DCC has had "a good start" to the year and is budgeting for further growth, shareholders at the industrial holding company's annual general meeting were to 14.

However, chief executive, Mr Jim Flavin warned that the company's Printech subsidiary "continues to face a difficult market environment" in the computer documentation sector.

Mr Flavin said that Printech was attempting to diversify into other printing opportunities to utilise its existing capacity, and that its non print computer services business was also being expanded.

He added that Printech now offers assembly, packing, warehousing, and translation and localisation of software through its associate company International Translation and Publishing. "We are very well placed to develop these manufacturing opportunities," said to Mr Flavin.

Speaking after the meeting, Mr Flavin said that Printech was also in negotiation with a number of Far Eastern companies which have printing requirements in Europe.

Mr Flavin told shareholders that, although most of the company's profits are made in the second half, the performance during the first two months of its financial year had been strong. He said the group had low gearing and was "in a strong financial position to pursue relevant acquisition and development opportunities".

DCC also announced yesterday that it had increased its stake in its three computer distribution businesses Micro P, Gem and Sharptext - from 86.5 per cent to 89.1 per cent. The total consideration of the purchase, which was made through the issuing of 113,242 new shares and a £510,174 loan note, was £821,590, the company said.