DCC PLC on Tuesday reported an increase in profit for the first half of the year, as it said it plans to sell its DCC Healthcare arm to focus on the energy sector.

DCC also said it will review options for its third division, DCC Technology, within the next two years, and it will return cash from business disposals to shareholders.

Shares in DCC rose 14% to 5,660.00 pence in London on Tuesday morning. It was the second biggest gainer in the FTSE 100 index, which was down 0.9%.

The Dublin-based sales, marketing, and support services provider said DCC Energy offers the strongest growth potential and highest returns among its three division, already contributing 74% of operating profits.

As a results, DCC said has decided to sell its DCC Healthcare division, with the disposal expected to be completed in 2025.

DCC said it will evaluate strategic options for its DCC Technology division, once that unit’s value enhancing operational improvement programme is completed within the next 24 months.

Chief Executive Officer Donald Murphy said: ‘We are announcing decisive actions today to simplify our group, pursue our largest growth and returns opportunity and unlock substantial shareholder value.

‘In the energy sector we are building a unique, multi-energy, sustainable business focused on supporting our customers with their energy transition. Our strategy will deliver strong profit growth, high returns and a significant reduction in our customer’s carbon emissions.’

The surplus capital from the simplification following the DCC Healthcare sale will be returned to shareholders.

DCC also Tuesday reported pretax profit for the six months that ended September 30 of £131.0 million, a 1.0% increase from £129.7 million a year earlier.

Revenue was £9.33 billion, down 3.0% from £9.62 billion a year ago. At constant currency, revenue declined by 1.8%.

Adjusted operating profit was £259.3 million, 4.7% higher than £247.6 million a year ago.

For its DCC Energy division, adjusted operating profit was £182.7 million, 7.0% higher than £170.6 million a year ago.

Adjusted operating profit for DCC Healthcare and DCC Technology was £38.1 million and £38.5 million respectively, both down 0.4% from a year ago.

DCC said it expects ‘good operating profit growth’ for the full year.

DCC declared an interim dividend of 66.19 pence per share, up 5.0% from 63.04p a year earlier.

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