Diploma boosts full-year guidance on bumper trading

(Sharecast News) - Blue chip Diploma hiked its full-year guidance on Wednesday, on the back of robust first-half trading The industrial group, which provides critical products and services to customers in a range of markets, now expects annual organic revenue growth of 9% and an operating margin of 25%. It had previously forecast 6% growth in revenues and a 22.5% margin.

The City was looking for adjusted operating profits of £377m, but Diploma said the new guidance represented a 13% upgrade to that.

Diploma said trading remained "very strong", leaving it "confident in second half momentum".

Driving growth in its controls division were "favourable and sustainable" conditions in the aerospace sector, while its seals unit was being supported by growth in infrastructure and "exciting developments" in nuclear power generation in North America.

Life sciences, meanwhile, was performing "consistently" in a "tough" healthcare market.

Diploma is scheduled to publish interim numbers on 19 May.

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