DCC Reports Strong First-Half Results and Announces Acquisition of Progas

DCC, the leading U.K. sales, marketing, and support services company, has reaffirmed its guidance for the year following a rise in adjusted operating profit for the first half. Additionally, DCC has announced its acquisition of Germany's Progas for an estimated enterprise value of £140 million.

Solid Financial Performance

In the six months ending September 30, adjusted operating profit reached £247.6 million, up from £221.2 million in the previous year. This significant increase demonstrates DCC's commitment to delivering strong financial results. However, total revenue declined from £10.84 billion to £9.62 billion, primarily due to lower revenue at DCC Energy caused by declining average commodity prices.

Progas Acquisition

DCC's acquisition of Progas, a renowned liquefied gas supplier, is set to enhance the company's Energy Solutions business in Germany. With a focus on liquefied petroleum gas (LPG), renewable LPG, solar energy, and additional energy management services, the acquisition will drive further growth and expansion.

DCC expects the Progas transaction to conclude by the end of fiscal 2024.

Outlook and Dividend

Looking ahead to fiscal 2024 ending March 31, DCC remains optimistic about operating profit growth and ongoing development activities. The company's confidence in future prospects is reflected in its announcement of an interim dividend of 63.04 pence per share, a rise from 60.04 pence.