Fotolia
DCC heralds impact of acquisitions on profits and makes another one
The owner of Exertis has updated investors on how its first fiscal half has gone with acquisitions making an impact on the bottom line
DCC has reported a strong performance in its technology business in the first half of the year with recent acquisitions having made an impact to the numbers.
The firm, which along with technology operates in the oil and gas and healthcare markets, delivered a pre-close trading statement for the six months ended 30 September informing investors that operating profits would be well ahead of the same period last year.
"DCC expects that Group operating profit for the six months ending 30 September 2018 will be in line with expectations in the seasonally less significant first half. As anticipated, Group operating profit will be well ahead of the prior year, driven by acquisitions completed in the prior year, and trading across each division was also in line with expectations," the firm stated.
Acquisitions have helped the performance improve, with deals struck in all of the industry sectors the Group works across, including a couple in the technology sector.
"Operating profit in DCC Technology was strongly ahead of the prior year. The business benefited from the first-time contribution from the acquisitions of Stampede and Kondor and also from good organic profit growth in the UK and Ireland, DCC Technology's largest business," the trading update revealed.
DCC picked up Stampede, which is an audio visual distribution specialist that operates out of the US, Europe and Australia and Kondor, a mobile accessory product specialist with revenues of £110m last year, in a double swoop earlier this summer.
DCC also revealed that it had acquired North Amercia-based Jam Group, which operates in the professional audio, musical instruments and consumer electronics product sectors.
the deal for Jam has been valued at £130m and the latest addition will sit in the technology group and add some muscle to DCC's footprint in the US.
"The acquisition of Jam significantly strengthens DCC Technology's position in the North American market. DCC Technology now has approximately $600m in revenue in North America," the firm added in its trading statement.
