Profits at industrial group DCC rise 16% to nearly €162m

Profits at industrial and distribution group DCC grew 16 per cent to almost €162 million in the 12 months to March 31st, the company reported yesterday. DCC said turnover increased 17.7 per cent during the period to €4 billion from €3.4 billion last year.

Operating profits were up 15.7 per cent at €143 million. Profit before tax grew 16.6 per cent to €161.8 million from €138.8 million last year.

DCC took €11.8 million in after-tax profits from Manor Park Homes, the property developer in which it has a 49 per cent stake.

This was less than half the €25 million it took out last year. DCC said yesterday that this decline was expected and blamed planning delays for the fall in profitability.

DCC and Manor Park's other shareholder, businessman Joe Moran, are in the process of selling the company.

Goodbody Corporate Finance and IBI Corporate Finance are handling the sale.

DCC said in a statement that the process was ongoing and added that it would make a further announcement "when appropriate".

Deputy chairman and chief executive Jim Flavin indicated yesterday that some of the proceeds could be used as an acquisition war chest.

"We would like to step up the scale of our acquisition activity," he said. "We're hoping to spend in the order of €1 billion in the next three years."

The group's earnings per share for the 12-month period grew 1.8 per cent to 160.02 cents. Stripping out the Manor Park contribution, it came to 143.51 cents, a growth of 15.8 per cent.

DCC is proposing to pay a dividend of 49.28 cents, an increase of 15 per cent.

The group has five divisions: energy, which includes the biggest oil distribution business in Ireland and Britain.

The other divisions are SerCom, which is involved in technology and telecoms services and distributes the XBox in Britain; healthcare, which distributes pharmaceutical and surgical products; food and beverages, which includes sales and distribution and the Kylemore business; and environmental, which is focused on recycling.

Energy contributed €60.5 million to operating profits, an increase of 8 per cent. Sercom's operating surplus jumped 35.3 per cent to €33.8 million and healthcare was up 6 per cent at €23 million.

Food and beverage slipped 2.2 per cent to €15.1 million, a fall which Mr Flavin blamed on weakness in the British off-licence trade.

Environmental services experienced the strongest growth at 91.4 per cent to €10.6 million operating profit.