Diploma makes strong start as Q1 revenues rise 10%

Distribution group Diploma has hailed a "strong start" to its financial year as recent acquisitions helped revenues rise by a tenth.

The company, which operates three divisions which comprise Controls, Seals and Life Sciences, said acquisitions accounted for 8% of the reported 10% revenue growth in the three months to 31 December, slightly offset by a 4% impact from foreign exchange.

Organic revenue growth came in at 6%, with "broad-based, volume-led growth across the group", Diploma said.

Strong growth continued Controls and Life Sciences, while Seals was said to have performed "robustly", delivering moderate organic growth in the period.

While acknowledging an "uncertain economic outlook", the company held on to its full-year guidance of organic growth of 5%, unchanged operating margins of 19.7% and free cash flow conversion at around 90%.