Acquisitions driving growth at Diploma

Specialised technical products firm Diploma was looking at positive growth on Thursday, as a result of its recent acquisitions.

The FTSE 250 company said the businesses acquired in the last year had made a good contribution to the group’s overall results, with revenues for the six months ending 31 March expected to be around 9% ahead of the prior period.

Diploma’s board said the acquired businesses contributed to around 8% of group revenues, while currency movements reduced revenues by around 1%, despite the weakening of sterling since the start of 2016.

On an underlying basis, after adjusting for the impact of currencies and acquisitions, revenues were expected to be ahead 1-2%.

Diploma’s cash position was also changed after the £31m spent on completing the acquisitions of WCIS in October and Cablecraft in early March.

It had net debt of £25m on 31 March, compared to net cash of £3m on 30 September. The company currently had a committed revolving bank facility of £50m, of which £40m had been drawn down.

Diploma’s half year results were due to be published on 16 May.