Shares in DCC closed up over 5% to 10.95 euros after the company announced pre-tax profits before deductions of 87.3 million euro in the year ending March 31. The company also revealed plans to buy an oil distribution business in Scotland owned by BP.
The profit figure was an increase of 22.3% on the previous year and was in line with market expectations for the marketing and distribution company.
The company's turnover was up by 42.1% to 1.87 billion euro, while adjusted earnings per share were up 23% to 83.7 cents.
A final net dividend of 13.38 cents per share was recommended. When added to the interim dividend of 7.74 cents per share, this gives a total dividend of 21.12 cents per share for the year and is up 20% on the previous year's dividend.
DCC's chief executive Jim Flavin said 2000 was 'another year of excellent organic profit growth'. 'A further increase in DCC's high return on capital employed are the key features of these results,' he added.
'Operating in diverse growth markets, with a very strong balance sheet, DCC is well positioned, in these more uncertain times, to continue to achieve strong growth and excellent longterm shareholder value', he said.
DCC operates mainly in the IT, energy and healthcare markets in Ireland and the UK and is currently expanding its IT and healthcare activities in Europe.
The company spent 20.2 million euro on acquisitions last year, and said it was actively pursuing a range of bolt-on acquisitions in the IT, energy and healthcare sectors.
In the energy field, DCC said it had signed an initial agreement to acquire part of BP's commercial, agricultural and domestic oil business in Scotland and northern England. The business employs over 200 people, but Flavin would not indicate the price that will be paid.
He said it was part of the company's strategy to develop an oil distribution business across Britain.
Outlining its divisional performance DCC said operating profits at the IT distribution operation were up 52.5% at 31.2 million euro.
Energy operating profits were up 17.8% at 23.6 million euro, with strong organic growth and a strengthening of the company's position in Northern Ireland through the acquistion of Fuel Services in July 2000.
Operating profits in the healthcare division were up 27.4% at 20.3 million euro.
The company's other activities, including its food businesses, performed less well, with operating profits down 4.2% at 16.6 million euro. DCC blamed the fall in the value of the euro against sterling.
