Diploma revenues on the rise despite fluctuations in forex

 
Joseph Millis
TECHNICAL products and services company Diploma yesterday reported a rise in revenue in the first quarter of its financial year, despite currency fluctuations.

The FTSE 250-listed firm said group revenue for the first quarter to 31 December rose four per cent year-on-year, in line with its expectations and on-track with its guidance for underlying growth.

On a constant currency basis, however, revenue for the group rose 14 per cent year-on-year.

The businesses acquired during the past year contributed 12 per cent to revenues, although these were reduced by two per cent when these were converted into pound sterling.

The benefit from the strong appreciation in the US dollar was more than offset by further depreciation in Diploma’s other trading currencies.

Operating margins remained in-line with those achieved in the comparable period last year, with the anticipated weaker margin in the life sciences businesses (transactional currency effects) largely offset by stronger margins earned in the Seals businesses.

For its controls division, revenue fell three per cent due to weaker demand in Europe, though the group said signs of improvement have been seen since the turn of the year.

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