DCC's interim profit grows as lower costs offset decline in revenue

Distribution and logistics group DCC reported an increase in interim pre-tax on the back of an improvement in gross margins, although revenue suffered a slight decline.

In the six months to the end of September, the group posted a 23.2% year-on-year increase in pre-tax profit to £52.5m, although revenue fell 6.6% to £5.07bn, as the continued decline in oil prices affected the group’s fuel distribution business.

Excluding the energy business, revenue rose 4.3% the FTSE 250 company said.

However, the decline in revenue was offset by a fall in cost sales, which declined 8.1% to £4.64bn, and DCC said it expects operating profit and earnings to be "significantly" ahead year-on-year for the full year to the end of March 2016 and "modestly" ahead of market expectations assuming conditions in the upcoming winter are as expected.

DCC shares were up 4.20% to 5,580.00p at 0840 GMT on Tuesday.