Diploma sees weak pound boosting full year revenues
Diploma
4,262.00p
09:00 07/10/24
International technical products group Diploma said it had traded well in the second half and was on track to post full year results in line with expectations with the weak pound lifting revenues.
FTSE 250
20,802.24
09:00 07/10/24
FTSE 350
4,560.39
09:00 07/10/24
FTSE All-Share
4,517.76
09:00 07/10/24
Support Services
11,362.71
09:00 07/10/24
Full year reported group revenues are expected to increase by around 17% including a 9% lift from the collapse in the pound and 2% from acquisitions. On an underlying basis, after adjusting for the impact of acquisitions and currency effects, group revenues for the year are expected to increase by 6%, Diploma said in a trading statement.
Net cash funds are expected to be more than £20m with access to a £60m revolving credit facility.
In life sciences, underlying revenue growth for the full year is expected to be 3%, helped by stronger second half capital equipment sales in the healthcare businesses.
Healthcare reported revenues also benefited from a good contribution from Abacus, acquired in April this year, Diploma said. In the seals unit, underlying revenue growth is likely to have increased to 4% for the full year it added.
Trading activity in North America benefited from solid revenues in the aftermarket and a resumption of growth in the industrial original equipment manufacturer businesses. International seals revenue growth also improved in the second half of the year, the company said.
In controls, market conditions remained robust and despite tougher comparatives in the second half, underlying revenues were expected to be 13% ahead for the full year, benefiting from new project activity and a strong focus on developing new sales opportunities.
“Acquisitions remain an important part of the Group's growth strategy and new opportunities continue to be pursued. In the second half of the year the Group has invested around £19m in newly acquired businesses,” Diploma said.