There has been progress across the board for Ireland's DCC (DCC), as full-year figures benefited from sterling's post-referendum decline and a series of acquisitions, culminating in last year's deals to acquire French natural gas company Gaz Européen and Dansk Fuels. With a substantial proportion of sales denominated in the euro, its strength fed into a 21 per cent increase in operating profits to £345m.
DCC has broadened and expanded its product offering on the acquisition trail, with recent bolt-on deals aided by a pick-up in economic activity on the continent. The energy distribution group increased traded energy volumes by 12.5 per cent, against an increase of just 1 per cent on a like-for-like basis. Adjusted operating profits at the group's largest division, DCC Energy, increased by 24 per cent to £255m, helped along by the prior-year acquisitions of French gas firm Butagaz and Gaz Européen.
Another double-digit dividend hike came as no surprise, with free cash flow up 43 per cent to £416m, backed by a conversion rate of 114 per cent. The cash position will also be bolstered by £219m once the sale of the environmental division completes.
JPMorgan Cazenove gives adjusted pre-tax profits of £344m for the March 2018 year-end, with EPS of 306p, against £332m and 302p in FY2017.
| DCC (DCC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 7,190p | MARKET VALUE: | £6.38bn | |
| TOUCH: | 7,170-7,190p | 12-MONTH HIGH: | 7,470p | LOW: 5,780p |
| DIVIDEND YIELD: | 1.6% | PE RATIO: | 32 | |
| NET ASSET VALUE: | 1,665p* | NET DEBT: | 8% | |
| Year to 31 Mar | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 10.6 | 133 | 127 | 69.9 |
| 2014 | 11.0 | 151 | 144 | 76.9 |
| 2015 | 10.6 | 163 | 153 | 84.5 |
| 2016 (restated) | 10.4 | 203 | 190 | 97.2 |
| 2017 | 12.3 | 248 | 227 | 111.8 |
| % change | +17 | +23 | +19 | +15 |
Ex-div: 25 May Payment: 20 Jul *Includes intangible assets of £1.4bn, or 1,602p a share. | ||||
