UPDATE 1-Diploma Q1 rev rises on life sciences business

* Q1 revenue up 16 pct

* Expects growth rates to slow

Jan 17 (Reuters) - Technical products supplier Diploma Plc posted a 16 percent jump in first-quarter revenue, driven by higher demand in its life sciences business and the acquisition of Carsen Medical, and said it made an encouraging start to the year.

Diploma, which bought healthcare business Carsen Medical in 2010 and merged with AMT's endoscopy business, expects growth rates to slow going forward as it enters a period of tougher comparatives.

Though October-December is the quietest quarter for the FTSE-250 company, which supplies hydraulic seals, cylinders, specialized wiring and connectors, it saw revenue in the life sciences business growing 27 percent.

Diploma recently acquired J Royal Co, which provides an extension to the company's developing industrial seals business in North America.

The company also acquired a 10 percent stake in Kunshan J Royal Precision Products, a related Chinese supplier.

Diploma shares, which have gained 25 percent in the last three months, closed at 384.3 pence on Tuesday on the London Stock Exchange.