DCC PLC Interim Management Statement (5588U)

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RNS Number : 5588U

DCC PLC

13 July 2018

13 July 2018

DCC plc

Interim Management Statement

Strong Growth in First Quarter Operating Profit and Guidance for the Year Reiterated

DCC plc, the leading international sales, marketing and support services group, is issuing this Interim Management Statement in advance of the Company's AGM to be held in Dublin at 11.00 am today.

First quarter ended 30 June 2018

Group operating profit for the first quarter ended 30 June 2018 was in line with expectations and, as anticipated, well ahead of the prior year, driven by acquisitions completed in the prior year.

Year ending 31 March 2019

DCC's profits are significantly weighted towards the second half of its financial year. At what is still a very early stage in the financial year, the Group reiterates its belief that the year ending 31 March 2019 will be another year of profit growth and development.

Development activity

DCC has today separately announced that DCC Technology has acquired Stampede in the US and Kondor in the UK.

Stampede is a specialist distributor of professional audio-visual products and solutions to system integrators, value-added resellers, retailers and etailers in the US, Canada and the UK. Stampede recorded revenue of $280 million in the year ended 31 December 2017 and employs approximately 210 people. The acquisition of Stampede represents DCC Technology's first acquisition in North America and is consistent with DCC Technology's strategy to extend the geographic footprint and product range of its successful and growing professional audio-visual business, strengthening its partnership with existing suppliers, while also broadening its base of customers and suppliers.

Kondor distributes mobile and accessory products and provides outsourced category management solutions to the retail channel in the UK and Continental Europe. Kondor recorded revenue of GBP110 million in the year ended 31 December 2017 and employs approximately 250 people. The acquisition of Kondor strengthens DCC Technology's position as one of the leading omnichannel distribution and supply chain businesses in Europe.

The combined initial enterprise value of Stampede and Kondor is c.GBP110 million. DCC expects the acquisitions to generate a return on capital employed of approximately 15% in the first full year of ownership.

DCC has grown substantially in recent years and now has significant operations across 17 countries, with market-leading positions in each of its LPG, Retail & Oil, Healthcare and Technology divisions. DCC's ambition and capacity for further development, together with the Group's leading market positions and increased geographic reach, provide substantial opportunity for the continued growth and development of the business.

Forthcoming events

DCC will host a Capital Markets Day for analysts and institutional investors in Marseille, France on Thursday 13 September 2018.

DCC expects to announce its interim results for the six months to 30 September 2018 on Tuesday 13 November 2018.

For reference:

Donal Murphy, Chief Executive

Fergal O'Dwyer, Chief Financial Officer

Kevin Lucey, Head of Capital Markets

Telephone: [phone]

Email: [e-mail]

Web: www.dcc.ie

Powerscourt (Media)

Lisa Kavanagh / Victoria Palmer-Moore

Telephone: [phone]

Email: [e-mail]

About DCC plc

DCC is a leading international sales, marketing and support services group with a clear focus on performance and growth. It operates through four divisions: LPG, Retail & Oil, Healthcare and Technology.

DCC is an ambitious and entrepreneurial business operating in 17 countries, supplying products and services used by millions of people every day throughout Europe. Building strong routes to market, driving for results, focusing on cash conversion and generating superior sustainable returns on capital employed enable the Group to reinvest in its business, creating value for its stakeholders.

Headquartered in Dublin, employing approximately 11,000 people, DCC's four divisions are:

-- DCC LPG - a leading LPG sales and marketing business with operations in Europe, Asia and the US and a developing business in the retailing of natural gas and electricity;

-- DCC Retail & Oil - a leader in the sales, marketing and retailing of transport and commercial fuels, heating oils and related products and services in Europe;

-- DCC Healthcare - a leading healthcare business, providing products and services to healthcare providers and health and beauty brand owners; and

-- DCC Technology - a leading sales, marketing and services partner for global technology brands.

DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In its financial year ended 31 March 2018, DCC generated revenue of GBP14.3 billion and operating profit of GBP383.4 million.

DCC has an excellent record, delivering compound annual growth of 14.4% in operating profit and generating an average return on capital employed of approximately 19% over 24 years as a public company.

Forward-looking statements

This announcement contains some forward-looking statements that represent DCC's expectations for its business, based on current expectations about future events, which by their nature involve risk and uncertainty. DCC believes that its expectations and assumptions with respect to these forward-looking statements are reasonable, however because they involve risk and uncertainty as to future circumstances, which are in many cases beyond DCC's control, actual results or performance may differ materially from those expressed in or implied by such forward-looking statements.

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July 13, 2018 02:00 ET (06:00 GMT)