DCC profit to drop by 5%

FULL-YEAR operating profits and earnings per share at support services giant DCC are expected to be 5% down — on a constant currency basis — on last year.

The group’s management gave this outlook yesterday, on the back of a chequered set of first-half figures.

For the six months to the end of September, DCC’s profits before tax and exceptional items were down by 14.4% year-on-year, on a constant currency basis at €50 million. Operating profits, by the same measure, were down by 11.4% — or €7.7m — to €58.3m and adjusted earnings per share fell by 14.7% to 47.53c.

However, group revenue for the half year was up by 14.4%, on the same period last year, to just under €4.4 billion and the interim dividend payment to shareholders — of 27.42c per share — marks an increase of 5% on the first half of last year. DCC shares close at €18.10, down 4.3%.

Group chief executive Tommy Breen said that the business remains in good shape, and is “very well placed” to continue its development in existing and new geographies.

“Since April, the group has made very good progress in its development agenda, committing incremental acquisition and capital expenditure of €146m, and continues to be active in pursuing a range of other development opportunities,” he added.

That said, while four of the five divisions within DCC traded either ahead or in line on a year-on-year basis, a mild late spring/early summer hit the main DCC Energy division, which saw a like- for-like profit decline of 35.1% or €10.6m during the period.