DCC considering dropping Irish listing for move to London exchange

Marketing, distribution, and business support services group DCC is considering changing its primary listing from Dublin’s Iseq to the London-based FTSE as the profile of its business and investors change.

In its interim management statement, DCC said it is reviewing its listing and expects to make a decision on its future listing shortly.

“The board is considering whether DCC should seek admission to the FTSE UK Index Series in order to increase the awareness of DCC among the international investor community,” the company said.

“In addition, as part of this process, the board is considering whether it would be appropriate to change DCC’s reporting currency from euro to sterling. It is expected that this review will be completed within the next few weeks.”

The Irish Stock Exchange said this review was prompted by the admission requirements of the FTSE and that, in order to be eligible for inclusion in the UK series, an Irish incorporated company must meet the FTSE UK nationality requirements.

“Currently, DCC is dual-listed on the ISE and [London Stock Exchange] and 83% of DCC’s trading takes place on the ISE. The consequence of complying with the FTSE’s rules would mean the cancellation of DCC’s Irish listing and the loss of its euro quotation,” the ISE said.

DCC said its operating profit was well ahead of previous years and was driven by DCC Energy, which benefited from a colder winter that pushed up energy usage compared to the extremely mild winter the year before.

DCC Energy, the group’s largest division, grew by 19% as people across Europe turned up their heaters.

DCC SerCom, the group’s second largest division, performed in line with forecasts.

The business in Britain benefited from strong growth in mobile communications and tablet products, but growth was hampered by a weak home entertainment market and a challenging trading environment in continental Europe.

The company has also completed a number of acquisitions including finalising a deal to take over British generics manufacturer Kent Pharmaceuticals (Holdings) Limited.

The company has €200m committed to finalising takeovers including Kent, BP’s LPG distribution business in Britain, and other LPG distribution firms across northern Europe.

Overall, DCC anticipates that its operating profit and adjusted earnings per share will be approximately 17.5% and 20% ahead of the prior year, respectively.

NCB analyst Gerard Moore said that the company’s performance supports the upgrade in earnings outlook.

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