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LONDON - Diploma PLC, a leading international group of businesses supplying specialized technical products and services, announced a strong financial performance for the first half of the fiscal year ending March 31, 2025. The company reported a 14% increase in revenue to £728.5 million compared to £638.3 million in the same period last year.
Organic revenue growth stood at 9%, a significant rise from the previous year’s 5%. Adjusted operating profit saw a substantial increase of 25%, reaching £156.9 million, up from £125.4 million in the prior year. This was accompanied by an expansion in the adjusted operating margin, which grew by 190 basis points to 21.5%.
The company’s statutory operating profit also saw a notable rise to £139.4 million. Free cash flow improved to £83.8 million, with a free cash flow conversion rate of 78%. Adjusted earnings per share increased by 23% to 80.2p, and the interim dividend per share was up by 5%, at 18.2p.
Diploma’s leverage ratio was reported at 1.1 times, while the return on adjusted trading capital employed (ROATCE) climbed by 110 basis points to 19.1%.
The company’s CEO, Johnny Thomson, attributed the robust performance to the hard work of Diploma’s employees and the company’s differentiated business model, which includes a diversified portfolio of high-quality businesses. Despite uncertain market conditions, Thomson expressed confidence in the company’s ability to meet its upgraded full-year guidance, which forecasts an 8% organic revenue growth and an operating margin of approximately 22%.
Sector performance highlights include a 16% organic growth in the Controls sector, driven by strong execution and structural tailwinds. The Seals sector showed resilience with 0% organic growth in challenging markets, while the Life Sciences sector achieved a 6% organic growth, propelled by share gains in medtech and in vitro diagnostic markets.
Diploma’s interim dividend of 18.2p per share will be paid on June 13, 2025, to shareholders registered as of May 30, 2025. The company’s detailed financial statements have been made available on the Financial Conduct Authority’s National Storage Mechanism and the corporate website.
This report is based on a press release statement.
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