DCC is to pursue collection of £12.9 million sterling (€18.7 million) from Taiwan's Pihsiang Machinery Manufacturing Company after the Court of Appeal in London struck out Pihsiang's appeal against the award.

The award, of £10.2 million in damages, interim costs of £2 million together with interest accruing at a rate of 8 per cent per annum, was made last January by the London High Court. It arose from a breach by Pihsiang, its chairman and major shareholder Mr Donald Wu and his wife and company director, Mrs Jenny Wu, of a long-term supply agreement with DCC's UK-based mobility products subsidiary.

DCC said yesterday's decision by the Court of Appeal brought to an end the main legal proceedings. The company will now apply to the Taiwanese courts for enforcement of the London High Court judgment in Taiwan.

Analysts said there were precedents for such a move. Merrion Stockbrokers noted that a 1999 trademark infringement lawsuit filed by the makers of Mont Blanc pens in the UK was enforced by the Taiwanese although the timing of the payment continues to be unclear.

However, the situation is complicated by the failure of Mr and Mrs Wu to present themselves in the High Court on October 7th for examination as to their assets and those of Pihsiang.

As a result, the High Court issued a warrant for Mr Wu's arrest and has ordered that he be committed to prison for 28 days.

Analysts said the monies, when received, would be welcome but noted that DCC remained in a very healthy financial position. Davy believes the company will have net cash of €28 million at the end of March next year, even after a share buyback and acquisition spending of more than €80 million since last March.

Pihsiang had been supplying DMA - DCC's UK-based mobility products provider - with Shoprider powered mobility products. DCC has since launched a range of powered mobility scooters for the European market under a DCC-owned brand name, DMA Strider. The scooters are made to DMA's specification by another Taiwanese company, Kymco.