Diploma PLC Trading Update (9336A)
30 March 2017 - 5:00PM
UK Regulatory
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
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