The Diploma PLC Board has a progressive dividend policy that aims to increase the dividend each year, broadly in line with growth in adjusted EPS. The combination of strong results and free cash generation, supported by a robust balance sheet, has led the Board to recommend a 51% increase in the final dividend to 30.1p (2020: 20.0p) taking the total dividend for the year to 42.6p (2020: 30.0p). This represents dividend cover of 2.0x, in-line with their model. Subject to shareholder approval at the Annual General Meeting ("AGM"), this dividend will be paid on 4 February 2022 to shareholders on the register at 21 January 2022.
Other financial highlights include:
Underlying revenue growth 12% year-on-year, well ahead of their 5% financial model and 7% up on FY 2019, driven by their organic growth initiatives and better demand.
Strong overall acquisition contribution with an outstanding Windy City Wire ("WCW") performance.
Adjusted operating margin +270bps to 18.9%, supported by value-add servicing distribution model, offsetting inflation, and well ahead of their 17%+ financial model.
51% growth in adjusted earnings per share ("EPS").