15th Jan 2020 07:56
(Alliance News) - Diploma PLC on Wednesday expressed a positive outlook for the reminder of the year after reporting high single-digit revenue growth in the first quarter.
Ahead of its annual general meeting, the technical products and services supplier said it has made a "positive" start to its financial year which ends in September, with overall trading in line with expectations.
For the three months to the end of 2019, Diploma reported an increase in revenue of 9% year-on-year. On a constant currency basis, revenue improved by 11%.
Diploma noted that its operating margin in the first quarter remained in line with forecasts.
The FTSE 250-listed company said Life Sciences sector revenue on a reported and underlying basis was up 2% and 3%, respectively, held back by the timing of product delivered to customers. However, Diploma said it expects these revenues to be recovered in the second financial quarter.
Turning to the Seals sector, the unit reported revenue up 18% year-on-year in the first quarter, which included a strong contribution from businesses acquired last year.
Controls sector revenue on a reported and underlying basis was up 3% and 4%, respectively, and included another strong contribution from Clarendon Specialty Fasteners, the company said.
Looking ahead, Diploma said its expectations for the full year remain positive and unchanged. The pipeline of acquisition opportunities also remains healthy, the company added, and its balance sheet continues to benefit from strong cash generation.
By Evelina Grecenko; [email protected]
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