DCC is hoping to expand its environmental division into the UK in a bid to take advantage of new legislation introduced there over the summer.

Since July, British landfill sites can no longer accept both specialist and normal commercial waste, reducing the numbers dealing with specialist waste from around 300 to 11 and forcing firms to look at other treatment methods, according to the company.

DCC can either seek to get a licensed facility and build up a business in the UK or look for acquisitions in the sector. "We will probably do both," chief executive, Mr Jim Flavin, said yesterday as the company unveiled its first-half results.

Strong growth in the environmental division, which deals with oil, chemical and other waste requiring specialist treatment, as well as its healthcare, information technology and homebuilding divisions, helped DCC to deliver a better-than-expected result for the six months ended September.

The group's food division relied on acquisitions to deliver growth, however, while the energy division was held back by rising oil prices.

Overall, the company reported a 21 per cent rise in pre-tax profit to €37.9 million while adjusted earnings per share rose by nearly 18 per cent to 47.4 cents. Sales were up by nearly 18 per cent to €1.15 billion. DCC announced a 15 per cent increase in its first-half dividend to 13.51 cents.

Typically, DCC's business is weighted toward the second half of the year with the first half accounting for just one-third of full-year profits. "Our expectation is that we will have good profit growth for the year as a whole," Mr Flavin said.

A breakdown of its business showed a strong first-half performance from information technology with a 15.5 per cent increase in operating profit to €13 million on a constant currency basis.

DCC's healthcare division also had a strong showing, with profits up by 11 per cent to €7.1 million, while its environmental business reported a 19 per cent increase in profits to €2.7 million.

Acquisitions helped lift profits at its food and beverage division by 17 per cent to €5.8 million despite tough market conditions.

Mr Flavin said the group's wine and health food business performed very well but margins in the sector remained generally under pressure.

The energy business saw profits slip by 3.6 per cent to €10.2 million as the rising oil price hit profits. However, the company said it had managed to pass on all of the price increases.

"If energy prices stay broadly where they are, we are well-positioned for the seasonally more important second half," Mr Flavin said.

Finally, the company's other business - which includes its 49 per cent stake in Manor Park Homebuilders - delivered a 41 per cent rise in profits to €7.2 million.

Net debt at the end of September stood at €24.9 million after expenditure of €81 million on acquisitions and development in the first half.