Diploma PLC H1 Profit Rises, Declares Dividend; Upgrades FY21 View – Quick Facts

Diploma Plc (DPLM.L), a supplier of specialised products and services, reported Monday that its first-half pre-tax profit increased to 42.5 million pounds from last year’s 41.6 million pounds.

Earnings per share, meanwhile, dropped to 25.5 pence from 27.4 pence a year ago.

Adjusted earnings per share were 38.4 pence, compared to 32.3 pence last year. Adjusted operating profit grew 33 percent from last year to 66.6 million pounds.

Revenue for the period improved 29 percent to 365.2 million pounds from last year’s 283.6 million pounds, driven by acquisitions. Underlying revenue growth was 2 percent.

Further, the company declared interim dividend of 12.5 pence per ordinary share, an increase ahead of earnings growth reflecting confidence in its growth outlook and future prospects. The dividend’s record date is May 28, and payment date is June 16.

Looking ahead, Diploma said it has started the second half very positively, and upgraded full year performance expectations.

The company now expects reported revenues to be slightly better than 40 percent ahead of FY2020, with an increase in the margin towards 19 percent. This reflects the strong first half, continued excellent performance from acquisitions, WCW in particular, and improving underlying trading momentum in existing business.

Johnny Thomson, Chief Executive Officer, said, “Our performance in the period was very strong and we have exciting trading momentum into the second half, resulting in an upgrade to our full year expectations…. I remain very optimistic about our prospects for the short and long term.”

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