Investment: DCC holds long-term attractions
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.DCC, the Irish industrial holding company, rewarded investors yesterday with better than expected first-half group profits, which rose by 32 per cent to Irpounds 17.2m. Although the shares soared 70 Irish pence to 490p on the results, many analysts still believe the company is attractive, particularly for investors who want exposure to the "Celtic Tiger".
With niche operations in the healthcare, food, energy and computer distribution sectors, and a forward p/e of 12, there is a feeling that the shares were "oversold" after reaching a high of 710p in May.
The City is impressed with DCC's management and likes its collection of operations with steady earnings streams, mainly within Ireland. However Jim Flavin, chief executive, is expanding the group's healthcare and computer operations internationally. Also, its "localisation" business - the adaptation of computer applications for non-English-speaking markets - has led to growth into Europe, the US and Asia. This has made the group's computer division, SerCom, the company's most profitable, with earnings up by 58 per cent in the first half of this year.
The main cloud is uncertainty about the Irish economy. But with interest rates falling sharply, near double-figure annual GDP rises look set to continue. If the Irish economy avoids the bust that some predict, DCC looks a good long-term buy.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments