“The Covid-19 pandemic is expected to have a net adverse impact on Halma’s markets and the FY2021 financial results, which are likely to have a significant H2 weighting even though the timing and profile of recovery remains uncertain at this stage,” Peel Hunt analyst Dominic Convey said in a note.
In a statement on Tuesday Halma told investors it expected financial results for the twelve months ended 31 March 2020, due for release in July, to confirm £265mln to £270mln of pre-tax profit.
That is what had previously been guided. The outlook for the present year, however, is negative.
It said that the covid-19 pandemic would impact its markets and its financial performance would have a significant second-half weighting.
Peel Hunt is currently forecasting a 6% decline in pre-tax profit in 2021, at £249.4mln.
Commenting on the current price of Halma’s shares, Convey said: “Although a hefty premium to the sector is justified by its historic performance and relative resilience, this now looks stretched.”
Published at Tue, 21 Apr 2020 11:10:00 +0000-Halma downgraded by Peel Hunt on coronavirus outlook