Distribution and energy group DCC (LSE:DCC) proposed a 5.0% increase to its final dividend as part of a year the group described as one of strategic simplification and material capital returns to shareholders.
The board pointed to robust cash conversion and underlying earnings, with free cash flow conversion 108%, adjusted continuing earnings per share up 9.9% and group adjusted operating profit up 3.6% to £634.0 m, as the financial platform enabling the dividend rise and continued focus on DCC Energy, the group's multi-energy sales and distribution arm.
"With a simpler, more focused group, a strong financial platform, and a high‑cash‑generative Energy business, our performance keeps us on track to deliver our £830 m operating profit ambition by 2030," Donal Murphy, chief executive, said in the preliminary results.
Capital return activity completed to date comprises a £100 m on‑market buyback (2.1 million shares at an average £47.19) completed in September 2025 and a £600 million tender offer (11.6 m shares at £51.70) finalised in December 2025, representing 13.9% of share capital repurchased to 31 March, with a further £100 m expected to be returned following receipt of deferred consideration in autumn 2027.
The company also proposed to change its name to DCC Energy subject to shareholder approval at the AGM on 16 July and said it will continue targeted M&A and review the use of any future disposal proceeds in line with its capital allocation policy.
