21st Jan 2015 07:45
LONDON (Alliance News) - Diploma PLC on Wednesday reported a rise in revenue in the first quarter of its financial year, albeit an increase held back by currency fluctuations.
The FTSE 250-listed technical products and services company said group revenue for the first quarter to the end of December rose 4% year-on-year, in line with its expectations and on track with its guidance for underlying growth. On a constant currency basis, however, revenue for the group rose 14% year-on-year.
The group said the revenue from its acquisitions made in the last financial year fell 2% due to currency headwinds, with the benefits from the appreciation of the dollar offset by depreciation in other trading currencies, though the company did not define which ones. On a constant currency basis, revenue contributed by its acquisitions increased 12%.
Operating margins for the company were flat year-on-year, Diploma said, with the anticipated weaker margin in its Life Sciences business offset by margins in its Seals business.
In the Life Sciences business, revenue rose 3%, or 14% on a constant currency basis, with a strong contribution from the recently-acquired TPD business in Ireland. For its Seals business, revenue rose 9%, or 25% in constant currencies, on the back of strong performances from the businesses it acquired last year and from strong growth in the US arm.
For its Controls division, revenue fell 3% due to weaker demand in Europe, though the group said signs of improvement have been seen since the turn of the year.
By Sam Unsted; [email protected]; @SamUAtAlliance
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