StockMarketWire.com - Support services group DCC reported a rise in annual profits as acquisitions helped generate 'very strong' growth in its natural gas division.

The company also announced £90m of new acquisitions today, and reached an agreement with Shell Aviation to create a new branded aviation marketing and distribution business in Denmark.

DCC LPG acquired Pacific Coast Energy, to strengthen its position in the north-west of the US. While, the acquisition of both Comm-Tec and Amacom 'significantly enhances our business in Continental Europe and will strengthen our relationships with suppliers and customers in the region,' DCC said.

For the year to 31 March, profit before tax increased to £326.7m from £260.2m as revenue rose

DCC LPG delivered 'very strong growth, notwithstanding the mild weather conditions experienced in Europe, with operating profit increasing by 20.5% to £201.8m, driven by acquisitions,' the company said.

DCC retail & oil's revenue increased by 12.2% and operating profit was 'significantly ahead of the prior year, increasing by 17.6%,' driven by strong organic profit growth in the businesses in Britain, France and Denmark and the contribution from acquisitions completed during the prior year, the company added.

DCC technology achieved 'very strong' operating profit growth of 35.1% and DCC healthcare, operating profit increased by 11.1%, DCC said.

The company recommended an increase of 13.7% in the final dividend to 93.37p per share, taking the total dividend for the year to 138.35p per share, up 12.5% on last year.

Looking ahead, DCC said it expected that the year ending 31 March 2020 would be another year of profit growth and development.

'I am very pleased to report that the year ended 31 March 2019 has been another year of significant progress for DCC. An excellent trading performance, very strong cash generation and continued acquisition activity across the Group exemplifies the DCC business model,' said Donal Murphy, Chief Executive.

'It has been another active year from a development perspective and we have committed approximately £370 million to acquisitions during the period. Each of the new acquisitions announced today are good examples of our divisional strategies in action.'


At 8:11am: [LON:DCC] DCC PLC share price was +95p at 6581p



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