Tuesday 20 August 2019

Strong performance for DCC as operating profit increases by 14pc

Donal Murphy, CEO of DCC
Donal Murphy, CEO of DCC
Ellie Donnelly

Ellie Donnelly

Adjusted operating profit at diversified Irish logistics and sales support group DCC has increased by 14.4pc year-on-year to £122.5m (€137.5m) in the six months to 30 September.

Revenue at the company from continued operations was up 17.1pc in the six month period to £6.4bn (€7.2bn) in comparison to the same period last year, according to the group’s interim results.

The strong performance was driven by growth across all divisions of the business.

Adjusted earnings per share on continuing activities was up 16.1pc to 95.5 pence, while the company increased its interim dividend by 10pc to 40.89 pence per share.

This year the group made its first expansions outside of Europe, announcing in April that it had agreed to buy Shell's LPG distribution business in Hong Kong and Macau, while last week the group announced that it had entered into the US market after it agreed to buy a liquefied petroleum gas (LPG) business headquartered in Illinois.

The US deal places a $200m (€173m) enterprise value on Retail West LPG and provides DCC with a platform for further expansion in America.

Reflecting the announced acquisition activity to date, the group's cash spend on acquisitions in the current financial year will be approximately £550m (€618m).

Commenting on the results, Donal Murphy, DCC CEO, said that the company continued to have "ambition and capacity for further development",

"Importantly, as DCC increases in scale and geographic reach, [it] also has the opportunity to build substantial market positions in its chosen sectors.

The group reiterates its belief that the year ending 31 March 2018 will be another year of profit growth and development," Mr Murphy said.

Yesterday DCC announced the appointment of former Accenture managing director Mark Ryan as a non-executive director.

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