DCC expects significant growth after Esso buyout

Energy-to-technologies conglomerate DCC said it expects full-year growth in operating profit and earnings per share to be significantly ahead of last year.

In an interim management statement, the Dublin-headquartered, London-listed group reiterated its previous full-year guidance and said first quarter operating profit was in line with the budget, with good growth recorded across its energy, healthcare and environmental divisions. It said DCC Technology had a weaker performance.

The group issued the statement ahead of its annual general meeting in Dublin today.

The group said its full year guidance continues to be set against the assumption there will be normal winter weather conditions.

DCC Energy traded ahead of budget after a good performance from its liquefied petroleum gas activities.

It said the acquisition of the Esso Express network and Esso Motorway concessions in France last month "provides DCC Energy with a scalable platform for further growth, particularly in the unmanned retail sector". The group said that business has traded in line with expectations.

Trading in DCC Technology, the group’s second largest division, was behind budget and the prior year. DCC said the business in the UK was impacted by a weak tablet market and reduced sales of mobile computing and smartphone products of one large supplier. There was also weaker demand and more competition across a number of product sectors.

Operating profit in DCC Healthcare grew in line with expectations, benefitting from a strong performance in DCC Vital, the group said.

DCC Environmental traded in line with budget and well ahead of last year.

DCC, which is due to announce interim results on November 10th, said it remains “well placed to continue the development of its business in existing and new geographies”.