(Adds CEO, analyst comments, details)
By Li-mei Hoang
LONDON, May 19 (Reuters) - Support services group DCC forecast "very significant" profit growth this financialyear, after posting a bigger-than-expected 7 percent rise inannual earnings and announcing its largest ever acquisition.
The company said on Tuesday it was buying French gas companyButagaz from oil firm Shell for 464 million euros ($519 million) and placing 4.2 million new ordinary shares tohelp fund the deal.
Chief Executive Tommy Breen said he expected a significantimpact from the acquisition in early December and saw furtheropportunities in the energy market -- DCC's biggest profitgenerator -- as oil firms dispose of downstream businesses.
"We believe there will continue to be opportunities andmaybe some of them bigger over the next few years, coming out ofthe oil majors," he said.
DCC shares jumped more than 12 percent in early trade, thebiggest rise on the FTSE 250 midcap index. They were 9.6percent higher at 4,812 pence by 0750 GMT.
"Full year profits were towards the top end of the guidedprofit range," said Panmure analysts who have a "buy" rating onthe stock.
"Prospects remain excellent and the group expects verysignificant profit growth in 2015/16," they added.
Breen said he planned to spend around 150 million pounds onacquisitions a year across the business, which also includeshealthcare and technology divisions.
The Dublin-based company, whose activities range from oildistribution to waste management, said pretax profit rose to199.6 million pounds ($312.5 million) for the year ended March31, up from 186.9 million a year earlier.
It was expected to report profit of 192.75 million,according to a Thomson Reuters poll of nine analysts.
($1 = 0.8947 euros) (Editing by Paul Sandle and Mark Potter)
DCC (DCC)
