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REG - Diploma PLC - Q1 trading update

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RNS Number : 8601Z  Diploma PLC  17 January 2024


     TELEPHONE: +44 (0)20 7549 5700


17 January 2024





Diploma PLC ("Diploma" or the "Company"), the international value-add
distribution group, today issues a trading update for the three months ended
31 December 2023, ahead of the Company's Annual General Meeting today at



·      Strong Q1 performance in-line with our expectations: maintaining
the momentum from the prior year.


·      Organic revenue growth of 6%: broad-based, volume-led growth
across the Group. Strong growth continues in Controls and Life Sciences; Seals
performed robustly, delivering moderate organic growth in the period.


·      Reported revenue growth of 10%: with an 8% contribution from
acquisitions partly offset by a 4% impact from foreign exchange.


·      Three bolt-on acquisitions in Q1: for total consideration of
£9.5m at average multiples of around 4x EBIT, driving strong return on
capital. We remain disciplined in our approach and the pipeline remains


·      Strong operating margin: in line with our expectations.


Full year outlook positive and unchanged


Diploma has an excellent track record of sustainable quality compounding:
consistently delivering strong growth, margins and returns on capital. Whilst
we remain mindful of the uncertain economic outlook, the Group's resilient
business model, coupled with the strong start to the year, mean that we remain
confident in our unchanged full year guidance:


·      Organic revenue growth of ca. 5%.

·      Acquisitions announced to date to add ca. 6% to reported revenue

·      Strong operating margin in line with prior year at 19.7%.

·      Free cash flow conversion of ca. 90%.


Johnny Thomson, Chief Executive Officer, and Chris Davies, Chief Financial
Officer, will host a conference call for analysts and investors this morning
at 8:00am (UK time).


Conference call dial in details:

• Dial in: +44 (0) 33 0551 0200 (UK toll-free: 0808 109 0700)

• Password: Diploma Q1


Our next scheduled update is our half year results on 13 May 2024.



 For further information please contact:

 Diploma PLC -                             +44 (0)20 7549 5700
 Johnny Thomson, Chief Executive Officer
 Chris Davies, Chief Financial Officer
 Holly Gillis, Head of Investor Relations

 Teneo -                                   +44 (0)20 7353 4200
 Martin Robinson
 Olivia Peters





Diploma PLC is a decentralised, value-add distribution Group. Our businesses
deliver practical and innovative solutions that keep key industries moving -
from energy and infrastructure to healthcare.


We are a distribution group with a difference. Our businesses have the
technical expertise, specialist knowledge, and long-term relationships
required to deliver value-add products and services that make our customers'
lives easier. These value-add solutions drive customer loyalty, market share
growth and strong margins.


Our decentralised model means our specialist businesses are agile and
empowered to deliver the right solutions for their customers, in their own
way. As part of Diploma, our businesses can also leverage the additional
resources, opportunities and expertise of a large, international and
diversified Group to benefit their customers, colleagues, suppliers and


We employ c.3,500 colleagues across our three Sectors of Controls, Seals and
Life Sciences. Our principal operating businesses are located in the UK,
Northern Europe, North America and Australia.


Over the last fifteen years, the Group has grown adjusted earnings per share
(EPS) at an average of ca. 15% p.a. through a combination of organic growth
and acquisitions. Diploma is a member of the FTSE 100.


Further information on Diploma PLC can be found at www.diplomaplc.com


Diploma hosted an Investor Seminar in June 2023. A recording is available on
our website:



The person responsible for releasing this Announcement is John Morrison, Group
Company Secretary.

LEI: 2138008OGI7VYG8FGR19

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