Financial Highlights
Businesses acquired during the past year added 10% to Group revenues; currency movements reduced revenues by 2%; underlying revenue growth of 2%.
Adjusted profit before tax and EPS both increased by 6% to £29.3m and 18.6p, respectively.
Free cash flow decreased by 5% to £12.4m, after £2.0m increase in capital expenditure.
Acquisition expenditure of £35.0m, over double that completed in the full 2014 financial year.
Net debt of £14.9m at the end of March 2015.
Interim dividend increased by 7% to 5.8p per share reflecting confidence in Group's growth prospects.
Operational Highlights
Seals revenues increased by 8% on an underlying basis, benefitting from strong demand particularly in North American markets.
Life Sciences revenues increased by 1% on an underlying basis with the Canadian Healthcare businesses facing tougher markets as hospitals increased their focus on cost control.
Controls revenues decreased by 5% on an underlying basis reflecting softer European industrial markets and against strong prior year comparatives.
Acquisitions of TPD in Ireland and the UK and the Kubo Group in Switzerland and Austria extended the scope of the Healthcare and Seals businesses respectively in Europe and open up new growth opportunities.
Commenting on the results for the period, Bruce Thompson, Diploma's Chief Executive said:
"Diploma has delivered a robust performance for the first half with a significant contribution from acquisitions completed during the past year. This has allowed the Group to report growth in earnings and dividends, despite the challenges caused by weaker European industrial markets and volatile currency movements.
The Group has a strong and proven business model which aims to deliver "GDP plus" organic revenue growth, with carefully selected acquisitions accelerating the growth to the target double-digit level. While headwinds to organic growth remain in certain key markets, the acquisition pipeline remains encouraging and the Group will continue to focus on bringing these opportunities to completion."
