LONDON (ShareCast) - Support services group DCC maintained its track record after another year of strong earnings growth, analysts at Berenberg said in a note on Tuesday.
The Dublin-based company said its pre-tax profit for the year to 31 March rose 8.1% year-on-year to £163.3m, while earnings before interest, tax, depreciation and amortisation climbed 6.8% to 199.6m and operating profits for period rose 10.5% to £221.7m.

The brokerage underlined how the strong performance in the 12 months to the end of March led to a 10% growth in dividend, which marked the 21st consecutive year of dividend growth since the company listed in 1994.

"This track record of stable earnings growth, strong cash conversion and high rates of return make DCC a core holding in our view," Berenberg analysts said.

Meanwhile, the brokerage said the FTSE 250 group's decision to submit a €464m (£332m) binding offer to oil giant Shell for its Butagaz liquefied petroleum gas business in France was welcome news, as it would significantly enhance the group's earnings, whic makes the deal "particularly attractive".

Berenberg retained its 'buy' rating on the stock with a target price of 4,780p.

DCC shares were up 10.8% to 4,864.00p at 11:07 on Tuesday.

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