29th Sep 2014 07:04
LONDON (Alliance News) - Diploma PLC said Monday that trading across its divisions remains in line with expectations as it continues to focus on acquisitions.
In a pre-close statement for the year to September 30, the company, which makes products including instrumentation, seals, gaskets, fasteners and wire and cable, said overall trading conditions in each of its sectors remains consistent with previously announced expectations, with revenue for the year expected to come in approximately 6% higher than last year.
After adjusting for acquisitions and strong currency headwinds, underlying revenue growth for the year is expected to be 7-8%, said Diploma.
In July the company said that trading in the third quarter to the end of June had been in line with expectations, with its revenue in the nine months up 6% from the previous year. Diploma 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.
Operating margins have remained robust, said the FTSE 250-listed company Monday, despite the anticipated transactional currency effects on its Healthcare gross margins. Cashflow also remains strong; at the year-end net cash is expected to be approximately GBP20 million, said Diploma.
During the period the company said it has spent GBP16 million on acquisitions, and that these remain a "key component of the Group's growth strategy." Looking ahead Diploma believes that the current environment for acquisitions remains positive and said it has a promising pipeline of opportunities.
Preliminary full-year results for the period to September 30 will be announced November 17, 2014, said the company.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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