0.5% lower on an organic
1
basis. Reported revenue
included a 5.0% contribution from acquisitions (net of
disposals), and a negative effect of1.7% from foreign
exchange translation.
On an organic
1
basis, there was solidgrowth in the
SafetySector, driven by a good performance in Fire Safety
andPublic Safety, which was offset by declines in the
Environmental & Analysis and Healthcare sectors.
TheEnvironmental & Analysis Sector was modestly lower,
with good growth in Optical Analysis and Environmental
Monitoring offset by weaker trends in Water Analysis and
Treatment. The Healthcare Sector was lower, reflecting
weakness in Ophthalmology Therapeutics following
strong growth in the prior twoyears.
Good growth in the UK
UK revenue was 7.4% higher, or up 5.9% on an organic
1
basis. Reported revenue included a 1.8% contribution
from acquisitions (net of disposals), and a negative
effect of 0.3% from foreign exchange translation.
All three sectors grew on an organic
1
basis, led by
goodgrowth in the Safety Sector across allsubsectors.
Growth in the Environmental & Analysis Sector was solid,
and modest in the Healthcare Sector.
Strong growth in Asia Pacific
Asia Pacific revenue increased 10.7%, and by 10.2%
onanorganic
1
basis. All sectors grew on an organic
1
basis,
with strong growth in the Safety and Environmental
&Analysis sectors and solid growth in the Healthcare
Sector. Reported revenue included a 2.5% contribution
from acquisitions (net of the impact of disposals),
andanegative effect of 2.0% from foreign
exchangetranslation.
In other regions, which represent 7% of Group revenue,
revenue was 5.2% higher on a reported basis, and 3.8%
higher on an organic
1
basis, reflecting good growth in the
Safety and Environmental & Analysis sectors, partially
offset by a flat performance inthe Healthcare Sector.
Geographic revenue
2025 2024
Change
£m
%
Change
% change
organic
1
£m
% of
total £m
% of
total
United States of America 1,038.6 46 895.3 44 143.3 16.0 15.6
Mainland Europe 431.2 19 419.5 21 11.7 2.8 (0.5)
United Kingdom 315.8 14 294.0 14 21.8 7.4 5.9
Asia Pacific 304.0 14 274.7 14 29.3 10.7 10.2
Africa, Near and Middle East 80.3 4 78.5 4 1.8 2.4 (0.4)
Other countries 78.2 3 72.1 3 6.1 8.6 8.4
2,248.1 100 2,034.1 100 214.0 10.5 9.4
32 Halma plc | Annual Report and Accounts 2025
First and second half performance
Revenue grew by 13.0% in the first half of the year and
by8.3% in the second half, with second half revenue
9.3% higher than revenue in the first. There was a first
half/second half split of 48%/52%, in line with our typical
pattern. Organic
1
revenue increased by 9.4%, comprising
a 11.5% increase in the first half and growth of 7.5%
inthe second half. Therewas a negative effect of1.6%
from currency translation in each of the first and second
halves, giving a negative effect of1.7% for the year as
awhole. Acquisitions (net of disposals) had a positive
effect of2.8%, comprising a3.1% positive effect in the
first half and 2.4% in the second half.
Adjusted
1
EBIT increased by 17.2% in the first half and
by12.7% in the second half, reflecting stronger first half
performances in the Environmental & Analysis and Safety
sectors, partly offset by weaker trends in the Healthcare
Sector, as described in the sector reviews. On an organic
1
basis, Adjusted
1
EBIT increased by 14.8% in the first half,
and by 10.8% in the second half, resulting in growth
of12.6% for the year. There was a first half/second half
Adjusted
1
EBIT splitof46%/54%, broadly in line with
ourtypical 45%/55%pattern.
Central costs increased from £41.1m in 2024 to £47.7m
The increase reflected investment in technology
infrastructure and talent to support our future growth.
In2026, we expect central costs to be approximately
£53m, the increase reflecting our growth.
Currency effects on reported revenue and profit
Halma reports its results in Sterling. Our other
keytrading currencies are the US Dollar and Euro.
Approximately 52% of Group revenue is denominated
inUS Dollars, 24% in Sterling and 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 of costs wherever practical, are hedged for a
proportion (up to 75%) of the remaining forecast net
transaction flows.
Sterling strengthened on average in the year. This gave
rise to a negative currency translation impact of 1.6%
onrevenue and 2.1% 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 £12m and profit by
approximately £3m. Similarly, a 1% movement in the Euro
changes revenue byapproximately £3m and profit by
approximately £0.7m. If Sterling weakens against foreign
currencies, thishas a positive impact on revenue and
profit as overseas earnings are translated into Sterling.
Currency effects
Weighted average rates
used in the income statement
Exchange rates used to
translate the Balance sheet
First half
2025
Full year
2024
Full year
2025
Year end
2024
Year end
US$ 1.281 1.276 1.257 1.289 1.263
Euro 1.178 1.188 1.159 1.194 1.171
Strong cash generation
Cash generated from operations in the year was £595.7m
(2024: £472.2m) and adjusted
1
operating cash flow,
was£545.7m (2024: £435.1m) which represented a cash
conversion of 112% (2024: 103%) of Adjusted
1
operating
profit. This was significantly ahead of our cash conversion
KPI target of 90%. Adjusted
1
operating cash flow is
defined in note 3 totheAccounts.
There was a working capital inflow of £29.6m, comprising
changes in inventory, receivables and creditors (2024:
outflow of £19.2m). As a percentage ofrevenue, working
capital was 17% (2024: 21%), whichreflected good
underlying working capital management as well as
theongoing reduction of thestrategic investment in
inventory made in the 2022 and 2023 financial years.
This year’s cash flow is shown 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 £167.9m
(2024:£263.4m), reflecting continued M&A investment.
Dividends totalling £83.8m (2024:£78.2m) were paid
toshareholders in the year. Taxation paid increased
to£103.3m (2024: £87.2m).
Operating cash flow summary
2025
£m
2024
£m
Operating profit 409.5 367.7
Acquisition items 20.2 7.1
Amortisation and impairment of acquisition related acquired intangible assets 56.9 49.5
Adjusted operating profit 486.6 424.3
Depreciation, impairment and amortisation (excluding acquired intangible assets) 66.5 59.1
Working capital movements 29.6 (19.2)
Capital expenditure net of disposal proceeds (44.7) (33.6)
Defined benefit pension plans administration costs less contributions from sponsoring companies 0.4 (3.0)
Other adjustments 7.3 7.5
Adjusted operating cash flow 545.7 435.1
Cash conversion % 112% 103%
Halma plc | Annual Report and Accounts 2025 33
Governance Report Financial Statements Other InformationStrategic Report
Financial review continued
Substantial funding capacity and liquidity
We have a strong balance sheet and substantial
available liquidity. At the year end, our committed
facilities totalled £1,250m, based on exchange rates
at31 March 2025. Our long-term funding is principally
comprised of US Private Placements and a Revolving
Credit Facility.
As previously reported, in May 2024 weexercised an
option on our syndicated revolving credit facility to
extend its maturity by one year to May 2029. Inaddition,
in April 2024, we completed a new Private Placement
issuance of £336m, consisting of US Dollar and
Eurotranches.
These facilities mature progressively over the next ten
years. Details are given in note 27 to the Accounts.
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 2025, net debt was £535.8m, including
£109.6m of IFRS 16 lease liabilities (net debt at 31 March
2024 was £653.2m), resulting in gearing (net debt to
EBITDA1) at the year end of 0.97 times (2024: 1.35 times).
The net financing cost in the Income Statement of £26.9m
was broadly in line with the prior year (2024: £27.6m).
Wewould expect the net financing cost for the 2026
financial year to be approximately £22m, if no further
acquisitions were to be made.
Non-operating cash flow and reconciliation to net debt
2025
£m
2024
£m
Adjusted operating cash flow 545.7 435.1
Tax paid (103.3) (87.2)
Acquisition of businesses including cash/debt acquired and fees (167.9) (263.4)
Purchase of equity investments – (0.3)
Disposal of businesses 5.9 1.6
Net finance costs and arrangement fees (excluding lease interest) (20.8) (25.5)
Net lease liabilities additions (56.5) (21.5)
Dividends paid (83.8) (78.2)
Own shares purchased (7.9) (21.1)
Adjustment for cash outflow on share awards not settled by own shares (3.5) (5.4)
Effects of foreign exchange 9.5 9.4
Movement in net debt 117.4 (56.5)
Opening net debt (653.2) (596.7)
Closing net debt (535.8) (653.2)
Net debt to EBITDA
2025
£m
2024
£m
Adjusted
1
EBIT 486.3 424.0
Depreciation and amortisation (excluding acquired intangible assets) 66.5 59.1
EBITDA 552.8 483.1
Net debt to EBITDA (times) 0.97 1.35
Average debt and interest rates
2025 2024
Average gross debt (£m) 831.2 765.1
Weighted average interest rate on gross debt 3.65% 3.87%
Average cash balances (£m) 198.9 131.2
Weighted average interest rate on cash 1.67% 0.96%
Average net debt (£m) 632.3 633.9
Weighted average interest rate on net debt 4.27% 4.47%
34 Halma plc | Annual Report and Accounts 2025
Group tax rate higher as expected
The Group has major operating subsidiaries in a number
of countries and the Group’s effective tax rate is a blend
of these tax rates applied to locally generated profits.
The Group’s effective tax rate on Adjusted
1
profit before
taxation was higher than the prior year at 22.6% (2024:
21.5%), mainly reflecting a change in the forecast mix
ofUK and USprofits.
Based on the latest forecast mix of adjusted profits
forthe year to 31 March 2026, we currently anticipate
theGroup effective tax rate to be approximately 22.5%
of Adjusted
1
profit before taxation.
The Group was holding a £14.7m corporation tax asset
foramounts previously collected by HMRC in respect
ofthe European Commission’s (EC) judgement that
theUKcontrolled Finance Company Partial Exemption
constituted State Aid. During the period, the European
Court of Justice annulled the EC’s original decision on
appeal by ITV. HMRC have applied the decision to the
Group’s appeal and have repaid the £14.7m to the Group
during the year.
Continued investment for organic growth
As well as our investment in R&D and acquisitions, which
are discussed in the CFO review on page 14, we invested
£45.6m (2024: £35.2m), principally in plant, equipment
and vehicles. The increase reflects investment in
manufacturing facilities and automation to support
ourfuture growth. We anticipate capital expenditure
tobe approximately £50m in the coming year.
As appropriate, we capitalise product development and
amortise the cost overan appropriate period, which we
determine as three years. All R&D projects that are
capitalised are subject to rigorous review and approval
processes. This year we capitalised £13.8m (2024: £16.4m),
impaired £3.1m (2024: £3.0m) and amortised £10.4m
(2024: £9.2m). The asset carrying value after a £0.7m loss
(2024: £0.9m loss) relating to foreign exchange was
£51.4m (2024: £51.8m).
Lease right-of-use asset additions and remeasurements
were £52.5m (2024: £18.6m). This included additions
of£3.4m as a result of acquisitions made in the year,
andthe commencement of new leases and extensions
orrenewals of existing leases.
Regular and increasing returns for shareholders
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 growth.
Adjusted
1
Earnings per Share increased by 14.4% to
94.23p (2024: 82.40p), ahead of our 10% KPI target.
Statutory basic earnings pershare increased by 10.1%
to78.49p (2024: 71.23p).
The Board is recommending a 7.0% increase in the final
dividend to 14.12p per share (2024: 13.20p per share),
which together with the 9.00p per share interim dividend
gives a total dividend per share of 23.12p (2024: 21.61p),
up 7.0% in total, in line with our medium-term organic
revenue growth rate.
Dividend cover (the ratio of Adjusted
1
profit after tax
todividends paid and proposed) is 4.07 times (2024:
3.81times).
The final dividend for the financial year ended March
2025 is subject to approval by shareholders at the Annual
General Meeting on 24 July 2025 and, if approved, will be
paid on 15 August 2025 to shareholders on the register
at11 July 2025.
Pensions update
On an IAS 19 basis, before deferred taxes, at 31 March
2025 the Group’s defined benefit (DB) plans had a net
surplus of £2.0m (2024: £30.9m surplus). The movement
primarily reflects the purchase of “buy-in” policies which
materially match the liabilities of the Group’s two UK DB
plans, which represented over 95% of consolidated plan
liabilities. A benefit of these policies is that they pass
certain risks in relation to these plans’ liabilities (such as
investment return, longevity and inflation) to the insurer.
Details are given in note 29 to the Accounts.
We do not expect to make any contributions to the
UKDB schemes in the 2026 financial year.
1 See alternative performance measures in note 3 to the Accounts.
Halma plc | Annual Report and Accounts 2025 35
Governance Report Financial Statements Other InformationStrategic Report
Our markets Summary
Fire Safety
Solutions that detect,
mitigate and suppress the
effects of fires, protecting
people and assets.
Worker Safety
Solutions that protect
peopleinhazardous
workenvironments.
– Strong revenue and
profitgrowth
– Revenue growth across
allsubsectors and
geographic regions
– Profit
1
margin increased
– Five acquisitions completed
in the year
£217.9m
Adjusted profit
1
+13.7%
40%
Sector % of Group turnover
Public Safety
Technologies that
safeguard the public by
preventing and protecting
people against a variety
ofrisks.
Infrastructure
&AssetSafety
Technologies that ensure
thesafemanagement and
operation of critical assets.
£902.0m
Total Revenue*
+9.5%
Business review
Safety
1 See alternative performance measures
innote 3 to the Accounts. For sector
profit before allocation of adjustments,
see note 1 to the Accounts.* includes inter‑segmental sales
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 safer and more sustainable
future for everyone.
36 Halma plc | Annual Report and Accounts 2025
Scan here for
more information,
and read the full
story online
With over 31 million passengers in 2024, Zurich Airport
relies on its 4,500 automatic doors to ensure the smooth
and safe flow of people travelling through the airport.
Zurich Airport has enjoyed seamless operation of its
automatic doors since integrating BEA’s sensing solutions.
Automatic doors are crucial for managing the immense
passenger volume in airports. Equipped with motion
sensors, these doors detect approaching individuals,
opening automatically to reduce congestion at entry
andexit points. They also promote energy efficiency by
speeding up door closing times and filtering out traffic
passing across the door to avoid unnecessary openings.
BEA is a leading manufacturer of sensing solutions for
automatic door systems and sensors are installed at
around 80% of airports across Europe. Its newest product,
Orascan, uses advanced laser and radar technology to
detect the presence and movement of people accurately,
regardless of the environment or door type, making
installation straightforward. In total, 18 major European
airports are already equipped with Orascan, and 16 more
are expected in the coming months.
BEA started working with Zurich Airport over 20 years
ago. Together, they exchange ideas and conduct field
tests on new products, leading to innovative solutions
that can be installed at airports. Due to their
longstanding relationship, Zurich Airport was one
ofthefirst test sites when developing the Orascan.
BEA sensors at Zurich Airport
have improved reliability which
ensures seamless operation and
enhances the passenger experience.
Karsten Junghanss
Project Manager at Zurich Airport
Transforming
airport operations
ORASCAN,
safety sensor
for automatic
sliding doors
Governance Report Financial Statements Other InformationStrategic Report
Halma plc | Annual Report and Accounts 2025 37
Strategic Report
Business review continued
What the sector does
Safety Sector companies protect people, assets and
infrastructure. Our technologies are used in public,
commercial spaces, industrial and manufacturing
environments, and contribute to creating a more
sustainable future.
Our companies develop and provide innovative solutions
that keep people safe and assets secure in hazardous
situations. We operate in high value niches 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, airports, car parks and highways.
Worker Safety – solutions ensure safe access in
potentially hazardous industrial environments, keeping
workers safe.
Infrastructure & Asset Safety – technologies that
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bycustomers operating 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 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 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.
For example, 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.
Revenue by destination
USA
27%
Asia Pacific
16%
Mainland
Europe
29%
Africa,
Near and
Middle East
5%
UK
19%
Other
countries
4%
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
public safety and efficiency in cities, which results in
growth inareas such as emergency communications.
Sector performance
The Safety Sector delivered another strong year.
Theperformance was broad based with positive revenue
growth across all subsectors and geographies and
increased profitability.
Revenue of £902.0m (2024: £823.8m) was 9.5% higher
than in the prior year. Revenue growth on an organic
1
basis was 7.7%, which was supported by a healthy order
book and volume growth across most of our companies.
Revenue growth in the first and second half was 11.0%
and 8.1% respectively on a reported basis.
We saw revenue growth in all four subsectors and
organic
1
revenue growth in three of our four subsectors.
Our largest subsector, Fire Safety, grew strongly,
reflecting positive trends across Fire companies and a
good contribution from Ampac’s acquisition of Global
Fire Equipment. The Worker Safety subsector also grew
strongly, driven by good execution and customer
demand for industrial access control solutions,
particularly in the USA and Asia Pacific.
Public Safety’s growth reflected good demand for sensor
technologies across existing and new applications.
Infrastructure & Asset Safety saw a mixed performance,
with the organic performance reflecting some customer
delays to larger capital projects, while reported
performance included a good contribution from
theacquisition of MK Test Systems Limited.
38 Halma plc | Annual Report and Accounts 2025
There was growth across all of the sector’s geographies
on both a reported and organic
1
basis, with double‑digit
revenue growth in the USA, the UK and Asia Pacific.
Europe and the other regions also grew well, reflecting
broad‑based growth across the subsectors as
describedabove.
Profit¹ grew by 13.7% to £217.9m (2024: £191.6m) on a
reported basis and increased by 11.6% on an organic
1
basis. Profit
1
margin increased to 24.2% (2024: 23.3%),
benefiting from stronger sales growth, favourable
product mix and good operational cost control. Profit¹
growth in the first half was 20.2%and8.1% in the second
half, with the first half performance reflecting a lower
comparator in the firsthalf of the prior year.
The sector continued to invest in opportunities for
futuregrowth through R&D spend and acquisitions.
R&Dexpenditure increased to £50.4m, representing 5.6%
of revenue (2024: £45.2m; 5.5% of revenue). There were
five acquisitions in the year; one standalone company
and four bolt‑on acquisitions to existing companies in the
sector. MK Test Systems Limited, a UK‑based company
which designs and manufactures safety‑critical electrical
testing technology, was acquired in April 2024 for a
consideration
2
of £43m. G.F.E. – Global Fire Equipment,
S.A., a Portuguese designer and manufacturer of fire
detection and alarm systems, was acquired in June 2024
as a bolt‑on for the Fire Safety company, Ampac, for a
consideration
2
of €42m (approximately £35m). In July
2024, the sector made two smaller bolt‑on acquisitions,
of Advantronic, a Spanish manufacturer of control
panels and distributor of fire alarm systems, with strong
expertise in wireless technology, as a bolt‑on for the Fire
Safety company, Orama, for a consideration
2
of €2m
(approximately £2m), and RemLive, a UK‑based provider
of electrical safety products, as a bolt‑on for the Worker
Safety company Fortress Safety, for a consideration
2
of£4m. In November 2024, Safe‑Com Wireless LLC,
aUS‑based manufacturer of emergency responder
communication enhancement systems was acquired
fora maximum total consideration
2
of US$10m
(approximately £8m), as a bolt‑on for the Public Safety
company Avire.
Acquisitions had a positive effect of 3.4% on revenue and
3.6% on profit¹. The disposal of FireMate in the prior 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 1.4% on revenue and 1.9%
onprofit
1
.
1 See alternative performance measures in note 3 to the Accounts.
Forsectorprofit before allocation of adjustments, see note 1 to the Accounts.
2 The consideration is on a cash‑ and debt‑free basis.
Adding new
capabilities
Acquisition case study: MK Test Systems
Increasing electrification and ever more complex
electrical systems are creating exciting new
opportunities for the Safety Sector. The intricate
electrical cabling that goes into all types of
transportvehicles and electrical installations
needstobe rigorously tested to ensure it is safe.
Following the acquisition of WEETECH in 2022,
Halma’s SafetySector expanded its presencein
thepower and energy testing market inMay 2024
byacquiring MK Test Systems.
MK Test Systems has been designing automatic
testequipment for the world’s most demanding
industries since 1992. It manufactures safety‑critical
electrical testing technology used in transportation
industries. Based in Wellington, UK, its products
ensure the safety and integrity of the electrical
systems in aeroplanes, trains and other vehicles,
protecting workers and passengers. MK Test Systems
further enhances Halma’s capabilities in energy
safety and brings new opportunities for growth,
driven by increasing safety regulation and the need
to protect high valueassets.
Nigel Mungombe
Test Engineer, MK Test Systems
Halma plc | Annual Report and Accounts 2025 39
Governance Report Financial Statements Other InformationStrategic Report
Business review continued
Our markets Summary
Optical Analysis
World‑class optical,
optoelectronic and spectral
imaging systems that use light
ina wide variety of industrial,
digital and research applications.
Environmental Monitoring
Technologies that detect
hazardous gases, analyse
airquality, gases and water
tomonitor environmental
quality and ensure that
resource infrastructure
operates efficiently.
– Strong revenue and
profitgrowth
– Substantial increase
inmargin
– Strong Optical Analysis
performance driven by
photonics growth and
improved spectroscopy
performance
– One acquisition completed
in the year
£185.5m
Adjusted profit
1
+25.4%
35%
Sector % of Group turnover
Water Analysis & Treatment
Systems that assist communities
and businesses around the world
to sustainably improve water
quality and availability.
£776.6m
Total Revenue*
+18.0%
Business review
Environmental
& Analysis
1 See alternative performance measures
innote 3 to the Accounts. For sector
profit before allocation of adjustments,
see note 1 to the Accounts.* includes inter‑segmental sales
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.
40 Halma plc | Annual Report and Accounts 2025
PIVOT ROV
for underwater
monitoring
Scan here for
more information,
and read the full
story online
Marine ecosystems around the world are under pressure
from rising sea levels, stronger storms and shifting
weather patterns—threats that are increasingly visible
inplaces like Newfoundland and Labrador’s west coast
inCanada.
The Gros Morne region, a UNESCO World Heritage Site,
ishome to seven coastal communities that have relied
on the ocean for generations. As climate change alters
the health of its eelgrass beds, saltmarshes, and other
marine habitats, local communities are looking for new
ways to understand and safeguard their environment.
Atlantic Healthy Oceans Initiative (AHOI), based
inNorrisPoint, Newfoundland is leading this effort.
Usingone of Deep Trekker’s remotely operated vehicles
(ROV), AHOI explores deep, glacier‑carved fjords that
have Arctic‑like temperatures and reach depths of nearly
300 metres – areas inaccessible to divers. Equipped with
advanced cameras, sonar, and lasers, the ROV allows
researchers to map the ocean floor and monitor the
ecosystem’s health.
This collaboration blends local knowledge with advanced
technology, enabling safe, precise and non‑invasive
research. The data collected supports sustainable fishing,
tourism and conservation – key pillars of the local
economy. It also helps communities adapt to climate
change and promote responsible economic practices.
Using Deep Trekker’s ROVs
allows us to research and protect
marine habitats in ways that
were previously impossible.
Rebecca Brushett
Founder, Atlantic Healthy Oceans Initiative
Enabling sustainable coastal communities
Governance Report Financial Statements Other InformationStrategic Report
Halma plc | Annual Report and Accounts 2025 41
Strategic Report
Revenue by destination
USA
63%
Asia Pacific
11%
Mainland
Europe
9%
Africa,
Near and
Middle East
3%
UK
12%
Other
countries
2%
Business review continued
What the sector does
Our Environmental & Analysis Sector companies provide
high‑technology solutions that monitor the environment,
ensure the quality and availability of life‑critical natural
resources such as air, water and food, analyse materials
in a wide range of applications, and support digital and
data capabilities. 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, increasing challenges in the
management of waste and pollution, and a growing
need for data transfer and connectivity. Growth in these
areas is underpinned by 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 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, analysis and connectivity
solutions which help our customers address these
challenges. We see growing long‑term opportunities
forour companies to help their customers, for example,
prevent emissions, detect leaks and analyse air and
water quality, to enhance data connectivity and
analytics, 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 £776.6m (2024: £658.4m)
was 18.0% higher than in the prior year, and up 19.0%
onan organic
1
basis.
Sector growth included a very strong performance in
theOptical Analysis subsector. This was driven primarily
by growth in photonics, and was also supported by
arecovery in spectroscopy’s performance.
The performance in photonics benefited from increased
demand from a long‑standing customer, who is a
“hyperscaler” technology company. We continued to be
successful in scaling our photonics operations to meet
this customer’s demand for critical solutions that support
the ongoing development of its data centre capabilities.
This customer accounted for 15% of Group revenue in the
year (2024: 12%). In the first half of this year, revenue and
profit
1
from photonics were, as already reported in our
half year results, similar to the second half of last year.
This represented strong growth compared to the first
half of last year. In the second half of the year, photonics
revenue and profit
1
was ahead of our expectations, albeit
growth was at a more modest ratethan in the first half
given a stronger comparative. Photonics profit
1
margin
for the year was similar to the Group’s profit
1
margin
priorto central administration costs. For the year ahead,
while trends inthis market remain dynamic, we currently
expect further very strong growth in photonics.
Growth in the Optical Analysis subsector was also
supported by a significantly stronger performance in
spectroscopy, driven by a recovery in selected markets
including biopharma, personal electronics and other
solutions for OEM customers.
In other subsectors, growth was driven by the
Environmental Monitoring subsector, reflecting a strong
performance in gas detection and analysis solutions,
notably in the USA, driven by a number of larger
projects, and growth in new market areas in Asia Pacific.
42 Halma plc | Annual Report and Accounts 2025
Performance in the Water Analysis & Treatment
subsector was mixed: modest growth in water testing
and disinfection was more than offset by a decline in
water infrastructure, which reflected a slow start to
utility companies’ capital projects at the start of the
newregulatory period in the UK, and challenges in
USmarkets.
By region, the USA accounts for over 60% of the sector’s
revenue, and reported the highest growth at 27%.
Thiswas driven by the exceptional performance in
photonics, and was also supported by strong growth
inEnvironmental Monitoring. Growth was also strong
inAsia Pacific, reflecting the recovery in spectroscopy
inthe Optical Analysis subsector, and good momentum
in Environmental Monitoring. There was modest growth
in the UK, mainly driven by the recovery in spectroscopy.
Revenue in Mainland Europe was flat on an organic
1
basis, with growth in Environmental Monitoring offset
byweaker markets in Water Analysis and Treatment,
andreported revenue lower as a result ofa small disposal
in the year.
Profit
1
grew by 25.4% to £185.5m (2024: £147.9m),
andby25.5% on an organic
1
basis. Profit
1
margin
increased by 140 basis points to 23.9% (2024: 22.5%).
Thisreflected the sector’s strong revenue momentum,
aswell as the recovery in the higher margin spectroscopy
businesses, the non‑recurrence of the prior year’s one‑off
system implementation and restructuring costs, and
strong cost discipline across the sector. Thesebenefits
were partly offset by a lower gross margin primarily
asaresult of changes to product mix. R&D expenditure
increased to £28.4m (2024: £27.4m). This represented
3.7% of revenue, lower than the 4.2% in 2024 with the
change reflecting the strong revenue growth in photonics
which has relatively lower R&D requirements, with R&D
investment in other sector companies remaining at a
healthy level.
The sector made one acquisition in the year, of Hathorn
Corporation, a Canadian designer and manufacturer of
plumbing and drainage inspection cameras as a bolt‑on
for our Environmental & Analysis company, Minicam,
forCA$44m (approximately £24m)
2
. The sector also
madeone small disposal in the year, of Hydreka SAS,
forapproximately €7m (£5.9m), net of disposal costs.
Acquisitions (net of disposal) contributed 0.6% to
revenue growth in the year, and 1.7% to profit
1
. Currency
exchange movements had a negative effect of 1.6%
onrevenue and 1.8% on profit
1
.
1 See alternative performance measures in note 3 to the Accounts.
For sector profit before allocation of adjustments, see note 1 to the Accounts.
2 The consideration is on a cash‑ and debt‑free basis.
Accelerating
growth
Acquisition case study: Hathorn & Minicam
Minicam is a leading provider of pipeline inspection,
maintenance and rehabilitation products for the
wastewater industry, including remote‑controlled
robots that detect blockages, and systems for fixing
pipes without needing to dig a trench. It has a strong
market presence in the UK and Europe, and as part
of its strategy to accelerate its growth in North
America, in October 2024 it acquired Hathorn,
basedin Canada, to expand its market reach.
Hathorn makes plumbing and drainage inspection
cameras that are complementary to Minicam’s
existing product range, and aligned with its strategy
of providing customers with easy to use, robust and
reliable inspection products combined with excellent
service and support. The acquisition of Hathorn
expands Minicam’s North American market
presence, enhances its product offerings and
servicecapabilities, and provides the opportunity
toaccelerate its growth in a key target market.
Halma plc | Annual Report and Accounts 2025 43
Governance Report Financial Statements Other InformationStrategic Report
Business review continued
Our markets Summary
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.
Therapeutic Solutions
Technologies, materials and
solutions that enable treatment
across key clinical specialties.
– Resilient performance
insubdued markets
– Stronger performance
insecond half
– Continued investment in
new product development
– Good contribution from
acquisitions; one further
acquisition completed
intheyear
£130.6m
Adjusted profit
1
+4.0%
25%
Sector % of Group turnover
Life Sciences
Technologies and solutions
toenable in‑vitro diagnostic
systems and accelerate
life‑science discoveries
anddevelopment.
£570.4m
Total Revenue*
+3.2%
Business review
Healthcare
1 See alternative performance measures
innote 3 to the Accounts. For sector
profit before allocation of adjustments,
see note 1 to the Accounts.* includes inter‑segmental sales
Our Healthcare Sector 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.
44 Halma plc | Annual Report and Accounts 2025
Scan here for
more information,
and read the full
story online
As people live longer, chronic health conditions
increasingly impact their quality of life. Vertebral
compression fractures, caused by osteoporosis or injury,
pose a significant health concern for elderly individuals,
especially women. These fractures are common,
with40% of women experiencing them by age 80.
Ageing leads to bone density loss, making bones prone
to breaks. Elderly individuals are more likely to experience
falls, raising the risk of vertebral compression fractures.
This results in severe pain, reduced mobility, and a
decline in daily activities, significantly impacting quality
of life. Women with these fractures have a 15% higher
mortality rate due to other health problems from
reduced mobility.
Minimally invasive surgery using
IZI Medical devices can help elderly
patients with vertebral compression
fractures walk again without pain.
Dr Ajay Antony
Interventional pain physician, The Orthopaedic Institute
IZI Medical develops devices for minimally invasive testing
and surgery, including a curved needle for pinpoint
access to the spine and a unique bone cement for fixing
fractures with tracking beads for precise placement.
Dr. Ajay Antony, interventional pain physician at
TheOrthopaedic Institute, specialises in using IZI’s
technology for treating vertebral compression fractures.
This minimally invasive approach enables targeted
surgery, reduces complications, and improves recovery
times, allowing elderly patients to return home the
sameday.
The collaboration with IZI Medical has been instrumental
in providing support and technical components for
theseprocedures. This partnership has improved patient
outcomes, with many experiencing significant pain relief
and improved function shortly after the procedure.
Helping people walk again without pain
DURO‑JECT
®
,
Bone Cement
Injector Set
Governance Report Financial Statements Other InformationStrategic Report
Halma plc | Annual Report and Accounts 2025 45
Strategic Report
Business review continuedBusiness 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 and electrosurgical devices 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 supplies products and services for 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 2030, the World Health Organisation
estimates that one in six people in the world will be
aged60 years or older. By 2050, the number ofpeople
inthat age group is forecast to double to 2.1 billion and
the number of people aged 80 years orolder is expected
to triple to over 400 million. 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 are also driving 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.
Our businesses contribute to reducing healthcare
inequity, in particular to helping close the women’s health
gap. Women spend 25% more of their lives in debilitating
health than men due to lower effectiveness of, and
investment in, treatments for women, poorer 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 resilient performance
in2025, given the continued subdued background in the
healthcare market, albeit one that showed improvement
as the year progressed.
Revenue increased by 3.2% to £570.4m (2024: £552.9m).
On an organic
2
basis, revenue was 0.3% higher in the
year, which comprised a decline of (2.5)% in the first half,
and growth of 2.9% in the second half. There was revenue
growth on an organic
2
basis in all three subsectors in the
second half ofthe year.
By subsector, there was modest organic
2
revenue growth
in Healthcare Assessment & Analytics, which reflected
growth in the majority of companies and improved
momentum in the second half of the year. There were
strong performances in communications & software
systems, driven by the need for greater efficiency in
healthcare facilities, and in perinatal care as healthcare
providers seek to deliver improved outcomes for mothers
and babies, while ophthalmology assessment delivered
modest revenue growth. These positive trends were,
however, mostly offset by a delayed recovery in
patientassessment.
Revenue by destination
USA
53%
Asia Pacific
13%
Mainland
Europe
18%
Africa,
Near and
Middle East
3%
UK
9%
Other
countries
4%
46 Halma plc | Annual Report and Accounts 2025
Performance in the Therapeutic Solutions subsector was
mixed, but also improved in the second half of the year.
Strong revenue growth in a number of surgical and
respiratory device companies was offset by a decline in
ophthalmology therapeutics in Europe, which reflected
the comparison with a very strong performance over
thepast two years, and delays to OEM customer
productlaunches and destocking. Growth on a
reportedbasis was driven by a good contribution
fromrecent acquisitions.
Having experienced a significant slowdown in 2024,
thesmaller Life Sciences subsector delivered good
growth in the 2025 financial year, thanks to improving
conditions inits end markets, notably in the second half
of the year.
Performance by geography reflected the subsector
trends described above, with good growth in the sector’s
largest region, the USA, and in Asia Pacific, partly offset
by a decline in Mainland Europe principally driven by
ophthalmology therapeutics. There was modest growth
in the UK, and in other regions.
Profit
2
of £130.6m was 4.0% higher than in the prior year
(2024: £125.6m), and 0.3% higher on an organic
2
basis.
This reflected a strong recovery in profitability in the
second half of the year, driven by theoperating leverage
from improved revenue growth, resulting in profit
2
growing 18.2% in the second half. Profit
2
margin increased
by 20 basis points to 22.9% (2024:22.7%) in the year, with
the effect of a stronger gross margin as a result of positive
product mix effects. R&D expenditure was £29.7m,
representing 5.2% of revenue (2024: £30.9m; 5.6% of
revenue; restated
3
) reflecting continued good levels of
investment in new product development.
The sector made one acquisition during the year.
Lamidey Noury Medical, a manufacturer of advanced
electrosurgical and associated energy devices used in
minimally invasive urology, gynaecology, and general
surgery, was acquired in November 2024 fora
consideration of €50m (£41m), onacash‑ and
debt‑freebasis.
Acquisitions had a positive effect of 4.5% on revenue
and5.4% on profit
2
. Currency exchange movements had
a negative effect of 1.6% on revenue and 1.7% on profit
2
.
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.
3 See Summary 2016 to 2025 on pages 242‑243 for further detail.
Expanding
marketniche
Acquisition case study: Lamidey Noury
Long‑term growth in healthcare is being driven
by ageing populations and the consequent
higherincidence of chronic disease, technological
innovations and the need for healthcare providers
toincrease efficiency to address growing demand.
Minimally invasive procedures offer shorter recovery
times, lower risks and better outcomes forpatients,
while helping healthcare providers toimprove their
efficiency and treat more patients.
Halma acquired Lamidey Noury in November
2024 to add to its therapeutic product capabilities.
Lamidey Noury, based in Paris, France, is a leading
provider of innovative, high‑quality electrosurgical
solutions, focusing on urological and gynaecological
procedures, that improve surgical outcomes and
enhance efficiency. Their devices allow for more
precise and controlled interventions, therefore
offering shorter patient recovery times and reducing
the risk of complications.
Halma plc | Annual Report and Accounts 2025 47
Governance Report Financial Statements Other InformationStrategic Report
Our people
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 that are diverse,
effective and engaged.
What matters to them
– 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:
Talent & Culture Review on page 16
Sustainability on page 54
Board engagement with employees on page 109
Remuneration Report on page 123
Stakeholder engagement
Maintaining strong stakeholder relationships is
essential to Halma’s long‑term sustainable growth
and the fulfilment of our purpose.
How we engage
We foster an open and collaborative environment, which ensures
regular communication and engagement across our Group of over
9,000 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 teams.
At the company level, engagement with employees is through
company newsletters; regular townhalls; digital platforms,
including intranet sites; employee pulse checks; employee forums;
wellbeing initiatives; and organised social events.
Our Board members highly value opportunities to engage with
colleagues, both directly and indirectly, and consider the interests
of our employees when making decisions.
Outcomes and actions in the year
– Executive and non‑executive Directors attended 32 company
sitevisits, meeting with a diverse range ofcolleagues.
– Introduction of a new platform to measure employee sentiment
through an annual engagement survey and pulse checks
throughout the year.
– Achieved an 83% response rate and 73% overall engagement
rate forour annual employee engagement survey.
– Through the Employee Assistance Programme in the US, Europe,
China and India, we have supported employees inexploring
topics suchas mental health.
– Launch of a unified people platform, Workday, which enhances
the employee experience, supports career mobility, and helps
leaders plan for future talent needs.
– Introduction of three new leadership programmes, with100
leaders coached this year.
– More of our companies added flexible work options forbetter
work‑life balance.
Our stakeholders
48 Halma plc | Annual Report and Accounts 2025
Our companies
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.
What matters to them
– Collaboration and interconnectivity
– Operational and financial performance
– Access to central expertise, skills and
otherresources
– R&D investment
– Talent development
– International expansion
Further links:
Business reviews on page 36
Halma at a glance on page 4
How we engage
Our 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 Halma conference held in October 2024 (see page 50
forfurther details).
– 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. Operations
leaders held a two‑day event in April 2024 and a Digital Solutions
Summit brought together almost 40 technical directors in
March2025 to look at digital innovation trends and the use
oftechnology in real‑world use cases.
– Continued M&A activity, providing companies with access
tonewproducts, know‑how and end markets.
– Ongoing legal entity rationalisation programme offering
expertise and support for companies wishing to participate.
Customers
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.
What matters to them
– Innovative solutions
– Competitive pricing
– Long‑term relationships
– Stable supply chain
– Service and support levels
Further links:
Business reviews on page 36
Non-financial & sustainability information
statement on page 64
How we engage
As a highly decentralised business our companies work closely with
their customers, which fosters close partnerships and promotes
open two‑way communication and dialogue.
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.
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.
Halma plc | Annual Report and Accounts 2025 49
Governance Report Financial Statements Other InformationStrategic Report
Our stakeholders continued
In October 2024, we held our Accelerate Halma conference
in Phoenix, Arizona, bringing together 350colleagues
across the business, including the Board, Executive Board,
senior Group employees and company board members.
Accelerate Halma offered opportunities for engagement,
collaboration, and learning. Designed by leaders from
Halma companies, the event featured plenary
presentations, panel discussions, workshops, and
learning sessions, all under the theme “Embrace the
Adventure”, one of Halma’s cultural genes. We also
participated in local community outreach activities.
Our non‑executive Directors hosted a breakfast
eventwith leaders from across the Group and
contributed topanel discussions, sharing the benefits
oftheirexperience.
Following the conference, an anonymous evaluation
showed the event’s success in providing a better
understanding of the Group, building connections,
andsharing insights valuable for daily operations.
Accelerate Halma 2024
I’m impressed by the people that
I’vemet and the innovation we have.
Ican collaborate with different
leaders, not only at Accelerate, but
throughout the year. It’s incredible
how our companies are having such
apositive impact on the world.
Aurélie Paul, Managing Director, Sentric Safety Group
50 Halma plc | Annual Report and Accounts 2025
Suppliers
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.
What matters to them
– Fair payment practices
– General terms and conditions of business
– Social, ethical and environmental impacts
– Long‑term partnerships
Further links:
Sustainability on page 54
Non-financial & sustainability information
statement on page 64
How we engage
As a highly decentralised business, our companies determine their
supply chain and own the relationship with their suppliers, and
work closely with them to ensure that they can continue to deliver
the best products and services for their customers and have the
infrastructure in place to respond to market developments.
Inaddition, our DCEs engage with key suppliers, reporting back
tothe Board periodically on significant supplier contracts and
arrangements, and the Board maintains oversight of potential
significant supply chain issues andmitigations.
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 engages with key suppliers to develop
proposals and present options to our companies.
Our companies regularly engage with their principal suppliers,
including conducting audits, and encourage them 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.
Many of our companies have also been engaging with their
suppliers on sustainability matters. We expect increased
sustainability‑related supplier engagement from our companies
asthey start identifying and executing on their Scope 3
decarbonisation actions.
Outcomes and actions in the year
– Additional companies, as part of our bottom‑up decarbonisation
planning process, have started to prioritise suppliers for
engagement based on actual orpotential Scope 3 reduction
opportunities.
– Multiple individual operating companies are developing or
executing supplier due diligence processes. Asustainable supply
chain working group has been setup with several of our largest
companies with theintent to develop common frameworks.
– We continue to enable access to Ecovadis as a platform to
support our companies to gain a better understanding of
suppliersustainability risk and maturity.
– A policy review process has been initiated to upgrade our
supplier‑related policy suite over time in line with best
practiceforsocial and ethical due diligence expectations.
Halma plc | Annual Report and Accounts 2025 51
Governance Report Financial Statements Other InformationStrategic Report
Acquisition prospects
and business partners
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.
What matters to them
– 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 2
Business reviews on page 36
How we engage
Our Executive Directors are in dialogue with our business partners
and may 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. Any acquisitions exceeding £10 million
consideration are approved by the Board.
Outcomes and actions in the year
– Completed seven purpose‑aligned acquisitions across ourthree
sectors throughout the year.
– Increased investment in central M&A team.
Society and community
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.
What matters to them
– Environmental and social impact
– Improving quality of life
– Protecting people
Further links:
Sustainability on page 54
Non-financial & sustainability information
statement on page 64
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 regularly support their communities through
tailored initiatives.
– Launch of the Impact the Future Fund. This new initiative sees
ourcompanies choose local non‑profit partners and apply for
annual grants to support causes they care about. They must
offer support through technology, people, or skills and show they
can build long‑term relationships. 75% of our companies and
Hubs in China and India are participating this year withthe
potential to positively impact many communities globally.
Readmore on page 60.
Our stakeholders continued
52 Halma plc | Annual Report and Accounts 2025
Investors and debt holders
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.
What matters to them
– 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:
Our investment proposition on page 26
Business review on page 36
KPIs on page 27
Board oversight of our culture on page 107
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 330 investor meetings, engaging with investors inthe
UK,Continental Europe, North America and Asia. These were
attended by a broad range of senior Halma management,
including the Group Chief Executive, Chief Financial Officer
andmembers of theExecutive Board.
– Held our first investor webinar on ‘How we do M&A’, featuring
three speakers from our Executive and SectorBoards and
moderated by our Head of Investor Relations. This was followed
by a live Q&A session fromthe online audience of around 260
attendees. Thewebcast is archived in the investor section of
ourwebsite.
– Held roadshows focused on smaller investors and private client
brokers, including in person meetings inregional UK cities,
andawebinar focused on theprivate investor audience.
– Held a series of meetings between our Chair, DameLouise Makin,
and major shareholders, coveringapproximately 20% of our
share capital. Key discussion topics included Board succession,
Board composition and skills, Groupculture, andtalent
management.
– Held our Annual General Meeting in July 2024, allowing
forfaceto face interaction between Board members and
retailshareholders.
Section 172 statement
The Directors take their responsibilities to stakeholders seriously and considers stakeholder views in Board discussions
and the decision‑making process. Inaddition to having regard to the interests of stakeholders, Directors also
consider the impact of the Group’s activities on the communities within which it operates, the environment,
andthe Group’s reputation.
The Directors act in a way that they consider, in good faith, would most likely promote the success of the
Company for the benefit of its members as awhole, having regard to the likely consequences ofany decision
inthe long term and the broader interests of other stakeholders, as required by the Companies Act 2006.
Formoreinformation in support of this statement, see ‘Section 172 and decision‑making’ on page 105.
Halma plc | Annual Report and Accounts 2025 53
Governance Report Financial Statements Other InformationStrategic Report
Sustainability
Our approach to sustainability
Doing more good
Our three-pillar approach starts with driving growth
in sustainability. We believe that continuing to
encourage our companies to identify and pursue
sustainability-related opportunities to grow their
products and markets will allow us to accelerate our
progress and broaden the benefits that our companies
already enable through their products and services.
This pillar is embedded in our operations whereby
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. At the same time, our
companies are also required to consider and include
strategic sustainability-related risks in their risk registers to
ensure they are protecting their future growth potential.
Sustainability for growth
At Halma, sustainability has always been at the
coreofour purpose-driven strategy for growth.
Our sustainable growth is anchored in our continued
focus on acquiring and growing companies in safety,
environmental and healthcare markets that are
addressing real-world problems 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.
Sustainability reporting suite
Beyond this sustainability section, further data on other
environmental, social and governance topics, plus more
detailed examples of our companies’ progress are
available in our sustainability reporting suite.
Read more about our Sustainability Review,
ESG Data Supplement and ESG Data Basis of
Preparation at www.halma.com/sustainability
Our verification statement will be published in the
second half of 2025 and available on www.halma.com
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.
While doing less harm
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 within our operations.
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.
To drive these two pillars, we require our companies
tomaintain a Sustainability Action Plan (SAP) which is
reviewed and updated at least annually. These plans
contain goals and actions set by each company to
manage their impacts on the environment and people.
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.
ESG Data
Supplement
Halma plc
|
Sustainability Reporting Suite 2025
ESG Data Basis
of Preparation
Halma plc
|
Sustainability Reporting Suite 2025
Sustainability
Review
Halma plc
|
Sustainability Reporting Suite 2025
54 Halma plc | Annual Report and Accounts 2025
We drive growth in sustainability by:
– Seeking organic and acquisition growth
opportunities driven by our purpose,
long-term growth drivers and evolving
sustainability demands that aim to
increase and broaden the benefits
enabled by our products and services.
Read more: 56
We support our people by:
– Improving the lives of employees,
suppliers and community members.
– Focus areas: diversity, equity
andinclusion.
Read more: 58
We protect our environment by:
– Reducing our environmental footprint
inour operations and wider value chains.
– Focus areas: reducing greenhouse gas
emissions andsustainable design.
Read more: 62
Our three sustainability pillars
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.
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.
The Executive Board is 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.
Sustainability Reporting and Risk Steering Group
Established this year, our Sustainability Reporting and
Risk Steering Group’s main objective is to discuss and
guide decisions taken in preparing for and complying
with sustainability reporting requirements. The group
comprises cross-functional members and meets on
anad-hoc basis.
A priority for this group is to develop and implement
acomprehensive double materiality assessment plan,
building on previous work assessing financial materiality.
This endeavour aims to establish a foundation for
meeting expanding sustainability reporting requirements,
including the Corporate Sustainability Reporting
Directive (CSRD).
See the Board’s sustainability‑related skill set: 95
Read more about climate‑related governance: 80
Drive growth
in sustainability
Doing
more good
whiledoing
less harm
Protect our
environment
Support
our people
Halma plc | Annual Report and Accounts 2025 55
Governance Report Financial Statements Other InformationStrategic Report
Drive growth in sustainability
Organic growth opportunities
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 of our companies, leveraging innovation
and digital technologies will be key to solving
sustainability challenges.
See our Sentric Safety Group case study: 57
Acquisition growth opportunities
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.
Further examples of our sustainability-related growth opportunities
canbe found in our online Sustainability Review at www.halma.com
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:
For example, Halma’s recent acquisition, Lamidey
NouryMedical is a company renowned for its excellence
in designing and producing electrosurgical instruments.
These instruments are essential in minimally invasive
procedures because they allow for more precise and
controlled interventions, reducing the risk of
complications and improving patient outcomes.
Notonlydoes this acquisition align well with our
purpose,but clearly supports the third UN Sustainable
Development Goal to ensure healthy lives and wellbeing.
Monitoring growth
Given our Sustainable Growth Model is already driven
byour purpose to create a safer, cleaner, healthier
futurefor everyone, every day, defining and measuring
sustainability-related growth continues to be a
challenge. 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.
We are therefore focused on building a variety of
flexible approaches to measurement and reporting of
opportunities over time. This year, using outputs from
theannual strategic planning process, we were able to
assess, aggregate and review the financial potential of
our products and markets climate-related opportunities.
More detail can be found in the TCFD statement: 79
Sustainability continued
56 Halma plc | Annual Report and Accounts 2025
Supporting the energy transition
Case study: Sentric Safety Group
According to the 2024 IEA outlook report
1
, the global
energy sector added nearly 2.5 million jobs in 2023
bringing total employment to over 67 million workers.
This growth was driven by record levels of investment
across various energy sources following theglobal energy
crisis. Notably, the same report indicates the clean
energy sector accounted for 61% of this growth, as many
global economies prioritise the shift to clean energy and
seek todiversify energy sources to meet bothenergy
security and decarbonisation objectives.
To manage the increasing diversity of energy sources,
thepower grid of the future needs an upgrade to become
smarter and safer. The UK’s National Grid
2
is proposing a
substantial investment of up to £35 billion over the next
five years to March 2031 to nearly double the amount
ofenergy that can be transported around the county,
whilst also creating an additional estimated 55,000 jobs.
In this dynamic landscape, several of Halma’s safety
companies play a crucial role by providing technologies
that safeguard the new infrastructure and protect the
growing number of people who run and maintain it daily.
One such company is our Sentric Safety Group, which
supports the energy transition across various sectors
through their trapped key interlock (TKI) solutions.
A trapped key interlock (TKI) is a safety device that
prevents unsecured access to unsafe locations by
trapping a key in one position until a specific action,
suchas isolating a hazard, is completed. Sentric’s TKIs
are fully customizable and can be integrated to meet
acustomer’s unique needs, ensuring the protection
ofpeople and the prevention of operational losses
anddamage. They are also highly durable and suitable
for industrial environments.
Sentric’s success with this product range lies in its
applicability across multiple industries, including various
renewable energy sectors, which represent an increasing
proportion of the company’s revenue. Notably, the
offshore and onshore wind energy market presents a
significant growth opportunity for Sentric. Wind energy is
the second fastest-growing sector in renewables globally
and is expected to almost double insize by 2030
3
.
Safety systems designed by Sentric create safe working
conditions for a turbine’s maintenance crew. Their TKI
ensures that once a worker has shut down an operation
for inspection, it cannot be restarted accidentally.
Thismeans maintenance crews can access the areas
they need to keep the turbine operational and know
theyare protected while doing their jobs.
The transferability of this technology is growing across
other sectors, including solar power, hydropower,
geothermal energy, and biomass energy, where the
mosthazardous risks, such as high voltage machinery,
working from heights, or confined environments,
canbecarefully controlled using bespoke strategies.
Beyond sustainable energy, Sentric is also supporting
other industries that will form part of a more sustainable
future. Two examples are railway safety, helping to keep
workers in the most hazardous parts of rail depots safe,
and waste and recycling facilities.
1 https://www.iea.org/reports/world-energy-employment-2024/
executive-summary
2 https://www.riiot3.nationalgrid.com/
3 https://www.iea.org/energy-system/renewables/wind
Governance Report Financial Statements Other InformationStrategic Report
Halma plc | Annual Report and Accounts 2025 57
Strategic Report
Support our people
Employee engagement
We monitor employee engagement and satisfaction
through annual employee surveys, and this marks our
ninth cycle. This year, we are using a new employee
listening tool, which integrates with our new unified
people platform. The survey questions have been
simplified but still measure the key drivers of employee
sentiment and engagement. The scoring system has
been changed to a Net Promoter Score, consistent
withcustomer satisfaction metrics.
This year we maintained a strong response rate of
83%and stable engagement score of 73%, which is a
1percentage point increase from last year.
3
The survey
feedback shows a consistent alignment with Halma’s
DNA across the Group, with high scores for collaboration
andmanagement support. It’s also pleasing to see that
people feel strongly that Halma and their company’s
values align with theirown, and that colleagues of all
backgrounds are welcomed. Both these engagement
drivers scored ahead of the industry benchmark.
See our Impact the Future Fund case study: 60
Key focus areas
– Diversity, equity & inclusion
Relevant SDGs
Key metrics
33%
Gender balance on
company boards
(Target: 40%–60% by 2030)
1
18%
Senior management from
under‑represented ethnic groups
(Target: 20% by 2027)
2
0.07
Accident frequency
(Target: annual 0.02)
Building a culture of inclusion and belonging
A workforce strengthened by many perspectives,
experiences, and backgrounds has been and will continue
to be critical to our success. Our commitment to building
inclusive businesses is not only a contributor to high
engagement but also yields wellbeing, productivity
andpositive morale.
For the past five years, we have been working towards
achieving 40-60% gender balance on our company
boards. We are pleased that our companies continue
tomake progress in this area, with our company boards
now comprising 33% women, up from 31% last year.
Thisis an improvement of 14 percentage points since
westarted tracking this metric in 2020.
At the executive level, we continue to grow the number
of women in senior leadership positions, with women
comprising 50% of Halma’s Board and 60% of the
Executive Board (as at 31 March 2025), far exceeding
theFTSE Women Leaders 40% recommendation.
Additionally, with Carole Cran becoming Group Chief
Financial Officer (CFO) in April this year, we now
havewomen in the three key roles of Chair, Senior
Independent Director, and Group CFO.
As a result of this long-standing commitment to gender
balance we have been awarded for a second year a
Balance in Business (BiB) Award in the Trailblazer Exco &
D/Rs FTSE 100 category. We have also been recognised
by BiB on its Roll of Honour celebrating previous award-
winning companies that continue to inspire and set a
benchmark for others to follow. This is an important
recognition, reminding us to continue building on this
momentum and ensure progress does not halt.
1 This includes companies that have been in the portfolio for longer than
threeyears as at 31 March 2025.
2 This is based on the Halma definition of ethnic diversity. See page 59.
3 The 1 percentage point increase is based on a revised prior year figure of 72%.
See page 30.
Sustainability continued
58 Halma plc | Annual Report and Accounts 2025
Through our flagship campaign for International
Women’s Day this year we highlighted how investing
inwomen’s health is crucial for creating a positive
impact on society, bridging the gender health gap,
andempowering women to take control of their health.
For Black History Month, we highlighted notable Black
individuals’ contributions in healthcare, safety, and the
environment. We are committed to amplifying voices
from diverse communities and increasing racial and
ethnic minority representation in leadership. We aim
for20% of senior management to be from under-
represented ethnic groups by December 2027. As at
31 March 2025, 18% of the Executive Board and their
direct reports are from under-represented ethnic groups,
an improvement from 17% in 2024. We count only those
who are ethnic minorities in their regions of operation.
In line with the Parker Review’s updated definition,
focusing solely on the Executive Board and their
UK-based direct reports, this percentage is 21%.
To enhance diversity and inclusivity, we used social
mediaand direct sourcing to reach a broader talent
pool. This resulted in more women and diverse hires
thanlast year, and remains a solid platform for
buildinga strong referral network for future talent.
We also continued supporting caregivers through our
gender-neutral parental leave, which enabled more than
200 new parents this year to look after their newborns,
and over 900 since 2020. Further, more of our companies
added flexible work options for better work-life balance.
Navtech now offers hybrid working and compressed
work weeks, while Apollo allows employees to buy
additional leave as part of their growing suite of benefits.
Gender Pay Gap
For the fifth year 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 further reduction of themean
(average) pay gap to 12.1% as at 31 March 2025, from the
31 March 2024 figure of 15.7%. We are also encouraged
tosee the steady year-on-year reduction from 25.9% in
2021, when we started publishing this figure, which is real
evidence of a progression in culture across the UK and US
employee base. Despite this progress, we acknowledge
there is still work to do.
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.
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 2025.
4 Mean Gender Pay Gap for all US and UK employees. Rounded to whole percentage numbers.
Our gender diversity
Figures at 31 March 2025
Men Women
Board of Directors
1
Senior Management
2
Other employees
50%
5
50%
5
31%
70
69%
158
59%
5,333
41%
3,715
% Women on plc and Executive Boards % Women on company boards
3
Gender pay gap
4
29%
31%
42% 42%
54%
61%
59%
56%
50%
56%
2025202420232022202120202019201820172016
22%
26%
29%
31%
33%
20252024202320222021
26%
20%
18%
16%
12%
20252024202320222021
Halma plc | Annual Report and Accounts 2025 59
Governance Report Financial Statements Other InformationStrategic Report
A key to maintaining high employee motivation and
engagement is purpose-driven work. Our commitment
to addressing global challenges attracts top talent
eagerto be part of the solution, and working at
Halmaprovides that opportunity. Giving back to our
communities is another way we energise and empower
our people to do meaningful work. Our companies
regularly support their communities through tailored
initiatives and this year, we’re amplifying this through
thelaunch of ourImpact the Future Fund.
This new initiative builds on previous global fundraising
campaigns, Gift of Sight and Water for Life, aiming to
boost employee engagement and support communities
around the world driven by the passion ofour people.
Ourcompanies choose local non-profit partners and
apply for annual grants to support causes they care
about. They must offer support through technology,
people, or skills and show they can build long-term
relationships, creating value for both our companies
andHalma. 75% of our companies and Hubsin China
and India are participating withthe potential to
positively impact dozens of communities globally
inthecoming year.
Impact the Future Fund
Case study
Sustainability continued
60 Halma plc | Annual Report and Accounts 2025
Fostering employee wellbeing
A critical part of building a healthier, more resilient
workforce is ensuring they’re safe physically, emotionally
and mentally. In 2024 we offered webinars and resources
to help staff manage these increasingly vital concerns
and break stigma. During World Mental Health Day,
wehosted an online seminar “Healthy Minds at Work”
inpartnership with our Employee Assistance Programme.
In the UK, we used the YuLife app to encourage exercise
and mindfulness through friendly competition. Winners
received yearly wellness coaching subscriptions further
reinforcing healthy habits, which have steadily increased
since its launch in 2024, with mindfulness being the
largest increase. Walking is also an improved habit with
the current step count for those participating being 87%
above the NHS UK national average.
China began offering weekly exercise classes and
recreational programs at Shanghai Family Park to
cultivate social connection. Halma India supported
physical, mental, and financial wellness through
knowledge webinars, live sessions, and team-building
activities. It also launched an annual health check-up
benefiting over 250 employees across the region.
Thiscontinued emphasis on nurturing a healthy
workforce and people-focused policies and programmes,
has earned Halma India a Great Place to Work
®
designation for a second consecutive year. Additionally,
in the 2026 financial year, the region will introduce a
flexible platform that offers personalised employee
benefits designed toenhance overall employee wellbeing.
During the 2025 financial year, we introduced a medical
benefit improvement for our US employees – Mercer
Health Advantage – that offers additional support for
some of our most vulnerable cases. Under this solution,
medical care high-risk cases are supported by a
cross-functional team with diverse expertise, to ensure
increased employee care and the improvement of
employees’ health outcomes.
We continue to ensure that all our UK companies pay a
Real Living Wage as set by the Living Wage Foundation.
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 0.07.
While it is relatively low, it is higher than last year and
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 2025 or in prior years and
details of the number of days lost to preventable work
injuries during the year and the prior four years are set out
in the graph. In line with the increase in the AFR, the days
lost to preventable work injuries has increased by 89 days.
Promoting career development
and advancement opportunities
We strive to cultivate leaders in our decentralised model,
build high-performing inclusive businesses, and create
promotion opportunities within the Group. During the
year, 230 leaders participated in leadership development
programmes, which included over 100 days of face-to-
face sessions and individual coaching for more than 100
leaders. Mentoring was encouraged with over 70 active
mentors involved in developing others. Additionally, over
500 people are actively engaged on online platforms
forblended learning, with on-the-job experiences being
increasingly introduced to the programmes.
Our focus on nurturing leaders has led to eight
promotions onto company boards this year, including
two Managing Directors who were formerly participants
in our Catalyst graduate scheme. Recognising the
success and growing demand for our programmes,
wewill increase investment in leadership development
byintroducing three new programmes in 2026.
Our Catalyst programme focused on early careers
alsocontinues to cultivate young talent and the next
generation of business leaders. We’re proud that at
31 March 2025, there were 10 former Catalysts sitting
oncompany boards. In the current cohort, 50% are
women and36% are from an ethnically diverse
background, reflecting our commitment to diversity
across all levels ofthe organisation.
Our suppliers
Our companies consistently engage with their
primarysuppliers through activities such as audits,
andencourage adherence to the high ethical standards
outlined in our Code of Conduct. We anticipate greater
sustainability-related supplier engagement from our
companies as they begin identifying and implementing
their Scope 3 decarbonisation actions and work towards
compliance with EU due diligence regulations which will
affect the Group in the medium-term.
In addition, during the year, we have conducted a
deepdive assessment of our labour and human rights
exposure as well as biodiversity and water scarcity
risksinour operations and supply chain as part of
ongoing monitoring of our emerging risk landscape.
Theassessment indicated that inherent risks relating
tothese areas remain below our principal risk thresholds,
however, we will continue to monitor them as part of
ouremerging risk landscape and expand the assessment
as part of our preparations for CSRD reporting.
Read more about how we engage with
suppliers in the Stakeholders section: 51
219
Days lost to preventable
work injuries
42
171
455
130
219
20252024202320222021
Halma plc | Annual Report and Accounts 2025 61
Governance Report Financial Statements Other InformationStrategic Report
Protect our environment
Protecting 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. Our requirement
for Halma companies to maintain a Sustainability Action
Plan (SAP) is key to how we make progress in this area.
These SAPs include goals and actions that vary based on
the size and maturity of our companies, and are largely
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.
– Engaging with sustainable product design
and Scope 3 decarbonisation.
– Engaging with supply chains on both environmental
and wider social matters.
Our companies recognise the ethical and environmental
benefits of more environmentally sustainable operations
and value chains. However, they increasingly find this
work helps to lower operating costs as well as helping
tomeet their customers’ changing environmental
expectations.
Making progress against these goals can be a particular
challenge within Halma’s unique model. This is due to
thediversity of our products and services, alongside the
fact that each company manages its own supply chains
and operations.
Key focus areas
– Sustainable product design
– Reducing emissions
Relevant SDGs
Key metrics
64%
Scope 1 & 2 reduction
from 2020 baseline
(Target: 42% by 2030
and net zero by 2040)
86%
Renewable electricity
(Target: 80% by 2025)
26%
Energy productivity
improvement from 2022 baseline
(Target: cumulative 12% by 2025)
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 88 of our TCFD Statement.
Reducing operational emissions
We are committed to reducing our operational
emissions and impacts and are pleased that we have
continued to see reductions in our Scope 1 & 2 emissions
this year. In addition, we are delighted to have exceeded
our 2025 renewable electricity target of 80%. We expect
all of our companies to consider how they will continue
to reduce Scope 1 & 2 emissions, particularly through
switching to renewable electricity and increasing energy
productivity, in their SAPs.
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 89 and in our more detailed Sustainability Review
available at www.halma.com.
Sustainability continued
62 Halma plc | Annual Report and Accounts 2025
Scope 3 and sustainable design
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
think beyond this through activities such as sustainable
design, supply chain engagement, and climate-related
opportunities that support their customers’ transitions.
Our disclosures against the TCFD recommendations
(pages 79 to 91) give an overview of our key sources
ofScope 3 emissions, our new target to reduce Scope 3
emissions intensity by 66% from 2025 to 2035, 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 and environmental impacts. 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 wider impacts – and many of our companies are
already taking action. Further examples of action
underway can be found in the Sustainability Review
atwww.halma.com.
For more information on other environmental matters,
including supply chain engagement, please see:
Stakeholders section: 48
Non‑financial & sustainability information statement: 64
ESG Data Supplement (including SASB disclosures): www.halma.com
Our sustainable
design principles
Sustainable design is an important aspect of our
sustainability approach at Halma and we encourage
our companies to consider sustainable design
principles throughout their diverse range of product
portfolios. Seeking sustainable design opportunities
is a key aspect of our bottom-up Scope 3
decarbonisation process.
The five sustainable design principles that we
educate our companies about are shown below,
followed by some examples of how Halma
companies have applied them:
Nuvonic designs and manufactures UV lamps and
systems for water treatment. Applying the ‘design
forenergy efficiency’ principle, they have developed
an active strategy to shift their product portfolio
to low pressure amalgam lamps, which are twice
as efficient as the medium pressure alternative,
with a longer lifespan.
Applying the ‘select more sustainable materials’
principle, Suntech has redesigned the packaging
for their Vet40 blood pressure monitors to eliminate
the need for foam inserts through the introduction
ofinnovative single cardboard baffles.
Apollo, a UK manufacturer of fire detectors,
has applied the ‘design out waste/materials’ principle
by optimising the shape and reducing the size and
associated waste of printed circuit boards in a key
product range.
1. Design for
energy efficiency
2. Design out
waste/materials
3. Select more
sustainable materials
5. Design for
infinity recycling
4. Design for
lifetime extension
Halma plc | Annual Report and Accounts 2025 63
Governance Report Financial Statements Other InformationStrategic Report
Non-financial & sustainability information statement
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 24
and 25 and stakeholder engagement information can be found on pages 48 to 53.
Policies Due diligence, implementation and outcomes
Environmental and climate
Environmental Policy
1
and
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
starting on page 79 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. For 2025,
theestimate was 19% of sites, contributing 29% of revenue (2023: 20% sites, 24% revenue).
More information on our programmes to reduce our environmental impact and data is available
inthe Sustainability section starting on page 54 and on our website.
Our assessment of and response to climate‑related risks and opportunities can be found in our
TCFD Statement on pages 79 to 91.
Risk:
– Production interruption – page 75
Non-financial KPIs:
– Reduction in Scope 1 & 2 emissions – page 30
Anti-bribery and corruption
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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 1,150 employees completed
anti‑bribery and corruption training during the year ended 31 March 2025.
Risk:
– Non‑compliance with Laws and Regulations – page 76
64 Halma plc | Annual Report and Accounts 2025
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.
Our group‑wide Whistleblowing
Policy
2,3
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 2025 over 1,400 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. For 2025, the estimate was 16% of sites, contributing
19% of revenue (2023: 17% sites, 17% 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 58 and in our ESG data supplement, available at www.halma.com.
Risk:
– Talent and Diversity – page 72
Non-financial KPIs:
– Accident Frequency Rate – page 30
– Employee Engagement % – page 30
– Company board gender balance – page 31
Halma plc | Annual Report and Accounts 2025 65
Governance Report Financial Statements Other InformationStrategic Report
Non-financial & sustainability information statement continued
Policies Due diligence, implementation and outcomes
Social
Our group‑wide Data Protection
Policy
1
and Guidance 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.
Competition Law Policy
1
isapplicable to all employees.
Conflict Minerals Policy
1
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 350 employees completed competition law training
during the year ended 31 March 2025.
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. We do not collate 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 either an ISO 9001 quality
management accreditation or an ISO 13485 certificate (specific to medical devices). For 2025,
theestimate was 67% of sites, contributing 75% of revenue (2023: 62% sites, 75% of revenue).
Further information on the positive role we play in society can be found in the following sections
ofthis Report.
– Sustainability – page 54
– Business reviews – page 36
66 Halma plc | Annual Report and Accounts 2025
Policies Due diligence, implementation and outcomes
Human rights
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.
Our 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 450 employees
have completed this training during the year ended 31 March 2025. 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. As part of our wider project to build towards compliance
with medium‑term EU due diligence regulations, we are currently assessing more “fit for purpose”
tools and processes for supply chain engagement.
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 76
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.
Halma plc | Annual Report and Accounts 2025 67
Governance Report Financial Statements Other InformationStrategic Report
Risk management and principal risks
Effective risk management
isintegral to Halma’s purpose
andlong-term growth strategy.
Itenables us to seize opportunities,
protect value, and maintain
resilience across our global
portfolio of companies.
While a consistent group-wide risk framework
underpins our approach, our decentralised model
empowers individual companies and employees to
identify, assess, and respond to risks and opportunities
locally and in realtime. Risk awareness is embedded
inour culture, enabling informed and agile
decision-making. This supports innovation, underpins
our sustainable growth strategy, and helps us deliver
on our purpose: a safer, cleaner, healthier future
foreveryone, every day.
Managing risk and leveraging opportunities
toachieve our sustainable growth strategy
Our approach to risk management
Our risk management approach is designed to support
Halma’s long-term success by enabling informed and
forward-looking decision-making. It reflects the distinct
characteristics of our Group and the environment in
which we operate:
– Decentralised and ownership-driven:
Riskmanagement is owned locally, embedded within
each business and function. This ensures risks are
identified and addressed closest to where they arise,
enabling faster response and stronger accountability.
– Opportunity-focused: We look at risk through a dual
lens of mitigation and opportunity. This encourages
abalanced perspective, allowing our teams to take
well-judged risks that support innovation and
sustainable growth.
– Purpose-led and value-aligned: Our framework is
anchored in Halma’s purpose and long-term strategy.
This alignment helps us prioritise the risks and
opportunities that are most relevant to the delivery
ofour strategy and to the future of the Group.
– Evolving and resilient: We continuously adapt our risk
processes to reflect changing conditions and emerging
challenges. This makes our framework resilient and
forward-looking, ensuring we are prepared for both
today’s and tomorrow’s risks.
– Comprehensive and integrated: All risk types,
including strategic, operational, financial, regulatory
and sustainability-related, are managed through a
single, connected framework. This integrated view
improves consistency, reduces duplication, and enables
smarter and faster decision-making.
– Agile and insight-led: We take a flexible approach to
the process, focusing on the quality of risk discussions.
This agility allows us to adapt quickly, while meaningful
conversations, especially those enriched by diverse
perspectives, lead to deeper insight, more balanced
risk assessment, and better decision-making.
68 Halma plc | Annual Report and Accounts 2025
Board
Sets the risk appetite and has overall responsibility for risk/opportunities and for mitigating risks/leveraging
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
Formore details on the role and responsibility of the Board and its Committees, refer to the Corporate Governance Report.
Corporate Governance Report: 93
Governance & culture, delegation, resources,
oversight, communication
Accountability, performance & reporting
Management/Group
oversight, IA&A,
External Audit
Monitoring and
reporting
Information &
communication
Policies procedures
andguidance
Control activities
Risk/
Opportunities
assessment
Risk
appetite
Risk &
Opportunities
Assurance
Control
Environment
Our risk and control governance framework
Halma plc | Annual Report and Accounts 2025 69
Governance Report Financial Statements Other InformationStrategic Report
Risk management and principal risks continued
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.
Risk appetite
Our risk appetite framework guides decision-making across the Group by setting out the level of risk we arewilling
toaccept in pursuit of our strategic goals. Wedefine appetite across four categories:
These appetite levels are reviewed and approved by the Board and for each principal risk the suitable level of
riskappetite is identified. Each principal risk is assessed annually against them to determine whether additional
mitigation actions are required.
Risk assessment process
Risk identification and assessment
Each year, as part of their strategic planning cycle,
everyHalma company identifies and assesses key risks
and opportunities which are captured in the companies’
riskregisters. This includes evaluating the likelihood and
potential impact of each risk, reviewing the effectiveness
of existing mitigations, and determining whether further
actions are needed. A similar process takes place at
sector and Group level, forming the basis of our
bottom-up risk assessment.
This is complemented by a top-down review led by
theExecutive Board, which focuses on our group-wide
principal and emerging risks. This includes integrating
insights from the bottom-up risk assessments, the
annual emerging risks review, and broader strategic
input from the Executive Board. The assessment of
theprincipal risks, the risk appetite, mitigating actions
and the evaluation of potential emerging risks are
reviewed and approved by the Board.
Risk mitigations and internal controls
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. Following the publication
oftheUK Corporate Governance Code 2024, 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.
Deep-dive risk analysis
To complement the bottom-up and top-down approach,
during the year, deep-dive risk analyses are performed
onspecific areas to assist the Executive Board in their
strategic decision-making and to perform a detailed
review on specific principal risks. For example, this year,
the Executive Board performed deep-dives onthe
“Innovation” and the “Acquisitions and portfolio
management” principal risks to review in detail key
riskelements, the effectiveness ofthe risk mitigating
measures and assess whether any further risk mitigation
was needed. The risk deep dives and their outcomes are
integrated into the wider risk management approach
and process.
Emerging risks
Identifying and managing emerging risks is a well-
established part of our risk management framework
andday to day business operations. This ongoing focus
helps us stay ahead of change and ensure our strategy
remains resilient and future ready. In addition to the day
to day management of such risks, our approach includes
a structured assessment of the emerging risk landscape
across three time horizons:
– Short-term (0 to 3 years). Emerging risks currently
under observation in the short-term horizon include
thepace of technological change driven by AI and the
tightening regulation on data and artificial intelligence.
– Medium-term (3 to 10 years). Examples of medium-
term emerging risks are social cohesion pressures
andincreasing ESG expectations from stakeholder.
See also our TCFD Statement: 79
– Long-term (10+ years). An example of a long-term
emerging risk is quantum computing.
70 Halma plc | Annual Report and Accounts 2025
Our risk profile and principal risks
The visual below presents Halma’s current risk profile, illustrating the risk type associated with each of our principal
risks, their residual risk level and evolutions during the year. This profile forms a key input into our scenario analysis,
including the modelling that underpins our Viability statement.
For further detail, refer to our Viability statement: 92
During the year, no new principal risks were identified. However, there were minor evolutions in the existing
principal risks, which are detailed in the following section. All principal risks remain within the risk appetite levels
set and approved by the Board.
Halma’s risk profile
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 Portfolio management*
06 Production Interruption*
07 Organic Growth
08 Non-compliance with Laws and Regulations
09 Business Model and its Communication
10 Product Failure or Non-compliance
11 Liquidity
12 Financial and Reporting Controls*
02
05
03
07
09
10
11
12
01
08
Very low risk
High risk
Very high risk
Medium risk
Low risk
04
06
06
* The scope and title of a few risks were refined during the year,
asfollows:
05 “Acquisitions & Portfolio management” was previously
“Acquisitions&Investments”.
06 “Production Interruption” was previously “Natural hazards,
includingclimate change”. Risk rating adjusted accordingly.
12 “Financial and Reporting Controls” was previously
“Financialcontrols”.
Further explanations on these evolutions are provided
inthedetaileddescriptions of the principal risks: 72–78
While none of these risks currently meet the criteria to be
classified as a new principal risk, we continue to monitor
their potential to evolve and their potential impact over
time. As these risks evolve, we may conduct deep dives
to enhance our understanding and, where appropriate,
adapt our approach to strengthen mitigation measures.
We will continue to reassess these risks at least annually
as part of our risk processes.
Board and Audit Committee oversight
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. Inparallel, the
Audit Committee is responsible for reviewing the overall
effectiveness of the risk management and internal control
processes, providing independent oversight and challenge.
See also our Governance Report at page 100.
This process is well embedded in our annual risk cycle
and draws on multiple inputs, including:
– Risk themes identified through our bottom-up
assessments at company and sector levels.
– Insights from global external risk experts and
thoughtleaders.
– Strategic perspectives from the Executive Board
onlonger-term trends and uncertainties.
To ensure strong accountability, each emerging risk
isassigned an Executive Board owner responsible for
overseeing their evolution and implement appropriate
risk mitigation strategies where appropriate.
Halma plc | Annual Report and Accounts 2025 71
Governance Report Financial Statements Other InformationStrategic Report
Risk management and principal risks continued
01. Talent and Diversity
Risk Owner:
Chief Talent, Culture and
Communications Executive
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 30 and 31.
Risk evolution
The inherent risk score increased
fromhigh to very high due to potential
higher impact from succession planning
in ourgrowing larger companies.
However,this area has been a clear
focus, and succession planning has
been strengthened across larger
businesses, helping to mitigate the
inherent risk.
As a result, the overall residual risk level
remains consistent with the prior year.
How do we manage the risk?
We have robust recruitment processes in place to attract
toptalent, including our Catalyst programme to develop
graduates for future leadership roles. The Group also supports
Sectors and Companies in identifying diverse candidates for
board-level positions.
A defined competency and potential model guides the
selection and assessment of leaders, focusing on alignment
with Halma’s Cultural DNA and key technical skills such as
sustainability, digital, legal, and finance. Tailored onboarding
plans are provided for company board-level roles and above.
Senior Management reward structures are aligned with
companies, sectors, and Group strategic priorities, including
DEI targets. Packages are periodically reviewed to ensure
competitiveness, market alignment, and support for
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,
toensure that we have highly effective and motivated
leaderstodeliver our strategy.
An annual employee engagement survey provides insight
intosentiment and alignment with strategy, helping to
ensureclarity of purpose and continuous improvement
acrossthe organisation.
For more information, see the“Talent & Culture
review”onpage 16.
Type of risk
Strategic
Operational
Legal & Regulatory
Financial
Very high Very low
72 Halma plc | Annual Report and Accounts 2025
02. Innovation
Risk Owner:
Group Chief Executive
Inherent risk level:
Residual risk level:
Residual risk change:
=
No change
Risk appetite: Seeking
Risk and impact
Inability to provide new high-quality
solutions or to innovate our business
models to meet customer needs whilst
capturing digital and sustainability
growth opportunities, 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 29.
Risk evolution
Risk remains consistent with the prior
year. However, the risk description
wasbroadened, from being narrowly
focused on “products” only, to the
widerconcept of innovation which
includes “solutions and business
modelinnovation”.
How do we manage the risk?
Regular strategic and financial reviews ensure alignment
withniche-focused growth and resilience. Lessons from past
performance guide decisions, with a focus on niche clarity
and risk mitigation through portfolio diversity.
Companies operate with autonomy, staying close
tocustomers to identify needs and pursue innovation.
Product development and innovation sit with companies,
supported bysector guidance.
Companies’ boards define and review business strategies with
DCE and sector oversight. Strategies are regularly challenged
to maintain focus on niche positioning and balance between
new product development and continuous innovation.
Ongoing R&D investment is tracked via Board-level KPIs.
IPisprotected where it adds value. Sectors review
R&Dbudgets and project pipelines through structured
processes, including Capitalised Development Costs (CDCs)
stage-gatereviews.
Sector-led M&A support innovation and R&D.
Focus on attracting and retaining talent to drive innovation,
IP protection, and niche leadership, including strategic
marketing expertise.
The Group Tech team and a functional network of companies’
technical leaders share best practices and offer guidance on
emerging tech and digital trends.
03. Economic and Geopolitical Uncertainty
Risk Owner:
Group Chief Executive
Inherent risk level:
Residual risk level:
Residual risk change:
=
No change
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 macroeconomic
environment remained challenging,
marked by ongoing geopolitical
complexities and rapid change
intradepolicies. Halma has very
limiteddirect exposure to regions with
high geopolitical risk. Its companies,
operations, and supply chains are
geographically diversified, supporting
resilience to macroeconomic changes
through the Group’s agile model and
balanced portfolio.
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 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 70.
– Monitoring of end market exposure and changes in key
endmarkets due to macroeconomic factors.
– Review of financial KPIs for early warning signs, with
half-yearly assessments of goodwill and asset valuations.
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 Divisional Chief Executives (DCEs) to navigate
geopolitical changes. 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 2025 73
Governance Report Financial Statements Other InformationStrategic Report
Risk management and principal risks continued
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the continuous delivery of
enhancements in the control framework.
How do we manage the risk?
A group-wide IT framework is in place, regularly reviewed,
andincludes cyber risk policies, procedures, and guidance.
Allemployees are required to comply with the IT Acceptable
Use Policy and complete regular online IT awareness training.
Central and local IT teams maintain and share up-to-date
technical knowledge to support ongoing resilience.
Companies confirm the effectiveness of their most critical IT
controls (including documented and tested disaster recovery
plans for key systems and infrastructure) every six months
through the Internal Control Certification process. These
controls are periodically and independently tested by the
Internal Audit & Assurance Team.
The Chief Technology Officer provides regular updates to the
Board and Audit Committee on key risks and developments
inthe Group’s IT and cyber risk approach.
The Group Tech 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,
e-mail scanning, penetration testing, vulnerability
management, and a 24x7 security operation centre
tomonitor and respond to cyber incidents.
Group-wide Incident Management and Crisis Plans are in
place, with access to global external cyber expertise should
anattack occur.
05. Acquisitions and Portfolio management
Risk Owner:
Group Chief Executive
Inherent risk level:
Residual risk level:
Residual risk change:
=
No change
Risk appetite: Open
Risk and impact
Failing to achieve our strategic growth
and returns targets for acquisitions, or
toreassess and align the portfolio with
evolving strategic priorities, resulting
inerosion of shareholder value.
For more information on our inorganic
growth target, see the “Acquisition
profit growth” KPI in on page 28.
Risk evolution
No significant changes in risk factors
have been identified at both inherent
and residual risk levels during the year.
However, the risk description has been
updated to capture the “portfolio
management” element which is a key
component of our acquisition strategy.
Halma’s inorganic strategy continues
tobe focused on the long-term time
horizon and targets not-for-sale
businesses. We continue to invest in
ourinternal processes and capabilities,
which result in increased effectiveness
in managing the acquisition 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.
We pursue acquisitions of niche innovators with long-term
growth potential and strong alignment with Halma’s
valuesand purpose. Our portfolio management approach
ensures continued strategic fit and diversification across
ourbusinesses.
DCEs are accountable for the full acquisition lifecycle and
supported by sector M&A Directors. Their deep market
expertise, combined with internal and external insights,
buildsa high-quality acquisition funnel.
Talent is incentivised across both organic and inorganic
growth, reinforcing our agile and values-led culture.
Our risk-based M&A process includes thorough due diligence,
standardised tools, and structured integration plans focused
on innovation and value creation.
We embed continuous improvement through a lesson learned
framework, including post-acquisition reviews and regular
cross-sector sharing. The Executive Board is engaged on
thematic insights and strategic outcomes.
For more information on acquisitions made during the year,
seethe“Business reviews”atpage 36.
Type of risk
Strategic
Operational
Legal & Regulatory
Financial
Very high Very low
74 Halma plc | Annual Report and Accounts 2025
06. Production Interruption
Risk Owner:
Group Chief Executive
Inherent risk level:
Residual risk level:
Residual risk change:
+
Increase
Risk rating adjusted to
reflect broadened scope
which now includes
allcauses of production
interruption.
Risk appetite: Averse
Risk and impact
Inability to produce, causing financial
loss and reputational damage.
Thisriskincludes disruptions to our
ownproduction operations and supply
chains due to both climate-related
(egnatural catastrophe) and
non-climate-related causes
(egpoweroutage, logistic failures).
Risk evolution
This principal risk was previously focused
on “Natural Hazard, including climate
change”. However, it has been
broadened to “Production Interruption”
to cover potential disruptions to our
operations and supply chains due to
both climate-related and non-climate-
related causes. The inherent and
residual risk rating and the risk
ownership were adjusted accordingly.
How do we manage the risk?
Halma’s diversified portfolio, combined with its companies
operating across varied geographies and end markets,
reduces exposure to single-event impacts and supports
resilience against production interruptions, whether driven
byclimate-related risks or other disruptive events, such as
supply chain disruptions.
The agility of our companies, together with the capabilities
ofour talent, enables proactive management of production
and supply chain risks, allowing them to respond swiftly and
effectively to evolving challenges.
Companies are required to maintain and periodically test
business continuity and disaster recovery plans, tailored to
their specific risk profiles. Where needed, manufacturing
capabilities across the Group can be leveraged to support
affected businesses.
The Group also maintains crisis communication protocols and
property and business interruption insurance to help mitigate
potential impacts.
Climate-related risks and opportunities are reviewed through
established governance processes, and we continue to support
our companies in strengthening supply chain resilience.
More information on climate-related risks is
available in the TCFD Statement on page 79.
07. 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.
For more information on our organic
growth target, see the “Organic
revenue growth” and “Organic profit
growth” KPIs at page 27.
Risk evolution
While there may be some variability
inthe achievement of organic growth
targets across individual companies,
the Group’s diversified portfolio and
proactive portfolio management
continue to mitigate this risk,
maintaining it at a low residual level.
How do we manage the risk?
Halma has a clear Group strategy to drive growth through
theorganic expansion of its companies, supported by the
Halma Growth Enablers and the Halma DNA. Remuneration
of companies’ Board directors and above is aligned with
profitgrowth to reinforce this objective.
Companies focus on building agile business models and
fostering a culture of innovation to capture new growth
opportunities in their markets. Their strategies are reviewed
and challenged by sector boards to ensure alignment with
market opportunities, long term growth drivers, Group
priorities and organic growth targets. Talent development
remains a key enabler of successful execution.
Sector management ensures that the Group strategy is
fulfilled through ongoing review and chairing of companies.
Regional hubs, such as those in China and India, support
localgrowth initiatives. Potential new partnerships and
investments are comprehensively assessed for future organic
growth prospects.
At Group level, the annual strategic plan, budget, and
monthly 12-month rolling forecast provide visibility into the
delivery of the organic growth strategy, enabling financial
discipline and performance monitoring. The Executive Board
holds regular meetings with DCEs to align on strategy
andexecution.
Halma plc | Annual Report and Accounts 2025 75
Governance Report Financial Statements Other InformationStrategic Report
Risk management and principal risks continued
08. Non-compliance with Laws and Regulations
Risk Owner:
Group General Counsel
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.
How do we manage the risk?
A comprehensive legal compliance framework is in place and
regularly reviewed. It includes the Halma Code of Conduct,
Group policies, procedures, guidance, and training, outlining
our compliance and regulatory expectations and providing
resources and support to facilitate compliance. All employees
are required to confirm they have read and understood the
Code of Conduct.
The Group Legal & Compliance Team advises on legal and
regulatory developments relevant to Halma as a listed
company. Together with external legal advisors, they support
sectors and companies in managing legal compliance risks,
including during due diligence.
Companies certify the effectiveness of key legal compliance
controls every six months through the Internal Control
Certification process, with independent testing carried out
bythe Internal Audit & Assurance Team. A whistleblowing
hotline is available to employees and third parties, with all
reports independently investigated.
Each company’s board is responsible for complying with
relevant laws and managing legal risks, including emerging
legislation. Legal claims and litigation risks are reported
totheGroup every six months, with the General Counsel
overseeing material legal issues. These are reviewed quarterly
by the Board, and the Audit Committee receives regular
updates on compliance insights and process effectiveness.
Appropriate Group insurance coverage is maintained,
andacrisis management plan is in place to manage
reputational risk.
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companies grow through exploring
andimplementing additional or new
business models, resulting in missed
growth opportunities and erosion
ofshareholder value.
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 preserve 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 19.
The Sector and Executive Boards regularly review the model
toidentify opportunities that may require new or evolved
organisational approaches. These reviews are informed
bypast experience and driven by a commitment to
continuous innovation and scalable growth in a changing
global environment.
The Board also conducts periodic strategic reviews to assess
the model’s strengths and weaknesses and determine
whether adjustments are needed.
A clear communication strategy ensures the business model
iswell understood both internally and externally. Regular
updates are shared across Group, sector, and company
boards throughout the year, and the model is embedded
inrecruitment and onboarding processes. This consistent
communication supports the successful execution of Halma’s
sustainable growth strategy.
Type of risk
Strategic
Operational
Legal & Regulatory
Financial
Very high Very low
76 Halma plc | Annual Report and Accounts 2025
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 or
reputational damage, which might be
amplified in cases of large contracts.
Risk evolution
No significant changes in risk factors
have been identified at both inherent
and residual risk levels during the
year.Key quality and compliance
requirements continue to be closely
monitored by our companies. Product
quality controls and oversight controls
significantly reduce the likelihood of
ahigh-impact product-related issue.
How do we manage the risk?
Our companies design, manufacture, and assemble a diverse
range of products across multiple geographies and end
markets. As experts in their fields, they are responsible for
ensuring compliance with all applicable product safety and
quality standards, certifications, and accreditations.
To meet high-quality expectations, Halma companies
implement tailored control frameworks that may include:
– Rigorous product development and testing procedures.
– Clear requirements for suppliers to ensure safety
andquality.
– Incoming product quality checks.
– Monitoring of defects and warranty returns.
– Product traceability systems.
– ISO 9001 certification, where applicable.
– Quality and compliance assessments during acquisition
duediligence.
– Ensuring employees are appropriately trained in
quality-related skills.
Sector boards have oversight over product compliance,
issuereporting and escalation processes.
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 at page 29.
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, this year the Group has
extended the life 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 212.
How do we manage the risk?
A clear liquidity management strategy is a core pillar
oftheHalma financial model.
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.
Halma plc | Annual Report and Accounts 2025 77
Governance Report Financial Statements Other InformationStrategic Report
Risk management and principal risks continued
12. Financial and Reporting 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 and reporting
controls either on its own or via a fraud
which takes advantage of a weakness,
resulting in financial loss and/or
misstated reported results.
Risk evolution
The scope of this risk was broadened
from “financial controls” to “financial &
reporting controls” to better reflect the
Group’s obligation to report qualitatively
and quantitatively. In line with the prior
year, no significant risk factors have
been identified at both inherent and
residual risk levels during the year.
How do we manage the risk?
Group policies, procedures, and guidance set out the Group’s
requirements for both financial and reporting controls.
Eachcompany confirms the effectiveness of its most critical
controls (including segregation of duties, delegation of
authority, and financial account reconciliations) every six
months through the Internal Control Certification process.
These controls are also periodically and independently tested
by the Internal Audit & Assurance Team.
Sector and Group finance teams carry out regular reviews
offinancial reporting and related outputs. In addition,
six-monthly peer reviews of reported results for each company
provide an independent challenge and support greater
consistency and rigour in reporting across the Group.
We provide ongoing training to finance personnel, including
the finance teams of newly acquired companies, on Halma’s
policies and its financial and reporting control framework.
Companies’ directors have legal and operational
responsibilities as they are statutory directors of their
companies. This reinforces local accountability within
Halma’sdecentralised model and supports the effectiveness
of the financial and reporting control environment at every
level of the Group.
Type of risk
Strategic
Operational
Legal & Regulatory
Financial
Very high Very low
78 Halma plc | Annual Report and Accounts 2025
TCFD 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 UK 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.
TCFD Recommendation Recommended Disclosure
Governance
See where we have complied: 80
a) Describe the Board’s oversight of climate-related risks and opportunities.
b) Describe management’s role in assessing and managing climate-related
risks andopportunities.
Risk Management
See where we have complied: 82
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.
Strategy
See where we have complied: 84
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.
c) Describe the resilience of the organisation’s strategy, taking into
consideration different climate-related scenarios including a 2°C
orlowertemperature scenario.
Metrics and Targets
See where we have complied: 89
a) Disclose the metrics used by the organisation to assess climate-related risks
and opportunities in line with its strategy and risk management process.
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.
Halma plc | Annual Report and Accounts 2025 79
Governance Report Financial Statements Other InformationStrategic Report
TCFD statement continued
Governance
Full details of our Board and management structure, including the connections between the
managementstructure and the Board governance structure, are set out in the following sections:
How we are governed: 100
Sustainability Governance: 55
Roles and responsibilities
Climate-related matters are integrated into our overall governance structure,
with roles and responsibilities defined as outlined below.
CSO
Chief Sustainability Officer oversees climate and sustainability matters across the indicated governance bodies.
1 Informal governance body.
The Board
Sets Group strategy (including climate and sustainability),
sets climate-related risk appetite, approves climate-related
disclosures and targets.
Sustainability
function
Responsible for
communication
and execution of
the Group’s climate
and sustainability
strategy.
CSO
Audit Committee
Oversees the integrity
of the Group’s external
reporting, including integrity
of the framework in place
for TCFD reporting.
Remuneration Committee
Responsible for
climate-related targets in
executive remuneration.
Executive Board and CEO
Responsible for formulating sustainability (including climate) strategy for
review and approval by the Board. Responsible for operationalising and
delivering that strategy, including decision-making related to the Group’s
climate-related risks, opportunities and targets.
Chief Sustainability Officer
Primary responsibility
for our sustainability activities.
Sector Boards
Review, monitor and manage sector level climate-related risks and
opportunities. Each sector board includes Divisional Chief Executives
that provide a pivotal link between the companies, sectors and
Executive Board for climate-related matters.
Company Boards
Assess, monitor and manage company level climate-related risks and
opportunities, ongoing management of Sustainability Action Plans (SAPs)
and actively identify and pursue climate-related opportunities
as part of the annual strategic planning cycle.
Sustainability
Risk and Reporting
Steering Group
1
Responsible for
influencing and
guidingdecisions
in preparing for and
complying with
sustainability reporting
requirements.
CSO
80 Halma plc | Annual Report and Accounts 2025
The Board
The Board has ultimate oversight of and responsibility
forclimate-related opportunities and risks and is highly
engaged on this topic. The Board regularly reviews,
ataminimum on an annual basis:
– 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;
– any additional information on climate-related
opportunities and risks for relevant standalone
acquisition opportunities; and
– any new or amended climate-related targets.
Sustainability-related matters were a recurring agenda
item for the Board in 2025, being reviewed during at
least half of its scheduled meetings. The Board also
receives annual progress updates on climate change
actions and targets. During 2025, the Board approved
the adoption of our 2035 interim Scope 3 reduction
target, as set out in Metric and Targets.
Metric and Targets: 89
Audit and Remuneration Committees
The Audit Committee has responsibility for ensuring
theintegrity of our TCFD disclosures as part of the
Annual Report and Accounts process. During 2025,
theRemuneration Committee continued to oversee
theinclusion of a climate-related target in executive
remuneration and the retirement of this target from next
year, as set out in our Remuneration Committee Report.
Remuneration Committee Report: 123
The Executive Board
The Executive Board reports to the Board and
isresponsible for identification, assessment and
management of climate-related opportunities
andrisksat the Group level.
The Sector Chief Executives (SCEs), who are part of
theExecutive Board, are responsible for identification,
assessment and management of climate-related
opportunities and risks at the sector level. SCEs also
assess climate-related risks and opportunities associated
with acquisitions.
During 2025, the Executive Board and SCEs reviewed
arefreshed list of our key climate-related risks as part
ofour annual Principal and Emerging Risks processes.
These risks were originally identified in 2022 and have
been reviewed and updated this year.
Risk Management: 82
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 from the sustainability function
at least quarterly, including an update on our progress
on our Scope 3 decarbonisation activities. The Executive
Board andSCEs 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.
Sector and Company Boards
Each sector and company board is responsible for
identifying, assessing and managing climate-related
opportunities and risks at sector and company level
respectively, reflecting our decentralised, agile and
autonomous business model.
Sustainability function
Reporting to the CSO, the Sustainability function
coordinates and supports sustainability activities
fortheGroup and is responsible for execution of the
Group’sclimate and sustainability strategy.
Sustainability Risk and Reporting Steering Group
This year, we have established a sustainability risk and
reporting steering group with the primary purpose to
discuss and guide decisions taken in preparing for and
complying with sustainability reporting requirements.
Part of the steering group’s remit is to input into
recommendations made to the Board and Executive
Board. TCFD and other climate-related disclosures are
reviewed by the steering group. The group comprises
cross-functional members and meets on an ad-hoc basis.
Halma plc | Annual Report and Accounts 2025 81
Governance Report Financial Statements Other InformationStrategic Report
TCFD statement continued
Risk Management
The Risk management and principal risks section on pages 68 to 78 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.
Whilst there is a Group-wide framework and approach to risk management, our decentralised business
modelempowers every employee and every business at Halma to identify, assess and manage risks and
takeadvantage of opportunities.
Materiality
We determine the relative significance of
climate-related opportunities and risks at the Group
level by assessing qualitative and (where possible)
quantitative potential impact and likelihood using
thesame scales used to assess principal risks.
Likelihood is assessed on a scale ranging from
raretoalmost certain. Assessment of impact
includes consideration of reputational, regulatory
andfinancial factors on a scale that ranges
fromverylowto critical.
Where we are able to quantify financial impact,
weuse the same threshold as the Group audit of >5%
of adjusted PBT (as set out on page 157) – this would
be considered a high or critical impact on the Group.
A material risk or opportunity is one which has a
possible or greater likelihood of occurring combined
with a high or critical impact on the Group before
mitigating actions.
Climate integration into top‑down risk process
The continued assessment and management of
the Group-level climate-related risks is integrated
into our top-down principal and emerging risk
process, which includes an annual review of the
climate-related risks included in the emerging risks
landscape. The Executive Board reviews whether
there have been major changes to either the risk
drivers or mitigating factors for each emerging risk,
which may increase potential impacts or likelihood.
Harnessing climate‑related opportunities
The identification and pursuit of climate-related
opportunities is guided by our purpose-led Sustainable
Growth Model (see pages 19 to 26), which recognises
the highly granular, diverse, and early-stage
characteristics of these opportunities.
Our approach at company level:
– Talented people throughout the organisation
seekand pursue most relevant opportunities.
– Autonomous and agile individual companies
canrapidly take advantage of opportunities.
– R&D and capital expenditure budgets are set
fromthe bottom up.
Our approach at Sector and Group level:
– Focus on increasing education and awareness
aroundlow-carbon transition and adaptation
opportunities within sectors.
– Low-carbon transition and adaptation opportunities
are considered in the development of M&A
strategiesand within companies’ own Strategic
Plansas relevant.
– Level of alignment with the low-carbon
transition is explicitly considered for relevant
standalone acquisitions.
Climate integration into bottom‑up risk process
Companies, sectors and functions identify
opportunities and risks on an ongoing basis and,
more formally, as part of their annual strategic
reviews where risks are reported within company
andsector risk registers, including how these are
currently mitigated and whether any further actions
are required. This bottom-up process enables
climate-related opportunities and risks to be
captured as part of the broader risk management
process and includes an annual requirement for
ourcompanies to consider climate-related risks.
82 Halma plc | Annual Report and Accounts 2025
2025
2023
2024
2022
Timeline of climate‑related risk management
We assessed the significance of potential climate-related opportunities
and risks using largely qualitative scenario analysis, at the Group level
over the short, medium and long term. Eight potentially relevant risks
were identified and assessed. This assessment included analysis of
potential impacts across different geographies and markets/sectors.
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.
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. 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. Specific risks related
to our Scope 3 target are now incorporated in our climate-related risk process.
Risk refresh:
This year, our original climate-related risk assessment was revisited
andrefreshed as follows:
– All risks review: Each climate-related risk originally identified in 2022
wasreviewed in the context of any significant changes in the external
environment that could affect our assessment of the likelihood or magnitude
of the risk to Halma. They were also reviewed in the context of any internal
developments within Halma that could affect our exposure or resilience to
therisk. In addition, a review of other external information was performed
tocheck for any further climate-related risks not previously identified.
– Quantitative physical risk review: Our two physical climate-related risks
(supply chain and operational interruption) have been subject to a deep dive
quantitative scenario risk assessment using Willis Towers Watson’s Global Peril
Diagnostic and Climate Diagnostic tools which use data from Munich Re
natural hazard databases.
– Limited quantitative transition risk review: Transition related supply
chainriskshave been subject to high-level quantitative scenario analysis
based on up-to-date internal and external data – specifically focused
ontheimpact ofcarbon prices.
Target setting assessment:
As a result of setting our 2035 interim Scope 3 reduction target this year,
wehave updated our qualitative assessment of risks relating to Scope 3
targetsetting. This assessment resulted in no change to our overall level of risk.
Metrics and targets: 89
Opportunities review:
In addition, using outputs from the annual strategic planning process,
weassessed, aggregated and reviewed the financial potential of our products
and markets climate-related opportunities.
Strategy: 84
Halma plc | Annual Report and Accounts 2025 83
Governance Report Financial Statements Other InformationStrategic Report
TCFD statement continued
Strategy
Like all businesses, Halma is exposed to potential transition and physical risks
associated with climate change as well as potential transition opportunities.
We continue to believe that our climate-related risks (described below) are not individually material to
the Group, however most of our climate-related risks are captured within either our Principal Risks or our
Emerging Risk landscape. We have assessed our climate-related Products and Markets opportunity to be
material in the medium to long term.
Timeframes and scenarios
We consider the following timeframes in assessing climate-related risks and opportunities:
0‑3 years
Short term
Annual strategic planning
process and viability assessment.
3‑10 years
Medium term
Useful life of most premise
leases and assets. Timeframe
for major product and
market shifts.
10‑30+ years
Long term
Sustainable Growth Model and
M&A assessment timeframes.
In 2025, we updated and developed our original three high-level, qualitative, narrative scenarios to two transition
scenarios and three physical risk scenarios – both scenario types are shown in the table below.
The transition scenarios are based on the International Energy Agency’s (IEA) scenarios of the same name and
have been selected as they provide a suitable framework, with sufficiently different policy outcomes, to assess our
transition risks and opportunities. The physical risk scenarios were selected due to their alignment with the relevant
Representative Concentration Pathways (RCPs) which feed into the International Panel on Climate Change (IPCC)’s
global, economy-wide assessment process.
Scenario For assessment of
Approx temp increase
(2100) Key narrative points
Net Zero 2050
(NZE)
Transition
opportunities/risks
1.5°C A very narrow pathway for the global energy sector to reach
Net Zero CO
2
emissions by 2050 – rapid deployment of clean
energy technologies.
Stated Policies
(STEPS)
Transition
opportunities/risks
2.5°C Based on policies that have been put in place as well as
those under development – not taking for granted all
announced goals will be met.
RCP 2.6 Physical risks 1.5°C Best-case scenario in which physical risks are less severe
andsomewhat similar to the current climate.
RCP 4.5 Physical risks 2-3°C Intermediate scenario in which physical risks worsen
fromthose currently experienced.
RCP 8.5 Physical risks 4°C Worst-case scenario in which physical risks become
increasingly frequent and severe in the long term.
In considering our climate-related risks and opportunities under these scenarios, we believe our business model and
strategy is sufficiently resilient to climate change. The learnings from our scenario analysis is described under each
climate-related risk/opportunity.
84 Halma plc | Annual Report and Accounts 2025
Opportunity Products and markets
As demand for low-carbon products and solutions continues to grow,
andasthe physical impacts from climate-change worsen, Halma
companies are well placed to leverage opportunities to provide our
customers with products and solutions that help to mitigate and adapt.
Sub‑opportunity types Products that enable
the Net Zero transition.
Products that help
customers monitor
and manage the
increased effects
ofclimate change.
Low carbon
footprintproducts
– serves customer
need to reduce supply
chain emissions.
Halma examples
For more examples of our products
andmarkets sub‑opportunities,
seeourSustainability Review
Provision of worker
and asset safety
equipment to
renewable energy
industries.
Stormwater
andwastewater
management.
Reduced carbon
product and
packaging design.
Likelihood Possible or greater.
Type of financial impact Increased or diversified profits from new, growing or higher margin
revenuestreams.
Estimated
financial
impact
Short term Medium: 2.0-5.0% annual Adjusted PBT.
Medium term High: 5.0-10.0% annual Adjusted PBT.
Long term High: 5.0-10.0% annual Adjusted PBT.
Climate‑related opportunities
We believe that our climate-related opportunity –
Products and Markets – will be material for the Group
in the medium to long term (3-30+ years).
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.
This assessment has been refreshed in 2025 using the
bottom-up strategic planning process. All companies
arerequired to consider potential sustainability related
revenue and profit growth opportunities as part of their
annual strategic planning cycle. This year, companies
were asked to quantify (where possible) the potential
financial impact of such opportunities. This quantitative
information supports the initial assessment that
Products and Markets climate-related opportunities are
expected to be material in the medium to long term.
1
We have not been able to quantitatively model the
financial impact of the products and markets climate
opportunity under different transition scenarios.
However, our qualitative assessment suggests that the
magnitude of this opportunity may be increased under
aNZE scenario in comparison with a STEPS scenario.
Our approach to climate related opportunity
identification and pursuit is described in the risk
andopportunity management section above.
At Group level, Halma has other climate-related
opportunities, for example, the opportunity to reduce
operating costs by improving resource efficiency or
moving to onsite renewables. Our view is that, other
thanthe products and markets opportunity described
above, these climate-related opportunities are of low
significance to the Group and therefore are not
describedfurther.
1 The financial potential of each sub-opportunity has been estimated at operating company level and will individually contain specific assumptions and judgements.
Additionally judgements have been made in determining which key strategic initiatives are climate-related. In many instances, the opportunity is not exclusively
climate-related and many factors contribute to the financial potential of the opportunity – not just climate change. Despite these caveats, we have a good level
ofconfidence that the financial impact of Products and Markets climate-related opportunities will become financially material as a proportion of Halma’s profits
inthe medium to long term.
Halma plc | Annual Report and Accounts 2025 85
Governance Report Financial Statements Other InformationStrategic Report
TCFD statement continued
Climate‑related risks
In 2022, we identified and assessed the significance
of eight
2
climate-related risks, none of which were
deemed material for Halma. As explained in the
RiskManagement section above, these risks have
beenreviewed in 2025 for any internal or external
developments that could affect our risk assessment
as well as consideration about whether or not the risks
originally identified are still relevant and capture all
of our climate-related exposures.
Qualitative scenario analysis and review of three of our
transition risks relating to products & markets, M&A &
portfolio strategy and skills, talent & information, has
given us comfort that they remain inherently very low
risks. Therefore, no further analysis has been performed
for these risks.
For the remaining climate-related risks, we have
performed additional analysis where possible (see below)
and have concluded that they remain not material over
all three time horizons considered. We do not currently
expect these risks to become material, as our business
model and strategy is sufficiently resilient, however
certain climate-related risks are included as drivers,
modifiers or accelerators to existing principal risks
where relevant. Other climate-related risks are captured
in our Emerging Risk landscape.
Our resilience to climate-related risks stems from our
highly diverse, agile and decentralised business model,
as well as our ability to provide products and operate
insectors expected to thrive in a low-carbon economy.
Business model: 24
R1 – Physical risk in the supply chain
TCFD risk type:
Physical
Inherent risk level:
Residual risk level:
Assessment type:
Quantitative
and qualitative
Time horizon relevant:
Short | Medium | Long
Description
Increasingly severe extreme
weather events could reduce
availability of materials and
components and/or interrupt
transportation and logistics.
Key potential financial/
non‑financial impacts
– Reduced availability of suppliers,
materials or components
– Increased costs of materials,
logistics or other supply
chainexpenditure
– Restricted availability of
keyresources for suppliers
– Interruption to
transportation/logistics
– Revenue disruption
Assessment and scenario considerations
Using an external risk assessment partner we have performed a
limited assessment of our physical risk exposure in the supply chain.
The exercise highlighted certain medium to high level exposures to
heat stress and flooding. Exposure to physical risks inthe Halma
supply chain worsens slightly under the RCP 8.5 scenario when
compared with the RCP 2.6 scenario by 2050. Thisassessment
showed that although the risk is likely, the overall (including
quantitative) impact is medium and not likely to breach our
financial materiality threshold of 5% adjusted PBT.
Mitigation
Business interruption insurance alongside experience of managing
supply chain disruption and portfolio diversity helps to mitigate this
risk and lowers the potential financial impact further. Although not
considered material, this risk is incorporated into ourbroader
principal risk – Production Interruption.
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;
– our pricing resilience; and
– our asset-light model.
As none of our climate-related 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), nor do
weoutline additional details on our strategic response to
climate-related risks or risk-related metrics and targets.
Despite our assessment that these risks are not likely to be
material, at 31 March 2025 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, there were no indicators of
impairment identified or adjustments made as a result
of these reviews.
Accounting Policies: 167
The information below describes each of our
climate-related risks alongside our risk assessment,
potential financial impacts and key mitigating actions.
As explained above, all risks are assessed against both
impact and likelihood scales at both inherent and
residual risk level. Residual risk is assessed after the
effect of mitigating actions.
2 One of our original climate-related risks identified in 2022 (Regulatory environment) is no longer considered separately
asitissufficiently incorporated into other climate-related risks.
Risk level
Very high Very low
86 Halma plc | Annual Report and Accounts 2025
R2 – Transition‑induced supply chain impacts
TCFD risk type:
Transition
Inherent risk level:
Residual risk level:
Assessment type:
Quantitative
and qualitative
Time horizon relevant:
Medium | Long
Description
Increased costs (including
from carbon pricing) and
constrained material/component
availability resulting from the
low-carbon transition.
Key potential financial/
non‑financial impacts
– Constrained raw material/
component availability
– Increased shocks to
global supply network
– Increased costs of
materials, logistics or other
supply chain expenditure
– Revenue disruption
Assessment and scenario considerations
Internal and external review of developments affecting this risk
including high level quantitative analysis of the impact of carbon
taxes to Halma. Exposure to this risk is increased under a NZE
scenario due to higher costs of carbon and greater global
implementation of carbon tax schemes. Risk level is largely
unchanged under STEPS scenario. Although the likelihood of this
risk impacting Halma is probable, we believe the potential impact
to the Group is low (potential financial impact <2% annual PBT),
resulting in an overall low inherent risk.
Mitigation
Mitigation efforts are focused on Scope 3 emission reduction.
These mitigation efforts will result in an even lower potential
impact on the Group. Although not considered material, this risk
isincluded in our emerging risk landscape.
R3 – Stakeholder sustainability expectations increasing
TCFD risk type:
Transition
Inherent risk level:
Residual risk level:
Assessment type:
Qualitative only
Time horizon relevant:
Medium | Long
Description
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 by 2050 and
toreach our interim 2035 target.
Key potential financial/
non‑financial impacts
– Increased reporting burden
– Decreased valuation/
brand perception
– Increased business model
pressures and associated costs
– Increased costs to take action
towards Scope 3 targets
Assessment and scenario considerations
Internal and external review of developments affecting this risk
including assessment of sustainability-related resource and
education available. Stakeholder expectations are likely to be
higher and increase more quickly under a NZE scenario but still a
relevant risk under STEPS due to somewhat divergent regulatory
landscape. Although the likelihood of this risk impacting Halma
isalmost certain, we believe the potential impact is low at
inherent level.
Mitigation
Ongoing commitment to transparent, compliant sustainability
reporting as well as continuing to embed sustainability
considerations in day to day activities contributes to risk
mitigation. Continued increase in resource and growth of expertise
in the sustainability function contributes to lowering the potential
impact of this risk. Although not considered material, this risk is
included in our emerging risk landscape.
R4 – Operational interruption
TCFD risk type:
Physical
Inherent risk level:
Residual risk level:
Assessment type:
Quantitative
and qualitative
Time horizon relevant:
Short | Medium | Long
Description
More severe and frequent extreme
weather events could interrupt
