Business support services company DCC said its group operating profit for the first quarter to June was in line with expectations and, as anticipated, well ahead of the same time last year.
In a trading update issued ahead of its AGM today, the company said the improvement was driven by acquisitions it had made in the previous year.
DCC noted that its profits are significantly weighted towards the second half of its financial year.
"At what is still a very early stage in the financial year, the Group reiterates its belief that the year ending 31 March 2019 will be another year of profit growth and development," the company said.
The company also announced it had agreed to buy two companies for a total of €110m - Stampede in the US and Kondor in the UK.
Stampede is a specialist distributor of professional audio-visual products and solutions in the US, Canada and the UK.
It recorded revenue of $280m for 2017 and employs about 210 people.
The deal, which marks DCC Technology's first acquisition in North America, is consistent with the company's strategy to extend the geographic footprint and product range of its professional audio-visual business.
It will also strengthen its partnership with existing suppliers and broaden its base of customers and suppliers.
Meanwhile, Kondor distributes mobile and accessory products and provides outsourced category management solutions to the retail channel in the UK and Europe.
It recorded revenue of £110m for 2017 and employs approximately 250 people.
The company said the deal strengthens DCC Technology's position as one of the leading omnichannel distribution and supply chain businesses in Europe.
DCC said expects the two acquisitions to generate a return on capital employed of approximately 15% in the first full year of ownership.
"The acquisition of Stampede significantly strengthens DCC Technology's position in the attractive and growing Pro AV market and also provides DCC Technology with a platform for growth and development in North America," commented DCC CEO Donal Murphy.
"The acquisition of Kondor further enhances both DCC Technology's service proposition and its market position, where it has grown to be a leading service provider to the retail channel in Europe," he added.
