Results round-up

Greencore reported a jump in full-year revenue and earnings as it hiked its dividend and announced the proposed acquisition of Peacock Foods for an enterprise value of $747.5m.

In its preliminary results for the year to the end of September, the company said revenue was up 10.6% to £1.48bn, or 5.9% higher on a like-for-like basis, while group earnings before interest, taxes, depreciation and amortisation were up 13.9% to £138.4m.

Convenience Foods revenue grew 6.6% on a LFL basis to £1.44bn and Greencore proposed a final dividend of 4.10p per share, giving a total dividend of 6.65p per share, up 8.1%.

Greencore said it saw continued strong momentum across UK and US food-to-go activity, with 10.5% like-for-like revenue growth, well ahead of market performance.

Also on Monday, the group announced the proposed acquisition of Peacock Foods, a US convenience food manufacturer which generated revenue of around $1bn and adjusted EBITDA of $72.1m in the year to September.

Greencore said the deal has the potential to transform its market and channel position in the US and create a strong platform for long-term profitable growth.

The acquisition will be funded by a fully underwritten rights issue offered to qualifying shareholders to raise a total of £439.4m and new debt facilities of approximately £200m.

Irish business support services group DCC’s half year revenue rose as it continues its expansion strategy, while it expects full year earnings to be “significantly” ahead of expectations.

Revenue for the six months ended 30 September climbed 10.5% to £5.6bn compared to last year and revenue excluding DCC Energy increased 13.3% to £6.59bn.

Operating profits surged 33.3% to £117.8m, or up 26.5% on a constant currency basis.

Adjusted earnings per share jumped 31.1% to 92.1p, and the company declared an interim dividend of 31.17p, a 12.5% increase from last year.

Operating cash flow at the end of September was £141m, up from 120.7m.

During the first half of the year the company spent £181m on acquisitions, including two fresh announcements on Monday, including that DCC Energy had bought Gaz Européen, a French natural gas retail and marketing business, for €110m (£96m).

This acquisition built upon a March purchase of Danish gas firm Dansk Fuels, which was completed ahead of schedule.

In addition, DCC Healthcare has agreed to buy Medisource, an Irish pharmaceutical procurement, sales and marketing business for €32m (£27m).

The FTSE 100 company, which as part of the typically seasonal nature of its businesses generates around 70% of profits in the second half of the year, said it expects both operating profit and adjusted earnings per share for the year ending 31 March 2017 will be significantly ahead of last year and ahead of current market consensus.

Average net debt was £262m compared to £60m last year.