Marketing and distribution group DCC today posted an 8.5 per cent rise in underlying annual pretax profit on the back of a 24 per cent increase in sales.
The group, which has IT, healthcare, food and beverages and energy divisions, said profit before net exceptional items, goodwill amortisation and tax rose to €126 million for the year to March 31st on sales of €2.73 billion.
DCC set a dividend of 37.26 cents per share, up 15 per cent on the year earlier and above the 36.3 cents per share expected by analysts, according to Reuters Estimates.
The group, which spent €131.3 million on development and acquisitions such as Shell's heating oils and transport fuels distribution business in the UK, said it was actively pursuing further acquisitions in each of its divisions.
"Having completed several acquisitions during the year, DCC is focused on leveraging its business platforms, management capacity and financial strength to deliver continued organic and acquisitions growth," Chief Executive Jim Flavin said in a statement.
Goodbody Stockbrokers said in a market note DCC's 11.7 per cent rise in earnings per share, on a fully diluted basis, was slightly below its forecast, adding: "We still believe we have scope to increase our FY 2006 forecasts".
However, dealers said the market was disappointed by the performance of the group's IT division where earnings before interest, tax and amortisation fell a worse-than-expected 12 percent amid difficult trading conditions.
Shares in DCC, which have risen nearly 40 per cent over the past 12 months, were down 3.8 per cent at €16.35 earlier this morning on a mildly negative ISEQ index of shares.