TIDMDCC
RNS Number : 1641W
DCC PLC
07 February 2017
7 February 2017
DCC plc
Interim Management Statement
Strong Growth in Third Quarter Operating Profit and Acquisition
of Esso's Retail Network in Norway
DCC plc, the international sales, marketing and business support
services group, is issuing this Interim Management Statement for
the third quarter ended 31 December 2016.
Third quarter ended 31 December 2016
Group operating profit for the third quarter ended 31 December
2016 was strongly ahead of the prior year and in line with
expectations.
DCC Energy recorded strong growth in operating profit,
benefitting from very strong organic volume growth in LPG and good
organic volume growth in both Retail & Fuelcard and Oil.
Heating-related volumes were in line with expectations, with the
milder weather conditions in the UK offset by colder conditions
elsewhere.
DCC Healthcare traded in line with expectations and the prior
year, benefiting from a strong organic performance from DCC Health
& Beauty Solutions, although DCC Vital was, as anticipated,
impacted somewhat by the trading headwind of the weakness in
sterling, particularly in pharma products.
Operating profit in DCC Technology was strongly ahead of the
prior year, benefitting from the contribution from the CUC
acquisition completed during the prior year and also from a strong
performance from the UK and Irish business which saw good organic
growth in the quarter.
DCC Environmental again delivered very strong year on year
organic growth, in both Britain and Ireland.
Year to 31 March 2017
DCC continues to expect that both operating profit and adjusted
earnings per share will be significantly ahead of the prior year
and in line with current market consensus.
Development Activity
The year to date has been another active development period for
DCC. Including the acquisition of Esso Retail Norway(1) , announced
separately this morning, the Group has committed to acquisition
expenditure of c. GBP430 million.
Today's announcement of DCC Energy's acquisition of Esso Retail
Norway is another material step for DCC in building its retail
petrol station business in Europe. The national network sells c.
600 million litres of fuel annually and is the third largest in
Norway with approximately 20%(2) of retail volumes. It comprises
142 company-operated sites (127 retail service stations and 15
unmanned stations) and has contracts to supply 108 Esso-branded
dealer owned stations. The total consideration will be NOK 2.43
billion (c. GBP235 million), plus the value of stock in tank at the
date of acquisition, all payable in cash on completion. The
acquired business, which is substantially asset backed, is expected
to generate a return on invested capital employed of approximately
15% in the first full year of ownership.
The transaction is subject to customary regulatory approvals and
closing conditions, including competition clearance from the
Norwegian Competition Authority, and is expected to complete in the
final calendar quarter of 2017.
Since the announcement of DCC's half-year results on 14 November
2016, the Group has completed the previously announced acquisitions
of Hammer, Medisource and, more recently Gaz Europeén, which
completed on 31 January 2017.
DCC remains ambitious to continue the growth and development of
its business in existing and new geographies and retains a strong,
well-funded and liquid balance sheet.
Final Results
DCC expects to announce its results for the year to 31 March
2017 on 16 May 2017.
For reference:
Tommy Breen, Chief Executive
Fergal O'Dwyer, Chief Financial Officer
Kevin Lucey, Head of Group Finance & Investor Relations
Telephone: +353 1 2799400
Email: investorrelations@dcc.ie
Web: www.dcc.ie
Powerscourt (Media)
Lisa Kavanagh / Victoria Palmer-Moore
Telephone: +44 20 7250 1446
Email: DCC@powerscourtgroup.com
About DCC plc
DCC plc is an international sales, marketing and business
support services group headquartered in Dublin with operations in
Britain, Continental Europe and Ireland. DCC has four divisions -
DCC Energy, DCC Healthcare, DCC Technology and DCC Environmental.
In its last financial year ended 31 March 2016, DCC generated
revenue of GBP10.6 billion and operating profit of GBP300 million
and currently employs approximately 10,500 people in 15 countries.
DCC's shares are listed on the London Stock Exchange and are
included in the FTSE All-Share Index and the FTSE 100 Index.
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
risk and uncertainty. DCC believes that its expectations and
assumptions with respect to these forward-looking statements are
reasonable, however because they involve risk and uncertainty as to
future circumstances, which are in many cases beyond DCC's control,
actual results or performance may differ materially from those
expressed in or implied by such forward-looking statements.
(1) The separate announcement this morning regarding Esso Retail
Norway contains inside information for the purposes of Regulation
(EU) No. 596/2014 on Market Abuse
(2) Estimate based on Wood MacKenzie market data
This information is provided by RNS
The company news service from the London Stock Exchange
END
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