The board of Irish company DCC has said that the company's percentage profit growth rate in the current financial may drop to a mid single digit figure.
According to a statement issued at the company's AGM this morning by the Chief Executive/Deputy Chairman, Mr Jim Flavin, a continuation of the current depressed state of demand in the IT industry could affect profits despite a growth in the first quarter.
"DCC achieved good profit growth in the first quarter of the financial year to 30 June with strong profit growth in Energy - the largest division, a reduced profit contribution from the IT division and good profit growth in Healthcare," Mr Flavin said.
"Profits in the smaller Food division were slightly behind and there was excellent profit growth in other activities.
" . . . However the board wishes to advise the market that a continuation of the current depressed state of demand in the IT industry may reduce DCC's percentage profit growth rate in the current financial year to approximately mid single digit."
He added that the company expects results in the first half of the financial year to be broadly similar to the first half last year and that the Group would achieve good growth in the seasonally more significant second half.
He also indicated that DCC is actively pursuing acquisition and development opportunities within each of its markets from its position of considerable financial strength.
DCC sells, markets and distributes its own and third party brands in the energy, IT, food and healthcare markets, principally in Britain and Ireland.
In its financial year to 31 March 2003, DCC had sales of €2.24 billion and generated operating profits of €111 million.
DCC was trading at 11.80, down 0.07 at 11:30