Diploma delivers double-digit growth

Continued strength at its seals business helped Diploma post revenue in line with company expectations for the year.

Revenue in seals, which supplies components and kits for heavy machinery and industrial equipment, hydraulic seals, gaskets and cylinders, climbed 13% after particularly strong from its North American aftermarket.

Its life sciences division contributed 5% to the group performance after good sales of capital equipment in first half. The controls businesses saw 2% growth after it was held back by reduced activity in Continental Europe and UK Food & Beverage.

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Group pre-tax profit rose 17% to £46m in the year ended September 30th while revenue increased 13% to £260.2m. Adjusted pre-tax profit climbed 17% to £52.6m.

Underlining its confidence in future trading, the full year dividend has been increased 20% to 14.4p.

The specialised technical products and services provider has net funds of £7.9m.

Chief Executive Bruce Thompson said: "Diploma has delivered another year of strong double-digit growth in revenues and profits, by a combination of 'GDP plus' levels of organic growth and contributions from a number of good quality, value-enhancing acquisitions."

"During the year, we have also made significant progress in making the investments in the facilities, IT systems and management resources needed to lay the robust foundation for continued growth in the next five year period."

"The group is well placed to make further progress during the new financial year."

CJ