DCC considering moving listing to London
Updated: Wednesday, 06 Feb 2013 18:06
Business services support group DCC has announced that it is reviewing the listing arrangements for its shares.
It said that it is considering whether to seek a listing on the FTSE UK Index series, which would result in the cancellation of its listing in Dublin.
It is also considering whether to change DCC's reporting currency from euro to sterling, as for some time the majority of its revenue and operating profit has been generated in the UK.
It noted that most of its development activity and expenditure since 1994 has taken place outside Ireland.
77% of DCC shares are now held by institutional investors outside of Ireland.
See how DCC shares traded today in Dublin.
In a trading update today, it said that none of the changes being considered would have any impact on the domicile or operations of the company. ''The company will remain incorporated, headquartered and tax resident in Ireland,'' it added.
Today's trading statement said that group revenue and operating profits in the third quarter to the end of December were ''well ahead'' of the previous year. It said this was mainly due to the performance of DCC Energy which was boosted by colder weather conditions compared to the exceptionally mild weather in Northern Europe the previous year.
Operating profit at DCC Energy, which is the group's largest division, was significantly head of the previous year and in line with budgets.
DCC SerCom's operating profits, its second largest division, was in line with expectations in what is a seasonally important quarter for the division. It said the UK business was boosted by strong growth in mobile communications and tablet products. But this was offset by continued weakness in the home entertainment market and a ''challenging environment'' in Europe.
It said that DCC Healthcare and DCC Food and Beverage traded modestly ahead of the previous year while trading in DCC Environmental fell modestly.
During the group's fiscal third quarter, DCC reached a conditional deal to buy Kent Pharmaceuticals, a UK generic pharmaceuticals company. The deal has now received clearance from the Irish Competition Authority and it is expected that it will be completed later this month.