Diploma PLC on Wednesday hailed a strong start to the new year, with a solid performance in the first quarter on revenue diversification.

The London-based supplier of specialised technical products and services said that first quarter trading has been in line with expectations, setting organic revenue growth expectations for the period at 10%.

In the year to date, Diploma said it has seen reported revenue growth of 30%.

It attributed its performance thus far to broad based momentum in the Controls division, alongside sustained strong growth at Seals, and anticipated sustainable growth at Life Sciences as surgical procedures continue to recover.

The company also remained encouraged by its acquisition pipeline, celebrating two small bolt-on acquisitions completed at unspecified, ‘attractive’ valuations. Acquisitions have contributed 11% to revenue growth in the year-to-date.

Looking ahead, Diploma is confident of delivering on its full year guidance of mid-to-single-digit organic revenue growth, weighted towards the first half.

Acquisitions are expected to add 6% to reported growth, while the operating margin is anticipated between 18% and 19%.

Half year results will be published on May 15, 2023.

Diploma shares were trading 0.2% higher at 2,854.00 pence each in London on Wednesday morning.

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