Diploma beats expectations in first half

(Sharecast News) - Diploma said first-half performance beat expectations as underlying revenue matched the pre-Covid-19 period a year earlier.
The technical equipment supplier said it made good progress in all sectors on an underlying basis in the six months to the end of March. Reported revenue will be up by about 27%, reflecting a strong contribution from acquisitions, the FTSE 250 group said in a trading update.

Diploma's operating margin will be at the upper end of its 17-18% target range, reflecting tight cost control and the positive impact of the Windy City Wire acquisition in 2020.

The company said strong trading would offset the foreign exchange impact from the stronger pound in the year to the end of September. Full-year expectations are positive and unchanged, it said.

The current market consensus for the year ending 30 September is for revenue of £742m and adjusted operating profit of £133m.

"The group has delivered a strong performance for the first half, ahead of our expectations," Diploma said. "The group's strong trading performance and progress with our strategic objectives provide us with confidence in Diploma's long term prospects."