Making a Difference
“Diploma has an important role to play in contributing to the global fight against COVID-19. We have organised our response around Diploma Making a Difference - Our Colleagues, Our Customers and Our Communities. Below we set out the initiatives that we are undertaking for these three important groups of stakeholders.? I am incredibly proud of all of our people at Diploma for the work they are doing to look after each other, keep the business moving, and for going above and beyond to combat this terrible disease – you are Making A Difference. Thank you for your continued hard work and commitment. And I wish our colleagues, families, and all our partners the very best of health.”
Johnny Thomson, Group CEO
Our priority is to protect the health, safety and wellbeing of our colleagues, wherever they are in the world; and to do all that we can to protect jobs.
- All colleagues that can work from home are now working remotely.
- We have put new Health & Safety policies in place for all critical, on-site workers. This includes social distancing measures, split shifts, and regular deep cleans.
- We are providing additional support through Employee Assistance Programmes.
- We are reviewing each business on a case by case basis to identify the appropriate workforce flexibility initiatives to protect the jobs and salaries of our colleagues.?
- The board of directors and the executive team including the Sector CEOs have agreed to a voluntary 20% reduction in base salary and fees from 1 April 2020 until at least 1 June 2020, to help support the business.
Our Customers and Suppliers
Diploma businesses supply essential products and essential solutions across a very broad range of end markets and segments. Deemed as essential, all of our businesses have remained open and operational during the crisis and we remain determined to support our customers and suppliers through these difficult times.
- Our businesses have implemented new procedures to enable them to remain open and operational during this time in order to continue to serve our critical customers.
- Diploma businesses are actively managing their supply chains to ensure good levels of inventory and supply.
In addition, we are proud that our businesses are supplying many of our customers with COVID-19 critical products, and examples are given below:
- AMT/Vantage and BGS are sourcing and supplying face shields to front line medical workers.
- Abacus, Somagen and TPD are supplying material for testing and quality control of testing to laboratories doing COVID-19 testing, and reagents for Covid-19 tests.
- TPD is also supplying respiratory tubing to Intensive Care Units.
- a1-CBISS is supplying respiratory protective equipment to the UK National Health Service.
- VSP is helping one of their customers to cut face shields for medical personnel and has also supported the Military Sealift Command to expedite repairs on a hospital ship that is now in New York and being used to treat Covid-19 patients.
- Hercules OEM is supplying multiple components for ventilation and intubation devices and for ultraviolet equipment used to disinfect airborne contaminants.
- Kubo is supplying multiple seals and components to several key medical manufacturers.
- In addition to helping Clarendon on Project Pitlane, M Seals is also supplying seals to a Swedish manufacturer of ventilators.
- FPE Seals is supplying critical parts to fix machinery at a PPE manufacturer for the UK National Health Service.
- Clarendon, with M Seals, is supporting Project Pitlane, a consortium of F1 teams working with University College London to produce life-saving continuous positive airway pressure (CPAP) devices.
- IS-Rayfast has designed a wire and cable product for ventilators made by their F1 customers.
- CCA Group has provided heatshrink for Dyson ventilators and sleeving for the Nightingale Project, a new London hospital built in response to COVID-19.
Whilst our priorities are to look after our colleagues and customers and ensure the long-term health of the Group, it is also important that we step up to make a difference to the communities in which we operate, working to be a proactive and positive influence beyond our business.
Each of our businesses is implementing various initiatives to support the communities close to them – AMT/Vantage, for example, donated over 10,000 face masks to medical personnel in Canada. As a decentralised Group, our goal is to support our businesses in their contributions towards their local communities and there are many examples of this already happening across the Group. We will share more as this evolves.
Diploma has a resilient and proven business model. We are well diversified by customer and segment. We serve predominantly into operating rather than capital budgets. Our culture is built around a decentralised structure that encourages accountability and agility in our leaders. These are all characteristics of our resilience and adaptability in more challenging times.
The Group also has access to over ￡50m of funding through cash and committed facilities and we feel therefore well placed to navigate the financial impact of the crisis.? However, this is an unprecedented situation and so we are taking actions to ensure we have sufficient cash and liquidity. These include temporary restrictions on discretionary expenditure, capital expenditure and working capital.
Diploma has a robust financial position, with a strong balance sheet and liquidity and these actions to conserve cash are to ensure the Group remains well placed for long term success.
We continue to work closely with all our businesses to manage our response to the outbreak of COVID-19 as effectively as possible and continue to make a difference to all of our stakeholders.