Irish company DCC sees annual profit growth of almost 21pc
DCC, the Irish-based international sales, marketing and business support services group, has today announced annual operating profit growth of 20.9pc to £345m (€406.5m).
Approximately one-third of the operating profit growth was organic, with the remaining growth mainly due to the contribution of acquisitions in DCC Energy.
The company, which operates through the divisions of energy, healthcare, technology, and environmental, saw revenue from continuing operations increased by 17.4pc over the twelve months to £12.3bn.
DCC owns Flow Gas and EMO in Ireland.
“The year ended 31 March 2017 has been a strong year of growth and development for DCC. The results reflect the continued successful execution of our strategy in significantly growing our operating profits, converting those profits into cash and re-deploying capital into our energy, healthcare and technology businesses,” Tommy Breen, ceo of DCC, said.
Over the twelve months the company enjoyed an excellent cash flow performance, with free cash flow conversion of 114pc and a return on total capital employed of 20.3pc.
The increase in the price of oil through the year would have been a contributory factor to the better working capital.
Read more: DCC buys Norwegian Esso chain for €273m
The company ended the year with net debt of £122m, an increase of £68.4m from the year-ended 31 March 2016, and average net debt during the year was £301m compared to £185m during the year ended 31 March 2016.
However the debt levels reflect the full year impact of the completion of the acquisitions of Butagaz and Esso Retail France during the prior year and the aggregate spend of £394m on acquisitions and net capital expenditure in the current year.
The company pledged to commit at least another £550m to acquisitions, including the agreed acquisition of Esso’s retail network in Norway, the agreed acquisition of Shell’s LPG business in Hong Kong & Macau, DCC’s first material step beyond Europe, and further acquisition activity across DCC Energy, DCC Healthcare and DCC Technology.
Speaking on Rte Radio One, Breen said he hoped that Hong Kong can provide an LPG business base for DCC outside of Europe.
The company has agreed on the disposal of its environmental division for an enterprise value of £219m which it says “brings increased strategic focus to the Group”.