StockMarketWire.com - Technical products and serves group Diploma said it expected to deliver 'strong' performance in the year ahead after reporting a fall in annual profit as acquisition-related costs hurt performance.

For the year ended 30 September, pre-tax profit fell to £66.7m from £83.5m as revenue slipped 1% to £538.4m year-on-year.

Acquisition-related costs rose to £17.3m from £13.1m.

Its controls business, which was most exposed to the UK economy as well as some more structurally impacted end segments, saw revenue fall 12% to £156.6m.

'We expect to deliver another strong performance in the year ahead with a return to underlying mid-single digit growth and historic margins, in line with market expectations,' the company said.

'Growth in revenue and margin progression are expected to be H2 weighted,' it added.

Story provided by StockMarketWire.com