Diploma shares surged on Tuesday after the group said it expects full-year revenue growth to come in significantly above previous forecasts.
The FTSE 250-listed specialised products and services supplier enjoyed double digit growth in the three months ending 31 March, driven by, among other things, strong demand and market share gains.
Diploma said its operating margin performance was encouraging amid high inflation, supply chain challenges and tight labour markets.
Upbeat: FTSE 250-listed Diploma has updated its 2022 guidance today
Shares in Diploma have jumped sharply today and were up 10.75 per cent or 270.00p to 2,782.00p this afternoon. Over the past year, however, the group’s share price is up by only 1.5 per cent.
Diploma said today: ‘While the situation in Ukraine and Russia has not directly impacted our businesses, we are closely monitoring the wider economic trading environment.
‘Our strong trading to date, acquisitions and confidence in our prospects mean we now expect full year performance to materially exceed our previous guidance.
‘Underlying revenue growth is expected to be low double digit, well ahead of our model.
‘This reflects our expectation that growth will moderate in the second half, particularly as comparators become more demanding.’
Industrial parts distributor Diploma said its acquisition strategy remained a crucial focus of the business, noting that it had recently acquired ‘two high quality businesses for a combined consideration of ca. £121million’.
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