DCC shares jump after revealing break-up plan
Shares in the company surged by about 15% on Tuesday morning after revealing the strategic plans.
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Your support makes all the difference.FTSE 100-listed business services company DCC has told investors it is plotting to break up the group to focus solely on its energy division.
Shares in the company surged by about 15% on Tuesday morning after revealing the strategic plans.
Dublin-based DCC said it was preparing to sell its healthcare arm and was reviewing options for its technology business.
The energy division offers sales, marketing and distribution services to firms wanting to transition to using cleaner energy.
This includes partnering with liquid gas and fuel producers and distributing the commodity to customers, installing solar power systems for firms, and operating service stations for cars.
Energy transition represents the biggest growth opportunity, DCC said, which is why it wants to focus purely on that part of the business.
The group has begun pursuing a sale of its healthcare division, through which it supplies medical products to hospitals and GP surgeries and makes beauty products for brands such as Estee Lauder.
This sale is expected to be completed next year, which any extra cash raised from breaking up the group set to go to shareholders.
DCC said it was also reviewing its strategic options for the technology division within the next two years.
That part of the business works by providing services and distributing products for brands like Apple and Microsoft.
Donal Murphy, DCC’s chief executive, said: “In the energy sector we are building a unique, multi-energy, sustainable business focused on supporting our customers with their energy transition.
“Our strategy will deliver strong profit growth, high returns and a significant reduction in our customers carbon emissions.”
The company made an adjusted operating profit of £259.3 million in the six months to the end of September, 4.7% higher than the same period a year ago.