News Column

Diploma shrugs off strength of the pound to increase earnings

May 13, 2014

CITY A.M. REPORTER



DIPLOMA, which makes industrial wiring systems and components, yesterday posted a two per cent rise in first-half pre-tax profit, despite the strength of sterling affecting overseas results in the industry.


Diploma, a supplier of components to Formula One cars, said pre-tax profit rose to £24.2m in the six months to the end of March from £23.8m a year earlier.


Diploma said growth was led by strong sales in the UK and Germany.


The company reported higher revenues across all three of its business divisions. Revenue at its controls division, which supplies the aerospace, defence and motorsport industries, rose 11 per cent.


First-half revenue at Diploma, which derives about three-quarters of its revenue from outside the UK, rose six per cent to £148.6m, even as a strong pound continued to weigh on its results. Peers with overseas business including Melrose and Fenner have also been hit by currency movements.


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Source: City A.M. (UK)


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