- Diales Group
- 10 June 2026 12:47:30
Source: Sharecast
The AIM-traded consultancy group said revenue from continuing operations rose 10% to £23.7m in the six months ended 31 March, from £21.6m a year earlier.
Gross profit increased 19% to £6.8m, while gross margin improved to 28.6% from 26.4%, despite market pressures, higher payroll taxes and continued investment in people, systems and technology.
Underlying operating profit before tax rose 43% to £1.0m from £0.7m, with the underlying margin increasing to 4.4% from 3.2%.
Profit before tax increased to £1.0m from £0.6m, while earnings per share rose to 1.2p from 0.7p.
Diales said net cash increased by £1.5m year on year to £3.9m, equivalent to 7.3p per share, from £2.4m and 4.5p per share at the same point last year.
The group maintained its dividend at 0.75p per share.
A final dividend of 0.75p for the 2025 financial year was paid in April, and the board declared an interim dividend of 0.75p to be paid on 23 October.
Operationally, the group reported a utilisation rate of 70.2%, compared with 71.4% a year earlier.
Europe and the Americas delivered underlying profit before tax of £3.9m, up from £2.3m, while the Middle East reported £0.1m, down from £0.5m.
Asia Pacific returned to a small underlying profit of £20,000, compared with a £0.1m loss last year.
Diales said it entered the second half with strong momentum, a robust pipeline and a healthy balance sheet.
The group said it expected a full contribution from a new service line in the second half and remained confident of delivering full-year results at least in line with market expectations.
Chair Nicholas Stagg said the group had delivered a strong first-half performance, reflecting the resilience of its model and disciplined execution of its strategy.
Chief executive officer Mark Wheeler said revenue growth had been supported by sustained demand, a strengthened pipeline and expanding capabilities.
“Profitability improved significantly, with both operating profit and gross margins increasing, reflecting operational leverage and disciplined execution,” he said.
Wheeler said strong cash generation and a healthy balance sheet supported continued investment in talent, technology and new service lines, adding that the business remained resilient despite regional uncertainties, particularly in the Middle East.
At 1107 BST, shares in Diales Group were up 9% at 30.52p.
Reporting by Josh White for Sharecast.com.
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