operations (including property loss
or damage), restrict availability
ofkey resources or prevent
accessibility to sites.
Key potential financial/
non‑financial impacts
– Reduced operational
availability/efficiency of sites
– Restricted availability
of key resources
– Restricted accessibility to sites
– Costs of rising
insurance premiums
– Revenue disruption
Assessment and scenario considerations
Using an external risk assessment partner, we have performed
alimited assessment of our physical risk exposure in our own
operations. The exercise highlighted certain low to medium level
exposures to heat stress and flooding. Exposure to physical risks
inHalma’s operations worsens slightly under the RCP 8.5 scenario
when compared with the RCP 2.6 scenario by 2050. This assessment
showed that the likelihood of the risk is possible and the overall
(including quantitative) potential impact is medium and not likely
to breach financial materiality threshold of 5% adjusted PBT.
Mitigation
As well as business interruption insurance, the geographical
diversity of Halma’s companies reduces the impact of any single
event. Although not considered material, this risk is incorporated
into our broader principal risk – Production Interruption.
Halma plc | Annual Report and Accounts 2025 87
Governance Report Financial Statements Other InformationStrategic Report
TCFD statement continued
We have not identified our Scope 1, 2 or 3 emissions as
amaterial risk to the Group. Our Scope 1 & 2 emissions
are relatively small, we therefore focus on Scope 3 –
c.99% of our footprint, where we have the largest
challenges to decarbonisation. We have set atarget
toreach absolute Net Zero for our Scope 3 emissions
by2050 and reduce Scope 3 emissions intensityby 66%
by 2035.
See the Metrics and Targets section for more information
on our targets: 89
See our Sustainability Review at www.halma.com
for more information
2050
Absolute Net Zero to be
reached for our Scope 3
emissions by 2050
66%
Percentage reduction of
Scope 3 emissions intensity
by 2035
Near‑ to mid‑term objectives
Our ambition is to establish near-term
decarbonisation planning at the company level,
where most feasible and relevant, to:
Ensure initial real-world
emission reduction
actions are underway
Understand key
decarbonisation
levers and challenges
and identify the
key dependencies
and assumptions
that will underpin our
transition plans
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.
Net Zero transition planning
We operate globally and are committed to achieving Net Zero for our entire value chain by 2050.
Our formal transition plans remain under development as we continue to work with our companies on bottom-up
decarbonisation planning. However, this section outlines our current direction of travel and what we have learned
from our continued progress this year. These learnings and our approach are expected to continue to change as
weexecute on our short to medium-term (near-term) activities.
Our multiyear approach to bottom‑up
decarbonisation planning
In 2024, five companies, representing a significant
portion of our 2024 estimated emissions, 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 engaged with a larger group of
companies, covering the majority of estimated 2024
emissions. This engagement included working with
companies to understand and improve 2024 & 2025
emissions estimates, identify emissions hotspots,
and prioritise initial near-term actions, suppliers
andproducts for further decarbonisation planning.
We currently expect to continue to support
thecompanies above to further develop
theirnear-term decarbonisation plans while
expanding engagement to additional companies,
on a case-by-case basis, from 2026 onwards.
Key decarbonisation levers, challenges,
assumptions and dependencies
Our Scope 3 decarbonisation engagement so far
identifies multiple actions the companies can take.
Theseinclude product design changes to reduce
electricity usage and reduce/change materials, as well
as engagement with key suppliers and customers.
However, as expected, our companies continue to
identify challenges that introduce significant uncertainty
and limit visibility on a trajectory to 2050 Net Zero and
toour 2035 interim targets. These include relative lack
ofinfluence over suppliers and limitations to product
design changes due to the high level of regulation and
certification of our products.
In addition, achievement of our 2035 and 2050 targets
islikely to be highly dependent on many factors outside
our control or influence. Some of these dependencies
include sector-wide decarbonisation of multiple globally
traded components (such as electronics, plastics and
metals), grid decarbonisation speeds and supportive
product standards and policy environments.
88 Halma plc | Annual Report and Accounts 2025
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).
From 2026, the Remuneration Committee has decided
that a climate change metric will no longer be used in
the annual bonus. The reasons for this change are set out
fully in the Remuneration Report on page 123, and
include our maturing sustainability approach enabling
our companies to focus on the sustainability goals and
issues most relevant to them, the difficulty of setting one
metric that can be used across the senior leadership
population of our diverse businesses at different stages,
and the estimated nature of Scope 3 data which
precludes a Scope 3 target from being used in
remuneration.
Scope 1 & 2 emissions reduction targets: 42% reduction
by 2030
1
, Net Zero by 2040
2
0%
Net
Zero
42
%
55
%
64
%
2030 target
(medium term)
2040 target
(long term)
20242020
baseline
2025
Scale is %
reduction
Our medium-term target has already been exceeded. 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.
Renewable electricity target: 80% renewable electricity by 2025
3
Scale is %
renewable
electricity
100%86
%
2025
71
%
2024
80
%
2025 target (short term)
0% 8%
2020
baseline
The improvement is driven by bottom-up company-led purchase and generation of
renewables. Approximately 95% (2024: 94%) is local renewable tariffs, largely backed
by Energy Attribute Certificates (EACs), or unbundled EACs. Onsite electricity
generated increased by 26% year-on-year, comprising the remaining 5% (2024: 6%).
Energy productivity target: At least 4% annual energy productivity improvements
on a cumulative basis from 2022
4
Scale is %
improvements
(0 to 26%)
2022
baseline
12
%
Cumulative target 2025
(4% annual improvements)
19
%
2024
26
%
2025
0%
Since 2022, we have seen a c.30% increase in revenue
4
while energy consumption
hasincreased by c.4%. 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 1 & 2 emissions 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 section.
For 2024, we engaged an independent
third-party EcoAct to perform a limited
verification aligned with the ISO14064-
3:2019 standard, of the majority of our
Scope 1 & 2 emissions. This verification
was carried out after the publication
ofour Annual Report and published on
our website. This third-party verification
exercise will be expanded in respect
of2025 and published on our website
when available.
Our medium and long term targets
toreduce Scope 1 & 2 emissions are
aligned with guidance from the
Science-based Target initiative (SBTi)
and our target is an absolute measure
aligned with the non-sector specific
1.5-degree emissions pathway.
More detail is set out in our Sustainability
Review at www.halma.com
Footnotes are on the next page.
Metrics and Targets
We disclose total GHG emissions in line with the TCFD cross‑industry metric guidance, as set out below.
We consider the other suggested cross-industry metrics
are currently not appropriate for our business model and
the nature/significance 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.
Target
Performance
Halma plc | Annual Report and Accounts 2025 89
Governance Report Financial Statements Other InformationStrategic Report
Scope 3 emissions and targets
During 2023, we worked with an external consultant to
estimate our Scope 3 emissions for 2020. Figures were
estimated for all relevant categories in accordance
withthe GHG protocol and using acceptable
Scope3 methodologies.
We faced significant difficulties and data limitations,
due to our decentralised business model, when
estimating our 2020 Scope 3 emissions 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 2025 we continued to use a
methodology developed in 2024, to enable a high-level
annual estimate of Scope 3 emissions.
Scope 3 category Data source
5
2025
(tCO
2
e)
2024
6
(tCO
2
e)
1 & 4 Purchased goods and services (incorporating upstream
transportation and distribution)
Hybrid estimation 431,518 415,989
2 Capital goods Scaled from FY24 4,806 3,660
3 Fuel and energy related activities Calculated annually 1,073 1,583
5 Waste generated in operations Calculated annually 1,906 1,872
6 Business travel Calculated annually 20,390 16,240
7 Employee commuting Scaled from FY24 12,407 11,881
8 Upstream leased assets Not applicable – –
9 Downstream transportation and distribution Not applicable – –
10 Processing of sold products Not applicable – –
11 Use of sold products Hybrid estimation 509,324 513,831
12 End-of-life treatment of sold products Scaled from FY24 427 398
13 Downstream leased assets Not applicable – –
14 Franchises Not applicable – –
15 Investments Not applicable – –
Total Scope 3 emissions 981,851 965,454
Using this methodology, total Scope 3 emissions
werelargely flat year-on-year, at a 2% overall increase.
Our two largest categories (Categories 1 & 4 and 11) are
responsible for more than 95% of total Scope 3 emissions.
This small increase reflects our methodology which
largely relies on scaling our prior year 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. However, we were pleased to see a small
reduction in Category 11 this year, driven by the company
contributing most to this category which saw a
continued increase in the proportion of sales from more
energy efficient products. This was offset by revenue and
volume growth in other companies.
During 2026, we plan to undertake a revised bottom-up
exercise to re-estimate our 2025 Scope 3 emissions.
Theresults of this exercise will provide a baseline for
ourScope 3 interim target described below.
1 From 2020 market-based baseline of 18,887 tCO
2
e. We do not intend to seek SBTi validation of this target.
2 Market-based calculation of Scope 2 emissions. 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.
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. The components of “energy consumed” are electricity and gas used (both renewable and non-renewable) and all other
fuels used in operations. All data sources and methodologies can be found in our Basis of Preparation document at www.halma.com. This target was set using the
EP100 initiative minimum commitment (to double energy productivity over 25 years).
5 All data sources and methodologies can be found in our Basis of Preparation document at www.halma.com.
6 This year, improved data and methodologies, as well as the inclusion of acquisitions and disposals, led to a 16% reduction in estimated 2024 emissions from category 11
and a 3% increase in estimated 2024 emissions from supply chain compared to previously disclosed figures. Given the magnitude of these changes, we have
re-presented our 2024 comparative figures.
TCFD statement continued
90 Halma plc | Annual Report and Accounts 2025
Our Scope 3 estimate continues to confirm 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 have set 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.
In order to support our long-term Net Zero target,
we have set an interim target to reduce total Scope 3
emissions by 66% per £m of economic value added
(Adjusted Operating Profit
1
) by 2035 from a
2025 baseline
2
.
GHG metric Unit 2025 2024
3
Scope 1
4
tCO
2
e 4,128 3,933
Scope 2: Location-based
5
tCO
2
e 11,204 10,721
Scope 2: Market-based
5
tCO
2
e 2,599 4,605
Total Scope 1 & 2: Location-based tCO
2
e 15,332 14,654
Of which UK tCO
2
e 3,111 2,970
Total: Scope 1 & 2: Market-based tCO
2
e 6,727 8,538
Of which UK tCO
2
e 1,362 1,426
Energy consumption in MWh used to calculate above emissions MWh 58,880 55,126
Of which UK MWh 18,193 16,914
Intensity ratio (market-based)
6
tCO
2
e/£m 3.0 4.1
Scope 3: Estimated
7
tCO
2
e 981,851 965,454
Streamlined Energy and Carbon Reporting (SECR)
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 former
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 Adjusted to remove the amortisation and impairment of acquired intangible assets, acquisition items, restructuring costs, profit or loss on disposal of operations
andimpairment of associates. Adjusted operating profit may also be adjusted for constant currency where this is deemed to be material to performance.
2 This target is aligned with the SBTi’s non-sector specific emissions reduction trajectory. We do not intend to seek SBTi validation of this target.
3 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not exceeded. We do not recalculate Scope 3 annually calculated emissions for acquisitions and disposals. We have re-presented 2024 estimated categories
asexplained on the previous page.
4 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.
5 Electricity purchased for our own use. Market-based is net of market instruments.
6 Total Scope 1 & 2 (market-based) emissions divided by revenue.
7 Estimated as explained further in our Statement above, and in our Sustainability Review and ESG Data Basis of Preparation document at www.halma.com.
Our 2025 figures have not been recalculated for acquisitions and disposals in 2025, 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.
Examples of energy efficiency measures undertaken during the year by our companies included enhancements to operational efficiencies and removal of inefficient
equipment and installation of heat exchangers.
Halma plc | Annual Report and Accounts 2025 91
Governance Report Financial Statements Other InformationStrategic Report
Viability statement
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 68 to 78 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).
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.
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.
In undertaking the downside scenario modelling,
theprincipal risks considered were an impact to
organicgrowth and/or from continuing economic
andgeopolitical uncertainty. This is reflected through
reducing revenue and gross margin and increasing
overheads resulting in an average reduction in profit
before tax of £250m or 45% per annum. In addition,
aone-off charge of £25m has been applied, which could
reflect litigation, production or Cyber and IT interruption.
These risks are partially offset by a reduction in
discretionary capital andacquisition spend. 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 confirm 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 2028.
The Strategic Report was approved by the Board of
Directors on 12 June 2025 and signed on its behalf by:
Marc Ronchetti
Group Chief Executive
Carole Cran
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.
The Board believes that this approach provides greater
certainty over forecasting 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 also 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 for the years ending 31 March 2026 and 31 March
2027 with further assumptions applied for the year
ending 31 March 2028. The base case reflects the latest
forecasts and strategic plans of the business.
92 Halma plc | Annual Report and Accounts 2025
94 Governance at a glance
96 Board of Directors
98 Executive Board
100 How we are governed
103 Board activities
105 Section 172 statement and decision-making
107 Board oversight of our culture
109 Board engagement with our employees
110 Nomination Committee report
116 Audit Committee report
123 Remuneration Committee report
128 Remuneration at a glance
131 Annual Remuneration Report
143 Directors’ Remuneration Policy
147 Directors’ report
151 Statement of Directors’ responsibilities
In this section
Governance
Report
This Report outlines the governance
framework within which the Group
operates, how it hassupported the
Board’s strategic activities during the year
and how the UK Corporate Governance
Code 2018 has been applied.
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.
Governance Report Financial Statements Other InformationStrategic Report
Halma plc | Annual Report and Accounts 2025 93
Governance Report
Governance at a glance
Governance highlights
Read more about these: 104
UK Corporate Governance Code 2018
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 has applied all Principles and complied with all Provisions
of the Code for the year ended 31 March 2025. Halma will report against the UK Corporate Governance Code 2024
forthe year commencing 1 April 2025, except for provision 29, which will come into effect forHalma from 1 April 2026.
How we apply the Code
Board Leadership
and Company Purpose
Sustainable Growth Model: 19 Board oversight of our culture: 107
Purpose highlights: 3 Board engagement with employees: 109
Board activities: 103 How we are governed: 100
Stakeholder engagement: 48 Risk management and internal control: 68
s.172(1) statement and
decision‑making: 105
Audit Committee Report: 116
Division of Responsibilities
How we are governed: 100 Independence: 102
Board of Directors: 96
Composition, Succession
and Evaluation
Nomination Committee Report: 110
Audit, Risk and Internal Control
Risk management and internal
control,including principal and
emergingrisks: 68
Audit Committee Report,
includingfairbalanced and
understandable assessment: 116
Remuneration
Remuneration Committee Report: 123
Portfolio management
The Board regularly reviews the portfolio and M&A
pipeline. It approves all acquisitions over £10 million.
This year, the Group made seven acquisitions across
all three sectors for a total maximum consideration
of£158m.
Board changes and engagement
The year has seen a key change in our Executive
team with the appointment of Carole Cran as CFO.
Additionally, we concluded the search for two new
non-executive Directors. Accelerate Halma, held in
the US, provided a great opportunity for Director
engagement with our leaders.
External Board review actions
Our 2024 externally facilitated board review
providedsome useful suggestions for us toconsider.
Read about how these have beenaddressed.
Board skills review
We took the opportunity to refresh our Board skills
matrix (shown on page 95) utilising an online tool
toassist with the Director’s own rating and an
assessment by their peers.
94 Halma plc | Annual Report and Accounts 2025
Board composition
The composition of our Board
asat12 June 2025.
For more information, see the
NominationCommittee: 110
For more information about
our people: 58
Gender
Men Women
Ethnicity
Ethnic minority White
50%
5
50%
5
20%
2
80%
8
Age
45-49 50-54 55-59 60+
Composition
Chair Non-executive Executive
40%
4
20%
2
10%
1
30%
3
30%
3
60%
6
10%
1
Board skills and experience
Advanced experience and expertise Experience
Dame Louise
Makin
Marc
Ronchetti
Jennifer
Ward
Carole
Cran
Jo
Harlow
Dharmash
Mistry
Sharmila
Nebhrajani
OBE
Liam
Condon
Giles
Kerr
Hudson
La Force
Strategy & M&A
Finance & accounting
Risk management & regulation
Innovation and technology
Industrial/Engineering sector
Life sciences & healthcare
Sustainability
Talent and remuneration
International markets
Listed CEO/CFO
Stakeholder engagement
Executive Board
composition
Gender
Men Women
Ethnicity
Ethnic minority White
33%
3
67%
6
44%
4
56%
5
Halma plc | Annual Report and Accounts 2025 95
Financial Statements Other InformationStrategic Report Governance Report
Board of Directors
Committee Membership
N Nomination Committee
A Audit Committee
R Remuneration Committee
Chair of Committee
Member of Committee
For full biographies visit www.halma.com
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.
External appointments:
Avantor Inc., non‑executive director
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.
Carole Cran
Chief Financial Officer
Appointed: January 2016
(April 2025 as Chief Financial Officer)
Carole has extensive financial experience
and a strong focus on governance and
risk. Carole was appointed as Chief
Financial Officer Designate in January
2025, having previously served as an
independent non‑executive Director from
2016 to 2025. Carole was Chief Financial
and Commercial Officer of Forth Ports
Limited until November 2024, prior to
which she was Chief Financial Officer of
Aggreko plc and held a range of senior
financial positions at BAE Systems plc,
with four years in Australia.
External appointments:
RS Group plc, non‑executive director
Jennifer Ward
Chief Talent, Culture and
CommunicationsExecutive
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 held various
leadership roles in Human Resources,
Talent and Organisational Development
for divisions of PayPal, Bank of America
and Honeywell. Jennifer is a non‑executive
director and Chair of the Remuneration
Committee at Diploma plc.
External appointments:
Diploma plc, non‑executive director
96 Halma plc | Annual Report and Accounts 2025
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 the Senior Independent Director
ofCentricaplc.
External appointments:
J Sainsbury plc, non‑executive director
Chapter Zero, member of the board
Centrica plc, non‑executive director
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 began her
career in strategy consulting, qualified
asachartered accountant with PwC and
has held executive board positions at the
Medical Research Council and the NHS.
She 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, Chairman
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 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/The FA,
non‑executive director
Rathbones Group, non‑executive director
Competition & Markets Authority,
non‑executive director
Hudson La Force
Independent non‑executive Director
A
N
R
Appointed: June 2025
Hudson brings a wealth of industrial and
international experience from his executive
and non‑executive positions, as well as his
time in the public sector. He was formerly
Chief Executive Officer at W. R. Grace &
Co., from which he retired in 2021, having
previously been chief operating officer and
chief financial officer. Prior to W. R. Grace
& Co., he was Chief Operating Officer and
Senior Counsellor to the Secretary at the
US Department of Education and General
Manager at Dell China.
External appointments:
Madison Industries, advisory
boardmember
Madison Air, non‑executive director
Filtration Group Corporation,
non‑executive director
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
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
Halma plc | Annual Report and Accounts 2025 97
Financial Statements Other InformationStrategic Report Governance Report
Executive Board
01
02
03
04
For full biographies please
visit www.halma.com
01. Marc Ronchetti
Group Chief Executive
See page96 for biography
02. Charlene Lim
Group General Counsel
Charlene was appointed to the Executive
Board in September 2024 and has global
responsibility for the Group’s legal, risk and
compliance affairs and oversees the
company secretariat function.
03. Jennifer Ward
Chief Talent, Culture and
CommunicationsExecutive
See page96 for biography
04. Carole Cran
Chief Financial Officer
See page96 for biography
05. 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.
98 Halma plc | Annual Report and Accounts 2025
06
05
07
09
08
06. 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.
07. 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.
08. 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.
09. 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 2025 99
Financial Statements Other InformationStrategic Report Governance Report
How we are governed
Board and Committee structure and responsibilities
Board responsibilities are clearly defined, set out in writing and are regularly reviewed. For full details on the roles
andresponsibilities 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. Responsibility for monitoring the culture of the Company and providing challenge to management.
Chair
– Leads the Board
– Promotes high standards
of corporate governance
– Engages with Stakeholders
– Leads on Board composition
andsuccession planning
– Monitors Board and Company
culture,values and behaviours
Group Chief Executive
– Leads the Company and
ExecutiveBoard
– Sets objectives, strategy and
performance standards
– Manages key risks and strategies
– Owns relationships with shareholders,
financial institutions and other
stakeholders
– Ensures the Board hears the voice
ofthe wider workforce
Executive Directors
– Deliver the strategy agreed
bytheBoard
– Provide executive leadership,
operational and financial decisions
– Champion culture and values
– Talent management
Senior Independent Director
– Sounding board for the Chair
– Trusted intermediary for
otherDirectors
– Alternative channel for shareholders
and employees to raise concerns
– Leads Chair succession and
appointment process
Independent non‑executive Directors
– Provide independent thinking
andjudgement
– Provide external experience
andknowledge
– Scrutinise and challenge the
performance of management
Company Secretary
– Acts as a trusted adviser to
theChair and other Directors
– Ensures clear and timely information
flow to and from theBoard
– Provides governance advice
andsupport to the Board
– Supports with non‑executive
Director induction
Board Committees
Nomination Committee
Leads on Board appointments,
succession planning and evaluation;
reviews the size, skills, diversity
andcomposition of the Board
andCommittees.
Learn more: 110
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.
Learn more: 116
Remuneration Committee
Keeps under review the framework and
Policy on Executive Director and senior
management remuneration.
Learn more: 123
Share Plans Committee
Actions and administers share award grants and vestings,
following approval by the Remuneration Committee.
TypicallyChaired by the CEO.
Bank Guarantees and Facilities Committee
Agrees and approves arrangements for issuing guarantees,
indemnities or other support for bank loans and other
financingfacilities. Typically chaired by the CEO.
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 98 and on www.halma.com
100 Halma plc | Annual Report and Accounts 2025
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.
Our Board and Committee structure is outlined on page
100. Certain matters are reserved solely for decision
bythe Board and other areas are delegated to Board
Committees or management. Each Board Committee
operates under written terms of reference which are
approved by the Board. The full list of matters reserved
for the Board and the terms of reference for its
Committees are available at www.halma.com.
Furtherinformation on the composition, role and
activities of each Committee isset out in the respective
Committee Reports.
Oversight of our companies
The foundation of our business model is the autonomy
that our businesses enjoy. To support this, while retaining
oversight and control at Group level, companies must
comply with Halma’s suite of financial and non‑financial
policies and procedures and provide confirmation of
compliance half‑yearly. The Group’s policies set out the
requirements in the areas of financial reporting and
internal control, health and safety, the environment,
ethics, human resources, IT and cyber, 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 aims to balance autonomy with
the need for stewardship, oversight and control.
Each company in the Group has its own board of
directors which meets regularly to fulfil its legal duties
and to review strategic, operational and financial 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Groupteam is set out in our business model: 24
Changes to the Board
We announced in January 2025 that Steve Gunning
haddecided to retire as Chief Financial Officer and he
resigned as a Director on 31 March 2025. Carole Cran,
former non‑executive Director and Chair of the Audit
Committee at Halma, was appointed as Chief Financial
Officer Designate from 8 January 2025 and became
Chief Financial Officer with effect from 1 April 2025.
InMarch 2025, we announced that Barbara Thoralfsson
will be appointed as a non‑executive Director with
effectfrom 16 June 2025. In May 2025, we announced
that Hudson La Force was joining the Board as a
non‑executive Director with effect from 2 June 2025.
Read more about the CFO and non‑executive Director succession
in the Nomination Committee Report: 110
Board meetings
The Board has six scheduled meetings per year but will
meet,or pass resolutions, to deal with urgent matters
and event‑driven items, such as acquisitions and
Boardappointments.
The Chair andnon‑executive Directors meet privately at
the end of Board meetings, to facilitate open discussion
and feedback without the presence of management.
Halma plc | Annual Report and Accounts 2025 101
Financial Statements Other InformationStrategic Report Governance Report
How we are governed continued
Independence and time commitment
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, considers each to
beindependent for the year ended 31 March 2025.
DameLouise Makin, non‑executive Chair, 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. None of our non‑executive Directors
represent a significant shareholder.
Board attendance
The attendance at each Board and Committee meeting for the year ended 31 March 2025 is set out in the table below.
Board
Audit
Committee
Remuneration
Committee
Nomination
Committee
Number of meetings 6 4 4 5
Number attended/eligible to attend3:
Dame Louise Makin 5/6 3/4 4/5
Marc Ronchetti 6/6
Steve Gunning 6/6
Jennifer Ward 6/6
Carole Cran
1
6/6 3/3 2/2 3/3
Liam Condon 6/6 4/4 4/4 5/5
Jo Harlow 6/6 4/4 4/4 5/5
Giles Kerr 5/6 4/4 4/4 5/5
Dharmash Mistry 5/6 3/4 3/4 4/5
Sharmila Nebhrajani OBE 6/6 4/4 4/4 5/5
Roy Twite
2
1/1 1/1 1/1 1/1
1 Carole Cran was a non‑executive Director until 8 January 2025, when she became CFO Designate.
2 Roy Twite stepped down from the Board on 7 June 2024.
3 Director attendance at Board meetings is compulsory but exceptional absence due to unforeseen circumstances or, in the case of a newly appointed Director, a known
diary clash does not infringe on a Director’s commitment or contribution to the Board and, where possible, Directors will provide the Chair or Senior Independent Director
with comments arising from the agenda and papers, so that they can be voiced in the meeting.
Director availability and time commitment to the
Company is essential for the proper functioning of the
Board and no issues have been experienced during the
year. AllDirectors are subject to an annual review, at
which time commitment and their personal contribution
is akey focus.
Read about our approach to Directors taking on external
appointments at www.halma.com
102 Halma plc | Annual Report and Accounts 2025
2024
2025
Board activities
Board activities
At each meeting, the Board receives updates from
the Group CEO, Group CFO, Sector Chief Executives
(SCEs), Investor Relations, M&A, Board Committees,
Company Secretary, Legal, Risk & Compliance.
Rotational presentations from the SCEs, functional
experts, such as sustainability and IT, and outside
presenters provide the Board with deeper insight
onthe business and external operating environment.
A programme of site visits and other Company events
provide opportunities for Directors to engage with
employees, to inform Board’s decision-making and
forDirectors to discharge their section 172 duties.
Board and Committees Key:
B Board
N Nomination Committee
A Audit Committee
R Remuneration Committee
March
– Meetings held: B, N, R
– Trading update
– Annual budget approved
January
– Meetings held: B, N, A, R
– Appointment of Carole Cran
as CFO Designate
– Internally facilitated Board
performance review
June
– Meetings held: B, N, A, R
– Release of full year results
– Recommendation of final dividend
– Approval of acquisition of
GlobalFire Equipment, S.A
October
– Accelerate Halma conference
July
– Meetings held: B and AGM
November
– Meetings held: B, N, A, R
– Release of half year results
– Declaration of interim dividend
– Approval of acquisition of
LamideyNoury Medical
April
– Approval of acquisition
of MK Test
September
– Meetings held: B, N, A
– Two-day strategy offsite
– Trading update
– Approval of acquisition of
Hathorn Corporation Inc.
Halma plc | Annual Report and Accounts 2025 103
Financial Statements Other InformationStrategic Report Governance Report
Board activities continued
Portfolio management
Portfolio management is an important discipline
forthe Board and management in delivering
purpose-aligned, sustainable growth and returns.
For prospective acquisitions or disposals, theBoard’s
main objective is to ensure that it is inthebest
interests of Halma, having considered theimpact on
keystakeholders. For the acquisitions approved during
the year, theBoard was provided with a detailed
proposal which sets out key financial and operational
information, including talent and culture, and strategic
information to assess the end market, customer base,
growth drivers and the risks and opportunities.
Following completion, the Board monitors the
integration and performance of acquisitions
independently of its regular review of the portfolio.
In the case of Lamidey Noury Medical, which was
acquired in November 2024, the Board’s discussion
ofthe proposal noted the increasing demand for
minimally invasive procedures, which require precise
and controlled surgical interventions, and led to an
agreement that the acquisition aligned with Halma’s
purpose and would enhance the existing portfolio
ofminimally invasive surgical capabilities.
External board review actions
Following the externally-facilitated Board review
in2024, the Board agreed three areas of focus for 2025:
Formally reflect on key decisions – the Board undertook
a post-decision review, looking at factors considered
when reviewing the September 2023 trading update,
inlight of the headwinds and risks that could have
emerged in the second half of the year, economically
and geopolitically. Reflecting on the decisions made,
and reviewing it in light of the actual out-turn,
wasahelpful exercise to identify thedata, analysis
andjudgements that contributed to the debate and,
ultimately, achieved the appropriate outcome.
Seek further opportunities for employee engagement
– during the year, the Directors took the opportunity to
increase their engagement through: increased site visits
and hosting employee forums; supporting Halma’s
training programmes and internal tech event; and
attending and participating in panel discussions and
networking at the Accelerate Halma 2024 conference.
Introduce elements on boardroom culture and board
dynamics into the Director induction process – a new
induction programme, a key component of which is
delivered through a bespoke portal, was launched in
February 2025. Further details are set out in the case
study on page 113.
Board changes and engagement
In January 2025, we announced that Steve Gunning
had decided to retire from Halma and he resigned as
Chief Financial Officer on 31 March 2025. Supported
bythe Nomination Committee, the Board executed its
succession plans by appointing Carole Cran, previously
non-executive Director and Audit Committee Chair,
asCFO Designate. In addition, the Board recently
agreed the appointment of two new non-executive
Directors, Barbara Thoralfsson and Hudson La Force.
Further details of the Director appointment and induction
process canbefound in the Nomination Committee Report: 110
The Directors attended the Accelerate Halma
conference in October 2024, held in Arizona, US.
Theconference brought together our top 350 leaders
to network, learn and explore the overarching theme
of“Embrace the Adventure”. The event showcased
ourbusinesses and provided opportunities to celebrate
success, articulate our business model, connect with
companies, leverage the power of our network and
explore the challenges and opportunities that many
ofour companies were facing, together.
See page 50 for a more detailed summary of the event.
Board skills review
In November 2024, the Board conducted a
comprehensive review of Director skills and experience,
using a third-party assessment tool. The results largely
aligned with the previous skills matrix, which helped
toconfirm the suitability and accuracy of our prior
assessments. A valuable cross-check was introduced
through the tool, comparing Directors’ self-assessed
skills and experience with those attributed by their
fellow Directors. This highlighted some areas where
Directors hadunder-rated themselves compared to
their peers’ assessments and the revised matrix (set
out on page 95) reflects this more objective approach.
Each Director received a copy of their individual
assessment and peer-assessed results for comparison.
The skills and experience matrix is a key tool for the
Nomination Committee to ensure that retiring
Directors’ key skills are adequately substituted by
current or incoming Directors, and enables significant
gaps tobe replaced through internal experts, external
advisors or through new Board appointments.
104 Halma plc | Annual Report and Accounts 2025
Section 172 statement and decision‑making
S.172(1) element and related disclosures
(a)
The likely consequences of any
decisioninthelong‑term
Key decisions made in the year on page 106
Sustainable Growth Model on page 19
Business reviews on page 36
Strategic Report on page 2
(b)
The interest of the company’s employees
Sustainability on page 54
Stakeholder engagement on page 48
Governance Report on page 93
Non‑financial & sustainability information statement on page 64
Remuneration Report on page 123
(c)
The need to foster the company’s
businessrelationships with suppliers,
customersand others
Non‑financial & sustainability information statement on page 64
Stakeholder engagement on page 48
Business reviews on page 36
(d)
The impact of the company’s operations
on the community and environment
Sustainability on page 54
TCFD Statement on page 79
(e)
The desirability of the company
maintainingareputation for high
standardsofbusiness conduct
Sustainable Growth Model on page 19
Risk management and internal control on page 68
Non‑financial & sustainability information statement on page 64
(f)
The need to act fairly as between
membersofthe company
Stakeholder engagement on page 48
Governance Report on page 93
Directors’ Report on page 147
Throughout the year the Directors 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.
Halma plc | Annual Report and Accounts 2025 105
Financial Statements Other InformationStrategic Report Governance Report
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.
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 was 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 46th 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 seven acquisitions during the year,
four 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 know-how 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.
CFO Succession
– Shareholders and investors.
– Our companies.
– Our people.
– Acquisition prospects
andbusiness partners.
The Board considered a range of factors during the
succession planning process for the Chief Financial
Officer, including ongoing alignment with the Group’s
purpose, culture and Sustainable Growth Model.
TheBoard was mindful throughout its decision-making
process of the long-term impact that such a decision
would have on the future success of the Company,
including through investor and employee sentiment.
Strong talent and leadership is key to
Halma’s ongoing success and delivery
ofstrategy. Ensuring fulfilment of key
leadership roles will position Halma to
continue to produce strong returns and
growth for our shareholders and wider
stakeholders, whilst staying true to our
established Sustainable Growth Model.
Section 172 statement and decision‑making continued
106 Halma plc | Annual Report and Accounts 2025
Board oversight of our culture
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. The inclusive
culture across our business brings competitive advantage
to the Group. 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.
See page 21 for more information on Halma’s DNA and cultural and
organisational genes.
Elements of our culture
Our culture
DNA
Sustainable
Growth Model
Purpose
Strategy
Behaviours
Diversity, Equity
& Inclusion
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 73% overall employee engagement score
achieved from our annual engagement survey this year,
which 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.
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 and periodically thereafter.
The Board takes health and safety matters seriously
andaccident statistics and incident analysis are reported
to the Board at each meeting. This helps the Board to
assess the effectiveness of health and safety practices
and culture within the Group.
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 54
Halma plc | Annual Report and Accounts 2025 107
Financial Statements Other InformationStrategic Report Governance Report
How the Board monitors culture
Board oversight of our culture continued
Company site visits
andemployee events
Monitoring and insight
Our executive and non‑executive
Directors undertake sitevisits to our
companies throughout the year,
whichprovide first‑hand experience of
the workplace environment, health and
safety priorities and how our culture
isembedded throughout the Group.
Directors engaged with employees on
matters such as executive and wider
workforce remuneration, company
culture, purpose, health and safety
anddiversity, equity and inclusion.
Directors report their observations
fromall sitevisits to the Board and
tothe relevant Sector Chief Executive
and Divisional Chief Executive.
Ournon‑executive Directors also
hadthe opportunity to interact with
company boards at Accelerate Halma
in October2024.
Read more: 50
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.
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.
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.
Read more on the outcomes of our
employee engagement survey
on page 58
Employee engagement KPI, page 30
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.
Read our Code of Conduct
atwww.halma.com.
Halma plc Board
Feedback provided to
the Board and management
after each visit
All cases reported to
the Board and monitored
throughout the process
Reporting on process
and review of outcomes
Policies provided for
review periodically
Reporting, presentations,
discussion
Approval of share plan grants,
Board seeks shareholder
authority when needed
108 Halma plc | Annual Report and Accounts 2025
Board engagement with our employees
Provision 5 of 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 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 107
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 48
Our employee engagement framework
Board
The Board employs methods which include company site visits, attending
employee events such as the Accelerate Halma 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.
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 subsector 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.
Halma plc | Annual Report and Accounts 2025 109
Financial Statements Other InformationStrategic Report Governance Report
Nomination Committee report
Committee membership and responsibilities
The Committee comprises the Chair and all
independent non‑executive Directors. The attendance
at each Committee meeting for the year ended
31 March 2025 can be found on page 102.
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.
Committee activities 2024/25
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, Executive Board
andone level below.
– Working with external search consultants,
LygonGroup, to seek new non‑executive director
candidates as part of the Committee’s planning
for directors who are/were serving out their
finalterm.
– In line with the Committee’s succession planning
and assessment process, recommending to the
Board the appointments of Carole Cran as Chief
Financial Officer Designate, Sharmila Nebhrajani
asAudit Committee Chair, and Barbara Thoralfsson
and Hudson La Force as non‑executive Directors.
– Continuing the focus on increasing diversity
throughout the organisation.
– Refreshing the Board skills and experience matrix.
– Following the individual Director evaluations,
recommending the election and re‑election
ofDirectors standing at the 2025 Annual
GeneralMeeting.
Board and Executive Board composition
Our Board comprises an independent Chair, six
non‑executive Directors and three executive Directors
and each Board member brings a variety of skills,
knowledge, experience and diverse thinking. The
Nomination 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 set out on page 95 outlines the core skills
andexperience that each Director has and also identifies
where particular Directors are considered to have
advanced expertise in a certain area. This matrix
wasrefreshed in 2024/25 with the use of an online
assessment tool, through which Directors were asked
torate their own and each other’s areas of experience
and expertise. The peer‑adjusted capability assessment
ledtoan uplift in some Director experience ratings.
The Executive Board comprises the three executive
Directors plus six 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 96 to 99 and full biographies are available
onour website at www.halma.com.
Board and Executive Board diversity
The Board recognises the many benefits of building a
diverse leadership team and the tables on page 111 set
out gender, ethnic and age diversity of the Board and
Executive Board at the date of this Report. The Company
has collected the diversity data used for these purposes
from each individual on a voluntary basis.
The Committee is pleased to report that during the
financial year ended 31 March 2025 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 two individuals on the Board are from
aminority ethnic background.
With effect from 1 April 2025, Carole Cran became
ChiefFinancial Officer, adding another woman toour
senior Board positions.
Dame Louise Makin
Nomination
Committee Chair
110 Halma plc | Annual Report and Accounts 2025
Our Board Diversity Policy, which is available at
www.halma.com, was updated in June 2024 and
outlines our commitment to the targets set by the FTSE
Women Leaders Review on gender diversity and goes
beyond the ethnicity targets recommended by the
ParkerReview. 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, prior to the publication
of the Parker Review’s original report in October 2017.
Wetook the opportunity in our June 2024 Policy to
gobeyond the Parker Review recommendation,
bycommitting to maintain our current composition
ofatleast two ethnically diverse Directors on the Board.
This more closely aligns to ethnic diversity representation
in England & Wales, based on the 2021 Census data,
which highlights that over 18% of the population
identified as belonging to an ethnically diverse group.
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. Our Board Diversity Policy
targets at least 20% of our UK senior management
positions (defined as the Executive Board and their direct
reports, excluding administration staff) being occupied
by ethnically diverse executives by December 2027.
Asat31 March 2025, in line with the Parker Review’s
updated definition, the percentage is 21%.
Board and Executive Board – Gender Diversity as at 12 June 2025
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 5 50% 1 3 33%
Women 5 50% 3 6 67%
Board and Executive Board – Ethnic Diversity as at 12 June 2025
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) 8 80% 4 5 56%
Mixed/Multiple Ethnic groups – – – 1 11%
Asian/Asian British 2 20% – 2 22%
Black/African/Caribbean/Black British – – – 1 11%
Other ethnic group, including Arab – – – – –
Board and Executive Board – Age Diversity as at 12 June 2025
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 1 10% 1 3 33%
50–59 5 50% 1 6 67%
60–69 4 40% 2 – –
70–79 – – – – –
Halma plc | Annual Report and Accounts 2025 111
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,
which was utilised this year for the appointment of Carole
Cran as Chief Financial Officer, and Barbara Thoralfsson
and Hudson La Force as non‑executive Directors.
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 2025, the Committee used
the services of executive search consultancy, Lygon
Group – who are not connected to the Company or
any Halma Director – to benchmark potential internal
candidates and provide a benchmark of external
candidates for the Chief Financial Officer role and
undertake the search for two non‑executive directors.
– 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 Chief Talent,
Cultureand Communications Executive. 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 obtained 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 the Board will remain
sufficiently 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.
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 conference and other
Company events throughout the year.
A fresh approach to the induction programme for 2025,
utilising an induction portal, 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 out
their understanding of the Group through site visits
andmeetings with internal and external stakeholders.
Abriefing on UK director statutory duties and listed
company regulation is provided to new Directors and
annual refresher training is provided by the Company
Secretary at the Board.
A further addition to our onboarding programme,
thisyear, is Chair mentoring for new Directors. This aims
to clarify their role and help them to navigate the
collaborative and supportive Board culture and
boardroom dynamics, while balancing the need for
robust challenge and debate.
Executive Directors may undertake tailored professional
development as part of their onboarding plan, such as
business management, personal development or
mentoring programmes. Non‑executive Directors
generally own their own development but the Company
supports their learning and development through
internal and external speakers at the Board Strategy
meeting and periodically at the Board throughout the
year. At least annually, the training and development
needs ofthe Board, and for each Director, are reviewed
by the Chair.
Nomination Committee report continued
112 Halma plc | Annual Report and Accounts 2025
The challenge
New Directors often need time to understand Halma’s
decentralised business model and Board culture. Halma
comprises of nearly 50 autonomous companies across
three sectors, serving various end markets. While many
directors have experience from other UK listed company
boards, the role at Halma is distinct. A fundamental role
of a Halma non‑executive Director is to support the
management team in evolving the strategy, growing
thebusiness and delivering on our purpose, to benefit
keystakeholders. Upskilling new Directors on our
Boardculture and dynamics, while progressing their
understanding of ourbusiness model through visits
toour entrepreneurial businesses, presents a challenge
for onboarding new Directors quickly.
The aim
To enable new Directors to gain a deeper and quicker
understanding of our Group, business model, culture,
Board and boardroom dynamics and be clear on their
role, to enable them to confidently and effectively
contribute to the Board.
The solution
This year, we have enhanced our tailored induction
programmes and onboarding plans with a structured,
modular and engaging onboarding portal. The induction
site includes videos, presentations, briefing notes and
internal and external resources. These materials provide
financial and non‑financial information on our: purpose;
history and growth model; leadership; companies and
sectors; investment proposition; external perceptions
andinsights; approach to talent; remuneration design;
governance and riskmanagement; Board culture and
boardroom dynamics.
The site was created using existing leadership resources
and expanded with new, bespoke materials. In January
2025, the portal was shared with the Board and
Executive Board, to gather feedback and iterate the
content and design. Carole Cran used elements of
thesite for her onboarding into the CFO role. We are
confident that the site will greatly enhance the
onboarding experience for our two newly appointed
non‑executive Directors.
A fresh approach to Director onboarding
Governance Report Financial Statements Other InformationStrategic Report
Halma plc | Annual Report and Accounts 2025 113
Governance Report
Year 1
2025 internal
evaluation
Year 2
2026 internal
evaluation
Year 3
2027 external
evaluation
Progress on 2024 actions
A summary of the progress made on the recommendations put forward by Independent Board Evaluation (IBE)
in2024 is set out below.
Recommendation Progress
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 have
beenintroduced intothe Director induction process.
Additionally, we have built on our induction offering with
the introduction of an interactive online portal fornew
Directors, which provides a suite of induction materials
tosupplement targeted meetings with key people.
Post‑decision reviews
More formally reflect on key decisions made by the Board
overthe year.
A specific decision reflection session was carried out
inSeptember 2024. Read about this on page 104.
Employee engagement
Consider how to supplement the Board’s employee
engagement mechanism, which works well for Halma.
Directors continued to carry out site visits and
participated fully in theAccelerate conference, with
non‑executive Directors participating in panel sessions
and a range of smaller group sessions.
Annual Board and Committee reviews
The Committee reviews the process and output from theannual Board and Committee evaluations. The process also
involves a review of the performance of each Director through individual meetings held with theChair. For the Chair,
an appraisal is undertaken by the non‑executive Directors collectively and fed back via theSenior Independent Director.
The Board collectively 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 also undertakes its own effectiveness
review 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 and that of the Board are set out below.
Nomination Committee report continued
114 Halma plc | Annual Report and Accounts 2025
2024/25 Effectiveness Review
The Committee normally utilises an external evaluator
ona triennial basis and the Chair, with the support of the
Company Secretary, formulates a bespoke questionnaire
in the two other years. The last externally‑facilitated
review was carried out by IBE in 2024, with internal
reviews undertaken in 2023 and 2022.
This year’s internal review was facilitated using an online
tool which allowed for greater analysis of the common
themes emanating from the questionnaire. We ensure
that the internal exercise is thorough and allows tailored
questions to be asked on areas particularly relevant to
Halma at that time, or on topics that have been raised
during the year. Examples of topics covered over recent
years include Board succession, Boardroom dynamics,
strategic progress in specific areas and the level of
challenge and support that has been provided by
thenon‑executive Directors. These questions are
supplemented by standing governance questions
onBoard and Committee structure, Director skills,
experience and diversity, Board and Committee
effectiveness, strategy and risk.
2025 Nomination Committee review outcomes
The Committee’s own effectiveness review concluded that:
– The overall performance of the Committee is effective
with good quality discussion.
– There is a good mix of thinking styles and the
Committee has a healthy culture.
– The frequency and duration of the meetings
isappropriate and papers and presentations
areofhighquality.
– The Chair provides effective leadership,
particularlyaround succession.
– Relationships with management are strong.
2025 Board review outcomes
The Board’s effectiveness review confirmed that the
Directors believe that:
– The Board is operating effectively with strong
leadership from the Chair.
– The Board’s culture is positive with mutual trust
andrespect between individuals.
– The Board has healthy debates which lead to good
decision‑making.
– Stakeholder concerns are understood and there
isaproactive approach to engagement.
– Strong relationships have been formed amongst
theBoard members, while independence of the
non‑executives Directors from management
ismaintained.
– The papers received by the Board and Committees
areclear and of a high standard.
The proposed actions agreed are as follows:
– Hold a session for Directors to discuss and reflect on
what the role of a non‑executive Director is in Halma
and the circumstances where the Board has been
mosthelpful and impactful, as well as any areas
forimprovement.
– Continue to assess how effective the onboarding
andinduction processes are for new Directors,
withspecific input to be sought from the newly
appointed non‑executive Directors.
Following the annual effectiveness review, 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 2025 AGM.
Dame Louise Makin
Committee Chair
For and on behalf of the Committee, 12 June 2025
Halma plc | Annual Report and Accounts 2025 115
Financial Statements Other InformationStrategic Report Governance Report
Committee membership and responsibilities
The Committee comprises all six independent
non‑executive Directors. The attendance at each
Committee meeting for the year ended 31 March
2025can be found on page 102. Biographies for all
Committee members are set out onpages 96 to 99.
The Committee operates under written terms of
reference, which are reviewed annually and are available
at 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.
Committee activities 2024/25
– Reviewing Half Year Results and Annual Report
and Accounts, considering key accounting
judgements and estimates.
– Approving going concern and viability statements.
– Reviewing risk and internal control processes and
principal and emerging risks.
– Reviewing internal audit and assurance processes,
output of the Internal Audit effectiveness review
and approving the Internal Audit Charter.
– Reviewing and monitoring whistleblowing, compliance
and bribery procedures and reports raised.
– Receiving updates on sustainability regulation,
including CSRD reporting implications for Halma,
and reviewing TCFD disclosures.
– Monitoring progress on implementation of the new
Enterprise Performance Management (EPM) system.
– Agreeing the external Auditor fee and confirming
independence and effectiveness.
– Receiving regular updates on preparatory work in
relation to Provision 29 under the 2024 UK Corporate
Governance Code.
– Reviewing output of the Financial Reporting Council’s
AQR report for 2023/24, and receiving updates on
theFRC’s review of Halma’s audit for the year ended
31 March 2024.
Committee composition
Carole Cran stepped down as Committee Chair
inJanuary 2025, and, in line with the Committee’s
succession plans, Sharmila assumed the role of
Committee Chair. Sharmila met with key individuals
across the Group and the wider business as part
ofhertransition to the role of Committee Chair.
2025 Committee review outcomes
An evaluation of the Committee’s effectiveness is
undertaken each year, and the findings are reported
tothe Board. In 2025, this evaluation took the form
ofaninternal evaluation, which confirmed that the
Committee is working effectively and that Committee
members considered ittobe exercising good oversight
ofthe reporting andcontrols environment, taking full
account of the autonomous model. Actions agreed
bythe Committee included broadening the depth
ofdiscussions on key areas, pertinent to Halma,
throughdedicated sessions, and further enriching
theonboarding process for new Committee members.
FRC’s Audit Quality Review
During 2024, the Audit Quality Team (AQT) of the FRC
conducted a review of PwC’s audit of the Group’s
Financial Statements for the year ended 31 March 2024.
In March 2025, the AQT provided their final report and,
asChair of the Committee, Sharmila acknowledged the
findings with the FRC. The report assessed the audit as
good, the highest rating achievable, with no reportable
findings from the AQT’s inspection.
Financial Statements and significant
accounting matters
The Committee considered the key judgements and
estimates made inrelation to the Group’s financial
statements, set out on the following page, and discussed
these with management during the year and prior to the
publication of the Group’s results for the half year ended
30 September 2024 and the full year ended 31 March 2025.
Following the review of presentations and reports from
management, the Committee is satisfied that the
financial statements appropriately address the key
accounting judgements and estimates 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 matters withthe external Auditor
(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 Auditor.
During the implementation of, and transition to, the new
EPM system during the year, the Committee monitored
and reviewed the quality of reporting and the status of
the Auditors work over the implementation to support
their opinion.
Sharmila Nebhrajani OBE
Committee Chair
Audit Committee report
116 Halma plc | Annual Report and Accounts 2025
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.
– Considering the CGU groups to which the Group’s seven acquisitions were attributed,
and in particular 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.
– Reviewing 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 seven
acquisitions in the year, particularly in relation to the material/larger acquisitions
ofJam TopCo Limited (MK Test), G.F.E. Global Fire Equipment – Montagem
deEquipamento Electronico S.A. (GFE), Hathorn Corporation Inc. (Hathorn),
andLamidey Noury Medical S.A.
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 2025, the treatment and valuation of the contingent
consideration provisions in relation to Visiometrics, Infinite Leap, Sewertronics
andRovers.
Judgements and estimates
involved in valuing defined
benefit pension plans.
– Assessing the assumptions used in determining pension obligations, and considering
the treatment of the movement in pension plan assets, predominantly resulting from
the purchase of insurance contracts during the year ended 31 March 2025, to reduce
net defined benefit plan liabilities.
– 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 and the carrying value
oftax provisions and uncertainties, monitoring tax legislative developments and tax
audits globally.
– 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.
– Monitoring the progress and impact of the legal entity rationalisation programme.
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.
Halma plc | Annual Report and Accounts 2025 117
Financial Statements Other InformationStrategic Report Governance Report
External Auditor
The Committee monitors the effectiveness of the
Auditorthroughout the year and annually conducts an
evaluation of the external audit, by way ofatailored
online questionnaire, further details of whichare set out
on page 119. The assessment found no significant
concerns and the insights from the questionnaire 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 2025 Annual General
Meeting (AGM).
The proposal to reappoint PwC as Auditors for the
yearending 31 March 2026, isinthe best interests of
shareholders and the Company. 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 for the coming period.
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.
PwC were appointed Auditor to the Company at the
AGM in 2017. Christopher Richmond was appointed
Senior Statutory Auditor for the financial period
commencing 1 April 2022.
During 2025, the Committee, with the support of
executive management, will design and implement
anappropriate audit tender process for the audit of the
financial period commencing 1 April 2027, ensuring that
the determined criteria are met. The Committee intends
torecommend a preferred audit firm to the Board
in2026, with a proposed recommendation being
puttoshareholders for approval at the 2027 AGM.
Detailsoftheaudit tender process will be provided in
Halma’s Audit Committee Report for the year ending
31 March2026. Timings of the audit tender process
havebeen devised to ensure adequate time is given
tomeet the required independence provisions.
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.
During the year, four 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, in respect of Elfab
Limited, R&D activities for FY24 for Italian based entity,
Sensitron SRL, and post‑acquisition, advice relating
toR&D tax credits for GFE, which is permissible since
services ceased within the three‑month transition
window. Additionally, PwC provided access to their
technical guidance toolkit, for a total fee of c.£1,400.
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 2025 were £3.2m (2024: £3.2m) and permitted
audit‑related service fees were £0.1m (2024: £0.1m).
Othernon‑audit services totalled less than £0.1m in
eachof the current and preceding year. The total of
audit‑related and non‑audit related services for the
yeartotalled c.6% of three‑year average audit fees,
significantly below the limit of 70% required by the Policy.
Audit Committee report continued
118 Halma plc | Annual Report and Accounts 2025
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
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
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 provided to the Committee and PwC.
Outcome:
– Following a review by the Committee of the output
from the 2025 questionnaire and the AQR findings,
the Committee confirmed that PwC is effective
asAuditor to the Company and recommends to
theBoard their reappointment as Auditor to be
proposed at the 2025 AGM.
Evaluation of the effectiveness
and quality of the external Auditor
The effectiveness of the Auditor is monitored
throughoutthe year, including through:
– FRC’s PwC Audit Quality Inspection and
Supervision report 2023/24 – the Committee
reviewed the results of the FRC’s PwC Audit Quality
Inspection and Supervision report 2023/24 during the
year and noted that the FRC had concluded that PwC
continue to prioritise achieving a high quality audit.
– Progress against audit plan and strategy – the
Committee 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.
– Regular private sessions – the Committee hold
regular private sessions with the Auditor, without
management present, to facilitate opendialogue.
– 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 will rotate Senior
Statutory Auditor at least every five years, the most
recent rotation of which took place in2022, with a new
audit partner being 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.
Halma plc | Annual Report and Accounts 2025 119
Financial Statements Other InformationStrategic Report Governance Report
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. The Committee also monitors the
framework in place to manage cyber risk, while the
Board is responsible for reviewing cyber risk and
mitigating actions. 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 69 and
therisk management and internal control processes
aredetailed on pages 68 to 71.
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 Sector Chief Financial Officers, Head
ofTax & Treasury, Head of Sustainability and Director
of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 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 70 to 78, 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.
Throughout the year, the Steering Committee,
established during 2023, in anticipation of the changes
tointernal controls reporting under the 2024 Code,
hascontinued its work to review Halma’s material
controls and assurance. Provision 29 of the 2024Code
willbe effective for Halma from 1 April 2026 and the
Committee, through itsoversight of the work undertaken
by the Steering Committee, is confident that they are
well placed to effectively report under Provision 29 of the
2024 Code from this period.
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 64.
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.
Audit Committee report continued
120 Halma plc | Annual Report and Accounts 2025
Climate‑related disclosures
The Committee has overall responsibility for approving
the disclosures made under the climate‑related UK
Listing Rule 6.6.6R(8). The Committee has continued
toreceive updates during the year on climate‑related
disclosures and reporting. Further information on our
TCFD disclosures can be found on page 79.
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shorter verbal walkthroughs to give assurance
touchpoints that take place mid‑way between full audits
and arealso undertaken to provide an additional
assurance snapshot. These 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, for high priority control,
and18 months for medium andlower priority controls.
The Committee receives regular reports from Internal
Audit & Assurance that identify any significant control
orcompliance weakness, or other risk that requires
immediate management attention. The report gives
background to any weaknesses, mitigating controls
andactions being taken to address the findings.
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 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 annually 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.
– Regular private sessions – the Committee hold
regular private sessions with the Director of Internal
Audit and Assurance, without management present,
to facilitate open dialogue.
A summary of the process and key findings is set out
onthe following page.
Halma plc | Annual Report and Accounts 2025 121
Financial Statements Other InformationStrategic Report Governance Report
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
Questionnaire completed by:
– Board members
– Executive Board members
– Sector CFOs
– Group Financial Controller
– Chief Information Security Officer
– Divisional Chief Executives
– Company Secretary
– PwC Audit Partner
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.
Outcome:
– Following a review by the Committee of the output
of the 2025 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.
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 151.
Sharmila Nebhrajani OBE
Committee Chair
For and on behalf of the Committee, 12 June 2025
Audit Committee report continued
122 Halma plc | Annual Report and Accounts 2025
Remuneration Committee report
Committee membership and responsibilities
The Committee comprises all independent
non‑executive Directors, with Jo Harlow as Chair.
Theattendance at each Committee meeting for the
year ended 31 March 2025 can be found on page 102.
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.
Committee activities 2024/25
Principal activities during the year:
– Reviewed and approved the 2024 Directors’
Remuneration Report, including narrative on
theRealLiving Wage, GenderPay Gap and the
ChiefExecutive pay ratio.
– Approved the 2024 annual bonus payout and
Executive Share Plan (ESP) vesting.
– Reviewed salaries for the Executive Board effective
1 June 2024, taking the budgets for salary reviews
across the Group into consideration.
– Approved the 2025 annual bonus and ESP targets.
– Discussed wider workforce remuneration, including
an update on the 401k retirement offering for our
USemployees and the impact of the change in
UKNational Insurance contributions.
– Discussed and approved the removal of energy
productivity as the climate change metric in the
annual bonus from 2026 onwards.
– Confirmed that Diversity, Equity and Inclusion
would remain as a non‑financial annual bonus
metric for 2026.
– Received executive remuneration governance
and market updates from our remuneration
consultants, WTW.
On behalf of the Board, I am pleased to present our
Directors’ Remuneration Report for the year ended
31 March 2025.
The Directors’ Remuneration Report provides a
comprehensive overview of our remuneration framework,
detailing how the Remuneration Policy has been
implemented over the year to 31 March 2025 and
outlining theintended arrangements for the 2026
financial year.
On behalf of the Committee, I would like to express my
thanks to shareholders for their overwhelming support
with 94.3% of the AGM votes cast in favour of the
Remuneration Policy.
The context of remuneration in 2025
Our performance
I am pleased to present this report against a backdrop
ofexceptionally strong performance, as Halma reports
its 22nd consecutive year of profit growth, delivering
46consecutive years of dividend growth of 5% or more.
We continue to see a story of growth and success in
acontinually challenging macroenvironment. Our total
shareholder return, as seen on page 139 of this report,
has continued to outperform the FTSE 100 index, with
aninvestment of £100 in Halma shares on 31 March 2015
worth £408.5 on 31 March 2025 compared to £186.1 for
asimilar investment in the FTSE 100 index.
Other highlights are:
– Revenue grew by 10.5% and Adjusted
1
EBIT grew
by14.7%.
– Adjusted
1
earnings per share increased by 14.4%.
– Return on Total Invested Capital (ROTIC)
1
of 15.0%
remained well above our Weighted Average Cost
ofCapital estimated at 9.8%.
Our people
Halma continues to meet its commitment to pay the
Real Living Wage across its UK workforce with effect
from 1 June 2025.
We are moving closer towards gender balance in our
business with improved representation for women at
senior leadership level. 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 to 12.1% as at 31 March 2025 from
15.7% as at 31 March 2024. Details of our progress in
thisarea can be found onpage 59 in the Support our
peoplesection.
Our median CEO pay ratio is 133:1 and details can be
found on page 137. The Group Chief Executive’s total
remuneration comprises a significant proportion of
variable pay.
1 See note 3 to the Accounts for alternative performance measures
andreconciliations to statutory measures.
Jo Harlow
Remuneration
Committee Chair
Halma plc | Annual Report and Accounts 2025 123
Financial Statements Other InformationStrategic Report Governance Report
With our decentralised operating model and the
geographic spread of our companies, meaningful
comparisons of executive pay against wider workforce
compensation are complex. The Committee is mindful
ofreward practices across the Group when setting and
implementing its approach to executive remuneration.
Specifically, the Committee receives data on the
remuneration structure for management tiers below
theExecutive Directors and uses this information to
ensure as much consistency of approach as is possible.
During the year, the Committee received updates on
arange of employee pay and benefit practices including
the 401k retirement offering available to US employees
and the impact of the changes to UK National Insurance
effective April 2025.
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 and presented at
theAccelerate leadership conference in October 2024,
engaging directly with the leaders of Halma companies.
My colleagues on the Committee and I visited a total
oftwenty Halma companies and were able to discuss
employee engagement, company culture and executive
remuneration at Halma. We also listened to concerns
raised and discussed positive feedback on the range
ofbenefits offered.
Chief Financial Officer transition
On 7 January 2025, it was announced that Steve Gunning
would step down from the role of Chief Financial Officer
and that Carole Cran would be CFO Designate from
8 January 2025. Steve stepped down as Chief Financial
Officer on 31 March 2025, when Carole took on the role.
Carole is a very experienced Chief Financial Officer and
served as non‑executive Director at Halma for nine years
and as Audit Committee Chair for most of this period.
Steve will retire from Halma with effect from 7 January
2026 and the Committee decided to treat him as a good
leaver for the purposes of incentives, consistent with
Halma’s policies. Steve’s and Carole’s remuneration
arrangements are disclosed on pages 131 and 132 of this
report. Both sets of arrangements are in accordance
with the Remuneration Policy.
Remuneration outcomes for 2025
In light of the context set out above, the Committee
made the following decisions in respect of Executive Pay.
Bonus
Bonuses for 2025 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: Improvement in the cumulative
performance in energyproductivity (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 an overall payout of 95% of
maximum. As per the Policy, one third of the total
payout will be deferred into shares which become
available after two years:
Metric
(Weighting)
EVA
(90%)
DEI
(5%)
Climate
Change
(5%)
Weighted
total
Achievement as
a% of maximum
outcome
100% 0% 100% 95%
Executive Share Plan (ESP)
For the 2022 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)¹.
The three‑year performance for average ROTIC (14.71%)
andAdjusted EPS growth over the three‑year period
(13.52%) have been strong and result in 85.72% vesting
assetout in the table below.
Metric
(Weighting)
Adjusted EPS
Growth
(50%)
ROTIC
(50%) Total
Vesting achievement
as a % of maximum
outcome
50.00% 35.72% 85.72%
Remuneration Committee report continued
1 See note 3 to the Accounts for alternative performance measures
andreconciliations to statutory measures.
124 Halma plc | Annual Report and Accounts 2025
The Committee considers the targets for this award
tobe stretching and is confident that the measures
incentivise shareholder value creation.
The Committee reviewed the topic of windfall gains
forthe 2022 grant and it determined that it was not
aconcern because the vested outcome reflects true
business performance. It was therefore of the view
thatthe formulaic vesting should proceed without
anyadjustments.
In line with the 2024 Corporate Governance Code
(the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 2025
isafair reflection of performance over the period and
nouse of discretion iswarranted.
Chair and non-executive Director Fees
The Committee carried out a benchmarking review
ofthe Chair’s fees and the Committee approved an
increase of 3.0% and details ofthis can befound on
page 137.
Following a benchmarking review, the Board agreed to
increase the base fees for the non‑executive Directors by
2.6% with effect from 1 January 2025. The increases were
made to reflect the growing complexity of the business,
along with the increased time commitments of the
individuals. The specific Senior Independent Director
andCommittee Chair fees were left unchanged as
thesestillalign with the benchmark, which is the median
oftheFTSE 100 (excluding financial services).
Details of this change can be found on page 137.
Remuneration arrangements for 2026
Salary and pension arrangements
We benchmark Halma Executive Directors against the
median of the FTSE 100 (excluding financial services) to
ensure Halma maintains the level of pay that supports
the current talent retention and succession needs as well
as the company’s growth ambitions.
As part of the annual salary review approach for
Executive Directors, the Committee considered multiple
factors including salary movements across the wider
workforce, individual performance and external
marketpositioning.
The Group Chief Executive, will receive a salary increase
of 8%, which has been awarded to reflect Marc’s
outstanding leadership and the Group’s exceptional
operational performance across sectors and companies.
This increase ensures that Marc’s base salary is broadly
inline with the median of the FTSE 100, excluding
financial services. Target total pay, including bonus and
long‑term incentives, remains slightly below median.
The Chief Talent, Culture and Communications
Executive, JenniferWard, will receive a salary increase of
8%. Thisincrease has been awarded given her sustained
strong performance in the role and the success of the
business over the year. This increase will mean Jennifer’s
base salary remains competitively positioned against
themedian of the FTSE 100, excluding financial services,
considering the nature and scope of her responsibilities.
The Committee is pleased with Carole Cran’s
performance as Chief Financial Officer and as such, she
will receive an increase of 4%, inline with the average
increase awarded to the widerworkforce.
The Committee was in unanimous support of these
salary increases, particularly in the context of the very
strong business performance amidst an increasingly
complex geopolitical and economic landscape. In the
context of a highly competitive global market for senior
talent, the Committee is aware of the need to ensure
that the Executive Directors remain competitive on
atotal pay basis to be able to attract executives of
thecalibre required to deliver the Group’s ambitious
strategic objectives.
Role
Current
position
Position with effect
from 1 June 2025
Group Chief Executive £940,500 £1,015,800
Chief Financial Officer £618,000 £642,800
Chief Talent, Culture and
CommunicationsExecutive
£488,020 £527,100
Pension arrangements for Executive Directors will
remainaligned with the wider UK workforce at 10.5%
ofbase salary.
Halma plc | Annual Report and Accounts 2025 125
Financial Statements Other InformationStrategic Report Governance Report
Annual Bonus
Since 1 April 2022, bonuses for the Halma Executive
Directors have been based on the three metrics below:
– DEI: Gender balance on the boards of Halma
companies, representing 5% of overall bonus
opportunity.
– Climate Change: Improvement in cumulative
performance in energyproductivity (Revenue/
energyconsumed), representing 5% of overall
bonusopportunity.
– Economic Value Added (EVA): Performance against
aweighted average EVA target, representing 90%
ofoverall bonus opportunity.
For DEI, wefirmly believe that building inclusive
businesses, underpinned by diverse perspectives,
isfundamental to our unique culture, which helps
accelerate our growth and enhance our competitive
edge to win for the benefit of all stakeholders. As such,
we will continue to include this target in remuneration
forthe 2026 financial year, in support of our over‑arching
ambition to achieve 40‑60% gender representation on
the boards ofHalma companies by 31 March 2030.
Halma’s companies make the world a safer, cleaner
andhealthier place by providing solutions to many of the
key challenges facing the world today. In 2022, Halma
introduced a Sustainability Framework, including a target
to reduce Scope 1 & 2 emissions by 42% by 2030 from
our2020 baseline and achieve Net Zero for Scope 1 & 2
emissions by 2040. Although our Scope 1 & 2 emissions
are small, they are within our direct control, and we
wanted to focus on reducing those emissions in the
nearterm while we worked to quantify and understand
our larger Scope 3 emissions.
Additionally, the Board understands the extent of
thechallenge and the importance of embedding
sustainability into culture and mindset, using levers such
as incentive metrics. Specifically forClimate Change,
energy productivity is a metric thatunderpins the
achievement of our Scope 1 & 2 science‑based and
NetZero targets and is aligned with the sustainability
pillar to Protect our Environment.
Using energy productivity as the climate change metric
has led to several positive developments, including
increased focus on energy usage and improved data
quality. However, we have already exceeded our
near‑term Scope 1 & 2 goal and as such, improving
energy productivity is no longer a key driver of material
sustainability‑related progress. This has led to increasing
difficulty in setting targets.
This was why in last year’s Remuneration Report,
Ihighlighted that we would review the appropriateness
of the energy productivity metric for remuneration.
Assuch, over the 2025 financial year, alongside the
option of retaining energy productivity, the Committee
considered the materiality, auditability and measurability
of potential alternatives.
The Committee had input from the Halma Sustainability
team and a cross‑functional working group and as part
of the conversations, the nature and diversity of our
companies were considered in detail, alongside the
complexities of rolling up individual company targets for
circa 50 individual businesses to our Executive Directors.
The conclusions of the review are as follows:
– Improving energy productivity remains an ongoing goal
for all our companies. However, as our sustainability
approach has matured, we are more focused on other
sustainability opportunities and challenges faced by
our companies.
– As part of our maturing approach to sustainability,
every Halma company now has its own individual
Sustainability Action Plan (SAP), which includes
sustainability goals most relevant to them. I am proud
of the change in focus and mindset we have seen
across Halma companies, partly as a result of the
inclusion of environmental remuneration.
– The uniqueness of our companies and the diverse
climate issues they are trying to tackle makes it
difficult to set one metric that would be used across
our senior leadership population.
Remuneration Committee report continued
126 Halma plc | Annual Report and Accounts 2025
Given the conclusions above, the Committee decided
that the climate change metric would no longer be used
in the annual bonus.
We will continue to use EVA as the financial performance
metric for the annual bonus as it is aligned with our
business model and our focus on delivering sustainable
growth alongside consistently high returns. We also
continue to believe that good sustainability performance
is inextricably linked to long‑term sustainable growth
andreturns and this is why we have reallocated the 5%
weighting previously allocated to energy productivity
toEVA.
As such, effective 1 April 2025, the overall bonus
opportunity for our senior leaders including our
ExecutiveDirectors will be:
– DEI: Gender balance on the boards of Halma
companies, representing 5% of overall
bonusopportunity.
– Economic Value Added (EVA): Performance against
aweighted average EVA target, representing 95%
ofoverall bonus opportunity.
ESP
ESP awards will be granted as normal in June 2025, using
Adjusted
1
EPS growth and ROTIC¹ 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.
The Policy provides flexibility to include non‑financial
measures in both the ESP and the annual bonus, with up
to 20% of the overall opportunity available to be utilised
for this purpose. Reflecting the continuing development
of our sustainability approach, we have chosen to use
a5% weighting on non‑financial metrics in the annual
bonus only and we will continue to review this over the
financial year.
Closing remarks
The Committee’s performance was assessed as part of
the annual evaluation process. I am pleased to report
that 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. Thanks also to our
executive team for their continued efforts to deliver
exceptional value to our stakeholders.
I hope that you find this report helpful and look forward
to your support at the Annual General Meeting.
Jo Harlow
Committee Chair
For and on behalf of the Committee, 12 June 2025
1 See note 3 to the Accounts for alternative performance measures
andreconciliations to statutory measures.
Halma plc | Annual Report and Accounts 2025 127
Financial Statements Other InformationStrategic Report Governance Report
Remuneration at a glance
We have a strong pay-for-performance culture that is aligned
to our Sustainable Growth Model, focused on sustaining
ourcompanies’ growth and returns over the long term,
whiledelivering strong performance in the short term.
The components of our executive remuneration
Performance metrics used in 2025
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 the
executives 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 the 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
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
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 (Chief Talent, Culture
andCommunicationsExecutive)
Long-term incentive
Adjusted
1
EPS Growth
– EPS growth provides a disciplined focus
onincreasing profitability and thereby
provides close shareholder alignment
through incentivising shareholder
valuecreation.
Return on
Total Invested
Capital
1
(ROTIC)
– ROTIC reinforces the focus on capital
efficiency and delivery of strong returns,
allowing us to reinvest for future growth,
and 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(Chief Talent, Culture
and Communications Executive)
1 See note 3 to the Accounts for alternative performance measures.
128 Halma plc | Annual Report and Accounts 2025
Short-term incentive – Annual Bonus
Metric Weighting Threshold Maximum
Outcome achieved
(% of maximum)
Economic Value Added
(EVA)
90%
£376.3m £441.8m
Actual: £462.7m
100%
Diversity, Equity
andInclusion (DEI)
5%
35% –
Actual: 33%
0%
Climate Change 5%
19% 22%
Actual: 26%
100%
Weighted annual bonus outcome (% of maximum)
95%
Long-term incentive – Executive Share Plan
Metric Weighting Threshold Maximum
2025 Achievement
(Vesting %)
Adjusted
1
EPS growth
overathree‑year period
50%
5% 12%
Actual: 13.52%
50.0%
Three‑year average ROTIC
1
50%
11% 17%
Actual: 14.71%
35.7%
Vesting percentage (2022 Award)
85.7%
How actual performance compared to targets
2024 and 2025 single total figure of remuneration
The remuneration levels in the chart above reflect the Group’s exceptional performance, where record levels ofgrowth have been
achieved across the organisation, and strong shareholder returns delivered.
45%
33%
2025
2024
22%
27%
33%
40%
2,550
2,000
Jennifer Ward
Chief Talent, Culture and
Communications Executive
60%
2025
40%
437
Carole Cran
Chief Financial Officer
60%
60%
2025
2024
40%
40%
1,768
1,720
Steve Gunning
Former Chief Financial Officer
Percentages
Total Pay (£000)
44%
27%
2025
2024
21%
27%
35%
46%
5,056
3,748
Marc Ronchetti
Group Chief Executive
Halma plc | Annual Report and Accounts 2025 129
Financial Statements Other InformationStrategic Report Governance Report
Executive Share Plan (ESP)
The maximum ESP opportunity for the Executive
Directors is set out below:
Marc Ronchetti Carole Cran Jennifer Ward
300% of Salary 250% of Salary 200% of Salary
The performance measures for the 2026 financial year
are in line with the Remuneration Policy and are as set
out below:
Weighting Threshold
1
Maximum
Adjusted
2
EPS growth 50% 5% 12%
ROTIC
2
50% 11% 17%
% of award vested 25% 100%
1 There is straight line vesting between threshold and maximum.
2 See note 3 to the Accounts for alternative performance measures
andreconciliations to statutory measures.
Share Incentive Plan
The Share Incentive Plan (SIP) will continue to operate
for the 2026 financial year. All Executive Directors are
members of the SIP.
Pension
The pension contribution for the Executive Directors
for the 2026 financial year will remain at 10.5% of
base salary, which aligns with the wider UK workforce.
Other benefits
No changes will be made to other benefits operated
for the 2026 financial year.
3 All performance measures are aligned to Group performance.
Remuneration at a glance continued
Salary/fees
The Group Chief Executive, Marc Ronchetti, will
receive a salary increase of 8%, which has been
awarded to reflect his exceptional leadership. The
Chief Talent, Culture, and Communications Executive,
Jennifer Ward, will also receive a salary increase of
8%, awarded in recognition of her sustained strong
performance in the role. The Committee is pleased
with Carole Cran’s performance as Chief Financial
Officer, and she will receive an increase of 4%, in line
with the average increase awarded to the wider
workforce. With effect from 1 June 2025, the salaries
for the Executive Directors will be:
Marc Ronchetti Carole Cran Jennifer Ward
£1,015,800 £642,800 £527,100
The Chair’s fee was increased by 3%. The basic fee
forthe non‑executive Directors was increased by
2.6%. The specific Senior Independent Director and
Committee Chair fees wereleft unchanged as these
still align with the benchmark, which is the median
ofthe FTSE 100, excluding financial services.
Further details are set out in the statement from
theRemuneration Committee Chair on page 123.
Annual Bonus
The maximum annual bonus opportunity for the
Executive Directors is set out below:
Marc Ronchetti Carole Cran Jennifer Ward
200% of Salary 180% of Salary 180% of Salary
The performance measures
3
for the 2026 financial
year are in line with the Remuneration Policy and
will be as follows:
– Economic Value Added (EVA)
– Diversity, Equity and Inclusion (DEI)
Although for 2026, we will not use the Climate
Change metric in remuneration, we have retained the
DEI target as we continue to work towards our wider
diversity ambitions. The 2026 target is to achieve 35%
gender balance on Halma company boards, with a
weighting of 5%.
Details of the financial performance target, EVA
arenot disclosed in advance due to the commercial
sensitivity and will be disclosed retrospectively
following the end of the performance period.
Theweighting is 95%.
Group DEI target details are set out on page 126
in the section titled “Annual Bonus”.
Directors’ remuneration for 2026
130 Halma plc | Annual Report and Accounts 2025
Annual Remuneration Report
The Annual Remuneration Report sets out details of how the Policy was implemented in the year to 31 March 2025
andthe proposed implementation for the next financial year. Details of how the Remuneration Committee intends
toimplement the Remuneration Policy during 2026 are summarised on page 135. The audited sections of this Report
areclearly identified.
Remuneration for 2025
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 2024 and 31 March 2025.
Marc Ronchetti
£000
Steve Gunning
1
£000
Carole Cran
2
£000
Jennifer Ward
£000
2025 2024 2025 2024 2025 2024 2025 2024
Salary 934 900 615 600 146 – 486 470
Benefits
3
29 29 27 27 12 – 18 20
Pension
4
98 95 65 63 15 – 51 49
Total Fixed Pay 1,061 1,024 707 690 173 – 555 539
Annual Bonus
5
1,787 1,710 1,057 1,026 264 – 835 810
Executive Share Plan (ESP)
6
2,204 1,010 – – – – 1,156 647
Share Incentive Plan (SIP)
7
4 4 4 4 – – 4 4
Total Variable Pay 3,995 2,274 1,061 1,030 264 – 1,995 1,461
Total Pay 5,056 3,748 1,768 1,720 437 – 2,550 2,000
Notes to the table:
1 Steve Gunning’s retirement plans were announced on 7 January 2025 and he was Chief Financial Officer until 31 March 2025, when he stepped down from the Board.
He will retire on 7 January 2026.
2 Carole Cran was a Halma non‑executive Director until 7 January 2025. She was CFO Designate between 8 January 2025 until 31 March 2025 and became Chief
Financial Officer on 1 April 2025.
3 Benefits: mainly comprises car allowance and private medical insurance.
4 Pension: value based on the Company’s cash supplement in lieu of pension during the year.
5 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. The table shows total bonus including amounts to be deferred.
6 ESP: Figures relate to awards vesting based on performance to the years ended 31 March 2024 and 2025. For the award vesting for the year ended 31 March 2025,
asthe share price on the date of vesting is currently unknown, the value shown is estimated using the average share price over the three months to 31 March 2025
of2,796p. For the award vesting for the year ended 31 March 2024, these figures hove been updated from last year’s report to reflect the actual share price on the
vesting date of 2,611p. Dividend equivalents in 2025 and 2024 respectively were as follows for: Marc Ronchetti – £48,075 and £22,392, Jennifer Ward – £25,227
and£14,320.
7 SIP is based on the face value of shares at grant.
Executive Board changes in 2025 (audited)
Carole Cran’s joining arrangements
Carole Cran was a non‑executive Director until 7 January 2025. She began her role as CFO Designate on 8 January
2025 on a base salary of £618,000. Other key details of her remuneration, which are in line with our Remuneration
Policy are set out below:
– She was granted a Performance Share Award in February 2025 under the ESP, which will vest in February 2028,
subject to performance conditions. The award is also subject to a two‑year post‑vesting holding period.
– Her annual bonus for the 2025 financial year, that has just concluded, is pro‑rated to reflect her period
ofemployment and her deferred bonus award will be calculated as one‑third of the bonus earned.
She became Chief Financial Officer on 1 April 2025 and details of her remuneration for the 2026 financial year
aresetout on page 130.
Annual Remuneration Report
Halma plc | Annual Report and Accounts 2025 131
Financial Statements Other InformationStrategic Report Governance Report
Steve Gunning’s leaving arrangements
Steve Gunning stepped down from the Board on 31 March 2025 and will retire on 7 January 2026 (“Retirement Date”).
On this basis and per his service agreement, Steve Gunning will continue to be paid in line with the Remuneration Policy
until his retirement and the details are:
– He will continue to be paid a salary of £618,000 until Retirement Date.
– He will remain eligible to receive a bonus paid in June 2025, in respect of the 2025 financial year, with one‑third
granted as a deferred bonus award to vest in June 2027, with no attaching further performance conditions.
– He will not be paid a bonus for the 2026 financial year.
– He will not receive an ESP award in June 2025.
– He will be treated as a good leaver on retirement and hence his outstanding ESP awards that are unvested in
January 2026 will be time pro‑rated to Retirement Date and vest, subject to performance, at their normal vesting date.
– He will automatically be treated as a good leaver under the Share Incentive Plan (SIP) rules and as such all SIP shares
held in trust will be transferred at retirement, free of tax and national insurance.
– He will continue to receive benefits through to the Retirement Date.
– He remains subject to the post‑cessation shareholding requirements.
Directors’ pensions (audited)
Our current Executive Directors are entitled to join the UK Defined Contribution Plan but due to annual allowance
restrictions, they received a cash‑in‑lieu pension contribution of 10.5% of salary, which is the maximum contribution
rateavailable to the UK wider workforce.
Incentive outcomes for 2025 (audited)
Annual bonus in respect of 2025
In 2025, the maximum bonus opportunity for the Group Chief Executive was 200% and 180% of salary for the Chief
Financial Officer and the Chief Talent, Culture and Communications Executive.
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: Improvement in the cumulative performance in energyproductivity (Revenue/energy consumed),
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 the Executive Directors.
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
Annual Remuneration Report continued
132 Halma plc | Annual Report and Accounts 2025
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 35% over the financial year and ultimately 40% by 31 March 2030. In 2025, maximum payout
of5% of bonus opportunity could have been achieved with a gender balance figure of 35% or above and nil payout
with a figure lower than 35%.
The Climate Change target is based on achieving a stretching range of cumulative improvement in Energy Productivity.
In 2025, the target was set to retain alignment with our external benchmark, while not rewarding any reduction in
cumulative performance compared to 2024.
Details of these non‑financial targets for the 2025 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 ≥35% 100%
Climate Change: Improvement in the cumulative performance in energy productivity
Target % payout for performance against target*
Threshold 19% 25%
Maximum ≥22% 100%
* Straight line payout between threshold and maximum.
Performance levels against all three targets are provided in the table below:
Metric Weighting Threshold Maximum
2025
Achievement
(% of maximum)
Economic Value Added
(EVA)
90%
£376.3m £441.8m
Actual: £462.7m
100%
Diversity, Equity
andInclusion (DEI)
5%
35% –
Actual: 33%
0%
Climate Change 5%
19% 22%
Actual: 26%
100%
Weighted annual bonus outcome (% of maximum)
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
2025
Cash-
settled
Value of
2025 deferred
bonus award
Marc Ronchetti 95% 190% 1,786,950 1,191,300 595,650
Steve Gunning 95% 171% 1,056,780 704,520 352,260
Carole Cran (started as CFO Designate on 8 January 2025) 95% 43% 264,195 176,130 88,065
Jennifer Ward 95% 171% 834,514 556,343 278,171
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 2025. 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
unless the Remuneration Committee determines otherwise. Full details will be provided in next year’s Annual
Remuneration Report.
Halma plc | Annual Report and Accounts 2025 133
Financial Statements Other InformationStrategic Report Governance Report
Executive Share Plan (ESP): 2022 Awards (vesting at the end of the year to 31 March 2025)
In June 2022, the Executive Directors received awards of performance shares under the ESP. 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
1
EPS growth
Performance level: <5% 5% 12% or more
% of award vesting
3
: 0.0% 12.5% 50%
ROTIC
2
Performance level: <11% 11% 17% or more
% of award vesting
3
: 0.0% 12.5% 50%
Total vesting 0.0% 25% 100%
1 Adjusted earnings per share growth over the three‑year performance period. See note 3 to the Accounts for details of the adjustments made.
2 Average ROTIC over the performance period. See note 3 to the Accounts for details of alternative performance measures.
3 There is straight line vesting between threshold and maximum vesting.
The three‑year period over which these two performance metrics are measured ended on 31 March 2025. Average
ROTIC was 14.71% (the average ROTIC for financial years 2023, 2024 and 2025) and Adjusted EPS growth was an
average of 13.52% per annum for the period from 1 April 2022 to 31 March 2025, resulting in vesting of 85.72% of the
awards. The estimated vesting value of the awards granted in June 2022 are included in the 2025 single figure of total
remuneration for Directors and are detailed in the table below:
Executive Director Interest held
Face value at
grant £000 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 89,965 1,746
85.72%
77,118
2796p
2,156 660 1,496
Jennifer Ward 47,208 916 40,467 1,131 345 786
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 129 capture the number of interests vesting for performance to 31 March 2025. 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 2025 of 2796p. The actual values at vesting will be trued‑up in the next
Annual Remuneration Report.
Incentive Awards granted during 2025 (audited)
Long-term incentive – Performance Share Plan Awards (granted during the year to 31 March 2025)
In June 2024, the Executive Directors, excluding Carole Cran were granted conditional share awards and on
28 February 2025, Carole Cran was granted a conditional share award under the ESP. All awards are subject to
ROTICand Adjusted EPS growth performance over a three‑year period measured from 1 April 2024 to 31 March 2027.
Specifically, the ROTIC element will be based on the average ROTIC for 2025, 2026 and 2027. The EPS element will
bebased on EPS growth from 1 April 2024 to 31 March 2027.
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
1
EPS growth
Performance level: <5% 5% 12% or more
% of award vesting
3
: 0.0% 12.5% 50%
ROTIC
2
Performance level: <11% 11% 17% or more
% of award vesting
3
: 0.0% 12.5% 50%
Total vesting 0.0% 25% 100%
1 Adjusted earnings per share growth over the three‑year performance period. See note 3 to the Accounts for details of adjustments made.
2 Average ROTIC over the performance period. See note 3 to the Accounts for details of alternative performance measures.
3 There is straight line vesting between the threshold and maximum points.
Annual Remuneration Report continued
134 Halma plc | Annual Report and Accounts 2025
The awards vest on the third anniversary from the date of grant, 24 June 2027 for the Executive Directors excluding
Carole Cran and 28 February 2028 for Carole Cran. The awards are subject to a two‑year post‑vesting holding period.
Executive Director % of salary
Face value at
award date
£000
Five-day
average market
price at award
date (p)
Awards made
during the year
Marc Ronchetti 300% 2,817 2644 106,561
Steve Gunning 250% 1,541 2644 58,289
Carole Cran (started as CFO Designate on 8 January 2025) 250% 1,545 2845 54,301
Jennifer Ward 200% 972 2644 36,774
Long-term incentive – Deferred Share Awards (granted during the year to 31 March 2025)
In June 2024, the Executive Directors, excluding Carole Cran 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 2024. Carole started her role
asCFO Designate in January 2025 and as such she was not entitled to a bonus or deferred share award in respect
ofthe 2024 financial year. Awards are not subject to performance conditions as they are deferred awards relating
tobonus earned for the year ended 31 March 2024. Awards vest in full on the second anniversary of the date of grant
(June 2026).
Executive Director
Bonus to
31 March 2024
£000
Proportion
awarded in
share
Face value at
award date
£000
Five-day
average market
price at
award date
Awards made
during the year
Marc Ronchetti 1,710 33.3% 570
2644p
21,554
Steve Gunning 1,026 33.3% 342 12,932
Jennifer Ward 810 33.3% 270 10,212
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 2025.
Non-executive Director
1
2025
£000
2024
£000
Dame Louise Makin (Chair) 437 423
Roy Twite
2
14 75
Carole Cran
2
76 96
Jo Harlow 119 109
Dharmash Mistry 77 75
Sharmila Nebhrajani OBE 82 75
Liam Condon 77 39
Giles Kerr 77 13
1 Fees have been rounded to the nearest £1,000.
2 Roy Twite stepped down from the Board on 7 June 2024 and Carole ceased to be a non‑executive Director on 7 January 2025, when she became CFO Designate.
Implementation of the Policy for the year to 31 March 2026
Base Salary, effective 1 June 2025
The Group Chief Executive will receive a salary increase of 8%, awarded to reflect Marc Ronchetti’s outstanding
leadership. This increase ensures that Marc’s base salary aligns broadly with the median of the FTSE 100, excluding
financial services. The Chief Talent, Culture and Communications Executive, Jennifer Ward, will also receive a salary
increase of 8%. This increase recognises her sustained strong performance in the role. The Committee is pleased with
Carole Cran’s performance as the Chief Financial Officer and as such, she has been awarded an increase of 4%, in line
with the average increase granted to the wider workforce. The Committee unanimously supported these increases,
especially in light of the excellent business performance.
Executive Director Salary for 2026 Salary for 2025
Marc Ronchetti £1,015,800 £940,500
Carole Cran (started as CFO Designate on 8 January 2025) £642,800 £618,000
Jennifer Ward £527,100 £488,020
Halma plc | Annual Report and Accounts 2025 135
Financial Statements Other InformationStrategic Report Governance Report
Pension
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 the 2026 financial year 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 the 2026 financial year will be based on EVA performance against a weighted average target of EVA
forthe past three years. We will also continue to use Diversity, Equity and Inclusion (DEI) as a non‑financial target.
Theweightings forEVA performance and DEI will be 95% and 5% respectively.
For DEI, we are looking to achieve gender balance of 35% on our company boards, which is aligned to our over‑arching
ambition to achieve at least 40% gender balance on our company boards by 2030. We continue tobelieve that this
ambition contributes to long‑term shareholder value and fosters an inclusive Halma culture. Youcan find more
onpage 58, where we set out details of our accomplishments.
As our financial target is commercially sensitive, details 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.
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 2025, 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 2026
Performance
Share Award
Value of
award
Marc Ronchetti £1,015,800 300% £3,047,400
Carole Cran £642,800 250% £1,607,000
Jennifer Ward £527,100 200% £1,054,200
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 2026, 2027 and 2028.
The full performance conditions are set out in detail in the table below.
Metric Below Threshold Threshold Maximum
Adjusted
1
EPS growth
Performance level: <5% 5% 12% or more
% of award vesting
3
: 0.0% 12.5% 50%
ROTIC
2
Performance level: <11% 11% 17% or more
% of award vesting
3
: 0.0% 12.5% 50%
Total vesting 0.0% 25% 100%
1 Adjusted earnings per share growth over the three‑year performance period. See note 3 to the Accounts for details of adjustments made.
2 Average ROTIC over the performance period. See note 3 to the Accounts for details of alternative performance measures.
3 There is straight line vesting between the threshold and maximum points.
Annual Remuneration Report continued
136 Halma plc | Annual Report and Accounts 2025
Chair and non-executive Director fees
A market review was carried out in respect of our Chair’s fee, which was subsequently increased with effect from
January 2025. A review of the non‑executive Directors’ fees was carried out and the Board made a decision to increase
the base fees witheffect from January 2025. The specific Senior Independent Director and Committee Chair fees were
left unchanged. Fees are subject to an annual review and to align with timings for Executive Directors and the wider
workforce salary reviews, anyfuture changes will be effective inJune 2026.
Fees
Annual fees
for 2025
Annual fees
for 2024
Chair £447,000 £434,000
Base fee £78,000 £76,000
Senior Independent Director £20,000 £20,000
Audit Committee Chair £22,500 £22,500
Remuneration Committee Chair £22,500 £22,500
Committee Member nil nil
Group Chief Executive pay ratio
The following table sets out our Group Chief Executive’s pay ratios as at 31 March 2025. All figures are calculated using
pay and benefits data for the year to 31 March 2025 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)
2025 Option A 180:1 133:1 85:1
£28,044 £38,151 £59,285
(£27,280) (£34,733) (£53,203)
Historical information
25th Percentile:
pay ratio
50th Percentile:
pay ratio
75th Percentile:
pay ratio
2024 Option A 127:1 99:1 63:1
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 129.
Commentary
The Group Chief Executive is remunerated predominantly on performance‑related elements (bonus and share awards),
based on the delivery of strong growth and returns. As a result, remuneration of the Group Chief Executive is weighted
more heavily towards variable pay than that of the wider workforce and strongly reflects shareholder experience.
The increase in the Group Chief Executive’s remuneration is predominantly because of very strong operational results
which have led to consistent share price growth over the performance period and the strong bonus payout and LTI
vesting outcome. The associated pay ratio reflects the exceptionally strong performance in 2025, where record levels
of growth and returns have been achieved across the Group. The ratio has therefore increased, which reflects the
correlation between pay and performance.
The pay ratio will fluctuate each year depending on the performance of the company and as such the Remuneration
Committee considers pay ratios as one of many reference points when reviewing executive remuneration.
TheCommittee considers that the median pay ratio for 2025 is consistent with the pay, reward and progression
policies for the Company.
Halma plc | Annual Report and Accounts 2025 137
Financial Statements Other InformationStrategic Report Governance Report
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 five financial
years ending 31 March.
Salary/fees
(% change)
Benefits
(% change)
Annual Bonus
(% change)
2025 2024 2023 2022 2021 2025 2024 2023 2022 2021 2025 2024 2023 2022 2021
Executive Directors
Marc Ronchetti¹ 4% 35% 38% 19% (5%) 3% 34% 7% (17%) 41% 4% 102% (5%) 187% (40%)
Steve Gunning
2
2% 370% – – – 3% 374% – – – 3% 445% – – –
Carole Cran
3
– – – – – – – – – – – – – – –
Jennifer Ward 3% 5% 16% 19% (5%) 0% (17%) (3%) 4% – 3% 40% (19%) 187% (40%)
Non-executive
Directors
Dame Louise Makin
4
3% 3% 38% 3,612% – – – – – – – – –
Jo Harlow 9% 15% 27% 15% 10% – – – – – – – –
Dharmash Mistry 2% – 20% – – – – – – – – – –
Sharmila
NebhrajaniOBE
9% – 217% – –
Liam Condon⁵ 95% – – – – – – – – – – – –
Giles Kerr⁵ 504% – – – – – – – – – – – –
Former Directors – – – – – – – –
Roy Twite⁵ (81%) (74%) 16% 19% (5%) (76%) 3% (13%) (6%) (100%) (19%) 218% (40%)
Carole Cran
3
(21%) 1% 20% 13% (5%)
Other Halma plc
Employees
5% 5% 7% 6% – 10% – 8% 3% (2%) 12% 17% (36%) 230% (43%)
1 Marc Ronchetti became Group Chief Executive on 1 April 2023. He was CEO Designate between 16 June 2022 and 31 March 2023 and Chief Financial Officer prior to that.
2 Steve Gunning joined the Board on 16 January 2023.
3 Carole Cran became an Executive Director on 8 January 2025 when she started in her role as CFO Designate. Prior to that she was a non‑executive Director for nine years
until 7 January 2025. This is why she is listed twice in this table.
4 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.
5 Liam Condon and Giles Kerr joined the Committee on 25 September 2023 and 1 February 2024 respectively. Roy Twite stepped down from the Board on 7 June 2024.
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 2024 to the financial year ended
31 March2025.
2025
£m
2024
£m
%
change
Distribution to shareholders 87.3 81.5 7.1%
Employee remuneration (gross) 600.1 563.0 6.7%
The Directors are proposing a final dividend for the year ended 31 March 2025 of 23.12p per share (2024: 13.2p).
Annual Remuneration Report continued
138 Halma plc | Annual Report and Accounts 2025
Ten-year performance graph and history of the Group Chief Executive’s remuneration
The graph below shows Halma’s Total Shareholder Return (TSR) performance over the 10 years to 31 March 2025 as
compared to the FTSE 100 index. Over the period indicated, Halma’s TSR was 308% compared with 86% 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.
Total Shareholder Return graph
as rebased to 100
Dates as at 31 March Halma FTSE 100
600
Indexed
Total
Return
450
300
150
% increase
0
86%
308%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
History of Group Chief Executive’s remuneration
CEO 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Singlefigure of
remuneration
(£000)
Marc
Ronchetti
1
n/a n/a n/a n/a n/a n/a n/a n/a 3,748 5,056
Andrew
Williams
2,423 2,337 3,429 3,954 3,912 3,258 3,365 3,576 n/a n/a
Annual bonus
outcome
(% of maximum)
2
Marc
Ronchetti
1
n/a n/a n/a n/a n/a n/a n/a n/a 95% 95%
Andrew
Williams
53% 34% 89% 100% 81% 48% 100% 70% n/a n/a
ESP vesting
outcome
(% of maximum)
2
Marc
Ronchetti
1
n/a n/a n/a n/a n/a n/a n/a n/a 84% 86%
Andrew
Williams
95% 92% 90% 90% 91% 74% 61% 95% n/a n/a
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.
Payments to past Directors and for loss of office (audited)
On his retirement from the Board in June 2023, Andrew Williams retained the following interests under the ESP,
whichvested during the year:
– 18,596 deferred bonus awards granted in 2023 will vest on 26 June 2025.
– 46,639 time pro‑rated ESP shares vesting at 85.72% based on performance to 31 March 2025 will vest on
27 June2025, with an estimated vesting value of £1,117,811. As the market price on thedate of vesting is unknown
atthe time of reporting, the value is estimated using the average market value over the three‑month period
to31 March 2025 of 2796p.
Halma plc | Annual Report and Accounts 2025 139
Financial Statements Other InformationStrategic Report Governance Report
Directors’ interests in Halma shares(audited)
The interests of the Directors in office during the year ended 31 March 2025 (and their connected family members)
inthe ordinary shares of the Company are below. During the period between 31 March 2025 and 12 June 2025
(thelatest practicable date prior to the publication), no changes to Directors’ interests were disclosed to the Company.
31 March
2025
31 March
2024
Dame Louise Makin 10,000 10,000
Marc Ronchetti 114,117 85,864
Carole Cran 10,000 2,000
Steve Gunning 18,552 18,414
Jennifer Ward 27,077 57,632
Jo Harlow 2,000 2,000
Dharmash Mistry 2,563 2,563
Sharmila Nebhrajani OBE 187 –
Liam Condon 1,000 1,000
Giles Kerr 2,000 2,000
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
2024
Granted/
(vested)
in the year
Five-day
average
share price
on grant (p)
As at
31 March
2025
Marc Ronchetti ESP 28‑Jun‑21 27,252 (23,011) 2715.9 –
ESP 23‑Jul‑21 17,531 (14,803) 2787.8 –
DSA 27‑Jun‑22 15,237 (15,237) 1941.2 –
ESP 27‑Jun‑22 89,965 1941.2 89,965
DSA 26‑Jun‑23 12,529 2247.6 12,529
ESP 26‑Jun‑23 119,967 2247.6 119,967
DSA 24‑Jun‑24 21,554 2644.4 21,554
ESP 24‑Jun‑24 106,561 2644.4 106,561
Steve Gunning ESP 27‑Feb‑23 68,181 2200.0 68,181
DSA 26‑Jun‑23 2,789 2247.6 2,789
ESP 26‑Jun‑23 66,577 2247.6 66,577
DSA 24‑Jun‑24 12,932 2644.4 12,932
ESP 24‑Jun‑24 58,289 2644.4 58,289
Carole Cran ESP 28‑Feb‑25 54,301 2845.2 54,301
Jennifer Ward ESP 28‑Jun‑21 18,645 (15,743) 2715.9 –
ESP 23‑Jul‑21 10,043 (8,480) 2787.8 –
DSA 27‑Jun‑22 12,208 (12,208) 1941.2 –
ESP 27‑Jun‑22 47,208 1941.2 47,208
DSA 26‑Jun‑23 8,554 2247.6 8,554
ESP 26‑Jun‑23 42,000 2247.6 42,000
DSA 24‑Jun‑24 10,212 2644.4 10,212
ESP 24‑Jun‑24 36,774 2644.4 36,774
The balance of ESP awards that did not vest during the year have lapsed.
The DSAs do not have any attaching performance conditions and ordinarily vest in full on the second anniversary
ofthe award unless the Remuneration Committee determines otherwise. The performance conditions attached
tothe2022, 2023 and 2024 ESP awards are described earlier in this Report, on page 134.
Annual Remuneration Report continued
140 Halma plc | Annual Report and Accounts 2025
Share Incentive Plan
Date of
grant
As at
1 April
2024
Granted
in the year
Share price
on award (p)
As at
31 March
2025
Marc Ronchetti 01‑Oct‑22 179 2011 179
01‑Oct‑23 185 1939 185
01‑Oct‑24 138 2608 138
Steve Gunning 01‑Oct‑23 185 1939 185
01‑Oct‑24 138 2608 138
Jennifer Ward 01‑Oct‑22 179 2011 179
01‑Oct‑23 185 1939 185
01‑Oct‑24 138 2608 138
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. Carole Cran started
as CFO Designate on 8 January 2025 and will be due to receive her first SIP shares with effect from 1 October 2025.
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 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 and Marc Ronchetti have met the Share Ownership Guideline. Steve Gunning and Carole Cran 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 2025 to 12 June 2025.
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 58, 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 our Accelerate leadership conference, held in October 2025. 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.
We have regularly engaged with shareholders in the past on remuneration matters and remain committed to doing
so. However, the Committee agreed that it was not necessary this year, but hopes that shareholders find the rationale
behind pay decisions laid out in this report clear and welcomes any feedback.
Detail on the votes received on the Remuneration Policy and Remuneration Report at the 2024 Annual General
Meeting is provided on page 142.
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.
Halma plc | Annual Report and Accounts 2025 141
Financial Statements Other InformationStrategic Report Governance Report
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
www.remunerationconsultantsgroup.com.
WTW’s fee for the year with respect to executive remuneration matters was £59,200 (2024: £58,785) 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.
No changes are proposed to the Policy, which was approved at the 2024 Annual General Meeting, but the Directors’
Remuneration Report will be subject to an advisory vote by shareholders at the 2025 Annual General Meeting.
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.
Executive Directors with external appointments retain those fees.
Shareholder vote at 2024 Annual General Meeting
The following table shows the results of the binding vote on the Policy and the advisory vote on the Directors’
Remuneration Report at the Annual General Meeting held on 25 July 2024.
For Against Total Withheld
Remuneration Policy (2024)
Total number of votes 275,901,581 16,666,499 292,568,080 61,981
% of votes cast 94.30% 5.70% 100%
Directors’ Remuneration Report (2024)
Total number of votes 278,375,180 14,198,149 292,573,329 56,732
% of votes cast 95.15% 4.85% 100%
Jo Harlow
Committee Chair
For and on behalf of the Board, 12 June 2025
Annual Remuneration Report continued
142 Halma plc | Annual Report and Accounts 2025
Directors’ Remuneration Policy
This section of the Report sets out a summary of our Remuneration Policy (the “Policy”). The current Remuneration
Policy for Executive Directors came into effect from 25 July 2024, the date of the 2024 Annual General Meeting
andapplies for three years, until the 2027 Annual General Meeting. The full Policy can be found in the 2024 Annual
Report and Accounts, which is available at www.halma.com/investors.
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 UK Corporate Governance Code and market
best practice.
Alignment to the UK Corporate Governance Code
The table below shows how the Remuneration Policy addresses each of the factors set out in provision 40 ofthe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.
Halma plc | Annual Report and Accounts 2025 143
Financial Statements Other InformationStrategic Report Governance Report
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 on 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 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.
Maximum opportunity Defined Contribution: maximum contribution of 10.5% of salary.
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.
Performance metrics Not Applicable.
Directors’ Remuneration Policy continued
144 Halma plc | Annual Report and Accounts 2025
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.
Halma plc | Annual Report and Accounts 2025 145
Financial Statements Other InformationStrategic Report Governance Report
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 there is a 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.
The table below summarises how the Policy applies across the Group.
Executive Directors Executive Board
Other senior
Halmaemployees Others
Fixed pay
Salary
Benefits
Pension/Pension supplement
Short-term incentive
Annual Bonus
Long-term incentive
Executive Share Plan
Share Incentive Plan¹
1 Available to UK‑based employees only.
Directors’ Remuneration Policy continued
146 Halma plc | Annual Report and Accounts 2025
Directors’ 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 2025.
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 232 to 238. 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 2 to 92:
– 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 14.12p
pershare and, if approved, the dividend will be paid on
15 August 2025 to ordinary shareholders on the register
at the close of business on 11 July 2025. Together with the
interim dividend of 9.00p per share already paid, this will
make a total dividend of 23.12p (2024: 21.61p) 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 96 and 97. The Remuneration Report
onpage 123 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
Halma plc | Annual Report and Accounts 2025 147
Financial Statements Other InformationStrategic Report Governance Report
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; (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 48 of the Strategic Report and page
109 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.
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 48 to 53. Examples of how the Directors had
regard to stakeholder interests when making principal
decisions during the year are set out on pages 105 to 106.
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.
Directors’ report continued
148 Halma plc | Annual Report and Accounts 2025
– 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 12 June
2025 (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 2026 and
30 September 2026.
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 12 June
2025, 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 12 June 2025 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 2025, 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 2025
No. of
ordinary
shares
Percentage of
voting rights
and issued
share capital
No of
holdings
BlackRock, Inc. 23,932,882 6.30 Indirect
During the period between 31 March 2025 and
12June2025 (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 2024 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 2025
and30 September 2025. 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 2026 AGM and
30 September 2026, in respect of up to 37,900,000
ordinary shares, which is approximately 10% of the
Company’s issued share capital as at 12 June 2025.
Annual General Meeting
The Company’s AGM will be held on 24 July 2025.
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.
Halma plc | Annual Report and Accounts 2025 149
Financial Statements Other InformationStrategic Report Governance Report
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 2025, its cash flows, liquidity
position and borrowing facilities are set out in the
Strategic Report.
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 68 to 78. 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.
The Group’s financial position remains robust with
committed facilities at the balance sheet date totalling
£1,250m which includes a £550m Revolving Credit Facility
(RCF). The undrawn committed facilities as at 31 March
2025 amounts to £511m. In May 2024 the last of the two
one‑year extension options drawn under the RCF was
exercised which now matures in May 2029. During April
2024, the Group also entered into, and drew down, a new
note Purchase Agreement which provided access to loan
notes totalling £328m. 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.
The 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 period ending 31 March 2026,
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 such as the recent
US tariffs, 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 the 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 223.
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 123
Contracts of significance 148
Shareholder waiver of dividends 147
Shareholder waiver of future dividends 147
Corporate Governance Statement
The Company’s statement on corporate governance
canbe found in the Governance Report on page 94.
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 12 June 2025
Directors’ report continued
150 Halma plc | Annual Report and Accounts 2025
Statement of Directors’ responsibilities
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 96 and 97 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 152 to 243 were
approved by the Board of Directors on 12 June 2025
and signed on its behalf by Marc Ronchetti and
CaroleCran.
On behalf of the Board
Marc Ronchetti
Group Chief Executive
Carole Cran
Chief Financial Officer
12 June 2025
Halma plc | Annual Report and Accounts 2025 151
Financial Statements Other InformationStrategic Report Governance Report
153 Independent Auditors’ report
162 Consolidated Income Statement
163 Consolidated Statement
ofComprehensive Income
andExpenditure
164 Consolidated Balance Sheet
165 Consolidated Statement
ofChangesin Equity
166 Consolidated Cash Flow Statement
167 Accounting Policies
177 Notes to the Accounts
225 Company Balance Sheet
226 Company Statement
ofChangesinEquity
227 Notes to the Company Accounts
242 Summary 2016 to 2025
In this section
Financial
Statements
Our Financial Statements provide
a comprehensive overview of the
Group’s financial performance
and position for the year ending
31 March 2025.
152 Halma plc | Annual Report and Accounts 2025
Independent Auditors’ report to the members of Halma plc
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 2025 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 2025; the
Consolidated Income Statement and Consolidated
Statement of Comprehensive Income and Expenditure,
the Consolidated Cash Flow Statement, and the
Our audit approach
Overview
Audit scope
– We identified three significant, due to risk or size, operating components within the Group;
– We performed audit procedures over 47 of the 330 reporting components in the group to provide sufficient
Groupwide coverage onallfinancial statement line items; and
– This provided coverage of approximately 72% of revenue, approximately 76% of profit before tax on an absolute
basis, andapproximately 87% 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: £22,970,000 (FY24: £19,820,000) based on 5% of adjusted profit before taxation.
– Overall company materiality: £21,983,000 (FY24: £19,132,000) based on 1% of total assets.
– Performance materiality: £17,227,500 (FY24: £14,865,000) (group) and £16,487,250 (FY24: £14,300,000) (company).
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.
To the best of our knowledge and belief, we declare
thatnon-audit services prohibited by the FRC’s Ethical
Standard were not provided.
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.
Halma plc | Annual Report and Accounts 2025 153
Governance Report Other InformationStrategic Report Financial Statements
Independent Auditors’ report to the members of Halma plc continued
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 2025, the Group completed
sevenbusiness acquisitions with a combined total consideration of
£120.5m, including total estimated contingent consideration of
£3.3m. Acquired intangibles recognised in these transactions
totalled £84.1m.
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 five
largest acquisitions during the year. There were a further two
acquisitions for which the acquired intangibles amounted to
£2.0m in total. Therefore in aggregate the risk of a material
misstatement in the valuation of these acquisitions is not deemed
to be significant.
The key estimates and assumptions 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 £82.1m.
In respect of these 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;
– Performed detailed testing of the opening balance sheet and
the related fair value adjustments for each acquisition;
– 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 including
the royalty rates, attrition rates and expected revenue from
newcustomers, and performed sensitivity analysis;
– 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.
154 Halma plc | Annual Report and Accounts 2025
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 £1,263.3m (2024: £1,211.0m) and £518.4m
(2024: £510.4m) respectively as at 31 March 2025.
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.
As per management’s impairment model, there is headroom
inthe base case for all CGUG’s. The CGUG with the lowest
headroom is Life Sciences, for which there is a higher risk of an
impairment in this CGUG and hence we performed additional
procedures. For the remaining ten CGUG’s the impairment of
goodwill has been assessed as a normal audit risk given the level
of headroom in these.
Management also assessed whether there are any indications
thatacquired 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
andsector forecasts, prior year budgets to actual results,
andhistorical cash generation, 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 CGUG, due to the 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 balances are materially accurate
at 31 March 2025 and that appropriate disclosures have been
made in the financial statements.
Halma plc | Annual Report and Accounts 2025 155
Governance Report Other InformationStrategic Report Financial Statements
Independent Auditors’ report to the members of Halma plc continued
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 330 reporting components within
theconsolidation.
Beyond the parent company we have identified one
component in the photonics CGUG that is significant
due to size and one component in the fire safety
CGUGthat is significant due to risk due to the valuation
of the defined benefit pension scheme giving rise to
anelevated risk at the group level. We determined
themostefficient approach to scoping was to perform
full scope procedures over a further 26 reporting
components where statutory audits are already
requiredin the UK, Belgium, Germany, France, Spain,
Switzerland, Italy, Australia andCyprus.
Key audit matter How our audit addressed the key audit matter
Impairment of investments and recoverability
ofintercompany receivables (parent)
Refer to Note C1 – Accounting Policies, Note C5 – Investments
andNote C6 – Debtors.
At 31 March 2025, the Company held investments in subsidiaries
with a carrying value of £696.4m (2024: £636.0m) and
intercompany receivables of £1,293.5m (2024: £1,194.6m).
There is a risk that the recoverable amount of investments and
intercompany debtors held at 31 March 2025 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-group.
Through this assessment management concluded that no
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 acquired 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 2025;
– 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concluded that the investments balance is materially
accurateat 31 March 2025.
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15 components inthe
United States, whichincludes the significant due to size
operating component. Additional audit procedures were
performed on specific financial statement line items
fora further 3components in China and the UK. 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.
156 Halma plc | Annual Report and Accounts 2025
In addition, the Group Engagement Leader and a senior
member of the Group engagement team performed
various site visits to the US, Germany and within the
UKduring the execution phase of the audit to provide
additional oversight to thecomponent teams.
Workingpaper reviews have alsobeen performed for
allcomponents which are individually material to the
Group; that is components with profit before taxation
exceeding Group materiality or where otherwise selected.
Based on the detailed audit work performed across
theGroup, we have gained coverage of approximately
72% of total revenue, approximately 76% of profit
beforetax on an absolute basis, and approximately
87%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 they 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
management’s underlying working papers for updates
toits 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. The Board has made commitments to
interim and final Scope 3 Net Zero targets in 2035 and
2050 respectively, as well as Scope 1 and Scope 2 interim
and final Net Zero targets in 2030 and 2040. These
targets are set in line with a 1.5 degree trajectory, to
reduce Scope 1 and Scope 2 emissions by 42% from
management’s 2020 baseline.
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 £22,970,000 (FY24: £19,820,000). £21,983,000 (FY24: £19,132,000).
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.
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 Statement of 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 its 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 Report and the Sustainability
report within the financial statements, 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 2025.
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.
Halma plc | Annual Report and Accounts 2025 157
Governance Report Other InformationStrategic Report Financial Statements
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 £20.7m. 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% (FY24: 75%) of overall materiality, amounting
to£17,227,500 (FY24: £14,865,000) for the group financial
statements and £16,487,250 (FY24: £14,300,000)
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 £1,148,000 (group audit) (FY24: £990,000) and
£1,099,150 (company audit) (FY24: £990,000) 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 were appropriate;
– 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.
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.
158 Halma plc | Annual Report and Accounts 2025
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 2025 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;
– 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.
Halma plc | Annual Report and Accounts 2025 159
Governance Report Other InformationStrategic Report Financial Statements
Independent Auditors’ report to the members of Halma plc continued
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, 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.
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 estimates and judgements made by
management in its critical 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.
160 Halma plc | Annual Report and Accounts 2025
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.
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 8 years,
covering the years ended 31 March 2018 to 31 March 2025.
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
12 June 2025
Halma plc | Annual Report and Accounts 2025 161
Governance Report Other InformationStrategic Report Financial Statements
Notes
Year ended 31 March 2025 Year ended 31 March 2024
Adjusted*
£m
Adjustments*
(note 1)
£m
Total
£m
Adjusted*
£m
Adjustments*
(note 1)
£m
Total
£m

