Support services firm DCC sees profit of its remaining divisions increase by nearly 3%
DCC, the Dublin-headquartered support services firm, saw an 2.9% increase in adjusted operating profit during its most recent financial year driven by growth in its energy division.
The firm is made up of three divisions; energy, technology, and healthcare but in April it announced the sale of its healthcare division in a deal worth just over £1bn. The deal is subject to regulatory approvals and is expected to complete in the third quarter of this calendar year.
The company's preliminary results for the financial year ending on March 31, 2025 account for this sale.
According to the company's results, its two remaining divisions generated adjusted operating profit of £617.5m (€726.7m) , an increase of 2.9% year-on-year. Operating profit from its discontinued operations - DCC Healthcare - stood at £86.1m.
Profit in its energy division increased by 6.5% to £535.5m while profit in its technology division declined by 15.7% to £82m.
Group revenue decreased by 4.5% to £18bn due to lower revenue in DCC Energy where average commodity prices were lower.
Donal Murphy, chief executive of DCC, said they are pleased to report another year of 'good growth' while making 'strategic progress to simplify the group to focus on our opportunity in energy'.
'Our sale of DCC Healthcare enables a material return of capital to shareholders. We will focus our efforts on Energy, our largest and highest-returning business. We are energised about the future,' he said.
The company said it intends to return up to £800m of DCC Healthcare divestment proceeds to shareholders, commencing shortly with a £100m share buyback programme.
The company said it expects to see good operating profit growth during this current financial year.
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