DCC jumps on strong annual results

19 May 2015 09:46

Support services group DCC reported a bigger-than-expected increase in annual earnings and said it was confident to achieve "very significant" profit growth in the current financial year.The Dublin-based company said its pre-tax profit for the year to 31 March rose 8.1% year-on-year to £163.3m, while earnings before interest, tax, depreciation and amortisation climbed 6.8% to 199.6m and operating profits for period rose 10.5% to £221.7m. However, revenue declined 4% to £10.6bn as declining oil prices weighed on the group's energy division. DCC's chief executive Tommy Breen said the company's performances had been boosted by a record number of acquisitions and "a continuing focus on operational efficiency", adding the year had been "outstanding" as all of the group's four divisions reported an increase in profit. On a divisional basis, revenues at the group's energy division fell 7.5% year-on-year to £7.6bn, while operating profits rose 8.1% to £119.4m. The technology arm reported a 3.8% increase in revenue to £2.3bn as operating profits climbed 2.6% to £49.4m, while the group said its healthcare division saw profit jump 30.6% to £39.7m and revenue rose by 20% to £488.1m. Revenues in the environmental business rose 9.9% to £143.6m, while operating profits increased 13.2% to £13.3m. "Full year profits were towards the top end of the guided profit range," said analysts at Panmure, who reiterated their 'buy' rating on the stock. "Prospects remain excellent and the group expects very significant profit growth in 2015/16." Meanwhile, the FTSE 250 group has submitted a €464m (£332m) binding offer to oil giant Shell for its Butagaz liquefied petroleum gas business in France. DCC shares were up 10.07% to 4,835.00p at 10:22 on Tuesday.