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DCC plc

DCC Plc Operating profit on continuing activities increased by 15.9% to £141.9 million

DCC Plc (LON:DCC), the leading international sales, marketing and support services group, announced today its results for the six months ended 30 September 2018.

Highlights

2018

2017

% change

DCC LPG volumes (thousand tonnes)

741.6kT

       645.6kT

+14.9%

DCC Retail & Oil volumes (billion litres)

6.157bn

6.011bn

+2.4%

Revenue – continuing1

(ex DCC LPG and DCC Retail & Oil)

£1.864bn

£1.616bn

+15.4%

Adjusted operating profit2 – continuing1

£141.9m

£122.5m

+15.9%

Adjusted earnings per share2 – continuing1

107.1p

95.5p

+12.1%

Interim dividend

44.98p

40.89p

+10.0%

Operating cash flow

£173.2m

£84.0m

                              

· Strong first half performance with Group adjusted operating profit on continuing activities increasing by 15.9% (up 16.5% on a constant currency basis) to £141.9 million, with all divisions performing in line with expectations.

· Adjusted earnings per share on continuing activities up 12.1% (13.0% ahead on a constant currency basis) to 107.1 pence.

· Interim dividend increased by 10.0% to 44.98 pence per share.

· The Group continues to be active from a development perspective and committed approximately £270 million to new acquisitions since the preliminary results in May 2018.

· Continued expansion of the Group’s presence in North America with DCC Technology entering the market for the first time through the acquisitions of Stampede and Jam. These complementary acquisitions provide DCC Technology with a strong platform for further development in the growing and fragmented North American market.

· On 27 September 2018, DCC raised approximately £600 million from an equity placing which completed on 2 October 2018. The proceeds of the placing will enable the continued implementation of DCC’s targeted acquisition strategy, by enhancing the balance sheet and liquidity of the Group, ensuring DCC remains a credible and capable acquirer and can efficiently execute acquisition opportunities as they arise.

· The Group reiterates its belief that the year ending 31 March 2019 will be another year of profit growth and development.

1 Continuing operations exclude DCC Environmental which was disposed of in May 2017

2 Excluding net exceptionals and amortisation of intangible assets

Commenting on the results, Donal Murphy, Chief Executive of DCC, said:

“I am pleased to report that the first half of the year has been another active and successful period for DCC. The business has performed strongly, with Group operating profit well ahead of the prior year and trading across each division in line with expectations.

DCC continues to be active from a development perspective. The recently completed acquisitions of Stampede and Jam further demonstrate DCC’s increased opportunity set for development resulting from the Group’s increased geographic presence. The successful completion of the equity placing leaves DCC very well positioned to continue its development and enhances the balance sheet strength and liquidity of the Group, ensuring DCC remains a credible and capable acquirer.

The Group’s significant development in recent years has resulted in DCC having the platforms, opportunities and capability to build the Group into a global leader in its chosen sectors.

The Group reiterates its belief that the year ending 31 March 2019 will be another year of profit growth and development.”

Presentation of results and dial-in / webcast facility

There will be a presentation of these results to analysts and fund managers at 9.00 am today in the London Stock Exchange. The slides for this presentation can be downloaded from DCC’s website, www.dcc.ie.

There will also be audio conference access to, and a live webcast of, the presentation. The access details for the presentation are:

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