DCC pre-tax profits up 27%

DCC this morning reported a 27% increase in pre-tax profits for the year ended March 10 saying its performance in the second half of the year especially was "excellent" despite difficult trading conditions.

The business support services group said its results were driven largely by acquisitions in DCC Energy and strong organic growth in DCC SerCom.

"Profit before tax of €164.9m increased by 27.2% on a constant currency basis (19.7% on a reported basis)," the company said.

Revenue for the year was €6.7bn, up 10.8% on a constant currency basis, while operating profit of €192.8m represented a 12.8% increase.

"This result was achieved against a backdrop of difficult economic and trading conditions and having delivered particularly strong operating profit growth of 22.4% on a constant currency basis in the prior year," the company said.

"Approximately two thirds of the growth was driven by acquisitions and one third was organic."

The company said its energy division had also enjoyed the benefit of a second consecutive cold winter.

Commenting on the results, Tommy Breen, Chief Executive said: "DCC is in a very strong financial position which provides significant capacity as we pursue an increasing number of acquisition opportunities.”

A total dividend of 67.44 cent per share for the year was being recommended by the Board, an 8.2% increase over the prior year.