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DCC posts interim profits

Paul Kunert

The IT division at DCC recorded interim profits but the distribution conglomerate noted that the impact of foreign exchange rates coupled with weaker market conditions may reduce bottom line growth for the year.

In the six months to 30 September, the parent of Micro P, Gem, Banque Magnetique and Portix, said group turnover rise 40.7% to 3.2bn€ (£2.6bn) and operating profit went up 30.3% to 60.6m€ (£48.9m).

The SerCom division - IT distribution - saw growth 20.6% and 8.3% take revenues and profits to 694m€ and 13.5m€ respectively, but at constant currencies turnover would have 30.3% and profits 17.1%.

The retail wholesale business in Britain performed well the firm with continued buoyancy in the games mark and it took market share in the business markets, the firm said in a statement.

"The reseller business performed in line with the prior year. The business in Britain performed strongly, benefiting from market share gains, while the Irish business experienced a marked deterioration in demand," said DCC.

Coming into the seasonally important second half of the year the business noted it was operating in an environment, "which has deteriorated in recent months" yet it was confident of meeting profitable growth targets.

In recent, a number of UK nationals in the distribution community have posted results that indicate a slowdown in the reseller channel including Westcoast and Northamber.

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