DCC upturn to aid takeover plans

Irish giant DCC reported interim results which will bolster the company's war chest and fund its continuing acquisitions.

DCC, whose SerCom subsidiary owns Sharptext and UK distributors Gem and Micro P, reported overall pre-tax profits to 30 September up by 31 per cent to IR#16.8 million and turnover up 19.7 per cent to IR#367.7 million.

DCC's performance was boosted by computer product arm DCC SerCom, that outshone sibling units. DCC Foods, DCC Healthcare or DCC Energy could not match the 58 per cent rise in DCC SerCom's profits to IR#6 million, with turnover that jumped 30.6 per cent to IR#143.79.

DCC's chief executive and deputy chairman, Jim Flavin, commented in a statement: 'Continued strong organic growth was a key feature of the results, with sales and margins well ahead of the comparable period. This stems from our focus on building the group in growth markets. We are especially pleased with the operating profit growth of 58 per cent in our largest division, DCC SerCom.'

Tommy Breen, managing director of DCC SerCom, added that the distribution businesses, Gem, Sharptext and Micro P, would all be targeted for expansion.

Paul Donnelly, managing director of Gem, said: 'People don't realise the power behind Gem, which is why we recently started to brand ourselves as a DCC SerCom company.

'We've got to have that presence when competing with the likes of Ingram and CHS.'

The DCC share price leapt from 70p to 490p following the results last week.