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(Alliance News) - Diploma PLC on Monday reiterated its full-year guidance for next year after posting a strong annual profit rise driven by organic growth initiatives and better demand.
For the financial year that ended September 30, the seal and cables maker reported that pretax profit jumped 45% to GBP96.6 million from GBP66.7 million the year before. Operating profit was up 49% to GBP104.3 million from GBP69.8 million.
Revenue increased 46% to GBP787.4 million from GBP538.4 million. The contribution from its acquisition Windy City Wire was hailed by Diploma for improving results.
Shares in the FTSE 250-firm were 4.5% higher at 3,348.00 pence each in London on Monday morning.
Chief Executive Johnny Thomson said: "We have delivered strong results, including underlying growth and margin well ahead of our financial model. We have made significant strategic progress, including a record year for acquisitions, as we continue to develop high-quality scalable businesses for organic growth."
Diploma declared an annual dividend of 42.6 pence, up 42% from 30.0p the year before.
"Despite market uncertainties, I remain confident in our ability to deliver attractive long-term growth at sustainably high margins," Thomson added.
The company did warn that the market environment remains uncertain and that it continued to manage supply chain disruption and labour pressures.
Diploma reaffirmed its previous guidance for financial year 2022, expecting revenue growth of around 10% including mid-single digit underlying revenue growth and a margin between 18% and 19%.
By Will Paige; willpaige@alliancenews.com
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