Diploma Plc. (DPLM.L), a supplier of specialized technical products and services, Wednesday said its revenues for the first quarter – the quietest quarter of the year – increased 14 percent from last year, with a 17 percent in the Life Sciences sector.
In an Interim Management Statement for the period from October 1, 2012 to date, the company said underlying revenues, after adjusting for currency effects and acquisitions, increased 5 percent against strong prior year comparatives.
Revenues climbed 17 percent in the Life Sciences sector, boosted by the contribution from DSL that was acquired in June 2012 and from strong sales of consumables, which more than offset slightly weaker capital revenues.
In the Seals sector, revenues increased 12 percent, benefiting from the acquisition of J Royal towards the end of December 2011. Underlying Seals revenue growth moderated against a very strong comparative last year, which was expected.
In the Controls sector, revenues increased 11 percent, benefiting from the small acquisitions completed last year.
Diploma added that the challenging economic conditions in Continental Europe has had a broader impact across Northern European markets and that underlying trading conditions across the Controls businesses remain challenging.
Operating margins expectedly reduced as the firm continued to implement its program of planned investments to support the future growth of the business. But, cash flow remained strong in the quarter.
On January 8, the company acquired the remaining 20 percent of shares in BGS, its small Australian healthcare supplier acquired in July 2010. The initial consideration was 0.4 million pounds.
Further consideration of up to a maximum of 0.5 million pounds is payable based on the performance of this business in the financial years ending September 30, 2013 and 2014.
The BGS operation and administrative functions will be integrated with the DSL business based in Melbourne.
Diploma is holding its annual general meeting today.
DPLM.L is currently falling 2.7 percent at 523.50 pence.
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by RTT Staff Writer
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