Diploma delivers FY revenue and profit growth

Technical products and services group Diploma delivered a "very strong" set of full-year results on Monday, with both revenue and profits improving year-on-year.

Diploma said revenues and adjusted operating profits had both grown 29% year-on-year, to £1.02bn and £191.2m, respectively, while statutory operating profits grew 38% to £144.3m. Adjusted operating profit margins remained flat at 18.9%

The FTSE 250-listed group also said basic earnings per share had risen 36% to 76.1p and total dividends per share increased 26% to 53.8p.

Free cash flow rose 11% to £120.4m, while free cash flow conversion eased off from 103% to 90%. Net debt to EBITDA ratio rose from 1.1x to 1.4x.

Chief executive Johnny Thomson said: "We've made excellent progress this year, with our very strong performance building on an exceptional long-term track record of organic growth, margin, and EPS delivery.

"While the economic environment is uncertain, our business model is resilient, our strategy is working, and our performance momentum is encouraging. We remain confident in the group's outlook and long-term prospects."

As of 0840 GMT, Diploma shares were up 1.86% at 2,852.0p.

Reporting by Iain Gilbert at Sharecast.com