A FTSE 100 Company


DCC is a broadly based group, operating across five focused divisions: Energy, Technology, Healthcare, Environmental and Food & Beverage.

DCC currently employs approximately 10,000 people and is listed under Support Services on the London Stock Exchange.

DCC's objective is to continue building a growing, sustainable and cash generative business which consistently provides returns on total capital employed significantly ahead of its cost of capital.


DCC Energy is the leading oil and liquefied petroleum gas (LPG) sales, marketing and distribution business in Europe. In oil, DCC Energy is the market leader in Britain and Sweden and one of the leading oil distribution businesses in Austria, Denmark and Ireland. In LPG, DCC Energy is market leader in Norway and Sweden, joint leader in the Netherlands and is a strong number two player in both Britain and Ireland.

DCC Technology is a leading sales, marketing, distribution and supply chain business providing a broad range of consumer and SME focussed products and services in Europe.


DCC Healthcare is focussed on the sales, marketing and distribution of pharmaceuticals and medical devices in the British and Irish markets and the provision of outsourced product development, manufacturing, packing and other services to Health and Beauty brand owners, principally in the areas of nutrition and beauty products.


DCC Environmental is a leading British and Irish provider of recycling, waste management and resource recovery services to the industrial, commercial, construction and public sectors, operating in both the non-hazardous and hazardous segments of the market. This year DCC Environmental handled approximately 1.4 million tonnes of waste through its twenty one facilities in Britain and Ireland.


DCC Food & Beverage is principally focussed on the sales, marketing and distribution of food and beverage products in Ireland.

7 Feb Peel Hunt 6,575.00 Add

Acquisition of Shell LPG Hong Kong & Macau
RNS
RNS Number : 6246B
DCC PLC
05 April 2017
 
 
5 April 2017
 
DCC Energy agrees to acquire Shell's LPG business in Hong Kong and Macau
 
DCC plc, the leading international sales, marketing and business support services group, announces that DCC Energy has reached agreement with Shell Gas (LPG) Holdings BV to acquire its liquefied petroleum gas ("LPG") business in Hong Kong and Macau ("Shell HK&M") based on an enterprise value of HK$1.165 billion (c. £120 million).  The business is one of the leading LPG businesses in Hong Kong and is the market leader in Macau.  The business is required to be separated from the broader Shell Hong Kong operations and the transaction requires certain regulatory consents and operating licence approvals. The acquisition is expected to complete before the end of DCC's financial year ending 31 March 2018.
 
Shell's LPG business in Hong Kong and Macau
Shell HK&M is one of the leading LPG sales and marketing businesses in Hong Kong and Macau, where it has been selling LPG for almost sixty years.  The business provides LPG in bulk, cylinder and autogas formats to domestic, commercial and industrial customers.
 
In Hong Kong it is the market leader in supplying piped LPG to the very large apartment complexes common in the territory. Shell HK&M supplies the complexes through its infrastructure of bulk tanks and piping to service the energy needs of over 100,000 households. Shell HK&M is the number three player in the cylinder market and also supplies autogas to Shell's retail network. The business is the market leader in the smaller Macau market. Shell HK&M is headquartered in Kowloon and operates a terminal and filling plant on Tsing Yi Island.
 
In the year ended 31 December 2016, the business supplied approximately 74,000 tonnes of LPG and under DCC's ownership is expected to deliver an annual operating profit of c. HK$145 million (c. £15 million). 
 
Following the completion of the acquisition, the business will continue to operate under the Shell brand in both Hong Kong and Macau, based on a long term brand licence agreement.
 
Strategic rationale
DCC Energy's strategy is to be a global leader in the sales and marketing of fuels and related products and the provision of services to end consumers. The acquisition of the Shell LPG business in Hong Kong and Macau is in line with this strategy and DCC Energy's ambition to, over time, build a significant presence in the global LPG market.  Demand for LPG is expected to grow strongly in developing markets throughout the world, given LPG's relative strength as a portable, clean and efficient energy source.  The acquisition of Shell HK&M will give DCC a strong presence in a mature and stable market in Asia and, importantly, provides a development platform in the region to build a larger LPG business in the future.
 
