Achieve double digit growth in adjusted EPS over the business cycle

Adjusted earnings per share (“EPS”), measured over the business cycle, provides an absolute benchmark of the Company’s performance. Over the last ten years, adjusted EPS has grown at a compound growth rate of 14% p.a. through a combination of steady organic growth and carefully targeted acquisitions.

Generate TSR growth in the upper quartile of the FTSE 250

Total shareholder return (“TSR”) is the growth in value of a share plus the value of dividends reinvested in the Company’s shares on the day on which they are paid. This is measured against the TSR growth of the FTSE mid-250 index (excluding investment trusts) (“FTSE 250”). The last ten years have seen a compound TSR growth for Diploma of 21% p.a., which represents upper quartile performance as compared with the FTSE 250, where median TSR growth has been 7% p.a.

Deliver progressive dividend growth with two times dividend cover

Diploma follows a progressive dividend policy with a target cover of two times on an adjusted EPS basis. Over the last ten years, dividends have steadily grown at the rate of 16% p.a. and this continues the trend of increasing dividends in each of the last 18 years.