Diploma predicts FY 'significantly ahead' of expectations

Diploma said it expected annual results to be "significantly ahead" of expectations as the technical equipment supplier reported an increase in first-half profit and said momentum had increased since then.

Adjusted operating profit rose 33% to £66.6m in the six months to the end of March as revenue increased 29% to £365.2m. Pretax profit rose to £42.5m from £41.6m. The FTSE 250 group declared an interim dividend of 12.5p a share.

Diploma said all three of its businesses improved in the first half and gained momentum in April. Reported revenue for the full year will be slightly better than 40% ahead of 2020, it predicted.

Controls' adjusted operating profit rose to £28.6m from £15.8m in the first half and life sciences profit increased to £18.7m from £14m. Seals profit dipped to £19.3m from £20.1m.

Group free cash flow rose to £34.3m from £21.8m. Diploma said the performance of Windy City Wire, its biggest acquisition bought in October 2020, was "exceptional".

Diploma said it had "exciting trends into H2 with a further acceleration in underlying growth for all three sectors in April driven by our revenue initiatives, improving demand and a strong contribution from acquisitions. As a result of the strong trading performance in H1 and positive momentum into H2, we now expect full year results significantly ahead of our previous expectations."