Diploma backs guidance as FY profits rise

In the year ended 30 September, adjusted pre-tax profit rose 68% to £141.9m, while underlying revenue grew 12% and reported revenues were up 46% on the year to £787.4m. Diploma said this includes a "very pleasing" contribution from acquisitions, particularly Windy City Wire.

The group said growth was balanced across all three sectors, driven by its organic revenue initiatives and recovering demand. "Supply chain disruption, labour and inflation have presented challenges, but also create an opportunity to differentiate," it said.

The company’s outlook for FY22 was unchanged and it continues to expect around 10% reported revenue growth, including mid-single digit underlying revenue growth, and a margin between 18% and 19%.

Chief executive Johnny Thomson said: "We have delivered strong results, including underlying growth and margin well ahead of our financial model. We have made significant strategic progress, including a record year for acquisitions, as we continue to develop high quality scalable businesses for organic growth.

"We are excited by the progress we have made with our Delivering Value Responsibly agenda, with clear priorities which we are embedding in our business activity. So, despite market uncertainties, I remain confident in our ability to deliver attractive long-term growth at sustainably high margins."