Distribution group DCC (DCC) marked twenty years as a listed company with a strong set of full-year numbers. Adjusted earnings per share rose 12 per cent year-on-year to 191p; well ahead of the 7-10 per cent earnings growth guidance given in February.
DCC has increased its dividend in each of those twenty years with a compound annual growth rate of 15 per cent. Earnings, meanwhile, have grown in all but one of them. Chief executive Tommy Breen says DCC's spread of customers and markets have given it resilience: "diversity has worked for us."
The energy division, which distributes oil and liquefied petroleum gas, only grew profits by 4 per cent last year as a mild winter hit demand. But the technology and healthcare distribution businesses took up the slack, increasing profits by 16 per cent and 37 per cent, respectively.
Acquisitions have also played a key role in DCC's expansion, contributing around half of the earnings growth last year. Mr Breen says execution risk is kept to a minimum by going for bolt-ons rather than large deals: "we tend not to bet the shop on it."
Early indications are that DCC's twenty-first year should see further progress and JPMorgan Cazenove is forecasting 10 per cent growth in adjusted earnings per share to 209p.
| DCC (DCC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 3,263p | MARKET VALUE: | £2.7bn | |
| TOUCH: | 3,261-3,267p | 12-MONTH HIGH: | 3,395p | LOW: 2,462p |
| DIVIDEND YIELD: | 2.4% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 1,123p | NET DEBT: | 9% | |
| Year to 31 Mar | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (c) | Dividend per share (c) |
|---|---|---|---|---|
| 2010 | 6.7 | 165 | 159 | 67.44 |
| 2011 | 8.7 | 190 | 174 | 74.18 |
| 2012 | 10.7 | 133 | 123 | 77.89 |
| (£bn) | (£m) | (p) | (p) | |
| 2013 | 10.6 | 133 | 127 | 69.86 |
| 2014 | 11.2 | 151 | 145 | 76.85 |
| % change | +6 | +14 | +14 | +10 |
Ex-div:28 May Payment:24 Jul * Includes intangible assets of £744m, or a 887p share | ||||
