DCC Q1 builds on FY20 momentum

DCC has seen its technology and healthcare operations deliver strong growth during the first quarter of its fiscal year, with the firm providing an update on its progress to investors.

The company, which is the parent of distributor Exertis, is holding its AGM in Dublin this morning, when it will bid farewell to John Moloney, who is retiring as chairman, to be replaced by Mark Breuer, who has been on the board since 2018.

Maloney, who has been with DCC since 2009, will head off for a more relaxed pace of life with the firm in a strong position, with its technology operation being one of the standouts during the three months ended 30 June.

“DCC Technology also generated very strong operating profit growth, driven by an excellent performance in North America, where the business continues to develop its market position,” the firm said in an interim management statement. “The business recorded strong organic growth in Pro-AV and Pro Audio business technology products, particularly in North America, as economies reopened and continued to experience good demand for consumer products.

“Operating profit growth was well ahead of the prior year and modestly ahead of expectations, driven by very strong organic profit growth in DCC Healthcare and DCC Technology.”

The firm said it had traded well in a first quarter, which was “seasonally less significant” than some of the others later in the year, keeping up the momentum it showed in its last full-year results, for the 12 months ended 31 March.

Those recent yearly results showed an 11% increase in revenue on the technology front, rising to £72.4m from £65.3m.

Investors heading to the AGM will hear that DCC is expecting the current fiscal year to be “another year of strong operating profit growth and continued development activity”.

During the first quarter, Exertis closed the deal to acquire French infrastructure distributor Azenn as the business looked to bolster its Exertis Connect business in that country.

The interim management statement indicated that acquisitions were part of an ongoing strategy of developing the group and deals have also been struck on the healthcare and the retail and oil side of the business.

Breuer is not the only change in executive structure being triggered by the AGM, with DCC also welcoming Laura Angelini as a non-executive director and member of the Governance and Sustainability Committee with effect from the conclusion of the meeting.

Angelini has a long career in the healthcare world behind her and will boost DCC’s position in the key areas of governance and sustainability.

“I warmly welcome Laura Angelini to the board,” said Breuer. “Her leadership experience, healthcare expertise and knowledge of the North American markets will enhance the board’s knowledge in key areas.”

Caroline Dowling, who has been a director of DCC since 2019, will today step into Breuer’s shoes as senior independent director.