Diploma raises guidance as acquisitions boost first-half earnings

(Alliance News) - Diploma PLC on Tuesday raised its guidance and interim payout as it reported an increase in half-year earnings.

The London-based supplier of technical products and services said pretax profit climbed 14% to GBP139.4 million in the six months to the end of March from GBP122.3 million a year earlier.

Revenue was 17% higher at GBP851.1 million from GBP728.5 million, with organic growth picking up to 15% for the half-year, from 9% a year ago.

"It's been a great first half," said Chief Executive Officer Johnny Thomson.

"The strong first half performance demonstrates how we balance ambitious earnings growth with disciplined returns - in good times and bad - to build on our long track record of sustainable quality compounding. We have strong positions in attractive, structurally growing markets, our acquisition pipeline is healthy, and our team is in great shape."

Diploma lifted its dividend by 4.9% to 19.1 pence per share from 18.2p, as it reported "strong" cash generation with "significant" balance sheet headroom.

The firm said momentum in acquisitions "has been building", with a "meaningful" step up in deals over the last 12 months after lower-than-typical activity during financial 2025.

It has added 14 new businesses in a year, including four since March, with an investment of GBP310 million.

The second half has "started well" the CEO added, while the firm is "confident" in its upgraded full year guidance.

Diploma now sees organic revenue rising 12% in the full year, the guidance boosted from 9%. It expects adjusted operating profit growth of over 30%, which it says is a "6% upgrade to consensus".

The firm said acquisitions to date add 6% to reported growth, up from 3%.

Shares in Diploma were up 6.6% at 7,060.00p on Tuesday morning in London.

By Michael Hennessey, Alliance News reporter

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