Interim Management Statement

RNS Number : 1259I

DCC PLC

20 July 2012

 



DCC plc

Interim Management Statement

Reiterating Full Year Guidance

DCC plc, the 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 ended 30 June 2012

The Group has had a solid start to its financial year to 31 March 2013, with overall trading ahead of budget.  The Group achieved good operating profit growth on continuing activities, on a constant currency basis, for the first quarter to 30 June 2012.

DCC Energy, the Group's largest division, for which weather conditions were more favourable than in the first quarter last year, generated good organic volume growth and traded ahead of both the prior year and budget.  It is important to note however that DCC Energy's profits are heavily weighted towards the second half of the Group's financial year.

Operating profit in DCC SerCom, the Group's second largest division, (in which profits are also significantly weighted to the second half) was broadly in line with budget in what is, as anticipated, a challenging trading environment, particularly relating to demand for products targeted at the home entertainment market.

DCC Healthcare and DCC Environmental traded ahead of the prior year while the Group's smallest division, DCC Food & Beverage, was impacted, as anticipated, by the loss of a logistics contract in the prior year.

Year to 31 March 2013

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 Group reiterates its guidance for the year to 31 March 2013 as previously outlined in its Preliminary Results announcement on 15 May 2012.

This guidance continues to be set against an uncertain economic environment and the important assumption that there will be a return to more normal winter temperatures compared to the extremely mild winter last year, which should give rise to a strong recovery in DCC Energy's operating profit. Consequently, the Group anticipates that its operating profit and adjusted earnings per share on continuing activities, both on a constant currency basis, will be approximately 15% ahead of the prior year.  This would result in approximately a 20% increase in operating profit and in adjusted earnings per share compared to the prior year on a reported basis, assuming an exchange rate of Stg£0.80 = €1.

Development Activity

The cash outlay on acquisitions in the quarter was €25 million, including deferred acquisition payments.

In April 2012, DCC Energy acquired Medical Gas Solutions Limited, a company that supplies analgesic gas cylinders to ambulance trusts in Britain and is complementary to DCC Energy's LPG business. This acquisition was previously reported in DCC's Preliminary Results announcement of 15 May 2012.

In May 2012, DCC SerCom acquired Go Telecom BV, a small Dutch business providing products and services in unified communications.

In June 2012, DCC Healthcare acquired Vitamex Manufacturing AB (formerly Midsona Manufacturing AB) ("Vitamex").  Vitamex provides product development, registration, manufacturing and packing services to a range of leading Swedish and international consumer healthcare and health & beauty brand owners.  This acquisition is in line with DCC Healthcare's strategy to broaden the range of services it provides to brand owners in the health & beauty sector and to expand its European customer base. This acquisition was previously announced on 29 June 2012.

The Competition Commission's ("CC") review of the acquisition by DCC Energy of certain oil distribution assets previously owned by Total in Britain is progressing on schedule. DCC still considers that the CC's more detailed review of the acquisition will enable it to conclude just how competitive the oil distribution market in the UK is.

As announced on 2 July 2012, the disposal of DCC SerCom's Enterprise business, Altimate Group SA, was completed following competition clearance from the European Commission.

The Group remains in a very strong financial position and is actively pursuing a range of development opportunities.

Date for Interim Results

DCC expects to announce its interim results for the six months to 30 September 2012 on Tuesday 6 November 2012. 

For reference:                                                                                               

Tommy Breen, Chief Executive

Fergal O'Dwyer, Chief Financial Officer

Redmond McEvoy, 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 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 2012, DCC generated revenues of €10.7 billion and operating profits of €185 million and currently employs approximately 8,600 people. DCC's shares are listed on both the Irish and London stock exchanges under Support Services.   

 

END

 

 

IMSEBLBLLDFEBBE