Diploma revenue rises on acquisitions

Wed Jan 16, 2013 2:53am EST

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Jan 16 (Reuters) - Technical products supplier Diploma Plc reported a 14 percent rise in sales in the first quarter, boosted by acquisitions.

Excluding acquisitions and currency effects, sales increased 5 percent in the quarter ended Dec. 31.

The growth was led by Diploma's Life Sciences unit, which serves the healthcare and environmental markets. Sales in the unit rose 17 percent, helped by the acquisition of 80 percent of Diagnostic Solutions in June last year.

The seals business -- which supplies hydraulic seals, gaskets, cylinders, components and kits for heavy machinery and industrial equipment -- posted revenue growth of 12 percent.

The company also warned that conditions across its Controls business -- which supplies wiring, connectors, fasteners to the aerospace and defence industries and to teams competing in the Formula One, IndyCar and Nascar racing series -- remained challenging due to the economic turmoil in Europe.

The United Kingdom and Continental Europe are the unit's largest markets.

Shares in Diploma closed at 538 pence on Tuesday on the London Stock Exchange. They gained 63 percent through last year.

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