Diploma IMS

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 third quarter IMS today stating that overall trading has been consistent with expectations at the half year. 

 

Group revenues for the nine months were 6% ahead of last year and on an underlying basis, after adjusting for currency effects and acquisitions, increased by 8%.

 

By sectors underlying growth in sales were:

 

Life Sciences +8%

 

Seals +6%

 

Controls +9% 

 

Net cash at 30 June 2014 was  ~£10m up from £8m at the half year and after payment of the interim dividend of £6.1m and £2.8m on acquisitions.

 

Diploma are in a strong financial position with good growth, although like many other international companies, suffering from the strength of Sterling on reported overseas sales.  In addition to the net cash position Diploma have access to a £25m multi-currency revolving facility and an accordion option to increase it to £50m.  Accordion options allow for the increase in facilities on the same terms as existing debt.  Diploma have a good track record on creating value from acquisitions and this facility gives the company some substantial firepower in determining the size of potential targets.