DIPLOMA PLC has released its half-year results for the six months ended 31 March 2024, showing a strong performance with a 10% increase in revenue to £638.3m and a 14% rise in adjusted operating profit to £125.4m. The company's organic revenue growth was 5%, driven by volume, and it achieved a free cash flow of £66.3m, marking a 28% increase from the previous year. The adjusted earnings per share also saw a 10% rise to 65.1p.
The company attributes its success to various factors, including its value-add proposition, operational leverage, disciplined cost management, and accretive acquisitions. It invested approximately £284m in six acquisitions, including Peerless for around £236m and PAR Group for about £38m. These acquisitions are expected to contribute to the company's upgrade in guidance, with an anticipated constant currency revenue growth of around 16% for the full year and an operating margin of approximately 20.5%.
DIPLOMA PLC's CEO, Johnny Thomson, expressed gratitude to the company's employees for their dedication and highlighted the strong first half performance, especially in a challenging market environment. The company's revenue diversification strategy has driven organic growth and increased resilience, with strong performances in its Controls, Seals, and Life Sciences segments.
The company's recent acquisitions, such as Peerless and PAR Group, are expected to drive future organic growth, with Peerless projected to deliver 15% return on average total capital employed (ROATCE) and 8% earnings per share (EPS) accretion in the first year. Additionally, DIPLOMA PLC has strengthened its balance sheet through refinancing and is upgrading its full-year 2024 guidance, reflecting the momentum in its underlying business and the contribution from recent acquisitions.