DCC's pretax profit rises 15%

Pretax profit at industrial holding group DCC rose 15 per cent to €189.6 million in the year to March 31st, the group reported today.

On a constant currency basis, pretax profit was up 10.9 per cent compared to a year earlier.

Operating profit at the group rose by 15.5 per cent when measured on a constant currency basis, reaching €230 million. DCC said about two thirds of the growth was organic, with the rest as a result of completed acquisitions.

There was growth across all five of DCC's divisions. Operating profits at DCC Energy rose 17.2 per cent on a constant currency basis to €137.3 million, while DCC SerCom saw profit rise to €46 million, a rise of almost 10 per cent on a constant currency basis compared to a year earlier.

DCC's healthcare, environmental and food and beverage units also reported healthy profit rises.

"The group's result was achieved against a continuing backdrop of difficult economic and trading conditions in certain of our markets and having delivered particularly strong operating profit growth of 12.8 per cent and 22.4 per cent, on a constant currency basis, in the two preceding years," chief executive Tommy Breen said.

DCC said adjusted earnings per share increased by 10.5 per cent on a constant currency basis, and reported a rise of 14.1 per cent to 203.15 cent, when the impact of the exchange rate between sterling and euro was taken into account.

DCC warned that the current year's outlook was against a backdrop of an uncertain economic environment, particularly in the UK, and an assumption that more normal weather patterns would resume. This compares to more severe winters that have been seen in recent years.

"In April DCC Energy has been impacted by what has been the mildest April on record, with temperatures significantly warmer than last year and this along with the impact of the number of public holidays in the UK has resulted in group trading being well behind the prior year," the group said.

"At this very early stage, the group anticipates that operating profit and adjusted earnings per share, both on a constant currency basis, will be broadly in line with the prior year."