The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Specialised technical products and services provider Diploma expects results for the year to the end of September will be in line with market consensus. Revenues are tipped to be around 13% ahead of the previous year, with underlying revenues advancing by some 6%. Fourth quarter revenues are set to be 5% higher year-on-year, maintaining the pace of growth seen in the third quarter. Strong cash flows in the final quarter of the year will result in year end net cash being strongly positive, Diploma said. Operating margins have eased in the second half of the financial year from the first half, but are still ahead of the prior year.
Since March, Diploma has invested a further £6.6m on acquisitions, taking the total spend on acquisitions to £22.1m for the year to date. The group's net debt position at 31 March 2012 was £3m and the group has bank facilities of £20m and an option to extend these facilities to £40m. Looking ahead Diploma said it remains confident that it will report further good progress in the second half of the year.
Specialised technical products and services provider Diploma said revenues increased 13 per cent from the previous year and quarter following contributions from acquisitions and after strong demand at its North American Seal businesses. The group, which supplies specialised technical products and services to the life sciences, seals and controls industries, said after adjusting for currency effects and acquisitions, underlying revenues from 1 April 2012 to date increased by 7%. The underlying increase in third quarter revenues was up 5% from the year before, it added. The FTSE 250 firm which operates in the UK, Germany, US and Canada, said revenues at its seals business climbed 28% from the prior period, following contributions its J Royal acquisition in December 2011. Life Sciences revenue grew 4% for the year to date, as strong growth in consumable revenues in the Canadian Healthcare businesses outweighed pressure from the phasing of capital sales. In Controls, revenue increased 6% during the period, helped by recent acquisitions and improved trading in Germany. UK markets softened during the period.
I understand your reaction to the very disappointing decline in the share price. The Board and management of Max are working hard to grow production, test the remaining post-salt prospects and progress with the deep well - and thereby maximize value for shareholders. The owner of Max is of course all of our shareholders. As such you and every other shareholder have the right to ask questions at our AGM or otherwise and have them answered by the Company. I would hope you would understand that we are restricted from selectively divulging price sensitive information and need to primarily communicate important information to all shareholders via RNS announcements through the LSE. However that doesn’t stop us speaking with individuals to explain what has already been announced or set it in context. If speaking in these more general terms would be useful then please let me know.
Financial Position The Group's cash flow has continued to be strong and as anticipated at the half year, growth in working capital has slowed and overall working capital should begin to fall in the final quarter of the year. Since 31 March 2012, the Group has invested a further £6.6m on acquisitions net of cash acquired, taking the total spend on acquisitions to £22.1m for the year to date. As a result of this additional investment the Group continues to be in a small net debt position at the end of July 2012 (31 March 2012: £3.0m net debt). However, the Group remains well funded with bank facilities of £20m and an option to extend these facilities to £40m. There have been no other material changes in the financial position of the Group in the period since the publication of the Half Year Report for the six months ended 31 March 2012. Outlook The Board remains confident that the Group will report further good progress in the second half of the year.
Acquisition of Diagnostic Solutions On 6 June 2012, the Group completed the acquisition of 80% of Diagnostic Solutions Pty Ltd ("DSL"), from Ms E de Gooyer and Mr P West for cash consideration of £3.0m (A$4.8m); the outstanding 20% of shares are subject to put and call options exercisable from October 2014 at an agreed multiple of earnings before interest and tax. DSL, which is based in Melbourne, Australia, supplies a range of consumables and instruments used in the diagnostic testing of blood, tissue and other samples in the pathology laboratories across Australia. Its activities are very similar to the Group's existing Somagen business in Canada and will be complementary to the Group's existing BGS business in Australia.
SECOND INTERIM MANAGEMENT STATEMENT IN RESPECT OF YEAR ENDING 30 SEPTEMBER 2012 Diploma PLC, the international group of businesses supplying specialised technical products and services, is today issuing its second Interim Management Statement which relates to the period from 1 April 2012 to date. Trading Summary Revenues for both the year to date and for the third quarter were 13% ahead of the comparable period in 2011 benefitting from recent acquisitions, together with continuing strong trading in the Group's North American Seal businesses. After adjusting for currency effects and acquisitions, underlying revenues for the year to date increased by 7%. The underlying increase in third quarter revenues was 5% against a strong prior year comparative. The incremental investment being made in facilities, IT and management to support future growth, as described in the Half Year Report, has begun to impact operating margins which, as anticipated, are now slightly below the record level reported in the first half of the year. In Seals, revenues for the year to date are 28% ahead of the prior comparable period, benefiting from the contribution from J Royal acquired in December 2011. Underlying growth in Seals continues to be strong, but the rate of growth has slowed somewhat from that seen in the first half of the year. In Life Sciences, revenue growth for the year to date has been 4%, with strong growth in consumable revenues in the Canadian Healthcare businesses, but held back by the phasing of capital sales. In Controls, revenue growth for the year to date has been 6%, reflecting the benefit from recent acquisitions, together with a small improvement in trading activity in Germany, although this has been offset by a softening in activity across some of the UK markets.
