London EC1-based Diploma Plc has turned in pre-tax profits for the year to September 30 down 3% at UKP19m on turnover that rose 8% at UKP149m. Chairman Christopher Thomas says the company’s overall performance is as expected in the light of the current economic conditions. In the electronics division, Anzac – as reported for the half year (CI No 1,427) – with its reliance on the memory market has been hit by the fluctuation in supply, demand and pricing. In the second half this product sector was heavily over-supplied since there are over 30 manufacturers of dynamic random access memories and prices are still falling whereas a year ago a 1M-bit DRAM at volume pricing was typically UKP7.50 a unit, it now costs UKP2.50. Access is reported to have performed increasingly well over the year with turnover maintained. Nortronic, too, is said to have produced a steady performance. Overall, says the chairman, the electronics division has performed well over the year, despite the toughening conditions in the last six months, and the impact of heavy recruitment and investment costs related to the expansion of the CAD-CAM business, as well as the start-up costs of a new Apple Macintosh division. Wakefield, Diploma’s US-based distributor of computer after sales products is reported to have had an encouraging nine months in Diploma’s ownership especially in terms of cash flow. And Thomas is more than happy with the performance of the buiding components sector, given the current degree of the slump in housebuilding. Special Steels has seen turnover and profits up, but orders have recently slipped Diploma expects this situation to improve for the oil-related market. The chairman is optimistic for the future, saying that overcoming the economic downturn is a challenge.
