REG - Diploma PLC - Trading Statement

DiplomaAnnouncement

18/01/2023 07:00

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RNS Number : 0363N  Diploma PLC  18 January 2023

 

DIPLOMA PLC

 
           10-11 CHARTERHOUSE SQUARE, LONDON EC1M 6EE

TELEPHONE: +44 (0)20 7549 5700

 

 

18 JANUARY 2023

 

DIPLOMA PLC

Q1 TRADING UPDATE: STRONG START TO FY 2023

 

Diploma plc, the international group distributing specialised products and
services, today issues a trading update for the three months ended 31 December
2022 ahead of the Company's AGM today at 9:00am.

Year to date performance

Performance in the first quarter has been strong, in-line with our full year
expectations.  We continue to focus on revenue diversification activity to
drive growth, build scale and increase resilience. We drive this
diversification by positioning behind structurally growing end markets,
further penetrating core developed economies and extending product ranges to
expand addressable markets.

During the first three months of FY 2023:

·   Organic revenue growth 10%: broad-based momentum in Controls, sustained
strong growth at Seals and Life Sciences on track for sustainable growth as
surgical procedures continue to recover.

·   Two small bolt-on acquisitions completed at attractive valuations; we
remain disciplined in our approach to acquisitions and the pipeline is
encouraging.

·    Reported revenue growth 30%: 11% contribution from high quality
acquisitions and a 9% foreign exchange benefit.

·    Strong operating margin, in-line with expectations, demonstrating the
power of our resilient value-added service model which drives customer loyalty
and pricing power.

Full year outlook positive and unchanged

We remain mindful of the uncertain economic outlook. However, our business
model is resilient. This, together with the strong Q1 performance, underpins
our continuing confidence in delivering our full year guidance: mid-single
digit organic revenue growth (likely to be H1 weighted); acquisitions to add
ca.6% to reported growth; and, a strong, resilient operating margin of
18-19%.

The Group's excellent long-term track record of compounding growth
demonstrates the strength of the business model. We remain focused on
executing our strategy of building high quality, scalable businesses for
organic growth and we are confident in our long-term prospects.

Our next scheduled update will be the publication of half year results on 15
May.

 

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: UK-wide +44 (0) 33 0551 0200 / UK toll free: 0808 109
0700 (US +1 786 697 3501)

·      Password: Diploma

 

A recording of the call will be made available on the website later in the day
or can be requested by contacting investors@diplomaplc.com
(mailto:investors@diplomaplc.com)

 

 Enquiries:

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

 Tulchan Communications                     +44 (0)20 7353 4200
 Martin Robinson
 Olivia Peters

 

Further information on Diploma PLC can be found at www.diplomaplc.com
(http://www.diplomaplc.com)

 

 

Notes:

 

1.   This trading update is based upon unaudited management accounts and has
been prepared solely to provide additional information on trading to the
shareholders of Diploma PLC. It should not be relied on by any other party for
other purposes. Certain statements made in this update are forward-looking
statements. Such statements have been made by the Directors in good faith
using information available up until the date that they approved this
Statement. Forward-looking statements should be regarded with caution because
of the inherent uncertainties in economic trends and business risks.

 

2.   Diploma PLC uses alternative performance measures as key financial
indicators to assess the organic performance of the Group. All references in
this Statement to "organic" revenues refer to reported results on a constant
currency basis, before acquired or disposed businesses (ex-growth basis) and
include growth generated by acquisitions under our ownership.

 

3.   A copy of this Statement, together with further information about
Diploma PLC, may be viewed on its website at www.diplomaplc.com
(http://www.diplomaplc.com/)

 

 LEI: 2138008OGI7VYG8FGR19

 

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