Diploma profit rises but sees signs of slowdown industrial seals market

13th May 2019 07:27

(Sharecast News) - Diploma posted a rise in first-half profit on Monday following solid trading across all of its sectors as it sounded an upbeat note on the outlook but cautioned over a slowdown in the industrial seals market.Adjusted pre-tax profit was up 13% during the half to £45.5m as revenue rose 11% to £260.4m. Adjusted earnings per share increased 15% to 30.5p and the interim dividend was lifted by 10% to 8.5p a share.In the life sciences division, underlying revenue were up 5%, with a good performance across healthcare businesses, while revenue in the seals segment were 4% higher despite short-term challenges in North America.In the control division, there was underlying revenue growth of 9%, with some Brexit-related customer stock building in the first half.The company said there were some early signs of slower activity in the industrial seals market, but that it was optimistic about its acquisition pipeline and is on track to meet its full-year revenue and operating profit expectations.Chief executive officer Johnny Thomson said: "Diploma has delivered another good performance in line with our expectations. Despite macroeconomic uncertainties, the group remains on track to deliver good growth in revenues with modest margin progression for the full year."Acquisitions remain an integral part of the group's growth strategy and although opportunities are very competitive, we remain optimistic about acquiring some quality businesses as the year progresses."Having visited our businesses in the last few months, I continue to be impressed by the quality of our teams and their commitment to excellent customer service. I feel confident that the group will deliver another strong financial performance this year and continue its excellent track record of shareholder value creation."