25th Mar 2020 09:18
(Alliance News) - Diploma PLC on Wednesday said it now expects a weaker interim performance after the Covid-19 outbreak hurt its trading starting last week.
Diploma offers technical products in the areas of life sciences and industrial seals, wiring and fasteners.
Up until the week beginning March 16, Diploma expected an interim revenue rise of 11% year-on-year. Now, due to "a rapid change in market conditions", Diploma now expects a weaker performance in the six months to March 31.
"This change in market conditions as a result of Covid-19 is now affecting trading in many of our businesses. However, it remains too early to assess the impact that this unfolding situation will have on trading for the full year," Diploma said.
The company said it has cash resources of about GBP55 million.
Diploma said: "The group is acting to conserve cash and all discretionary revenue and capital expenditure has been restricted. The group's businesses are also reviewing options to manage our employees effectively through this period, including utilising appropriate government assistance programmes."
Up until Monday last week, Diploma's Seals unit was set to report a 20% interim revenue hike, the Life Sciences division a 4% jump and the Controls segment a 3% increase.
The company is penned to release its interim results on May 11.
Shares in the company were 0.4% higher at 1,438.00 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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