The FTSE-250 company, which supplies products and services to the life sciences, seals and controls industries, raised final dividend by 37 percent to 8.5 pence, taking the total dividend to 12 pence.
The British firm said its profit was boosted by acquisitions completed over the last 18 months, contributing 17.2 million pounds to this year's revenue.
Diploma, which bought healthcare business Carsen Medical in December and merged with AMT's endoscopy business, said it would continue to look at more buyouts.
The company's adjusted operating margin improved to 19.6 percent, reflecting prior year's cost reductions.
October-September adjusted pretax profit rose to 44.9 million pounds, from 32.2 million pounds last year. Revenue was up 26 percent to 230.6 million pounds.
Diploma shares, which have shed 17 percent of their value in the last six months, closed at 302.3 pence on Friday on the London Stock Exchange.
(Reporting by Juhi Arora in Bangalore; Editing by Don Sebastian)