Diploma makes 'strong start' to 2021

Technical products and services provider Diploma said on Wednesday that it had made a "strong start" to the year, with improved trends in underlying trading across all three of its sectors in the first quarter.

Diploma stated it had delivered underlying revenues in line with 2019's pre-Covid levels, reflecting strong execution of its organic growth initiatives, while reported group revenues in the three months ended 31 December 2020 increased by 24% year-on-year, driven by an "excellent" quarterly contribution from the recently acquired Windy City Wire.

The FTSE 250-listed firm's Life Sciences unit delivered "strong" underlying growth of 8%, while its seals and controls divisions improved to -2% and -1%, respectively.

Looking forward, Diploma did note that uncertainties remained around the duration and impact of the Covid-19 pandemic.

"However, while the pandemic may modestly affect Q2 revenues, we are pleased with the group's trading performance," said Diploma.

"Excluding the contribution from the acquisitions completed in the quarter, full-year expectations for the underlying business remain positive and unchanged."

As of 0855 GMT, Diploma shares were up 5.44% at 2,248.0p.