 
 
Tommy Breen, Chief Executive of DCC plc, said today:
 
"The acquisition of Shell's LPG business in Hong Kong and Macau is an exciting development for DCC and is consistent with our ambition to build a substantial presence in the global LPG market.  The acquisition represents a further strengthening of our relationship with Shell and gives us a strong market position in Hong Kong and Macau.  It is also DCC's first material step in building its business outside of Europe and gives DCC a platform for development in the growing LPG market in Asia."

Morgan Stanley downgrades Aggreko, prefers DDD and AA
Wed, 03 May 2017
(ShareCast News) - Casting its critical eye over the larger UK business services groups, Morgan Stanley said Aggreko, Berendsen and Capita, instead recommending investors own DCC, AA, Experian and Rentokil.
Morgan Stanley, which downgraded Aggreko alongside Berendsen to 'underweight' from 'equal weight', said this pair had begun to offer fewer of the attributes analysts that would suggest they will outperform over the long term: "sustainable, high returns on capital, strong cash generation and attractive growth prospects, set within a framework that is aligned with shareholder interests".

Aggreko was viewed as a "challenged business with a strong management team".

While the temporary power group's current year is felt likely to see a recovery in its local rental businesses, "its core issue of not winning enough utility contracts to offset churn, while pricing remains under pressure, should lead the equity story from here", alongside a stuttering new fleet strategy.

Berendsen was downgraded last week after another profit warning that was attributed by management to capex under-investment in the UK business, whereas Morgan Stanley's analysts see growth as unlikely to improve as competitive intensity increases in the UK market with Europe following a similar trend.

Having re-rated by 32%, G4S was given a new target price of 330p, as analysts see growth well supported this year with further restructuring benefits expected.

As for DCC, as the most preferred stock in the sector, the bullish view is that the market "is underestimating the growth potential from M&A".

AA, second most preferred, is admired for its stable cash flow, high margin, strong cash conversion and improving B2C membership.

09:50 09/05/2017
Broker Forecast - Jefferies International issues a broker note on DCC PLC
Jefferies International today reaffirms its buy investment rating on DCC PLC (LON:DCC) and raised its price target to 8500p (from 7500p). Story provided by StockMarketWire.com

Results for the year ending March 2017

·   All divisions of DCC recorded strong profit growth, with Group operating profit on a continuing basis  increasing by 20.9% (12.8% on a constant currency basis) to £345.0 million.
 
·    Adjusted earnings per share on a continuing basis up 18.1% (10.3% on a constant currency basis) to 286.6 pence.
 
·    Proposed 16.3% increase in the final dividend, which, together with the interim dividend increase of 12.5%, will see the total dividend for the year increase by 15.0%, the 23rd consecutive year of dividend growth since DCC listed in 1994.
 
·   Excellent cash flow performance, with free cash flow conversion of 114% and a return on total capital  employed of 20.3%.
 
·    Very active period of corporate development, with over £550 million committed to acquisitions, including the agreed acquisition of Esso's retail network in Norway, the agreed acquisition of Shell's LPG business in Hong Kong & Macau, DCC's first material step beyond Europe, and further acquisition activity across DCC Energy, DCC Healthcare and DCC Technology.
 
·     The agreed disposal of DCC's environmental division for an enterprise value of £219 million brings increased  strategic focus to the Group.
 
·   The Group expects that the year ending 31 March 2018 will be another year of profit growth and  development

17 May
JP Morgan...
8,160.00
Overweight
17 May
JP Morgan...
8,160.00
Overweight
16 May
Peel Hunt
7,247.00
Add

DCC PLC (DCC:LSE) set a new 52-week high during today's trading session when it reached 7,590.00. Over this period, the share price is up 18.20%.

