Interim Management Statement

RNS Number : 8340V

DCC PLC

17 July 2009

 



DCC plc

 Interim Management Statement

DCC plc, the procurement, sales, marketing, distribution and business support services group listed on both the Irish and London stock exchanges, is issuing this Interim Management Statement in accordance with the reporting requirements of the Transparency Regulations 2007, in advance of the Company's AGM to be held in Dublin at 11.00 am today.  

First Quarter to 30 June 2009

Overall, DCC's operating profit for its first quarter to 30 June 2009 was ahead of budget, both on a reported and constant currency basis, although, as anticipated, it was behind the first quarter of last year.  Constant currency operating profit in DCC Energy, DCC's largest division, was ahead of budget and broadly in line with the first quarter of the prior year, despite the fact that the particularly cold weather in April 2008 (seasonally the most important month in the first half of the financial year) was not repeated in April 2009.  DCC SerCom, DCC's second largest division, also traded ahead of budget in the quarter and was modestly behind the prior year on a constant currency basis.  As expected, and as reflected in the Group's outlook statement on 19 May 2009, DCC's other businesses were impacted, relative to the first quarter in the prior year, by the effects of the marked economic slowdown experienced in the second half of the Group's financial year to 31 March 2009.  

DCC continues to have a heightened focus on working capital management throughout the Group and the cash flow performance in the first quarter was ahead of budget.  

Year to 31 March 2010

The Group's outlook for the year to 31 March 2010 remains unchanged from that set out in DCC's Preliminary Announcement on 19 May 2009. As stated at that time, while the first half of the Group's financial year is seasonally much less significant (33.6% of operating profit last year), results for this period compared to the first half of the prior year will be challenged by the impact of the marked economic slowdown which particularly affected some of the Group's businesses in the second half of last year.  

For the full year to 31 March 2010, the Group continues to expect that operating profit, on a constant currency basis, will be modestly behind to broadly in line with last year.  

The Group will benefit from a significant reduction in its net finance costs as a result of lower prevailing interest rates although this will be largely offset by a higher tax charge due to lower available interest deductions in the UK against the Group's taxable profits.

Consequently, at this stage DCC continues to anticipate that adjusted earnings per share, on a constant currency basis, will be modestly behind to broadly in line with the year ended 31 March 2009.  However, while there has been a modest strengthening in the value of sterling since 19 May 2009, the impact of the translation into euro of the significant proportion of DCC's profit which is earned in sterling at an average exchange rate of Stg£0.87 = €1 (compared to an average translation rate last year of Stg£0.8262 = €1) would still result in reported operating profit being in the range of 5% to 10% behind last year.  

DCC's diversified business model, continuing strong financial position and excellent cash generation leave the Group well positioned to benefit from acquisition and development opportunities that are likely to arise in the current environment.

DCC expects to announce its interim results for the six months to 30 September 2009 on Tuesday 10 November 2009.  

For reference:    

Tommy Breen, Chief Executive

Fergal O'Dwyer, Chief Financial Officer

Conor Murphy, Investor Relations Manager 

Telephone: [phone]

Email: [e-mail]

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 risks and uncertainties. DCC believes that its expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve risk and uncertainty, which are in some cases beyond DCC's control, actual results or performance may differ materially from those expressed or implied by such forward-looking information.

About DCC plc

DCC plc is a procurement, sales, marketing, distribution and business support services group headquartered in Dublin with international operations across four continents. DCC has five divisions - DCC Energy, DCC SerCom, DCC Healthcare, DCC Food & Beverage and DCC Environmental. In its last financial year to 31 March 2009, DCC had sales of €6.4 billion and operating profits of €180.4 million and currently employs approximately 7,200 people. DCC's shares are listed on both the Irish and London stock exchanges under Support Services.  

 

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