Business support services company DCC said it continues to expect that the year ending March 2024 will be another year of operating profit growth in line with expectations, as well as continued development activity.
In a trading update for the third quarter ending December 31, DCC said that its group operating profit for the three month period was modestly ahead of the previous year.
DCC described this as a good performance given the "volatile macro environment".
Breaking down its divisions, the company said its DCC Energy unit delivered good operating profit growth, driven by the performance of Energy Solutions, despite mild weather conditions in most regions during the third quarter.
It said that although operating profit declined in both DCC Healthcare and DCC Technology, the rate of decline improved compared to the first half of the year.
Its DCC Healthcare, DCC Health & Beauty Solutions unit saw improved market conditions, but remained subdued relative to historic growth rates, while as in the first half of the year, DCC Technology experienced difficult trading conditions in the consumer technology sector.
The company reported an "active year" from a development perspective and has now committed about
£355m to acquisitions since its final results in May 2023.
Since its interim results in November 2023, DCC Energy has committed about £45m to new buys which will further strengthen the energy management services and renewables offering of the business.
These deals include the Energy Management division of eEnergy Group and complementary bolt-on acquisitions in Austria, Ireland and a renewable fuels distributor in the UK.
In November, DCC also announced a deal to buy Progas, a leading distributor of LPG in Germany - the deal is subject to regulatory approval.