DCC LPG makes first acquisition in US LPG market
RNS
RNS Number : 7555V
DCC PLC
07 November 2017
 
 
 
7 November 2017
 
DCC LPG makes first acquisition in large US LPG market
 
DCC plc, the leading international sales, marketing and support services group, announces that DCC LPG has reached agreement with NGL Energy Partners LP ("NGL") to acquire its Retail West LPG division, Hicksgas LLC ("Retail West" or "the business"), based on an enterprise value of US$200 million (£152 million). 
 
The acquisition represents DCC LPG's entry into the US market and is a further significant step in DCC's strategy to build a global LPG business over time.  The US is one of the world's largest LPG markets and is an attractive and growing market. It is also highly fragmented, with over 4,000 LPG distribution businesses operating in the market. The acquisition of Retail West will provide DCC with a substantial, high-quality presence in the US with leading market positions in a number of states. The business has an excellent customer base, a strong and well-invested operational infrastructure and an experienced management team.
 
The transaction is expected to complete on 31 March 2018, following receipt of customary regulatory consents and separation from NGL.
 
The Retail West business
Headquartered in Illinois, Retail West has been in business for over 70 years and currently employs 390 people. It sells approximately 130,000 tonnes1 of LPG annually from 43 customer service locations and 58 satellite facilities.  The business trades under three prominent regional brands, Hicksgas, Pacer Propane and Propane Central, and a number of smaller, local brands.  Retail West has leading market positions in Illinois, Indiana and Kansas and also operates in seven other states across the Mid-West and North-West regions.
 
The business has a long-established and loyal base of 65,000 customers. Approximately two thirds of annual volume is sold to residential customers, predominantly for heating purposes, with the balance sold to commercial and agricultural customers in both small and large bulk format.
 
Retail West has a well-invested asset base of approximately 100 bulk storage facilities and a company-owned distribution fleet of over 150 vehicles. Retail West also owns the majority of tanks on customer premises. 
 
The business has an experienced and long-serving management team who have a strong track record of delivering both organic and acquisition growth.  It has operated as a standalone division within NGL and will continue to operate and develop under the leadership of its existing management team, post completion of the acquisition.
 
Retail West is expected to initially deliver an annual EBITDA of approximately $281 million (£21 million) and EBITA of $201 million (£15 million). The acquisition will be earnings accretive from completion and the after tax cash payback will be approximately 10 years. The business is very well placed to continue its track record of profitable organic growth and also provides a base for synergistic acquisition activity, both of which would further enhance returns.  
 
Strategic rationale
DCC LPG's strategy is to be a global leader in the sales and marketing of LPG, with a developing business in the retailing of natural gas and electricity. The acquisition of Retail West is in line with this strategy and will give DCC a material footprint in the very large, fragmented and growing US LPG market. It marks DCC LPG's entry into the US market and provides a substantial base for further development in the region.
 
Donal Murphy, Chief Executive of DCC plc, said today:
 
"The acquisition of Retail West in the US is an exciting development for DCC and is consistent with our ambition to build a substantial presence in the global LPG market.  Our LPG business has grown significantly in recent years and Retail West will give DCC a material platform for development in the large, fragmented and growing LPG market in the US.  We very much look forward to welcoming the Retail West management and employees into the DCC Group and working together to grow and develop Retail West into the future

7 Nov
Peel Hunt
7,247.00
Add

Six months results ending 30 Sept 2017

·    Strong first half performance with Group adjusted operating profit on continuing activities increasing by 14.4% (up 9.7% on a constant currency basis) to £122.5 million, with all divisions recording growth on the prior year.
 
·     Adjusted earnings per share on continuing activities up 16.1% (11.5% ahead on a constant currency basis) to 95.5 pence.
 
·     Interim dividend increased by 10.0% to 40.89 pence per share.
 
·    The Group continues to be very active from a development perspective. Recently, DCC Retail & Oil completed the acquisition of Esso Retail Norway and DCC Technology completed the acquisition of MTR. DCC LPG remains on schedule to complete the acquisition of Shell Hong Kong & Macau before the end of the financial year.
 
