Diploma posts 30% jump in 1H sales, raises guidance

15th May 2023 07:39

(Sharecast News) - Diploma posted a strong set of results for the first half of its financial year and upped its guidance.

"We have had an excellent first half. The strong performance, with volume-led growth, encouraging margin progress and +26% EPS, builds on Diploma's long term compounding track record," the company's boss, Johnny Thomson said.

"Our upgrade for the full year underscores our increasing resilience as well as the strength of the business model."

Revenues were ahead by 30% to £582.8m or by 10% on an organic basis.

Statutory operating profits surged 59% to £92.5m, alongside a 37% improvement in free cash flow to £51.8m.

The company also said that the back half had begun "positively", which led management to raise its full-year outlook.

Full-year organic growth was now pegged to come in at 7%.

That was on top of approximately another 7% rise in sales expected to accrue from acquisitions, net of disposals.

In parallel, the company's leverage was seen declining to below 0.4 times before any acquisition investment.

The interim dividend was hiked 10% to 16.5p per share.