Diploma sees FY margins at top end of estimates

16th May 2022 13:27

(Sharecast News) - Specialist technical products maker Diploma said it expected annual operating margins to be at the top end of guidance after posting a rise in interim profits.

The company on Monday reported a 26% rise in operating profit to £82.5m on revenue of £448.5m, an increase of 23% driven by acquisitions.

Underlying revenue growth was 16%, boosted by organic revenue initiatives, positive demand and pricing. Diploma said it pass-through of higher year-on-year copper prices has added around 5% to underlying revenue growth.

It added that the operating margin was expected to be at the top end of the 18-19% guidance range issued last month.

"Whilst the wider geopolitical and macroeconomic outlook is uncertain, our resilience is underpinned by our increasing revenue diversification, value-added model and strong balance sheet," the company said.