DCC reports increase in operating profit

DCC has today announced a group operating profit increase of 15.5% on a constant currency basis to €230m for the year ended March 31, 2011.

Return on total capital employed the sales, marketing, distribution and business support services group increased to 19.9% from 18.4%.

Adjusted earnings per share increased by 10.5% on a constant currency basis.

Reported adjusted earnings per share increased by 14.1% to 203.15 cent, with the board recommending a 10% increase in the final dividend.

"DCC had a very strong year with all five divisions reporting operating profit growth," said chief executive Tommy Breen.

"The group’s result was achieved against a continuing backdrop of difficult economic and trading conditions in certain of our markets and having delivered particularly strong operating profit growth of 12.8% and 22.4%, on a constant currency basis, in the two preceding years."

The Group ended the year with a net debt of €45m and total equity of €932m, notwithstanding the cash impact of acquisition and net capital expenditure of €156m during the year.

At this very early stage the Group anticipates that operating profit and adjusted earnings per share, both on a constant currency basis, will be broadly in line with the prior year.

"This outlook excludes the potential benefit of acquisitions and the group remains in a very strong financial position to pursue opportunities in the year ahead,” said Mr Breen.