DCC Q3 boosted by cold snap

Business support services firm DCC said it has achieved “very strong revenue and operating profit growth” for the third quarter of 2010.

In an interim management statement issued this morning for the three-month period to end December, the company said its performance had been boosted by the cold snap.

The company said its full year outlook has improved from that set out in a November 8 interim report, and it now expects an increase in operating profit for the year to March 31 of

approximately 15% and an adjusted earnings per share increase of approximately 10%, both on a constant currency basis.

“With the exceptionally cold weather conditions throughout northern Europe, particularly in the last six weeks of the quarter, customer demand in DCC Energy, DCC’s largest

division, increased significantly,” the company said.

“Volumes increased by 22%, approximately one third of which was organic, despite the logistical challenges created by poor road conditions and supply constraints.”

The group said trading in DCC SerCom, its second largest division, was strong, while “good performance” was also reported in its ecommerce, catalogue and supermarket retail channels .

In addition there was a first-time contribution from Comtrade in France, bought by DCC in August.

There were “good” like for like performances in DCC Healthcare and in DCC Food & Beverage, however DCC Environmental was behind the prior year as the adverse weather impacted activity levels, particularly in the construction sector in Scotland.

Results for the year to end March will be announced on May 10.