·    In addition, on 7 November 2017, DCC LPG announced its agreement to acquire Retail West from NGL Energy Partners, for an enterprise value of $200 million (£152 million). This will be DCC LPG's first step into the very large US LPG market and is DCC's first substantial acquisition in North America.
 
·    Reflecting the announced acquisition activity to date, the Group's cash spend on acquisitions in the current financial year will be approximately £550 million.
 
·    The Group reiterates its belief that the year ending 31 March 2018 will be another year of profit growth and development.

08:00 20/11/2017
Broker Forecast - Berenberg issues a broker note on DCC PLC
Berenberg today reaffirms its buy investment rating on DCC PLC (LON:DCC) and raised its price target to 8700p (from 8500p). Story provided by StockMarketWire.com

DCC completes acquisition of Shell LPG HK & Macau
RNS
RNS Number : 7731A
DCC PLC
03 January 2018



3 January 2018

DCC LPG completes acquisition of Shell's LPG business in Hong Kong and Macau

DCC plc, the leading international sales, marketing and support services group, announces that DCC LPG has completed the acquisition of Shell's LPG business in Hong Kong and Macau.

Details of the acquisition were set out in DCC's Stock Exchange Announcement on 5 April 2017.

08:50 23/01/2018
Broker Forecast - Peel Hunt issues a broker note on DCC PLC
Peel Hunt today reaffirms its add investment rating on DCC PLC (LON:DCC) and raised its price target to 8149p (from 7247p). Story provided by StockMarketWire.com

Results

· Strong performance for the year with all divisions recording good profit growth and Group adjusted operating profit on continuing operations increasing by 11.1% (8.6% ahead on a constant currency basis) to £383.4 million.

· Adjusted earnings per share on continuing activities up 10.8% (8.3% ahead on a constant currency basis) to 317.5 pence.

· Proposed 10.0% increase in the final dividend will see the total dividend for the year increase by 10.0%, the 24th consecutive year of dividend growth since DCC listed in 1994.

· Good cash flow performance with free cash flow conversion of approximately 85% and a return on capital employed of 17.5%.

· Record year of corporate development spend with approximately £670 million of acquisition capital deployed.

· Acquisitions completed across all divisions, including the acquisitions of Retail West and Elite One Source, DCC's first entry into the large US markets for LPG and for Health & Beauty Solutions.

· The Group expects that the year ending 31 March 2019 will be another year of profit growth and development.

16/05/2018
Broker Forecast - JP Morgan Cazenove issues a broker note on DCC PLC
JP Morgan Cazenove today reaffirms its overweight investment rating on DCC PLC (LON:DCC) and raised its price target to 8380p (from 8160p). Story provided by StockMarketWire.com Broker Forecasts data provided by www.sharesmagazine.co.uk

11:10 21/05/2018
Broker Forecast - Stifel issues a broker note on DCC PLC
Stifel today reaffirms its buy investment rating on DCC PLC (LON:DCC) and raised its price target to 9230p (from 8530p). Story provided by StockMarketWire.com Broker Forecasts data provided by www.sharesmagazine.co.uk

Interim Management Statement
RNS
RNS Number : 5588U
DCC PLC
13 July 2018




13 July 2018

DCC plc

Interim Management Statement

Strong Growth in First Quarter Operating Profit and Guidance for the Year Reiterated

DCC plc, the leading international sales, marketing and support services group, is issuing this Interim Management Statement in advance of the Company's AGM to be held in Dublin at 11.00 am today.

First quarter ended 30 June 2018
Group operating profit for the first quarter ended 30 June 2018 was in line with expectations and, as anticipated, well ahead of the prior year, driven by acquisitions completed in the prior year.

Year ending 31 March 2019
DCC's profits are significantly weighted towards the second half of its financial year. At what is still a very early stage in the financial year, the Group reiterates its belief that the year ending 31 March 2019 will be another year of profit growth and development.

