It has not been a great start to the year for investors in the distribution firm Diploma. Shares in the stellar pandemic-era performer have fallen 15 per cent since the beginning of January, versus the 3 per cent decline in the FTSE 250.
Any investors fearing that Diploma is set for a revenue slump this year should have at least been reassured by first-quarter trading. The group, which sources and provides industrial seals, gaskets, specialist wiring and cabling, as well as healthcare equipment, reported underlying revenue growth of 16 per cent. While that rate should moderate as it laps last year’s post-pandemic bounce, investors can still expect revenue growth of a tenth this year.
Some heat coming out of the shares is unsurprising. Diploma
