Trading Statement

RNS Number : 9186O

Diploma PLC

26 September 2013

 

DIPLOMA PLC

                                           12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX

TELEPHONE: [phone]

FACSIMILE: [phone]

FOR IMMEDIATE RELEASE

26 September 2013

DIPLOMA PLC

PRE-CLOSE STATEMENT

YEAR ENDING 30 SEPTEMBER 2013

Diploma PLC, the international group of specialised businesses supplying technical products and services, is today providing the following update on trading for the year ending 30 September 2013.

Revenues for the year are expected to be ca. 10% ahead of those reported last year.  After adjusting for currency effects and acquisitions, underlying revenues for the year are expected to have increased by ca. 4%.  The underlying increase in fourth quarter revenues is expected to be ca. 6% which is at a similar level to the third quarter increase. 

Trading conditions in each of the Group's sectors remains consistent with that described in the IMS issued on 30 July 2013, led by a strong performance from Life Sciences and improving underlying growth in Seals. Group operating margins are expected to be ca. 19% largely reflecting the impact of the phasing of costs incurred on the Group's Investment for Growth programme.

Cash flows remain robust with the year end cash expected to be ca. £20m. Acquisitions remain an important part of the Group's growth strategy, with the acquisition pipeline continuing to improve and good progress being made on advancing acquisition opportunities.

The Preliminary Results for the year ending 30 September 2013 will be announced on Monday, 18 November 2013.  There will be a presentation to analysts of the results at 9.00am, at Butchers' Hall, 87 Bartholomew Close, City of London, EC1A 7EB.

Notes:

1.   This Interim Management Statement, which is based upon unaudited management accounts, has been prepared solely to provide additional information to the shareholders of Diploma PLC in order to meet the requirements of the UK Listing Authority's Disclosure and Transparency Rules.  It should not be relied on by any other party, for other purposes.  Certain statements made in this Statement are forward-looking statements.  Such statements have been made by the Directors in good faith using information available up until the date that they approved this Statement.  Forward-looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks.

2.   A copy of this Statement, together with further information about Diploma PLC, may be viewed on its website at www.diplomaplc.com

Diploma PLC -	[phone]
Bruce Thompson, Chief Executive Officer
Nigel Lingwood, Group Finance Director
Tulchan Communications -	[phone]
David Allchurch
Martin Robinson

NOTE TO EDITORS:

Diploma PLC is an international group of businesses supplying specialised technical products and services to the Life Sciences, Seals and Controls industries.

Diploma's businesses are focussed on supplying essential products and services which are funded by the customers' operating rather than their capital budgets, providing recurring income and stable revenue growth.

Our businesses then design their individual business models to closely meet the requirements of their customers, offering a blend of high quality customer service, deep technical support and value adding activities. By supplying essential solutions, not just products, we build strong long term relationships with our customers and suppliers, which support attractive and sustainable margins.

Finally we encourage an entrepreneurial culture in our businesses through our decentralised management structure. We want our managers to feel that they have the freedom to run their own businesses, while being able to draw on the support and resources of a larger group.  These essential values ensure that decisions are made close to the customer and that the businesses are agile and responsive to changes in the market and the competitive environment.

The Group employs ca. 1,200 employees and its principal operating businesses are located in the UK, Germany, US, Canada and Australia.

Over the last five years, the Group has grown adjusted earnings per share at an average of ca. 20% pa through a combination of organic growth and acquisitions.  Diploma is a member of the FTSE 250 with a market capitalisation of ca. £700m.

 

END

 

 

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