DCC proposes name change, lifts dividend as costs hit annual profit

(Alliance News) - DCC PLC on Tuesday maintained that it has made "significant progress" in financial 2026, though surging exceptional costs weighed on the company's bottom line.

The Dublin-based provider of sales, marketing and distribution services to the energy sector booked GBP15.44 billion in revenue or the year ended March 31, down 2.9% from GBP15.90 billion the year prior.

Pretax profit fell 1.9% to GBP374.1 million from GBP381.2 million, while attributable profit sunk 94% to GBP13.4 million from GBP206.5 million.

The downturn reflected GBP320.1 million in exceptional costs, which swelled from GBP166.7 million in financial 2025. Excluding exceptional costs, attributable profit declined 11% to GBP333.4 million from GBP373.2 million.

DCC noted higher restructuring and integration costs, which more than doubled to GBP45.7 million from GBP20.5 million, in the wake of recent acquisitions.

"Costs were incurred in relation to our solar distribution business in the Netherlands following the decision to exit the business in the second half of the year, reflecting a continued deterioration in its medium-term outlook. Costs were also incurred in connection with the optimisation and integration of continuing operations within DCC Technology in North America," DCC said.

Nonetheless, the company has proposed to lift its final dividend per share by 5.0% to 147.22 pence from 140.21p on-year, which pushes the total dividend 5.0% ahead of the previous year to 216.72p from 206.40p.

In May 2025, DCC said it would return GBP800 million to shareholders from the sale of its Healthcare business. It has returned GBP100 million via buybacks and GBP600 million through a tender offer, with the remaining GBP100 million to be returned after DCC receives a deferred payment, expected in autumn 2027. DCC has launched a sale process for its Info Tech segment, and aims to reach an agreement on sale terms by the end of 2026, with proceeds to be used "in line with DCC's capital allocation policy".

Last month, DCC rebuffed a takeover bid from a consortium led by Kohlberg Kravis Roberts & Co LP, arguing that it "undervalues" the company.

The consortium had offered to pay 5,800p per share in cash, valuing DCC at approximately GBP4.95 billion, based on 85.4 million shares in issue as of April 29.

DCC shares rose 0.7% to 5,990.00 pence on Tuesday morning in London, for a market capitalisation of GBP5.11 billion. The stock has risen 25% over the past year.

Also on Tuesday, DCC proposed to change its name to DCC Energy PLC. This is expected to take effect after the company's July 16 annual general meeting, subject to shareholder approval.

Chief Executive Donal Murphy commented: "This has been a year of major strategic progress for DCC. We transformed the group through the disposals and provided shareholders with material capital returns. At the same time, the business performed, delivering good profit growth notwithstanding the volatile market context. This performance reflects the commitment and resilience of our teams, who have continued to deliver strongly through a period of significant transformation.

"With a simpler, more focused group, a strong financial platform, and a high‑cash‑generative Energy business with attractive organic growth prospects, our performance keeps us on track to deliver our GBP830 million operating profit ambition by 2030."

Adjusted operating profit totalled GBP634.0 million in financial 2026, up 3.6% from GBP612.1 million the previous year.

By Holly Munks, Alliance News reporter

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