British tech equipment maker Diploma posts steady revenue growth despite rapidly growing portfolio
British tech products provider Diploma reported steady revenue growth this morning, up 23 per cent to £448.5m thanks to organic revenue initiatives, positive demand and pricing.
The FTSE 250 firm reported a 22 per cent growth in adjusted EPS to 47p and 20 per cent increase in interim dividend at 15p.
It comes as Diploma looked to diversify its offering, making three acquisitions during the first half of the year, costing the company around £172m.
The company makes equipment for the controls, seals and life sciences sectors, and its portfolio of companies make anything from specialised wiring to medical devices to seals for wind turbines.
With the year starting well, Diploma said the full year outlook was unchanged, and was confident in the materially upgraded April guidance.
The company expects low double digit underlying revenue growth, as well as reported revenue growth a little over 20 per cent.
Diploma also has its eyes set on a new snap up of Accuscience, which is expected to deliver annualised revenue of around £35m.
Commenting on the results, Johnny Thomson, Diploma’s Chief Executive said: “Our organic growth and margins have been strong, and we have also welcomed three important businesses to the Group.
“We are executing our strategy by diversifying our business revenues for organic growth, scale and resilience. We are also continuously improving our value-add model for sustainable scale”.
He added the company was not “complacent” about the economic outlook, but the second half has started really well and we are confident in our upgraded full year guidance.