Diploma’s (DPLM) previous chief executive held the post from 1996 until 2018, and it would seem he has left a long shadow. The group’s recent trading update was accompanied by a note saying boss Richard Ingram would be leaving the group with immediate effect, despite only taking up the role in May.
The company is keeping schtum on the reasons for his departure, save for saying a change was “in the best interests of the company”. Ordinarily, such a quick departure might be indicative of deeper problems, but analysts seemed unfazed by the announcement. Peel Hunt even went as far as to praise the board for taking swift action. Non-executive chairman John Nicholas will take over until the board finds a successor.
What's more, the group’s update for the year to September predicts revenues will grow by around 7 per cent, ahead of analyst expectations. The announcement prompted a slew of forecast upgrades and a 3 per cent jump in the share price on the morning of its release.
During the first half, sterling appreciation had been an obstacle for the group, putting pressure on revenues, but this has eased during the latter half of the year, providing a complement to strengthening growth in the controls and seals businesses. The two divisions – which accounted for a combined 71 per cent of revenues at the half-year – grew at around 6 per cent apiece during the full year. Life sciences lagged slightly behind with 4 per cent growth, but this was partly due to timing issues with capital projects and should recover in the first quarter of the next financial year, management says.
