DCC continues strong growth amid record profit

DCC continued to grow strongly last year, recording its largest operating profit to date, the group said.

Revenue also continued to rise, with overall revenue up 25 per cent to £22.205 billion in the year to March 31st.

The fuel distribution to technology services group said adjusted operating profit was up 11 per cent year on year to £655.7 million, ahead of expectations. While growth was seen across most of its divisions, it was driven by DCC Energy, which saw profit grow 12.4 per cent to £457.8 million on higher energy commodity prices and the impact of acquisitions. Revenue at the energy division was up almost 31 per cent to £16.1 billion, with like-for-like volumes behind the prior year.

The group’s technology division saw operating profit climb almost 30 per cent to reach £106.1 million. Revenue of £5.264 billion was more than 13 per cent higher year on year, but that was driven by the acquisition of Almo. Weak demand in Europe weighed on organic revenues, which fell 5 per cent.

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Operating profit at DCC Healthcare fell 8.6 per cent to £91.8 million as demand for Covid-related products fell.

Adjusted earnings per share were 456.3 pence, up 6.1 per cent.

Over the year, DCC invested £360 million in 19 acquisitions, including Medi-Globe and PVO International.

“DCC delivered strong growth in a volatile macro environment, demonstrating the resilience of our diverse business and the commitment of our teams throughout the group,” chief executive Donal Murphy said. “In line with our capital allocation priorities, we committed £360 million to new acquisitions during the period, bringing our spend in the last three years to £1.3 billion. This has increased our scale and geographic reach in the healthcare and technology sectors.”

Mr Murphy said the group had also accelerated the energy divisions services and renewables offering, with operating profit from this sector rising from 22 per cent to 28 per cent.

The board is proposing a 6.5 per cent increase to the total dividend for the year of 187.21 pence per share.

Looking ahead to the coming year, the group said it expected to continue to grow its operating profit and development activity.