Irish
DCC reports 37.5% rise in net profit; Acquires 50% shareholding in Scotland's top recycling and waste management business
By Finfacts Team
May 15, 2006, 07:45

Printer-friendly page from Finfacts Ireland Business News - Click for the News Main Page - A service of the Finfacts Ireland Business and Finance Portal

DCC plc, the Irish business support services group, reported today that revenues rose 29.9% to €3.4 billion in the year to March 31st.

Profit before tax rose 37.5% to €138.8 million.

Commenting on the results, DCC's Chief Executive/Deputy Chairman, Jim Flavin,
said:

"Excellent profit growth was achieved in DCC Energy, DCC Healthcare,  DCC Food & Beverage and in DCC's share of associates' profit after tax. DCC SerCom also achieved strong profit growth in the second half after a difficult first half.

DCC has budgeted for continued good operating profit growth from subsidiaries in the current year to 31 March 2007. As announced on  3 April 2006, the share of associates' profit after tax may be materially less in the current year, based on DCC's current expectation of a short term reduction in the profit contribution from its 49% shareholding in Manor Park Homebuilders due to planning delays. Manor Park has a large landbank for housing development and other development projects in the pipeline from which it should earn substantial profits in the future."

Acquisition

DCC also announced that it has acquired a 50% shareholding in the William Tracey group of companies, a Sottish based recycling and waste management business, for a consideration, net of share of cash acquired, of €23.9 million (Stg£16.3 million), which was satisfied in cash.

Founded in 1948, William Tracey is Scotland's leading recycling and waste
management business, with a reputation for innovation and creativity in the management of waste and recycling. The Group has been owned by its Managing Director, Michael Tracey, a son of the founder, from whom DCC has acquired its shareholding. The Group's head office is in Linwood near Glasgow and it employs 255 people.

William Tracey operates from six freehold sites in Scotland and carries out a broad range of activities including materials recycling, hazardous waste treatment, landfill and renewable energy generation from landfill gas. The Group's extensive fleet of specialist waste management vehicles collects waste from industrial and commercial customers for processing. The Group also processes waste on behalf of local authorities and other third parties.

The adjusted operating profit of the William Tracey Group for its financial year ended 30 April 2006 was approximately €7.3 million (Stg£5.0 million) on sales of approximately €42.5 million (Stg£29.0 million). At 30 April 2006 the book value of the Group's net assets was approximately €16.9 million (Stg£11.5 million) including net cash of approximately €7.3 million (Stg£5.0 million).


Michael Tracey and his management team have deep knowledge and experience of the waste management and recycling business. William Tracey's innovative approach to recycling, creating valuable end products from a range of waste streams, positions it at the forefront of the industry's move away from landfill. Michael Tracey is a Director of the Environmental Services Association in Britain and was until recently Chairman of the Scottish Environmental Services Association and he will join the Board of DCC Environmental Limited.

Jim Flavin, Chief Executive/Deputy Chairman of DCC plc, said today:

    "DCC has been keen to expand its environmental services business into
    Britain and also into the non-hazardous waste sector. The acquisition
    of a 50% shareholding in the William Tracey Group achieves both of these
    objectives and also increases the scale and technical expertise of DCC
    Environmental. DCC looks forward to working in partnership with Michael
    Tracey in the further expansion of the William Tracey Group and of
    DCC Environmental. "



© Copyright 2007 by Finfacts.com