DCC'S FIVE DIVISIONS ALL SEE OPERATING GROWTH - DCC, a company with five divisions ranging from energy, IT and healthcare, to food and drinks, has full year results out this morning. They show that DCC's operating profit rose by 19% to €229.6m, and profit before tax 18% higher at €214.8m. The company said that it had a very strong year with all of its divisions reporting operating profit growth, against a backdrop of difficult economic and trading conditions in certain markets.
DCC's chief executive Tommy Breen says that he is very pleased with the results as it is always a challenge to get all five divisions going in the right direction at the same time. He says DCC's energy and SerCom divisions saw very strong growth, with both divisions benefiting from acquisitions which are now well integrated. The energy business also benefited from the cold winter weather, but he says that the record mild temperatures in April will temper profits this year.
Mr Breen says that Ireland has become a much smaller part of the business with Ireland now generating just 15% of its overall profits. He adds that the Irish market remains difficult, with profits flat. On the coming year, the DCC boss says the company's outlook is reasonably optimistic. He says some uncertainty does remain, especially in the UK, but adds that the company has a strong balance sheet and is always looking for ways to deploy its capital.
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MORNING BRIEFS - United Drug, which looks after supply chain, sales and packaging for the healthcare sector, has results for the six months to the end of March. It has reported revenues of €894m, an increase of 5% on the same period in 2010. Operating profit was up 6% at €37m and pre-tax profits of €32.7m is 4% ahead of 2010. In a statement, the company says that the continued challenging regulatory climate has had an impact on revenues in some of its Irish businesses, but its businesses outside Ireland now account for 65% of the firm's profits.
*** National Irish Bank has reported a pre-tax loss of €161m for the first three months of the year as it set aside €172m in provisions for bad debts. This marked an increase from the loss of €133m reported the same time last year. The bank, which is owned by the Danske Bank Group, says its first quarter operating profits fell by 18% to €11m. The bank said that its income fell by 17% to €35m due to reduced customer demand and the impact of bad loans. Costs also fell by 17% to €24m due to the bank's restructuring programme.
*** Despite a recent half percentage point rise, rents across the country are still 25% below their peak, at an average €825 a month. According to the latest report published by property website Daft.ie, rents in Dublin overall have now risen in three of the last four quarters, whereas rents continue to fall outside the main cities.
*** On the currency markets the euro is trading at $1.4275 cents and 87.2 pence sterling.
