Q3 Trading Statement

Diploma PLC

18 July 2024

 

10-11 CHARTERHOUSE SQUARE, LONDON EC1M 6EE TELEPHONE: [phone]

18 July 2024

STRONG PERFORMANCE CONTINUES

Diploma PLC ("Diploma" or the "Company"), the international value-add distribution group, today issues a trading update for the nine months ended 30 June 2024.

·      Strong Q3 performance in-line with our expectations: continuing into the final quarter.

·      Organic revenue growth in year to date of 6%: volume-led growth across the Group with Controls, Seals and Life Sciences performing as expected.

·      Reported revenue growth in year to date of 13%: with a 10% contribution from acquisitions partly offset by a (3)% impact from foreign exchange.

·      Smooth onboarding of acquisitions: Peerless and PAR Group acquired into Controls and Seals Sectors in Q3.

·      Strong operating margin: in line with our expectations.

Full year outlook positive and unchanged

·      Constant currency revenue growth of ca. 16%, comprising ca. 6% organic revenue, and growth from acquisitions of ca. 10%

·      Strong operating margin of ca. 20.5%

·      EPS growth of ca. 15%

·      Free cash flow conversion of ca. 90%.

Johnny Thomson, Chief Executive Officer, and Chris Davies, Chief Financial Officer, will host a conference call for analysts and investors this morning at 8:00am (UK time).

Conference call dial in details:

• Dial in: [phone]

• Password: Diploma Q3 results

Our next scheduled update is our full year results on 19 November 2024.

END

For further information please contact:
Diploma PLC -	[phone]
Johnny Thomson, Chief Executive Officer
Chris Davies, Chief Financial Officer
Holly Gillis, Head of Investor Relations
Teneo -	[phone]
Martin Robinson
Camilla Cunningham

NOTE TO EDITORS:

Diploma PLC is a decentralised, value-add distribution Group. Our businesses deliver practical and innovative solutions that keep key industries moving - from energy and infrastructure to healthcare.

We are a distribution group with a difference. Our businesses have the technical expertise, specialist knowledge, and long-term relationships required to deliver value-add products and services that make our customers' lives easier. These value-add solutions drive customer loyalty, market share growth and strong margins.

Our decentralised model means our specialist businesses are agile and empowered to deliver the right solutions for their customers, in their own way. As part of Diploma, our businesses can also leverage the additional resources, opportunities and expertise of a large, international and diversified Group to benefit their customers, colleagues, suppliers and communities.

We employ c.3,500 colleagues across our three Sectors of Controls, Seals and Life Sciences. Our principal operating businesses are located in the UK, Northern Europe, North America and Australia.

Over the last fifteen years, the Group has grown adjusted earnings per share (EPS) at an average of ca. 15% p.a. through a combination of organic growth and acquisitions. Diploma is a member of the FTSE 100.

Further information on Diploma PLC can be found at www.diplomaplc.com

Diploma hosted an Investor Seminar in June 2023. A recording is available on our website: https://www.diplomaplc.com/investors/results-reports-presentations/investor-seminar-2023/

The person responsible for releasing this Announcement is John Morrison, Group Company Secretary.

LEI: 2138008OGI7VYG8FGR19

 

END