Diploma PLC (DPLM) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome everyone to our trading update. Thanks for joining. I'm here as usual with Chris. I'll say a few words of summary and then we'll move swiftly on to Q&A. First, a few words on our performance. It's been a strong performance in quarter three, adding to our long-term track record of sustainable quality compounding. For the full year, we're upgrading our organic growth from 8% to 10%. And year-to-date, our organic growth grew by 10%. In controls, we continue to have great end-market support, aerospace, defense, energy, etc. And we're making good progress with market share, too. Windy City is doing very well in data centers. Peerless continues to do very well in aerospace. In life sciences, we continue to deliver well, consistent with the first half. And importantly, we're now seeing sequential improvement in seals as the second half progresses. Reported revenue for the year to date was 12%, 4% from acquisitions partly offset by FX. And operating margins are still strong in line with our full year guidance of 22%. Now a few words on acquisitions. We welcomed two new exciting businesses to the group, spending nearly 40 million at a blended eight times multiple. Hagenson we acquired. last month for 11 million pounds. It's a quality sealing solutions business, which will combine well with our existing M-seals business in Denmark. In life sciences, we acquired Alpha Laboratories for 28 million pounds. It's an important platform getting us into high-growth IVD end markets in the UK. It specializes in screening for bowel cancer and disease. And importantly, it allows us to bring our extensive IVD experience from elsewhere into the UK market. These businesses will contribute well to our future organic growth and at great returns. Overall, the acquisition...