DCC plc, the sales, marketing, distribution and business support services group issued an Interim Management Statement today in advance of the Company’s AGM to be held in Dublin at 11.00 am today. It said that it had an excellent first quarter to 30 June 2008.

Earnings Adjusted EPS in its first quarter i.e. earnings per share excluding the impact of net exceptionals and amortisation of intangible assets,  were significantly ahead of both last year and budget, notwithstanding the adverse impact of the weaker sterling/euro exchange rate on the translation into euro of DCC’s sterling denominated profits.

DCC ’said its largest division, DCC Energy, achieved excellent operating profit growth in the quarter, benefiting from the favourable impact on its results of the much colder weather in Britain and Ireland in April compared to the same month last year. DCC SerCom, DCC Food & Beverage and DCC Environmental all achieved underlying double digit operating profit growth and traded ahead of or in line with budget. Operating profit in DCC Healthcare was held back by weaker than expected trading conditions in the acute care sector in Ireland.

DCC said its strong start to the year is encouraging. However, its says it is conscious of the deteriorating economic conditions in the geographic markets in which DCC operates, particularly given that the Group’s profits are significantly second half weighted (in the year to 31 March 2008 70% of Group profits were earned in the second half). DCC’s current expectations are to achieve approximately 10% growth in earnings on a constant currency basis in the year to 31 March 2009.

The impact of the translation into euro of the significant proportion of Group profits that are sterling denominated, at the current exchange rate of approximately Stg£0.8 = €1, would result in reported earnings being in line with those reported last year.

DCC’s diversified business model provides defensive qualities and along with its strong balance sheet leaves the Group well placed both commercially and financially in these more uncertain economic times and allows the Group to continue to pursue acquisition and development opportunities.

DCC expects to announce its interim results for the six months to 30 September 2008 on Monday 10 November 2008.