It is not long since the shares of DCC, the industrial holding company, controlled by institutional investors, were almost one of the untouchables. They lagged the market and moved within a fairly narrow range. The company was considered a steady eddie. Reliable? Yes. Exciting? No. How things change. While the shares have not donned a go-go mantle, investors are now more happy having a few DCCs. Having oscillated in the narrow range of 178p to 275p between 1995 and 1996, they then started to move ahead. In 1997, they rose by 82 per cent from 258p to 470p. That momentum has been maintained this year. From a low of 462p, they reached the record level of 710p after the latest results were announced. That was a 54 per cent increase. Those movements should be enough to gladden the hearts and pockets of shareholders. Sharing in the 16.3 per cent rise in profit before tax and exceptional charges, to £36.7 million, in the year to March 31st 1998, a final dividend of 6.08p was declared, making a total of 9.6p a 20 per cent increase. What makes DCC solid and reliable is that it has four core areas: computers, energy, food and health care. All four recorded growth. Whereas other companies take comfort from a good geographical spread, DCC points to the product spread.

DCC's earnings per share rose from 33.34p to 35.50p last year, a bit better than the market expected. This followed a growth of 17.5 per cent in 1996-97, a gain of 12.1 per cent in 1995-96 and an increase of 14.9 per cent in 1994-95. So where does the group go from here? Growth in profits, earnings and dividends should continue. Pre-tax profit should reach £43 million. That would give earnings per share of around 40p and on that basis a dividend of at least 10.8p could be paid.

At a price of 700p, the shares are on a prospective p/e of 17.5. Despite the substantial rise in the share price over the past 18 months, that is not too demanding.