DCC safe from Brexit as profits surge in opening quarter
Diversified Irish distribution and logistics group DCC will be safe of any material impact on its business following the UK's decision to leave the EU.
DCC said it doesn't expect Brexit to have any major impact on its business but tips a "modest" boost in profits should sterling stay low.
"Presently almost 50pc of the group's operating profits are generated outside of the UK and so the group's reported operating profit would benefit modestly from favourable translation should sterling remain at current values, or depreciate further," the company said in a statement issued to shareholders this morning.
The firm's operating profit in the opening quarter of the year was "significantly ahead" of the prior year and modestly ahead of expectations.
DCC said the increase in profits was down to the performance of DCC Energy, which benefited from acquisitions completed last year and from strong organic operating profit growth.
Trading in each of the company's divisions namely Healthcare, Technology, and Environmental was ahead of the previous year.
The group said its acquisition of Danish retail, aviation, and commercial fuels business Dansk Fuels is proceeding in line with expectations. DCC expects the deal to be completed in the second half of 2016.