Diales Group (AIM:DIAL), up 7.9% to 30.2p, on Wednesday, posted a 43% rise in underlying operating profit to £1 million for the six months ended 31 March.
Revenue from continuing operations rose 10% to £23.7 million, while gross profit climbed 19% to £6.8 million and gross margin widened to 28.6%.
The underlying operating margin reached 4.4% for the period.
Europe and the Americas were the standout regional performers, delivering underlying profit before tax of £3.9 million against £2.3 million a year earlier.
The Middle East contributed £0.1 million, down from £0.5 million, while Asia Pacific returned to marginal profit at £0.02 million after a £0.1 million loss in the prior-year period.
Group utilisation was broadly stable at 70.2%, compared with 71.4% a year earlier.
Cash generated from operations increased to £1.9 million and net cash rose £1.5 million year-on-year to £3.9 million, with an undrawn £1 million overdraft facility retained.
The group's Building Safety and Fire Engineering service, launched in October 2025, is expected to make its full contribution in the second half.
The board said it remains confident of delivering full-year results at least in line with market expectations.
In a note, meanwhile, stockbroker Shore Capital Markets raised its DCF-derived fair value for Diales Group to 40p from 30p.
Analyst Rob Sanders highlighted that the group "conservatively" expects to deliver FY26 at least in line with market expectations, leaving Shore's forecasts largely unchanged.
