Operating profits at DCC jump 11.5% to £208.4 million

Energy and distribution group DCC has reported an 11.5 per cent jump in annual profit, following "excellent growth" in its technology and healthcare divisions.

The company posted operating profit of £208.4 million for the 12 months to the end of March , on the back of revenues of £11.2 billion.

DCC, whose activities range from oil distribution to waste management and food distribution, said the 6.2 per cent increase in revenues was driven by acquisitions, particularly in DCC Energy, and excellent organic growth in DCC Technology.

Operating profit in DCC Technology, the group’s second largest division, was 15.9 per cent ahead of 2013 primarily based on very strong organic growth in mobile computing and communications products in Britain.

Operating profit in DCC Healthcare was 36.9 per cent ahead of last year, benefitting from the acquisition of Kent Pharma, which was completed in February 2013.

"Record free cash flow of £278 million in the year reflects the group's ongoing ability to convert its profits into cash. Return on capital employed increased to 16.3 per cent from 15.6 per cent in the prior year, substantially ahead of DCC's cost of capital," chief executive Tommy Breen said.

Adjusted earnings per share rose 11.7 per cent to 191.20 pence, in line with the company’s February guidance of 7 to 10 per cent.

The company proposed a 10 per cent increase in the final dividend to give a total full year dividend of 76.85 pence.