Industrial holding group DCC is eyeing a number of potential acquisitions in the healthcare sector, according to chief executive Mr Jim Flavin.
He told shareholders at the company's annual general meeting yesterday that its healthcare division was "looking at a number of interesting acquisition prospects".
Speaking afterwards, he said that the company had been working on making a number of purchases in the healthcare business for up to 18 months, while other areas of its business, including its energy division, were also looking at acquisitions.
He added that none of the targets would be major purchases, but instead would be smaller, bolt-on acquisitions of the type DCC regularly made. "We have more than enough financial capital to do anything we want to do," he added.
At the end of its financial year on March 31st, DCC had €320.6 million in cash. Of this, according to the accounts, €115.2 million was immediately available to the company, while the balance was held on term deposits. Fruit importer Fyffes is suing DCC and Mr Flavin for alleged insider trading in the High Court.
The case stems from the sale by DCC of a stake in Fyffes in early 2001.
Last month, Fyffes told its shareholders that it expected the case to go ahead late this year or early next year. Mr Flavin said yesterday that DCC had taken action to "accelerate" the hearing.
However, he would not say what action it had taken or comment any further on the case. DCC and Mr Flavin are defending it. "The board remains totally confident in the correctness of our position," he said.
In a statement to the meeting, Mr Flavin said the group was well-positioned to meet market expectations for the year to March 31st, 2005. He pointed out that its business is significantly weighted towards the second half of that period, during which it generates two-thirds of its operating profits. "DCC achieved particularly strong growth in the IT-distribution division, the healthcare division and the environmental division," he said.
