Monday 23 October 2017

DCC reaffirms guidance of "very significant growth" despite being hit by weak tablet computer sales

DCC Chief Executive Tommy Breen
DCC Chief Executive Tommy Breen
Gavin McLoughlin

Gavin McLoughlin

Dublin-based conglomerate DCC has reaffirmed its guidance of "very significant growth" in its current financial year, despite its technology arm being hit by weak sales of tablet computers.

The company said operating profit for the first quarter ending June 30 was in line with budget, with strong growth across its energy, healthcare and environmental businesses.

However, the company said trading in its technology business was "behind budget and the prior year".

"As anticipated, the business in the UK continues to be impacted by the weak tablet market and by reduced sales of mobile computing and smartphone products of one large supplier. The UK business was also impacted by weaker demand and increased competition across a number of product sectors," DCC said in an interim management statement issued to the stock exchange this morning.

The company added that the guidance is based on the assumptions that its acquisition of French bottled gas company Butagaz will be completed in the last three months of 2015, and that there will be normal winter weather conditions.

"DCC's profits are significantly weighted towards the second half of its financial year. At what is still a very early stage in the financial year, the Group continues to anticipate that operating profit and adjusted earnings per share, on a continuing basis, will be very significantly ahead of the prior year," the statement said.

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