Diploma PLC on Wednesday said it has maintained business momentum in its new financial year, and it anticipates further revenue growth ahead.

London-based supplier of specialised technical products and services said in its first financial quarter to December 31, performance was in line with its own expectations.

Diploma said organic revenue grew 6% year-on-year. Reported revenue was up 10%. This included an 8% contribution from acquisitions, offset by a 4% hit from currency movements.

Three acquisitions in the first quarter for a total of £9.5 million drove ‘strong return on capital’, Diploma said.

For the financial year ending September 30, Diploma expects organic revenue growth of about 5%, with acquisitions to date adding about 6% to reported revenue growth. It expects a ‘strong’ operating margin in line with financial 2023 at 19.7%.

Diploma shares were down 1.8% to 3,278.00 pence each on Wednesday morning in London.

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