(Alliance News) - DCC PLC on Tuesday posted swelling profits in its full-year results, boosted by Covid-19 driven demand for its personal protective equipment.
The FTSE 100-listed sales, marketing and support services company also announced a new board chair.
DCC reported a "very strong performance" for the year ended March 31, with pretax profit up 17% year-on-year to GBP365.1 million from GBP311.5 million.
Dublin-based DCC noted profit growth was ahead of market expectations, with all its divisions recording growth in operating profit, despite the challenging trading environment.
As a result of the positive trading performance, DCC's board proposed a 13% rise in the final dividend payment to 107.85 pence per share, giving a total dividend of 159.80p or 10% growth for the year.
DCC shares were trading 1.7% higher in London on Tuesday at 6,200.00 pence each.
Revenue for the year saw a 9.1% year-on-year decline to GBP13.41 billion, attributed to lower activity levels in DCC Retail & Oil and lower oil prices during the year.
Medical products focussed DCC Vital was singled out as a particular growth area. Covid-19 driven demand for PPE, ICU-related medical devices, and other healthcare products helped drive revenue up 13% to GBP655.4 million, from GBP578.1 million the previous year.
"I am delighted to report that DCC has continued its excellent track record of growth and development, despite the unprecedented challenges during the year," said Chief Executive Donal Murphy.
"A strong trading performance, excellent cash generation, very strong returns on capital employed and continued development activity are hallmarks of DCC's resilient business model."
Looking ahead, DCC said it expected "another year of profit growth" and reiterated its ambitions of adding to the GBP375 million of acquisitions it made in the year.
"We remain active from a development perspective and are ambitious to build DCC into a global leader in our chosen sectors," added Murphy.
"The group is well placed to navigate the ongoing uncertainty, build on our momentum and continue DCC's growth and development into the future."
DCC also announced Mark Breuer's appointment as new chairman, replacing John Moloney. Breuer joined the board in November 2018 and has over thirty years' experience in investment banking, most recently with JPMorgan Chase & Co, DCC said. He was vice-chair of Global M&A for JP Morgan before retiring in 2017.
Caroline Dowling was announced as new senior independent director while Lily Liu will become a non-executive director.
All three directors will begin their new roles following DCC's annual general meeting on July 16.
By Will Paige; willpaige@alliancenews.com
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