Diploma backs FY guidance after 'strong' Q3; chairman to retire

Diploma said on Thursday that it was on track to meet expectations for the full year after a "strong" third quarter, as it announced the departure of chairman John Nicholas.

In an update for the nine months to 30 June, the company said its third-quarter performance continued to be strong and in line with expectations. In the nine-month period, underlying revenues rose 11%, with "very good" trading trends in all three sectors.

Diploma said underlying revenues are ahead of pre-Covid levels, up 6% over the same period in 2019.

Reported revenue growth came in at 42%, reflecting a strong contribution from acquisitions, while Windy City Wire continues to deliver an "excellent" performance.

The group also said that it is continuing "to focus on managing supply chain pressures and a tightening labour market".

"Our operating margin remains on track with our full year guidance of towards 19%," it said.

"Current trading remains strong. Our full year expectations are positive and unchanged and we remain confident in the group’s long term prospects."

The update came alongside news that chairman John Nicholas plans to retire in the early part of next year after more than six years in the role. Diploma said the process to appoint a successor has already begun, led by senior independent director Anne Thorburn.