Why invest in DCC?

DCC’s strategic objective is to continue to build a growing, sustainable and cash generative business which consistently provides returns on total capital employed significantly ahead of its cost of capital. This strategic objective has been unchanged since we became a public company in 1994.

We believe this over-arching strategic financial objective ensures we keep a clear focus on what creates value for our shareholders. It cannot be effective however without the detailed divisional business strategies which aim to deliver superior growth over the longer term.

Whilst DCC operates in four distinct sectors, the common theme is that we are an integral and established part of the value chain in our chosen sectors. The products and services we supply are used every day by millions of consumers and businesses, directly or indirectly. Our divisions are also bound by common DCC culture and values, a clear focus on performance and growth and a shared ambition to continue to build a stronger DCC.

Our strategic priorities

Creating and sustaining leading positions in each of the markets in which we operate.

Continuously benchmarking and improving the efficiency of our operating model in each of our businesses.

Carefully extending our geographic footprint to provide new horizons for growth.

Attracting and empowering entrepreneurial leadership teams, capable of delivering outstanding performance, through the deployment of a devolved management structure.

Maintaining financial strength through a disciplined approach to balance sheet management.

We believe we have four key reasons which support an investment in DCC. These reasons are driven by how we run and think about our business and the strategic priorities we set for ourselves.

DCC has leading market positions in its chosen sectors

DCC businesses have very strong market positions in their chosen sectors. This market strength builds resilience and assists in generating superior returns on capital employed. Strong market positions also assist in attracting high quality, entrepreneurial management teams to DCC, provide platforms for consolidation and bolt-on acquisition opportunities and also, over time, generate leads to extend our geographic footprint and product coverage into adjacent areas. Some of our leading market positions include:

  • #1 Oil business in the UK and Denmark, #2 LPG business in France, UK and Ireland.
  • #1 Technology distribution business in the UK & Ireland.
  • #1 Healthcare supplier to GP surgeries in the UK.
  • #1 Health and Beauty service provider in the UK.
No.1 Oil business in the UK, Sweden and Denmark, No.2 LPG business in France, UK and Ireland, No.1 Technology distribution business in the UK & Ireland, No.1 LPG business in sweden and norway, No.1 healthcare supplier to GP surgeries in UK, No.1 Health and beauty service provide in UK

DCC has a long track record of growth

Our experienced and stable management team focus on the detail in ensuring our sales and marketing processes are best in class, providing the best possible service to our suppliers and customers. Efficiency is extremely important to DCC and we are always looking at ways to improve our metrics to drive performance. This focus on the detail of our operations has driven our organic growth and, together with our acquisition activity, has resulted in a very long track record of growth. It has seen DCC grow from being a predominantly UK and Irish business to an international business now operating in 15 countries. DCC remains ambitious to continue this growth and development into the future.

X-axis Value Color
1994 17 #003f87
1995 19 #003f87
1996 22 #003f87
1997 24 #003f87
1998 29 #003f87
1999 36 #003f87
2000 43 #003f87
2001 51 #003f87
2002 56 #003f87
2003 62 #003f87
2004 71 #003f87
2005 75 #003f87
2006 82 #003f87
2007 95 #003f87
2008 117 #003f87
2009 149 #003f87
2010 171 #003f87
2011 196 #003f87
2012 161 #003f87
2013 187 #003f87
2014 208 #003f87
2015 228 #003f87
2016 301 #003f87
2017 364 #003f87
X-axis Value Color
1994 19 #4e4e52
1995 22 #4e4e52
1996 26 #4e4e52
1997 30 #4e4e52
1998 32 #4e4e52
1999 38 #4e4e52
2000 42 #4e4e52
2001 50 #4e4e52
2002 58 #4e4e52
2003 65 #4e4e52
2004 74 #4e4e52
2005 78 #4e4e52
2006 85 #4e4e52
2007 98 #4e4e52
2008 116 #4e4e52
2009 140 #4e4e52
2010 158 #4e4e52
2011 173 #4e4e52
2012 142 #4e4e52
2013 171 #4e4e52
2014 191 #4e4e52
2015 209 #4e4e52
2016 257 #4e4e52
2017 304 #4e4e52

DCC is extremely cash generative and financially strong

Converting our operating profits into cash flow has always been a critical focus for DCC. By focussing on delivering a very strong cash flow performance, we will maintain our financial strength which is important for our partners, enables us to be acquisitive and supports dividend growth for our shareholders. We believe our focus on cash flow and financial strength, with return on capital employed as our key metric, will deliver superior returns for shareholders over the longer term.

X-axis Value Color Value Color
1994 116% #4e4e52 103% #003f87
1995 89% #4e4e52 103% #003f87
1996 84% #4e4e52 103% #003f87
1997 98% #4e4e52 103% #003f87
1998 85% #4e4e52 103% #003f87
1999 95% #4e4e52 103% #003f87
2000 112% #4e4e52 103% #003f87
2001 63% #4e4e52 103% #003f87
2002 98% #4e4e52 103% #003f87
2003 66% #4e4e52 103% #003f87
2004 121% #4e4e52 103% #003f87
2005 73% #4e4e52 103% #003f87
2006 80% #4e4e52 103% #003f87
2007 79% #4e4e52 103% #003f87
2008 29% #4e4e52 103% #003f87
2009 141% #4e4e52 103% #003f87
2010 136% #4e4e52 103% #003f87
2011 84% #4e4e52 103% #003f87
2012 114% #4e4e52 103% #003f87
2013 111% #4e4e52 103% #003f87
2014 133% #4e4e52 103% #003f87
2015 138% #4e4e52 103% #003f87
2016 97% #4e4e52 103% #003f87
2017 114% #4e4e52 103% #003f87
X-axis Value Color
1994 4.79 #4e4e52
1995 6.07 #4e4e52
1996 7.11 #4e4e52
1997 8.1 #4e4e52
1998 8.58 #4e4e52
1999 9.99 #4e4e52
2000 11.31 #4e4e52
2001 12.94 #4e4e52
2002 15.07 #4e4e52
2003 18.02 #4e4e52
2004 22.51 #4e4e52
2005 25.39 #4e4e52
2006 29.21 #4e4e52
2007 33.5 #4e4e52
2008 39.79 #4e4e52
2009 51.51 #4e4e52
2010 59.84 #4e4e52
2011 63.22 #4e4e52
2012 67.64 #4e4e52
2013 69.86 #4e4e52
2014 76.85 #4e4e52
2015 84.54 #4e4e52
2016 97.22 #4e4e52
2017 111.8 #4e4e52

DCC can redeploy capital at sustainable and attractive rates of return – a core competence

DCC has completed over 200 acquisitions, most of them small, since we became a public company in 1994. Although organic growth will always be our primary focus, DCC has become a successful and efficient consolidator in our current markets and acquisitions have also enabled us to enter new product categories and new geographies, which have in turn opened up new avenues for growth for DCC. We have the financial and management capacity to continue to be acquisitive and importantly, we also believe we will continue to see opportunities in our chosen sectors.

X-axis Value Color
1994 32 #003f87
1995 9 #003f87
1996 32 #003f87
1997 26 #003f87
1998 7 #003f87
1999 48 #003f87
2000 31 #003f87
2001 21 #003f87
2002 48 #003f87
2003 72 #003f87
2004 11 #003f87
2005 66 #003f87
2006 45 #003f87
2007 86 #003f87
2008 144 #003f87
2009 83 #003f87
2010 109 #003f87
2011 64 #003f87
2012 137 #003f87
2013 168 #003f87
2014 50 #003f87
2015 124 #003f87
2016 394 #003f87
2017 620 #003f87