Halma lifts revenue forecast on strong photonics demand

Halma PLC on Thursday raised its full-year revenue forecast, citing stronger-than-expected demand for its photonics products.

The British technology company now expects low double-digit percentage organic constant currency revenue growth for the financial year, an increase from its previous guidance of upper single-digit growth.

The upgrade was primarily driven by its photonics business, which is part of the Environmental & Analysis Sector, the company said.

Halma also noted that order intake in the first half of the financial year remains ahead of both revenue and the comparable period last year.

"We have made strong progress in the first half of this financial year, against a backdrop of varied market conditions and a challenging economic and geopolitical environment," the company said in its trading update.

Guidance for its adjusted profit margin was unchanged, and is expected to be modestly above the middle of its 19% to 23% target range.

The company warned that the appreciation of the British Pound is having a negative currency translation effect on its results.

During the period, Halma completed two acquisitions, including the 129 million British Pound purchase of underground drilling technology firm Brownline, and one disposal.

Halma will release its half-year results on November 20.