Diploma H1 revenues boosted by weak pound

Diploma said it expected group first half revenues to be around 20% ahead of the comparable period, boosted by the impact of the “substantial depreciation” in UK sterling.

The group said it continued to trade in line with expectations. At constant exchange rates, revenues are expected to increase by around 6% with acquisitions completed during the last 12 months contributing around 1% net.

Diploma said it expected to report underlying organic growth of 5%.

"In the life sciences sector, underlying revenues are expected to be slightly up on the comparable period. This reflects strong consumable and service revenues but weaker sales of capital equipment against a strong prior year comparative," Diploma said.

"In the seals sector, revenues are also expected to be slightly ahead of the comparable period with strengthening revenues in the aftermarket business in North America being offset by slower Industrial markets and reduced demand in certain International end markets."

"In the controls sector, underlying revenues are expected to be significantly above the comparable period driven by a combination of new project activity, recovery in some end user markets and continuing focus on developing new sales opportunities."

Diploma said its operating margin remained in line with expectations and broadly in line with the comparable period last year.

At 31 March 2017, it expected to hold more than £10m in net cash and a £50m revolving credit facility.