Acquisitions, forex boost Diploma FY profits

Technical products supplier Diploma said full year pre-tax profits rose 4% to £54m on the back of a rise in revenue to £382.6m from £333.8m as acquisitions and currency movements provided a strong tailwind.

The total dividend jumped 10% to 20p a share.

Acquisitions completed during the year contributing £16.3m and currency movements boosting the revenues of overseas businesses when translated into sterling by £13.8m, when compared with last year, the company said.

“After adjusting for the contribution from acquisitions completed both this year and last year and for currency effects on translation, group revenues increased by 3% on an underlying basis,” Diploma said.

“Steady underlying revenue growth of 4% in both the Life Sciences and Controls Sectors more than offset a weaker performance from the Seals Sector where underlying revenues increased by 1%.”

Chief executive Bruce Thompson said: “Despite the current macro-economic uncertainty in the global environment, the board remains confident that the group will continue to make further progress in the coming year from a combination of steady GDP plus organic growth and a strong and successful acquisition programme."