Interim Management Statement

RNS Number : 6985J

DCC PLC

19 July 2013

 



19 July 2013

DCC plc

Interim Management Statement

Strong Start to the Year and Increase in 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 in advance of the Company's AGM to be held in Dublin at 11.00 am today. 

First Quarter ended 30 June 2013

The Group has made a strong start to its financial year to 31 March 2014 with overall trading well ahead of the prior year and budget. It should be noted, however, that having regard to the seasonal nature of trading in DCC Energy and DCC SerCom, the quarter to 30 June has, in recent years, represented less than 15% of DCC's full year operating profit. Nonetheless, it is pleasing that DCC has traded well ahead of its expectations in the first quarter.

DCC Energy, the Group's largest division, traded significantly ahead of both the prior year and budget. The business benefitted from colder than normal weather conditions, acquisitions in the prior year and good organic volume growth.

Revenue and operating profit in DCC SerCom, the Group's second largest division, were ahead of both the prior year and budget, principally reflecting continued strong sales growth in IT and communications products.

DCC Healthcare performed in line with budget and well ahead of the prior year, benefitting from a strong performance in DCC Health & Beauty Solutions and from the acquisition of Kent Pharmaceuticals which was acquired at the end of February 2013.

DCC's two smallest divisions, DCC Environmental and DCC Food & Beverage, traded broadly in line with budget.

Year to 31 March 2014

At what is still a very early stage in its financial year (particularly given that operating profit is significantly weighted towards the second half), the outperformance in the first quarter has enabled the Group to increase its guidance for the year to 31 March 2014 from that previously outlined in its Preliminary Results announcement on 14 May 2013.

This guidance continues to be set against the important assumption that there will be normal winter weather conditions. The Group now anticipates that its operating profit will be approximately 15% ahead (previously 10% - 12% ahead) of the prior year result which, in sterling, was £187 million and that adjusted earnings per share will be approximately 13% ahead (previously 8% - 10% ahead) of the prior year result which, in sterling, was 171 pence per share. 

Development Activity

DCC Healthcare has recently acquired Leonhard Lang UK Limited for an initial consideration of £11 million, exclusive of net cash acquired. This business is focused on the sales, marketing and distribution of medical consumables to hospitals and ambulance services in Britain.  It has strong market positions in its key product categories - diagnostic and monitoring electrodes, electrosurgical consumables, AED (automated external defibrillator) pads, laparoscopic surgical consumables and other operating theatre consumables.  The business will be integrated into DCC Healthcare's devices business, bringing new expertise and expanding its product portfolio and customer relationships in Britain.

During the first quarter, DCC Energy completed the planned integration of the former BP LPG business in Britain with DCC's existing LPG distribution business and of the former Total oil distribution business in Britain with its existing oil distribution business. The process of integrating Kent Pharmaceuticals into DCC Healthcare's pharma business is on schedule.

The Group remains in a very strong financial position to pursue a range of development opportunities.

Listing Arrangements

Since the cancellation of DCC's listing on the Irish Stock Exchange on 3 May 2013, DCC's shares are now listed solely on the London Stock Exchange. In addition, DCC's shares have been included in the FTSE All-Share Index and the FTSE 250 Index since 24 June 2013.

Date for Interim Results

DCC expects to announce its interim results for the six months to 30 September 2013 on Wednesday 6 November 2013.

For reference:                                                                                               

Tommy Breen, Chief Executive

Fergal O'Dwyer, Chief Financial Officer

Stephen Casey, 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 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 SerCom, DCC Healthcare, DCC Environmental and DCC Food & Beverage. In its last financial year ended 31 March 2013, DCC generated revenues of £10.6 billion and operating profits of £187 million and currently employs approximately 9,500 people. 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.   

 

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