Business
Half Year Trading Update
Half Year Trading Update.
About this update from Diploma Plc
[{"type":"text","content":"\n \nRNS Number : 0784U Diploma PLC 27 March 2019 \n\n \nDIPLOMA PLC\n 12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX\nTELEPHONE: +44 (0)20 7549 5700\nFACSIMILE: +44 (0)20 7549 5715\n \nFOR IMMEDIATE RELEASE\n \n27 March 2019\n \n \nDIPLOMA PLC\n \nHALF YEAR TRADING UPDATE\n \nROBUST FIRST HALF TRADING\nON TRACK FOR GOOD PROGRESS IN FY2019 IN LINE WITH EXPECTATIONS\n \nDiploma PLC, the international group of businesses supplying specialised technical products and services, today issues a trading update for the six months ending 31 March 2019, ahead of entering its close period.\n \nGroup\nTrading has remained robust with good underlying growth across all Sectors, particularly within Controls. Underlying revenues are expected to be up 5% on the prior period. Reported revenues are expected to be up 10% at constant exchange rates, including a 4% contribution from acquisitions, net of disposals.\n \nOperating margin is expected to be in line with the comparable period last year.\n \nLife Sciences\nUnderlying and reported revenues are expected to be up ca. 5% with good growth across most business areas, particularly in Canadian Surgical and Endoscopy and Australian Diagnostics.\n \nSeals\nUnderlying revenues are expected to be up ca. 4%. North American Seals revenues showed solid underlying growth in the second quarter against a very strong comparative. This offset a weaker first quarter which, as previously announced, was impacted by initial delivery delays in Industrial OEM, following the new ERP implementation. International Seals has continued to deliver strong underlying growth.\n \nControls \nUnderlying revenues are expected to be up ca. 8% with strong growth from deeper penetration into the Aerospace market, supported by generally positive end markets. Good initial contribution from the recent acquisitions of FS Cables and Gremtek. \n \nFinancial position \nThe Group's balance sheet remains strong. Working capital at 31 March 2019 will increase to ca. 17% of revenues reflecting increase in inventories...