We have said it before, but there’s nothing better than a ‘boring’ company which quietly goes about its business and compounds earnings at a higher rate than the market, and once again specialist distributor Diploma (DPLM) has proved our point.

The group, which makes and distributes seals, controls and life sciences equipment to customers across the globe, posted a short third-quarter trading update revealing organic sales growth had hit 10% over the nine months to June and it was raising its full-year guidance.

For the second time this year, the firm increased its like-for-like revenue growth forecast, this time from 8% to 10%, while maintaining its 22% operating margin target.

Diploma also said it had made two ‘quality’ acquisitions during the year, a Danish seals business and a UK in vitro diagnostics company, signaling its entry into a new market.

Acquisitions are key to the long-term growth of the business – last year the company acquired US-based Peerless Aerospace Fastener for £236 million with the assurance it would deliver a high-single-digit lift to earnings in its first year.

Fast-forward to May this year and the firm reported a 14% increase in first-half revenue, driven by 9% organic growth at the group level and 16% in Controls, where the firm said Peerless had ‘excelled’. 

‹ Previous2025-07-24Next ›