Monday 18 November 2013

Diploma prelims

Diploma PLC

An international group of businesses supplying specialised technical products and services. They operate globally in three distinct sectors - Life Sciences; Seals and Controls. I have a holding in my growth portfolio (epic code: DPLM). 



Diploma issued their full year results today and came in much as expected, which included a strong second half.

Briefly - revenue increased by 10% to £285.5m and underlying revenue was up by 4% with a stronger second half growth of 6%.

By division sales and margins were:

Life Sciences - Sales £93.2m (LY £78.4m); operating margins 22.4% (LY 23.0%)

Seals - £106.1m (£99.9m); 18.4% (20.4%)

Controls - £86.2m (£81.9m); 16.1% (17.6%) 

Adjusted profit before tax increased 3% to £54.3m; adjusted EPS was up by 5% to 34.8p and the statutory EPS was 30.7p up 10%.  The Full year dividend was increased by 9% to 15.7p, covered 1.96x.

Free cash flow (FCF) was again strong at £36.3m, up from £32.7m last year and the Group ended the year with net cash of £19.3m up from £7.9m last year and £7.3m at the interim stage. 

The Board state that they are confident that they will make further progress in the current financial year.

Diploma have increased owners' earnings (NBV and dividends) by a CAGR of 17.6% pa over the past 5 years and FCF increased by a 5 year CAGR of 18.5% pa over the opening NBV.  This is a well managed business that should see benefits from an improvement in the North American economy (59.8% of sales).

No comments:

Post a Comment