Diploma PLC Trading Statement (7871Z)
15 January 2020 - 6:00PM
UK Regulatory
TIDMDPLM
RNS Number : 7871Z
Diploma PLC
15 January 2020
DIPLOMA PLC
12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX
TELEPHONE: +44 (0)20 7549 5700
FACSIMILE: +44 (0)20 7549 5715
FOR IMMEDIATE RELEASE
15 January 2020
DIPLOMA PLC
FIRST QUARTER TRADING UPDATE
POSITIVE TRADING IN LINE WITH EXPECTATIONS
Diploma PLC, the international group supplying specialised
products and services, is today issuing its first quarter trading
update in respect of the year ending 30 September 2020, ahead of
the Company's AGM to be held today at 12.00, midday.
The Group has made a positive start to the year with overall
trading in line with expectations. Reported Group revenues in the
first quarter ended 31 December 2019 increased by 9% over the
comparable period. At constant exchange rates, Group revenues
increased by 11%, with acquisitions completed last year
contributing 9% and underlying growth of 2%. The Group's operating
margin in the first quarter remained in line with expectations.
Life Sciences Sector revenues on a reported and underlying basis
were up 2% and 3% respectively, with revenues being held back by
the timing of product delivered to customers. We expect that these
revenues will be recovered in the second fiscal quarter. Seals
Sector reported revenues were up 18%, which included a strong
contribution from businesses acquired last year, in particular VSP
Technologies. Underlying revenues were marginally ahead of the
comparable period reflecting challenging industrial markets in both
North America and Europe. Controls Sector revenues on a reported
and underlying basis were up 3% and 4% respectively and included
another strong contribution from Clarendon Specialty Fasteners.
The Group invested a further ca. GBP14m in acquiring two
businesses since the previous year end comprising CR System
Components, a Fastener business, based in Germany and PumpNSeal, a
Seals business, based in Australia. The pipeline of acquisition
opportunities remains healthy and the Group's balance sheet
continues to benefit from strong cash generation.
Our expectations for the full year remain positive and
unchanged.
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.
2. Diploma PLC uses alternative performance measures as key
financial indicators to assess the underlying performance of the
Group. All references in this Statement to "underlying" revenues
refer to reported results on a constant currency basis and before
any contribution from acquired or disposed businesses.
3. A copy of this Statement, together with further information
about Diploma PLC, may be viewed on its website at
www.diplomaplc.com
Diploma PLC -
Johnny Thomson, Chief Executive
Officer +44 (0)20 7549 5700
Nigel Lingwood, Group Finance Director
Tulchan Communications - +44 (0)20 7353 4200
Martin Robinson
David Allchurch
Guy Bates
NOTE TO EDITORS:
Diploma PLC is an international group supplying specialised
products and services to a wide range of end segments in our three
Sectors of Life Sciences, Seals and Controls.
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. 2,100 employees and its principal
operating businesses are located in the UK, Northern Europe, North
America and Australia.
Over the last ten years, the Group has grown adjusted earnings
per share at an average of ca. 16% p.a. through a combination of
underlying growth and acquisitions. Diploma is a member of the FTSE
250 with a market capitalisation of ca. GBP2.2bn.
Further information on Diploma PLC can be found at
www.diplomaplc.com
LEI: 2138008OG17VYG8FGR19
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTGPUWUGUPUGAC
(END) Dow Jones Newswires
January 15, 2020 02:00 ET (07:00 GMT)
Diploma (LSE:DPLM)
Historical Stock Chart
From Apr 2024 to May 2024
Diploma (LSE:DPLM)
Historical Stock Chart
From May 2023 to May 2024