DCC sees revenues fall 4.3%

Business support services group DCC saw revenues decline by 4.3 per cent on a constant currency basis for the first half of 2009 to €2.8 billion.

Operating profit rose by 0.9 per cent to €56.6 million during the six-month period under review.

Profit before net exceptional items, amortisation of intangible assets and tax totalled €56.4million, up 9.6 per cent on a constant currency basis.

Operating profit at its energy division, the company’s biggest business, rose 22.9 per cent to €25.2 million, and was up 8.5 per cent to €13.7 million at DCC Sercom, its services division and second largest segment.

The group had net debt of €87.7 million and total equity of €744.4 million at the end of September.

"While the business environment remains uncertain, the group now expects that both operating profit and adjusted earnings per share, on a constant currency basis, for the year to March 31 2010 will be broadly in line with last year," said chief executive Tommy Breen.

"DCC’s continuing strong financial position, excellent cash generation and strong market positions in its key developmental areas leave the group well placed to benefit from an increasing number of potential acquisition opportunities," he added.

The board said it has decided to increase the interim dividend by 5 per cent to 23.74 cent per share. This dividend will be paid on to shareholders early next month.

In a separate announcement, DCC said it had reached conditional agreement to buy Shell Direct Austria (SDA).

SDA sells approximately 630 million litres of transport fuels and heating oils to approximately 60,000 customers throughout Austria. The business operates from 18 locations and has a fleet of 55 trucks. DCC’s investment in SDA on a cash free/debt free basis, net of an adjustment for working capital, will be €18.3 million.