DCC posts 21% jump in profit

Colder weather increases demand for oil in Britain, the group’s main energy market

Profits beat guidance as cold weather boosts demand for energy distribution services. Photograph: Dara Mac Dónaill

Profits beat guidance as cold weather boosts demand for energy distribution services. Photograph: Dara Mac Dónaill

 

Dublin-based business support services group DCC posted a 21 per cent jump in annual profit, beating its own guidance, after its energy business was boosted by colder winter weather in Britain.

The company, which earlier this month cancelled its Irish listing and is now solely listed in London posted operating profit in the 12 months to the end of March of €229.2 million, which on a constant currency basis was 21.3 per cent higher than the year before.

The company had guided in February that it expected to post operating profit of €222 million for the year.

DCC, whose activities range from oil distribution to waste management and food distribution, said it expects operating profit to rise by 10 to 12 per cent in its new financial year but the cost of new debt facilities would hold back growth in earnings per share.

A cold winter saw higher demand for volumes of oil in Britain, the company’s main market for its energy business, helping its bottom line which was also boosted by several acquisitions during the period.

The company, which expects to be included in Britain’s official midcap index at a June reshuffle, also said it was lifting its annual dividend by 10 per cent to 85.68 cents.

Shares in DCC, whose shares have risen 28 per cent in the last six months and which has a market capitalisation of around £2.1 billion, closed at £25.30 yesterday.