The Life Sciences Sector sources and supplies technology driven, value-add solutions in the In Vitro Diagnostics, Scientific and Medtech segments of the global healthcare market.

“Our Life Sciences Sector is well positioned for the continued growth, investment and adoption of new technology in the healthcare sector, which will support improved patient care.”

Peter Soelberg, Sector CEO, Life Sciences

Financial Highlights

Revenue

£212.9m

(FY22: £188.6m | +13% YoY)

Adjusted operating profit

£43.2m

(FY22: £41.0m | +5% YoY)

Statutory operating profit

£36.4m

(FY22: £42.5m | (14%) YoY)

Organic revenue growth

+8%

(FY22: (4%)

Adjusted operating margin

20.3%

(FY22: 21.7% | (140)bps)

2023 Highlights

  • Organic revenue +8% (2022: -4%): The Sector has returned to growth, with momentum accelerating, driven by the normalisation of surgical procedure and diagnostic testing volumes despite ongoing healthcare staffing challenges.
  • Operating margins remain well ahead of our financial model but declined year-on-year, as expected, primarily due to a higher proportion of relatively lower margin capital sales; a full year effect of Accuscience (which has a lower margin with lower capital intensity); plus ongoing scaling investments.
  • Positive outlook as governments act to address healthcare staffing shortages with automation and the associated increase in capital project funding.
  • Continued investments being made to build scale in the facilities and systems in Canada and Europe following the successful completion of the scaling project in Australasia

Case Study

Life Sciences Australia

The Life Sciences Australia business navigate a highly technical and specialised environment in order to bring innovative surgical, pathology, and medical research products to market.

Following an investment from Diploma, the Life Sciences Australia business has built capability and organisational strength by consolidating its facilities, third-party logistics, warehousing and ERP systems, bringing them all under one roof.

This has allowed the business to move from a generalised model to a specialised model, allowing them to bring in specialist talent to manage inventory, operations, service, and accounts. The new facility is also designed to support collaboration between teams.

Another advantage of the move has been that clients are now able to visit the facility for product demonstrations and see first-hand the logistical value-added benefits that are on offer.

Annual Report 2023

Diploma Delivers