DCC increases its 2017 full year dividend by 15%

DividendMax Ltd.

DCC increases its 2017 full year dividend by 15%

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.



The Board is recommending an increase of 16.3% in the final dividend to 74.63 pence per share, which, when added to the interim dividend of 37.17 pence per share, gives a total dividend for the year of 111.80 pence per share. This represents a 15% increase over the total prior year dividend of 97.22 pence per share.  The dividend is covered 2.6 times by adjusted earnings per share on a continuing basis (2.5 times in 2016).  It is proposed to pay the final dividend on 20 July 2017 to shareholders on the register at the close of business on 26 May 2017. 


Over its 23 years as a listed company, DCC has an unbroken record of dividend growth at a compound annual rate of 14.7%.



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