Industrial parts supplier Diploma PLC (LON:DPLM) said Wednesday that changes in US tax laws are expected to lower the group’s effective rate for the current fiscal year as it issued a first-quarter trading update.
While the full implications of the US Tax Cuts and Jobs Act are still under review, the group said its adjusted effective tax rate for the current year will fall to about 24% from 26.5%, with no one-off charges or credits expected.
Higher revenues
The maker of parts used in Formula 1 cars said revenues in the first quarter ended 31 December 2017, increased by 10% compared with the same period last year, led by a 20% boost from its Life Sciences sector and single-digit growth in the Seals and Controls sectors, respectively.
At constant exchange rates, revenues rose 14% helped by recent acquisitions. Diploma also said it had £21.9mln in cash at the end of fiscal 2017.
Finally, the group said it is making “good progress” in search for a successor to longtime CEO Bruce Thompson, who previously announced plans to retire before the end of 2018.
Shares dipped slightly to 1,191p in early trading.