Higher profits from the housebuilding, energy and food divisions of business services group DCC contributed to a 7 per cent rise in pre-tax profits to €97 million in the 12 months to the end of March.
The performance - which includes a 13.2 per cent increase in operating profits before exceptional items - is ahead of market expectations with the company suggesting it is well placed to generate further growth in these key sectors this year.
Announcing its results yesterday, DCC chief executive Mr Jim Flavin said future growth would be achieved through organic growth and acquisitions.
"We are seeking growth in all areas. The energy sector is not recession-proof but it has proved more resilient in difficult times while we are hopeful that the information technology industry will turn up in the short term."
Adjusted earnings per share rose by 13 per cent to €1.11 and shareholders will see a 15 per cent increase in their dividend to 28.175 cent per share on the back of this performance.
DCC's main business areas are energy, information technology, food and healthcare and it also has an exposure to the housebuilding sector through its Manor Park business.
In the last financial year, some 54 per cent of the group's profits were generated in the UK market with the remainder coming from the Republic.
The energy division brought in the biggest contribution, yielding operating profits of €45.5 million, equal to 41 per cent of its total earnings. The company has a very substantial energy business distributing products such as LPG Gas to 220,000 customers in the UK and Ireland.
Despite difficult conditions in the information technology sector, its SerCom Distribution and SerCom Solutions business delivered 30 per cent or €32.9 million of the group's operating profits.
Some 98 per cent of total profits from these activities came from SerCom Distribution which has been boosted by the surge in demand for computer games and other software designed for the leisure industry.
Growth at its Irish food business, which includes the Kelkin health snacks foods company, posted a 9.5 per cent rise in sales to €185.3 million but was below analysts' expectations. The company said trading in the second-half of the year had been more challenging, particularly in snack foods.
The healthcare business was adversely affected by the loss of its supply of Shoprider powered mobility products. DCC is pursuing a legal action for breach of the terms of this contract.
Its other activities are principally Manor Park Homebuilders which contributed operating profits of €9.5 million, up from €5.5 million in the previous year. The company recorded 500 house closures this year, up from 370 in the same period last year, mainly at sites in west Dublin and Drogheda.
Yesterday analysts were indicating that they were happy to stick with their forecasts for the group with Davy Stockbrokers suggesting it may upgrade its forecast of a 12 per cent growth in earnings this year.
