21st Nov 2016 07:34
LONDON (Alliance News) - Technical products supplier Diploma PLC on Monday reported growth in profit and revenue in its financial year to the end of September, with solid trading across its divisions despite a margin squeeze.
The FTSE 250 maker of medical devices, hydraulic seals and specialised wiring said it made a pretax profit of GBP54.0 million in the year to September 30, up 4.0% from GBP51.8 million a year before.
Revenue rose 15% to GBP382.6 million from GBP33.8 million, but this was diluted on the bottom line by a decline in adjusted operating margin to 17.2% from 18.1%, driven mainly by weaker margins in Diploma's Healthcare business.
Life Sciences division revenue rose 4.0% in constant currencies in the year, despite issues facing its Healthcare business as hospital customers keep a tight lid on costs. Sales revenue rose 1.0% at constant currency rates, with slow growth in North American construction and industrial markets, while Controls revenue was up 4.0%, with strength in aerospace, defence and motorsport sectors.
Diploma declared a final dividend of 13.80 pence per share, meaning its total payout rises 10% year-on-year to 20.00p from 18.20p a year prior.
"Diploma has a strong and resilient business model with a broad geographic spread of businesses, supported by a robust balance sheet and consistently high free cash flow. This model has delivered a strong result this year benefiting from a good contribution from acquisitions and boosted by a currency tailwind in the final quarter," said Bruce Thompson, Diploma's chief executive.
"Despite the current macro-economic uncertainty in the global environment, the board remains confident that the broup will continue to make further progress in the coming year from a combination of steady GDP plus organic growth and a strong and successful acquisition programme," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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