Diploma raises dividend on the back of strong 2019 performance
London-listed Diploma today announced that it would list its final dividend by 15 per cent, after posting strong double-digit growth in both earnings and revenue.
Shares in the company rose nearly three and a half per cent during the morning’s trading.
Read more: Industrial parts supplier Diploma eyes further acquisitions
The figures
The company, which supply technical products such as wiring and seals for the life sciences, said that profit rose 14 per cent to £97.2m, up from £84.9m in 2018.
Revenue also grew 12 per cent to £544.7m from £485.1m last year, driven by a strong performance across healthcare divisions.
Cash flow slipped 7 per cent to £56.5m, with net debt at £15.1m at the year end.
Earnings per share and total dividend per share each saw double-digit growth, to 64.3p and 29p respectively.
Why it’s interesting
2019 was a record year for acquisitions for the company, which invested £78.3m in four new businesses.
Diploma said that the growth in uncertainty in global industrial markets had resulted in a healthier pipeline of opportunities for such purchases.
It added that the contribution from these acquisitions would offset the “moderately lower growth” the company expects to see in the current financial year.
Diploma also said that its life sciences division had enjoyed a particularly strong year, driven by gains in Canada and Australia.
What Diploma said
Commenting on the results, Johnny Thomson, Diploma’s Chief Executive Officer said:
“Diploma has delivered another strong set of results with double-digit revenue and earnings growth in the year. We were also delighted to welcome four new businesses into the group, all of which are strategically important and have exciting prospects.
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“The political and economic outlook remains uncertain, but I am confident our resilient business model will support a consistently strong performance again in the year ahead.
We have also reviewed and refreshed our strategy since I joined. Our plans are about continuity, building on the strong foundations of our value-add distribution model, focusing on the development of the organisation’s capability and on significant growth opportunities in our core markets.”
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