DCC operating profit hits €257m

In its 20th year as a public company, sales, marketing, distribution and business support services firm, DCC reported operating profits of £208m (€257m) from activities ranging from self-service petrol stations to the distribution of Xbox One consoles.

The company, which operates healthcare, technology, energy, environment and food & beverage divisions, reported a 6% increase in revenue to £11.2bn for the year ending March 31, 2014.

DCC chief executive, Tommy Breen, said the company’s 20th year had resulted in another strong set of figures.

“It is pleasing that, in our 20th year as a listed company, the group has achieved another strong result, with operating profit growth across each of DCC’s five divisions. Overall group operating profit was 11.5% ahead of the prior year, driven primarily by strong growth in DCC technology and DCC healthcare,” he said

Operating profit at DCC healthcare was 36.9% up on 2013 following the acquisition of Kent Pharma. The conglomerate’s technology group reported a 15.9% jump in profit.

Mr Breen said the technology division had been helped by the launch of a new Xbox console, but the main driver of the division’s growth had been acquiring 30% of the distribution of smartphones and tablets.

The company’s energy division has acquired an unmanned retail petrol station company Qstar Försäljning AB for £40m. The company operates Great Gas petrol stations in Ireland and already has a self-service station near Dublin Airport but Mr Breen said there were no plans to roll this model out further.

He said they may expand that network through acquisitions. “The company considers acquisitions a major part of its business and works to maintain a pipeline of targets,” he said.

“We generate acquisition opportunities ourselves. It is part of our day job. The pipeline is there but when, and if, a company is going to fall, I can’t say,” he said.

The company also received £7m in exceptional items due to the settlement of a court case against a Thai supplier. In total the company has received £22m in damages as a result of a breach of contract.

Mr Breen said he was satisfied with the company’s performance over the last two decade.