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Halma sees earnings boost from US tax cuts
Halma said it expected the recently enacted US tax cuts to positively impact its future US after tax adjusted earnings and provide a £15m non-cash credit the year to March 2018.
The technology company said it anticipated the changes to have a s"mall positive impact on the group effective tax rate on adjusted profits which we have previously guided will be in line with the first half effective tax rate of 22.3%".
"For the year to 31 March 2019 we currently anticipate (based on the existing mix of adjusted profits) that the changes will reduce the group effective tax rate on adjusted profits to approximately 20%," Halma said.
"We also expect that the changes will result in a one-off non-cash tax credit for the year to 31 March 2018 relating to the revaluation of US deferred tax assets and liabilities."
"This credit is expected to be approximately £15m based on our net US deferred tax liabilities at 1 April 2017."