Diploma sees FY 'materially ahead' of expectations

12th Apr 2022 07:37

(Sharecast News) - Specialist seals and controls maker Diploma said full year results were expected to "materially exceed" expectations after a strong contribution from acquisitions.

The company on Tuesday said forecast underlying revenue growth in the low double digits "well ahead of our model".

"This reflects our expectation that growth will moderate in the second half, particularly as comparators become more demanding," the company said in a trading update.

Including recent acquisitions, reported revenue growth was expected to be a just over 20% and operating margin expectation at the top end of the 18-19% range.

"Our operating margin performance is very encouraging as we continue to navigate inflation, supply chain challenges and tight labour markets."