Continuing operations |  |  |  |  |  |  |
Revenue | 1 | 2,248.1 | – | 2,248.1 | 2,034.1 | – | 2,034.1
Operating profit |  | 486.6 | (77.1) | 409.5 | 424.3 | (56.6) | 367.7
Share of loss of associate | 14 | (0.3) | (1.0) | (1.3) | (0.3) | – | (0.3)
Profit on disposal of operations | 30 | – | 3.0 | 3.0 | – | 0.5 | 0.5
Profit before interest and taxation |  | 486.3 | (75.1) | 411.2 | 424.0 | (56.1) | 367.9
Finance income | 4 | 6.4 | – | 6.4 | 3.1 | – | 3.1
Finance expense | 5 | (33.3) | – | (33.3) | (30.7) | – | (30.7)
Profit before taxation | 6 | 459.4 | (75.1) | 384.3 | 396.4 | (56.1) | 340.3
Taxation | 9 | (103.6) | 15.7 | (87.9) | (85.4) | 13.9 | (71.5)
Profit for the year | 1 | 355.8 | (59.4) | 296.4 | 311.0 | (42.2) | 268.8
Attributable to: |  |  |  |  |  |  |
Owners of the parent |  |  |  | 296.4 |  |  | 268.8
Non–controlling interests |  |  |  | – |  |  | –
Earnings per share | 2 |  |  |  |  |  |
From continuing operations |  |  |  |  |  |  |
Basic |  | 94.23p |  | 78.49p | 82.40p |  | 71.23p
Diluted |  |  |  | 78.14p |  |  | 70.96p
Dividends in respect of the year | 10 |  |  |  |  |  |
Paid and proposed (£m) |  |  |  | 87.3 |  |  | 81.5
Paid and proposed per share |  |  |  | 23.12p |  |  | 21.61p

