DCC group sees half-year profits fall 11%

Business services group DCC this morning reported an 11 per cent drop in pre-tax profits to €31

Business services group DCC this morning reported an 11 per cent drop in pre-tax profits to €31.2 million for the six months period to September 30th.

In a statement the company said sales during that time were €975.1 million - a decline of 4.1 per cent compared with the same period last year.

Overall operating profit was up 3.4 per cent at € 41.2 million. Despite the earnings decline, DCC increased its interim dividends by 15 per cent to 11.75 cents per share.

The company blamed falling profits on its IT division that resulted in DCC having to cut prices to compete in a weak market.

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Profits at the company's IT division, SerCom, fell 27 per cent to €10.6 million. A €3.6 million restructuring charge relating to SerCom also impacted on profits.

Its energy division was the company's best performer. This arm saw profits grow 29 per cent to €13 million following a boost to sales following the acquisition of British Gas LPG last November.