DCC set to meet expectations

DCC said yesterday that it was well placed to meet market expectations in the current year.

"We are pleased with trading results in the first quarter and, in particular, the continuing pick-up in the results of DCC SerCom," chief executive Jim Flavin told shareholders at the company's annual general meeting (agm) yesterday. In May, DCC posted a better-than-expected rise in full-year profits and said it was again set for double-digit percentage profit increases at its subsidiaries this year.

The group's business is significantly weighted toward the second half of the year, with around 70 per cent of profits made in this period last year.

Company broker Davy is looking for adjusted earnings per share of 146 cent in the year to next March, while Merrion and NCB Stockbrokers are looking for earnings of 149 cent.

Meanwhile, DCC said that it remained active on the acquisition front.

In May, it bought a 50 per cent stake in the Scottish recycling and waste management group William Tracey for nearly €24 million.

Last week, the group announced the purchase of British oil distribution business Carlton Fuels for an initial cash payment of €13.3 million. The company said that it was confident that both purchases would "prove rewarding".

Shareholders passed all motions at yesterday's meeting, the last to be chaired by the company's current chairman, Alex Spain.

He has indicated that he will retire from the group's board next year, and will not seek re-election ahead of the 2007 annual meeting.

Shares in DCC closed two cent lower at €19.20 yesterday, having risen strongly last week on the back of the Carlton deal.

DCC, whose businesses range from food to fuel and computers to healthcare, has also been engaged in a share buyback of late.

In June, the company bought back 1.3 per cent of its shares in a move analysts said should further underpin earnings in the period to 2007.