Diploma YTD underlying revenues grow

(Sharecast News) - Technical products and services firm Diploma said on Wednesday that its trading performance had been "strong" in the first quarter of the year, with underlying revenues growing as all of its sectors started the year off well.
Diploma stated underlying revenue growth was 16%, driven by organic revenue initiatives and continued strong demand, while reported revenue growth was 28%, reflecting net contributions from acquisitions and two small disposals completed in 2021.

The FTSE 250-listed firm said its controls unit witnessed very strong growth across the sector, with successful end segment diversification and a continued excellent contribution from Windy City Wire, while its seals division reported strong, broad-based growth and the beginning of market share gains in the North American aftermarket, and its life sciences wing delivered "a positive performance", with underlying revenue growth moderating in the first half, as expected.

Diploma added that it continues to expect underlying growth to moderate as comparators become "more demanding".

However, while Diploma acknowledged it was still early in the year, the group said its "strong first-quarter performance" increased its confidence in delivering full-year guidance.

"We remain very positive about our prospects, and are well-positioned to deliver attractive long-term growth at sustainably high margins," said Diploma.