The Controls Sector businesses supply specialised wiring, cable, connectors, fasteners, control devices, adhesives, and CNC and robotic components for a range of technically demanding applications.

“International Controls enjoyed another exceptional year. Incisive growth plans and hard work ensured success across the Sector. The addition of T.I.E. both enhanced Sector margins and opened new markets and products to support the next phase of growth.”

David Goode, CEO, International Controls Sector

“In a year of diligent effort, our team’s commitment to organic growth has been the cornerstone of our success, building scale sustainably and setting a solid foundation for the future.”

Rich Galgano, CEO, Windy City Wire

Financial highlights

Revenue

£568.4m

(FY22: £492.8m | +15% YoY)

Adjusted operating profit

£136.6m

(FY22: £105.8m | +29% YoY)

Statutory operating profit

£112.9m

(FY22: £75.3m | +50% YoY

Organic revenue growth

+11%

(FY22: 24%)

Adjusted operating margin

24.0%

FY22: 21.5% | +250bps

2023 Highlights

  • Very strong performance in International Controls with organic revenue growth of 15%.
  • Windy City Wire (WCW) delivered organic growth of 7%, building on a very strong comparative period in FY22.
  • Adjusted operating profit increased significantly, 29% higher at £136.6m (2022: £105.8m) with a 250bps year-on-year increase in adjusted operating margin to 24.0% (2022: 21.5%). Both WCW and International Controls contributed to margin expansion driven by positive operating leverage and mix into higher margin products.
  • Strategic acquisition of Tennessee Industrial Electronics (T.I.E.) builds scale and gives access to the important industrial automation end market.

  • International Controls (51% of Controls Sector revenue) delivered 15% organic growth in the year, benefitting from market share gains in recovering civil aerospace markets and structural tailwinds in UK defence and German energy markets as investment in these areas remains a critical focus for governments.The Sector also further penetrated exciting end markets within electric vehicles (EV), renewables and space. Operating margin increased strongly, primarily due to positive operating leverage on volume growth, and mix benefits from the acquisition of T.I.E. and disposal of Hawco

  • Windy City Wire (49% of Controls Sector revenue) continues to perform strongly, with organic revenue growth of 7% in the year, following a very strong comparative period with 32% organic growth in FY22. Product range extension and share gains in new end market segments drove volume and a favourable mix.

Case study

Speciality Adhesives: Techsil 

Techsil, based in the UK, sells specialty silicones, adhesives and sealants. It adds value through technical sales and support, own branding and technical specification.

Techsil is aligned with structurally growing end markets, such as EVs, through battery bonding and circuit board solutions, as well as the telecoms and defence industries.

A strong management team has enabled us to add two bolt-on acquisitions since Techsil joined the Group in 2021.

Techsil has significant opportunity across all of our growth buckets - UK consolidation, geographic penetration in the US and Europe, and exceptional end-market potential.

Annual Report 2023

Diploma Delivers