DCC reiterates full-year guidance of 5 to 10% profit growth

Energy-to-technologies conglomerate DCC said it expects full-year growth in operating profit and earnings per share to be in the five to 10 per cent range.

In an interim management statement, the Dublin-headquartered, London-listed group reiterated its previous full-year guidance and said third quarter operating profit was ahead of the prior year with good growth recorded across its technology, healthcare, environmental and food and beverage divisions. It said that DCC Energy performed in line with the same quarter a year earlier.

The group said its full year guidance continues to be set against the assumption that there will be normal weather conditions for the remainder of the year.

Volumes and margins in DCC Energy were held back by the milder weather conditions across Northern Europe, the group said. In the UK, DCC Energy’s largest market, temperatures in during the third quarter were above the ten year average, continuing a trend of milder than normal weather experienced in the first half.

Operating profit in DCC Technology, the group’s second largest division, was ahead of the prior year, in what is the most important trading quarter for the division. DCC said revenue growth was modest reflecting the anticipated lower sales of tablets and mobile phones, although this was offset by a strong performance in PC’s and servers, an improved performance in France and the impact of the CapTech acquisition.

DCC Healthcare traded well ahead of the prior year, benefiting from continued strong growth in health and beauty products and the benefit of first time contributions from Williams Medical and Universal Products Manufacturing, both of which were acquired in 2014.

Operating profit in DCC’s two smaller divisions, DCC Environmental and DCC Food & Beverage, was ahead of the prior year, it said.

Total committed acquisition expenditure in the nine months to December 31st was £156 million. The cash outflow on acquisitions, inclusive of a net movement in deferred and contingent acquisition consideration, was £117 million.

DCC, which is due to announce full year results on May 19th, said it remains “in a very strong financial position which leaves it well placed to continue the development of its business in existing and new geographies.”

The group also said it remains active on the acquisition front.