DCC shares inch lower after 19% revenue drop  

DCC owns the Flogas brand

Shares in Irish fuel-to-healthcare conglomerate DCC inched lower after it reported a near 19% year-on-year fall in first-half revenues to £5.93bn (€6.6bn), with the fallout from the Covid pandemic impacting its top line.

The six months to the end of September mark the seasonally less important first half of DCC’s financial year. Nevertheless, the group said overall adjusted operating profit still rose by 8.3% to £176.1m.

DCC also upped its interim dividend by 5% to 51.95 pence per share.

DCC said its balance sheet remains “very strong and liquid”, with net debt of £137m, gross cash of around £1.5bn and undrawn bank facilities totalling around £400m.

“This excellent financial position will facilitate the continued growth and development of the group,” it said.

The group has already committed around £90m to new acquisitions in Europe and North America since May and said it remains “very active” from a development perspective.

However, it warned the outlook for all its geographic markets remains “very uncertain” due to Covid restrictions.

"Despite the unprecedented disruption experienced by all economies during the period, every DCC business unit operated effectively," said group CEO Donal Murphy.