TIDMDPLM

RNS Number : 9336A

Diploma PLC

30 March 2017

DIPLOMA PLC

12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX

TELEPHONE: +44 (0)20 7549 5700

FACSIMILE: +44 (0)20 7549 5715

FOR IMMEDIATE RELEASE

30 March 2017

DIPLOMA PLC

TRADING UPDATE

Diploma PLC, the international group of businesses supplying specialised technical products and services, is today issuing a trading update for the six months ending 31 March 2017, ahead of going into its close period.

Trading Summary

The Group has continued to trade in line with expectations. Reported Group revenues in the first half of the year are expected to be ca. 20% ahead of the comparable period, boosted by the impact of the substantial depreciation in UK sterling. At constant exchange rates, Group revenues are expected to increase by ca. 6% with acquisitions completed during the last twelve months contributing ca. 1% net. The Group expects to report underlying organic growth of ca. 5%.

In the Life Sciences Sector, underlying revenues are expected to be slightly up on the comparable period. This reflects strong consumable and service revenues but weaker sales of capital equipment against a strong prior year comparative. In the Seals Sector, revenues are also expected to be slightly ahead of the comparable period with strengthening revenues in the Aftermarket business in North America being offset by slower Industrial markets and reduced demand in certain International end markets. In the Controls Sector, underlying revenues are expected to be significantly above the comparable period driven by a combination of new project activity, recovery in some end user markets and continuing focus on developing new sales opportunities.

The Group's operating margin remains in line with expectations and broadly in line with the comparable period last year.

Financial Position

The Group has a robust balance sheet and a proven track record of strong cash generation which the Group continues to reinvest in acquiring new businesses to accelerate growth. At 31 March 2017, the Group is expected to hold net cash funds in excess of GBP10m and retains access to a GBP50m revolving credit facility.

The Group's Half Year results will be announced on Monday, 15 May 2017.

1. This Trading Update, which is based upon unaudited management accounts, has been prepared solely to provide additional information to the shareholders of Diploma PLC .It should not be relied on by any other party, for other purposes. Certain statements made in this Statement 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.

2. A copy of this Statement may be viewed on the Company's website at www.diplomaplc.com.

 
 Diploma PLC - 
  Bruce Thompson, Chief Executive 
  Officer 
  Nigel Lingwood, Group Finance 
  Director                           +44 (0)20 7549 5700 
 
 Tulchan Communications - 
  David Allchurch 
  Martin Robinson                    +44 (0)20 7353 4200 
 

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. GBP1.2bn.

Further information on Diploma PLC is available at www.diplomaplc.com

LEI: 213800OG17VYG8FGR19

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTEKLFLDXFLBBF

(END) Dow Jones Newswires

March 30, 2017 02:00 ET (06:00 GMT)

Diploma (LSE:DPLM)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Diploma Charts.
Diploma (LSE:DPLM)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Diploma Charts.