|Master Investor Magazine
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FTSE 100 sales and marketing services firm DCC (LON:DCC) has reported that continuing revenues rose by 16% over the year ended 31st March, with adjusted operating profits climbing by 20.1%. All divisions of the company recorded significant improvements, with Technology and LPG arms seeing the fastest rate of growth.
Chief executive Donal Murphy commented: “I am very pleased to report that the year ended 31 March 2019 has been another year of significant progress for DCC. An excellent trading performance, very strong cash generation and continued acquisition activity across the Group exemplifies the DCC business model. I am particularly pleased that each division recorded very strong growth in operating profit and traded in line with expectations, given the mild weather conditions experienced during the year.
“It has been another active year from a development perspective and we have committed approximately £370 million to acquisitions during the period. Each of the new acquisitions announced today are good examples of our divisional strategies in action. DCC LPG’s acquisition of Pacific Coast Energy, our first material bolt-on in the US LPG market, will strengthen our position in the north-west of the US, helping to build further scale in that region. Similarly, DCC Technology’s acquisition of both Comm-Tec and Amacom significantly enhances our business in Continental Europe and will strengthen our relationships with suppliers and customers in the region.
“Following the equity placing completed during the year, DCC has a very strong and liquid balance sheet, leaving the Group well placed to continue its targeted acquisition strategy. The Group continues to have the platforms, opportunities and capability for further development across each of our four divisions.
We expect that the year to 31 March 2020 will be another year of profit growth and development for the Group“.
DCC’s share price rose by 3.15% to 6,690p (as of 13:00 BST).