* Adjustments include where applicable the amortisation and impairment of acquired intangible assets; acquisition items; significant restructuring costs;
profitorlosson disposal of operations and impairment of associates; and the associated taxation thereon. Note 3 provides more information on alternative
performancemeasures.
Consolidated Income Statement
162 Halma plc | Annual Report and Accounts 2025

|  | Year ended | Year ended
|  | 31 March | 31 March
|  | 2025 | 2024
| Notes | £m | £m
Profit for the year |  | 296.4 | 268.8
Items that will not be reclassified subsequently to the Consolidated Income Statement: |  |  |
Actuarial losses on defined benefit pension plans | 29 | (30.0) | (12.0)
Tax relating to components of other comprehensive income that will not be reclassified | 9 | 7.4 | 3.0
Unrealised losses in the fair value of equity investments at fair value through other comprehensive income | 14 | (6.0) | (1.2)
Items that may be reclassified subsequently to the Consolidated Income Statement: |  |  |
Effective portion of gains/(losses) in fair value of cash flow hedges | 27 | 1.7 | (2.1)
Deferred tax in respect of cash flow hedges accounted for in the hedging reserve | 9 | (0.1) | 0.2
Exchange losses on translation of foreign operations and net investment hedge |  | (36.7) | (36.0)
Exchange loss on translation of foreign operations recycled to income statement on disposal | 30 | (1.1) | –
Other comprehensive expense for the year |  | (64.8) | (48.1)
Total comprehensive income for the year |  | 231.6 | 220.7
Attributable to: |  |  |
Owners of the parent |  | 231.6 | 220.7
Non‑controlling interests |  | – | –

