Diploma reports a robust performance in the second half and says it is on track to meet full year expectations.
Reported revenues for the year ending 30 September 2016 are expected to increase by ca. 14%, with acquisitions incrementally contributing ca. 8% to Group revenues.
Translational currency effects are expected to add ca. 4% to Group revenues, driven by the substantial decline in UK sterling since the Brexit decision in June 2016. On an underlying basis, after adjusting for the impact of acquisitions and currency effects, Group revenues for the year are expected to increase by ca. 2%.
In Life Sciences, underlying revenue growth for the full year is expected to be ca. 3%. After strong capital equipment sales in the first half of the year, revenue growth in the second half has slowed as anticipated against more demanding comparatives.
In Seals, underlying revenue growth is expected to be ca. 1%. Trading activity in North America continues to be challenging, with modest growth in the core seals businesses offset by reduced revenues in the more cyclical excavator kit business.
A robust trading performance by the European Seals businesses offset weaker demand in Australia.
In Controls, market conditions have improved for the Interconnect businesses, particularly in the Aerospace and Defence sectors. This second half performance, together with a strong contribution from the Specialty Fasteners businesses, means that Controls is expected to report underlying growth of ca. 3% for the year.