The Seals Sector businesses supply a range of seals, gaskets, cylinders, components and kits used in heavy mobile machinery and a diverse range of fluid power products with Aftermarket, OEM and MRO applications.

“I am so proud of the North American Seals team and all the progress they have made this year in strengthening our growth potential and broadening our value-add capabilities."

Ted Messmer, CEO, North American Seals Sector

“The International Seals Sector is poised for continued strong organic growth, augmented by the increased European footprint due to the acquisition of DICSA.”

Alessandro Lala, CEO, International Seals Sector

Financial highlights

Revenue

£419.0m

(FY22: £331.4m | +26% YoY)

Adjusted operating profit

£79.0m

(FY22: £62.6m | +26% YoY)

Statutory operating profit

£55.8m

(FY22: £46.0m | +21% YoY)

Organic revenue growth

+5%

(FY22: +14%)

Adjusted operating margin

18.9%

(FY22: 18.9%)

2023 Highlights

  • Strong International Seals performance driven by R&G and Australian Seals.
  • Resilient performance in North American Seals, benefitting from returns on the investment into the Aftermarket facility in Louisville and strong performance in our MRO business offsetting some softness in certain OEM customers.
  • Adjusted operating profit increased by 26% to £79.0m (2022: £62.6m).
  • Invested in scaling projects focusing on automation and supply chain efficiencies through facilities upgrades.
  • Strategic acquisition of Distribuidora Internacional Carmen S.A.U. (DICSA) builds scale in Europe and broadens the product portfolio into stainless steel fittings, expanding addressable markets.
  • International Seals (56% of Sector revenue) delivered strong organic growth of 9%, principally driven by an excellent trading performance from R&G in the UK and strong recovery of capital projects in Australia.
  • North American Seals (44% of Sector revenue) delivered organic growth of 1% against a very strong comparator (2022: +16%) with strong growth in our North American Aftermarket and MRO businesses, partly offset by some destocking in Industrial OEM end markets.

Case study

US MRO VSP Technologies

VSP Technologies offers customers fluid sealing solutions used in mission-critical and hazardous environments.

When VSP Technologies was acquired in 2019, it sold custom gaskets used in chemical processing, power generation and other heavy industries.

Since our acquisition, they have successfully broadened their flow control product lines, cross-selling O-rings and hoses from other North American Seals Sector businesses, to VSP's existing customers.

Supported by their engineering expertise, VSP sells its customers solutions that reduce fugitive emissions and leakages and reduce downtime in mission-critical and hazardous environments such as rail transportation of toxic materials.

Their solutions reduce customer operating costs and have tangible environmental benefits.

Annual Report 2023

Diploma Delivers