FTSE 100 listed company Diploma PLC saw its share price jump more than 17 per cent on Wednesday.
Investor confidence soared after the London-headquartered industrial group announced a significant upgrade to its financial guidance for FY26.
Diploma, which provides critical products and services to customers across a wide range of markets, now expects 9 per cent organic growth (up from 6 per cent) and operating margins of c.25 per cent (up from c.22.5 per cent).
The upbeat predictions follow the strength of Diploma’s businesses through the first half of the year and its confidence in continued momentum through the second half.
The company’s share price soared from 5,030p (£50.30) to 5,925p (£59.25) on the back of the update.
Diploma is an active acquirer of specialised technical businesses and recent acquisitions include Swift Aerospace; Hydraulic Seals Australia, WDS and Spring Solutions.
The acquisitions support Diploma’s organic growth strategy in markets across North America, Europe and Australia.
A company spokesman said: “With a healthy short-term pipeline, we feel optimistic about this momentum continuing in the months ahead. Potential acquisitions are not reflected in our guidance.”
Diploma employs c.3,400 colleagues across the group, primarily across the UK, US, Canada, Europe and Australia.
Over the last seven years, the group has grown adjusted earnings per share (EPS) at an average of c.18 per cent p.a. through a combination of organic growth and acquisitions.
Johnny Thomson has been chief executive since 2019.