Wednesday 16 January 2019 8:23 am | Updated: Monday 03 June 2019 3:45 am

FTSE 250 engineering firm Diploma appoints new chief executive

Specialist equipment and engineering firm Diploma has announced it has hired a new chief executive, Johnny Thomson, with shares dipping slightly as markets opened.

The FTSE 250 company, which provides specialist products to the life sciences sector, said Thomson would take over the executive responsibilities from interim executive chairman John Nicholas on 25 February.

Thomson has worked at contract catering firm Compass for the last nine years, giving him “extensive experience of working in a decentralised business with a core focus on service and distribution”, according to chairman Nicholas.

“I am excited to be joining Diploma as Chief Executive. The business has a strong track record of customer service, growth and shareholder returns. I look forward to leading such a strong and experienced team in developing the Group's significant potential,” said Thomson.

Diploma also issued its first quarter trading update, in which it reported “a solid start to the year” with trading in line with expectations.

Revenues in the quarter ending 31 December were up nine per cent year on year, helped along by the weakened pound, which gave finances a one per cent boost.

In the company’s core life sciences sector, revenues were up four per cent, supported by growth in its Canadian surgical business.

The company said as expected operating margin was “slightly below the comparable period last year”.

Cash funds at the end of 2018 were £28m, it added.

In August, Diploma acquired a pair of businesses in the controls sector, which includes cables and electrical connections, in a deal which it said would immediately help earnings.

The company bought FS Cables, which comprises Caplink and FSC Global, for around £18m, pushing up earnings in the sector 24 per cent.