TIDMDPLM
RNS Number : 8670Y
Diploma PLC
19 January 2022
DIPLOMA PLC
10-11 CHARTERHOUSE SQUARE, LONDON EC1M 6EE
TELEPHONE: +44 (0)20 7549 5700
19 JANUARY 2022
DIPLOMA PLC
Q1 TRADING UPDATE: STRONG START TO FY 2022
Diploma PLC, the international group distributing specialised
products and services, today issues a trading update for the three
months ended 31 December 2021 ahead of the Company's AGM today at
2:00pm.
First quarter performance
Performance in the first quarter of the year has been strong, as
expected:
-- Underlying revenue growth was 16% driven by our organic
revenue initiatives and continued strong demand.
-- All Sectors have started the year well:
o Controls: very strong growth across the Sector, with
successful end segment diversification and a continued excellent
contribution from Windy City Wire.
o Seals: strong, broad-based growth and we are starting to see
market share gains in North American Aftermarket.
o Life Sciences: a positive performance, with underlying revenue
growth moderated in the first half, as expected, by one-off
COVID-related revenues in the prior year.
-- Reported revenue growth was 28%, reflecting the net
contribution from acquisitions and the two small disposals
completed last year. We remain disciplined in our approach to
acquisitions and our pipeline is encouraging.
-- We continue to expect underlying growth to moderate as the
year progresses and comparators become more demanding. Similarly,
growth in the quarter also benefited from the pass through of
higher year-on-year copper prices, which added ca. 5% to underlying
growth.
-- Our operating margin is in-line with expectations, with a
continued focus on managing supply chain pressures and tight labour
markets.
Strategy
Our performance demonstrates the benefits of our long-term
strategy of building high-quality, scalable businesses for organic
growth. We are focused on diversification of our businesses as a
route to scale, capitalising on structurally growing end markets,
increasing penetration of core geographies, and expanding our
product capability. We continue to develop our value-added business
model in order to successfully execute our customer proposition at
scale while sustaining attractive margins.
Outlook positive and unchanged
While it is still early in FY 2022, our strong first quarter
performance increases our confidence in delivering our full year
guidance. We remain very positive about our prospects, and are
well-positioned to deliver attractive long-term growth at
sustainably high margins.
Our next scheduled update will be the publication of half year
results on 16 May 2022.
Johnny Thomson, Chief Executive Officer, and Barbara Gibbes,
Chief Financial Officer, will host a conference call for analysts
and investors this morning at 8:15am (UK time). Conference call
dial in details:
-- Dial in: +44 (0)330 336 9601
-- Participant access code: 3653588
A replay will be available for seven days:
-- Dial in: +44 (0)20 3859 5407
-- Access code: 3653588
Enquiries:
Diploma PLC +44 (0)20 7549 5700
Johnny Thomson, Chief Executive Officer
Barbara Gibbes, 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
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 underlying performance of the
Group. All references in this Statement to "underlying" 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
LEI: 2138008OGI7VYG8FGR19
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END
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