TIDMDCC
RNS Number : 5588U
DCC PLC
13 July 2018
13 July 2018
DCC plc
Interim Management Statement
Strong Growth in First Quarter Operating Profit and Guidance for
the Year Reiterated
DCC plc, the leading international sales, marketing and support
services group, is issuing this Interim Management Statement in
advance of the Company's AGM to be held in Dublin at 11.00 am
today.
First quarter ended 30 June 2018
Group operating profit for the first quarter ended 30 June 2018
was in line with expectations and, as anticipated, well ahead of
the prior year, driven by acquisitions completed in the prior
year.
Year ending 31 March 2019
DCC's profits are significantly weighted towards the second half
of its financial year. At what is still a very early stage in the
financial year, the Group reiterates its belief that the year
ending 31 March 2019 will be another year of profit growth and
development.
Development activity
DCC has today separately announced that DCC Technology has
acquired Stampede in the US and Kondor in the UK.
Stampede is a specialist distributor of professional
audio-visual products and solutions to system integrators,
value-added resellers, retailers and etailers in the US, Canada and
the UK. Stampede recorded revenue of $280 million in the year ended
31 December 2017 and employs approximately 210 people. The
acquisition of Stampede represents DCC Technology's first
acquisition in North America and is consistent with DCC
Technology's strategy to extend the geographic footprint and
product range of its successful and growing professional
audio-visual business, strengthening its partnership with existing
suppliers, while also broadening its base of customers and
suppliers.
Kondor distributes mobile and accessory products and provides
outsourced category management solutions to the retail channel in
the UK and Continental Europe. Kondor recorded revenue of GBP110
million in the year ended 31 December 2017 and employs
approximately 250 people. The acquisition of Kondor strengthens DCC
Technology's position as one of the leading omnichannel
distribution and supply chain businesses in Europe.
The combined initial enterprise value of Stampede and Kondor is
c.GBP110 million. DCC expects the acquisitions to generate a return
on capital employed of approximately 15% in the first full year of
ownership.
DCC has grown substantially in recent years and now has
significant operations across 17 countries, with market-leading
positions in each of its LPG, Retail & Oil, Healthcare and
Technology divisions. DCC's ambition and capacity for further
development, together with the Group's leading market positions and
increased geographic reach, provide substantial opportunity for the
continued growth and development of the business.
Forthcoming events
DCC will host a Capital Markets Day for analysts and
institutional investors in Marseille, France on Thursday 13
September 2018.
DCC expects to announce its interim results for the six months
to 30 September 2018 on Tuesday 13 November 2018.
For reference:
Donal Murphy, Chief Executive
Fergal O'Dwyer, Chief Financial Officer
Kevin Lucey, Head of Capital Markets
Telephone: +353 1 2799 400
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 is a leading international sales, marketing and support
services group with a clear focus on performance and growth. It
operates through four divisions: LPG, Retail & Oil, Healthcare
and Technology.
DCC is an ambitious and entrepreneurial business operating in 17
countries, supplying products and services used by millions of
people every day throughout Europe. Building strong routes to
market, driving for results, focusing on cash conversion and
generating superior sustainable returns on capital employed enable
the Group to reinvest in its business, creating value for its
stakeholders.
Headquartered in Dublin, employing approximately 11,000 people,
DCC's four divisions are:
-- DCC LPG - a leading LPG sales and marketing business with
operations in Europe, Asia and the US and a developing business in
the retailing of natural gas and electricity;
-- DCC Retail & Oil - a leader in the sales, marketing and
retailing of transport and commercial fuels, heating oils and
related products and services in Europe;
-- DCC Healthcare - a leading healthcare business, providing
products and services to healthcare providers and health and beauty
brand owners; and
-- DCC Technology - a leading sales, marketing and services
partner for global technology brands.
DCC plc is listed on the London Stock Exchange and is a
constituent of the FTSE 100. In its financial year ended 31 March
2018, DCC generated revenue of GBP14.3 billion and operating profit
of GBP383.4 million.
DCC has an excellent record, delivering compound annual growth
of 14.4% in operating profit and generating an average return on
capital employed of approximately 19% over 24 years as a public
company.
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.
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END
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