16th Nov 2015 07:42
LONDON (Alliance News) - Diploma PLC on Monday said its pretax profit and revenue edged higher in its recently-ended financial year, albeit as sales were held back in the second half by softer industrial markets and cost-cutting in the healthcare sector.
The FTSE 250-listed technical products and services company said its pretax profit for the year to the end of September was GBP51.8 million, compared to GBP49.8 million a year earlier, as revenue rose to GBP333.8 million from GBP305.8 million.
The group will pay a final dividend of 12.4 pence per share, up 7.0% year-on-year, bringing its total dividend up to 18.2p from 17.0p.
Diploma has three operating divisions, covering life sciences, seals and controls. The life sciences arm makes medical devices and consumables for the healthcare sector, the seals arm makes hydraulic seals, gaskets and cylinders for the industrial market, and the controls units makes specialised wiring, connectors and fasteners for a range of industries.
Revenue in Diploma's life sciences business increased over the year, despite its healthcare division facing more difficult markets amid increased cost controls by hospitals. Seals revenue was higher, though this was dragged back by some weakness in industrial markets in the second half, while controls revenue fell due to softer European industrial markets and strong prior-year comparatives.
"The group's strong and proven business model delivered robust growth this year, benefiting from a good contribution from acquisitions and despite adverse exchange rate movements. This balance is expected to continue into the coming financial year as the economic headwinds continue to constrain organic growth in the group's principal markets in North America and Europe, but prospects for further acquisitions remain promising," said Bruce Thompson, Diploma's chief executive.
"While the board remains cautious on the current macroeconomic backdrop, we remain confident that the group's resilient business model with a diverse geographic spread of activities and strong financial position, together with a more favourable environment for acquisitions will provide a good platform to deliver further growth in the coming year," Thompson added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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