http://www.investegate.co.uk/Article.aspx?id=201207300700057327I
Andy Brown, analyst at Panmure Gordon, is positive on Diploma (DPLM), which reports its first-half results the same day. The pre-close update indicated good progress across its three divisions. The strongest performance was in its seals division, where revenue is expected to be "substantially ahead" year-on-year due to a strong aftermarket performance and market share gains, with operational gearing boosting margins. Steady progress is forecast from life sciences and controls, where a strong UK performance has offset weaker continental European trading. With improved margins, the company said that adjusted full-year profits would be above consensus expectations, driving upgrades. Financially, the pre-close indicated revenue is up about 12%. "Diploma exhibits many of the positive characteristics that we look for in an investment," Andy Brown states. "It has a proven operating model, scope to expand by product and geography, strong management and sound finances." http://www.iii.co.uk/articles/35750/week-ahead P.S. Here's a couple of links about SCLP, one of the hottest stocks at the moment: http://www.euroinvestor.com/community/discussionthread.aspx?threadid=252803 http://www.euroinvestor.com/community/discussionthread.aspx?threadid=253089
Espirito Santo initiates buy on Diploma, target price 481p
Shares in Diploma, the specialised technical products and services provider, are trading just 30p off their all-time high hit at the end of January, so it was not a bad time for Iain Henderson, the Chief Operating Officer, to reduce his holding in the company, Henderson pared his stake in the firm by 35,000 which he sold at 391p each, raising £136,850. The sale still leaves Henderson with 452,433 ordinary shares in the firm, representing about 0.4% of the entire issued share capital. Chief Executive Officer Bruce Thompson has also been reducing his stake in the company. On February 17th, he transferred 62,500 ordinary shares for nil consideration to a charitable foundation of which Thompson is a trustee. These shares were subsequently sold at 391 pence per share.
Commenting on the results for the year, Bruce Thompson, Diploma's Chief Executive said: "It has been an excellent year for Diploma with Group revenues increasing by 26% and adjusted profits up 39%, with all of our sectors reporting strong double digit underlying increases. Diploma's businesses are focused on essential products and services that are generally funded by the customers' operating rather than capital budgets, providing recurring income and stable revenue growth. This resilience gives us confidence in delivering the "GDP plus" levels of underlying organic revenue growth which we aim to achieve over the business cycle. In addition, by supplying essential solutions, not just products, we are able to sustain attractive margins by delivering real value to our customers and suppliers. Finally we encourage an entrepreneurial culture which ensures that our businesses are agile and respond quickly in changing economic and market conditions. Although global economic uncertainty continues, we see good opportunities for future development, both organically and through carefully selected, value adding acquisitions. The Group has a strong balance sheet and is well diversified by geography and business area. The Board has confidence that further progress will be made in the new financial year."
Operating Highlights · Underlying revenue growth of 12% in Life Sciences was driven by continued steady growth in Healthcare funding in Canada and Australia. The acquisition of CMI and its combination with AMT's endoscopy business has created a strong position in the growing GI endoscopy market. · Seals delivered underlying revenue growth of 26% and a strong increase in operating margins. The core Aftermarket business in North America increased its share of the market through its superior levels of customer service and complete inventory. Sales in international markets and to specialised Industrial OEMs also grew strongly. · Controls performed well against a challenging economic and market backdrop, with underlying revenue growth of 12%. Reductions in Defence budgets were moderated by the focus on repair, refurbishment and upgrade programmes. Robust demand from specialised markets including Motorsport, Medical equipment and Energy.
