Diploma PLC on Monday announced its first set of annual results since being promoted to London’s large-cap FTSE 100 index earlier this year, reporting double-digit profit and revenue growth.

Shares in Diploma were up 6.4% at 3,212 pence each in London on Monday morning.

The London-based supplier of specialised technical products and services said revenue rose 19% year-on-year to £1.20 billion from £1.01 billion, or 8% on an organic basis - ahead of its own forecast of 7%.

The boost in revenue was supported by 12 ‘quality acquisitions’, Diploma said, which represents 8% of

growth.

Meanwhile, pretax profit rose 20% to £155.6 million from £129.5 million. Adjusted operating profit rose 24% to £237.0 million, which was ahead of company-compiled analyst consensus expectations of £230.9 million.

The company upped its final dividend by 3.1% to 40.0 pence per share from 38.8p in financial 2022. It raised its total dividend to 56.5 pence per share from 53.8p, which fell slightly short of expectations of 59.8p.

Looking ahead, Diploma said it is ‘confident’ in its prospects, stating that it expects growth in financial 2024 to be in line with its long-term financial model. It expects volume-led organic revenue growth of around 5% and an operating margin of around 19.7%.

Chief Executive Johnny Thomson commented: ‘We’ve had an excellent year with strong, volume-led organic growth; great margin progression; and continued double-digit [earnings per share] growth, all at strong returns. We continue to diversify end-market exposures, penetrate core geographies; and expand addressable markets through product extension to drive organic growth...We are encouraged by momentum into [financial 2024] and we are confident of continuing to deliver sustainable quality compounding.’

Diploma entered the FTSE 100 after an index review which came into effect in September.

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