DCC eyes more takeovers as trading levels pick up

DCC eyes more takeovers as trading levels pick up
Fergal O’Dwyer, who retired as DCC chief financial officer, after the group's agm in Dublin. 

DCC, the Irish fuel-to-healthcare-to-technology conglomerate is planning further acquisitions to fuel near-term growth.

Addressing the group’s agm, chief executive Donal Murphy said the business had seen a “resilient” first quarter of its current financial year, covering the three months to the end of June.

First quarter trading was ahead of the group’s expectations but down on a year-on-year basis due to the lockdown restrictions relating to the Covid-19 outbreak during April and May.

He said DCC has recommenced “selective” capital spending on organic growth opportunities, but will also continue to eye acquisition opportunities following a number of such investments in mainland Europe and North America in the past couple of years.

“DCC remains active from an acquisitive development perspective and the group continues to have the platforms, opportunities and capability for further development across each of our four divisions,” he said.

“The trading performance of the group has been very resilient, considering the significant challenges presented by the necessary restrictions,” Mr Murphy said.

DCC has yet to give guidance for its full-year – which runs to the end of next March – partially due to its first quarter being its lightest trading period. 

In light of that, Goodbody has stuck with its pre-tax earnings estimate of £460m (€507m) for the year, largely in line with last year’s result. 

Analyst consensus is currently for £450m in annual profits.

Fergal O’Dwyer formally retired as DCC's chief financial officer after the agm, being replaced by Kevin Lucey.

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