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DCC increases dividend as trading remains solid in face of pandemic

Published: 17:11 19 May 2020 AEST

DCC PLC -

DCC PLC (LON:DCC) proposed an increased final dividend as the Irish conglomerate said it continued to trade “robustly” in the face of the coronavirus pandemic. 

The FTSE 100 distribution group, which is focused on fuels, technology and healthcare, said it has seen “significant demand increases in some areas, with significant declines in others” since the Covid-19 lockdowns have come into force in the countries where it operates. 

In March, the last month of its financial year, the group saw a strong trading performance thanks to increased demand for essential heating and healthcare products, with negative impacts later in the month in reduced demand for retail transport fuels and certain consumer technology products.

For the year as a whole, revenue grew 3% to £14.8bn and operating profits rose 7% to £494.3mln, but profit before tax fell 5% to £311.5mln due to a loss on disposal and restructuring costs.

A final dividend of 95.79p per share, up 2.6% on the prior year, will see the total dividend for the year increase 5% to 145.27p per share.

Trading in April and May has remained “significantly profitable, although behind the prior year” and with demand continuing to change in its markets, leading management to curtail all non-essential spending but still completing two bolt-on acquisitions.

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