Last checked at 16 Jul 2010 07:00
16 July 2010
DCC plc
Interim Management Statement
DCC plc, the 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, in advance of the Company's AGM to be held in Dublin at 11.00 am today.
First Quarter ended 30 June 2010
Although it is still early in the Group's financial year, it is encouraging that in the first quarter ended 30 June 2010 the Group traded ahead of the prior year and modestly ahead of expectations, both on a reported and on a constant currency basis. Each of the Group's five divisions traded ahead of or in line with the same period in the prior year.
Acquisitions and Disposals
The cash outlay on acquisitions in the quarter was €36 million. In May, as previously announced, DCC Energy acquired Pearts, a medium sized oil distribution business which operates from four locations in the North of England, for a consideration of €15 million. In June, DCC Energy acquired two oil importation and storage terminals in Inverness and Aberdeen in Scotland for a consideration of €19 million. Post the acquisition, DCC Energy will use these terminals to provide storage and throughput services to major oil companies who will continue to sell fuel directly into the market place. The acquisition of the terminals enhances DCC Energy's position in the Scottish market and creates opportunities for DCC Energy to expand into the marine fuels market.
In June, as previously announced, DCC Healthcare disposed of its Mobility & Rehabilitation business for a net cash consideration of approximately €30 million, which was in line with the DCC balance sheet carrying value of the net tangible assets and goodwill which were disposed of. The Mobility & Rehabilitation business accounted for less than 1% of the DCC Group's operating profit for the year ended 31 March 2010.
Year to 31 March 2011
At this early stage the Group continues to anticipate an operating profit increase, for the year to 31 March 2011, of approximately 5% and adjusted earnings per share to be modestly ahead of the prior year, both on a constant currency basis.
Based on an exchange rate of Stg£0.84 = €1, this equates, on a reported basis, to an operating profit increase of approximately 10% and an adjusted earnings per share percentage increase of mid to high single digit.
DCC's diversified business model, continuing strong financial position and excellent cash generation leave the Group well positioned to benefit from acquisition and development opportunities that arise in the current environment.
DCC expects to announce its interim results for the six months to 30 September 2010 on Tuesday 9 November 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 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 ended 31 March 2010, DCC had sales of €6.7 billion and operating profits of €192.8 million and currently employs approximately 7,800 people. DCC's shares are listed on both the Irish and London stock exchanges under Support Services.