The exchange losses of £36 .7 m (2024: losses of £36 .0m) includes gains of £11 .3m (2024: gains of £1 3.2m) which relate to net investment
hedges as described in note 27.
Consolidated Statement of Comprehensive Income and Expenditure
Halma plc | Annual Report and Accounts 2025 163
Governance Report Other InformationStrategic Report Financial Statements

|  | 31 March | 31 March
|  | 2025 | 2024
| Notes | £m | £m
Non‑current assets |  |  |
Goodwill | 11 | 1,263.3 | 1,211.0
Other intangible assets | 12 | 576.0 | 569.0
Property, plant and equipment | 13 | 283.2 | 236.8
Interest in associates and other investments | 14 | 12.5 | 19.8
Retirement benefit asset | 29 | 4.0 | 32.0
Tax receivable | 31 | – | 14.7
Deferred tax asset | 22 | 4.4 | 4.9
|  | 2,143.4 | 2,088.2
Current assets |  |  |
Inventories | 15 | 300.3 | 304.8
Trade and other receivables | 16 | 485.9 | 460.9
Tax receivable |  | 14.7 | 2.6
Cash and bank balances |  | 313.2 | 142.7
Derivative financial instruments | 27 | 1.1 | 0.7
|  | 1,115.2 | 911.7
Total assets |  | 3,258.6 | 2,999.9
Current liabilities |  |  |
Trade and other payables | 17 | 343.3 | 296.5
Borrowings | 19 | 35.6 | 0.3
Lease liabilities | 28 | 23.1 | 19.5
Provisions | 20 | 44.5 | 35.0
Tax liabilities |  | 10.5 | 18.2
Derivative financial instruments | 27 | 0.8 | 2.6
|  | 457.8 | 372.1
Net current assets |  | 657.4 | 539.6
Non‑current liabilities |  |  |
Borrowings | 19 | 703.8 | 711.9
Lease liabilities | 28 | 86.5 | 64.2
Retirement benefit obligations | 29 | 2.0 | 1.1
Trade and other payables | 21 | 24.5 | 23.9
Provisions | 20 | 11.2 | 10.7
Deferred tax liabilities | 22 | 73.4 | 79.5
|  | 901.4 | 891.3
Total liabilities |  | 1,359.2 | 1,263.4
Net assets |  | 1,899.4 | 1,736.5
Equity |  |  |
Share capital | 23 | 38.0 | 38.0
Share premium account |  | 23.6 | 23.6
Own shares |  | (46.9) | (58.0)
Capital redemption reserve |  | 0.2 | 0.2
Hedging reserve |  | 0.3 | (1.3)
Translation reserve |  | 88.5 | 126.3
Other reserves |  | 3.3 | 3.2
Retained earnings |  | 1,792.4 | 1,604.5
Equity attributable to owners of the parent |  | 1,899.4 | 1,736.5
Non‑controlling interests |  | – | –
Total equity |  | 1,899.4 | 1,736.5

The financial statements of Halma plc, company number 00040932, were approved by the Board of Directors on 12 June 2025.
Marc Ronchetti Carole Cran
Director Director
Consolidated Balance Sheet
164 Halma plc | Annual Report and Accounts 2025

|  | 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 2024 | 38.0 | 23.6 | (58.0) | 0.2 | (1.3) | 126.3 | 3.2 | 1,604.5 | – | 1,736.5
Profit for the year | – | – | – | – | – | – | – | 296.4 | – | 296.4
Other comprehensive income |  |  |  |  |  |  |  |  |  |
and expense | – | – | – | – | 1.6 | (37.8) | (6.0) | (22.6) | – | (64.8)
Total comprehensive income and expense | – | – | – | – | 1.6 | (37.8) | (6.0) | 273.8 | – | 231.6
Dividends paid | – | – | – | – | – | – | – | (83.8) | – | (83.8)
Share‑based payment charge | – | – | – | – | – | – | – | 24.8 | – | 24.8
Deferred tax on share‑based |  |  |  |  |  |  |  |  |  |
payment transactions | – | – | – | – | – | – | – | 0.8 | – | 0.8
Excess tax deductions related |  |  |  |  |  |  |  |  |  |
to share‑based payments on vested awards | – | – | – | – | – | – | – | 0.9 | – | 0.9
Purchase of own shares | – | – | (6.3) | – | – | – | – | (1.6) | – | (7.9)
Performance share plan |  |  |  |  |  |  |  |  |  |
awardsvested | – | – | 17.4 | – | – | – | – | (20.9) | – | (3.5)
Transfer of loss on disposal of equity investments at fair value through other comprehensive income to retained earnings | – | – | – | – | – | – | 6.1 | (6.1) | – | –
At 31 March 2025 | 38.0 | 23.6 | (46.9) | 0.2 | 0.3 | 88.5 | 3.3 | 1,792.4 | – | 1,899.4

|  | 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

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 £50 .2m (2024: £58 .2m).
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 £9 .3m (2024: £20 .7 m). The Other reserves represent the cumulative fair value
adjustments on equity instruments held at fair value through other comprehensive income.
Consolidated Statement of Changes in Equity
Halma plc | Annual Report and Accounts 2025 165
Governance Report Other InformationStrategic Report Financial Statements

|  | Year ended | Year ended
|  | 31 March | 31 March
|  | 2025 | 2024
| Notes | £m | £m
Net cash inflow from operating activities | 26 | 492.4 | 385.0
Cash flows from investing activities |  |  |
Purchase of property, plant and equipment – owned assets | 13 | (43.8) | (32.8)
Purchase of computer software | 12 | (1.1) | (2.0)
Purchase of other intangibles | 12 | (0.7) | (0.4)
Proceeds from sale of property, plant and equipment and capitalised development costs |  | 0.9 | 1.6
Development costs capitalised | 12 | (13.8) | (16.4)
Interest received |  | 4.9 | 1.2
Acquisition of businesses, net of cash acquired | 25 | (116.2) | (238.8)
Disposal of business, net of cash disposed | 30 | 5.9 | 1.6
Purchase of equity investments | 14 | – | (0.3)
Net cash used in investing activities |  | (163.9) | (286.3)
Cash flows from financing activities |  |  |
Dividends paid |  | (83.8) | (78.2)
Purchase of shares for settlement of employee share arrangements |  | (7.9) | (21.1)
Interest paid |  | (28.9) | (29.6)
Loan arrangement fees |  | (1.4) | (0.3)
Proceeds from bank borrowings | 26 | 38.9 | 513.2
Repayment of bank borrowings | 26 | (337.0) | (465.7)
Repayment of acquired debt on acquisition | 26 | (46.6) | (17.1)
Drawdown of loan notes | 26 | 335.8 | –
Repayment of lease liabilities, net of interest |  | (24.2) | (20.9)
Net cash used in financing activities |  | (155.1) | (119.7)
Increase/(decrease) in cash and cash equivalents | 26 | 173.4 | (21.0)
Cash and cash equivalents brought forward |  | 142.4 | 168.5
Exchange adjustments |  | (3.1) | (5.1)
Cash and cash equivalents carried forward | 26 | 312.7 | 142.4

