Shares in DCC gained 3.6 per cent to close at €15.95 after the industrial holding group beat forecasts by reporting a smaller fall in first-half earnings than expected by the market.

Investors responded positively after the group said its adjusted earnings per share of 45.34 cent in the six months to September was down 4.4 per cent on the same period last year, better than its own prediction of a 10 per cent fall.

DCC also declared a 15 per cent increase in its interim dividend to 15.54 cent as its board forecast "double-digit growth in the seasonally more important second half of the financial year".

Revenues in the first half of the financial year rose 37.5 per cent to €1.53 billion, while the overall operating profit, excluding exceptionals and amortisation of intangible assets, were up 2.9 per cent at €38.6 million.

In line with DCC's warning to the market in September, operating profit in the IT and entertainment division fell 37 per cent to €7.6 million.

Chief executive Jim Flavin attributed the difficulties to price deflation, pressure on margins, a deterioration in the British retail sector and a decline in the French enterprise market.

However, DCC's healthcare business saw operating profits rise 48.1 per cent to €10.1 million and the food and beverage operating profits rose 37.9 per cent to €7.4 million. Operating profit in the energy division rose 1.2 per cent to €10.7 million and Mr Flavin said the division was well-positioned for the second half of the year.

Davy Stockbrokers analyst Florence O'Donoghue said the positive tone of the results statement "suggests it has been oversold and is due a rebound".

NCB Stockbrokers analyst John Sheehan said he expected DCC to maintain a full-year earnings per share forecast of 144.2 cent, up 5 per cent on the previous year.

DCC said in its interim report that it anticipated a judgment before Christmas in the long-running insider dealing case taken against it by Fyffes. Asked whether DCC had made any contingency plans for action to take should the High Court rule against it, Mr Flavin said that the DCC board remained steadfastly behind the company's defence of the case.

He said he should say no more than that as the matter was "very sub judice". No date had been given for a judgment, other than the "general expectation" that it would be handed down before Christmas.