Diploma PLC reported Group revenue results for the first quarter ended 31 December 2017. The Group has made a good start to the year with overall trading in line with expectations. Reported Group revenues in the first quarter ended 31 December 2017 increased by 10% over the comparable period last year. At constant exchange rates, Group revenues increased by 14%, with acquisitions completed during the last twelve months contributing 6% and underlying growth of 8%. The Group's operating margin remains in line with expectations and slightly ahead of the comparable period last year.

The company notes the enactment of the Tax Cuts and Jobs Act in the United States on 22 December 2017 which will reduce the statutory rate of US Federal corporate income tax to 21%, effective from 1 January 2018. While the full implications of this new US tax legislation on the Group are still being reviewed, the company estimates that the Group's adjusted effective tax rate for the year ending 30 September 2018 will reduce to ca. 24% from 26.5% reported at 30 September 2017. There will be no material one-off charges or credits as a result of the change in tax rate.