Diploma group revenue up 16%

published 18 January 2012

Diploma, a specialised technical products and services provider, has reported group revenue 16% ahead of the comparable period last year, while group operating margins remained at similar levels to last year, for the period October 1st to date.

On an underlying basis, after adjusting for currency effects and acquisitions, revenues increased by 11% against the comparable period last year.

In a statement the firm said: "The group has made an encouraging start to the year and we see good opportunities for further development, both organically and through acquisition. Although underlying growth rates are likely to slow as we enter a period of tougher comparatives, the board remains confident of making good progress in this financial year."

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In the Life Sciences sector, revenues were 27% ahead of the comparable period last year, boosted by the contribution from CMI, acquired in December 2010, and strong sales of capital instrumentation.

In the Seals sector, revenues increased by 19%, with both the North American and European businesses experiencing strong demand and a good first quarter contribution from the recently established Chinese operation.

Revenues were 3% ahead of the comparable period last year in the Controls sector, with a strong performance in the UK, but with trading in Continental Europe constrained by market uncertainty, the firm said.

During the quarter ended December 31st 2011, the group generated free cash flow of around £3m. However, as a result of acquisitions, net cash funds were reduced over the period by around £8m to about £4m at 31 December.