Diploma PLC (LSE:DPLM) confirmed its forecast for 10% revenue growth in the current year as it reported a strong performance for the 12 months to end-September 2021, although it cautioned that market conditions remain uncertain.
Revenue grew to £787.4mln from £538.4mln the previous year on the back of organic growth and improved demand, the specialised products and services company said in a statement.
Adjusted operating profit soared by 71% to 148.7mln and the adjusted operating margin rose to 18.9% from 16.2%. Pre-tax profits, stated after acquisition-related costs of £44.4mln, increased to £96.6mln from £66.7mln.
The company raised its final dividend by 51% to 30.1p, giving a total payout of 42.6p, up from 30p.
Looking ahead, Diploma said the market environment remains uncertain and that it continues to manage supply chain constraints and labour shortages.
It reaffirmed its guidance for the year to September 2022 of 10% growth in reported revenue, including mid-single digit underlying revenue growth.
It forecast a margin between 18% and 19%.
Commenting on the results, Diploma chief executive Johnny Thomson said that despite market uncertainties, “I remain confident in our ability to deliver attractive long-term growth at sustainably high margins".
The company said it saw strong underlying growth in all its sectors during the year.
The Controls business delivered 16% underlying growth, boosted by a strong contribution from acquisitions with an outstanding performance from Windy City Wire (WCW).
Underlying growth at the Seals unit was 7%, while the Life Sciences operation saw 14% underlying growth, reflecting a sharp recovery as it regained access to hospitals and laboratories after COVID-related restrictions.