Shares in Diploma have risen by over 14% after the distribution group reported a 25% increase in its operating profit to £156.9m in its half-year results.

The FTSE 100 firm also saw its revenue jump by 14% to £728.5m in the six months to 31 March, while its earnings per share increased by 23% to 80.2 pence per share.

Across its three sectors, controls recorded a 16% increase in organic growth, which Diploma said was supported by a strong execution supported by structural tailwinds.

Its life sciences sector saw organic growth of 6%, while its seals sector growth remained flat year-on-year.

Chief executive at Diploma, Johnny Thomson, described the update as a "successful first half" for the company.

He added: "The results are very strong. They demonstrate our sustainable quality compounding with excellent earnings growth at fantastic returns on capital. We have a differentiated business model with a well-diversified portfolio of high-quality businesses, allowing us to deliver compounding growth in good times and bad.

Looking ahead, Diploma said it was recording "positive momentum" into the second half.

In its update, the firm upgraded its guidance for the current financial year, with organic revenue set to increase by 8%, up from a previous estimate of 6%, while its operating margin is expected to reach 22%, a slight increase on previous guidance set at 21%.

Thomson stated: "Despite the uncertain environment I feel confident in our ability to deliver on our upgraded guidance this year. And I'm really excited about our longer-term prospects too."

Investment director at AJ Bell, Russ Mould, described the firm as one of the day’s "big winners in London".

He concluded: "It announced a big increase in first-half profit, raised its growth forecast for the current financial year, and sounded a bullish tone about the longer term. This provided some reassurance to investors that the company can deliver, even against an uncertain and tricky economic backcloth."

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