21st Jul 2022 11:34
(Alliance News) - Diploma PLC on Thursday backed its full-year guidance and reported strong revenue growth for the first nine months of its financial year, due to a contribution from acquisitions.
Shares were up 5.3% at 2,696.00 pence each on Thursday in London.
The London-based specialised technical products and services company reported organic revenue growth of 15% in first nine months to June 30, compared to the same period a year before.
Over its third and most recent quarter, the company recorded organic growth of 13%.
Meanwhile, reported revenue growth over the whole nine month period totalled 26%.
Diploma said that this reflected a good contribution from acquisitions and a foreign exchange tailwind of roughly 2%.
Encouraged by its performance over the last months, the company backed its guidance for the year ending September 30.
It expects low double digit organic revenue growth and reported revenue growth a little over 20%.
Further, it anticipates its operating margin to come in at the top end of its 18% to 19% guidance.
Diploma will release its full-year results on November 21.
"Whilst the wider macroeconomic outlook is uncertain, the group's resilience is supported by our increasing revenue diversification, our value-added model, and strong cash generation and balance sheet. We remain focused on executing our strategy of building high-quality, scalable businesses for organic growth and are confident in our long-term prospects," Diploma said.
By Abby Amoakuh; [email protected]
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