Diploma Shares Slide as CFO Steps Down Immediately Due to Conduct Issues

Shares in Diploma PLC (LON: DPLM) fell more than 3% on Thursday after the company announced that Chief Financial Officer Chris Davies had resigned with immediate effect over conduct concerns.

The FTSE 100 engineering supplies group said Mr Davies’ departure followed “a recent company event where, through a lapse in judgement, his personal behaviour did not meet the high standards required of the Group’s leadership team.”

Diploma emphasised that the resignation was not related to its financial performance, adding that guidance for the 2025 financial year remains unchanged.

Wilson Ng, Group Financial Controller, has been appointed Acting Group CFO while the company begins the search for a permanent successor.

The announcement sent Diploma shares down 3.1% to 5,265p, though the stock remains close to record highs. The shares are still up 24% year to date and 27% over the past 12 months.

According to TradingView data, 10 of 14 analysts covering the stock have a “buy” rating, three rate it “hold” and one has a “sell” recommendation.

The consensus price target from 13 analysts stands at 5,385p, implying a 2.4% upside from current levels.

Diploma has delivered consistent growth in recent years through acquisitions and demand in its life sciences, seals and controls segments.

The company’s strong share price performance and positive analyst sentiment suggest investors are focused on operational momentum, though the abrupt leadership change has introduced some near-term uncertainty.