Financial Highlights · Revenue up 26% as businesses benefitted from strong demand and a good contribution from acquisitions; adjusted profit before tax up 39% to £44.9m. · Adjusted operating margin at record 19.6% reflecting focus on added value services and benefits from prior year cost reductions. · Strong underlying organic growth with revenue and adjusted operating profits up 17% and 31%, respectively, after adjusting for currency and acquisitions. · Free cash flow of £25.0m despite return of working capital to more normal levels. · Net cash of £12.2m (2010: £30.1m), after significant investment of £28.2m acquiring businesses and minority interests. · Full year dividend up 33% at 12.0p (2010: 9.0p).
http://www.investegate.co.uk/Article.aspx?id=201111210700134126S
last post continued! Altium Securities thinks there is a possibility that the shares could get a boost if the outlook statement follows the lead set by Caterpillar and Fenner in recent weeks. “US construction exposure is a potential concern, although recent news flow from Caterpillar and Fenner has been positive. In addition, only 23% of group sales come from America, of which approximately 50% is related to construction. In other words, only c.11.5% of group sales are exposed to the US construction market. Management has stated that this is an area where costs and working capital exposure can be swiftly cut if market conditions worsen,” the broker notes.
Monday kicks off with Diploma, the seals, fasteners and instrumentation provider, announcing its full-year figures. Market consensus is for a sharp increase in pre-tax profit to £44.1m, up from £26.7m a year ago, on turnover of £230m, up from £183.5m last year.
Outlook The Directors remain confident in the outlook for the remainder of the year, given the continuing strong overall trading performance. Looking further ahead, whilst recognising the global economic uncertainties and more demanding comparatives, the Group is confident of delivering "GDP-plus" levels of underlying revenue growth. To accelerate overall growth and build further value, we continue to pursue carefully selected, value-enhancing acquisitions, funded by the Group's strong balance sheet and free cash flow.
Financial Position The Group's cash flow generation has continued to be strong and, as anticipated at the Half Year, growth in working capital has now slowed and overall working capital should begin to fall in the final quarter of the year. As at 29 July 2011, the Group had moved back into a positive net cash position (31 March 2011: £0.9m net debt) and remains well funded. There have been no other material changes in the financial position of the Group in the period since the publication of the Half Year Report for the six months ended 31 March 2011.
SECOND INTERIM MANAGEMENT STATEMENT IN RESPECT OF YEAR ENDING 30 SEPTEMBER 2011 Diploma PLC, the international group of businesses supplying specialised technical products and services, is today issuing its second Interim Management Statement which relates to the period from 1 April 2011 to date. Group Trading Summary The strong underlying revenue and profit performance experienced in the first half of the year has continued into the second half of the year. Revenues for the nine months to 30 June 2011 were 28% ahead of the comparable period in 2010. After adjusting for currency effects and acquisitions, underlying revenues for the nine month period increased by ca. 18%; the underlying increase in third quarter revenues was 14% against a stronger prior year comparative. Operating margins have remained at similar levels to those experienced in the first half of the year, despite further incremental investment being made in headcount and operating resources to meet the significant increase in activity. Sector Trading Trading conditions remain consistent with those reported in the Interim Report in May 2011. In Life Sciences, year to date revenues are 37% ahead of the prior year comparable period. Good organic revenue growth has been boosted by currency benefits on translation and by the acquisitions of BGS and CMI in July and December 2010, respectively. In Seals, year to date revenues are 36% ahead of the prior year comparable period. Strong organic growth, in both the Aftermarket and Industrial OEM businesses, has been augmented by the acquisition of All Seals in September 2010. In Controls, year to date revenues are 14% ahead of the prior year comparable period with good organic growth, unaffected by currency or acquisitions.
http://www.investegate.co.uk/Article.aspx?id=201108010700094184L
Diploma is an unusual but highly successful company, supplying hundreds of specialist items to customers including oil producers, hospitals and contractors. Brokers expect full-year profits up by nearly 40% to about GBP45m and a total dividend of 9p against 7.8p last year, notes Midas in the Mail on Sunday. The dividend is progressive and the shares should increase as economic recovery gathers momentum. Existing investors should hold on. New investors could buy on weakness, Midas suggests.
update from midas.... http://www.dailymail.co.uk/money/article-1389462/MIDAS-BY-JOANNE-HART-Chi-Med-set-profit.html
Diploma, which supplies specialist technical equipment and services to a number of industries including the construction sector, revealed a rise in its pre-tax profits of 50%, while revenues climbed by nearly a third. We’ve been recommending Diploma for a while now, says the Independent, and our faith has certainly been rewarded with its share price more than doubling in the past 14 months. But the stock still appears to have upside, especially considering the fact that it could potentially be in line for promotion to the FTSE 250. Buy, it says.
Commenting on the results for the period, Bruce Thompson, Diploma's Chief Executive said: "The Group has delivered an excellent set of results, based on strengthening trends in revenue and operating profits in 2010 which have continued into 2011. The broad spread of markets and geographies served by the Group, combined with strong contributions from newly acquired businesses, provides the Board with confidence that the Group should continue to make progress in the second half of the year."