Changes At The Top - DCC

Many people in the healthcare industry do not know the company DCC. What they should know however is that it is a very successful €5 billion business services and distribution company based in Ireland. While a small part of overall revenues, their healthcare business has revenues approaching €300 million making it very significant in the space in which it operates.

The healthcare business boasts year on year revenue growth in excess of 20% and an impressive average annual operating profit of 17% over the last 5 years. Their three business groupings within heathcare are Mobility and Rehab (which operates primarily in Europe and Australia with the Days Healthcare, Physio-Med and Metron brands), Fannin (Ireland’s leading distributor as well as a UK operation) and the Health and Beauty sector(outsourced solutions - largely nutraceuticals).
Jim Flavin CEO - founder and primary driver behind the company, has just announced his resignation over a long ongoing and hotly contested dispute concerning the sale of shares in Fyffes, a company that Jim Flavin was a board member of way back in 2000.

DCC has appointed Tommy Breen Chief executive and Michael Buckley, non-executive Chairman with immediate effect.

There is considerable speculation as to what their future strategy will be. As recent as May 19, Flavin had announced in the preliminary year end results that

As previously announced, an important part of my responsibilities as Executive Chairman is to lead a reappraisal of our overall strategic direction so that DCC is best positioned for sustainable long-term growth. This process is ongoing and I plan to put recommendations before the Board by the end of the current financial year.

There is much speculation in the investment community about what this means including an estimate that breaking up the businesses could yield in excess of a billion euros for shareholders.