LONDON (ShareCast) - (ShareCast News) - Irish business support services group DCC's half year revenue rose as it continues its expansion strategy, while it expects full year earnings to be "significantly" ahead of expectations.
Revenue for the six months ended 30 September climbed 10.5% to £5.6bn compared to last year and revenue excluding DCC Energy increased 13.3% to £6.59bn.

Operating profits surged 33.3% to £117.8m, or up 26.5% on a constant currency basis.

Adjusted earnings per share jumped 31.1% to 92.1p, and the company declared an interim dividend of 31.17p, a 12.5% increase from last year.

Operating cash flow at the end of September was £141m, up from 120.7m.

During the first half of the year the company spent £181m on acquisitions, including two fresh announcements on Monday, including that DCC Energy had bought Gaz Européen, a French natural gas retail and marketing business, for €110m (£96m).

This acquisition built upon a March purchase of Danish gas firm Dansk Fuels, which was completed ahead of schedule.

In addition, DCC Healthcare has agreed to buy Medisource, an Irish pharmaceutical procurement, sales and marketing business for €32m (£27m).

The FTSE 100 company, which as part of the typically seasonal nature of its businesses generates around 70% of profits in the second half of the year, said it expects both operating profit and adjusted earnings per share for the year ending 31 March 2017 will be significantly ahead of last year and ahead of current market consensus.

Average net debt was £262m compared to £60m last year.

Chief executive Tommy Breen said: "The results reflect continued execution of our strategy to grow the business organically, deliver a very strong cash flow performance and redeploy capital at attractive rates of return.

"The group continues to have the ambition and capacity for further development and importantly, as DCC increases in scale and geographic reach, also has the opportunity to build substantial market positions in its chosen sectors."

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