Business services group DCC says its half yearly profits rose by 17.6% to €60.4m, with all five of its divisions reporting operating profit growth.
Revenues for the six months to the end of September jumped 41% to €3.966 billion and the company said it has decided to pay an interim dividend of 26.11 cent per share, up 10% on the same time last year.
The company said its largest division - DCC Energy - saw excellent operating profit growth with especially strong performances in its oil distribution and fuel card business.
Operating profits in its SerCom division was modestly ahead while the group's healthcare, environmental and food and beverage divisions all reported a strong increase in operating profit.
DCC has modestly raised its guidance for the full year to the end of June 2011 and said it now expects a mid to high single digit percentage increase in operating profit and an adjusted earnings per share increase of about 5%.
However, this is on the assumption that the weather patterns of last year will not be as favourable as last year, which was particularly cold.
'DCC has a record over many years of generating shareholder value through augmenting organic growth with the successful identification, execution and integration of acquisitions in its key development areas,' commented the group's CEO Tommy Breen.
'The group's financial position remains very strong, leaving it well positioned to pursue acquisition opportunities arising at this time,' he added.
Divisional breakdown
DCC said that operating profits at its energy division rose by 19% to €30.1m while revenues jumped 57% to €2.80 billion. It said its oil distribution business in the UK generated 'excellent profit growth' as it continues to benefit from the integration, synergies and improved performance of recent acquisitions.
Its SerCom division saw operating profits rise by 4% to €14.3m while revenues rose by 20% to €799m after what DCC called a satisfactory performance. It said that while its retail distribution business saw good revenue growth, operating profit was held by by weakness in Ireland and by investments in new developments in the UK.
Revenues at DCC Healthcare, including its mobility and rehabilitation business, inched 1.6% higher to €166m while operating profits rose 28% to €11.1m. During the year, the company sold its mobility and rehabilitation businesses. DCC said that Irish Government spending constraints continue to increase price pressure in the public healthcare system.
It said the trading environment in the Irish hospital sector remains challenging, however this is expected to create new opportunities for DCC Healthcare in the provision of outsourced services to hospitals.
DCC Environmental's revenues jumped 48% to €53.4m in the six month period, while operating profits rose 49.5% to €7m as the division was boosted by the reorganisation of the increased investment in its UK operations. The company said that while the market backdrop in Ireland remained challenging, continued tight control of costs and some new business wins resulted in profit growth.
Operating profits at its food and beverage division rose by 26.4% to €5.4m while revenues fell 11% to €138.3m with a fall in indulgence foods partly offset by an increase in healthfood revenues.
DCC shares closed up 2.5% at €21.85 in Dublin this evening.
