Diploma delivers 'strong' Q1 trading performance

18th Jan 2023 09:42

(Sharecast News) - Technical products and services firm Diploma said on Wednesday that its first-quarter trading performance had been "strong", in line with its full-year expectations.

Diploma stated organic growth was up 10%, with strong growth in its seals and life sciences unit, while reported revenues were 30% higher thanks to an 11% contribution from "high-quality acquisitions" and a 9% foreign exchange benefit.

The FTSE 250-listed group also noted that it had a "strong operating margin", in line with expectations.

Looking ahead, Diploma added that while it was "mindful" of the current uncertain economic outlook, its business model remained "resilient".

"This, together with the strong Q1 performance, underpins our continuing confidence in delivering our full-year guidance: mid-single digit organic revenue growth (likely to be first-half weighted); acquisitions to add circa 6% to reported growth; and, a strong, resilient operating margin of 18-19%," said Diploma.

"The group's excellent long-term track record of compounding growth demonstrates the strength of the business model. We remain focused on executing our strategy of building high-quality, scalable businesses for organic growth and we are confident in our long-term prospects."

As of 0940 GMT, Diploma shares were up 0.63% at 2,866.0p.

Reporting by Iain Gilbert at Sharecast.com