Diploma (LSE:DPLM) reported revenue for the six months to 31 March of £851.1m, up 17% from £728.5m, with organic revenue growth of 15%, adjusted operating profit of £208.9m (up 33%) and an adjusted operating margin of 24.5% (up 300bps).
"We're confident in our upgraded full year guidance," said Johnny Thomson, Chief Executive, reflecting management's view that strong H1 momentum should continue into H2.
Adjusted earnings per share rose 36% to 109.2p (basic EPS 74.7p), free cash flow was £110.7m with 76% conversion, leverage fell to 0.8x and the board declared an interim dividend of 19.1p, up 5%.
Acquisitions remain a material growth lever with 15 deals in the last twelve months for c.£310m at an average 8x multiple and seven deals since the Q1 update for c.£180m at c.9x including CDM, a c.$80m‑revenue US interconnect business into defence (subject to regulatory approval).
By sector, Controls led with c.+26% organic growth, Seals delivered c.+2% with North America progressing, and Life Sciences grew c.+4% as the group pointed to attractive end markets and significant balance sheet headroom.
