DCC PLC (LON:DCC), the Dublin-headquartered sales, marketing and support services group, has reported on a year of good growth and said it expected another one to come.
The FTSE 100 outfit posted results for the year to 31 March showing revenue up 16% to £15.23bn, with adjusted operating profit up 20% to £460.5m.
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With adjusted earnings per share up 13% to 358.2p, reflecting the equity placing completed during the year, and strong free cash flow of £434.0m.
The board were proud to boast that the dividend hike will tick off the 25th year of unbroken dividend growth since listing in 1994. A 14% increase in the final dividend to 93.37p will result in a 12.5% hike to the total dividend to 138.35p per share.
Numbers were given a helping hand by acquisitions costing roughly £280mln made since the last results, with another £90mln announced on Tuesday alongside an agreement with Shell Aviation to create a new branded aviation marketing and distribution business in Denmark.
This contributed to what chief executive Donal Murphy was was “another active year from a development perspective”, with each of the new acquisitions announced on the day being “good examples of our divisional strategies in action”.
Bolt-on boost
DCC LPG's acquisition of Pacific Coast Energy is the first material bolt-on in the US LPG market and Murphy said it will strengthen the division’s position in the north-west of the US, helping to build further scale in that region.
Similarly, DCC Technology's double acquisition of Comm-Tec and Amacom “significantly enhances” the business in continental Europe and aims to strengthen relationships with suppliers and customers in the region.
Net debt ended the year down at £18.4mln from £ 542.7mln a year before, though pro forma net debt would be nearer £108.4mln.