DCC has reported pre-tax profits of €40.4m for the six months to the end of September, up 20% on the same period last year. Total revenue rose by 18% to €1.8 billion, and the group has raised its full-year growth forecast..
Adjusted earnings per share were 8% higher at 48.95 cent and a 15% higher interim dividend of 17.87 cent has been declared.
Chief executive Jim Flavin said the DCC board now expected mid-teen percentage growth in operating profit, because of strong growth in its energy, IT , healthcare and environmental divisions.
He said a 'short-term' fall in profits at its 49%-owned Manor Park Homebuilders would hold back growth in earnings per share, which would be in line with last year. Manor Park profits fell 16% to €4.7m, with the drop blamed on planning delays. It recently received planning permission for a development on the site of former Taoiseach Charles Haughey's home in north Dublin.
A breakdown of the results showed that profits at DCC's energy division rose 14% to €12.3m, on 21% higher sales of 4996m. DCC SerCom profits jumped 45% to €11m as sales rose 18% to €529m, helped by strong demand for consumer products including Microsoft's Xbox 360. SerCom distributes IT and entertainment products.
But healthcare profits dipped 0.7% to €10m, despite a 10% increase in sales to €112m. This was blamed on some product shortages and investment in new activities. Profits also fell 1.4% to €7.3m at the food and beverage arm, with revenue also down 2.3% to €136.5m. A strong performance in Ireland was offset by a flat wine market in the UK.
DCC's environmental division posted a 64% jump in profits to €4.6m as revenue almost doubled to €29m, benefiting from the acquisition of 50% of Scottish waste management business William Tracey last May. Today, DCC also announced the acquisition of a 90% stake in Nottingham-based Wastecycle for an initial €8.7m, with a further €8m depending on profit targets.
Shares in DCC closed up €1.30 at €23.30 in Dublin this evening, a jump of nearly 6%.
