March 24 British industrial wiring and component
supplier Diploma Plc said a strong pound would hurt its
first-half results and revenue growth would halve from a year
Shares in Diploma, which supplies products ranging from
hydraulic seals to components for Formula 1 cars, fell as much
as 14.5 percent on Monday morning to become the biggest
percentage loser on the London Stock Exchange.
The company said group revenue was likely to grow about 5
percent for the six months ending March 31.
Diploma had posted a 10 percent revenue growth in the
"Significant movements in exchange rates have adversely
impacted the results of the overseas businesses when translated
into UK sterling," the company said in a trading update on
The pound has risen 1.85 percent against the dollar
from Sept. 30 through Friday.
Diploma, which gets about three-quarters of its revenue from
outside the UK, also said a strengthening pound will continue to
impact its results.
The company said it expects revenue from its controls
business to increase about 10 percent on an underlying basis,
helped by sales in UK and Germany.
Diploma estimates first-half adjusted profit before tax to
be similar to year-ago levels.
The company reported revenue of 139.7 million pound ($230.43
million) and a pretax profit of 23.8 million pounds in the six
months ended March 2013.
Diploma shares were down nearly 11 percent at 682.5 pence at
($1 = 0.6063 British Pounds)
(Reporting by Tasim Zahid in Bangalore; Editing by Joyjeet Das)