Industrial holding group DCC has given a strong hint that it will not be a bidder for crisps manufacturer Tayto, if and when Tayto is put on the market by its American parent company, Beatrice Foods.

Speaking after the group reported a bumper set of half-year results, DCC chief executive Mr Jim Flavin said that, if the group was to make a major acquisition in the snack foods sector in Ireland, its market share would be such that "it might cause problems". He added that DCC sees stronger growth and better margins in its savoury snacks business than in potato crisps.

Mr Flavin emphasised that DCC's strategy is principally to make bolt-on acquisitions which can add value and be bought reasonably. "We prefer private companies and dislike auction situations," he said. If and when Tayto is sold, it is likely to be through such an auction. He added: "We are alive to larger deals but are conscious of the return on capital employed impact."

The DCC half-year results were well ahead of market forecasts and led to a 70p jump in the share price to 490p. Analysts said they will probably be revising up their full-year forecasts, which currently average pre-tax profits of £42 million and earnings per share around 40p.

In the half-year to the end of September, DCC's turnover rose almost 20 per cent to £367.7 million, while pre-tax profits were up over 32 per cent to £17.1 million. Earnings per share were up almost 33 per cent to 16.15p.

DCC operates in four division and all reported strong growth in operating profits. The Sercom computer services division was the star, however, with operating profits up 58 per cent to £6 million, while sales rose by over 30 per cent to £143.8 million. Sercoms's performance was assisted by the continued move towards outsourcing in the computer industry, said the managing director Mr Tommy Breen.

DCC Energy, which takes in Flogas and Emo Oil, also did well with operating profits up 53 per cent to £3.5 million, while sales were up 14 per cent to £58.6 million. The increases in turnover understates the rise in volumes, with lower oil prices resulting in lower selling price for LPG and oil.

DCC Foods, which takes in the Allied Foods chilled foods distribution offshoot, Kelkin, tea and coffee as well as wine distribution, boosted operating profits by 11 per cent to £5 million, with turnover up by a comparatively modest 9.8 per cent at £117.7 million. This included DCC's 10.7 per cent share of Fyffes' operating profits for the half-year to the end of April.

DCC Healthcare saw its turnover rise almost 28 per cent to £39.7 million with operating profits up 9 per cent to £3.5 million. Most of the growth in operating profits came from existing businesses, with start-up losses at one new subsidiary offsetting a first-time contribution from another.

DCCs's principal other interest is a 49 per cent stake in Manor Park Homebuilders. Operating profits from these other interests rose 11 per cent to £777,000 with sales up 7.6 per cent to £7.9 million.