Last checked at 2 Feb 2010 07:00
DCC plc - Interim Management Statement
Improved Full Year Outlook
DCC plc, the procurement, sales, marketing, distribution and business support services group listed on both the Irish and London stock exchanges, is issuing this Interim Management Statement in accordance with the reporting requirements of the Transparency Regulations 2007.
Quarter to 31 December 2009
DCC achieved strong revenue and operating profit growth, on a constant currency basis, in its third quarter to 31 December 2009. Taking into account the impact of the weaker sterling/euro exchange rate, on a reported basis revenue was modestly ahead of the prior year while operating profit was in line.
Volumes in DCC Energy, DCC's largest division, were modestly ahead of the prior year, with a cold end to the quarter offsetting a mild start. On a constant currency basis, DCC Energy achieved strong operating profit growth in the quarter, benefiting from the integration synergies arising from acquisitions completed in recent years. Trading in SerCom Distribution was stronger than expected, driven by the excellent performance of its British based businesses. As anticipated, DCC SerCom's overall operating profit was held back by the expected decline in operating profit in SerCom Solutions. Operating profit in each of DCC's other three divisions was ahead of the prior year and in particular there were strong recoveries in operating profit in DCC Healthcare and DCC Environmental.
Outlook for the year to 31 March 2010
Trading in January was excellent, driven by favourable weather conditions for DCC Energy and a good performance in SerCom Distribution. Taking this into account, DCC's full year outlook has improved from that set out in the Interim Management Report on 10 November 2009. The Group now expects that, on a constant currency basis, both operating profit and adjusted earnings per share for the year to 31 March 2010 will be in the range of 5% to 10% ahead of the prior year. However, the impact of the translation into euro of the significant proportion of DCC's operating profit which is earned in sterling at an average exchange rate of Stg£0.885 = €1 (compared to an average translation rate last year of Stg£0.8262 = €1) would result in both operating profit and adjusted earnings per share being modestly ahead of the prior year on a reported basis.
Development expenditure
The Group has committed expenditure of €112.6 million on acquisitions since 30 September 2009 of which DCC Energy has committed expenditure of €94.0 million on the acquisitions of Bayfords Oil Limited, Brogan Holdings Limited and Shell Direct Austria GmbH.
The Group has incurred capital expenditure of €6.0 million in the quarter to 31 December 2009, compared to €11.5 million in the same quarter in the prior year.
Preliminary Results
DCC expects to announce its preliminary results for the year to 31 March 2010 on Tuesday, 18 May 2010.
For reference:
Tommy Breen, Chief Executive
Fergal O'Dwyer, Chief Financial Officer
Conor Murphy, Investor Relations Manager
Telephone: +353 1 2799400
Email: investorrelations@dcc.ie
Web: www.dcc.ie
Forward-looking statements
This announcement contains some forward-looking statements that represent DCC's expectations for its business, based on current expectations about future events, which by their nature involve risks and uncertainties. DCC believes that its expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve risk and uncertainty, which are in some cases beyond DCC's control, actual results or performance may differ materially from those expressed or implied by such forward-looking information.
About DCC plc
DCC plc is a procurement, sales, marketing, distribution and business support services group headquartered in Dublin with international operations across four continents. DCC has five divisions - DCC Energy, DCC SerCom, DCC Healthcare, DCC Environmental and DCC Food & Beverage. In its last financial year to 31 March 2009, DCC had sales of €6.4 billion and operating profit of €180.4 million and currently employs approximately 7,800 people. DCC's shares are listed on both the Irish and London stock exchanges under Support Services.