Business support services group DCC warned operating profits for the full year would be lower today, after mild weather in September and October hit demand in its energy division.
The company said operating profits and adjusted earnings per share were now expected to be in a range of 5-10%, compared to earlier expectations of 10-12%.
DCC, whose activities range from oil distribution to waste management and food distribution, posted a 1.9% rise in first half revenues to £5.5 billion.
Operating profits for the six months to the end of September rose by 6.4% to £73.2m from £68.8m the same time last year.
Its dividend per share rose by 10% to 27.73 pence from 26.12 pence.
During the six month period, the group said it spent £148m on acquisitions.
It recently agreed a deal to sell the Irish subsidiaries of DCC Food and Beverage (Kelkin, Robert Roberts and Allied Logistics) for about €75m.
DCC's chief executive Tommy Breen said that DCC Energy’s operating profit was modestly behind the prior year as its business was impacted by the very mild weather during the period particularly in the relatively important months of April, May and September.
But he added that operating profit, excluding DCC Energy, increased by 16.9% with each of the other four divisions reporting profit growth.
"Assuming normal winter weather conditions in the balance of the financial year, the group now expects that the year to 31 March 2015 will show growth in operating profit and adjusted earnings per share in the range of 5% - 10% over the prior year (previously approximately 10% - 12%)," the CEO added.
Breaking down the divisions, DCC said that revenues at its Energy division eased by 0.4% to £4.077 billion while operating profits fell by 4.7% to £31.9m as the business was hit by very mild weather in contrast to the colder than normal weather the same time last year.
The company noted that good progress was made in its strategy to build a larger presence in transport fuels and unmanned petrol stations.
Revenues at DCC's Technology division rose by 8.2% to £1.038 billion while operating profits rose by 7.7% to £15.2m. The business maintained its position as the leading distributor of IT, mobile and home electronics into the UK and Irish retail channel.
DCC said that revenues at its Healthcare division jumped by 25.3% to £236.9m while operating profits soared by 35.8% to £15.9m as the business benefited from acquisitions completed in the current and previous year. It also saw strong organic profit growth in DCC Health and Beauty Solutions.
Operating profits for the six month period at its Environmental division rose by 11.7% to £7.1m while revenues grew by 13.3% to £73.6m.
And revenues at its Food and Beverage division fell by 8.3% to £89m while operating profits jumped by over a third to £3.1m on the back of a strong performance in its wine business in Ireland and the UK.
