Financial Highlights

Revenue £382.6m +15%
Adjusted operating profit1 £65.7m +9%
Adjusted operating margin1 17.2%
Adjusted profit before tax1,2 £64.9m +9%
Profit before tax £54.0m +4%
Free cash flow3 £59.0m +46%
1Before acquisition related charges.
2Before fair value remeasurements and gain on disposal of assets.
3Before cash payments on acquisitions and dividends.

Chairman's Statement

"I am pleased with the good progress achieved this year against a background of challenging economic conditions."

John Nicholas Chairman

Principal corporate objectives

Achieve double-digit growth in adjusted EPS over the business cycle View KPI
Generate TSR growth in the upper quartile of the FTSE 250 View KPI
Deliver progressive dividend growth with two times dividend cover View KPI

Chief Executive's Review

"The Group’s strategy, consistently applied, delivers strong growth in earnings and shareholder value."

Bruce Thompson Chief Executive

Strategic objectives

Generate stable GDP plus organic revenue growth over the business cycle Maintain stable attractive margins Accelerate growth through carefully selected value enhancing acquisitions Generate consistently strong cash flow to fund growth strategy and dividends Create value by consistently exceeding 20% ROATCE

Sector Overview

Life Sciences

% of Group revenue 29 %

Seals

% of Group revenue 44 %

Controls

% of Group revenue 27 %

Life Sciences

Geography1
  • 57% Canada
  • 30% Europe
  • 13% Rest of World
Customers
  • 84% Clinical
  • 10% Utilities
  • 3% Chemical & Petrochemical
  • 2% Life Sciences Research
  • 1% Other Life Sciences
Products
  • 72% Consumables
  • 18% Instrumentation
  • 10% Service
362 Employees
Principal businesses
Diploma Healthcare Group ("DHG")
a1-group

Seals

Geography1
  • 56% North America
  • 34% Europe
  • 10% Rest of World
Customers
  • 39% Industrial OEMs
  • 24% Heavy Construction
  • 19% Other Industrial
  • 13% Industrial Aftermarket
  • 3% Dump & Refuse Trucks
  • 2% Logging & Agriculture
Products
  • 38% Seals & Seal Kits
  • 18% Cylinders & Other
  • 16% O-rings
  • 11% Filters
  • 11% Gaskets
  • 6% Attachment Kits
803 Employees
Principal businesses
Hercules Fluid Power Group ("HFPG")
FPE Seals
Kentek
M Seals
Kubo
WCIS

Controls

Geography1
  • 60% UK
  • 31% Continental Europe
  • 9% Rest of World
Customers
  • 32% Industrial
  • 29% Aerospace & Defence
  • 15% Food & Beverage
  • 15% Motorsport
  • 5% Energy & Utilities
  • 4% Medical & Scientific
Products
  • 42% Wire & Cable
  • 19% Fasteners
  • 13% Equipment & Components
  • 12% Connectors
  • 10% Control Devices
  • 4% Other Controls
415 Employees
Principal businesses
IS-Group
Filcon
Cablecraft
Clarendon
Hawco group
1 By destination. Close

Finance Review

"The Group generated very strong free cash flow in 2016 which increased to £59.0m."

Nigel Lingwood Group Finance Director
  • 17.2% Adjusted operating margin
  • £59.0m Free cash flow
  • 21.1% ROATCE