H1 revenue to rise 25 pct ... aided by acquisitions and better margins in all three divisions. ... Diploma forecast adjusted pretax profit for the year ending Sept. 30 to be materially ahead of the market consensus.A post on The Motley Fool comments:
On the medical side, Diploma distribute more to hospitals, clinics and environmental testing labs, than it does to biotech/pharma labs. I would be concerned if it was the latter because the industry is scaling back on drug development plans. In general, Diploma's distributes more to the maintenance Capex budgets of companies than it does to expansionary. It tends to do ok in a slowdown, and if they use the substantive cash flow well, they can always 'buy' EPS growth.