Latest news with #DCCTechnology
RTÉ News
14-07-2025
- Business
- RTÉ News
DCC to sell Info tech business to AURELIUS
Business support services company DCC said it has agreed a deal to sell DCC Technology's Info tech business in the UK and Ireland to AURELIUS, a private equity investor. The deal values the business at a total enterprise value of about £100m on a cash-free, debt-free and normalised working capital basis. In the year to the end of March 2025, the business recorded revenue of £2 billion and represented about 1% of DCC's continuing operating profit. DCC said the net cash proceeds of the deal are not material, reflecting the working capital seasonality, and the supply chain financing associated with the business. It also said it will retain the freehold title of its UK national distribution centre in Burnley, England. Today's deal is subject to receipt of customary regulatory approvals and is expected to complete in the fourth quarter of this calendar year. The remainder of DCC Technology, the Pro Tech business, is mainly based in North America, with a smaller growth platform in Europe. Donal Murphy, DCC's chief executive, said the sale of Info Tech in the UK and Ireland is a further material step in simplifying the group and focusing on its high growth, high return, energy business. It follows the sale of DCC Healthcare announced in April. "We have made huge strategic progress this year. We are confident that AURELIUS will be a strong partner for our UK and Ireland Info Tech business, driving further operational and financial improvement," the CEO said. "This transaction also represents a positive move for our team, providing new opportunities for growth, development, and long-term success," he added.
Irish Examiner
14-07-2025
- Business
- Irish Examiner
DCC to sell Irish and UK info tech business to Aurelius for €115m
Irish support services firm DCC has agreed a deal to sell its information technology business in Ireland and the UK to private equity investment group Aurelius for £100m (€115m). The deal is subject to regulatory approval and is expected to be completed in the fourth quarter of this year. DCC's info tech business recorded revenue of £2bn (€2.31bn) in 2024 and represented approximately 1% of DCC's continuing operating profit. "The divestment of info tech in the UK and Ireland is a further material step in simplifying our group and focusing on our high growth, high return, energy business,' said DCC chief executive Donal Murphy on Monday. 'It follows the sale of DCC Healthcare announced in April 2025. We have made huge strategic progress this year.' DCC will retain freehold title of its national distribution centre in Burnley in England. "The remainder of DCC Technology, our pro tech business, is principally based in North America, with a smaller growth platform in Europe. DCC Technology is the largest specialist professional AV distributor globally and has a complementary position in high-quality life tech products in North America," the company said in a statement on Monday. DCC, which is listed in London's FTSE 100, saw an 2.9% increase in adjusted operating profit during its most recent financial year driven by growth in its energy division. The company's 2024 results reported profit in its energy division increased by 6.5% to £535.5m while profit in its technology division declined by 15.7% to £82m. The company said in May it intends to return up to £800m of its DCC Healthcare divestment to shareholders, commencing with a £100m share buyback programme.
Yahoo
14-05-2025
- Business
- Yahoo
DCC PLC (DCCPF) (FY 2025) Earnings Call Highlights: Strategic Energy Focus and Shareholder ...
Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. DCC PLC (DCCPF) announced a strategic focus on its energy business, which is expected to drive significant growth and shareholder value. The company reported strong financial performance in its energy division, with an 8.5% constant currency operating profit growth. DCC PLC (DCCPF) plans a material capital return to shareholders following the sale of DCC Healthcare for GBP 1.05 billion. The energy business is characterized by high returns on capital and excellent cash generation, supporting its growth ambitions. DCC PLC (DCCPF) has a strong balance sheet and cash generative nature, providing significant capital for growth and shareholder returns. DCC Technology division faced challenges, with a 14% decline in profits on a constant currency basis due to weak demand in Europe. The company experienced a 4.5% decline in revenue from continuing activities, driven by reduced wholesale energy commodity costs. DCC PLC (DCCPF) is undergoing a strategic review of its technology division, indicating potential uncertainty or restructuring. The Infotech segment within DCC Technology has been operating in a challenging market, leading to exits from certain regions. The company anticipates a modest working capital outflow in FY26, following an exceptional performance in the prior year. Warning! GuruFocus has detected 3 Warning Sign with DCCPF. Q: Can you provide more details on the impressive 49% organic revenue growth in the energy services segment? A: Don Murphy, CEO: The strong growth in our energy services segment is primarily driven by our operations in France, where we have established a nationwide platform through the acquisition of seven businesses. This has allowed us to achieve high levels of organic growth, and we have a robust pipeline for the current year. The energy services business is delivering high operating margins and is a very attractive growth area for us. Q: There seems to be a dip in the pence per liter margin for energy products this year. Can you explain the reasons behind this and your outlook for the future? A: Kevin Lucy, CFO: The dip in margin per liter is primarily due to mix changes. Last year, we had an exceptionally strong performance due to dislocation in the natural gas markets, which drove demand for liquid gas. This year, the margin per liter has normalized, but we are still well above the levels seen in 2021 and 2022. We expect to continue growing our margins over time. Q: Regarding the technology division, are you seeing it as two distinct parts, given the varying performance across segments? A: Don Murphy, CEO: Yes, the technology division can be viewed in two parts. Infotech, which has been challenging, involves high-volume, low-margin activities. In contrast, Protech and LifeTech are high-quality businesses. We are focused on delivering operational integration in North America and expect technology to return to growth this year. Q: What assumptions are you making for energy products volumes and margins in your outlook? A: Kevin Lucy, CFO: Our outlook for energy products volumes is based on relatively mature markets in Europe and North America. We expect modest growth driven by market share gains and demand for liquid gas, particularly from commercial and industrial customers. For margins, we anticipate a 1-3% improvement per liter, supported by higher-margin products like biofuels and ongoing efficiency improvements. Q: Can you provide more details on the expected capital return to shareholders following the sale of DCC Healthcare? A: Kevin Lucy, CFO: We plan to return up to 800 million to shareholders, with 600 million following the completion of the DCC Healthcare sale. The form of the return is yet to be decided, but it will likely involve a material reduction in the share count. The remaining 100 million will be returned after receiving the unconditional deferred consideration. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
