Diploma (DPLM) stock hits all-time high on soaring profits
By Jenni Reid
09:22, 22 November 2021
UK-based technical supply firm Diploma (DPLM) was the top riser in the FTSE 250 in early Monday trading as it reported revenue and profit increases in its full-year results.
DPLM stock was up 5.18% at a record high of 3,378p at 8:45 GMT. Its value has risen more than 50% in the year to date.
That followed preliminary results for the year to 30 September, which showed adjusted operating profit 71% higher at £148.7m ($199.8m), while revenues of £787.4m reflected underlying growth of 12%.
Adjusted earnings per share rose from 56.4p to 85.2p, though free cash flow was slightly lower at 103%, down from 113%.
Diploma’s dividend per share for the full year increased from 30p to 42.6p.
Diploma, which is a group of businesses making products such as seal kits, electrical cable accessories and medical devices, said sales were up across its Controls, Seals and Life Sciences divisions.
Factors behind the rise included diversification initiatives at several businesses, strong performances by newly-acquired companies and a sharp recovery in Life Sciences due to increased access to hospitals and labs.
Diploma spent £465m on a record 10 acquisitions over the year, including £348m on US low-voltage wire and cable firm Windy City Wire.
Chief executive Johnny Thomson called it an “outstanding year in very challenging circumstances,” which included uncertainty in markets, labour shortages and the global supply chain crisis.
The company said its outlook for the full year 2022 was unchanged at around 10% revenue growth and mid-single digit underlying revenue growth.