Halma PLC US Tax Reform Update (9348B)
January 16 2018 - 1:00AM
UK Regulatory
TIDMHLMA
RNS Number : 9348B
Halma PLC
16 January 2018
Halma plc
US Tax Reform Update
Halma expects the recently enacted US Tax Cuts and Jobs Act
("the Act") to positively impact its future US after tax adjusted
earnings, primarily due to the reduction in the US federal
corporate income tax rate from 35% to 21% applicable from 1 January
2018.
For the year to 31 March 2018 we currently anticipate that the
announced changes will have a small positive impact on the Group
effective tax rate on adjusted profits which we have previously
guided will be in line with the H1 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%.
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 GBP15m based on our net US deferred
tax liabilities at 1 April 2017.
The ultimate impact of the Act is subject to complex provisions
in the legislation with further guidance and clarifications
expected to be issued by the US authorities. We will continue our
review and give updated guidance on the impact of these provisions
together with our final results in June 2018.
Halma's next Trading update is expected to be on 22 March
2018.
For further information please contact:
Halma plc
Tel: +44 (0) 1494 721111
Kevin Thompson, Finance Director
MHP Communications
Tel: +44 (0) 20 3128 8100
Rachel Hirst/Andrew Jaques
This information is provided by RNS
The company news service from the London Stock Exchange
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