Diploma PLC says first-half performance ahead of its expectations

() saw a strong performance for the first half, ahead of its expectations, the technical products supplier said in a trading update for the six months to end March 2021.

Underlying revenue is expected to be in line with the pre-COVID-19 prior year period, with good progress in all three sectors, it said.

Revenue is expected to grow 27%, reflecting a strong contribution from acquisitions.

Operating margin is expected to be at the upper end of the group’s FY21 target range of 17-18%, due to tight cost control and a positive impact from the acquisition of Windy City Wire (WCW).

“We continue to make progress with initiatives to drive organic growth, broadening and diversifying our businesses for scale in our core products and markets. During the period, WCW has delivered an excellent performance and we have also invested nearly £50mln in three high quality, strategically important bolt-on acquisitions,” Diploma said.  

“For the full year, the strong trading performance is expected to offset the foreign exchange impact from the strengthening of sterling. Our expectations for the full year remain positive and unchanged.”

Current market consensus for the year to end September 2021 is for revenue of £742mln and adjusted operating profit of £133mln.

The company, which supplies products from fluid seals to testing equipment for laboratories, posted revenue of £544.7mln in the year to end September 2020.