Monday, 29 September 2014

Diploma trading statement

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 a pre-close trading update for their year-end today.  Revenues for the year are expected to be  ~6% ahead of last year and after adjusting for acquisitions and strong currency headwinds, underlying revenue growth for the year is expected to be 7-8%.
 
Operating margins have remained robust, despite the anticipated transactional currency effects on the Healthcare gross margins.  Management state that cash flow remains strong and year end net cash is expected to be  ~£20m up from £19.3m last year, allowing for a £16m spend on acquisitions.
 
All of this is in line with expectations and continues the Diploma organic and acquisition growth story, supported by strong cash generation.
 
 

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