Chances are you probably haven’t heard of the company Diploma. It is an anonymous name with a pretty anonymous business distributing niche products that are not exactly at the sexy end of the corporate world. That is a shame, as investors with shares in Diploma are likely to do very nicely.
The FTSE 250 company distributes goods across three main categories: life sciences, seals, and controls. It benefits from being spread across the globe, with about 40 per cent of its revenues coming from Canada and America, 26 per cent from continental Europe, 22 per cent from Britain and 11 per cent from the rest of the world.
Diploma’s seals division mostly supplies the North American market with products for hydraulic parts on large construction