Diploma Share Discussion Threads

[alphabeta4] 27/3/2019 08:25

FWIW I think the market is moving to 'boring' predictable growth companies as it views us as late cycle with the more risky growth companies or growth with doubts on cash generation being de-rated in contrast.

This one is about as predictable as you can get and is benefiting accordingly.

Decent results Btw - look bang in line.

[jeffian] 12/3/2019 16:51

I find it very difficult to know when or if to sell and end up sitting frozen like a rabbit in the headlights. I used to keep a dummy portfolio of shares I sold and I stopped because it became so depressing; it was my best portfolio! Using very much the same argument as #626, I sold half my AVON at around 450p (today? £13). The one that really hurts is FOUR (sold at 49p, price today.........£;23). I'll probably end up doing nothing here but not quite sure what is driving this bullishness.

[pillion] 12/3/2019 14:32

Fair comment Jeffian, I share your reservations; however the chart looks good for further increase imho

edit; if you alter the above chart to 3 years it looks bullish


My holding is up 26% since purchase

Recently I have been buying Premium Bonds instead of shares

Bonds bought earlier this month only go in the May draw

[jeffian] 12/3/2019 10:56

I love this share and it's done me very well over many years. It has many of the attributes I particularly like - cash on the balance sheet, good enough cash generation to pay for acquisitions without borrowing or tapping shareholder, a well-covered growing dividend - and yet, and yet.....as it re-approaches the ATH, is anyone else feeling it might be getting a bit ahead of itself? At the end of the day, it's just a distributor (a specialist one, granted) which is not normally a highly-rated sector and underlying growth ex-acquisitions is unexciting if steady. Today, on 2018 earnings, it sits on an "adjusted" PER of 25.6x, a "basic" PER over 30x and a divi yield of 1.76%. I rarely sell anything and usually end up regretting it when I do, but I wonder if this is as good as it gets here for a while. What do you think?

[pillion] 21/2/2019 13:43

A genuine
forming nicely

[jeffian] 14/2/2019 11:56

Always seems 'under the radar', this share, but it's been climbing nicely these past days, despite the FD selling a chunk end of Jan.

[ianood] 20/11/2018 07:55

Jeffian - and Halma too!

[losos] 19/11/2018 12:47

jeffian - Yes it's my kind of share as well and as you said above they seem to be doing OK without a CEO haha ('tho they will eventualy have to find one!)

[jeffian] 19/11/2018 10:25

Good results again, and a quiet board. Just my sort of share!

[jeffian] 01/11/2018 16:40

Indeed, but interesting that it seems to run along quite happily without one (including an acquisition). A bit like Belgium!

[losos] 01/11/2018 13:38

jeffian - My guess would be that they defiantely don't want to rush this, thought they had got the right man and subsequently found out it was not a good choice. Must be 100% certain next time.

[jeffian] 31/10/2018 19:38

Nice bounce. Still no word on a replacement CEO.

[cleaninsight] 05/9/2018 12:01

Another Diploma Director off to pastures new.

3/9/18 AB Dynamics plc - Appointment of Chief Executive Officer

AB Dynamics plc (AIM: ABDP) the designer, manufacturer and supplier of advanced testing systems and measurement products to the global automotive industry is pleased to announce the appointment of Dr James Routh as Chief Executive Officer ("CEO") with effect from 1st October 2018.

Dr James Mathew Routh, aged 45, studied at Cranfield University where he obtained a PhD in Engineering before joining Cranfield Aerospace Ltd as a Project Engineering Manager in 2000. Dr Routh subsequently joined Flight Refuelling Limited in 2003 as Head of Engineering - Design Verification; he later served at senior management level in Chemring Group PLC, David Brown Gear Systems Limited and more recently, at Diploma PLC where he led the international seals division.

[valhamos] 30/8/2018 10:13

If you make a wrong choice and there's little chance things will change then it's always best to cut your losses and fix it rather than trying to struggle on hoping things will improve.

[jeffian] 30/8/2018 09:40

Press comment today on CEO removal suggests he just didn't cut the mustard (according to the Times he "faced 'challenges' adjusting from being a divisional head to a group chief executive") and many papers talk of a "culture clash" suggesting he was trying to make them go a way they didn't want to go. Certainly the performance of DPLM over the past years suggests there wasn't much to 'fix'. Anyway, the share price reaction suggests the market was happy with the decision. Onward and upward.

[silverfern] 29/8/2018 16:09

As the share price went up it might signal what some IIs think about the move too.

[silverfern] 29/8/2018 16:08

Out of his depth I would suggest. One thing to be Vice President- anyone with a desk is called that in multi-nationals, another to run a company with a market cap of £1.5bn with such a lot of diversity under it. Need to be able to delegate, not micro manage. A lack of vision, delegating skills and inability to grasp the leadership role rather than the reverse perhaps. Idle speculation of course.

[losos] 29/8/2018 12:40

alphabeta4 - "Fair play to them for speaking up rather than go along with something they felt was not in shareholder's best interests."

Yes, this is what the board are there to do. It's tough at the top. If a new man comes in and wants to try a whole new 'stratagy' he had better have a dam good reason for doing so. As you rightly pointed out the past 'stratagy' seems to have worked well. I have not been a shareholder for as long as you but I do agree that they have been doing well, so why change ?

jeffian - In my experience most companies try to keep quiet and move on and I agree with that, there's not much point in going public over all the reasons, the board have made their decision, the media, and all the outsiders (like you & me) will want to make a story of this but that's just human nature, it's not nice the way people love to gloat over the fallen. Resist the temptation, he's gone, I'm sure he'll find another job.

Asagi - yes probably what you said. Personally I always felt it was far better to get ones 'feet under the table' before comming out with some grandiose plan haha.

[jeffian] 29/8/2018 10:06

Hmmm. It is a bit odd though. Maybe more will come out in the next couple of days.

[asagi] 29/8/2018 09:00

Imagine the look on the board's faces at one of the London market's most successful companies when the new CEO fires up a PowerPoint and says we need a new culture and strategy around here!!!

(if that's what happened)

Asagi (no position)

[alphabeta4] 29/8/2018 08:16

"The Board believes that a change in CEO is in the best interests of the Company and its shareholders. The Board is fully committed to the Group's successful long term strategy and, as reported in today's Trading Update, the Company continues to perform well. Working together with Diploma's experienced senior management team I feel confident the Group's successful, consistent strategy and culture will continue to deliver profitable growth."

Is this a dig that Richard wanted to change the strategy and subsequently fell out with the board? In January when he was appointed DPLM also agreed to pay out for his plan with his old employer worth c£1m as long as he didn't resign within 12 months so it looks like he had to be pushed.

It doesn't look like someone internally vying for his job as it says search for an external appointment has started.

Personally as a long term holder who has done very well from the existing strategy (I've been here since £3.80) I'm fine with this, it does show how ruthless the board are though! Fair play to them for speaking up rather than go along with something they felt was not in shareholder's best interests.

[mammyoko] 29/8/2018 07:36

Presumably fell out with the Board. He's only been there since May so none of the positive trading can be attributed to him. Revenue guidance looks to be slightly ahead of consensus. All divisions contributing. Particularly strong in North America although full-year growth will be lower due to strong Q4 comparatives. I am a long-term holder looking to add on any weakness

[wildshot] 29/8/2018 07:25

Trading update looks pretty positive. The news that the CEO has left with immediate effect and doesn't look to be mutual is worrying. Why would he be forced out when trading looks positive?

[jeffian] 28/8/2018 12:16

Trading update tomorrow.

[silverfern] 22/8/2018 08:29

Pretty good ROI for this acquisition.