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 a trading update today ahead of its full-year close. Revenues for the year are expected to be approximately 10% ahead of those reported last year. After adjusting for currency effects and acquisitions, underlying revenues for the year are expected to have increased by about 4%. The underlying increase in fourth quarter revenues is expected to be around 6% which is at a similar level to the third quarter increase. Group adjusted operating margins are expected to be 19% compared to 20.3% last year. Cash flows are strong with the year end cash expected to be ~£20m up from £7.9m last year.
The key highlights are the continued improvement in underlying growth - 6% for the third and fourth quarters compared to 2% at the half year and the substantial generation of cash.
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