DCC PLC
5 July 2002
AGM Statement
5 July 2002
Addressing shareholders at the Annual General Meeting of DCC plc, the business
support services group, which was held today in Dublin, Jim Flavin, Chief
Executive/Deputy Chairman, made the following statement:
'DCC's largest business, DCC Energy, is budgeting for continued strong growth
in profitability in the current financial year. The winter is the most
significant trading period for the energy business and accordingly the profit
contribution from acquisitions made in the last financial year will be heavily
weighted towards the second half of the financial year.
DCC's IT distribution business has consistently out-performed the IT market,
increasing its profits by an average of 39% per annum in the five years to 31
March 2002. The severe downturn in the IT market began to impact on operating
profit growth from September 2001. However in recent months the business has
been experiencing a return to more stable trading patterns and resumed profit
growth is expected in the second half which will result in good growth in IT
distribution in the financial year overall.
In healthcare, DCC's hospital supplies business and nutraceuticals business
are trading in line with expectations. As noted in the Preliminary Results
announcement in May, the mobility and rehab business has been severely
impacted by the disruption of powered scooter supplies. The impact of this in
the current year will be greater than had been expected.
DCC's food business is budgeting for continued good profit growth.
Historically a greater proportion of DCC's profits have been earned in the
second half. Arising from the increased scale of the Group's energy
operations, it is anticipated that the second half weighting of DCC's profits
will be more pronounced in the current financial year. The Board expects that
profits in the first half of the financial year will be broadly in line with
the prior year.
The Board believes that DCC is well positioned to achieve strong growth in the
more significant second half of the financial year, which would result in good
growth for the full financial year.
DCC is actively pursuing a number of acquisition and development opportunities
within its business sectors. DCC's strong financial position in these more
uncertain times leaves it well placed to capitalise on these at an opportune
phase in the business cycle.'
About DCC
DCC is a business support services group focused on sales, marketing and
distribution in the energy, IT, healthcare and food markets, operating
principally in Britain and Ireland. In its latest financial year to 31 March
2002, DCC had sales of more than EUR 2 billion and generated operating profits
in excess of EUR 100 million. DCC's shares are traded on the Irish and London
Stock Exchanges. For further information please visit www.dcc.ie.
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