Diploma, a leading U.K. supplier of specialized technical products and services, has announced a strong performance in the first quarter of the new fiscal year. Building on the momentum from the previous year, the company remains confident in achieving its full-year guidance.
Organic Revenue Growth and Acquisitions Drive Success
During the quarter ended December 31, Diploma experienced a 6% growth in organic revenue. This growth was mainly driven by strong performances in the controls and life sciences sectors, while the seals business also performed robustly. The company reported a total revenue increase of 10% for the period, with acquisitions contributing 8% to this growth.
Outlook and Guidance
Diploma reiterates its expectation of a 5% organic revenue growth for fiscal year 2024, accompanied by a strong operating margin in line with the previous year at 19.7%. Despite the uncertain economic outlook, the company’s resilient business model and impressive start to the year instill confidence in maintaining its unchanged full-year guidance.
Shares of Diploma were down 2.6% at 3,252.0 pence as of 0944 GMT. However, the stock has seen a considerable increase of 14% over the past 12 months. In contrast, the FTSE 100 index is currently down around 1.7%.