Wednesday 15 January 2014

Diploma IMS


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 first quarter IMS today.  Group revenues for the period ended 31 December 2013 were 4% ahead of last year, although on an underlying basis, after adjusting for the impact of currencies, revenues increased by 6%.  This continues the stronger underlying growth seen in the second half of last year of 6% commented on here.  Operating margins remained in line with those achieved in the first quarter last year. 

By division the Life Sciences sector saw revenues grow 2% (8% ahead on an underlying basis); in the Seals sector, revenues increased by 4% and Controls revenues grew 8% ahead of last year.

Free cash flow in the quarter was ~£5m benefitting from lower capital expenditure as the Group's "Investment for Growth" programme reduces in scale.  Net cash funds increased to ~£22.0m at 31 December 2013 from £19.3m at the end of last year.

This looks to be a good first quarter and continues the momentum seen in the second half of last year.

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