Notes
Year ended
31 March
2025
£m
Year ended
31 March
2024
£m
Reconciliation of net cash flow to movement in net debt
Increase/(decrease) in cash and cash equivalents 173.4 (21.0)
Net cash outflow/(inflow) from bank borrowings and loan notes 26 8.9 (30.4)
Net debt acquired 26 (46.7) (17.1)
Lease liabilities additions and accretion of interest (54.1) (18.3)
Lease liabilities acquired net of disposal (2.4) (3.2)
Lease liabilities and interest repaid 28 28.8 24.1
Exchange adjustments 9.5 9.4
Decrease/(increase) in net debt 117.4 (56.5)
Net debt brought forward (653.2) (596.7)
Net debt carried forward (535.8) (653.2)
Consolidated Cash Flow Statement
166 Halma plc | Annual Report and Accounts 2025
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
2025 and 31 March 2024, 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 2025
There are no new standards and interpretations adopted for the first time in 2025.
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
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. Management is currently
assessing the detailed implications of applying the standard on the Group’s consolidated financial statements. The Group will adopt
the new standard for the year ended 31 March 2028 and as retrospective application is required the comparative information for the
year ended 31 March 2027 will be restated.
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 Capital Employed (ROCE), Organic
growth, 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 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 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 2025, its cash flows, liquidity position and borrowing facilities are set out
in the Strategic Report.
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 68 to 78. 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.
The Group’s financial position remains robust with committed facilities at the balance sheet date totalling £1,250m which includes a
£550m Revolving Credit Facility (RCF). The undrawn committed facilities as at 31 March 2025 amounts to £511m. In May 2024 the last
of the two one‑year extension options drawn under the RCF was exercised which now matures in May 2029. During April 2024 the Group
also entered into, and drew down, a new note Purchase Agreement which provided access to loan notes totalling £328m. 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.
Accounting Policies
Halma plc | Annual Report and Accounts 2025 167
Governance Report Other InformationStrategic Report Financial Statements
Accounting Policies continued
Key accounting policies continued
The 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 period ending
31 March 2026, 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 such
as the recent US tariffs, 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, 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.
168 Halma plc | Annual Report and Accounts 2025
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 solvency method.
The buy‑in policies are recognised as assets of the pension plan with the fair value being the present value of scheme defined benefit
obligations. Movements in the fair value of the buy‑in policies are recognised in the Consolidated Statement of Comprehensive Income
and Expenditure.
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 2025 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 prior year, determining the recoverability of tax assets required 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 constituted state aid. Management’s assessment was that this represented a contingent liability and that the £14.7m paid to
HM Revenue & Customs (HMRC) in previous years should be within non‑current assets on the Consolidated Balance Sheet. This was
repaid in March 2025. 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.
Halma plc | Annual Report and Accounts 2025 169
Governance Report Other InformationStrategic Report Financial Statements
Accounting Policies continued
Critical accounting judgements and key sources of estimation uncertainty continued
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.
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 2025, 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. The Employee Benefit Trust (EBT) is consolidated on the basis that
the parent has control, therefore the assets and liabilities of the EBT are included on the Company balance sheet and shares held by the
EBT in the Company are presented as a deduction from equity.
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 and 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.
170 Halma plc | Annual Report and Accounts 2025
Other accounting policies continued
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.
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.
Halma plc | Annual Report and Accounts 2025 171
Governance Report Other InformationStrategic Report Financial Statements
Accounting Policies continued
Other accounting policies continued
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.
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.
172 Halma plc | Annual Report and Accounts 2025
Other accounting policies continued
(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.
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.
Halma plc | Annual Report and Accounts 2025 173
Governance Report Other InformationStrategic Report Financial Statements
Accounting Policies continued
Other accounting policies continued
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.
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.
174 Halma plc | Annual Report and Accounts 2025
Other accounting policies continued
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.
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.
Halma plc | Annual Report and Accounts 2025 175
Governance Report Other InformationStrategic Report Financial Statements
Other accounting policies continued
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 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.
(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.
Accounting Policies continued
176 Halma plc | Annual Report and Accounts 2025
Notes to the Accounts
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 in commercial industrial and public
spaces. The 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. Markets include: 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; and Infrastructure and Asset Safety
technologies that ensure the safe management and operating of critical assets. 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 Sector generates revenue by providing technologies that monitor the environment, ensure the quality and
availability of life‑critical resources, and are used in materials analysis and optoelectronic applications. Markets include: Optical Analysis
which provides world‑class optical, optoelectronic and spectral imaging systems that use light in a wide variety of industrial, digital and
research applications; Water Analysis & Treatment systems that assist communities and businesses around the world to sustainably
improve water quality and availability; and Environmental Monitoring technologies that detect hazardous gases, analyse air quality, gases
and water to monitor environmental quality and ensure that resource infrastructure operates efficiently. 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 technologies and digital solutions which 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. Markets include: Healthcare Assessment &
Analytics which provides 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; Therapeutic Solutions technologies, materials and solutions
that enable treatment across key clinical specialties; and Life Sciences technologies and solutions to enable in‑vitro diagnostic systems
and accelerate life‑science discoveries and development. 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.
Halma plc | Annual Report and Accounts 2025 177
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
1 Segmental analysis and revenue from contracts with customers continued
Segment revenue disaggregation

|  |  |  |  |  | Year ended 31 March 2025 |
|  |  |  |  |  | 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 | 242.6 | 260.3 | 173.1 | 143.1 | 47.8 | 35.1 | 902.0
Environmental & Analysis | 492.1 | 70.6 | 93.6 | 86.2 | 17.1 | 17.0 | 776.6
Healthcare | 303.9 | 100.3 | 50.0 | 74.7 | 15.4 | 26.1 | 570.4
Inter‑segmental sales | – | – | (0.9) | – | – | – | (0.9)
Revenue for the year | 1,038.6 | 431.2 | 315.8 | 304.0 | 80.3 | 78.2 | 2,248.1

|  |  |  |  |  | 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

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 £125.8m (2024: £113.3m).

|  | Year ended 31 March 2025 |
|  | Revenue |
| Revenue | recognised |
| recognised | at a point | Total
| over time | in time | Revenue
| £m | £m | £m
Safety | 10.7 | 891.3 | 902.0
Environmental & Analysis | 332.6 | 444.0 | 776.6
Healthcare | 80.3 | 490.1 | 570.4
Inter‑segmental sales | – | (0.9) | (0.9)
Revenue for the year | 423.6 | 1,824.5 | 2,248.1

|  |  | 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

178 Halma plc | Annual Report and Accounts 2025
1 Segmental analysis and revenue from contracts with customers continued
Segment revenue disaggregation continued

|  |  |  | Year ended 31 March 2025
| 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 | 895.8 | 6.2 | – | 902.0
Environmental & Analysis | 768.9 | 7.7 | – | 776.6
Healthcare | 552.6 | 17.8 | – | 570.4
Inter‑segmental sales | (0.9) | – | – | (0.9)
Revenue for the year | 2,216.4 | 31.7 | – | 2,248.1

|  |  |  | 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

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 |  |  |
| 2025 | Recognised | Recognised | Recognised
| Total | < 1 year | 1‑2 years | > 2 years
| £m | £m | £m | £m
Safety | 18.2 | 10.0 | 3.5 | 4.7
Environmental & Analysis | 23.0 | 11.9 | 4.2 | 6.9
Healthcare | 28.1 | 27.3 | 0.8 | –
Inter‑segmental sales | – | – | – | –
Total | 69.3 | 49.2 | 8.5 | 11.6

|  |  |  | 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

Halma plc | Annual Report and Accounts 2025 179
Governance Report Other InformationStrategic Report Financial Statements
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
| 2025 | 2024
| £m | £m
Segment profit before allocation of adjustments* |  |
Safety | 217.9 | 191.6
Environmental & Analysis | 185.5 | 147.9
Healthcare | 130.6 | 125.6
| 534.0 | 465.1
Segment profit after allocation of adjustments* |  |
Safety | 192.1 | 170.2
Environmental & Analysis | 174.8 | 138.0
Healthcare | 92.0 | 100.8
Segment profit | 458.9 | 409.0
Central administration costs | (47.7) | (41.1)
Group profit before interest and taxation | 411.2 | 367.9
Net finance expense | (26.9) | (27.6)
Group profit before taxation | 384.3 | 340.3
Taxation | (87.9) | (71.5)
Profit for the year | 296.4 | 268.8

* Adjustments include where applicable the amortisation and impairment of acquired intangible assets; acquisition items; significant restructuring costs;
profit or loss on disposal of operations and impairment of associates. 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 2025
|  |  |  | Acquisition items | Total | Disposal of |
| Amortisation of |  |  | Release of | amortisation | operations and |
| acquired |  | Adjustments | fair value | charge and | impairment |
| intangible | Transaction | to contingent | adjustments | acquisition | of associate |
| assets | costs | consideration | to inventory | items | (note 30) | Total
| £m | £m | £m | £m | £m | £m | £m
Safety | (21.7) | (2.2) | – | (1.9) | (25.8) | – | (25.8)
Environmental & Analysis | (12.9) | (0.5) | 0.8 | (0.1) | (12.7) | 2.0 | (10.7)
Healthcare | (22.3) | (5.6) | (6.1) | (4.6) | (38.6) | – | (38.6)
Total Segment & Group | (56.9) | (8.3) | (5.3) | (6.6) | (77.1) | 2.0 | (75.1)

The transaction costs in Safety, related to the acquisitions of Jam Topco Limited (MK Test), G.F.E. – Global Fire Equipment – Montagem de
Equipamento Electrónico S.A. (Global Fire Equipment), Remlive Limited (Remlive), Advantronic Systems, S.L. (Advantronic) and Safe‑com
Wireless LLC (Safe‑com) in the current year. In Environmental & Analysis, they relate to the acquisition of Hathorn Corporation Inc
(Hathorn) in the current year and Ziegler Electronic Devices GmbH (ZED) which was acquired in a prior year. In Healthcare, they related
to the acquisitions of Lamidey Noury Médical (Lamidey) in the current year and Infinite Leap, Visiometrics, TeDan Group and Rovers
Medical Devices B.V. (Rovers) in previous years.
The £5.3m adjustments to contingent consideration comprised a credit of £0.8m in Environmental & Analysis arising from a decrease
in estimates of the payable for Visual Imaging Resourcing LLC, a decrease in estimates of the payable for Alpha Instrumatics (Alpha)
partially set off against an increase in the estimates of the payable for Sewertronics. In Healthcare there was a debit of £6.1m arising
from increases in the estimates of the payable for Infinite Leap, AprioMed AB and Rovers.
The £6.6m release of fair value adjustments to inventory related to Remlive, Advantronic and Global Fire Equipment in Safety; Hathorn in
Environmental & Analysis; and Lamidey, TeDan, AprioMed AB and Rovers in Healthcare. All amounts have been released in relation
to TeDan, Advantronic, Hathorn, Lamidey, Global Fire Equipment, AprioMed AB and Rovers.
During the year, in Environmental & Analysis, Hydreka S.A.S. was disposed of for a profit of £3.0m and an impairment of investment
in associate assets was recognised for OneThird B.V. of £1.0m.
180 Halma plc | Annual Report and Accounts 2025
1 Segmental analysis and revenue from contracts with customers continued
Segment results continued

|  |  |  |  |  |  | Year ended 31 March 2024
|  |  |  | Acquisition items | Total |  |
| Amortisation |  |  | Release of | amortisation |  |
| and impairment |  | Adjustments | fair value | charge and | Disposal of |
| of acquired | Transaction | to contingent | adjustments | acquisition | operations and |
| intangible assets | costs | consideration | to inventory | items | restructuring | 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 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 AB and Rovers in the 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 AB, TeDan, Rovers and Alpha in Healthcare. All amounts have been released in relation to IZI,
WEETECH, Thermocable, FirePro, Lazer Safe, VIR and Alpha.

|  | Assets |  | Liabilities
| 31 March | 31 March | 31 March | 31 March
Before goodwill, interest in associates and other investments and acquired intangible assets | 2025 | 2024 | 2025 | 2024
are allocated to specific segment assets/liabilities | £m | £m | £m | £m
Safety | 377.5 | 358.7 | 125.7 | 127.4
Environmental & Analysis | 285.4 | 279.3 | 108.3 | 105.3
Healthcare | 258.4 | 253.4 | 90.6 | 83.0
Total segment assets/liabilities excluding goodwill, interest in associates |  |  |  |
and other investments and acquired intangible assets | 921.3 | 891.4 | 324.6 | 315.7
Goodwill | 1,263.3 | 1,211.0 | – | –
Interest in associate and other investments | 12.5 | 19.8 | – | –
Acquired intangible assets | 518.4 | 510.4 | – | –
Total segment assets/liabilities including goodwill, interest in associates |  |  |  |
and other investments and acquired intangible assets | 2,715.5 | 2,632.6 | 324.6 | 315.7

|  | Assets |  | Liabilities
| 31 March | 31 March | 31 March | 31 March
After goodwill, interest in associates and other investments and acquired intangible assets | 2025 | 2024 | 2025 | 2024
are allocated to specific segment assets/liabilities | £m | £m | £m | £m
Safety | 1,005.8 | 940.3 | 125.7 | 127.4
Environmental & Analysis | 667.3 | 657.1 | 108.3 | 105.3
Healthcare | 1,042.4 | 1,035.2 | 90.6 | 83.0
Total segment assets/liabilities including goodwill, interest in associates |  |  |  |
and other investments and acquired intangible assets | 2,715.5 | 2,632.6 | 324.6 | 315.7
Cash and bank balances/borrowings | 313.2 | 142.7 | 739.4 | 712.2
Derivative financial instruments | 1.1 | 0.7 | 0.8 | 2.6
Other unallocated assets/liabilities | 228.8 | 223.9 | 294.4 | 232.9
Total Group | 3,258.6 | 2,999.9 | 1,359.2 | 1,263.4

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.
Halma plc | Annual Report and Accounts 2025 181
Governance Report Other InformationStrategic Report Financial Statements
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
| 2025 | 2024 | 2025 | 2024
| £m | £m | £m | £m
Safety | 111.9 | 50.5 | 37.2 | 35.9
Environmental & Analysis | 38.5 | 115.0 | 21.8 | 21.6
Healthcare | 54.7 | 184.4 | 33.4 | 30.0
Total Segment additions/depreciation, amortisation and impairment | 205.1 | 349.9 | 92.4 | 87.5
Unallocated | 67.9 | 5.5 | 32.0 | 21.1
Total Group | 273.0 | 355.4 | 124.4 | 108.6

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
£1.1m was recognised in Safety, £0.4m was recognised in Environmental & Analysis and £1.7m was recognised in Healthcare (2024: £3.2m
comprising £1.0m in Safety, £0.3m in Environmental & Analysis and £1.9m 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
| 2025 | 2024
| £m | £m
United States of America | 900.5 | 922.8
Mainland Europe | 671.0 | 614.5
United Kingdom | 377.5 | 320.1
Asia Pacific | 124.2 | 133.9
Other countries | 61.8 | 45.3
| 2,135.0 | 2,036.6

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 15% (2024: 12%) of the Group’s total revenue
for the year ended 31 March 2025. No other single customer (2024: no other 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:
182 Halma plc | Annual Report and Accounts 2025
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
| 2025 | 2024 | 2025 | 2024
| £m | £m | pence | pence
Earnings from continuing operations attributable to owners of the parent | 296.4 | 268.8 | 78.49 | 71.23
Amortisation and impairment of acquired intangible assets (after tax) | 42.9 | 37.4 | 11.39 | 9.89
Acquisition transaction costs (after tax) | 8.2 | 4.3 | 2.16 | 1.15
Adjustments to contingent consideration (after tax) | 5.3 | (3.9) | 1.39 | (1.04)
Release of fair value adjustments to inventory (after tax) | 5.0 | 4.9 | 1.33 | 1.31
Impairment of associate | 1.0 | – | 0.26 | –
Disposal of operations and restructuring (after tax) | (3.0) | (0.5) | (0.79) | (0.14)
Adjusted earnings attributable to owners of the parent | 355.8 | 311.0 | 94.23 | 82.40
Weighted average number of shares in issue for basic earnings |  |  |  |
per share, million | 377.6 | 377.3 |  |

Diluted earnings per share

|  |  |  | Per share
| Year ended | Year ended | Year ended | Year ended
| 31 March | 31 March | 31 March | 31 March
| 2025 | 2024 | 2025 | 2024
| £m | £m | pence | pence
Earnings from continuing operations attributable to owners of the parent | 296.4 | 268.8 | 78.14 | 70.96
Weighted average number of shares in issue for basic earnings per share, million | 377.6 | 377.3 |  |
Dilutive potential shares – share awards, million | 1.6 | 1.4 |  |
Weighted average number of shares in issue for diluted earnings |  |  |  |
per share, million | 379.2 | 378.7 |  |

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, 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
| 2025 | 2024
| £m | £m
Profit after tax | 296.4 | 268.8
Adjustments 1 | 59.4 | 42.2
Adjusted profit after tax 1 | 355.8 | 311.0
Total equity | 1,899.4 | 1,736.5
Less net retirement benefit assets | (2.0) | (30.9)
Deferred tax liabilities on retirement benefits | 0.6 | 7.9
Cumulative fair value adjustments on equity investments through other comprehensive income | (3.3) | (3.2)
Cumulative amortisation and impairment of acquired intangible assets | 505.9 | 458.2
Historical adjustments to goodwill 2 | 89.5 | 89.5
Total Invested Capital | 2,490.1 | 2,258.0
Average Total Invested Capital 3 | 2,374.1 | 2,165.9
Return on Total Invested Capital (ROTIC) 4 | 15.0% | 14.4%

Halma plc | Annual Report and Accounts 2025 183
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
3 Alternative performance measures continued
Return on Capital Employed

| 31 March | 31 March
| 2025 | 2024
| £m | £m
Profit before tax | 384.3 | 340.3
Adjustments 1 | 75.1 | 56.1
Net finance costs | 26.9 | 27.6
Lease interest | (4.6) | (3.2)
Adjusted operating profit 1 after share of results of associates and lease interest | 481.7 | 420.8
Computer software costs within other intangible assets | 3.2 | 3.3
Capitalised development costs within other intangible assets | 51.4 | 51.8
Other intangibles within other intangible assets | 3.0 | 3.5
Property, plant and equipment | 283.2 | 236.8
Inventories | 300.3 | 304.8
Trade and other receivables | 485.9 | 460.9
Current trade and other payables | (343.3) | (296.5)
Current lease liabilities | (23.1) | (19.5)
Current provisions | (44.5) | (35.0)
Net tax receivable/(payable) | 4.2 | (0.9)
Non‑current trade and other payables | (24.5) | (23.9)
Non‑current provisions | (11.2) | (10.7)
Non‑current lease liabilities | (86.5) | (64.2)
Add back contingent purchase consideration | 27.0 | 29.2
Capital Employed | 625.1 | 639.6
Average Capital Employed 3 | 632.4 | 617.4
Return on Capital Employed (ROCE) 4 | 76.2% | 68.2%

1 Adjustments include the amortisation and impairment of acquired intangible assets; acquisition items; significant restructuring costs; profit or loss on disposal
of operations and impairment of associates. 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 2023 Total Invested Capital and Capital Employed balances were £2,073.8
and £595.2m 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
Organic growth measures the change in revenue and profit from continuing Group operations at constant currency.
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 excludes the effects of currency movements. The current year’s revenue and profit are restated at last year’s
exchange rates.
Organic growth has been calculated for the Group as follows:
184 Halma plc | Annual Report and Accounts 2025
3 Alternative performance measures continued
Group

|  |  | Revenue
| Year ended | Year ended |
| 31 March | 31 March |
| 2025 | 2024 | % growth
| £m | £m | contribution
Organic at constant currency (“organic”) | 2,216.2 | 2,026.7 | 9.4%
Acquired and disposed revenue | 63.6 | 7.4 | 2.7%
Constant currency adjustment | (31.7) |  | (1.6)%
Continuing operations – reported | 2,248.1 | 2,034.1 | 10.5%

|  |  | 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 |
| 2025 | 2024 | % growth | 2025 | 2024 | % growth
| £m | £m | contribution | £m | £m | contribution
Organic at constant currency (“organic”) | 477.2 | 423.7 | 12.6% | 460.6 | 396.1 | 16.3%
Acquired and disposed profit | 17.2 | 0.3 | 4.0% | 6.9 | 0.3 | 1.7%
Constant currency adjustment | (8.1) |  | (1.9)% | (8.1) |  | (2.1)%
Continuing operations – reported | 486.3 | 424.0 | 14.7% | 459.4 | 396.4 | 15.9%

Sector Organic growth
Organic growth 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 |
| 2025 | 2024 | % growth | 2025 | 2024 | % growth
| £m | £m | contribution | £m | £m | contribution
Organic at constant currency (“organic”) | 886.3 | 822.6 | 7.7% | 214.5 | 192.1 | 11.6%
Acquired and disposed revenue/profit | 27.7 | 1.2 | 3.2% | 6.9 | (0.5) | 3.9%
Constant currency adjustment | (12.0) |  | (1.4)% | (3.5) |  | (1.8)%
Continuing operations – reported | 902.0 | 823.8 | 9.5% | 217.9 | 191.6 | 13.7%

Environmental & Analysis

|  |  | Revenue |  |  | Adjusted * profit before taxation
| Year ended | Year ended |  | Year ended | Year ended
| 31 March | 31 March |  | 31 March | 31 March |
| 2025 | 2024 | % growth | 2025 | 2024 | % growth
| £m | £m | contribution | £m | £m | contribution
Organic at constant currency (“organic”) | 776.3 | 652.2 | 19.0% | 184.6 | 147.1 | 25.5%
Acquired and disposed revenue/profit | 11.1 | 6.2 | 0.6% | 3.5 | 0.8 | 1.7%
Constant currency adjustment | (10.8) |  | (1.6)% | (2.6) |  | (1.8)%
Continuing operations – reported | 776.6 | 658.4 | 18.0% | 185.5 | 147.9 | 25.4%

Healthcare

|  |  | Revenue |  |  | Adjusted * profit before taxation
| Year ended | Year ended |  | Year ended | Year ended
| 31 March | 31 March |  | 31 March | 31 March |
| 2025 | 2024 | % growth | 2025 | 2024 | % growth
| £m | £m | contribution | £m | £m | contribution
Organic at constant currency (“organic”) | 554.5 | 552.9 | 0.3% | 125.9 | 125.6 | 0.3%
Acquired and disposed revenue/profit | 24.9 | – | 4.5% | 6.8 | – | 5.4%
Constant currency adjustment | (9.0) |  | (1.6)% | (2.1) |  | (1.7)%
Continuing operations – reported | 570.4 | 552.9 | 3.2% | 130.6 | 125.6 | 4.0%

* Adjustments include where applicable the amortisation and impairment of acquired intangible assets; acquisition items; significant restructuring costs;
profit or loss on disposal of operations and impairment of associates.
Halma plc | Annual Report and Accounts 2025 185
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
3 Alternative performance measures continued
Adjusted EBIT/EBITDA

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £m | £m
Profit before interest and taxation (EBIT) | 411.2 | 367.9
Add back: |  |
Acquisition items (note 1) | 20.2 | 7.1
Profit on disposal of operations and impairment of associate (note 1) | (2.0) | (0.5)
Amortisation and impairment of acquired intangible assets (note 1) | 56.9 | 49.5
Adjusted profit before interest and taxation (Adjusted EBIT) | 486.3 | 424.0
Depreciation, impairment and amortisation (excluding acquired intangible assets) | 66.5 | 59.1
EBITDA | 552.8 | 483.1

Adjusted operating profit

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £m | £m
Operating profit | 409.5 | 367.7
Add back: |  |
Acquisition items (note 1) | 20.2 | 7.1
Amortisation and impairment of acquired intangible assets (note 1) | 56.9 | 49.5
Adjusted operating profit | 486.6 | 424.3

Adjusted operating cash flow

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £m | £m
Net cash from operating activities (note 26) | 492.4 | 385.0
Add: |  |
Net acquisition costs paid | 4.9 | 6.0
Taxes paid | 103.3 | 87.2
Proceeds from sale of property, plant and equipment and capitalised development costs | 0.9 | 1.6
Share awards vested not settled by own shares (note 24) | 3.5 | 5.4
Deferred consideration paid in excess of payable estimated on acquisition | 0.1 | 1.5
Less: |  |
Purchase of property, plant and equipment (excluding Right of use assets) | (43.8) | (32.8)
Purchase of computer software and other intangibles | (1.8) | (2.4)
Development costs capitalised | (13.8) | (16.4)
Adjusted operating cash flow | 545.7 | 435.1
Cash conversion % (adjusted operating cash flow/adjusted operating profit) | 112% | 103%

4 Finance income

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £m | £m
Interest receivable | 4.9 | 1.2
Net interest credit on pension plan assets | 1.5 | 1.9
| 6.4 | 3.1

186 Halma plc | Annual Report and Accounts 2025
5 Finance expense

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £m | £m
Interest payable on borrowings | 27.9 | 26.1
Interest payable on lease obligations | 4.6 | 3.2
Amortisation of finance costs | 0.5 | 0.9
Other interest payable | 0.2 | 0.3
Fair value movement on derivative financial instruments | 0.1 | 0.2
| 33.3 | 30.7

6 Profit before taxation
Profit before taxation comprises:

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £m | £m
Revenue | 2,248.1 | 2,034.1
Direct materials/direct labour | (944.9) | (873.5)
Production overhead | (169.6) | (156.8)
Selling costs | (203.3) | (187.1)
Distribution costs | (35.0) | (33.6)
Administrative expenses | (485.8) | (415.4)
Operating profit | 409.5 | 367.7
Share of loss and impairment of associate | (1.3) | (0.3)
Profit on disposal of operations | 3.0 | 0.5
Profit before interest and taxation | 411.2 | 367.9
Net finance expense | (26.9) | (27.6)
Profit before taxation | 384.3 | 340.3

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
|  | 2025 | 2024
|  | £m | £m
Profit before taxation is stated after charging/(crediting): |  |  |
Depreciation |  | 50.9 | 44.2
Amortisation |  | 69.3 | 61.2
Impairment of other intangible assets |  | 3.1 | 3.0
Impairment of property, plant and equipment |  | 0.1 | 0.2
Net impairment loss on trade receivables (reversed)/recognised (note 16) |  | (0.5) | 0.7
Research costs* |  | 94.6 | 87.4
Foreign exchange loss |  | 1.1 | 1.6
Profit on disposal of operations (note 30) |  | (3.0) | (0.5)
Profit on sale of property, plant and equipment and computer software |  | (0.2) | (0.2)
Cost of inventories recognised as an expense |  | 1,100.6 | 1,030.3
Staff costs (note 7) |  | 600.1 | 563.0
Auditors’ remuneration | Audit services to the Company | 0.7 | 0.7
| Audit of the Company’s subsidiaries | 2.4 | 2.4
| Total audit fees | 3.1 | 3.1
| Audit related fees – interim review | 0.1 | 0.1
| Other services** | – | –
| Total non‑audit fees | 0.1 | 0.1
| Total fees | 3.2 | 3.2

* A further £13.8m (2024: £16.4m) of development costs has been capitalised in the year. See note 12. Following a review by management certain costs in relation to one
company have been reclassified as non‑R&D related costs. This has resulted in a restatement of the prior year Research costs which has reduced by £3.4m from that
previously disclosed.
** Refer to the Audit Committee Report on pages 116 to 122 for further details.
Halma plc | Annual Report and Accounts 2025 187
Governance Report Other InformationStrategic Report Financial Statements
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
| 2025 | 2024
| Number | Number
United States of America | 3,025 | 2,856
Mainland Europe | 1,786 | 1,685
United Kingdom | 2,734 | 2,564
Asia Pacific | 1,225 | 1,288
Other countries | 268 | 222
| 9,038 | 8,615

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

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| Number | Number
United States of America | 2,985 | 2,881
Mainland Europe | 1,803 | 1,605
United Kingdom | 2,652 | 2,486
Asia Pacific | 1,320 | 1,277
Other countries | 278 | 366
| 9,038 | 8,615

Group employee costs comprise:

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £m | £m
Wages and salaries | 488.8 | 460.0
Social security costs | 63.9 | 60.5
Pension costs (note 29) | 21.1 | 19.6
Share‑based payment charge (note 24) | 26.3 | 22.9
| 600.1 | 563.0

8 Directors’ remuneration
The remuneration of the Directors is set out on pages 125 to 148 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
| 2025 | 2024
| £m | £m
Wages, salaries and fees | 8.0 | 7.0
Pension costs | – | –
Share‑based payment charge | 4.6 | 3.1
| 12.6 | 10.1

188 Halma plc | Annual Report and Accounts 2025
9 Taxation
Recognised in the Consolidated Income Statement

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £m | £m
Current tax |  |
UK corporation tax at 25% (2024: 25%) | 25.9 | 22.8
Overseas taxation | 81.2 | 67.3
Adjustments in respect of prior years | (3.7) | (0.2)
Total current tax charge | 103.4 | 89.9
Deferred tax |  |
Origination and reversal of timing differences | (18.3) | (19.2)
Adjustments in respect of prior years | 2.8 | 0.8
Total deferred tax credit | (15.5) | (18.4)
Total tax charge recognised in the Consolidated Income Statement | 87.9 | 71.5
Reconciliation of the effective tax rate: |  |
Profit before tax | 384.3 | 340.3
Tax at the UK corporation tax rate of 25% (2024: 25%) | 96.1 | 85.1
Overseas tax rate differences | (6.3) | (6.2)
Tax incentives, exemptions and credits (including patent box, R&D and High‑Tech status) | (9.4) | (9.6)
Permanent differences | 8.4 | 1.6
Adjustments in respect of prior years | (0.9) | 0.6
Total tax charge recognised in the Consolidated Income Statement | 87.9 | 71.5
Effective tax rate | 22.9% | 21.0%

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £m | £m
Adjusted* profit before tax | 459.4 | 396.4
Total tax charge on adjusted* profit | 103.6 | 85.4
Effective tax rate | 22.6% | 21.5%

* Adjustments include the amortisation and impairment of acquired intangible assets, acquisition items, significant restructuring costs, profit or loss on disposal
of operations and impairment of associates. 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 UK Finance (No. 2) Act 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 introduced 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 the Group).
The assessment of the exposure to Pillar Two income taxes is based on the latest financial information for the year ended 31 March 2025
of the constituent entities in the Group.
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%. However, the Pillar Two income taxes exposure is assessed to be immaterial.
The Group continues to apply the exemption under the IAS 12 amendment to recognising and disclosing information about deferred tax
assets and liabilities related to top up income taxes.
Halma plc | Annual Report and Accounts 2025 189
Governance Report Other InformationStrategic Report Financial Statements
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
| 2025 | 2024
| £m | £m
Current tax |  |
Retirement benefits | – | (0.9)
Deferred tax (note 22) |  |
Retirement benefits | (7.4) | (2.1)
Effective portion of changes in fair value of cash flow hedges | 0.1 | (0.2)
| (7.3) | (3.2)

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
| 2025 | 2024
| £m | £m
Current tax |  |
Excess tax deductions related to share‑based payments on vested awards | (0.9) | 0.1
Deferred tax (note 22) |  |
Change in estimated excess tax deductions related to share‑based payments | (0.8) | (0.6)
| (1.7) | (0.5)

10 Dividends

|  | Per ordinary share |  |
| Year ended | Year ended | Year ended | Year ended
| 31 March | 31 March | 31 March | 31 March
| 2025 | 2024 | 2025 | 2024
| pence | pence | £m | £m
Amounts recognised as distributions to shareholders in the year |  |  |  |
Final dividend for the year ended 31 March 2024 (31 March 2023) | 13.20 | 12.34 | 49.8 | 46.5
Interim dividend for the year ended 31 March 2025 (31 March 2024) | 9.00 | 8.41 | 34.0 | 31.7
| 22.20 | 20.75 | 83.8 | 78.2
Dividends declared in respect of the year |  |  |  |
Interim dividend for the year ended 31 March 2025 (31 March 2024) | 9.00 | 8.41 | 34.0 | 31.7
Proposed final dividend for the year ended 31 March 2025 (31 March 2024) | 14.12 | 13.20 | 53.3 | 49.8
| 23.12 | 21.61 | 87.3 | 81.5

The proposed final dividend is subject to approval by shareholders at the Annual General Meeting on 24 July 2025 and has not been
included as a liability in these financial statements.
190 Halma plc | Annual Report and Accounts 2025
11 Goodwill

| 31 March | 31 March
| 2025 | 2024
| £m | £m
Cost |  |
At beginning of year | 1,211.0 | 1,120.5
Additions (note 25) | 72.7 | 115.0
Acquisition adjustments to prior years (note 25) | 5.6 | 0.6
Disposals (note 30) | (2.0) | (1.6)
Exchange adjustments | (24.0) | (23.5)
At end of year | 1,263.3 | 1,211.0
Provision for impairment |  |
At beginning and end of year | – | –
Carrying amounts | 1,263.3 | 1,211.0

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 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 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
| 2025 | 2024
| £m | £m
Safety |  |
Fire | 190.5 | 181.3
Doors, Security and Elevators | 108.3 | 105.0
Safety Interlocks and Corrosion Monitoring | 124.5 | 103.5
Bursting Discs | 9.0 | 9.2
| 432.3 | 399.0
Environmental & Analysis |  |
Water | 146.1 | 137.6
Analysis | 78.8 | 80.4
Environmental Monitoring | 32.8 | 33.1
Gas Detection | 25.2 | 25.6
| 282.9 | 276.7
Healthcare |  |
Life Sciences | 38.6 | 39.4
Healthcare Assessment | 233.4 | 238.3
Therapeutic Solutions | 276.1 | 257.6
| 548.1 | 535.3
Total Group | 1,263.3 | 1,211.0

Halma plc | Annual Report and Accounts 2025 191
Governance Report Other InformationStrategic Report Financial Statements
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 Board approved budgets prepared by
management and strategic plans, 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 2026;
– 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 2026 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 2026 budget to derive the cash flows arising in the years to March 2027 and March 2028
based on the average growth rate calculated in the relevant sector strategic plan. A long‑term rate is applied to these values for the year
to March 2029 and onwards capped at the weighted average forecast GDP growth rates of the markets into which that CGU group sells.
Each year the Group consider the results of ongoing climate and emerging risk reviews and include 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 2025, additional physical risks,
impacting both one‑off cash flows and long‑term growth rates, have been included in cash flow estimates. Immaterial additional capital
expenditure to meet the Group’s emission targets have also been factored in to future cash flow estimates.
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 11.73% (2024: 12.19%). 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 10.16% to 15.55% (2024: 10.81% to 15.76%) 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
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024
Fire | 15.55% | 15.76% | 10.77% | 12.32% | 2.09% | 2.37%
Water | 12.26% | 12.33% | 10.32% | 11.47% | 1.94% | 2.11%
Healthcare Assessment | 14.09% | 14.65% | 8.43% | 8.79% | 2.18% | 2.30%
Therapeutic Solutions | 13.68% | 13.62% | 8.43% | 8.79% | 2.06% | 1.88%

Sensitivity to changes in assumptions
For all 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.
192 Halma plc | Annual Report and Accounts 2025
12 Other intangible assets

|  |  | Acquired intangible assets |  | Internally |  |  |
|  |  |  |  | generated |  |  |
| Customer |  | Trademarks, |  | capitalised |  |  |
| and supplier | Technical | brands and |  | development | Computer | Other |
| relationship 1 | know‑how 2 | patents 3 | Total | costs 4 | software | intangibles 5 | Total
| £m | £m | £m | £m | £m | £m | £m | £m
Cost |  |  |  |  |  |  |  |
At 1 April 2023 | 465.1 | 261.5 | 107.6 | 834.2 | 140.4 | 22.5 | 6.4 | 1,003.5
Assets of businesses acquired | 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
Assets of businesses acquired (note 25) | 39.4 | 29.2 | 6.6 | 75.2 | – | – | – | 75.2
Transfer between categories | – | – | – | – | (0.7) | 0.7 | – | –
Additions at cost | – | – | – | – | 13.8 | 1.1 | 0.7 | 15.6
Assets of business sold | (0.1) | (0.1) | (0.1) | (0.3) | – | (0.3) | – | (0.6)
Disposals and retirements | – | – | – | – | (4.1) | (0.9) | (0.3) | (5.3)
Exchange adjustments | (9.8) | (6.6) | (2.8) | (19.2) | (2.2) | (0.1) | (0.1) | (21.6)
At 31 March 2025 | 561.8 | 333.7 | 128.8 | 1,024.3 | 158.9 | 23.5 | 7.4 | 1,214.1
Accumulated amortisation & impairment |  |  |  |  |  |  |  |
At 1 April 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
Charge for the year | 26.3 | 24.0 | 6.6 | 56.9 | 10.4 | 1.3 | 0.7 | 69.3
Transfer between categories | – | – | – | – | (0.7) | 0.7 | – | –
Impairment | – | – | – | – | 3.1 | – | – | 3.1
Assets of business sold | (0.1) | – | – | (0.1) | – | (0.3) | – | (0.4)
Disposals and retirements | – | – | – | – | (4.1) | (0.8) | – | (4.9)
Exchange adjustments | (5.3) | (2.5) | (1.3) | (9.1) | (1.5) | (0.3) | 0.1 | (10.8)
At 31 March 2025 | 307.5 | 128.0 | 70.4 | 505.9 | 107.5 | 20.3 | 4.4 | 638.1
Carrying amounts |  |  |  |  |  |  |  |
At 31 March 2025 | 254.3 | 205.7 | 58.4 | 518.4 | 51.4 | 3.2 | 3.0 | 576.0
At 31 March 2024 | 245.7 | 204.7 | 60.0 | 510.4 | 51.8 | 3.3 | 3.5 | 569.0

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: MK Test: £17.6m, IZI: £14.3m (2024: £15.7m); FirePro: £37.0m (2024: £40.6m); Sewertronics: £10.3m (2024: £11.2m); TeDan: £14.9
(2024: £16.0m) and Rovers: £18m (2024: £25.6m). The remaining amortisation periods for these assets are 11, 12, 13, 11, 20 and 24 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: Lamidey: £13.8m, IZI: £29.9m (2024: £33.0m); FirePro: £24.5m (2024: £26.5m); and NovaBone: £15.8m (2024: £17.8m); TeDan: £11.3m (2024: £12.7m) and
Rovers: £19.9m (2024: £21.3m). The remaining amortisation periods for these assets are 15, 12, 16, 10, 9 and 19 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.
There are no individually material balances as at 31 March 2025.
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.
Halma plc | Annual Report and Accounts 2025 193
Governance Report Other InformationStrategic Report Financial Statements
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 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 | 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
Transfer between category | – | (0.7) | 3.0 | (2.3) | –
Assets of businesses acquired (note 25) | 3.4 | 2.4 | 1.0 | 4.2 | 11.0
Assets of business sold | (1.9) | – | – | (4.8) | (6.7)
Additions at cost | 49.1 | 5.4 | 6.0 | 32.4 | 92.9
Disposals and retirements | (5.8) | (0.1) | (0.7) | (8.1) | (14.7)
Exchange adjustments | (2.7) | (0.7) | (0.5) | (3.1) | (7.0)
At 31 March 2025 | 208.3 | 86.8 | 41.1 | 252.4 | 588.6
Accumulated depreciation & impairment |  |  |  |  |
At 1 April 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
Transfer between category | – | (0.3) | 1.1 | (0.8) | –
Charge for the year | 24.9 | 1.5 | 3.5 | 21.0 | 50.9
Impairment | – | – | – | 0.1 | 0.1
Assets of business sold | (1.2) | – | – | (3.8) | (5.0)
Disposals and retirements | (4.8) | – | (0.5) | (7.6) | (12.9)
Exchange adjustments | (1.8) | (0.2) | (0.3) | (1.7) | (4.0)
At 31 March 2025 | 103.9 | 21.3 | 22.5 | 157.7 | 305.4
Carrying amounts |  |  |  |  |
At 31 March 2025 | 104.4 | 65.5 | 18.6 | 94.7 | 283.2
At 31 March 2024 | 79.4 | 60.2 | 13.6 | 83.6 | 236.8

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.
194 Halma plc | Annual Report and Accounts 2025
14 Interest in associate and other investments

| 31 March | 31 March
| 2025 | 2024
| £m | £m
Interest in associate | 0.5 | 1.8
Financial assets at fair value through other comprehensive income |  |
– Equity instruments | 12.0 | 18.0
| 12.5 | 19.8

Interest in associate

| 31 March | 31 March
| 2025 | 2024
| £m | £m
At beginning of the year | 1.8 | 2.1
Impairment of investment | (1.0) | –
Group’s share of loss of associate | (0.3) | (0.3)
At end of year | 0.5 | 1.8

During the year, the Group reviewed its investment in OneThird B.V. as the business was behind growth targets. “Value in use” calculations
were prepared based on projected cash flow forecasts prepared by the management team of One Third B.V. Based on these calculations,
the Group recognised an impairment of the investment value of £1.0m (2024: £nil). One Third B.V. successfully concluded a funding round
in December 2024, the Group did not participate and consequently it now owns 22.9% of One Third B.V. (2024: 31.0%).
OneThird B.V. has its registered office at Almelosestraat 19, 7495 TG Ambt Delden, Netherlands. The Group owns 23,142 preferred A3 shares
which represents 37% of the total preferred A3 shares issued (2024: 37%). The Group also owns 30,000 preferred A1 which is 100% of the A1
preferred shares issued (2024: 100% restated). The company also has common shares, A2 preference shares and A4 preference shares in
issue of which the Group does not have any holdings.

| 31 March | 31 March
| 2025 | 2024
| £m | £m
Aggregated amounts relating to associate |  |
Non‑current assets | 2.0 | 2.0
Current assets | 0.7 | 0.8
Current liabilities | (0.2) | (0.1)
Net assets | 2.5 | 2.7
Group’s share of net assets of associate | 0.6 | 0.8
Revenue | 0.6 | 0.3
Loss | (1.5) | (1.0)
Group’s share of loss of associate | (0.3) | (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
| 2025 | 2024
| £m | £m
Unlisted securities |  |
At beginning of the year | 18.0 | 18.9
Additions in the year | – | 0.3
Changes in fair value recognised in other comprehensive income | (6.0) | (1.2)
At end of year | 12.0 | 18.0

Unlisted securities comprise of investments in Oxa Autonomy Ltd and VAPAR Innovation PTY Ltd. During the year the management teams
at Owlytics Healthcare Limited and Valencell Inc began formal proceedings to wind up their respective business operations. The Group
had fully impaired its investments in both of these companies in the year to 31 March 2024 and this impairment has now been recycled
to retained earnings. Further information on methods and assumptions used in determining fair value is provided in note 27.
Halma plc | Annual Report and Accounts 2025 195
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
15 Inventories

| 31 March | 31 March
| 2025 | 2024
| £m | £m
Raw materials and consumables | 188.4 | 175.5
Work in progress | 31.9 | 28.4
Finished goods and goods for resale | 80.0 | 100.9
| 300.3 | 304.8

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

| 31 March | 31 March
| 2025 | 2024
| £m | £m
At beginning of the year | 55.6 | 44.5
Write downs of inventories recognised as an expense | 5.3 | 8.7
Recognition of provisions for businesses acquired | 1.6 | 5.2
Derecognition of provisions for businesses disposed | (0.1) | 0.1
Utilisation and amounts reversed against inventories previously impaired | (0.7) | (1.9)
Exchange adjustments | (0.8) | (1.0)
At end of the year | 60.9 | 55.6

In the year ended 31 March 2025, 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
| 2025 | 2024
| £m | £m
Trade receivables | 376.1 | 361.0
Allowance for doubtful debts | (6.3) | (7.1)
| 369.8 | 353.9
Other receivables | 29.2 | 26.5
Prepayments | 32.7 | 31.3
Contract assets (note 18) | 54.2 | 49.2
| 485.9 | 460.9

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
| 2025 | 2024
| £m | £m
At beginning of the year | 7.1 | 6.9
Net impairment (reversal)/loss | (0.5) | 0.7
Amounts recovered against trade receivables previously written down/amounts utilised | (0.9) | (0.8)
Recognition of provisions for businesses acquired | 0.7 | 0.5
Exchange adjustments | (0.1) | (0.2)
At end of the year | 6.3 | 7.1

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 (2024: £nil).
196 Halma plc | Annual Report and Accounts 2025
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
| 2025 | 2024 | 2025 | 2024
| £m | £m | £m | £m
Not yet due | 293.1 | 281.2 | 292.8 | 280.8
Up to one month overdue | 52.5 | 50.5 | 52.4 | 50.4
Between one and two months overdue | 10.9 | 11.5 | 10.8 | 11.4
Between two and three months overdue | 5.3 | 4.2 | 5.2 | 3.8
Over three months overdue | 14.3 | 13.6 | 8.6 | 7.5
| 376.1 | 361.0 | 369.8 | 353.9

17 Trade and other payables: falling due within one year

| 31 March | 31 March
| 2025 | 2024
| £m | £m
Trade payables | 131.5 | 117.5
Other taxation and social security | 12.2 | 12.9
Other payables | 6.7 | 9.7
Accruals | 140.0 | 121.5
Contract liabilities (note 18) | 50.9 | 34.7
Deferred government grant income | 2.0 | 0.2
| 343.3 | 296.5

Other payables comprise various balances across the Group including share‑based payments related amounts of £3.1m (2024: £1.8m),
deferred R&D expenditure tax credits and other non‑trade payables. These comprise £5.8m (2024: £8.8m) of financial liabilities and £0.9m
(2024: £0.9m) of non‑financial liabilities. Deferred government grant income relates to a subsidy received for purchase of a building during
the year.
18 Contract balances

| 31 March | 31 March
| 2025 | 2024
| £m | £m
Contract costs | 1.4 | 1.6
Contract assets (note 16) | 54.2 | 49.2
Contract liabilities current (note 17) | (50.9) | (34.7)
Contract liabilities non‑current (note 21) | (18.1) | (18.8)
Total contract liabilities | (69.0) | (53.5)

