Last checked at 18 Jul 2008 07:00
18 July 2008
DCC plc
Interim Management Statement
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, in advance of the Company's AGM to be held in Dublin at 11.00 am today.
DCC had an excellent first quarter to 30 June 2008. Earnings1 were significantly ahead of both last year and budget, notwithstanding the adverse impact of the weaker sterling/euro exchange rate on the translation into euro of DCC's sterling denominated profits.
DCC's largest division, DCC Energy, achieved excellent operating profit growth in the quarter, benefiting from the favourable impact on its results of the much colder weather in Britain and Ireland in April compared to the same month last year. DCC SerCom, DCC Food & Beverage and DCC Environmental all achieved underlying double digit operating profit growth and traded ahead of or in line with budget. Operating profit in DCC Healthcare was held back by weaker than expected trading conditions in the acute care sector in Ireland.
DCC's strong start to the year is encouraging. However, the Board is conscious of the deteriorating economic conditions in the geographic markets in which DCC operates, particularly given that the Group's profits are significantly second half weighted (in the year to 31 March 2008 70% of Group profits were earned in the second half). DCC's current expectations are to achieve approximately 10% growth in earnings1 on a constant currency basis in the year to 31 March 2009. The impact of the translation into euro of the significant proportion of Group profits that are sterling denominated, at the current exchange rate of approximately Stg£0.8 = €1, would result in reported earnings1 being in line with those reported last year.
DCC's diversified business model provides defensive qualities and along with its strong balance sheet leaves the Group well placed both commercially and financially in these more uncertain economic times and allows the Group to continue to pursue acquisition and development opportunities.
DCC expects to announce its interim results for the six months to 30 September 2008 on Monday 10 November 2008.
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1 Adjusted EPS i.e. earnings per share excluding the impact of net exceptionals and amortisation of intangible assets
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 2008, DCC had sales of €5.532 billion and operating profits of €167.2 million and currently employs approximately 7,000 people in 16 countries. DCC's shares are listed on both the Irish and London stock exchanges under Business Support Services.