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(Alliance News) - Diploma PLC on Monday upped its final payout for financial 2019 after reporting a "strong double-digit growth in revenues and earnings".
The company, which supplies seals, filters, specialised wiring and fastners, also said its remains confident of making further progress in the current financial 2020 as moderately lower underlying growth will be offset by a strong contribution from acquisitions.
The London-headquartered company posted a 15% rise in pretax profit for the year ended September 30 to GBP83.5 million from GBP72.7 million a year ago.
Revenue increased 12% year-on-year to GBP544.7 million from GBP485.1 million, comprising 5% underlying revenue growth, a 5% contribution from acquisitions and a 2% currency benefit, Diploma explained
The company's Life Sciences and Controls businesses both delivered strong underlying revenue growth of 7% and 9%, respectively, but the generally weaker Industrial markets limited the more cyclical Seals businesses to 1% growth in underlying revenues.
Financial 2019 adjusted operating margin increased 30 basis points to 17.8%, with stronger gross margins and a tight control of costs.
"Diploma has delivered another strong set of results with double-digit revenue and earnings growth in the year. We were also delighted to welcome four new businesses into the group, all of which are strategically important and have exciting prospects. The political and economic outlook remains uncertain, but I am confident our resilient business model will support a consistently strong performance again in the year ahead," Diploma Chief Executive Johnny Thomson said.
FTSE 250-listed Diploma recommended a 15% increase in its final dividend to 20.5 pence per share, with the total annual payout up 14% to 29.0p from 25.5p last year.
By Tapan Panchal; tapanpanchal@alliancenews.com
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