DCC (LON:DCC) has updated investors on its recent performance this morning.
**Highlights from the company statement:**
· Very strong first half performance with Group operating profit increasing by 33.3% (up 26.5% on a constant currency basis) to £117.8 million, with all divisions recording growth on the prior year.
· Adjusted earnings per share up 31.1% (24.7% ahead on a constant currency basis) to 92.1 pence.
· Interim dividend increased by 12.5% to 37.17 pence per share.
· Continued very strong cash flow performance.
· The Group continues to be very active from a development perspective and, including those acquisitions announced today, has committed £181 million in acquisition spend in the period.
· As separately announced today, DCC Energy has agreed to acquire Gaz Européen, a leading French natural gas retail and marketing business, for an initial enterprise value of €110 million (£96 million). In addition, DCC Healthcare has agreed to acquire Medisource, a pharmaceutical procurement, sales and marketing business in Ireland for an initial enterprise value of €32 million (£27 million). The acquisition of Dansk Fuels in Denmark by DCC Energy, announced on 23 March 2016, was completed ahead of schedule.
· The Group expects that both operating profit and adjusted earnings per share for the year ending 31 March 2017 will be significantly ahead of the prior year and ahead of current market consensus expectations.
Commenting on the results, Tommy Breen, Chief Executive, said:
“I am very pleased to report that the first half of the year has been another very active and successful period for DCC. The results reflect continued execution of our strategy to grow the business organically, deliver a very strong cash flow performance and redeploy capital at attractive rates of return. The Group continues to have the ambition and capacity for further development and importantly, as DCC increases in scale and geographic reach, also has the opportunity to build substantial market positions in its chosen sectors. The Group expects that both operating profit and adjusted earnings per share for the year ending 31 March 2017 will be significantly ahead of the prior year and ahead of current market consensus expectations.”
As of 07:15 GMT, Monday, 14 November, DCC PLC ORD EUR0.25 share price is 6,035.00p.