Diploma increases its 2015 final dividend by 7%

DividendMax Ltd.

Diploma increases its 2015 final dividend by 7%

Financial Highlights

Revenue and adjusted operating profit increased by 9% and 6%, respectively.

Businesses acquired added 11% to Group revenues; currency movements reduced revenues by 3%; underlying revenue growth of 1%. 

Adjusted operating margins reduced by 40bps to 18.1% reflecting significant transactional currency effects in Healthcare businesses and initial dilution from acquired businesses.

Adjusted profit before tax and adjusted EPS both increased by 6% to £59.6m and 38.2p, respectively.

Free cash flow increased by 7% to £40.3m, after increase in capital expenditure to £4.3m. Net cash funds of £3.0m at the end of September 2015.

Acquisition expenditure of £37.8m, over double the amount spent in the prior year. Acquisition of WCIS (ca. £10m) shortly after year end.

Total dividend increased by 7% to 18.2p per share reflecting strong financial position and confidence in Group's growth prospects.

Operational Highlights

Life Sciences revenues increased by 4% on an underlying basis despite the Healthcare businesses facing tougher markets as hospitals increased their focus on cost control. 

Seals revenues increased by 4% on an underlying basis as industrial markets slowed in the second half of the year.

Controls revenues decreased by 5% on an underlying basis reflecting softer European industrial markets and strong prior year comparatives. 

Acquisitions of TPD in Ireland and the UK, Kubo in Switzerland and Austria and Swan Seals in the UK extended the scope of the Group's Healthcare and Seals businesses in Europe, opening up new growth opportunities.

Acquisition of WCIS for ca. £10m shortly after the year end, extends the Group's Seals business into Australia.

Commenting on the results for the year, Bruce Thompson, Diploma's Chief Executive said:

"The Group's strong and proven business model delivered robust growth this year, benefitting from a good contribution from acquisitions and despite adverse exchange rate movements. This balance is expected to continue into the coming financial year as the economic headwinds continue to constrain organic growth in the Group's principal markets in North America and Europe, but prospects for further acquisitions remain promising.

While the Board remains cautious on the current macroeconomic backdrop, we remain confident that the Group's resilient business model with a diverse geographic spread of activities and strong financial position, together with a more favourable environment for acquisitions will provide a good platform to deliver further growth in the coming year."

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