Diploma PLC (LON:DPLM) shares were higher on Wednesday as the technical products supplier said it expects increased revenue growth in its first-half, thanks to strong conditions in many key markets and geographies.
In a trading update ahead of its half-year results due on 14 May 2018, the FTSE 250-listed firm said it expects first-half group revenues to be 8% higher than the same period last year despite a 4% currency headwind from the strengthening pound.
The group added that, at constant exchange rates, revenue is expected to increase by 12% with acquisitions completed during the last 12 months contributing 5% and underlying growth 7%.
Diploma said it has a robust balance sheet with net cash funds in excess of £16.0mln expected as at the end of March.
The company's statement said: “The Group has continued to trade robustly in the first half of the year supported by strong market conditions in many of its key markets and geographies.”
It added: “During the first half, working capital has increased substantially to support the much stronger trading environment and is likely to reach its seasonal high-point at 31 March 2018. The Group continues to have a healthy pipeline of acquisition opportunities.”
The group confirmed that Richard Ingram will takeover as Diploma's new chief executive officer on 8 May 2018, replacing long-serving boss Bruce Thompson.
In afternoon trading, Diploma shares were 2% higher at 1,141p.