Diploma PLC Trading Statement (6634C)
January 21 2015 - 1:00AM
UK Regulatory
TIDMDPLM
RNS Number : 6634C
Diploma PLC
21 January 2015
DIPLOMA PLC
12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX
TELEPHONE: +44 (0)20 7549 5700
FACSIMILE: +44 (0)20 7549 5715
FOR IMMEDIATE RELEASE
21 January 2015
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 2015, ahead of the Company's AGM to be held today at
12.00, midday.
Trading Summary
Group revenues in the first quarter ended 31 December 2014 were
14% ahead of the comparable period last year. On an underlying
basis, which is after adjusting for the impact of currencies and
acquisitions, revenues increased by 4% which is in line with Board
expectations that underlying growth will trend towards our target
"GDP plus" rates.
The businesses acquired during the past year contributed 12% to
revenues, although revenues reduced by 2% when the results of the
overseas businesses were translated into UK sterling. The benefit
from the strong appreciation in the US dollar was more than offset
by further depreciation in the Group's other trading currencies,
relative to the comparable period last year. Operating margins
remained in line with those achieved in the comparable period last
year, with the anticipated weaker margin in the Life Sciences
businesses (transactional currency effects) largely offset by
stronger margins earned in the Seals businesses.
In the Life Sciences sector, revenues were 14% ahead of the
comparable period last year (3% ahead on an underlying basis) and
included a strong contribution from the newly acquired TPD business
in Ireland. In the Seals sector, revenues increased by 25% (9%
ahead on an underlying basis), benefitting from the contributions
from businesses acquired last year and from strong growth in the US
Seals businesses. In the Controls sector, reported revenues
remained marginally ahead of last year (3% reduction on an
underlying basis). The Controls businesses experienced weaker
demand in European markets in the first quarter, though there has
been some improvement since early December 2014.
Financial Position
The Group has a robust balance sheet and has a proven track
record of strong cash generation. In the quarter ended 31 December
2014, trading cash flow remained healthy, with free cash flow of
ca. GBP5m in the quarter. On 6 October 2014 the Group completed the
acquisition of 80% of Technopath Distribution for cash
consideration of GBP11.1m, including debt acquired of GBP1.5m and
on 19 December 2014, the Group made an initial cash payment of
GBP0.6m to acquire a further 10% of the shares outstanding in
Kentek Oy. Net cash funds at 31 December 2014 were ca. GBP14m,
compared with GBP21.3m reported at 30 September 2014.
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 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. 1,300 employees and its principal
operating businesses are located in the UK, Germany, US, Canada and
Australia.
Over the last five years, the Group has grown adjusted earnings
per share at an average of 20% p.a. through a combination of
organic growth and acquisitions. Diploma is a member of the FTSE
250 with a market capitalisation of ca. GBP800m.
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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