TIDMDPLM
RNS Number : 8601Z
Diploma PLC
17 January 2024
10-11 CHARTERHOUSE SQUARE, LONDON
EC1M 6EE
TELEPHONE: +44 (0)20 7549 5700
17 January 2024
STRONG START TO FY24
Diploma PLC ("Diploma" or the "Company"), the international
value-add distribution group, today issues a trading update for the
three months ended 31 December 2023, ahead of the Company's Annual
General Meeting today at 9:00am.
-- Strong Q1 performance in-line with our expectations:
maintaining the momentum from the prior year.
-- Organic revenue growth of 6%: broad-based, volume-led growth
across the Group. Strong growth continues in Controls and Life
Sciences; Seals performed robustly, delivering moderate organic
growth in the period.
-- Reported revenue growth of 10% : with an 8% contribution from
acquisitions partly offset by a 4% impact from foreign
exchange.
-- Three bolt-on acquisitions in Q1 : for total consideration of
GBP9.5m at average multiples of around 4x EBIT, driving strong
return on capital. We remain disciplined in our approach and the
pipeline remains healthy.
-- Strong operating margin : in line with our expectations.
Full year outlook positive and unchanged
Diploma has an excellent track record of sustainable quality
compounding: consistently delivering strong growth, margins and
returns on capital. Whilst we remain mindful of the uncertain
economic outlook, the Group's resilient business model, coupled
with the strong start to the year, mean that we remain confident in
our unchanged full year guidance:
-- Organic revenue growth of ca. 5%.
-- Acquisitions announced to date to add ca. 6% to reported revenue growth.
-- Strong operating margin in line with prior year at 19.7%.
-- Free cash flow conversion of ca. 90%.
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: +44 (0) 33 0551 0200 (UK toll-free: 0808 109
0700)
-- Password: Diploma Q1
Our next scheduled update is our half year results on 13 May
2024.
For further information please contact:
Diploma PLC - +44 (0)20 7549 5700
Johnny Thomson, Chief Executive Officer
Chris Davies, Chief Financial Officer
Holly Gillis, Head of Investor Relations
Teneo - +44 (0)20 7353 4200
Martin Robinson
Olivia Peters
NOTE TO EDITORS:
Diploma PLC is a decentralised, value-add distribution Group.
Our businesses deliver practical and innovative solutions that keep
key industries moving - from energy and infrastructure to
healthcare.
We are a distribution group with a difference. Our businesses
have the technical expertise, specialist knowledge, and long-term
relationships required to deliver value-add products and services
that make our customers' lives easier. These value-add solutions
drive customer loyalty, market share growth and strong margins.
Our decentralised model means our specialist businesses are
agile and empowered to deliver the right solutions for their
customers, in their own way. As part of Diploma, our businesses can
also leverage the additional resources, opportunities and expertise
of a large, international and diversified Group to benefit their
customers, colleagues, suppliers and communities.
We employ c.3,500 colleagues across our three Sectors of
Controls, Seals and Life Sciences. Our principal operating
businesses are located in the UK, Northern Europe, North America
and Australia.
Over the last fifteen years, the Group has grown adjusted
earnings per share (EPS) at an average of ca. 15% p.a. through a
combination of organic growth and acquisitions. Diploma is a member
of the FTSE 100.
Further information on Diploma PLC can be found at
www.diplomaplc.com
Diploma hosted an Investor Seminar in June 2023. A recording is
available on our website:
https://www.diplomaplc.com/investors/results-reports-presentations/investor-seminar-2023/
The person responsible for releasing this Announcement is John
Morrison, Group Company Secretary.
LEI: 2138008OGI7VYG8FGR19
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END
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