What we've delivered
A long record of compounding growth
Diploma has a decades-long track record of strong returns and compounding growth, which has accelerated under current leadership.
how we can keep on delivering
We really understand what is important in driving compounding growth at great returns and we work hard every day – with ambition and discipline – to strengthen the building blocks of our success.
We have great organic growth potential. We seek to accelerate this further through high-quality acquisitions and by actively scaling our group and our businesses to sustain strong growth over the long term – building capability and improving processes. Our margins are structurally strong, driven by great value-adding customer propositions. We allocate capital with great discipline – intensely focused on returns.
Ambitious growth
Differentiated value-add business model
Structurally growing end market exposure
Significant white space
Quality and diversity of portfolio
Fragmented markets and large acquisition pipeline
Strong M&A competitive advantage
Disciplined delivery
Intensely returns focused
Highly cash generative
Disciplined capital allocation
Tight portfolio management
Depth and quality of management
Powerful decentralised culture
1. Organic growth potential
#1
organic growth is our priority
7%
organic growth over the past 7 years (CAGR)
Structurally growing end markets
Increasing exposure to structurally growing markets – including aerospace, defence, datacentres, clean energy, water treatment and diagnostics – supports long-term growth.
Significant white space
We have significant white space opportunity for further geographic penetration in developed markets, and for product extension, broadening our offering.
Quality and diversity of portfolio
We invest in great businesses and work hard to make them even better. The diversity of our portfolio brings resilience to our performance and gives us great opportunities for broad-based growth.
2. Acquisitions
>57
acquisitions since 2019
~£1.6bn
invested
+20%
return on capital
Large pipeline of opportunities across fragmented markets
Having a large pipeline gives us the ability to be discerning about the businesses we buy. The market fragmentation gives us confidence in the sustainability of a strong and large pipeline into the future.
Long term pipeline
>4,000
Well diversified
(by number of opportunities)
Active opportunities
>60
By sector
By geography
Depth and quality of management
We look for businesses with quality management teams that will add to our strong bench of leaders. We’re focused on developing our people, building capability and creating a deep pool of strong leaders to support future succession.
Strong M&A competitive advantage
With our powerful decentralised culture, Diploma is a great home for quality businesses ready for the next stage of growth under new ownership. We support continued growth while preserving the rich heritage and culture of businesses we welcome into our portfolio.
3. High margins
Our strong value-add customer propositions and the discipline we bring to every aspect of managing the group drive high margins.
Differentiated value-add business model
Our value-added services far exceed the cost of the product which drives loyalty and share of wallet, a strong reputation and growing market share, pricing power and high margins. The first thing we look for in potential acquisitions is a compelling and enduring value-add customer proposition.
4. Great returns on capital
Intensely returns focused
Our optimal returns range is high-teens, while deploying significant capital with discipline.
19.3%
return on capital over the past 7 years (Return on Adjusted Trading Capital Employed (ROATCE))
Disciplined capital allocation
We are a capital-light business. We invest selectively to support growth at high returns. Our main use of capital is to make targeted acquisitions to accelerate future organic growth. We are incredibly disciplined in our investment decisions with an intense focus on returns.