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
| 2025 | 2024 | 2025 | Restated*
| £m | £m | £m | £m
Amounts included in contract balances at the beginning of the year | 49.2 | 38.7 | (53.5) | (53.0)
Transfers to receivables during the year | (46.7) | (37.5) |  |
Performance obligations arising in the current reporting year |  |  |  |
Increases as a result of billing ahead of performance |  |  | (96.1) | (59.8)
Decreases as a result of revenue recognised in the year |  |  | 80.5 | 61.0
Increases as a result of performance in advance of billing | 52.7 | 48.8 |  |
Amounts arising through business combinations | – | – | (0.5) | (2.2)
Exchange movements | (1.0) | (0.8) | 0.6 | 0.5
Amounts included in contract balances at the end of the year | 54.2 | 49.2 | (69.0) | (53.5)

* The balances for increases as a result of billing ahead of performance and decreases as a result of revenue recognised in the year for the year ended 31 March 2024
have been restated where amounts were presented net in error in a small number of companies. There was no change to the closing balance of contract liabilities.
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.
Halma plc | Annual Report and Accounts 2025 197
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
19 Borrowings

| 31 March | 31 March
| 2025 | 2024
| £m | £m
Overdrafts | 0.5 | 0.3
Unsecured loan notes falling due within one year | 35.1 | –
Total borrowings falling due within one year | 35.6 | 0.3
Unsecured loan notes falling due after more than one year | 659.9 | 370.9
Unsecured bank loans falling due after more than one year | 43.9 | 341.0
Total borrowings falling due after more than one year | 703.8 | 711.9
Total borrowings | 739.4 | 712.2

In the current year, the loan notes falling due after more than one year relate to the United States Private Placement completed in May 2022
and the new Private Placement completed during the year, in April 2024.
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
| 2025 | 2024
| £m | £m
Current | 44.5 | 35.0
Non‑current | 11.2 | 10.7
| 55.7 | 45.7

| Contingent |  |  | Legal, |
| purchase |  | Product | contractual |
| consideration | Dilapidations | warranty | and other | Total
| £m | £m | £m | £m | £m
At 31 March 2024 | 29.2 | 3.6 | 8.0 | 4.9 | 45.7
Additional provision in the year | 6.2 | 0.8 | 5.0 | 15.4 | 27.4
Arising on acquisition (note 25) | 3.3 | 0.1 | 0.2 | – | 3.6
Liabilities of business sold | – | – | – | (0.2) | (0.2)
Utilised during the year | (10.4) | – | (1.4) | (5.2) | (17.0)
Released during the year | (0.9) | (0.3) | (1.2) | (0.6) | (3.0)
Exchange adjustments | (0.4) | – | (0.2) | (0.2) | (0.8)
At 31 March 2025 | 27.0 | 4.2 | 10.4 | 14.1 | 55.7

198 Halma plc | Annual Report and Accounts 2025
20 Provisions continued
Contingent purchase consideration
The provision at the beginning of the year comprised £29.2m, of which £24.5m was payable within one year, included amounts based
on actual results for the final earnout period for VIR and Apriomed. It also included estimates for the final earnout period for Visiometrics,
Infinite Leap and Sewertronics.
The £6.2m additional provision in the year related to revisions to the estimate of Rovers and Infinite Leap which both fall due in the
12 months following year‑end.
The £10.4m utilised during the year related to the payments for Sewertronics, VIR, Tedan and the holdback for Apriomed.
The £0.9m released during the year related to the revisions to the estimates of VIR and Alpha.
The closing total provision of £27.0m, of which £23.3m is payable within one year, includes amounts based on the latest estimate
for the final earnout period for Visiometrics, Infinite Leap, Alpha Instrumatics, Remlive, Rovers and GFE.
The balance due after more than one year of £3.7m comprises the estimated future earnouts for Safe‑com, ZED, Sewertronics and VIR.
The total contingent purchase consideration payable in future for the existing acquisitions is a minimum of £10.1m with a maximum
possible payable of £71.1m.
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 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 2025 to 2046 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 54 to 91,
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
| 2025 | 2024
| £m | £m
Other payables | 1.4 | 3.8
Other taxation and social security | – | –
Accruals | 4.2 | 0.7
Contract liabilities (note 18) | 18.1 | 18.8
Deferred government grant income | 0.8 | 0.6
| 24.5 | 23.9

Halma plc | Annual Report and Accounts 2025 199
Governance Report Other InformationStrategic Report Financial Statements
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 2024 | (7.9) | (123.4) | (8.6) | 13.2 | 8.3 | 24.2 | 19.6 | (74.6)
Credit/(charge) to Consolidated Income |  |  |  |  |  |  |  |
Statement | (0.1) | 14.8 | (1.4) | 11.7 | 1.3 | (8.3) | (2.5) | 15.5
Credit/(charge) to Consolidated Statement |  |  |  |  |  |  |  |
of Comprehensive Income |  |  |  |  |  |  |  |
and Expense | 7.4 | – | – | (0.1) | – | – | – | 7.3
Credit to equity | – | – | – | – | 0.8 | – | – | 0.8
Arising on acquisition |  |  |  |  |  |  |  |
(note 25) | – | (18.5) | – | (0.5) | – | 0.2 | 0.3 | (18.5)
Disposal of business | – | 0.1 | – | – | – | – | – | 0.1
Exchange adjustments | – | 2.7 | 0.2 | (1.9) | – | (0.5) | (0.1) | 0.4
At 31 March 2025 | (0.6) | (124.3) | (9.8) | 22.4 | 10.4 | 15.6 | 17.3 | (69.0)

| 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 | – | (40.1) | – | (0.6) | – | 9.8 | – | (30.9)
Disposal of business | – | 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)

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
| 2025 | 2024
| £m | £m
Deferred tax liability | (73.4) | (79.5)
Deferred tax asset | 4.4 | 4.9
Net deferred tax liability | (69.0) | (74.6)

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

| 31 March | 31 March
| 2025 | 2024
| £m | £m
At beginning of year | (74.6) | (67.2)
(Charge)/credit to Consolidated Income Statement: |  |
UK | (2.0) | (0.8)
Overseas | 17.5 | 19.2
Charge to Consolidated Statement of Comprehensive Income | 7.3 | 2.3
Credit to equity | 0.8 | 0.6
Arising on acquisition (note 25) | (18.8) | (30.9)
Deferred tax of business sold | 0.1 | 0.5
Exchange adjustments | 0.7 | 1.7
At end of year | (69.0) | (74.6)

200 Halma plc | Annual Report and Accounts 2025
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, £132.6m (2024: £113.8m) 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 £8.5m (2024: £7.2m) 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 2025, deferred tax assets of £2.3m and £3.7m (2024: £2.3m and £4.8m) 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
| 2025 | 2024
| £m | £m
Ordinary shares of 10p each | 38.0 | 38.0

The number of ordinary shares in issue at 31 March 2025 was 379,645,332 (2024: 379,645,332), including shares held by the Employee
Benefit Trust of 1,943,659 (2024: 2,457,205); this represents 0.5% of called up share capital (2024: 0.6%). The number of own shares
purchased during the year by the EBT was 232,000 (2024: 890,000) with a nominal value of £0.0m (2024: £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 2025 |  |  | Year ended 31 March 2024
| Equity‑settled | Cash‑settled | Total | Equity‑settled | Cash‑settled | Total
| £m | £m | £m | £m | £m | £m
Share incentive plan | 1.0 | – | 1.0 | 1.2 | – | 1.2
Executive share plan | 24.7 | 0.6 | 25.3 | 21.7 | – | 21.7
| 25.7 | 0.6 | 26.3 | 22.9 | – | 22.9

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:

| 2025 | 2024
| Number | Number
| of shares | of shares
| awarded | awarded
Outstanding at beginning of year | 3,109,381 | 2,662,100
Granted during the year | 1,183,577 | 1,302,974
Vested during the year (pro–rated for ‘good leavers’) | (883,967) | (569,806)
Lapsed during the year | (201,938) | (285,887)
Outstanding at end of year | 3,207,053 | 3,109,381
Exercisable at end of year | – | –

Included in Retained earnings are accumulated credits of £43.1m (2024: £35.0m) representing the provision for the value of unvested
awards under the Group’s equity settled share plans. The performance shares outstanding at 31 March 2025 had a weighted average
remaining contractual life of 14 months (2024: 15 months). The weighted average share price at the date of exercise of vested shares
during the year was 2,687p (2024: 2,254p).
Halma plc | Annual Report and Accounts 2025 201
Governance Report Other InformationStrategic Report Financial Statements
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:

| 2025 | 2024 | 2023
Expected life (years) | 2 or 3 | 2 or 3 | 2 or 3
Share price on date of grant (p) | 2,356.0 | 2,240.0 | 2,060.0
Option price (p) | Nil | Nil | Nil
Fair value per option (%) | 100% | 100% | 100%
Fair value per option (p) | 2,356.0 | 2,240.0 | 2,060.0

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 settle 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 £3.5m was withheld and paid to the taxation authority in relation to the deferred shares that vested during the year
(2024: £5.4m). For the UK population, for the year ended 31 March 2025, the Group settled the deferred share award on a gross basis with
all shares vesting into the participants name at the point of vest. Shares with a fair value equal to the monetary value of the employee’s
tax obligation were immediately sold following vesting and paid to the taxation authority.
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 2025, the Group made seven acquisitions namely:
– Jam Topco Limited (MK Test);
– G.F.E. – Global Fire Equipment – Montagem de Equipamento Electrónico S.A. (GFE);
– Remlive Limited (Remlive);
– Advantronic Systems, S.L. (Advantronic);
– Hathorn Corporation Inc. (Hathorn);
– Safe‑com Wireless LLC (Safe‑com); and
– Lamidey Noury Médical S.A. (Lamidey).
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) Jam Topco Limited (MK Test);
c) G.F.E. – Global Fire Equipment – Montagem de Equipamento Electrónico S.A. (GFE);
d) Hathorn Corporation Inc. (Hathorn);
e) Safe‑com Wireless LLC (Safe‑com);
f) Lamidey Noury Médical S.A. (Lamidey);
g) other acquisitions; and
h) 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
£31.2m of revenue and £6.3m of profit after tax for year ended 31 March 2025.
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 £17.2m and £3.4m higher respectively.
As at the date of approval of the financial statements the accounting for MK Test 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.
202 Halma plc | Annual Report and Accounts 2025
25 Acquisitions continued
a) Total of acquisitions

| Total
| £m
Non‑current assets |
Intangible assets | 75.2
Property, plant and equipment | 11.0
Deferred tax | 0.1
Current assets |
Inventories | 14.0
Trade and other receivables | 13.0
Corporation tax asset | 0.3
Cash and cash equivalents | 10.5
Total assets | 124.1
Current liabilities |
Payables | (12.5)
Borrowings | (46.7)
Lease liabilities | (0.5)
Provisions | (0.2)
Corporation tax liabilities | (0.4)
Non‑current liabilities |
Payables | (0.2)
Lease liabilities | (2.7)
Provisions | (0.1)
Deferred tax liabilities | (18.6)
Total liabilities | (81.9)
Net assets of businesses acquired | 42.2
Initial cash consideration paid | 115.5
Other adjustments to consideration | 1.0
Other amounts to be paid | 0.7
Contingent purchase consideration including retentions estimated to be paid | 3.3
Total consideration | 120.5
Total goodwill | 78.3

Total goodwill of £78.3m comprises £72.7m relating to current year acquisitions and £5.6m relating to adjustments to prior year
acquisitions within 12 months of the acquisition date, including Rovers Medical Devices B.V. and the Tedan Group.
Analysis of cash outflow in the Consolidated Cash Flow Statement

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £m | £m
Initial cash consideration paid | 115.5 | 247.7
Cash acquired on acquisitions | (10.5) | (8.3)
Initial cash consideration adjustments paid/(received) on current year acquisitions | 1.0 | (2.0)
Contingent consideration paid | 10.3 | 2.9
Net cash outflow relating to acquisitions | 116.3 | 240.3
Included in cash flows from operating activities | 0.1 | 1.5
Included in cash flows from investing activities | 116.2 | 238.8

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.
Halma plc | Annual Report and Accounts 2025 203
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
25 Acquisitions continued
b) Jam Topco Limited (MK Test)

| £m
Non‑current assets |
Intangible assets | 26.1
Property, plant and equipment | 0.8
Current assets |
Inventories | 1.8
Trade and other receivables | 5.1
Corporation tax asset | 0.3
Cash and cash equivalents | 1.7
Total assets | 35.8
Current liabilities |
Payables | (5.2)
Borrowings | (38.0)
Non‑current liabilities |
Lease liabilities | (0.5)
Deferred tax liabilities | (6.5)
Total liabilities | (50.2)
Net assets of business acquired | (14.4)
Initial cash consideration paid | 6.3
Other adjustments to consideration | 0.3
Other amounts to be paid | 0.3
Total consideration | 6.9
Total goodwill | 21.3

On 30 April 2024, the Group acquired the entire share capital of Jam Topco Limited and its subsidiaries Jam Bidco Limited, MK Test Group
Limited, MK Test Systems Ltd, MK Test Holdings Limited and MK Test Systems America Inc.
The group (‘MK Test’) was acquired for a total consideration of £6.9m. Initial consideration comprised the cash and debt free purchase
price of £42.6m, plus cash acquired of £1.7m less debt acquired of £38.0m. Additional amounts determined in respect of working capital
adjustments amounted to £0.3m and amounts to be paid to the sellers of £0.3m. The debt acquired of £38.0m was settled immediately
post‑acquisition. There is no contingent consideration payable.
Founded in 1990 and headquartered in Wellington, Somerset, UK, 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 continues to 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 £19.2m; trade name £2.2m and technology
related intangibles £4.7m.
The residual goodwill of £21.3m 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.
MK Test contributed £11.6m of revenue and £2.9m of profit after tax for the 11‑month period ended 31 March 2025. 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
£0.9m higher and £0.2m lower respectively.
Acquisition costs totalling £0.9m were recorded in the Consolidated Income Statement.
The goodwill arising on this acquisition is not expected to be deductible for tax purposes.
204 Halma plc | Annual Report and Accounts 2025
25 Acquisitions continued
c) G.F.E. – Global Fire Equipment – Montagem de Equipamento Electrónico S.A. (GFE)

| £m
Non‑current assets |
Intangible assets | 13.8
Property, plant and equipment | 4.3
Current assets |
Inventories | 6.5
Trade and other receivables | 2.9
Cash and cash equivalents | 5.5
Total assets | 33.0
Current liabilities |
Payables | (2.8)
Borrowings | (5.2)
Lease liabilities | (0.1)
Provisions | (0.1)
Non‑current liabilities |
Deferred tax liabilities | (2.7)
Total liabilities | (10.9)
Net assets of business acquired | 22.1
Initial cash consideration paid | 35.2
Other adjustments to consideration | (0.6)
Other amounts paid | 0.4
Contingent purchase consideration including retentions estimated to be paid | 0.5
Total consideration | 35.5
Total goodwill | 13.4

On 26 June 2024, the Group acquired the entire share capital of GFE and its subsidiaries GFE TEC, Createch S.A. and Nibble Engenharia Lda.
The group (‘GFE’) was acquired for a total estimated consideration of €42.0m (£35.5m). The initial consideration comprised the cash
and debt free purchase price of €41.3m (£34.9m), plus cash acquired of €6.5m (£5.5m) less debt acquired of €6.1m (£5.2m). Other
adjustments relating to working capital amounted to €0.7m (£0.6m). The debt acquired of £5.2m was settled immediately post‑
acquisition. Retention amounts due on acquisition amounted to €1.1m (£0.9m). Of this balance, £0.4m was paid by period end and the
remaining balance is recorded as contingent purchase consideration including retentions estimated to be paid.
Based in Faro, Portugal, GFE designs and manufactures high‑quality fire detection and alarm systems. GFE was bought as a bolt‑on
for the Group’s Ampac businesses and so joins the Safety Sector.
On acquisition, acquired intangibles were recognised relating to customer related intangibles of £8.4m, trade name of £2.0m and
technology related intangibles of £3.4m.
The residual goodwill of £13.4m 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.
GFE contributed £9.4m of revenue and £1.7m of profit after tax for the nine month period ended 31 March 2025. If this acquisition
had been held since the start of the financial period, it is estimated that the Group’s reported revenue would have been £3.0m higher
and profit after tax would have been £0.4m higher.
Acquisition costs totalling £0.8m were recognised 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 2025 205
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
25 Acquisitions continued
d) Hathorn Corporation Inc. (Hathorn)

| £m
Non‑current assets |
Intangible assets | 14.3
Property, plant and equipment | 1.2
Current assets |
Inventories | 0.5
Trade and other receivables | 0.7
Cash and cash equivalents | 0.8
Total assets | 17.5
Current liabilities |
Payables | (0.7)
Borrowings | (3.4)
Lease liabilities | (0.2)
Non‑current liabilities |
Lease liabilities | (0.6)
Provisions | (0.1)
Deferred tax liabilities | (3.8)
Total liabilities | (8.8)
Net assets of business acquired | 8.7
Initial cash consideration paid | 21.8
Other adjustments to consideration | (0.1)
Total consideration | 21.7
Total goodwill | 13.0

On 1 October 2024, the Group acquired the entire share capital of Hathorn Corporation Inc. and its subsidiaries Reliable Drain Cameras
and Repair Inc.
The group (‘Hathorn’) was acquired for a total estimated consideration of CA$39.0m (£21.7m). The initial consideration comprised the
cash and debt free purchase price of CA$43.6m (£24.4m) plus cash of CA$1.4m (£0.8m) less debt of CA$6.0m (£3.4m). Other adjustments
relating to working capital amounted to CA$0.1m (£0.1m). The debt acquired of CA$6.0m (£3.4m) was settled immediately
post‑acquisition. There is no contingent consideration payable.
Based in Ontario, Canada, Hathorn specialise in the design and manufacture of pipeline inspection products for the wastewater market.
Hathorn was bought as a bolt‑on for the Minicam Group and so joins the Environmental & Analysis Sector.
On acquisition, acquired intangibles were recognised relating to customer relationships of £8.1m, trade name of £2.5m, and technology
related intangibles of £3.7m.
The residual goodwill of £13.0m 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.
Hathorn contributed £2.4m of revenue and £0.2m of loss after tax for the six months ended 31 March 2025, including a provision for
restructuring the business of £1.1m. 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 £2.6m higher and £0.7m 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.
206 Halma plc | Annual Report and Accounts 2025
25 Acquisitions continued
e) Safe‑com Wireless LLC (Safe‑com)

| £m
Non‑current assets |
Intangible assets | 3.2
Current assets |
Inventories | 0.2
Trade and other receivables | 0.4
Total assets | 3.8
Current liabilities |
Payables | (0.3)
Provisions | (0.1)
Non‑current liabilities |
Deferred tax liabilities | (0.8)
Total liabilities | (1.2)
Net assets of business acquired | 2.6
Initial cash consideration paid | 5.4
Contingent purchase consideration including retentions estimated to be paid | 2.4
Total consideration | 7.8
Total goodwill | 5.2

On 18 November 2024, the Group acquired the entire share capital of Safe‑com Wireless LLC (‘Safe‑com’).
The company was acquired for a total estimated consideration of US$9.9m (£7.8m). The initial consideration comprised the cash and debt
free purchase price of US$6.8m (£5.4m). Maximum contingent consideration of US$3.2m (£2.5m) is payable dependent on profits
achieved in the year to March 2026, with the possibility of the seller choosing to defer and base the consideration on the 12 months ending
31 March 2027. The amount of deferred purchase consideration recognised is US$3.0m (£2.3m) and represents the fair value of the
estimated amounts payable recognised on acquisition and is due for settlement over the next two years. The remaining US$0.2m (£0.1m)
relates to retention amounts due.
Based in New Jersey, USA, Safe‑com designs and manufactures emergency responder enhancement systems. Safe‑com was bought
as a bolt‑on for the Group’s Avire business and so joins the Safety Sector.
On acquisition, acquired intangibles were recognised relating to customer related intangibles £1.1m; and technology related intangibles £2.1m.
The residual goodwill of £5.2m 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.
Safe‑com contributed £0.6m of revenue and £0.1m of profit after tax for the four month period to 31 March 2025. 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
£1.4m higher and £0.2m 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 2025 207
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
25 Acquisitions continued
f) Lamidey Noury Médical S.A. (Lamidey)

| £m
Non‑current assets |
Intangible assets | 24.7
Property, plant and equipment | 4.1
Current assets |
Inventories | 4.1
Trade and other receivables | 2.4
Cash and cash equivalents | 2.1
Total assets | 37.4
Current liabilities |
Payables | (2.8)
Corporation tax liabilities | (0.3)
Lease liabilities | (0.2)
Borrowings | (0.1)
Non‑current liabilities |
Payables | (0.2)
Lease liabilities | (1.5)
Deferred tax liabilities | (6.5)
Total liabilities | (11.6)
Net assets of business acquired | 25.8
Initial cash consideration paid | 41.8
Other adjustments to consideration | 1.0
Total consideration | 42.8
Total goodwill | 17.0

On 15 November 2024, the Group acquired the entire share capital of Lamidey Noury Médical S.A. and its subsidiaries Medical Micro
Mecanique, Chirurgle Innovation and Medical Vision.
The group (‘Lamidey’) was acquired for a total estimated consideration of €51.2m (£42.8m). The initial consideration comprised the cash
and debt free purchase price of €47.6m (£39.8m), plus cash acquired of €2.4m (£2.1m), less debt of €0.1m (£0.1m). Other adjustments
relating to working capital amounted to €1.1m (£1.0m). There is no contingent consideration payable.
Based in Paris, France, Lamidey is renowned for its excellence in designing and producing electrosurgical instruments. These instruments,
widely adopted by healthcare professionals worldwide, are used for cutting tissue and controlling bleeding during operations, thereby
improving patient outcomes and operational efficiencies. Lamidey has joined the Group’s Healthcare Sector, led by its current
management team.
On acquisition, acquired intangibles were recognised relating to customer related intangibles of £8.4m, trade name of £2.1m
and technology related intangibles of £14.2m.
The residual goodwill of £17.0m 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.
Lamidey contributed £4.5m of revenue and £1.3m of profit after tax for the four month period ended 31 March 2025. If this acquisition
had been held since the start of the financial year, it is estimated that the Group’s reported revenue would have been £8.1m higher
and profit after tax would have been £2.6m higher.
Acquisition costs totalling £0.5m were recognised in the Consolidated Income Statement.
The goodwill arising on this acquisition is not expected to be deductible for tax purposes.
208 Halma plc | Annual Report and Accounts 2025
25 Acquisitions continued
g) Other acquisitions

| £m
Non‑current assets |
Intangible assets | 2.0
Property, plant and equipment | 0.1
Current assets |
Inventories | 1.2
Trade and other receivables | 1.0
Cash and cash equivalents | 0.4
Total assets | 4.7
Current liabilities |
Payables | (0.9)
Corporation tax liabilities | (0.1)
Non‑current liabilities |
Lease liabilities | (0.1)
Deferred tax liabilities | (0.6)
Total liabilities | (1.7)
Net assets of business acquired | 3.0
Initial cash consideration paid | 5.0
Other adjustments to consideration | 0.4
Contingent purchase consideration including retentions estimated to be paid | 0.4
Total consideration | 5.8
Total goodwill | 2.8

On 10 July 2024, the Group acquired the entire share capital of Remlive Limited (‘Remlive’), a UK based company, which designs and
manufactures electrical safety warning indicators, for a total estimated consideration of £3.6m.
On 29 July 2024, the Group acquired the entire share capital of Advantronic Systems, S.L. (‘Advantronic’) for a total consideration of
€2.6m (£2.2m). Based in Madrid, Spain, Advantronic manufactures control panels, distributes fire alarm systems and has strong expertise
in wireless technology.
In respect of these acquisitions, the excess of fair value of the assets acquired is represented by customer related intangibles of £0.4m,
trade names of £0.4m and technology related intangibles of £1.2m, with residual goodwill arising of £2.8m.
These acquisitions contributed £2.7m of revenue and £0.5m of profit after tax for the year ended 31 March 2025. 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
£1.2m higher and £0.3m lower respectively.
Acquisition costs totalling £0.2m were recorded in the Consolidated Income Statement.
The goodwill arising on these acquisitions is not expected to be deductible for tax purposes.
Halma plc | Annual Report and Accounts 2025 209
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
25 Acquisitions continued
h) Adjustments arising on prior year acquisitions

| £m
Non‑current assets |
Intangible assets | (8.9)
Property, plant and equipment | 0.5
Deferred tax asset | 0.1
Current assets |
Inventories | (0.3)
Trade and other receivables | 0.5
Total assets | (8.1)
Current liabilities |
Payables | 0.2
Non‑current liabilities |
Deferred tax liabilities | 2.3
Total liabilities | 2.5
Net adjustment to assets of businesses acquired in prior year | (5.6)
Adjustment to goodwill | 5.6

In finalising the acquisition accounting for the prior year acquisition of the Tedan Group, an adjustment of £0.6m was made to increase
property, plant and equipment, an increase of £0.5m to receivables, a reduction of £0.2m to inventories and a reduction of £0.1m was
made to payables.
In finalising the acquisition accounting for the prior year acquisition of Rovers Medical Devices B.V., an adjustment was made to reduce
the valuation of acquired intangible assets by £8.9m. An adjustment to reduce property, plant and equipment of £0.1m, increase deferred
tax asset by £0.1m and reduce inventories by £0.1m. Other adjustments included a reduction to payables by £0.1m and a reduction of
£2.3m to deferred tax liability.
Overall these adjustments resulted in a corresponding increase in goodwill of £5.6m. The adjustments were not material and as such
the comparative balance sheet was not restated, instead, the adjustments have been made through the current year.
26 Notes to the Consolidated Cash Flow Statement

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £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 | 409.5 | 367.7
Non‑cash (loss)/gain on hedging instruments | (0.6) | 0.4
Depreciation and impairment of property, plant and equipment | 51.0 | 44.4
Amortisation and impairment of computer software | 1.3 | 1.8
Amortisation of capitalised development costs and other intangibles | 11.1 | 9.9
Impairment of capitalised development costs | 3.1 | 3.0
Amortisation of acquired intangible assets | 56.9 | 49.5
Share‑based payment expense in excess of amounts paid | 21.9 | 16.9
Defined benefit pension plans administration cost less contributions from sponsoring companies | 0.4 | (3.0)
Profit on sale of property, plant and equipment, capitalised development costs and computer software | (0.2) | (0.2)
Operating cash flows before movement in working capital | 554.4 | 490.4
Decrease in inventories | 12.3 | 19.6
Increase in receivables | (20.9) | (46.4)
Increase in payables and provisions | 44.7 | 13.8
Increase/(reduction) to estimate and exchange difference on contingent consideration payable |  |
less amounts paid in excess of payable estimated on acquisition | 5.2 | (5.2)
Cash generated from operations | 595.7 | 472.2
Taxation paid | (103.3) | (87.2)
Net cash inflow from operating activities | 492.4 | 385.0

210 Halma plc | Annual Report and Accounts 2025
26 Notes to the Consolidated Cash Flow Statement continued

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £m | £m
Analysis of cash and cash equivalents |  |
Cash and bank balances | 313.2 | 142.7
Overdrafts (included in current borrowings) | (0.5) | (0.3)
Cash and cash equivalents | 312.7 | 142.4

|  |  | Net | Net |  |  |
| 31 March |  | cash/(debt) | cash/(debt) | Additions and | Exchange | 31 March
| 2024 | Cash flow | acquired | disposed | reclassifications | adjustments | 2025
| £m | £m | £m | £m | £m | £m | £m
Analysis of net debt |  |  |  |  |  |  |
Cash and bank balances | 142.7 | 164.3 | 10.5 | (1.2) | – | (3.1) | 313.2
Overdrafts | (0.3) | (0.2) | – | – | – | – | (0.5)
Cash and cash equivalents | 142.4 | 164.1 | 10.5 | (1.2) | – | (3.1) | 312.7
Loan notes falling due within one year | – | (35.0) | (0.1) | – | – | – | (35.1)
Loan notes falling due after more than one year | (370.9) | (300.8) | – | – | – | 11.8 | (659.9)
Bank loans falling due within one year | – | 46.6 | (46.6) | – | – | – | –
Bank loans falling due after more than one year | (341.0) | 298.1 | – | – | – | (1.0) | (43.9)
Lease liabilities | (83.7) | 28.8 | (3.2) | 0.8 | (54.1) | 1.8 | (109.6)
Total net debt | (653.2) | 201.8 | (39.4) | (0.4) | (54.1) | 9.5 | (535.8)

The net increase in cash and cash equivalents of £173.4m comprised net cash inflow of £164.1m and net cash acquired and disposed
of £9.3m.
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.
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 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
Cash flows from financing activities | (8.9) | (28.8) | – | (37.7) | (33.0)
Acquisition/disposal of subsidiaries | 46.7 | 2.4 | – | 49.1 | 12.0
Exchange adjustments | (10.8) | (1.8) | – | (12.6) | (4.2)
Other changes** | – | 54.1 | 0.2 | 54.3 | 72.0
At 31 March 2025 | 738.9 | 109.6 | 0.5 | 849.0 | 343.3

* 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.
Halma plc | Annual Report and Accounts 2025 211
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
27 Financial instruments
Treasury 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 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.
The most significant financial risk faced by the Group is market risk – comprised of foreign currency risk and interest rate risk.
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.
The Group has no significant concentration of credit risk, with the exposure spread across a diverse customer portfolio. Liquidity risk
is mitigated by the headroom in borrowing facilities entered into by the Group and strong cash conversion.
The Board reviews and agrees policies for managing each of these risks and these policies are summarised below. There were no
significant changes to the Group’s policies during the year. Details of the material accounting policy information and methods adopted
(including the criteria for recognition, the basis of measurement and the basis 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 balances. 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.
Market risk
Market risk: the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.
Within market risk the Group is exposed to foreign currency risk and interest rate risk. The Group does not enter into speculative
derivatives, with hedging instruments only used to manage exposure to risks associated with interest rate and exchange rate fluctuations,
the impact of which could be material to the Group. Derivative products entered into by the Group are not complex and are generally
available within the derivatives market.
Foreign currency and interest rate exposures are measured using sensitivity analysis as described below.
Foreign currency risk
Foreign currency risk: the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign
exchange rates.
The Group is exposed to foreign currency exchange risk as a consequence of both trading with foreign companies and owning subsidiaries
located in foreign countries.
The Group enters into financial instruments to manage its exposure to foreign currency risk, including:
– foreign currency denominated loans to hedge the exchange rate risk arising on translation of the Group’s investment in foreign
operations which have the Euro, US Dollar, New Zealand Dollar and Swiss Franc as their functional currencies as described below
under translational exposures; and
– forward foreign exchange contracts to hedge the exchange rate risk arising on the export of goods to and from the USA,
Mainland Europe, APAC and the UK as described below under transactional exposures.
Translational exposures
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 has significant investments in overseas operations in the US and EU, with further investments in Australia, New Zealand,
Canada, 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, the Group mitigates this risk by matching the net assets of overseas operations with
borrowings denominated in their functional currencies.
Bank loans and loan notes with a carrying value set out in the table on page 214 as well as non‑GBP intercompany loans are used as
net investment hedges for foreign currency net assets with a carrying value of €450.0m (2024: €409.7m), US$210.0m (2024: US$203.5m),
CHF90.0m (2024: CHF90.0m) and NZ$13.3m (2024: NZ$12.1.m). 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 £11.3m (2024: gain of £13.2m).
212 Halma plc | Annual Report and Accounts 2025
27 Financial instruments continued
Transactional exposures
The Group also has transactional currency exposures. These arise on sales or purchases by operating companies in currencies other than
the companies’ 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.
Foreign currency movements impact the value of monetary assets and liabilities not denominated in a company’s functional currency,
such as cash, overdrafts, debtors and creditors. Foreign currency movements give rise to net currency gains and losses recognised in the
Consolidated Income Statement. 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.
Foreign currency sensitivity analysis
The US Dollar and the Euro are the Group’s main currency 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 and Euro relative to Sterling would have impacted the Group’s profit before tax for the year ended 31 March 2025 by £2.8m
(2024: £2.2m) and £0.7m (2024: £0.6m) respectively.
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
| 2025 | 2024 | 2025 | 2024
| £m | £m | £m | £m
US Dollar – Total | 1,325.1 | 1,323.3 | 441.7 | 389.3
US Dollar – Monetary assets/liabilities | 299.7 | 266.1 | 407.1 | 367.2
Euro – Total | 683.6 | 616.0 | 518.2 | 450.6
Euro – Monetary assets/liabilities | 103.3 | 89.1 | 515.5 | 449.9

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
| 2025 | 2024 | 2025 | 2024
| £m | £m | £m | £m
Profit | 25.4 | 19.7 | 6.1 | 5.2
Other equity | 80.3 | 84.9 | 15.0 | 15.0

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 profit 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.
Interest rate risk
Interest rate risk: the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates.
The Group is exposed to interest rate fluctuations on its borrowings and cash deposits. The Group uses a proportion of fixed rate debt
to manage its exposure to interest rate fluctuations.
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, May 2022 and April 2024. Surplus funds are placed on short‑term fixed rate deposit or in floating rate
deposit accounts.
Interest rate risk profile
The Group’s financial assets which are subject to interest rate fluctuations comprise interest‑bearing cash equivalents which totalled
£177.0m at 31 March 2025 (2024: £23.7m). These comprised Sterling denominated bank deposits of £152.1m (2024: £11.7m), Euro bank
deposits of £21.9m (2024: £7.0m) and US Dollar bank deposits of £3.0m (2024: £4.5m) (in the prior year there were Renminbi bank deposits
of £0.5m) which earn interest at local market rates. Cash balances of £136.2m (2024: £119.0m) earn interest at local market rates.
The financial liabilities which are subject to interest rate fluctuations comprise bank loans and overdrafts which totalled £44.4m
at 31 March 2025 (2024: £341.3m). 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 3.39%.
The Group’s weighted average interest cost on net debt for the year was 4.27% (2024: 4.47%). Excluding IFRS 16 lease liabilities,
the weighted average interest cost on net debt for the year was 4.16% (2024: 4.59%).
Halma plc | Annual Report and Accounts 2025 213
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
27 Financial instruments continued
Analysis of interest-bearing financial liabilities
The following table provides an analysis of interest‑bearing financial liabilities by currency.

| 31 March | 31 March
| 2025 | 2024
| £m | £m
Sterling denominated bank loans | – | –
US Dollar denominated bank loans | – | 83.9
Euro denominated bank loans | – | 213.2
Swiss Franc denominated bank loans | 43.9 | 43.9
Total bank loans | 43.9 | 341.0
Overdrafts (principally Sterling and US Dollar denominated) | 0.5 | 0.3
Sterling denominated loan notes | 120.0 | 120.0
US Dollar denominated loan notes | 162.9 | 79.2
Euro denominated loan notes | 377.0 | 136.6
Swiss Franc denominated loan notes | 35.1 | 35.1
Total overdrafts and loan notes | 695.5 | 371.2
Total interest‑bearing financial liabilities | 739.4 | 712.2

Interest rate risk sensitivity analysis
For the year ended 31 March 2025, it is estimated that a general increase of one percentage point in interest rates would have reduced
the Group’s profit before tax by £0.7m (2024: £3.0m).
Hedging
The Group’s policy is to hedge significant sales and purchases denominated in foreign currency using forward currency contracts.
In addition the Group entered into a pre‑issuance hedge contract to fix the interest rate on the Private Placement in April 2024.
Subsequently, it was decided to no longer hedge account with the full balance recognised in the Consolidated Statement of Income
in the year.
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 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024
| 2025 | 2024 | m | m | £m | £m | £m | £m
Foreign currency forward contracts |  |  |  |  |  |  |  |
not in a designated cash flow hedge |  |  |  |  |  |  |  |
US Dollars vs GBP | – | 1.27 | – | 0.5 | – | 0.4 | – | –
Euros vs GBP | 1.20 | 1.17 | 0.3 | 5.8 | 0.3 | 4.9 | – | –
Other currencies | – | – | – | – | 18.5 | 18.9 | (0.1) | (0.6)
Foreign currency forward contracts |  |  |  |  | 18.8 | 24.2 | (0.1) | (0.6)
in a designated cash flow hedge |  |  |  |  |  |  |  |
US Dollars vs GBP | 1.27 | 1.26 | 14.8 | 15.9 | 11.5 | 12.6 | 0.2 | 0.1
Euros vs GBP | 1.17 | 1.15 | 25.3 | 29.6 | 21.2 | 25.3 | 0.2 | 0.2
Other currencies | – | – | – | – | 15.9 | 9.8 | 0.2 | (0.2)
Total foreign currency forward contracts |  |  |  |  | 48.6 | 47.7 | 0.6 | 0.1
US Dollars vs GBP | 1.27 | 1.26 | 14.8 | 16.4 | 11.5 | 13.0 | 0.2 | 0.1
Euros vs GBP | 1.17 | 1.15 | 25.6 | 35.4 | 21.4 | 30.2 | 0.2 | 0.2
Other currencies | – | – | – | – | 34.5 | 28.7 | 0.1 | (0.8)
|  |  |  |  | 67.4 | 71.9 | 0.5 | (0.5)
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 |  |  |  |  | 67.4 | 267.2 | 0.5 | (1.9)
Amounts recognised in the Consolidated Income Statement |  |  |  |  |  |  | (0.1) | (0.6)
Amounts recognised in the Consolidated Statement of Comprehensive Income and Expenditure |  |  |  |  |  |  | 0.6 | (1.3)
|  |  |  |  |  |  | 0.5 | (1.9)

214 Halma plc | Annual Report and Accounts 2025
27 Financial instruments continued
The fair values of the forward contracts and interest rate swaps are disclosed as a £1.1m (2024: £0.7m) asset and £0.8m (2024: £2.6m)
liability in the Consolidated Balance Sheet. Of the £18.5m (2024: £18.9m) of open contracts for other currencies not in a designated cash
flow hedge £6.2m (2024: £2.1m) relates to a Czech Koruna and £4.8m (2024: £9.3m) relates to a Swiss Franc contracts for expected
repayment of intercompany loan balances.
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
| 2025 | 2024
| £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 | 1.1 | (0.8)
Amounts recognised in the Consolidated Statement of Comprehensive Income and Expenditure | 0.6 | (1.3)
Net movement in the Hedging reserve in the year in relation to the effective portion of changes |  |
in fair value of cash flow hedges | 1.7 | (2.1)

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 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.
Credit risk
Credit risk: the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.
The Group is exposed to credit risk by the possibility that a counterparty will default on its contractual obligations resulting in financial loss
to the Group. To mitigate this risk the Group has adopted a policy of 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 £782.2m (2024:
£590.3m) represents the Group’s maximum exposure to credit risk as no collateral or other credit enhancements are held. The ageing
of trade receivables is disclosed in note 16, with 2.3% of debtors over three months overdue (2024: 2.1%).
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
Liquidity risk: the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled
by delivering cash or another financial asset.
The Group is exposed to liquidity risk on its financial liabilities when they are required to be settled. This risk is mitigated by the Group’s
strong cash flow.
A significant amount of the Group’s cash balances are within cash pooling arrangements to enable efficient central management of
funds. Funds are placed on deposit with secure, highly rated banks with maximum counterparty limits. For short term working capital
purposes, some operating companies who are not in a cash pooling arrangement utilise local bank overdrafts. These practices allow
a balance to be maintained between continuity of funding, security and flexibility.
The financial covenants on the facilities at year‑end require leverage (net debt/adjusted EBITDA) of not more than 3.5 times and adjusted
interest cover of not less than 4 times. All covenants have been complied with.
Halma plc | Annual Report and Accounts 2025 215
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
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 £336m United States
Private Placement completed in April 2024, 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, following the exercise of the second one‑year extension during the year,
matures in May 2029.
A 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.
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 2025.
Other short‑term operational funding is provided by cash generated from operations, a £100m uncommitted money market line and by
local bank overdrafts. These 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 £23.1m (2024: £18.1m). Total net
overdrafts relating to cash pooling as at 31 March 2025 were £nil (2024: £nil). Total overdrafts for the Group as at 31 March 2025 were
£0.5m (2024: £0.3m).
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 |  | Effect of |
| One to | two and | more than | Gross | discounting/ |
| two years | five years | five years | maturities | financing rates | Total
| £m | £m | £m | £m | £m | £m
At 31 March 2025 |  |  |  |  |  |
Accruals | 3.0 | – | 1.2 | 4.2 | – | 4.2
Other payables | 0.8 | 0.3 | 0.3 | 1.4 | – | 1.4
Contingent purchase consideration | 3.9 | – | – | 3.9 | – | 3.9
Bank loans | – | 43.9 | – | 43.9 | – | 43.9
Loan notes | 69.5 | 253.8 | 467.2 | 790.5 | (130.6) | 659.9
Lease liabilities | 28.0 | 63.5 | 28.1 | 119.6 | (33.1) | 86.5
| 105.2 | 361.5 | 496.8 | 963.5 | (163.7) | 799.8

|  | Between | After |  | Effect of |
| One to | two and | more 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

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.
216 Halma plc | Annual Report and Accounts 2025
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.
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 November 2015, May
2022 and April 2024 is estimated to be £690.3m. 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.
As at 31 March 2025 the terms for deferred contingent consideration who’s calculation is dependent on possible future cash flows are
as follows:
– 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.
– Safe‑com – Based on EBIT for the 12 months ending 31 March 2026, with the possibility of the previous owner choosing to defer and base
the consideration on the 12 months ending 31 March 2027. The maximum earnout is $3m (£2.3m).
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 | After 10 pp shift
| expected | in weighting
| future | towards upside
| cash flow | expectation
| £m | £m
VIR | 0.2 | 0.2
Safe‑com | 2.2 | 2.3

Halma plc | Annual Report and Accounts 2025 217
Governance Report Other InformationStrategic Report Financial Statements
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 2024 | 73.1 | 6.3 | 79.4
Assets of businesses acquired | 3.3 | 0.1 | 3.4
Additions | 44.6 | 4.5 | 49.1
Transfer between category | – | – | –
Disposals and retirements (including disposal of business) | (1.5) | (0.2) | (1.7)
Depreciation charge for the year | (22.1) | (2.8) | (24.9)
Exchange adjustments | (0.7) | (0.2) | (0.9)
At 31 March 2025 | 96.7 | 7.7 | 104.4
At 31 March 2025 |  |  |
Cost | 195.9 | 12.4 | 208.3
Accumulated depreciation and accumulated impairment | (99.2) | (4.7) | (103.9)
Net carrying amount | 96.7 | 7.7 | 104.4

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
| 2025 | 2024
| £m | £m
At 1 April 2024 | 83.7 | 87.9
Additions and remeasurements | 49.5 | 15.2
Disposals | (0.8) | –
Accretion of interest | 4.6 | 3.2
Payments | (28.8) | (24.1)
Liabilities of business acquired (note 25) | 3.2 | 3.2
Exchange adjustments | (1.8) | (1.7)
At 31 March 2025 | 109.6 | 83.7
Current | 23.1 | 19.5
Non‑current | 86.5 | 64.2
At 31 March 2025 | 109.6 | 83.7

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
| 2025 | 2024
| £m | £m
Depreciation expense of right‑of‑use assets | 24.9 | 19.8
Interest expense on lease liabilities | 4.6 | 3.2
Expense relating to short‑term leases and leases of low‑value assets | 0.3 | 0.3
Total amount recognised in Consolidated Income Statement | 29.8 | 23.3

The Group had total cash outflows for leases in the year of £28.8m (2024: £24.1m).
218 Halma plc | Annual Report and Accounts 2025
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 2025, potential future cash outflows of £13.4m (undiscounted) (2024: £14.7m) 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
(2024: £0.0m). No other lease modifications occurred during the year.
The future cash outflows relating to leases that have not yet commenced are £3.1m (2024: £17.3m).
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 £21.1m (2024: £19.6m) recognised in employee costs (note 7), comprise £20.3m (2024: £19.0m) related to defined
contribution plans and £0.8m (2024: £0.6m) related to defined benefit plans, including administration expenses of £nil (2024: £nil).
Defined contribution plans
The amount charged to the Consolidated Income Statement in respect of defined contribution plans was £20.3m (2024: £19.0m) 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.
On 6 September 2024, the Group’s two main defined benefit plans, Halma Group Pension Plan and the Apollo Pension and Life Assurance
Plan, purchased buy‑in policies with Phoenix Life which required the sale and transfer of the majority of each schemes’ assets. The buy‑in
policies are assets of the pension plans with the fair value being the present value of the schemes defined benefit obligations, excluding the
allowances in respect of Guaranteed Minimum Pension (GMP) equalisation and any liabilities that may be recognised in the future related
to the 2024 Virgin Media pension ruling. Movements in the fair value of the buy‑in policies are recognised in the Consolidated Statement
of Comprehensive Income and Expenditure. The remaining asset surplus consists of the residual cash in the pension plans that was not
required to cover the pension buy‑in policies. The buy‑in transactions had no cash effect on the Group. On an IAS 19 basis, £30.0m of
actuarial losses have been recognised in the Consolidated Statement of Comprehensive Income and Expenditure; this includes the
revaluation of the insurance assets which had no impact on the income statement.
The most recent actuarial valuation of the Halma Group Pension Plan was carried out for the Trustees of the Plan as at 30 November 2023
by Elaine Wilson, Fellow of the Institute and Faculty of Actuaries, of Mercer Limited.
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
2024 by Elaine Wilson, Fellow of the Institute and Faculty of Actuaries, also of Mercer Limited.
For both plans the previous actuarial valuation used the Projected Unit method, an accrued benefits valuation method in which the plan
liabilities include an allowance for projected earnings, which reflected an expectation that the plan would continue to “run on” with the
Trustees using the plan investments to meet member benefits as they fell due. For the most recent actuarial valuation, the methodology
was updated to the Mercer Solvency method which estimates the cost of securing benefits with an insurer (the amount that would be
required to settle the plan liabilities).
The change in valuation method reflects the impact of the buy‑in which was completed before the valuations were finalised.
The valuation date (the date on which assets and liabilities are measured) for both plans precedes the completion of the buy‑in.
The latest triennial actuarial valuation estimate of solvency was £7.7m surplus as at 30 November 2023 for the Halma Group Pension Plan
and £3.6m surplus as at 1 April 2024 for the Apollo Pension and Life Assurance Plan.
The plans’ triennial actuarial valuation reviews, rather than the accounting basis, are used to evaluate the level of any required cash
payments into the plans. Based on the latest valuations no contributions were required for either plan.
Halma plc | Annual Report and Accounts 2025 219
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
29 Retirement benefits continued
Following the decision to enter into a buy‑in transaction, but before the actuarial valuation was completed, the trustees of the Halma
Group Pension Plan agreed a contribution of £0.5m which was paid in November 2024 with the Group agreeing to pay all other expenses
directly. This removed any requirement for contributions, that were suspended until April 2025, to resume. As the Apollo Pension and
Life Assurance Plan is in surplus, no contributions were required and expenses continue to be covered by the plan.
At 31 March 2025 the Halma Group Pension Plan had a £0.8m net retirement benefit obligation caused by the allowance in respect of
GMP equalisation in the defined benefit obligation not being covered by the buy‑in policy. The Apollo Pension and Life Assurance Plan
had a £4.0m surplus with cash in excess of the allowance in respect of GMP equalisation.
The Group and trustees of the Plans are monitoring the impact of the July 2024 Court of Appeal ruling that upheld the UK High Court
legal ruling in June 2023 between Virgin Media Limited and NTL Pension Trustees II Limited, which resulted in certain 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. Due to uncertainty around the impact of the judgement
no adjustments have been made to the Consolidated Financial Statements at 31 March 2025. On 5 June 2025 the Department for Work
and Pensions stated the UK Governments intention to introduce legislation to give affected pension schemes the ability to retrospectively
obtain written actuarial confirmation that historic benefit changes met the necessary standards.

