REG-DCC PLC Interim Management Statement
Released: 18/07/2008
RNS Number : 3582Z
DCC PLC
18 July 2008
18 July 2008
DCC plc
Interim Management Statement
DCC plc, the procurement, 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.
DCC had an excellent first quarter to 30 June 2008. Earnings1 were
significantly ahead of both last year and budget, notwithstanding the adverse
impact of the weaker sterling/euro exchange rate on the translation into euro of
DCC's sterling denominated profits.
DCC's largest division, DCC Energy, achieved excellent operating profit growth
in the quarter, benefiting from the favourable impact on its results of the much
colder weather in Britain and Ireland in April compared to the same month last
year. DCC SerCom, DCC Food & Beverage and DCC Environmental all achieved
underlying double digit operating profit growth and traded ahead of or in line
with budget. Operating profit in DCC Healthcare was held back by weaker than
expected trading conditions in the acute care sector in Ireland.
DCC's strong start to the year is encouraging. However, the Board is conscious
of the deteriorating economic conditions in the geographic markets in which DCC
operates, particularly given that the Group's profits are significantly second
half weighted (in the year to 31 March 2008 70% of Group profits were earned in
the second half). DCC's current expectations are to achieve approximately 10%
growth in earnings1 on a constant currency basis in the year to 31 March 2009.
The impact of the translation into euro of the significant proportion of Group
profits that are sterling denominated, at the current exchange rate of
approximately Stg£0.8 = E1, would result in reported earnings1 being in line
with those reported last year.
DCC's diversified business model provides defensive qualities and along with its
strong balance sheet leaves the Group well placed both commercially and
financially in these more uncertain economic times and allows the Group to
continue to pursue acquisition and development opportunities.
DCC expects to announce its interim results for the six months to 30 September
2008 on Monday 10 November 2008.
_______________________
1 Adjusted EPS i.e. earnings per share excluding the impact of net exceptionals
and amortisation of intangible assets
For reference:
Tommy Breen, Chief Executive
Fergal O'Dwyer, Chief Financial Officer
Conor Murphy, Investor Relations Manager
Telephone: +353 1 2799400
Email: investorrelations@dcc.ie
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 procurement, sales, marketing, distribution and business support
services group headquartered in Dublin with international operations across four
continents. DCC has five divisions - DCC Energy, DCC SerCom, DCC Healthcare, DCC
Environmental and DCC Food & Beverage. In its last financial year to 31 March
2008, DCC had sales of E5.532 billion and operating profits of E167.2 million
and currently employs approximately 7,000 people in 16 countries. DCC's shares
are listed on both the Irish and London stock exchanges under Business Support
Services.
This information is provided by RNS
The company news service from the London Stock Exchange
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