DCC has reported a strong set of half-year results and signalled that it expects continued growth in the second half. The half-year results were marginally ahead of forecasts, but the absence of any surprises meant DCC shares drifted five cents lower to €10.25.

Pre-tax profits were up more than 19 per cent in the first half to €29 million while sales jumped 12.5 per cent to €925.6 million. Most parts of DCC 's business - IT distribution, energy, healthcare and food - contributed to the good first half.

The one exception was the Sercom Solutions supply chain management business, which moved from a €700,000 first half profit last year to a €200,000 loss as a result of the downturn in the IT sector. The strongest growth came in DCC's energy business where sales rose 16 per cent to €295.6 million while operating profits - boosted by lower oil prices - were 44 per cent higher at €8.2 million.

DCC has expanded its energy business in the past year through the acquisition of Scottish Fuels, Noble Fuels and Envirotech and chief executive Mr Jim Flavin indicated that this sector was likely to be the focus of continued acquisition activity. Mr Flavin added that DCC was now the largest independent importer and distributor of oil and gas in Ireland and the UK. Despite the downturn in IT DCC's Sercom Distribution operation had a good first half with sales up 11 per cent to €363.7 million and operating profits 13 per cent higher on €13.2 million.

Mr Flavin did not see a short-term recovery. "I don't believe that this will be a quick V, this a more classical downturn and it won't go away in a hurry."