13th May 2025 08:51
(Alliance News) - DCC PLC on Tuesday announced plans to return GBP800 million to shareholders as it pushes ahead with plans to focus on its Energy business.
The news came as the Dublin-based sales, marketing, and support services provider said pretax profit fell 18% to GBP294.9 million in the year to March 31 from GBP359.2 million a year prior. Diluted earnings per share declined 37% to 208.44 pence from 329.85p.
Revenue fell 4.4% to GBP18.01 billion from GBP18.85 billion due to lower revenue in DCC Energy where average commodity prices were lower.
Revenue in DCC Energy fell 6.0% to GBP13.4 billion while sales in DCC Technology increased 0.3% to GBP4.6 billion, mainly driven by revenue growth in Pro Tech.
Adjusted operating profit from continuing operations increased 3.0% to GBP703.6 million from GBP682.8 million a year prior, below GBP713 million consensus, cited by RBC Capital Markets.
Last November, DCC announced the sale of DCC Healthcare for an enterprise value of GBP1.05 billion.
On Monday, DCC said it plans to return GBP800 million of proceeds to shareholders.
This will comprise a GBP100 million share buyback, which will begin shortly, a GBP600 million return on completion of the deal, and a further GBP100 million following receipt of deferred consideration in around two years.
The deal is expected to close in the third quarter of 2025.
Chief Executive Donal Murphy said: "Our sale of DCC Healthcare enables a material return of capital to shareholders. We will focus our efforts on Energy, our largest and highest-returning business. We are energised about the future."
Free cash flow declined to GBP588.8 million from GBP681.1 million and return on capital employed fell to 15.3% from 15.5%.
The dividend was increased by 5.0% to 206.40p from 196.57p.
Looking ahead, DCC said it expects the year to March 31 2026 will be a year of "good operating profit growth on a continuing basis, strategic progress and continued development activity."
Shares in DCC were down 3.2% at 4,909.24 pence on Tuesday morning in London. The wider FTSE 100 index was up 0.1%.
By Jeremy Cutler, Alliance News reporter
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