DCC plc (LON:DCC)
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Apr 28, 2026, 4:50 PM GMT
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Strategy Update

Nov 12, 2024

Donal Murphy
CEO, DCC plc

Today we are announcing a strategic plan to maximize shareholder value by focusing DCC solely on our compelling opportunity in energy and by simplifying the Group's operations through portfolio actions. We are taking decisive action from positions of strength to simplify the Group, pursue our largest growth and returns opportunity in energy, and unlock substantial shareholder value. This aligns with our philosophy of disciplined capital allocation. As Chief Executive of DCC PLC for the past seven years, I have been very proud of the growth and development of the Group. However, I firmly believe that to maximize shareholder value, we need to change our strategic direction. Our plan to maximize value has three actions. Firstly, we believe that our energy business is our most compelling growth opportunity at strong returns.

Reflecting on the scale of the opportunity and the progress we have made with our Cleaner Energy in Your Power strategy, the Group will now focus solely on energy. Secondly, we have begun preparations for the sale of DCC Healthcare, which we expect to complete in 2025. DCC Healthcare is an excellent business with a long-term record of growth. Thirdly, within the next 24 months, as we complete our operational improvement program for the business, we will review the strategic options for DCC Technology. As ever, we are committed to maintaining a strong balance sheet and our investment grade credit rating. Given the significant cash generation of the Group, we anticipate that any surplus cash arising from the simplification of the Group will be returned to our shareholders in due course.

This announcement demonstrates the Board's continued focus on active capital allocation and our commitment to delivering value for our stakeholders. I have committed to the Board to leading the transformation and to continuing to deliver our strategy. Today we commence the next stage in the evolution of DCC PLC. I believe that our simplified DCC has a powerful future. So why focus on energy? In May 2022, we updated our strategy for the Energy Division, focusing on the 2030 objectives of doubling profits while significantly reducing our customers' carbon emissions. The key components of our strategy include converting our customers to renewable and other low-carbon alternative fuels and building a leading and complementary energy management services capability. Our strategy aligns with the positive structural trends in the energy sector and the necessity for secure, affordable, efficient, and lower-carbon energy.

Since 2022, we have made excellent progress delivering strong organic growth in biofuels and enhancing our capability in new energies. Our proven M&A approach has accelerated the strategy over the same period, deploying circa GBP 650 million of capital at attractive returns. Our energy business now represents 74% of the Group's operating profits and delivers 18.7% return on capital employed, the highest return of the Group's three divisions. DCC Energy is a business of real scale with market-leading positions in 12 countries. The business supports the energy needs of circa 10 million customers annually across commercial, industrial, domestic, and transport uses. DCC has a near 50-year heritage in the off-grid sector, bringing energy and the capability to consume it to our customers. The business has a competitive advantage in solving the transition needs of our customers, founded on relationships that typically last for more than a decade.

We have already made significant progress in reducing the carbon intensity of our customers' energy. In 2024, 42% of DCC's energy profits came from lower-carbon fuels and 35% from renewable products and services. We believe that solving the energy transition needs of our customers is the greatest growth opportunity that DCC has ever had. Our healthcare and technology divisions have a long and successful heritage in DCC. From modest beginnings, we've grown both divisions into international businesses of scale. They are high-quality businesses with excellent operational capability led by strong entrepreneurial management teams. Through our actions, we will ensure that these businesses and, most importantly, our people will have the best opportunity to grow and progress. DCC Healthcare has grown strongly over the last decade. The business has market-leading positions across both its patient health and consumer health businesses.

Each of these businesses operates in attractive end markets with significant consolidation opportunities. After careful consideration, the Board of DCC believes that the sale of the division has the clear potential to enhance the focus and success of the business while unlocking substantial value for DCC shareholders. We have appointed advisors, and preparations for a sale have already begun. We expect the sale to complete in 2025. DCC Technology has also grown strongly over the last decade. The business provides a wide range of products and services across three product areas: Pro Tech, Life Tech, and InfoTech. DCC Technology is a global leader in Pro Tech and has established a particularly strong footprint in both Pro Tech and Life Tech in North America. The Info Tech business has operated in a challenging market in Europe in recent years but has improved its profitability through the operational improvement program.

Given the potential for further improvements in profitability, our initial focus will be on delivering our operational integration program in North America and then reviewing the strategic options for DCC Technology. This will take place over the next 24 months. This announcement is a significant change in our strategy, but we are not changing the DNA of DCC Group. We will continue to focus on delivering high growth at high returns on capital employed. We will continue to be a compounder, focusing on value creation through both driving organic growth and deploying capital in the highly attractive energy sector. We believe that simplifying the Group to focus solely on our energy business presents the greatest opportunity for DCC to deliver high growth at high returns. We are building a unique, multi-energy, sustainable business, delivering an excellent customer experience and supporting our customers with their energy transition.

To conclude, we are taking clear and compelling action to focus on our highest growth opportunity: energy. This will simplify the Group and maximize value for our stakeholders. I believe that DCC has a powerful future.

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