19th May 2020 08:25
(Alliance News) - DCC PLC on Tuesday raised its payout, despite earnings falling during a year which the FTSE 100 support services firm said presented "challenging market conditions", Brexit uncertainty, and now the Covid-19 outbreak.
In the year ended March 31, revenue inched 3.1% lower to GBP14.76 billion from GBP15.23 billion. Pretax profit was down 4.9% to GBP311.5 million from GBP327.4 million.
A net exceptional charge of GBP63.0 million also hit profits, this was largely due to a GBP34.7 million loss on a disposal and GBP22.5 million in restructuring and integration costs. In financial 2019, DCC posted a net exceptional charge of GBP24.6 million.
DCC said it was a "strong performance for the year, with all divisions delivering growth, notwithstanding the challenging market conditions experienced during the year including Brexit uncertainty and the emergence of the Covid-19 pandemic".
The company operates four units, DCC Healthcare, DCC Technology, the liquefied petroleum gas unit, and DCC Retail & Oil, focused on sales and marketing of fuels and heating oils.
Revenue in the healthcare unit was 0.3% higher at GBP578.1 million and in technology it rose 7.8% to GBP3.91 billion. DCC LPG had a 6.8% revenue fall to GBP1.66 billion, and DCC Retail & Oil, though still the largest revenue contributor, suffered a 6.9% fall to GBP8.61 billion.
In a positive move for investors, DCC raised its dividend by 5.0% to 145.27 pence from 138.35p. It comes at a time when many other companies have decided against payouts due to the Covid-19 pandemic.
Chief Executive Donal Murphy said: "Covid-19 presents significant challenges to society and the economies in which we operate. The uncertainty it has created is like nothing we have seen in our lifetimes and our number one priority during this time is to keep our employees safe and well. All DCC businesses have and continue to operate effectively during this extraordinary period, ensuring our customers receive the range of essential products and services DCC provides."
DCC said it performed "robustly in April and the early weeks of May".
"Relative to initial expectations at the beginning of April, the performance of the group has been better than anticipated, albeit behind the prior year," the company added.
Shares in the company were 4.3% higher at 6,244.00p each in London on Tuesday morning.
By Eric Cunha; [email protected]
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