In an update for its current year ending 30 September, the technical products and services group said full-year revenues were expected to grow by 13% while operating margins were also predicted to be “modestly ahead”.
READ: JPMorgan starts Diploma with ‘overweight’ rating, prefers to Electrocomponents started as ‘neutral’
Underlying revenues in the group’s life sciences and controls businesses were expected to increase by 7% in the year, while the Seals arm was predicted to report a 1% increase year-on-year as the aftermarket business offset a slowdown in trading in the industrial original equipment manufacturer seals.
Diploma added that Virginia Sealing Products, which it acquired for £56mln in July, had so far made an “encouraging contribution” to the group and they were excited by its future growth potential.
“Diploma continues to have a good year. We are on track to deliver strong underlying growth with positive contributions from acquisitions and modest margin progression”, said company chief executive Johnny Thomson.
He added that despite “uncertain global markets”, the firm’s business model remained “resilient and successful”.
Diploma will report its results for the year on 18 November.