DCC raises dividend, focuses on expansion

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DCC PLC (LON:DCC) has raised its interim dividend and said it “remains very active from a development perspective” despite coronavirus (COVID-19) pandemic disruption.

The Irish sales, marketing and support services group announced a distribution of 51.95p per share, 5% higher than last year.

READ: DCC upped to outperform as RBC spies significant upside from M&A

The FTSE 100 group has committed £90mln in capital to new acquisitions in both Europe and North America since May.

In the six months to September 30, 2020, DCC’s revenue dropped by 19% to £5.9bn, however, profit before tax jumped 44% to £102mln thanks to higher operating profit.

At period-end, the company had net debt of £137mln, gross cash of approximately £1.5bn and undrawn, committed bank facilities of £400mln.

DCC said its full-year results normally are more weighted to the second half but did not provide further guidance.

Analysts at Peel Hunt noted that DCC is “a rarity” in the current market, continuing to pay a dividend and transact mergers and acquisitions.

Shares rose 2% to 5,704p on Tuesday morning.

–Adds analyst comment, shares–

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