DCC, the Irish conglomerate with business ranging from energy to computer services. today reported full-year operating profit rose 7.9 per cent to €180.4 million in the year ended March 31, 2009. DCC also announced that it has reached conditional agreement with Shell Denmark to acquire the trade, assets and goodwill of Shell’s oil distribution business in Denmark for €14 million..

DCC said the Shell business is based in Copenhagen and delivers product from nine locations throughout Denmark. Following acquisition the business will operate as a Shell branded distributor with 57 employees. The operation sells approximately 250 million litres of oil per annum to an extensive customer base of c. 30,000 customers. Transport is outsourced to a number of regional hauliers.

The consideration payable for the business is €14 million, inclusive of assets acquired of €0.9 million, and will be satisfied in cash. 

Commenting on the 2008/09 results, Tommy Breen, Chief Executive, said:  "DCC achieved excellent constant currency growth of 22.4% in operating profit to €180.4 million, in a year characterised by a rapidly deteriorating economic and business climate. The Group's strong financial position has been reinforced through a year of record cash generation, with free cash flow of €218.5 million and the Board is recommending a 10% increase in the dividend for the year.  

The outlook for the current financial year is set against the background of an exceptionally difficult economic environment which we expect will continue throughout the year. At this early stage, DCC anticipates that adjusted earnings per share, on a constant currency basis, will be modestly behind to broadly in line with the year ended 31 March 2009. This would result in reported adjusted earnings per share being approximately 5% to 10% behind, reflecting the adverse impact of the translation into euro of the significant proportion of DCC's profits which are denominated in sterling (2009: 76%) at the approximate current exchange rate of Stg£0.90 = €1.  

DCC's diversified business model, strong financial position and excellent cash generation leave the Group in a strong position to benefit from acquisition and development opportunities that are likely to arise in the current environment."

Results detail