Diploma PLC Trading Statement (4012U)
January 18 2017 - 2:00AM
UK Regulatory
TIDMDPLM
RNS Number : 4012U
Diploma PLC
18 January 2017
DIPLOMA PLC
12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX
TELEPHONE: +44 (0)20 7549 5700
FACSIMILE: +44 (0)20 7549 5715
FOR IMMEDIATE RELEASE
18 January 2017
DIPLOMA PLC
FIRST QUARTER TRADING UPDATE
Diploma PLC, the international group of businesses supplying
specialised technical products and services, is today issuing its
first quarter trading update in respect of the year ending 30
September 2017, ahead of the Company's AGM to be held today at
12.00, midday.
Trading Summary
The Group has made a robust start to the year with overall
trading in line with expectations. Group revenues in the first
quarter ended 31 December 2016 increased by 23% on a reported basis
over the comparable period last year. At constant exchange rates,
Group revenues increased by 6%, with acquisitions completed during
the last twelve months contributing 2% net and underlying organic
growth of 4%. The very substantial depreciation of UK sterling
against all the major global currencies contributed a 17% increase
to reported Group revenues.
In the Life Sciences Sector, revenues were up 11%, reflecting
the impact of currency movements on translation of the results of
the Healthcare businesses. On an underlying basis, revenues were
down 1% due to weaker sales of capital equipment against a strong
comparative last year. In the Seals Sector, revenues increased by
22%, up 1% on an underlying basis, again reflecting the impact of
currency movements on translation. In North America, the
Aftermarket businesses showed good growth and stronger activity,
which offset the impact of a weak manufacturing sector on the
Industrial OEM businesses; International revenues showed modest
growth. In the Controls Sector, reported revenues were up 39% with
Cablecraft, acquired in March 2016, making a significant
contribution. On an underlying basis, after adjusting for currency
and acquisitions, revenues increased by 13%, driven by strong
growth in the Clarendon specialty fastener business, but also
against the background of weak comparatives in other Controls
businesses.
The Group's operating margin remains in line with expectations
and slightly ahead of the comparable period last year.
Financial Position
The Group has a robust balance sheet and has a proven track
record of strong cash generation which the Group seeks to reinvest
in acquiring new businesses to accelerate growth. Net cash funds at
31 December 2016 were GBP15.1m, compared with GBP10.6m reported at
30 September 2016.
Notes:
1. This trading update is based upon unaudited management
accounts and has been prepared solely to provide additional
information on trading to the shareholders of Diploma PLC. It
should not be relied on by any other party for other purposes.
Certain statements made in this update are forward-looking
statements. Such statements have been made by the Directors in good
faith using information available up until the date that they
approved this Statement. Forward-looking statements should be
regarded with caution because of the inherent uncertainties in
economic trends and business risks.
+44 (0)20 7549
Diploma PLC - 5700
Bruce Thompson, Chief Executive
Officer
Nigel Lingwood, Group Finance
Director
+44 (0)20 7353
Tulchan Communications - 4200
David Allchurch
Martin Robinson
NOTE TO EDITORS:
Diploma PLC is an international group of businesses supplying
specialised technical products and services to the Life Sciences,
Seals and Controls industries.
Diploma's businesses are focussed on supplying essential
products and services which are funded by the customers' operating
rather than their capital budgets, providing recurring income and
stable revenue growth.
Our businesses then design their individual business models to
closely meet the requirements of their customers, offering a blend
of high quality customer service, deep technical support and value
adding activities. By supplying essential solutions, not just
products, we build strong long term relationships with our
customers and suppliers, which support attractive and sustainable
margins.
Finally we encourage an entrepreneurial culture in our
businesses through our decentralised management structure. We want
our managers to feel that they have the freedom to run their own
businesses, while being able to draw on the support and resources
of a larger group. These essential values ensure that decisions are
made close to the customer and that the businesses are agile and
responsive to changes in the market and the competitive
environment.
The Group employs ca. 1,600 employees and its principal
operating businesses are located in the UK, Northern Europe, North
America and Australia.
Over the last five years, the Group has grown adjusted earnings
per share at an average of ca. 8% p.a. through a combination of
organic growth and acquisitions. Diploma is a member of the FTSE
250 with a market capitalisation of ca. GBP1.1bn.
Further information on Diploma PLC, together with a copy of this
Announcement, is available at www.diplomaplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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