DCC reports solid start to year on strong first quarter
Shares in business services group DCC rose slightly in trading yesterday after the company reported a solid start to the year.
Shares were up after the company published an interim management statement outlining financial results for the first quarter 2012, which runs from the start of April to the end of June.
DCC said it achieved good operating profit growth on continuing activities, on a constant currency basis, for the quarter.
The group said trading at its biggest division, energy, was running ahead of budget thanks to favourable weather conditions, though the division which draws the bulk of its income from the UK home heating market is heavily dependent on the winter trade in terms of its overall performance.
Trading at the healthcare and environmental divisions is running ahead of last year, the company said. However, the trading environment for IT division, SerCom, is described as "challenging."
The business, which is based in Ireland, but makes most of its income abroad, said guidance for the full year to the end of March 2013 was unchanged.
Management said operating profit and earnings per share were both expected to rise by 15pc for the year.
The highly acquisitive group outlined plans for further bolt on deals throughout this year, thanks to a strong balance sheet.
Shares in DCC were up 0.3pc at €19.6 yesterday, valuing the business at €1.6bn.