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(Alliance News) - Diploma PLC on Monday said it had seen a "very strong first-half performance" and its full-year outlook is ahead of expectations.
The London-based seal and cables maker posted revenue in the six months to March 31 of GBP365.2 million, up 29% year-on-year from GBP283.6 million.
Statutory pretax profit also improved, increasing to GBP42.5 million, up 2.2% from GBP41.6 million a year prior. Adjusted profit before tax rose 31% to GBP63.2 million.
Diploma noted that it has made a "significant upgrade" to full-year guidance, with revenue expected to be slightly better than 40% ahead of the GBP538.4 million posted in its 2020 results, or around GBP796.8 million. Margin is forecast to increase towards 19%.
The company highlighted that acquisitions made during the six-month period had helped its successful performance, and that it had a "pipeline of opportunities" for the future. Windy City Wire Cable & Technology Products LLC, which it bought for GBP347.7 million in October, was saw an "exceptional" performance, Diploma said.
"Our performance in the period was very strong, and we have exciting trading momentum into the second half, resulting in an upgrade to our full year expectations," said Chief Executive Johnny Thomson.
"I remain very optimistic about our prospects for the short and long term."
Diploma's Controls division experienced substantial growth for the period, with revenue up 73% to GBP152.8 million from GBP88.2 million a year prior, driven by acquisitions.
Its Life Sciences businesses also achieved strong half-year growth, with revenue increasing 22% to GBP88.6 million from GBP72.4 million a year previously.
The firm's Seals businesses saw steady if not exceptional trading, with reported revenue of GBP123.8 million, up 0.7% year-on-year from GBP123.0 million.
Looking ahead, Diploma said it saw "exciting" trends into the second half with a further acceleration in underlying growth for all three sectors in April, driven by revenue initiatives, improving demand, and a strong contribution from acquisitions.
Diploma declared an interim dividend of 12.5 pence per share, having skipped its interim payout last year, which it said reflects its "growth outlook and future prospects".
Shares were 8.4% higher at 2,980.00 pence each in London on Monday morning.
By Will Paige; willpaige@alliancenews.com
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