DCC targets further M&A across divisions as profit up 14pc

DCC reported better-than-expected profits for the first half of the year, yesterday, boosted by acquisitions.

The results are the first under new CEO Donal Murphy who took over from Tommy Breen in July.

Since then DCC has entered the Asian and US liquefied petroleum gas (LPG) sectors through acquisitions, including last week’s deal to buy NGL Energy Partners’ retail West LPG division Hickgas LLC to break into the US market.

Back-to-back LPG deals doesn’t mean DCC has honed in on the sector to the exclusion of others, Mr Murphy told the Irish Independent yesterday.

“We’re very clear, we have a diverse business model that we are really committed to.

“We are very keen to deploy capital across LPG retail, energy, healthcare and technology,” he said.

He added that DCC does see itself as a consolidator in the fragmented US LPG sector, following the Hickgas deal.

Dublin-headquartered, London-listed, DCC’s businesses span oil distribution to nutritional supplements.

Davy Research’s Allan Smylie, said the business could spend £700m on M&A by March 2019. First-half results yesterday show adjusted operating profit up 14.4pc to £122.5m (€137.5m) in the six months to 30 September.

Revenue from continued operations rose 17.1pc to £6.4bn.