Financial Highlights
Underlying revenue and adjusted operating profit both increased by 8% respectively, after adjusting for currency effects and acquisitions.
Significant strengthening in UK sterling limited growth in reported revenue and adjusted operating profit to 7% and4% respectively.
Adjusted operating margins remained robust at 18.5%, despite transactional currency effects in Canadian and Australian Healthcare businesses.
Adjusted profit before tax and EPS increased by 3% and 4% respectively to £56.2m and 36.1p.
Free cash flow increased by 20% to £37.8m as Group's Investment for Growth programme nears completion.
Acquisition expenditure of £16.5m;net cash of £21.3m at the end of year.
Total dividend increased by 8% to 17.0p per share reflecting confidence in Group's growth prospects.
Operational Highlights
Strong underlying performance across all three Sectors.
Life Sciences revenues increased by 9% on an underlying basis, with stronger consumable revenues offsetting weaker capital equipment and service.
Seals revenues increased by 7% on an underlying basis reflecting strong performance from Industrial OEM businesses; good second half recovery in Aftermarket businesses in the US, following disruption from severe winter.
Controls revenues increased by 8% on an underlying basis with strong growth in Interconnect, driven by improved markets in the UK and Germany, particularly Civil Aerospace, Energy and Motorsport.
Acquisition spend increased strongly to £16.5m in 2014 financial year, extending the Group's businesses into new product and market segments.
Acquisition of Technopath Distribution ("TPD"), shortly after the year end, extends the Group Healthcare businesses into Ireland and the UK and brings acquisition spend to £26m in calendar year 2014.
Commenting on the results for the period, Bruce Thompson, Diploma's Chief Executive said:
"The Diploma businesses have made good progress this year benefiting from greater confidence in their principal markets with strong underlying revenue growth in each of the Group's Sectors. Given the strong comparatives and the uncertain macroeconomic backdrop, the Board expects growth to trend this year towards our target "GDP plus" rates.
The Group has a strong and proven business model, together with a good geographic spread of activities, strong free cash flow and balance sheet. With an improving acquisition environment and a good pipeline of opportunities, prospects for acquisition activity in 2015 are encouraging. This provides the Board with confidence that further progress will be made in the new financial year."
