DCC expecting year of profit growth and development

Diversified energy and services group DCC expects the coming year to yield further profit growth and development, the company has said ahead of its annual general meeting on Friday.

In an interim management statement to investors, DCC said the company traded in line with expectations and delivered good growth in group operating profit for the first quarter ended June 30th, 2019, driven by acquisitions completed in the prior year.

It notes that its profits are “significantly weighted” towards the second half of its financial year.

“At what is still a very early stage in the financial year, the group reiterates its belief that the year ending March 31st, 2020, will be another year of profit growth and development,” it said.

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DCC Technology recently completed the acquisitions of Comm-Tec in Germany and Amacom in the Netherlands, following receipt of customary regulatory approvals.

“Both Comm-Tec and Amacom will significantly enhance DCC Technology’s service offering in continental Europe and will strengthen its relationships with suppliers and customers in the region,” the company said.

DCC Retail & Oil also recently finalised the creation of a new branded aviation fuels marketing and distribution business in Denmark with Shell Aviation, which involved Shell Aviation purchasing an interest in DCC’s existing Danish aviation fuels business.

“DCC has grown substantially in recent years and now has significant operations across 18 countries, with market-leading positions in each of its liquefied petroleum gas, retail and oil, technology and healthcare divisions,” it said.

“DCC’s ambition and capacity for further development, together with the group’s leading market positions and increased geographic reach, provide substantial opportunity for the continued growth and development of the business.”

DCC Vital recently entered into an agreement to dispose of its UK generic pharma activities and related manufacturing facility in Ireland (Kent Pharma and Athlone Laboratories), subject to regulatory and other consents.

“The disposal will sharpen the strategic focus of DCC Vital, allowing it to concentrate on those areas where it has market leading positions and sustainable competitive advantage, in particular in the sales, marketing and distribution of medical products in Britain and Ireland,” the company said.

“DCC Vital will also continue to develop its pharma activities in Ireland which encompass a market leadership position in the procurement and sales of exempt medicinal products and agency distribution into the hospital and retail pharmacy segments.”

DCC expects to announce its interim results for the six months ending September 30th, 2019, on November 12th.