Business support services company DCC said today that its group operating profit for the third quarter ended 31 December was in line with expectations and ahead of the previous year.
In an Interim Management Statement, DCC said that it saw a good trading performance and benefitted from acquisitions completed in the prior year despite the anticipated adverse impact of currency translation.
The company also completed the acquisition of US-based Almo Corporation, its largest acquisition to date, at the end of the quarter for £462m.
DCC operates in a range of sectors including technology and healthcare, but its gas and fuel forecourt operations are the biggest part of its business.
It said today it continues to expect that the year ending 31 March 2022 will be another year of strong operating profit growth, in line with current market consensus expectations.
This is despite the adverse impact of currency translation and the significant increase in the wholesale cost of energy products.
The company said its DCC LPG division traded "robustly" and in line with expectations during the third quarter of the financial year, despite the significantly increased cost of product which remained a headwind during the quarter. This was particularly evident in the natural gas and power segments of the division.
It said that demand conditions improved relative to the prior year, although some regions continued to experience restrictions which impacted commercial customers, particularly in the hospitality and leisure sectors.
Its Retail & Oil division again delivered strong operating profit growth, driven by a very strong performance in Britain and Ireland.
DCC said the business benefitted from good procurement and cost control, as well as growth in non-fuel income, lubricants and roadside services.
DCC Healthcare also delivered good growth, driven by a very strong performance from DCC Vital. While elective medical procedures and GP consultations continue to be impacted by Covid, DCC Vital continued to support healthcare systems with their product and service needs.
Meanwhile, DCC Technology reported very strong growth in North America and Continental Europe, offset, as expected, by a weaker performance in the UK market.
DCC said the business was also impacted during the quarter by the implementation in late summer of a new warehouse management system, although this is now operating effectively.
