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The Markets
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Business & education services

DCC drops as growth slows and debt mushrooms

Shares in the Irish based company are down 23% in the year so far

DCC PLC (LSE:DCC) shares fell 5% to 4,660p on Tuesday morning despite reporting growth in revenue, operating profit and its dividend for the six months to 30 September.

Some investors may have taken flight due to slower growth at its Technology (to +67.4%) and Healthcare (to -13.9%) businesses or its growing debts.

Net debt soared to £782.3mln from £54.1mln compared to a year earlier, and up from £420mln at March, with a £151mln working capital outflow reflecting the typical seasonal investment and £117mln of dividend payments. The company also has £304mln of committed acquisition spend.

The sales, marketing and support services group said it expects the current financial year to be “another of profit growth and development, notwithstanding the challenging macro environment.”

Broker Peel Hunt placed its forecasts under review "due to slowing Technology and Healthcare performance in 1H".

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