DCC says first quarter trading in line with expectations

The energy and distribution group expects 2014 operating profit to be ahead of last year

DCC chief executive Tommy Breen.Photograph: Brenda Fitzsimons/Irish Times

DCC chief executive Tommy Breen.Photograph: Brenda Fitzsimons/Irish Times

Fri, Jul 18, 2014, 08:26

Energy and distribution group DCC said on Friday that trading for its first quarter to the end of June has been in line with expectations.

The group, whose activities range from oil distribution to waste management and food distribution, said its largest division DCC Energy, traded broadly in line with budget but as previously anticipated, was behind the same quarter last year when colder weather conditions boosted revenues.

Trading in DCC Technology, the group’s second largest division, was also in line with budget but ahead of the same three-month period in 2013, due to continued sales growth in IT and communications products.

DCC Healthcare performed ahead of budget and the prior year on the back of continued strong sales performance in DCC Health and Beauty Solutions and from contributions from acquisitions completed over the last year.

The group’s two smaller divisions, DCC Environmental and DCC Food and Beverage, both traded in line with budget and ahead of last year as the economic recovery in Britain and Ireland continues.

DCC said it anticipates that operating profit and adjusted earnings per share will be approximately 10 per cent to 12 per cent ahead of last year but cautioned that this guidance was based on the assumption that there will be normal weather conditions during the winter time.

“DCC’s strong equity base, long term debt maturities and significant cash and committed funding resources leave it well placed to continue the development of its business in existing and new geographies,” it said.

In its last financial year ended March 31st 2014, DCC generated revenues of £11.2 billion and operating profits of £208 million.

The group, which will announce its interim results for the six months of fiscal 2014 in early November, currently employs approximately 10,000 people in 13 countries.

Last month DCC bought Williams Medical, a Welsh supplier of products to doctors’ practices, in a deal valued at £43 million (€55 million).