UK distribution growth boosts DCC during mixed FY12

Micro-P sales put a gloss on Irish giant's annual numbers

Robust organic sales growth in its UK IT distribution business helped Irish giant DCC post upbeat figures for its 2012 fiscal year.

For the 12 months to 31 March, reported sales at the diversified Dublin-listed outfit rose 23.2 per cent annually to €10.7bn (£8.5bn). But group-wide operating profit shrank by almost a fifth, coming in at €185m.

The company's DCC SerCom arm, which includes distributors Micro Peripherals, Gem and Sharptext, saw revenue increase by 16.7 per cent to just under €2.2bn. FY12 operating profit was up 15.7 per cent to €53.2m. DCC claims that SerCom's organic top-line growth stood at 8.4 per cent, with turnover also bolstered by acquisitions including UK consumables player Advent Data, and French firm Comtrade.

The UK provided 79 per cent of the division's sales, and DCC claims British business "achieved very strong growth" off the back of some key new manufacturers in the PC and mobile comms sectors. Networking, components, tablets and consumables were also picked out as growth hotspots. However, SerCom lamented the "weak" market for home entertainment wares, particularly videogames.

Tommy Breen, chief executive of DCC, claimed his firm enters the new year "set against a continued uncertain economic environment".

"DCC retains a strong equity base, relatively long-term debt maturities and significant cash resources which leave it well placed to take advantage of further acquisition and development opportunities," he added.