Shares in diversified support services group DCC fell by more than 6% on the back of a significant fall in profits and revenue in the first half of its financial year.
The Dublin-based group - whose interests range from retail fuels to healthcare and technology — said it generated a pre-tax profit of £57.6m (€67m) for the six months to the end of September, down from a profit of £85.9m for the same period last year. First half group revenues fell by 1.4%, year-on-year, to just over £7.3bn.
However, DCC said on an adjusted basis operating profits jumped by 14.5% to £162.6m, with each of its divisions showing progress.
“Notwithstanding the continuing uncertain macroeconomic outlook impacting the UK economy and the Technology business in particular, the group believes that the year [up to the end of March] will be another year of good operating profit growth and further development and will be broadly in line with current market consensus expectations,” said group chief executive Donal Murphy.
DCC’s London-based shares are up by over 14% over the past 12 months.
DCC has also increased its footprint in the US, with its Healthy and Beauty Solutions division aquiring Ion Laboratories — a Florida-based contract manufacturer of health supplements and nutritional products.
Mr Murphy suggested DCC would look for further acquisition opportunities in this area, saying: “The US is the world’s largest health supplements and nutritional products market. It is also an innovative, high-growth market, with a fragmented contract manufacturing base. We continue to be excited by significant opportunities for growth,” he said.