TIDMDCC
RNS Number : 6916E
DCC PLC
12 February 2015
12 February 2015
DCC plc
Interim Management Statement
DCC Reiterates Full Year Guidance
DCC plc, the international sales, marketing, distribution and
business support services group, is issuing this Interim Management
Statement in accordance with the reporting requirements of the
Transparency Regulations 2007.
Third Quarter ended 31 December 2014
Group operating profit in the third quarter ended 31 December
2014 was ahead of the prior year. There was good growth in
operating profit in each of DCC Technology, DCC Healthcare, DCC
Environmental and DCC Food & Beverage while DCC Energy
performed in line with the prior year.
In DCC Energy, both volumes and margins were held back by the
milder weather conditions across Northern Europe. In the UK, DCC
Energy's largest market, temperatures in each of October, November
and December were above the ten year average, continuing a trend of
milder than normal weather experienced in the first half.
Operating profit in DCC Technology, the Group's second largest
division, was ahead of the prior year, in what is the most
important trading quarter for the division. Revenue growth was
modest reflecting the anticipated lower sales of tablets and mobile
phones, although this was offset by a strong performance in PC's
and servers, an improved performance in France and the impact of
the CapTech acquisition.
DCC Healthcare traded well ahead of the prior year, benefiting
from continued strong growth in DCC Health & Beauty Solutions
and the benefit of first time contributions from Williams Medical,
acquired in May 2014, and Universal Products Manufacturing,
acquired in January 2014.
Operating profit in DCC's two smaller divisions, DCC
Environmental and DCC Food & Beverage, was ahead of the prior
year.
Year to 31 March 2015
The quarter to 31 March is a significant trading quarter for the
Group and is heavily influenced by trading in DCC Energy. In
January, temperatures in the UK were colder than the prior year and
modestly colder than the ten year average and overall trading for
the Group was in line with expectations.
The Group's full year guidance continues to be set against the
assumption that there will be normal weather conditions for the
remainder of the year. On this basis, DCC reiterates its
expectation that the year to 31 March 2015 will show growth in
operating profit and adjusted earnings per share in the range of 5%
- 10%.
Development Activity
The formal purchase agreement to acquire the assets that
comprise the Esso Express unmanned retail petrol station network
and the Esso Motorway concessions in France has now been signed,
following the conclusion of the French Works Council consultation
process. The work required to develop the IT and operational
infrastructure necessary to complete this transaction is on
schedule.
In November 2014, DCC Healthcare acquired Beacon Pharmaceuticals
Limited in a transaction based on an enterprise value of up to
GBP10 million. Beacon is a niche pharma business which markets and
sells its own licensed and third party pharma products primarily to
the hospital sector in the UK.
Total committed acquisition expenditure in the nine months to 31
December 2014 was GBP156 million. The cash outflow on acquisitions,
inclusive of a net movement in deferred and contingent acquisition
consideration, was GBP117 million.
The previously announced disposals of Allied Logistics and a
related property have now been completed. In addition, the
previously announced disposal of Robert Roberts and Kelkin is
expected to complete prior to 31 March 2015. The aggregate
consideration from these disposals is expected to be approximately
GBP52 million (EUR70 million).
DCC remains in a very strong financial position which leaves it
well placed to continue the development of its business in existing
and new geographies. DCC remains active on the acquisition
front.
Final Results
DCC expects to announce its results for the year to 31 March
2015 on Tuesday 19 May 2015.
For reference:
Tommy Breen, Chief Executive
Fergal O'Dwyer, Chief Financial Officer
Stephen Casey, Investor Relations Manager
Telephone: +353 1 2799400
Email: investorrelations@dcc.ie
Web: www.dcc.ie
Forward-looking statements
This announcement contains some forward-looking statements that
represent DCC's expectations for its business, based on current
expectations about future events, which by their nature involve
risk and uncertainty. DCC believes that its expectations and
assumptions with respect to these forward-looking statements are
reasonable, however because they involve risk and uncertainty as to
future circumstances, which are in many cases beyond DCC's control,
actual results or performance may differ materially from those
expressed in or implied by such forward-looking statements.
About DCC plc
DCC plc is an international sales, marketing, distribution and
business support services group headquartered in Dublin with
operations in Britain, Continental Europe and Ireland. DCC has five
divisions - DCC Energy, DCC Technology, DCC Healthcare, DCC
Environmental and DCC Food & Beverage. In its last financial
year ended 31 March 2014, DCC generated revenues of GBP11.2 billion
and operating profits of GBP208 million and currently employs
approximately 10,500 people in 13 countries. DCC's shares are
listed on the London Stock Exchange and are included in the FTSE
All-Share Index and the FTSE 250 Index under Support Services.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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