Distribution group Diploma has hiked full-year dividends after profit jumped by a fifth following a number of acquisitions.
The FTSE 100 firm reported an adjusted operating profit of £285m, up 20 per cent from last year’s £237m.
Revenue rose 14 per cent to £1.4bn.
It means investors can expect a bumper 59.3p dividend, up five per cent year-on-year, with adjusted earnings per share at 145.8p, up 15 per cent.
Chief executive Johnny Thomson said it had been “another excellent year… I am pleased with our organic growth, our margin progress, and the acquisitions we’ve made.
“Our discipline has been equally important: delivering great returns, cash flows, and selling some non-core businesses.
Thompson said while the company had grappled with a “tougher environment” in 2024, he was “feeling positive about the year ahead, and our long term prospects.”
Shares are up over 30 per cent since January.
Diploma completed a string of acquisitions this year, including a blockbuster £243m deal to buy aerospace supplier Peerless, and a £37m takeover of PAR Group, a supplier of plastic, rubber and insulation products.
The former deal sent shares to an all-time high in March as Diploma forecast eight per cent earnings per share accretion during the first 12 months of ownership.
The group said on Tuesday it expected acquisitions announced to date to add around two per cent to revenue and bring operating margins to 21 per cent.