Diploma PLC Trading Statement (0363N)
January 18 2023 - 1:00AM
UK Regulatory
TIDMDPLM
RNS Number : 0363N
Diploma PLC
18 January 2023
DIPLOMA PLC
10-11 CHARTERHOUSE SQUARE, LONDON EC1M 6EE
TELEPHONE: +44 (0)20 7549 5700
18 JANUARY 2023
DIPLOMA PLC
Q1 TRADING UPDATE: STRONG START TO FY 2023
Diploma plc, the international group distributing specialised
products and services, today issues a trading update for the three
months ended 31 December 2022 ahead of the Company's AGM today at
9:00am.
Year to date performance
Performance in the first quarter has been strong, in-line with
our full year expectations. We continue to focus on revenue
diversification activity to drive growth, build scale and increase
resilience. We drive this diversification by positioning behind
structurally growing end markets, further penetrating core
developed economies and extending product ranges to expand
addressable markets.
During the first three months of FY 2023:
-- Organic revenue growth 10%: broad-based momentum in Controls,
sustained strong growth at Seals and Life Sciences on track for
sustainable growth as surgical procedures continue to recover.
-- Two small bolt-on acquisitions completed at attractive
valuations; we remain disciplined in our approach to acquisitions
and the pipeline is encouraging.
-- Reported revenue growth 30%: 11% contribution from high
quality acquisitions and a 9% foreign exchange benefit.
-- Strong operating margin, in-line with expectations,
demonstrating the power of our resilient value-added service model
which drives customer loyalty and pricing power.
Full year outlook positive and unchanged
We remain mindful of the uncertain economic outlook. However,
our business model is resilient. This, together with the strong Q1
performance, underpins our continuing confidence in delivering our
full year guidance: mid-single digit organic revenue growth (likely
to be H1 weighted); acquisitions to add ca.6% to reported growth;
and, a strong, resilient operating margin of 18-19%.
The Group's excellent long-term track record of compounding
growth demonstrates the strength of the business model. We remain
focused on executing our strategy of building high quality,
scalable businesses for organic growth and we are confident in our
long-term prospects.
Our next scheduled update will be the publication of half year
results on 15 May.
Johnny Thomson, Chief Executive Officer, and Chris Davies, Chief
Financial Officer, will host a conference call for analysts and
investors this morning at 8:00am (UK time). Conference call dial in
details:
-- Dial in: UK-wide +44 (0) 33 0551 0200 / UK toll free: 0808 109 0700 (US +1 786 697 3501)
-- Password: Diploma
A recording of the call will be made available on the website
later in the day or can be requested by contacting
investors@diplomaplc.com
Enquiries:
Diploma PLC +44 (0)20 7549 5700
Johnny Thomson, Chief Executive Officer
Chris Davies, Chief Financial Officer
Kellie McAvoy, Head of Investor Relations
Tulchan Communications +44 (0)20 7353 4200
Martin Robinson
Olivia Peters
Further information on Diploma PLC can be found at
www.diplomaplc.com
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 organic performance of the
Group. All references in this Statement to "organic" revenues refer
to reported results on a constant currency basis, before acquired
or disposed businesses (ex-growth basis) and include growth
generated by acquisitions under our ownership.
3. A copy of this Statement, together with further information
about Diploma PLC, may be viewed on its website at
www.diplomaplc.com
LEI: 2138008OGI7VYG8FGR19
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END
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