30th Jul 2014 08:33
LONDON (Alliance News) - Technical products and services provider Diploma PLC said Wednesday that trading in the third quarter to end-June was in line with expectations, with its revenue in the nine months up 6% from the previous year.
The company, which makes products including instrumentation, seals, gaskets, fasteners and wire and cable, said that revenue was up 8% at constant currency rates and adjusting for acquisitions.
Diploma makes about a third of its revenue in the life sciences sector, slightly more from seals, and slightly less from controls. Over half the revenue is made in North America, 38% in Europe and 9% in the rest of the world.
Life sciences revenue was up 8% at constant currencies and excluding acquisitions, boosted by strong revenues from consumable and service products, which offset weaker capital revenues. Seals revenue was up 6% due a better performance in the US aftermarket segment and continued growth in its industrial original equipment manufacturer business. Controls revenue was up 9%, although Diploma noted that the rate of growth had slowed in certain market segments.
The company acquired Speciality Fasteners Components Ltd in June 2013 for GBP2.9 million, and the assets and goodwill of Chemzyme Australia Pty Ltd for GBP700,000. Acquisitions contributed GBP9 million revenue during the period, although this was more than offset by the strength of sterling, it warned.
It said that operating margins "generally" remained robust, despite weakening margins at its healthcare business as existing currency hedging contracts expired and were replaced by more expensive contracts.
Diploma's net cash as at June 30 was around GBP10 million. In June, it renewed its bank facilities with a GBP25 multi-currency revolving facility and an accordion option to increase the facility to GBP50 million.
Diploma expects to announce its full year results November 17.
Shares in Diploma were trading up 2.2% at 639.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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