Cold weather boosts DCC

Full-year earnings at business services group DCC rose by 5 per cent, boosted by growth in its energy and healthcare divisions…

Full-year earnings at business services group DCC rose by 5 per cent, boosted by growth in its energy and healthcare divisions.

The company said this morning it was seeing some "green shoots" in Ireland, as it reported adjusted earnings per share of €1.77, some 11 per cent higher than than the previous year at constant currency rates.

Speaking on RTÉ Radio today, chief executive Tommy Breen DCC's Irish businesses have stabilised, "albeit at lower levels".

Revenue at the company rose 10.8 per cent at constant currency levels to €6.7 billion.

The group's operating profit for the full year rose 12.8 per cent on a constant currency basis to €192.8 million, while profit before exceptional items, amortisation of intangible assets and tax rose by 20.7 per cent.

"This result was achieved against a backdrop of difficult economic and trading conditions and having delivered particularly strong operating profit growth of 22.4 per cent," Mr Breen said in a statement this morning.

The cold winter and development activity boosted operating profit growth at DCC's largest division, DCC Energy, while DCC Sercom and Healthcare also performed well.

"As anticipated, DCC Environmental and DCC Food & Beverage experienced difficult trading conditions and operating profits in both of these businesses declined in the year, notwithstanding better second half performances, particularly in DCC Environmental which returned to profit growth," Mr Breen said.

The company is expecting operating profit to rise about 10 per cent in the year to March 2011.

"The outlook for 2011 is framed against the continuing uncertain economic outlook and an assumption that the weather pattern will not be as favourable as it was in each of the last two financial years," Mr Breen said in a statement.

Additional reporting: Agencies