20th Jan 2021 10:38
(Alliance News) - Diploma PLC said Wednesday it has made a "strong" start to its financial year, with improved trends in underlying trading across all of its three sectors in the first quarter.
In the three months to December 31, the firm's first quarter, the London-based seal and cables maker saw its revenue grow 24% year on year. In its Life Sciences unit, reported revenue rose 10%, Seals revenue was flat, and Controls revenue jumped 71%.
"The group delivered underlying revenues in line with last year's pre-Covid comparative, reflecting strong execution of our organic growth initiatives," Diploma said.
The firm also noted the "excellent" first quarter contribution from Windy City Wire which is trading "very well" following a smooth transition into the company.
Diploma added bolt-on acquisitions remains a "core" part of its strategy.
"The first quarter has been active with GBP48.8 million invested in three high quality, strategically important bolt-on acquisitions to build scale in core markets and enhance our organic growth ambitions," the company said.
The three acquisitions include Simonsen & Weel, FITT Resources and Power Dynamics.
Diploma added: "Inevitably uncertainties remain with respect to the duration and impact of the Covid-19 pandemic. However, while the pandemic may modestly affect Q2 revenues, we are pleased with the group's trading performance. Excluding the contribution from the acquisitions completed in the quarter, full year expectations for the underlying business remain positive and unchanged."
Shares in Diploma were up 3.7% at 2,210.00 pence each in London on Wednesday morning.
By Paul McGowan; [email protected]
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