Diploma shares surge as raises outlook amid 'very strong' trading
Diploma PLC on Wednesday said trading remains ‘very strong’ as it announced a ‘significant’ increase to full-year guidance.
The London-based supplier of specialised technical products and services now expects organic revenue growth of 9% in the financial year to September, up from 6% previously.
The FTSE 100 listing expects an operating margin of around 25%, raised from around 22.5% before.
Net acquisition growth was left unchanged at 3%. It had been raised from 2% in January.
Overall, Diploma said this represents an around 13% upgrade to consensus operating profit for the financial year, which it currently puts at £377 million.
In the financial year to September 2025, Diploma reported revenue of £1.52 billion, adjusted operating margin of 22.5% and adjusted operating profit of £342.7 million.
‘We expect another year of sustainable quality compounding, with earnings growth over 20% at strong returns on capital,’ the firm said in a statement.
Trading remains ‘very strong’, and the firm said it was confident in second half momentum.
In response, shares in Diploma soared 16% to 5,840.00 pence each in London on Wednesday. The wider FTSE 100 was up 0.2%.
In Controls, Diploma said aerospace demand and supply characteristics are ‘favourable and sustainable’, while other businesses in the division are also growing ‘strongly’.
It expects another ‘outstanding’ organic growth performance in the first half at aerospace unit Peerless, with the second half returning to more typical growth rates against very strong comparators.
North American Seals continues to show good progress, but International Seals remains ‘challenging’, Diploma said, particularly in the UK, which will hold back overall Seals first half growth rates.
Life Sciences is performing ‘consistently’ in a tough healthcare market, the firm added.
Margins continue to expand driven by accretive contribution from Peerless and steady accretion across the rest of the group, Diploma said.
The firm added that acquisition momentum ‘continues’ but potential deals are not reflected in guidance.
Diploma releases half-year results on May 19.
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