Diploma rises on solid news and acquisition pipeline
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Technical products and services supplier Diploma (LON:DPLM) has announced that trading has been strong so far in the second half of its financial year. Revenues for the year ended 30th September are expected to be 7% higher than the prior year as currency headwinds eased during the latter part of the year.
This result has been helped by a strong performance in North American markets, where underlying seal sales went up by roughly 11%. Overall operating margins have been in line with expectations and will most likely be very similar to those reported last year.
Management also said that the firm’s acquisitions pipeline remained healthy following the purchase of FS Cables last week for an initial cash consideration of £17 million.
Shares in Diploma had risen by 2.46% as of 1,398.65p (as of 13:10 BST).
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