Diploma Regulatory News (DPLM)

17 Jan 2008 07:00

Diploma PLC17 January 2008 12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX TELEPHONE: +44 (0)20 7549 5700 FACSIMILE: +44 (0)20 7549 5715 FOR IMMEDIATE RELEASE 17 January 2008 DIPLOMA PLC INTERIM MANAGEMENT STATEMENT Diploma PLC, the international group of specialised distribution businesses is today issuing its first Interim Management Statement in accordance with the Disclosure and Transparency Rules, issued by the UK Listing Authority, in advance of the Company's AGM to be held today at 12.00 midday. This Statement relates to the period from 1 October 2007 to 31 December 2007 and includes the first quarter's trading. The Board is pleased to report that trading in the first quarter has continued to be positive in each of the Group's core business sectors. The contributions from the three acquisitions completed in August last year have been in line with our expectations and as a result, revenue has increased by over 20% on the comparable period last year. In Life Sciences, the businesses in Europe and Canada have shown steady progress, with the newly acquired AMT business in Canada making a substantial contribution to sales and operating profit. Sales in the Seals businesses have increased on the comparable period last year, despite the uncertain economic background in North America. There have been strong export led performances from the US and UK businesses and the M Seals business in Denmark has made a good contribution in its first full quarter in the Group. The Controls businesses, largely based in Europe, continue to benefit from the specific characteristics of the specialised markets in which they operate. In the UK, sales have increased strongly, reflecting both underlying growth and a good contribution from the newly acquired Cabletec business. In Germany, sales activity remains solid against a strong 2006 comparative when Filcon's connector deliveries peaked on certain major projects. The volatility in the foreign exchange markets continues to impact the Group on translation of the results of the overseas businesses to UK sterling. During the first quarter of the financial year the US$ was 5% weaker, relative to UK sterling, than the comparable period last year. Offsetting this, the C$ and the Euro were 10% and 6% stronger, respectively and therefore the net impact on sales and operating profit from these changes in exchange rates was not significant. The Group's financial position continues to be strong with net cash of £11.0m at 31 December 2007 and undrawn committed term facilities of £20.0m. Pursuant to the Sale and Purchase Agreement for the acquisition of Somagen Diagnostics Inc, dated 15 July 2004, the Group will acquire a further 11.2% of the outstanding shares in Somagen Diagnostics Inc from the minority shareholders for consideration of £3.7m, following the exercise of put/call options, agreed at the time of acquisition in July 2004. On completion of this transaction later this month, the Group's shareholding in Somagen Diagnostics Inc will increase from 80% to 91.2%. There have been no other significant changes in the position of the Group in the period since the publication of the Annual Report for the year ended 30 September 2007. At this stage, the Board believes it is making good progress towards achieving its expectations for the full year. Notes: This Interim Management Statement, which is based upon unaudited management accounts, has been prepared solely to provide additional information to the shareholders of Diploma PLC in order to meet the requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied on by any other party, for other purposes. Certain statements made in this Statement 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. The next update on trading is expected to be issued as part of the Half Year results for the six months ending 31 March 2008, which are expected to be released on 12 May 2008. A copy of this Statement, together with further information about Diploma, may be viewed on its website at www.diplomaplc.com For further enquiries please contact: Bruce Thompson, Chief Executive Officer 020 7549 5700 Nigel Lingwood, Group Finance Director 020 7549 5705 Ian Seaton, Bankside Consultants 020 7367 8891 NOTE TO EDITORS: Diploma PLC is an international group of specialised distribution businesses operating in three sectors: Life Sciences - suppliers of consumables, instrumentation and related services for research, environmental and clinical applications. Principal companies are Anachem and the a1-envirosciences group in Europe and Somagen and AMT in Canada. Seals - Suppliers of hydraulic seals, kits and components for heavy mobile machinery and industrial applications. Principal companies are the Hercules Fluid Power Group in North America and FPE and M Seals in Europe. Controls - Suppliers of specialised wiring, connectors and control devices for technically demanding applications. Principal companies are the IS-Group in the UK and US, Sommer Filcon in Germany and Hawco in the UK. Within each of these sectors, the Diploma businesses serve industry segments with long term growth potential and with the opportunity for sustainable superior margins through the quality of customer service, depth of technical support and value adding activities. This information is provided by RNS The company news service from the London Stock Exchange