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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