Diploma PLC (LSE:DPLM) led the FTSE 100 higher on Monday on the back of a good set of half-year results that were boosted by acquisitions.
The acquisitive seals, gaskets and cylinders distributor reported revenue up 10% to £638.3 million in the six months to 31 March. This was less than the average analyst forecast.
Of this, organic revenue growth was 5%, led by sales volumes with "good momentum" into the second half of the year. There was 8% growth from acquisitions and an adverse 3% impact of foreign exchange translation.
Adjusted operating profit rose 14% to £125.4 million, ahead of consensus forecasts. A 17.3p interim dividend was recommended, up 5%.
Chief executive Johnny Thomson hailed the "good volume-led organic growth in a more challenging market environment", helped by six new businesses being added into the group since the start of the year, including Peerless Aerospace Fasteners.
"Our momentum is encouraging going into the second half, underpinning our upgrade to full year guidance."
The board now expects constant currency revenue growth of roughly 16%, comprising 6% organic growth and 10% from acquisitions, and an operating margin strengthening from 19.6% in the first half to around 20.5%.
The shares rose over 7% in early trading to 4,180p, pushing new all-time highs.