Shares in DCC (LON:DCC) have jumped in London in today’s session, as the company updated investors on its recent performance, reporting profit in line with expectations. The marketing and support services group further unveiled that its Technology unit had made acquisitions on both sides of the Atlantic.
As of 09:28 BST, DCC’s share price had added 3.04 percent to 7,110.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.63 percent higher at 7,699.48 points. The group’s shares have added less than one percent to their value over the past year, as compared with about a 3.5-percent gain in the Footsie.
DCC updates on first-quarter performance
DCC announced in a statement this morning that its operating profit for quarter ended June 30, was in line with expectations and, as anticipated, well ahead of the prior year, driven by acquisitions completed in the prior 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 blue-chip group said in the statement, cautioning, however, that its profits are significantly weighted towards the second half of its financial year.
Technology division unveils acquisitions
The company said in a separate statement that its Technology division had acquired Buffalo, New York-based Stampede, a specialist distributor of professional audio-visual products and solutions. DCC Technology also recently snapped up Kondor Limited, a provider of category management services for audio and mobile accessory products to the retail channel in the UK and Continental Europe.
The combined initial enterprise value of Stampede and Kondor is about £110 million. DCC expects the acquisitions to generate a return on capital employed of approximately 15 percent in the first full year of ownership.