Business support services company DCC has reported lower operating profits and revenues for the six months to the end of September – its seasonally less significant first half.
Revenues for the six month period fell by 7.1% to £7.381 billion from £7.945 the same time last year mainly due to a fall in revenue in its Energy division.
DCC’s group adjusted operating profits were down 5.4% to £206.7m from £218.5m, while its profits before tax slumped to £19.9m from £105.5m in the first half of last year.
The company completed the sale its DCC Healthcare business in September and also completed the sale of DCC Technology’s Info Tech business in the UK & Ireland in October to AURELIUS.
The Board is to pay an interim dividend of 69.50 pence per share, which represents a 5% increase on the prior year interim dividend of 66.19 pence per share.
DCC said that over its 31 years as a listed company, it has an unbroken record of dividend growth at a compound annual rate of 12.9%.
Breaking down its divisions, the company said that operating profits at DCC Energy fell by 5.2% to £173.3m from £182.6m after two years of strong growth and in line with expectations.
Since its full year results in May, it expanded its liquid gas activities in Europe – a key priority for growth. It also announced the purchases of the FLAGA liquid gas business in Austria and a cylinder business in the UK.
DCC, which owns Flogas and Certa here, said its UK & Ireland operating profit declined, mainly driven by its Irish gas and power business, which it had expected after a very strong performance in the previous year.
Meanwhile, Revenue at the continuing operations of its DCC Technology division fell by 2.7% to £1.319 billion from £1.355 billion, while operating profits were down 6.9% to £33.4m from £35.9m.
The company noted that most of the operating profit of the business originates in North America, so the currency translation impact was significant in the first half of the year.
Donal Murphy, DCC’s chief executive, said the first half of the year was a period of significant strategic progress for the company.
“We completed the sale of our Healthcare business, the sale of our Info Tech business, and our £100m share buyback programme,” Donal Murphy said.
“We expanded our liquid gas activities in Europe, a priority for growth where we have a good pipeline of further development opportunities,” the CEO said.
“We continue to expect good profit growth for the full year in line with market expectations, demonstrating our resilient business model. We are excited about our growth opportunities as a simpler, stronger DCC Energy. We’re on track to deliver our 2030 ambition,” he added.