Halma has delivered positive FY24 results (modestly ahead of consensus), with record revenues (>£2bn) and profits (21st consecutive record year) and the 45th year of 5% or more divi growth. Cash conversion was strong and there should be modest upward pressure to FY25 consensus. Results summary Revenues grew by 10% y-o-y (+8% at OCC) to £2,034.1m (consensus £1,982m / INVe £1,964m), driven by all divisions, in particular Safety. The adjusted EBIT margin expanded 40bps to 20.8% with higher interest giving adjusted EBIT of £424.0m (consensus £416.3m / INVe £422.3m) – a 12% increase (+7% OCC). EPS grew 8% to 82.4p (consensus £80.1p / INVe 81.0p) and the dividend is increased 7% to 21.61p (proving a good platform for the 45th consecutive year of >5% divi growth in FY24). ROCE of 14.4% is 40bps lower y-o-y. Cash conversion of 103% is a highlight and the balance sheet remains strong with net debt/EBITDA of 1.35x. Outlook Order intake is ahead of revenue and up y-o-y. Management expects good organic revenue growth in FY25 (we suspect this means mid-single digit %) and an EBIT margin of c21% - this would imply low single-digit upward pressure to FY25 consensus. The M&A pipeline is also healthy, and the balance sheet has headroom to facilitate further deals. Halma investment case Halma has a proven business model that should continue to generate long-term revenue and profit growth. The critical nature of its product portfolio, geared towards non-discretionary and sustainability-related demand, should continue to underpin momentum. Halma also enhances its positive organic growth with M&A (£44m spent on one acquisition already in FY25, following £299m on 8 acquisitions in FY24), highlighting its ability to use cash generation to expand addressable markets. Halma deserves a valuation premium given its relentless delivery.