Business services group DCC has reported operating profits of €185m for the year to the end of March.
This is down 19.4% on the previous year as the company was hit by higher oil prices and the continuing difficult economic background.
The company also said that very mild weather impacted trading in its DCC Energy division during the year.
Revenues for the year, however, rose by 23.2% to €10.69 billion on the back of acquisitions and strong organic growth in its SerCom division.
The company said it is proposing a 5% increase in the final dividend to give a total full year dividend of 77.89 cent.
In its results statement, DCC said the outlook for the year ahead is set against a continued uncertain economic environment and the important assumption that there will be a return to ''more normal winter temperatures'' compared to the extremely mild winter last year.
''At this early stage, the group anticipates that its operating profit and adjusted earnings per share on continuing activities will be approximately 15% ahead of the prior year,' commented DCC's chief executive Tommy Breen.
''DCC retains a strong equity base, relatively long term debt maturities and significant cash resources which leave it well placed to take advantage of further acquisition and development opportunities,'' he added.
Breaking down the group's divisions, DCC said its Energy sector has a very difficult year with operating profit falling by 39.2% to €83.5m while revenues rose by 27.6% to €7.823 billion. The fall in operating profit was due to the very mild winter weather, higher oil prices and the difficult economic conditions, especially in the UK.
During the year, the company made a number of acquisitions which it said has strengthened its position in oil distribution in Britain and extended its oil distribution operations in Europe. These included Pace Fuelcare, and some Total assets.
Its SerCom division saw revenues rise by 16.7% to €2.181 billion, while operating profits rose 15.7% to €53.2m. The group now accounts for 94% of operating profit in the group. In April, DCC agreed to sell Altimate Group, its distribution enterprise business, subject to clearance from the European Commission. It said it will now focus on the supply of IT, communication and home entertainment products to retail and reseller customers.
DCC's Healthcare division saw operating profits for the year rise by 4.1% to €23.4m while revenues grew by 6.1% to €330m. The increases were seen despite the challenging market background, especially in Ireland. The company said the division is well placed for 2012.
Revenues at its Environmental division increased by 24.7% to €132.7m while operating profits rose by 22.6% to €14.2m as it benefited from the first time contribution of Oakwood Fuels. It said the business in Ireland performed well, driven by the development of innovative solutions for hazardous waste and tight control of costs.
Operating profits at its Food and Beverage fell by 7.2% to €10.7m while revenues dropped 11.4% to €223.4m mainly due to the loss of a major contractor in the frozen and chilled logistics business in he second half of the year.