| 31 March | 31 March | 31 March
| 2025 | 2024 | 2023
Key assumptions used (UK plans): |  |  |
Discount rate | 5.70% | 4.75% | 4.75%
Pension increases LPI 2.5% | 2.05% | 2.05% | 2.10%
Pension increases LPI 3.0% | 2.30% | 2.35% | 2.45%
Inflation – RPI | 3.05% | 3.15% | 3.30%
Inflation – CPI | 2.30% | 2.40% | 2.50%

Mortality assumptions
The base mortality tables utilised are consistent with those used in the last completed triennial valuations for the Halma Group Pension
Plan scheme, for the Apollo Pension and Life Assurance Plan scheme the mortality tables used are consistent with those used in the
previous triennial valuation due to the timing of the completion of the latest triennial valuation. For both plans the latest published CMI
mortality projection tables (CMI2023) have been used with a long‑term improvement rate of 1.25% pa and a 2023 W parameter of 20%.
The assumed life expectations on retirement at age 65 are:

| 31 March | 31 March | 31 March
| 2025 | 2024 | 2023
| Years | Years | Years
Retiring today: |  |  |
Males | 21.5 | 22.1 | 22.3
Females | 23.7 | 24.5 | 24.7
Retiring in 25 years: |  |  |
Males | 22.8 | 23.6 | 23.8
Females | 25.1 | 26.0 | 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 6.1%/increase by 5.6%
Rate of inflation | Increase/decrease by 0.5% | Increase by 2.8%/decrease by 3.1%
Life expectancy | Increase by one year | Increase by 2.9%

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 2025 |  |  | 31 March 2024
| UK defined | Other defined |  | UK defined | Other defined |
| benefit plans | benefit plans | Total | benefit plans | benefit plans | Total
| £m | £m | £m | £m | £m | £m
Current service cost | – | 0.8 | 0.8 | – | 0.6 | 0.6
Net interest credit on pension plan assets/liabilities | (1.5) | – | (1.5) | (1.9) | – | (1.9)
| (1.5) | 0.8 | (0.7) | (1.9) | 0.6 | (1.3)

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 £52.4m (2024: loss of £2.7m).
The cumulative amount of actuarial losses recognised in the Consolidated Statement of Comprehensive Income and Expenditure since
the date of transition to IFRS is £99.1m (2024: £69.1m).
220 Halma plc | Annual Report and Accounts 2025
29 Retirement benefits continued
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 2025 |  |  | 31 March 2024
| UK defined | Other defined |  | UK defined | Other defined |
| benefit plans | benefit plans | Total | benefit plans | benefit plans | Total
| £m | £m | £m | £m | £m | £m
Present value of defined benefit obligations | (199.9) | (14.6) | (214.5) | (233.9) | (13.7) | (247.6)
Fair value of plan assets | 203.1 | 13.4 | 216.5 | 265.9 | 12.6 | 278.5
Net retirement benefit asset/(obligation) | 3.2 | (1.2) | 2.0 | 32.0 | (1.1) | 30.9
Plans with net retirement benefit assets | 4.0 | – | 4.0 | 32.0 | – | 32.0
Plans with net retirement benefit obligations | (0.8) | (1.2) | (2.0) | – | (1.1) | (1.1)

Movements in the present value of the UK and Swiss defined benefit obligations were as follows:

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £m | £m
At beginning of year | (247.6) | (246.8)
Service cost | (0.8) | (0.6)
Interest cost | (11.1) | (11.3)
Remeasurement gains/(losses): |  |
Actuarial gains arising from changes in financial assumptions | 25.6 | 2.5
Actuarial gains arising from changes in demographic assumptions | 5.4 | 2.2
Actuarial losses arising from experience adjustments | 4.0 | (0.8)
Contributions from plan members | (0.4) | (0.4)
Benefits paid | 10.4 | 7.4
Exchange adjustments | – | 0.2
At end of year | (214.5) | (247.6)

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

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £m | £m
At beginning of year | 278.5 | 284.7
Administration cost | (1.0) | (0.6)
Interest income | 12.6 | 13.2
Actuarial losses excluding interest income | (65.0) | (15.9)
Contributions from the sponsoring companies | 1.4 | 4.4
Contributions from plan members | 0.4 | 0.4
Benefits paid | (10.4) | (7.4)
Exchange adjustments | – | (0.3)
At end of year | 216.5 | 278.5

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
| 2025 | 2024
| £m | £m
Defined benefit obligations | 35.0 | 3.9
Fair value of plan assets | (65.0) | (15.9)
Net actuarial losses | (30.0) | (12.0)

Halma plc | Annual Report and Accounts 2025 221
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
29 Retirement benefits continued
The analysis of the UK plan assets at the balance sheet date were as follows:
Fair value of UK plan assets

| 31 March | 31 March
| 2025 | 2024
| £m | £m
Equity instruments |  |
Quoted | – | 6.2
Debt instruments |  |
Quoted | – | 208.5
Unquoted | – | 24.8
Property/infrastructure |  |
Unquoted | – | 23.2
Cash and cash equivalent |  |
Unquoted | 5.0 | 3.2
Assets held by insurance company |  |
Unquoted | 198.1 | –
| 203.1 | 265.9

As at 31 March 2025 the assets of the plans are primarily held in buy‑in policies which are unquoted. Plan 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. In the prior year the assets of the plans were primarily held in pooled investment vehicles which were unquoted. The pooled
investment vehicles held both quoted and unquoted investments.
Equity instruments included UK and Overseas equity funds. Debt instruments included corporate, government and private debt funds.
Property/infrastructure included private infrastructure funds and managed property funds. Cash and cash equivalent includes cash
at bank and a liquidity fund. Assets held by insurance company is made up of the buy‑in policies.
Assets in the non‑UK plans are primarily insurance assets.
Based on the most recent actuarial valuations and agreements with the plan trustees, the estimated amount of contributions expected
to be paid during the year ended 31 March 2026 is nil to the UK plans and £0.7m to the Swiss plans.
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 18 and 22 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 2025 |  |  |  |  |
Halma | 9.5 | 9.4 | 32.3 | 58.1 | 109.3
Apollo | 1.5 | 1.9 | 5.6 | 13.6 | 22.6

222 Halma plc | Annual Report and Accounts 2025
30 Disposal of operations
On 31 May 2024, the Group disposed of Hydreka S.A.S. including its subsidiary, Enoveo S.A.S., to a third party for proceeds of €8.8m (£7.5m).
This transaction resulted in the recognition of a gain in the Consolidated Income Statement as follows:

| Total
| £m
Proceeds of disposal | 7.5
Less: net assets on disposal | (3.2)
Less: allocation of goodwill disposed | (2.0)
Less: costs of disposal | (0.4)
Add: translation reserve recycled to profit and loss | 1.1
Profit on disposal | 3.0

Cash received on disposal of operations of €7.0m (£5.9m) comprised proceeds of €8.8m (£7.5m), less amounts to be received of €0.3m
(£0.3m), net of cash disposed of €1.4m (£1.2m).
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. On 19 September 2024, the European Court of Justice annulled the EC’s original decision and found in favour of ITV
and HMRC that the UK CFC legislation did not contravene EU State Aid rules. This judgement is now final.
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 had appealed against the notice but, as there was 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. HMRC have applied the decision to the Group’s
appeal and have repaid the £14.7m to the Group during the year.
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
There were no known material non‑adjusting events which occurred between the end of the reporting period and prior to the
authorisation of these financial statements on 12 June 2025.
Halma plc | Annual Report and Accounts 2025 223
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Accounts continued
33 Related party transactions
Trading transactions

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £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 123 to 146.

| Year ended | Year ended
| 31 March | 31 March
| 2025 | 2024
| £m | £m
Wages and salaries | 13.7 | 12.5
Pension costs | – | –
Share‑based payment charge | 7.7 | 5.0
| 21.4 | 17.5

34 Commitments
Capital commitments
Capital expenditure relating to the purchase of equipment authorised and contracted at 31 March 2025 but not recognised in these
accounts amounts to £3.4m (2024: £2.8m).
224 Halma plc | Annual Report and Accounts 2025
Notes
31 March
2025
£m
31 March
2024
£m
Fixed assets
Intangible assets C3 0.1 0.1
Tangible assets C4 8.1 8.5
Investments C5 696.4 636.0
Retirement benefit asset C13 – 21.6
Deferred tax C10 2.6 –
Tax receivable – 14.7
707.2 680.9
Current assets
Debtors C6 1,302.9 1,203.7
Short‑term deposits 159.2 22.3
Cash at bank and in hand 29.0 6.3
1,491.1 1,232.3
Creditors: amounts falling due within one year
Borrowings C7 41.7 4.9
Tax payable 8.6 7.6
Creditors C8 178.6 159.2
228.9 171.7
Net current assets 1,262.2 1,060.6
Total assets less current liabilities 1,969.4 1,741.5
Creditors: amounts falling due after more than one year
Borrowings C7 704.2 712.8
Creditors C9 7.8 14.2
Retirement benefit obligation C13 0.8 –
Deferred tax C10 – 2.9
712.8 729.9
Net assets 1,256.6 1,011.6
Capital and reserves
Share capital C11 38.0 38.0
Share premium account 23.6 23.6
Own shares (46.9) (58.0)
Capital redemption reserve 0.2 0.2
Hedging reserve – (1.4)
Profit and loss account 1,241.7 1,009.2
Total equity 1,256.6 1,011.6
The Company reported a profit for the financial year ended 31 March 2025 of £334.1m (2024: £235.4m).
The financial statements of Halma plc, company number 00040932, were approved by the Board of Directors on 12 June 2025.
Marc Ronchetti Carole Cran
Director Director
Company Balance Sheet
Halma plc | Annual Report and Accounts 2025 225
Governance Report Other InformationStrategic Report Financial Statements
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 2024 38.0 23.6 (58.0) 0.2 (1.4) 1,009.2 1,011.6
Profit for the year – – – – – 334.1 334.1
Actuarial losses on defined benefit
pension plan – – – – – (23.3) (23.3)
Amounts reclassified to the
incomestatement – – – – 1.4 – 1.4
Tax relating to components of other
comprehensive income and expense – – – – – 5.8 5.8
Total other comprehensive expense
forthe year – – – – 1.4 (17.5) (16.1)
Dividends paid – – – – – (83.8) (83.8)
Share‑based payment charge – – – – – 11.9 11.9
Capital contribution to subsidiaries for
share‑based payment awards (note C5) – – – – – 9.4 9.4
Excess tax deductions related to
share‑based payments on vested awards – – – – – 0.9 0.9
Purchase of own shares – – (6.3) – – (1.6) (7.9)
Performance share plan awards vested – – 17.4 – – (20.9) (3.5)
At 31 March 2025 38.0 23.6 (46.9) 0.2 – 1,241.7 1,256.6
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 2023 38.0 23.6 (46.1) 0.2 – 851.7 867.4
Profit for the year – – – – – 235.4 235.4
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
Company Statement of Changes in Equity
226 Halma plc | Annual Report and Accounts 2025
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 Employee Benefit Trust (EBT) is consolidated on the basis that the company has control, therefore the assets and liabilities of the EBT
are included on the Company balance sheet and shares held by the EBT in the Company are presented as a deduction from equity.
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 2025
There were no new Standards or Interpretations applied for the first time, with effect from 1 January 2025.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of Company 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.
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
There are no critical accounting judgements used by management in preparing the Company’s financial statements.
Key sources of estimation uncertainty
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 220.
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.
Notes to the Company Accounts
Halma plc | Annual Report and Accounts 2025 227
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Company Accounts continued
C1 Accounting policies continued
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:
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.
228 Halma plc | Annual Report and Accounts 2025
C1 Accounting policies continued
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.
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 solvency method.
The buy‑in policies are recognised as assets of the pension plan with the fair value being the present value of scheme defined benefit
obligations. Movements in the fair value of the buy‑in policies are recognised in the Consolidated Statement of Comprehensive Income
and Expenditure.
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.
Halma plc | Annual Report and Accounts 2025 229
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Company Accounts continued
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 £334.1m
(2024: £235.4m).
Auditors’ remuneration for audit services to the Company was £0.7m (2024: £0.7m). Total employee costs (including Directors) were:
Year ended
31 March
2025
£m
Year ended
31 March
2024
£m
Wages and salaries 41.5 33.4
Social security costs 6.2 4.9
Pension costs 0.9 0.8
48.6 39.1
Included within wages and salaries are share‑based payment charges under IFRS 2 of £11.9m (2024: £8.3m).
Year ended
31 March
2025
Number
Year ended
31 March
2024
Number
Monthly average number of employees (UK) 122 113
Monthly average number of employees (Mainland Europe) 4 4
Monthly average number of employees (Other) 1 1
Monthly average number of employees 127 118
Details of Directors’ remuneration are set out on pages 123 to 146 within the Annual Remuneration Report and form part of these
financialstatements.
C3 Fixed assets – intangible assets
Computer
software
£m
Other
intangibles
£m
Total
£m
Cost
At 1 April 2024 2.2 0.1 2.3
At 31 March 2025 2.2 0.1 2.3
Accumulated amortisation
At 1 April 2024 2.2 – 2.2
Charge for year – – –
At 31 March 2025 2.2 – 2.2
Carrying amounts
At 31 March 2025 – 0.1 0.1
At 31 March 2024 – 0.1 0.1
230 Halma plc | Annual Report and Accounts 2025
C4 Fixed assets – tangible assets
Freehold
properties
£m
Plan,
equipment
and vehicles
£m
Right of use
assets
£m
Total
£m
Cost
At 1 April 2024 8.0 2.1 1.3 11.4
Additions at cost 0.1 0.1 0.2 0.4
At 31 March 2025 8.1 2.2 1.5 11.8
Accumulated depreciation
At 1 April 2024 1.4 1.4 0.1 2.9
Charge for year 0.1 0.2 0.5 0.8
At 31 March 2025 1.5 1.6 0.6 3.7
Carrying amounts
At 31 March 2025 6.6 0.6 0.9 8.1
At 31 March 2024 6.6 0.7 1.2 8.5
C5 Investments
31 March
2025
£m
31 March
2024
£m
At cost less amounts written off at beginning of year 636.0 576.8
Increase in investments 59.6 57.2
Contributions to subsidiary undertakings relating to share‑based payments 9.4 9.5
Impairment charge (6.8) (7.5)
Foreign exchange movement (1.8) –
At cost less amounts written off at end of year 696.4 636.0
The increase of £59.6m in the year comprises additions from the acquisitions of and additional investments into MK Test of £54.0m
andRemlive of £3.6m and additional investment into existing subsidiary Halma Euro Trading Limited of £2.0m.
During the year, the Company commenced a legal entity rationalisation project which included the liquidation of a number of dormant
entities. This resulted in the recognition of an impairment charge of £6.8m.
In the current year, capital contributions to subsidiary undertakings of £9.4m were recorded (2024: £9.5m). 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.
In the prior year, the increase of £57.2m comprised additions from the acquisition 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 was in respect of the Company’s investment in three subsidiary undertakings.
Halma plc | Annual Report and Accounts 2025 231
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Company Accounts continued
C5 Investments continued
Subsidiaries
Details of the Company’s subsidiaries at 31 March 2025 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 Ordinary 100
Adler Diamant BV Simon Homburgstraat 21, 5431 NN Cuijk 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
Advantronic Systems, S.L.U. número 9, B1, calle del Yunque, Tres Canto, Madrid Spain 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 Common Stock 100
Alpha Instrumatics Holding
CompanyLimited
Alpha House, 96 City Road, Bradford,
West Yorkshire BD88ES
United Kingdom Ordinary 100*
Alpha Moisture Systems Limited Alpha House, 96 City Road, Bradford,
West Yorkshire 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 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 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 E‑F Areas, Production Area of Building 1,
No.5 Xinghai Road, Beijing Economic Technological
Development Area, Beijing
China Ordinary 100
Apollo America, Inc. 25 Corporate Drive, Auburn Hills MI 48326 United States Common Stock 100
Apollo Fire Detectors Limited 36 Brookside Road, Havant, Hampshire, PO9 1JR United Kingdom Ordinary and Deferred 100*
Apollo GmbH Am Anger 31, D‑33332 Gütersloh 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 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 Common Stock 100
Argus Security S.r.l. Via Del Canneto, Muggia, 14 Cap, 34015 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 Ordinary 100*
Avire Australia Pty Limited Unit 39,110‑116 Bourke Road, Alexandria NSW 2015 Australia Ordinary 100
Avire Elevator Technology
Shanghai Ltd
Room 611, Building 1, No. 1999 Duhui Road,
MinhangDistrict, Shanghai
China Ordinary 100
Avire Global PTE Ltd 80 Raffles Place, #32‑01 UOB Plaza, 048624 Singapore Ordinary 100
Avire Limited Unit 2, The Switchback, Gardner Road, Maidenhead,
Berkshire, EN, SL6 7RJ
United Kingdom Ordinary 100
Avire s.r.o.
Okružní 2615, České Budějovice, 370 01
Czech Republic Ordinary 100
Avire Trading Limited Unit 2 The Switchback, Gardner Road, Maidenhead,
Berkshire, EN, SL6 7RJ
United Kingdom Ordinary 100*
Avo Photonics (Canada) Inc. 117, Leslie Street, Toronto, Ontario, M4M 3C6 Canada A & B shares 100
Avo Photonics, Inc. 510, Virginia Drive, Fort Washington,
Pennsylvania, PA19034
United States A & B Preferred stock
and common stock
100
232 Halma plc | Annual Report and Accounts 2025
Name Registered Address Country Class Group %
Axcess Surgical Innovations B.V. Kantstraat 19, 5076NP Haaren 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 Ordinary 100
B.E.A. Inc. 100 Enterprise Drive, RIDC Park West, Pittsburgh, PA 15275 United States Ordinary 100
B.E.A. Investments, Inc. 100 Enterprise Drive, RIDC Park West, Pittsburgh, PA 15275 United States Ordinary 100
Baoding Longer Precision
Pump Co., Ltd
3rd Floor, University Science Park Baoding National,
No.5699, North 2nd Ring Road, Baoding, Hebei, 071051
China Ordinary 100
BEA Electronics (Beijing) Co Ltd A‑B Area, No.1 Building, No.5 Xinghai Road,
BeijingEconomic Technological Development Area,
Beijing, 100176
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 Ordinary 100
Beijing Ker’Kang Instrument
LimitedCompany
Floor 3, No. 156, Jinghai 4th Road, BDA, Beijing, 101111 China Ordinary 100
Berson Milieutechniek BV PO Box 90, 5670 AB Nuenen Netherlands Ordinary 100
Bio‑Chem Fluidics, Inc. 85 Fulton Street, Boonton, New Jersey 07005 United States Ordinary 100
Bureau d’Electronique appliquée S.A. Allée des Noisetiers 5, Liege Science Park, B‑4031
LIEGE‑Angleur
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 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 Quotas 100
Castell Interlocks, Inc. 150, N Michigan Avenue, Chicago, Illinois, 60601 United States Ordinary 100
Castell Locks Limited (1) United Kingdom Ordinary 100*
Castell Safety International Limited 217 Kingsbury Road, London, NW9 9PQ United Kingdom Ordinary 100*
Castell Safety Technology Limited (1) United Kingdom Ordinary 100*
CEF Safety Systems BV Jan van Galenstraat 64, 3115 JG Schiedam 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 Common Stock 100
Chirurgie Innovation 3, Rue des Petits Ruisseaux, Verrières‑le‑Buisson, 91370 France Ordinary 100
Cosasco Middle East – FZE – Dubai Dubai Silicon Oasis Office, Dubai United Arab Emirates Common Stock 100
Cosasco Middle East (FZE), Sharjah PO Box 8186, SAIF Zone, Sharjah United Arab Emirates Common Stock 100
Cranford Controls Limited Unit 2, Waterbrook Estate, Waterbrook Road, Alton,
Hampshire, GU34 2UD, England
United Kingdom Ordinary 100
Createch, S.A. Sítio da Barracha, Parque Industrial Municipal,
CaixaPostal, São Brás de Alporte, 610‑A, 8150‑017
Portugal Common Stock 100
Crowcon Detection
InstrumentsLimited
172 Brook Drive, Milton Park, Oxfordshire, OX14 4SD United Kingdom A & Ordinary 100*
Crowcon Gas Safety Trading LLC B‑04, Plot‑04‑013‑LIU Phase 5, DSO‑LIU, Dubai United Arab Emirates Ordinary 100
Dancutter A/S Livøvej 1A, 8800 Viborg Denmark Ordinary 100
Deep Trekker Inc. 155, Washburn Drive, Unit 2, Kitchener,
Ontario, N2R 1S1
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
Deep Trekker Inc. (US) Corporation Trust Center, 1209 Orange Street,
Wilmington, New Castle County, Delaware, 19801
United States Common Stock 100
Detection Instruments India
PrivateLimited
Plot Notel‑36, Electronics Zone, TTC Industrial Area,
MIDC,Mahape, Navi Mumbai 4000701
India Ordinary 21
Diba Industries Limited 2 College Park, Coldhams Lane, Cambridge, CB1 3HD United Kingdom Ordinary 100*
Diba Industries, Inc. 4, Precision Road, Danbury, CT, 06810 United States Common Stock 100
C5 Investments continued
Subsidiaries continued
Halma plc | Annual Report and Accounts 2025 233
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Company Accounts 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 9 Raffles Place, #15‑06 Republic Plaza, 048619 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 Ordinary 100*
F.I.R.E. Panel, LLC 8435 N. 90th St., Suite 2, Scottsdale AZ 85258 United States Common Stock 100
Fabrication de Produits
deSécuritéSaRL
21 Rue du Cuir, ZI Sidi Rezig, Mégrine, 2033 Tunisia Ordinary 100
FFE B.V J. Keplerweg 14, 2408AC Alphen aan den Rijn Netherlands Ordinary 100
FFE Holdings Limited (1) United Kingdom Deferred A & Ordinary 100*
FFE Limited 9 Hunting Gate, Hitchin, Herts, SG4 0TJ 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 Ordinary 100
Firetrace USA, LLC 8435, Suite 7, N. 90th St., Scottsdale, AZ, 85258 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 Ordinary &
Preferredshares
100*
Fortress Interlocks Pty Ltd Ross Wadeson Accountants, Unit 13,
20‑30 Malcolm Road, Braeside, VIC, 3195
Australia Ordinary 100
G.F.E. – Global Fire Equipment –
Montagem De Equipamento
Electrónico S.A.
Sítio da Barracha, Parque Industrial Municipal,
CaixaPostal, São Brás de Alportel, 610‑A, 8150‑017
Portugal Common Stock 100
GFE TEC – Desenvolvimento
DeEquipamentos Electrónicos,
UnipessoalLDA
Lote 6, Urbanização Maria Teresa de Jesus Lopes Viegas,
Brancanes, Olhão, 8700‑256
Portugal Quotas 100
Halma (China) Group 1st Floor, Building 18, 155 Yuanke Road,
Minhang District, Shanghai
China Ordinary 100
Halma Australasia Holdings Limited
†
(1) United Kingdom Ordinary 100
Halma Australasia Pty Limited 7, Ledgar Road, Balcatta, Western Australia, 6021 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 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 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 Ordinary 100
Halma International BV De Huufkes 23, 5674TL Nuenen 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*
Halma Overseas Funding Limited
†
(1) United Kingdom Ordinary 100
Halma PR Services Limited (1) United Kingdom Ordinary 100*
C5 Investments continued
Subsidiaries continued
234 Halma plc | Annual Report and Accounts 2025
Name Registered Address Country Class Group %
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 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 Ordinary 100*
Hathorn Corporation 181, Bay Street, Brookfield Place, Suite 4400, Toronto,
Ontario, M5J 2T3
Canada Common Stock 100
HWM‑Water Limited Ty Coch House, Llantarnam Park Way, Cwmbran,
Gwent, NP44 3AW
United Kingdom 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 Ordinary 100
International Light Technologies, Inc. 10 Technology Drive, Peabody, MA 01960 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 54 Easter Court, Suite J, Owings Mills, Maryland 21117 United States Ordinary 100
Jam Bidco Limited Ate House Westpark 26, Chelston, Wellington,
Somerset, TA21 9AD
United Kingdom Ordinary 100
Jam Topco Limited Ate House Westpark 26, Chelston, Wellington,
Somerset, TA21 9AD
United Kingdom A Ordinary, BOrdinary,
C Ordinary
100*
Keeler Europe Distribution S.L. Argenters, 8. Edifici 3, Parc Tecnològic del Vallès,
08290Cerdanyola
Spain Ordinary 100
Keeler Instruments, Inc. 3222, Phoenixville Pike, Malvern, PA, 19355 United States Ordinary 100
Keeler Limited Clewer Hill Road, Windsor, Berks, SL4 4AA United Kingdom Ordinary 100*
Kirk Key Interlock Company, LLC 9048, Meridian Circle NW, North Canton, OH, 44720 United States Ordinary 100
Labsphere, Inc. 231, Shaker Street, North Sutton, NH, 03260 United States Ordinary 100
Lamidey Noury Medical SA ZA les Godets, 3 Rue des Petits Ruisseaux,
Verrières‑le‑Buisson, 91370
France Ordinary 100
Langer Instruments Corporation 7461, N. Business Park Drive, Tucson, AZ, 85743 United States Ordinary 100
Lazer Safe Investments Pty Limited 27 Action Road, Malaga WA 6090 Australia Ordinary & Class B 100
Lazer Safe Japan KK 1‑20‑8, Shinooka, Komaki City, Aichi Japan Ordinary 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
M.K. Test Americas Inc. 22102, N Pepper Road, Ste 116, Lake Barrington, IL 60010 United States Common Stock 100
M.K. Test Systems Ltd. Ate House Westpark 26, Chelston, Wellington,
Somerset, TA21 9AD
United Kingdom Ordinary, Deferred 100*
Maxtec, LLC 2305, South 1070 West, Salt Lake City, UT, 84119 United States Common Stock 100
Meadowbridge Holdings Limited (1) United Kingdom Ordinary 100*
C5 Investments continued
Subsidiaries continued
Halma plc | Annual Report and Accounts 2025 235
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Company Accounts continued
Name Registered Address Country Class Group %
Medical Micro Mecanique ZA les Godets, 3 Rue des Petits Ruisseaux,
Verrières‑le‑Buisson, 91370
France Ordinary 100
Medical Vision 3, Rue des Petits Ruisseaux, Verrières‑le‑Buisson, 91370 France Ordinary 100
Medicel AG Dornierstrasse 11, CH – 9423 Altenrhein 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
MicroSurgical Technologies
GermanyGmbH
73, Neuenhaus Platz, Erkath, 40699 Germany Ordinary 100
MicroSurgical Technology, Inc. 8415, 154th Avenue NE, Redmond, WA, 98052 United States Common Stock 100
Mini‑Cam Enterprises Limited Unit 33, Ravenscraig Road, Little Hulton,
Manchester, M38 9PU
United Kingdom Ordinary 100*
Minicam Inc. 251, Little Falls Drive, Wilmington,
New Castle County, 19808
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*
MK Test Group Limited Ate House Westpark 26, Chelston, Wellington,
Somerset, TA21 9AD
United Kingdom Ordinary 100
MK Test Holdings Limited Ate House Westpark 26, Chelston, Wellington,
Somerset, TA21 9AD
United Kingdom Ordinary 100
Navtech Radar Limited Home Farm, Ardington, Wantage, Oxfordshire, OX12 8PD United Kingdom Ordinary 100*
NBP Properties LLC 13510, NW US Highway 441, Alachua, Florida, 32301 United States Ordinary 100
Nibble – Engenharia, UnipessoalLDA 265, 1.º D, Rua Júlio Dinis, Trofa, 4785 330 Portugal Ordinary 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 Common Stock 100
Nuvonic GmbH Hungenbach 1D, D‑51515 Kürten Germany Ordinary 100
Ocean Optics (Shanghai) Co., Ltd Block A, 3rd Floor, Building 16, No. 155 Yuanke Road,
Minhang District, Shanghai
China Ordinary 100
Ocean Optics Asia LLC 3500, Quadrangle Blvd, Orlando, FL 32817 United States Common Stock 100
Ocean Optics BV Geograaf 24, 6921EW Duiven 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 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 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 2100‑1000, rue De La Gauchetiere O, Montreal,
Quebec,H3B4W5
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 Ordinary 100
Perma Pure, LLC 1001, New Hampshire Ave., Lakewood, NJ, 08701 United States Ordinary 100
Pixelteq, Inc. 8060, Bryan Dairy Road, Largo, 33777 United States Ordinary 100
Power Equipment Limited (1) United Kingdom Preference & Ordinary 100*
R.M. Invest B.V. 10, Lekstraat, Oss, 5347KV Netherlands Ordinary A, Ordinary B
& Cumulative
Preference Shares
100
C5 Investments continued
Subsidiaries continued
236 Halma plc | Annual Report and Accounts 2025
Name Registered Address Country Class Group %
Radcom (Technologies) Limited Ty Coch House, Llantarnam Park Way, Cwmbran,
Gwent,NP44 3AW
United Kingdom Ordinary 100*
RadioMed Corporation 3150, Stage Post Drive, Ste 110, Bartlett, TN 38133 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
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 Ordinary 100
RCS International Limited (1) United Kingdom Ordinary 100
Remlive Limited 2 Inverclyde Drive, 2 Inverclyde Drive,
Wolverhampton,WV4 6FB
United Kingdom Ordinary A shares,
Ordinary B shares,
Ordinary C shares,
Ordinary D shares,
Ordinary E shares
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
Robutec AG Dornierstrasse 11, CH – 9423 Altenrhein Switzerland Ordinary 100
Rohrback Cosasco Systems LLC Gulf Consulting House Saudi Arabia Common Stock 100
Rohrback Cosasco Systems Pte Ltd 36, Robinson Road, #20‑01 City House, Singapore, 068877 Singapore Ordinary 100
Rohrback Cosasco Systems Pty Ltd Unit 5, 17 Caloundra Road, Clarkson, WA 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 Common Stock 100
Rovers Medical Devices B.V. Lekstraat 10, 5347KV Oss Netherlands Ordinary 100
Rovers Vastgoed B.V. Lekstraat 10, 5347KV Oss Netherlands Ordinary 100
Rudolf Riester GmbH Bruckstrasse 31, D‑72417 Jungingen Germany Ordinary 100
S.E.R.V. Trayvou Interverrouillage SA 1 Ter, Rue du Marais Bat B, 93106 Montreuil, Cedex France Ordinary 100
Safe‑Com Wireless LLC 21, Longview Drive, Holmdel, New Jersey United States Membership Interest 100
SCP IR Acquisition, LLC 5, Easter Court, Suite J, Owings Mills, MD 21117 United States Common Stock 100
Sensit Technologies EMEA S.r.l. 13, Via Alessandro Volta, Bolzano, (BZ), CAP 39100 Italy Ordinary 100
Sensit Technologies, LLC 851, Transport Dr., Valparaiso, IN, 46383 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 Common Stock 100
Sensorex s.r.o.
Okružní 2615, České Budějovice 3, 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 A,1F, FAMILY Science and Technology Innovation
Park, No. 155 Yuanke Road, Minhang District, Shanghai
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*
C5 Investments continued
Subsidiaries continued
Halma plc | Annual Report and Accounts 2025 237
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Company Accounts continued
Name Registered Address Country Class Group %
Sofis BV J Keplerweg 14, 2408 AC Alphen aan den Rijn Netherlands Ordinary 100
Sofis GmbH Hahnenkammstrasse 12, 63811 Stockstadt Germany Ordinary 100
Sofis Limited Unit 7B, West Station Business Park, Spital Road,
Maldon,CM9 6FF
United Kingdom Ordinary 100*
Sofis, Inc. 500, Spring Hill Drive, Suite 240, Spring, TX 77386 United States Ordinary 100
Sonar Research &
DevelopmentLimited
(1) United Kingdom Ordinary 100*
Static Systems Group Limited Heath Mill Road, Wombourne, Wolverhampton,WV5 8AN United Kingdom Ordinary 100
Static Systems Holdings Limited Heath Mill Road, Wombourne, Wolverhampton, WV5 8AN 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
105, HuanGuan South Road, Suite 15 2~3/F DaHe
Community, Guanhu Sub‑district, LongHua District
Shenzhen Guang Dong PRC, 518110
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 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 Ordinary 100*
TeDan Surgical Innovations B.V. Kantstraat 19, 5076NP Haaren Netherlands Ordinary 100
TeDan Surgical Innovations GmbH Steinbuckle 12, 73441 Bopfinger 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 Common Stock 100
Visual Performance Diagnostics, Inc. 11841 Smith Avenue, Santa Fe Springs, California 90670 United States Common Stock 100
Volk Optical Inc. 7893, Enterprise Drive, Mentor, OH, 44060 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. The Mezzo, 205 Balestier Road, Singapore, 329682 Singapore Ordinary 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 BD8 8ES
United Kingdom Ordinary 100
Wilkinson & Simpson Limited (1) United Kingdom Deferred & Ordinary 100*
ZED Ziegler Electronic Devices GmbH In den Folgen 7, 98693 Ilmenau Germany Ordinary 100
Zonegreen 2013 Limited Sir John Brown Building Davy Industrial Park,
Prince of Wales Road, Sheffield, South Yorkshire, S9 4EX
United Kingdom Ordinary 100*
Zonegreen Limited Sir John Brown Building Davy Industrial Park,
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.
†
This company has taken a statutory audit exemption under section 479A of the Companies Act 2006.
The Company has provided a parental guarantee of the company’s liabilities.
C5 Investments continued
Subsidiaries continued
238 Halma plc | Annual Report and Accounts 2025
C6 Debtors
31 March
2025
£m
31 March
2024
£m
Amounts falling due in more than one year:
Amounts due from Group companies – 3.5
Amounts falling due within one year:
Amounts due from Group companies 1,293.5 1,191.1
Other debtors 3.6 2.1
Prepayments 5.8 7.0
1,302.9 1,203.7
Amounts owed by Group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
C7 Borrowings
31 March
2025
£m
31 March
2024
£m
Falling due within one year:
Overdrafts 6.2 4.5
Unsecured loan notes 35.1 –
Lease liabilities 0.4 0.4
41.7 4.9
Falling due after more than one year:
Unsecured loan notes 659.8 370.9
Unsecured bank loans 43.9 341.0
Lease liabilities 0.5 0.9
704.2 712.8
Total borrowings 745.9 717.7
The Company has two sources of long‑term funding, which comprise:
– an unsecured five‑year £550m Revolving Credit Facility, which was refinanced in May 2022 and, following the exercise of the second
one‑year extension during the year, matures in May 2029. At 31 March 2025, £506.1m (2024: £209.0m) remained committed and
undrawn; and
– unsecured loan notes totalling £694.9m (2024: £370.9m), as follows:
– completed in November 2015 and drawn on 6 January 2016, of which £35m remains outstanding and matures in January 2026;
– completed in May 2022 and drawn on 12 July 2022 a United States Private Placement of £330m 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;
– completed and drawn in April 2024, a new Private Placement of £336m. 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 bank overdrafts, which are unsecured, at 31 March 2025 and 31 March 2024 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 £23.1m (2024: £13.2m).
Total net overdrafts relating to cash pooling as at 31 March 2025 were £nil (2024: £nil). Total overdrafts for the Group as at 31 March 2025
were £0.5m (2024: £0.3m).
C8 Creditors: amounts falling due within one year
31 March
2025
£m
31 March
2024
£m
Trade creditors 2.8 3.7
Amounts owing to Group companies 136.9 121.8
Loss on forward contracts – 1.4
Other creditors 0.8 2.9
Provision for contingent consideration 0.7 0.6
Accruals 37.4 28.8
178.6 159.2
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 2025 239
Governance Report Other InformationStrategic Report Financial Statements
Notes to the Company Accounts continued
C9 Creditors: amounts falling due after more than one year
31 March
2025
£m
31 March
2024
£m
Amounts owing to Group companies 6.2 12.5
Other creditors 1.6 1.7
7.8 14.2
These liabilities fall due as follows:
Within one to two years 1.6 1.7
After more than five years 6.2 12.5
Amounts owed to Group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
C10 Deferred tax asset/(liability)
Retirement
benefit
obligations
£m
Short–term
timing
differences
£m
Total
£m
At 1 April 2024 (5.4) 2.5 (2.9)
Charge to Profit and Loss account (0.2) (0.1) (0.3)
Credit to comprehensive income 5.8 – 5.8
At 31 March 2025 0.2 2.4 2.6
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)
C11 Share capital
Issued and fully paid
31 March
2025
£m
31 March
2024
£m
Ordinary shares of 10p each 38.0 38.0
The number of ordinary shares in issue at 31 March 2025 was 379,645,322 (2024: 379,645,332), including shares held by the Employee
Benefit Trust of 1,943,659 (2024: 2,457,205).
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 £43.1m (2024: £35.0m) 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).
On 6 September 2024 the Halma Group Pension Plan purchased a buy‑in policy with Phoenix Life which required the sale and transfer
ofthe majority of the schemes’ assets.
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 2025 was £0.5m (2024: nil).
Net interest income on pension plan liabilities/assets of £1.1m (2024: net interest income of £1.3m) 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
2025
£m
Year ended
31 March
2024
£m
Defined benefit obligations 28.4 4.0
Fair value of plan assets (51.7) (11.8)
Net actuarial losses (23.3) (7.8)
The actual return on plan assets was a loss of £42.1m (2024: loss of £1.6m).
240 Halma plc | Annual Report and Accounts 2025
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
2025
£m
31 March
2024
£m
Present value of defined benefit obligations (157.3) (185.4)
Fair value of plan assets 156.5 207.0
(Liability)/asset recognised in the Company Balance Sheet (0.8) 21.6
Movements in the present value of the defined benefit obligation were as follows:
Year ended
31 March
2025
£m
Year ended
31 March
2024
£m
At beginning of year (185.4) (188.5)
Interest cost (8.5) (8.8)
Remeasurement gains/(losses):
Actuarial gains arising from changes in financial assumptions 19.2 2.6
Actuarial gains arising from demographic assumptions 5.0 1.8
Actuarial gains/(losses) arising from experience adjustments 4.2 (0.4)
Benefits paid 8.2 7.9
At end of year (157.3) (185.4)
Movements in the fair value of the plan assets were as follows:
Year ended
31 March
2025
£m
Year ended
31 March
2024
£m
At beginning of year 207.0 217.2
Interest income 9.6 10.1
Administration expenses (0.7) (0.6)
Actuarial losses, excluding interest income (51.7) (11.8)
Contributions from the sponsoring companies 0.5 –
Benefits paid (8.2) (7.9)
At end of year 156.5 207.0
On 6 September 2024 the Halma Group Pension Plan purchased a buy‑in policy with Phoenix Life which required the sale and transfer
ofthe majority of the plans assets. Following the decision to enter into a buy‑in transaction, but before the actuarial valuation was
completed, the trustees of the Halma Group Pension Plan agreed a contribution of £0.5m which was paid in November 2024 with the
Group agreeing to pay all other expenses directly. This removed any requirement for contributions, that were suspended until April 2025,
toresume.
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 the valuation, completed during the financial year, no contributions were required.
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
There were no known material non‑adjusting events which occurred between the end of the reporting period and prior to the
authorisation of these financial statements on 12 June 2025.
Halma plc | Annual Report and Accounts 2025 241
Governance Report Other InformationStrategic Report Financial Statements
(Note 5)
2015/16
£m
2016/17
£m
2017/18
£m
2018/19
£m
Revenue (note 1) 807.8 961.7 1,076.2 1,210.9
Profit before interest, taxation, and adjustments (note 2) 173.1 203.3 223.4 255.7
Profit before taxation and adjustments (note 2) 166.0 194.0 213.7 245.7
Net tangible assets/capital employed 258.6 302.2 322.0 358.9
Borrowings (excluding overdrafts) 296.2 262.1 290.0 253.8
Acquisition spend (note 8) 202.6 10.2 117.6 68.1
Annual R&D spend/Revenue (note 9) 5.1% 5.3% 5.2% 5.2%
Net debt/EBITDA 1.27 0.86 0.87 0.63
Cash and cash equivalents (net of overdrafts) 49.5 65.6 69.7 72.1
Number of employees (note 1) 5,604 5,771 6,113 6,508
Basic earnings per share (note 1) 28.76p 34.25p 40.69p 44.78p
Adjusted earnings per share (note 2) 34.26p 40.21p 45.26p 52.74p
Year‑on‑year increase in adjusted earnings per share 9.9% 17.4% 12.6% 16.5%
Adjusted EBIT margin (notes 1 and 3) 21.4% 21.1% 20.8% 21.1%
Return on Capital Employed (restated – note 4) 72.4% 72.5% 71.6% 75.1%
Return on Total Invested Capital (restated – note 4) 15.6% 15.3% 15.2% 16.1%
Cash Conversion (note 6) 86% 86% 85% 88%
Year‑on‑year increase in dividends per ordinary share (paid and proposed) 7% 7% 7% 7%
Ordinary share price at financial year end 912p 1,024p 1,179p 1,672p
Market capitalisation at financial year end 3,462.4 3,887.6 4,476.0 6,347.7
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, profit or loss on disposal of operations and impairment of
associates. 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 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 EBIT margin, defined as Profit before interest andtaxation expressed as a percentage of revenue, is 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 equalising pension benefits for men and women in the
defined benefit pension plans (2018/19only).
4 See note 3 to the Report and Accounts for the definitions of ROCE and ROTIC. 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 92% 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, Profit before interest, taxation and
adjustments (PBIT), Profit before taxation and adjustments (PBT), Basic and Adjusted EPS CAGR is calculated using 2014/15 amounts as the base year as follows:
Revenue £726.1m, PBIT £158.5m, PBT £153.6m, Basic EPS 27.49p, Adjusted EPS 31.17p. The dividend CAGR is derived using the 2014/15 dividend of £43.0m and 2024/25
dividend of £87.3m.
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.
9 Following a review by management certain costs in relation to one company have been reclassified as non‑R&D related costs. This has resulted in a restatement
oftheResearch and development costs for 2021/22, 2022/23 and 2023/24.
Summary 2016 to 2025
242 Halma plc | Annual Report and Accounts 2025
2019/20
£m
2020/21
£m
2021/22
£m
2022/23
£m
2023/24
£m
2024/25
£m
(Note 7)
10 Year Average/
CAGR*/Total**
£m
1,338.4 1,318.2 1,525.3 1,852.8 2,034.1 2,248.1 12.0%*
279.1 288.3 324.6 378.2 424.0 486.2 11.9%*
267.0 278.3 316.2 361.3 396.4 459.4 11.6%*
416.9 389.5 454.2 595.2 639.6 624.9
419.2 322.3 359.4 677.3 711.9 703.8
238.0 48.8 164.4 391.5 263.4 156.8 1,661.4**
5.4% 5.3% 5.4% 5.4% 5.1% 4.8% 5.2%
1.13 0.76 0.74 1.38 1.35 0.97 1.00
105.4 131.1 156.7 168.5 142.4 313.2
6,992 7,120 7,522 8,141 8,615 9,038
48.66p 53.61p 64.54p 62.04p 71.23p 78.49p 11.1%*
57.39p 58.67p 65.48p 76.34p 82.40p 94.23 11.7%*
8.8% 2.2% 11.6% 16.6% 7.9% 14.4%
20.9% 21.9% 21.3% 20.4% 20.8% 21.6% 21.1%
71.4% 70.9% 76.4% 71.5% 68.2% 76.2% 72.6%
15.3% 14.4% 14.6% 14.8% 14.4% 15.0% 15.1%
98% 104% 84% 78% 103% 112% 92%
5% 7% 7% 7% 7% 7% 6.8%
1,921p 2,374p 2,510p 2,229p 2,368p 2,581p
7,293.0 9,012.8 9,529.1 8,462.3 8,990.0 9,798.6
Halma plc | Annual Report and Accounts 2025 243
Governance Report Other InformationStrategic Report Financial Statements
Shareholder information
Financial calendar
Annual General Meeting 24 July 2025
2024/25 Final dividend payable 15 August 2025
2025/26 Half year end 30 September 2025
2025/26 Half year results 20 November 2025
2025/26 Interim dividend payable February 2026
2025/26 Year end 31 March 2026
2025/26 Final results June 2026
Dividend history 2025 2024 2023 2022 2021
Interim 9.00p 8.41p 7.86p 7.35p 6.87p
Final 14.12p* 13.20p 12.34p 11.53p 10.78p
Total 23.12p 21.61p 20.20p 18.88p 17.65p
* Proposed.
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.
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 25 July 2025.
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.
244 Halma plc | Annual Report and Accounts 2025
Designed and produced by Brunswick Creative
www.brunswickgroup.com
Back cover:
Ashley Bridge
Warehouse Manager, MK Test Systems
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.
Halma plc
Misbourne Court
Rectory Way
Amersham
Bucks HP7 0DE
+44 (0)1494 721111
www.halma.com
Halma plc
|
Annual Report and Accounts 2025