DCC Plc (LON:DCC) has unveiled a strong full-year performance with all its divisions recording good profit growth after notching up the highest level of acquisition spend in the Irish firm’s history.
For the year ended 31 March 2018, the oil distribution, tech and health and beauty products conglomerate reported an 11.1% increase in adjusted operating profit on continuing operations to £383.4mln as continuing revenue rose by 12.6%.to £3.598bn.
READ: DCC announces first US healthcare acquisition
The FTSE 100-listed firm saw its full-year adjusted earnings per share on continuing activities increase by 10.8% to 317.5p, while pre-tax profit rose by 26.6% to £316.4mln.
The group highlighted a good cash flow performance with free cash flow conversion of approximately 85% and a return on capital employed of 17.5%.
DCC highlighted a record year of corporate development spend with approximately £670mln of acquisition capital deployed.
The firm said it completed acquisitions across all divisions, including the purchases of Retail West and Elite One Source, DCC's first entry into the large US markets for LPG and for Health & Beauty Solutions.
Expects another year of profit growth
Donal Murphy, DCC’s chief executive, commented: “The Group continues to have the opportunity, ambition and capacity for further development across each of our divisions, supported by a strong and liquid balance sheet.
“We expect that the year to 31 March 2019 will be another year of profit growth and development for the Group."
The group is proposing 10% increase in the final dividend to 82.09p which will see the total dividend for the year also increase by 10% to 122,98p, the 24th consecutive year of dividend growth since DCC listed in 1994.