14th May 2018 08:51
LONDON (Alliance News) - Diploma PLC said Monday it delivered strong growth in revenue and earnings for the first half of 2018 financial year despite currency headwinds, while it expects to complete new acquisitions this year.
The company, which supplies medical instruments, sealing products and cable harness components, also said results were helped by a continuing strong global trading environment and the lowering of US Federal corporate income tax rate to 21% from 35%.
For the six months to March-end, Diploma recorded pretax profit of GBP35.4 million, up 8% from GBP32.9 million in the comparative year-ago period, on a revenue of GBP234.9 million and GBP217.3 million, respectively. Currency movements dented revenue by 4%, while acquisitions made a contribution of 5%.
Adjusted pretax profit for the interim period grew 9% to GBP40.4 million, reflecting the benefits of the reduction in US tax rate.
The company's Life Sciences division reported 16% growth in first half revenue to GBP67.4 million with a strong contribution from Abacus, the Australian diagnostic business acquired in April 2017. The growth also was supported by good growth in consumable product sales and new product introductions
The Seals division recorded 5% growth in revenue to GBP99.2 million, mainly due to strong trading activity across North American businesses. The Controls division reported 6% revenue growth to GBP68.3 million against a very strong comparative last year.
"Acquisitions remain an integral part of the group's growth strategy although the generally stronger trading conditions in most markets have constrained acquisition activity in the first half of the year. However, the pipeline of acquisition opportunities remains healthy and work is continuing to bring some of these to completion before the end of the fiscal year," Diploma said.
It said it remains confident of making further progress during the year.
The UK-listed company lifted its interim dividend by 10% to 7.7 pence per share reflecting confidence in the company's growth prospects.
Diploma was down 0.3% at 1,237.00 pence per share in morning trade Monday.
Related Shares:
Diploma