DCC, the marketing and distribution group, has upgraded its earnings guidance and spent €11.8 million acquiring two businesses in the healthcare and oil markets in Britain.
Shares in DCC rose by three per cent on the Dublin market to close at €17 after chief executive Jim Flavin told its agm that the group expected the growth in its adjusted earnings per share to be ahead of market expectations and into double digits.
"The group's business is significantly second-half weighted and in the current financial year DCC has budgeted for approximately 70 per cent of group operating profit to be earned in the second half," DCC's agm statement outlined.
In healthcare, DCC spent €8.5 million on 76 per cent of Physio-Med, a Derbyshire-based supplier of physiotherapy and related products to hospitals, private practitioners and consumers. The remaining 24 per cent of the shares are subject to call and put options over the next four years.
DCC also spent €3.3 million on Brett Fuels, a Newcastle-based company which distributes an annual total of 45 million litres of oil. Further deals of a similar scale in this market were in the pipeline.
He said the acquisition last month of DVD and computer game distributor Pilton would diversify its IT division towards the entertainment market away from the corporate hardware market, where trading conditions are difficult.
Asked after the meeting whether DCC would consider a bid for Shell's retail and commercial business, Mr Flavin said: "I would note that that's a business which is predominantly involved in petrol retailing and that's not our particular area."
There was no detailed comment on the long-running High Court case in which DCC is defending allegations of insider-dealing made by Fyffes, with Mr Flavin stating after the meeting that the matter was sub judice.
A shareholder, Jeremy Craig, questioned why there was no contingent liability in the accounts for damages should the case go against DCC, adding that there was a possibility that the company could face a "very large expense".
DCC chairman Alex Spain said it was "a serious decision" of the board not to include a contingent liability.
Company director Paddy Gallagher said DCC had considered the position in great detail and said the accounts reflected the position of the board and audit committee.
"It's not as if we didn't kick the tyres very hard. We certainly didn't do it in any glib way," said Mr Gallagher.
He said he would be shocked, surprised and gutted if the case went against DCC.
Company auditors PricewaterhouseCoopers said they concurred with the decision not to include a contingent liability.
