- Technical product supplier Diploma said it expected first-half reported revenues to grow 10% and modest margin progression for the full year amid robust performance within its controls division.

'Trading has remained robust with good underlying growth across all Sectors, particularly within Controls, the company said. Underlying revenues are expected to be up 5% on the prior period,' the company said

Reported revenues were expected to be up 10% at constant exchange rates, including a 4% contribution from acquisitions, net of disposals.

For the full-year, operating margin was expected to be in line with the comparable period last year.

In its controls division, underlying revenues were forecast to be up nearly 8% with strong growth from deeper penetration into the aerospace market, supported by generally positive end markets. While the recent acquisitions of FS Cables and Gremtek had made a good initial contribution, the company added.

The Group's balance sheet remained strong with working capital at 31 March 2019 increasing to about 17% of revenues, reflecting increase in inventories to meet strategic priorities.

'Diploma's performance in the first half has been robust. Despite the global macroeconomic uncertainties, the Group remains on track to deliver good growth and modest margin progression for the full year in line with expectations,' said Johnny Thomson, who became Group CEO in February 2019.

At 8:07am: [LON:DPLM] Diploma PLC share price was +4p at 1425p

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