21st May 2014 08:57
LONDON (Alliance News) - DCC PLC on Wednesday declared a 10% increase in its annual dividend, as it reported strong gains in both revenue and profit in its recent financial year, driven by acquisitions and by strong organic growth in its Technology and Healthcare divisions.
The FTSE 250 sales and support-services group lifted its full-year dividend to 76.85 pence per share, up 10% from 69.86p the year before, which it said makes for the 20th consecutive year of dividend growth as a listed company.
Revenue for the full year ended March 31 rose 6.2% to GBP11.23 billion from GBP10.57 billion the year before, boosting pretax profit by 16% to GBP123.9 million from 106.6 million.
Operating profit rose 12% to GBP208.4 million from GBP186.9 million, led by a 37% increase at DCC Healthcare to GBP30.4 million from GBP22.2 million, which benefited from the acquisition of Kent Pharma in February 2013 and from a strong performance by DCC Health & Beauty Solutions, DCC said.
DCC Technology operating profit rose 16% to GBP48.1 million from GBP41.5 million, on strong organic growth in mobile computing and communications products in the UK.
DCC's largest division, DCC Energy, saw operating profit grow 4.0% to GBP110.5 million from GBP106.2 million, as the successful integration of recent acquisitions and some cost savings were offset by mild weather across Northern Europe, the company said.
DCC's two smallest divisions, DCC Environmental and DCC Food & Beverage grew operating profit by 8% and 26%, respectively.
Looking ahead to the current financial year, DCC said it expects 10% growth in operating profit and adjusted earnings per share. However, it expressed some caution.
"The outlook for the year to 31 March 2015 is based on the important assumption that there will be normal winter weather conditions," Chief Executive Tommy Breen said in a statement, adding: "Having regard to the unseasonably colder start to the prior year, it is anticipated that this growth in the year to 31 March 2015 will be significantly weighted towards the second half."
DCC shares were up 5.0% at 3,261.00 pence Wednesday morning, making them one of the top FTSE 250 risers.
By Tom Waite; [email protected]; @thomaslwaite
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