Diploma plc

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search
Diploma
Public
Traded asLSEDPLM
IndustryTechnical products and services
Founded1931
HeadquartersLondon, United Kingdom
Key people
John Nicholas, Executive Chairman
Revenue£485.1 million (2018)[1]
£73.2 million (2018)[1]
£54.4 million (2018)[1]
Websitewww.diplomaplc.com

Diploma PLC is a leading British-based business supplying specialised technical products and services. It is a constituent of the FTSE 250 Index and operates multiple businesses in three main sectors - life sciences, seals and controls[2].

Their entry into these sectors was mainly through acquisitions, starting in the UK and increasing their reach into other markets over time. They now operate in Europe, North America, Australia and China. European business is responsible for 48% of revenues, North America business is responsible for 40% of revenues, and Australia and China business is responsible for 12% of revenues[2].

Their market cap is just above £1bn with a 16% per annum average dividend growth over the last 10 years and 18 years of consecutive dividends[3].

History[edit]

The company, which was founded in 1931, was first listed on the London Stock Exchange in 1960 and until the 1980s was a market leader in electronic component distribution, building products and special steels.[4] The electronic component distribution business (SEI Macro) was sold in 1999,[5] the building products business (Robert Lee) was sold in 2000[6] and the special steels business (Henry Whitham) was sold in 2001.[7]

It was announced in August 2018 that CEO Richard Ingram will be stepping down after four months in charge, with John Nicholas acting as executive chairman in interim charge.[8][9]

Operations[edit]

The company now has operations in North America, Europe, Australia, New Zealand, New Caledonia, and China and is organised as follows:[10][11]

  • Life sciences (28% share of revenue)
  • Seals (43% share of revenue)
  • Controls (29% share of revenue)

Life Sciences[edit]

Diploma PLC's Life Sciences sector can be broken down into two main industry categories: Healthcare and Environmental.

In the Healthcare category, operated by Diploma Healthcare Group, they provide instruments for clinical diagnosis, products and services for blood, tissue, and other sampling, and medical equipment, products and services for hospitals, GI/Endoscopy units and clinics. This category makes up 85% of revenues for the Life Sciences sector.[12]

In the Environmental category, operated by a1-group, they provide analysing equipment, emissions monitoring devices, and containment enclosures. This category makes up 15% of revenues for the Life Science sector.[13]

In 2017 (year ended 30 September) they reported £125.9m in Life Sciences revenue. In 2018 they posted £134.7m for Life Sciences.[14]

Seals[edit]

Diploma PLC's Seal sector can be divided into three main categories: North America – Aftermarket, North America – Industrial OEM, and International.

In the North American Aftermarket Seals category, Hercules operates a delivery business for seals and kits used to repair hydraulic cylinders. HKX operates an excavator hydraulic kit business, which includes assembling and delivering kits.[15] This category makes up 31% of revenues.[16]

In the North American Industrial OEM Seals business, J Royal, RT Dygert, and All Seals supply seals, O-rings and other custom parts to OEM customers across the U.S. This category makes up 29% of revenues.[16]

Diploma's International Seals division is made up of the following companies: Kubo Group, FPE Seals, M Seals, Kentek, and WCIS. Together they supply custom moulded and machined parts including seals, gaskets, and filters, as well as other hydraulic cylinder parts.[17] This category makes up 40% of revenues.[16]

In 2017 (year ended 30 September) the company reported £195.3m in Life Sciences revenue. In 2018 they posted £208m for Seals.[16] 

Controls[edit]

Diploma's Control sector is split into three different categories: Interconnect, Specialty Fasteners, and Fluid Controls.

The Interconnect category has multiple businesses that operate out of this division, including IS-Group, FS Cables, Cablecraft, and Filcon. They supply wiring and cable components for use in a variety of industries. This makes up 59% of revenues for the Controls sector.

The Specialty Fasteners category is operated by Clarendon Specialty Fasteners. They supply fasteners, such as bearings, bolts, clamps and rivets, to aircraft, motorsport and aerospace markets.[18] This makes up 21% of revenues for the Controls sector.[19]

Fluid Controls in the third category in the Control Sector, operated by Hawco and Abbeychart. The various devices to the food and beverage and industrial markets, including temperature control devices and beverage dispensing machine components.[20] This makes up 20% of revenues for the Controls sector.[19]

In 2017 (year ended 30 September) they reported £130.7m in revenue while in 2018 they reported £142.4m for Controls.[19]

References[edit]

  1. ^ a b c "Annual Report 2018" (PDF). Diploma. Retrieved 17 March 2019.
  2. ^ a b "Group at a Glance | Diploma PLC". www.diplomaplc.com. Retrieved 2019-07-01.
  3. ^ Miller, Cameron. "Diploma Plc - Enough To Seal The Deal?". Seeking Alpha.
  4. ^ "Diploma: Company History". Archived from the original on 2012-04-25. Retrieved 2011-10-18. Cite uses deprecated parameter |dead-url= (help)
  5. ^ SEI Macro sold to Avnet in £37.5m deal Electronics Weekly, 3 September 1999
  6. ^ "About Robert Lee Distribution". rlee.co.uk. Archived from the original on 15 June 2012. Retrieved 28 March 2015. Cite uses deprecated parameter |deadurl= (help)
  7. ^ Diploma sells Henry Whitham for 11.1 mln stg AFX UK Focus, 20 March 2001
  8. ^ Editorial, Reuters. "UPDATE 1-Diploma CEO steps down after four months in charge". U.S. Retrieved 2018-10-24.
  9. ^ "Board of Directors | Diploma PLC". www.diplomaplc.com. Retrieved 2018-10-24.
  10. ^ "At a glance". Diploma plc. Retrieved 3 April 2016.
  11. ^ Miller, Cameron M. (2018-04-09). "Diploma Plc - Enough To Seal The Deal?". Seeking Alpha. Retrieved 2019-04-23.
  12. ^ "Healthcare | Diploma PLC". www.diplomaplc.com. Retrieved 2019-04-23.
  13. ^ "Environmental | Diploma PLC". www.diplomaplc.com. Retrieved 2019-04-23.
  14. ^ "Life Sciences | Diploma PLC". www.diplomaplc.com. Retrieved 2019-04-23.
  15. ^ "North American Seals | Diploma PLC". www.diplomaplc.com. Retrieved 2019-05-03.
  16. ^ a b c d "Seals | Diploma PLC". www.diplomaplc.com. Retrieved 2019-05-03.
  17. ^ "International Seals | Diploma PLC". www.diplomaplc.com. Retrieved 2019-05-03.
  18. ^ "Specialty Fasteners | Diploma PLC". www.diplomaplc.com. Retrieved 2019-07-01.
  19. ^ a b c "Controls | Diploma PLC". www.diplomaplc.com. Retrieved 2019-07-01.
  20. ^ "Fluid Controls | Diploma PLC". www.diplomaplc.com. Retrieved 2019-07-01.

External links[edit]