Diploma (LSE:DPLM), the FTSE 100 value-add solutions group, said organic revenue growth reached 15% in the third quarter, extending momentum built in the first half of its financial year to 30 June.
The group now expects full-year organic revenue growth of 14%, up from its previous guidance of 12%, with operating margin forecast at approximately 26.5%, up from around 25%.
Diploma said operating profit is expected to grow by approximately 42%, a around 7% upgrade to analyst consensus, which stood at £454m for adjusted operating profit as of 15 July.
Controls delivered "excellent execution in favourable market conditions", with double-digit growth at IS Group, Clarendon, Peerless and Windy City Wire, while Seals improved on its first-half performance and Life Sciences held up in what the company described as challenging markets.
Diploma completed the acquisition of CDM on 25 June, which it said establishes a US interconnect platform with positions principally in the defence sector.
The company said it retains a strong acquisition pipeline and significant balance sheet headroom, while acquisitions announced to date remain expected to add 6% to reported growth, unchanged from prior guidance.
Diploma will report full-year results on 17 November.