Development activity
DCC has today separately announced that DCC Technology has acquired Stampede in the US and Kondor in the UK.

Stampede is a specialist distributor of professional audio-visual products and solutions to system integrators, value-added resellers, retailers and etailers in the US, Canada and the UK. Stampede recorded revenue of $280 million in the year ended 31 December 2017 and employs approximately 210 people. The acquisition of Stampede represents DCC Technology's first acquisition in North America and is consistent with DCC Technology's strategy to extend the geographic footprint and product range of its successful and growing professional audio-visual business, strengthening its partnership with existing suppliers, while also broadening its base of customers and suppliers.

Kondor distributes mobile and accessory products and provides outsourced category management solutions to the retail channel in the UK and Continental Europe. Kondor recorded revenue of £110 million in the year ended 31 December 2017 and employs approximately 250 people. The acquisition of Kondor strengthens DCC Technology's position as one of the leading omnichannel distribution and supply chain businesses in Europe.

The combined initial enterprise value of Stampede and Kondor is c.£110 million. DCC expects the acquisitions to generate a return on capital employed of approximately 15% in the first full year of ownership.

DCC has grown substantially in recent years and now has significant operations across 17 countries, with market-leading positions in each of its LPG, Retail & Oil, Healthcare and Technology divisions. DCC's ambition and capacity for further development, together with the Group's leading market positions and increased geographic reach, provide substantial opportunity for the continued growth and development of the business.

Forthcoming events
DCC will host a Capital Markets Day for analysts and institutional investors in Marseille, France on Thursday 13 September 2018.

DCC expects to announce its interim results for the six months to 30 September 2018 on Tuesday 13 November 2018.

23 Aug
Peel Hunt
N/A
Add

10:30 07/09/2018
Broker Forecast - RBC Capital Markets issues a broker note on DCC PLC
RBC Capital Markets today initiates coverage of DCC PLC (LON:DCC) with a outperform investment rating and price target of 9500p. Story provided by StockMarketWire.com Broker Forecasts data provided by www.sharesmagazine.co.uk

pro active investor - DCC should be a “key holding” in any investor’s portfolio, argues RBC
Share
12:20 07 Sep 2018
Analysts at Canadian investment bank RBC reckon the stock is undervalued following a summer slide, and points to possible M&A activity and solid fundamentals for its bullish stance

RBC has the stock as a ‘buy’ with a punchy 9,500p price target
DCC should be a “key holding” in any investor’s portfolio, according to RBC Capital, which has kicked off its coverage of the sales, marketing and support services group with an ‘outperform’ rating and a bullish 9,500p price target.
Analysts at the Canadian bank point out that the FTSE 100 group, which markets and sells everything from oil and gas to the latest tech, has a strong track record of “earnings enhancing acquisitions”.

READ: DCC confident of another year of growth
“In our view, DCC could comfortably spend £400mln per annum on M&A whilst not getting close to its self-imposed leverage ceiling of 2.0x EBITDA,” read a note to clients.
“Assuming an average EV/EBITA multiple of 6.5x and 5% growth thereafter, then we see 55% EPS upside to our FY23 base case estimates.”
RBC analysts reckon the US will be a key target for management following DCC’s recent entry into the healthcare and liquefied petroleum gas (LPG) markets across the pond.
In its bullish assessment of the company’s prospects, the investment bank talked up the “strength of [DCC’s] operating model, consistent cashflow and return characteristics and earnings upside potential from consolidation opportunities in its fragmented end markets”.
Despite that, shares have dropped more than 10% over the summer months, which RBC reckons has made the valuation “undemanding” compared to peers and worthy of a punt.
“We see recent underperformance as a buying opportunity, given the valuation versus growth dynamics, particularly in reference to other defensive growth names in Business Services,” said the note.
Shares rose 0.8% in early afternoon trading on Friday to 6,770p, still some-way short of RBC’s target.