DCC profit falls, plans 600 million pound tender offer after divestments

DCC PLC on Tuesday reported a 5.4% drop in first-half adjusted operating profit but reiterated its full-year guidance and detailed plans for a 600 million British Pounds tender offer for shareholders.

The Dublin-based group, which is simplifying its business to focus on energy, said adjusted operating profit from continuing operations for the six months ended Sept. 30 fell to 206.7 million British Pounds.

The company attributed the decline to strong prior-year comparisons, the impact of mild weather, and the disposal of its Hong Kong and Macau business.

The results follow the completed sales of its healthcare division and its UK and Ireland technology distribution business.

DCC said it intends to launch the tender offer shortly, with completion expected in December, as part of a plan to return proceeds from the divestments to shareholders.

The company recently completed a 100 million British Pounds share buyback.

"It has been a period of significant strategic progress," Chief Executive Donal Murphy said in a statement.

"We continue to expect good profit growth for the full year in line with market expectations, demonstrating our resilient business model."

DCC raised its interim dividend by 5.0% to 69.50 pence per share.