Irish conglomerate DCC said it expected good profit growth for the year as it narrowed its focus on its energy business.
In an update to the market for the six months ended September 30th, DCC said it had made “significant progress” in executing its strategic plan, including completing the sale of its healthcare unit in September for £945 million (€1.07 billion) in cash to HealthCo Investment, and the disposal of DCC Technology’s Info Tech business in the UK and Ireland to German-based private equity group Aurelius in a deal worth £100 million in October.
DCC, based in Dublin but listed on the London stock market, also returned £100 million of capital to shareholders, with previously announced plans to launch a £600 million tender offer shortly, set for completion in December.
DCC said continuing adjusted operating profit declined by 5.4 per cent to £206.7 million in the first half of its financial year, with the impact of mild weather in the early months of the year, the disposal of its Hong Kong and Macau business in July last year, and a strong prior year contributing to the decline.
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However, it noted trading improved in the second quarter of the year, with a modest operating profit growth as a result.
Profits were lower in the energy products business, partly offset by organic growth in DCC’s mobility and energy services businesses.
Pretax profit was significantly lower due to the impact of disposals at £19.9 million, with profit after tax from continuing operations at £3 million, down from £83.7 million in the previous year.
Interim dividend rose 5 per cent to 69.50 pence per share.
Chief executive Donal Murphy said the outlook demonstrated the strength of the company.
“We continue to expect good profit growth for the full year in line with market expectations, demonstrating our resilient business model,” he said. “We are excited about our growth opportunities as a simpler, stronger DCC Energy. We’re on track to deliver our 2030 ambition.”
