Diploma profit jumps as acquisitions propel growth

(Sharecast News) - Diploma on Monday reported double-digit growth in annual profit and revenue after a good performance from its life sciences division and a number of new acquisitions.


The technical products and services specialist booked a profit before tax of £83.5m for the 12 months ended 30 September, up by 15% compared to the year before, as revenue climbed by 12% to £544.7m.

The FTSE 250-listed company recommended a final dividend of 20.5p per share, bringing the total dividend up by 14% to 29.0p.

Diploma spent a total of £78.3m on snapping up VSP Technologies, Gremtek, DMR Seals and Sphere during the year, noting that these new businesses contributed five percentage points to its revenue growth.

Meanwhile, underlying turnover, adjusted for acquisitions and for currency effects, increased by 5% as the life sciences division's colorectal cancer screening product was well received following its release in Canada.

In the ongoing year, Diploma said it would likely achieve further progress as moderately lower underlying growth looks set to be offset by a strong contribution from its new businesses.

Chief executive Johnny Thomson said: "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 shares were down 0.51% at 1,692.36p at 0805 GMT.