DCC Announces Plan to Focus on Energy Sector, Selling Healthcare and Tech Arms

DCC Announces Plan to Focus on Energy Sector, Selling Healthcare and Tech Arms

November 12, 2024 Catherine Williams - Chief Editor Business

DCC to Focus on Energy Sector, Sell Healthcare and Tech Divisions

DCC PLC, a Dublin-based sales, marketing, and support services provider, has announced plans to sell its DCC Healthcare and DCC Technology divisions to focus solely on the energy sector. This strategic move is expected to simplify the company, pursue the largest growth and returns opportunity, and unlock substantial shareholder value.

Key Highlights:

  1. Sale of Divisions:

    • DCC will sell its DCC Healthcare division, with the disposal expected to be completed in 2025.
    • The company will review strategic options for its DCC Technology division within the next two years.

  2. Focus on Energy:

    • DCC Energy offers the strongest growth potential and highest returns among its three divisions, contributing 74% of operating profits.
    • The company aims to build a unique, multi-energy, sustainable business focused on supporting customers with their energy transition, promising strong profit growth and a significant reduction in carbon emissions.

  3. Financial Performance:

    • For the six months ending September 30, DCC reported a pretax profit of GBP131.0 million, a 1.0% increase from GBP129.7 million a year earlier.
    • Revenue was GBP9.33 billion, down 3.0% from GBP9.62 billion a year ago. At constant currency, revenue declined by 1.8%.
    • Adjusted operating profit was GBP259.3 million, 4.7% higher than GBP247.6 million a year ago. DCC Energy’s adjusted operating profit was GBP182.7 million, a 7.0% increase from the previous year.

  4. Dividend and Share Price:

    • The company declared an interim dividend of 66.19 pence per share, up 5.0% from 63.04 pence a year earlier.
    • Shares in DCC rose 14% to 5,660.00 pence in London on Tuesday morning, making it the second biggest gainer in the FTSE 100 index, which was down 0.9%.
  5. CEO’s Statement:
    • Donald Murphy, Chief Executive Officer, emphasized that this strategic refocus will "simplify our group, pursue our largest growth and returns opportunity, and unlock substantial shareholder value."

By simplifying its operations and focusing on the energy sector, DCC aims to enhance profitability and sustainability while providing a significant opportunity for shareholder value.