Diploma lifts third quarter revenue

Specialised technical products and services provider Diploma said revenues increased 13 per cent from the previous year and quarter following contributions from acquisitions and after strong demand at its North American Seal businesses.

The group, which supplies specialised technical products and services to the life sciences, seals and controls industries, said after adjusting for currency effects and acquisitions, underlying revenues from 1 April 2012 to date increased by 7%. The underlying increase in third quarter revenues was up 5% from the year before, it added.

The FTSE 250 firm which operates in the UK, Germany, US and Canada, said revenues at its seals business climbed 28% from the prior period, following contributions its J Royal acquisition in December 2011.

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Life Sciences revenue grew 4% for the year to date, as strong growth in consumable revenues in the Canadian Healthcare businesses outweighed pressure from the phasing of capital sales.

In Controls, revenue increased 6% during the period, helped by recent acquisitions and improved trading in Germany. UK markets softened during the period.

Since March, Diploma has invested a further £6.6m on acquisitions, taking the total spend on acquisitions to £22.1m for the year to date. The group's net debt position at 31 March 2012 was £3m and the group has bank facilities of £20m and an option to extend these facilities to £40m.

Looking ahead Diploma said it remains confident that it will report further good progress in the second half of the year.

CJ