Diploma eyes improved full-year revenue

26th Sep 2013 07:25

Technical products and services provider Diploma said it expects revenues for the year to be 10 per cent higher than last year after a strong performance from Life Sciences and improving underlying growth in Seals.The FTSE 250 group, which makes technical products ranging from hydraulic seals to electrical scalpels, said after adjusting for currency effects and acquisitions, underlying revenues for the year are expected to increase by around 4%. The underlying increase in fourth quarter revenues is expected to be 6%, similar to the third quarter increase. Diploma said trading conditions in each of its sectors remains consistent with the update in July.Group operating margins are expected to be around 19%, largely reflecting the impact of the phasing of costs incurred on the group's Investment for Growth programme, it explained. Cash flows remain robust with the year-end cash expected to be £20m. "Acquisitions remain an important part of the group's growth strategy, with the acquisition pipeline continuing to improve and good progress being made on advancing acquisition opportunities," Diploma said. CJ