TIDMDCC
RNS Number : 0473W
DCC PLC
04 November 2014
4 November 2014
Interim Report
For the six months ended 30 September 2014
DCC plc, the international sales, marketing, distribution and
business support services group, headquartered in Dublin, today
announced its results for the six months ended 30 September
2014.
RESULTS HIGHLIGHTS
Restated**
2014 2013 % change
GBP'm GBP'm
Revenue 5,514.4 5,409.7 +1.9%
Operating profit* 73.2 68.8 +6.4%
Profit before net exceptional items, amortisation of intangible assets and tax 60.3 58.4 +3.1%
Adjusted earnings per share* 62.53 pence 58.34 pence +7.2%
Dividend per share 28.73 pence 26.12 pence +10.0%
Operating cash flow 17.9 110.1
Net debt at 30 September 272.8 216.1
* Excluding net exceptionals and amortisation of intangible assets
** All comparative numbers presented in this report have been restated to reflect the impact
of new accounting
rules for joint ventures
----------------------------------------------------------------------------------------------------------------------
Ø Revenue increased by 1.9% to GBP5.5 billion. Volumes in DCC
Energy increased by 5.3% but its revenue was broadly flat,
primarily due to the impact of lower oil prices. Excluding the
impact of acquisitions, DCC Energy's volumes were in line with last
year despite the milder weather in the current year.
Ø Revenue, excluding DCC Energy, was up 9.2%.
Ø Operating profit increased by 6.4% to GBP73.2 million.
Ø Operating profit, excluding DCC Energy, increased by 16.9%,
driven by strong growth in DCC Technology and DCC Healthcare.
Ø Recent acquisitions are performing well.
Ø The Group increased its acquisition activity, with GBP148
million committed on acquisitions year to date.
Ø Agreement reached to dispose of the Irish subsidiaries of DCC
Food & Beverage (Kelkin, Robert Roberts, Allied Logistics). The
aggregate consideration is approximately EUR75 million (GBP60
million).
Ø A seasonal increase in working capital, which should largely
reverse in the second half, reduced operating cash flow to GBP17.9
million. Working capital days remained low at 30 September 2014
(2.3 days versus 1.8 days at 30 September 2013).
Ø The interim dividend has been increased by 10.0% to 28.73
pence per share.
Ø The Group now expects that growth in operating profit and
adjusted earnings per share will be in the range of 5% - 10% over
the prior year (previously approximately 10% - 12%) reflecting the
impact of the particularly mild weather in September and
October.
Commenting on the results Tommy Breen, Chief Executive,
said:
"In the seasonally less significant first half, operating profit
of GBP73.2 million was 6.4% ahead of the prior year. DCC Energy's
operating profit was modestly behind the prior year as its business
was impacted by the very mild weather during the period
particularly in the relatively important months of April, May and
September. Operating profit, excluding DCC Energy, increased by
16.9% with each of the other four divisions reporting profit
growth.
Adjusted earnings per share increased by 7.2% to 62.53
pence.
The Board has decided to pay an interim dividend of 28.73 pence
per share, which represents a 10.0% increase on the prior year.
Assuming normal winter weather conditions in the balance of the
financial year, the Group now expects that the year to 31 March
2015 will show growth in operating profit and adjusted earnings per
share in the range of 5% - 10% over the prior year (previously
approximately 10% - 12%).
Good progress was made in the pursuit of the strategic
objectives, in particular through the acquisitions of the Esso
Express, Williams Medical and CapTech businesses and the disposal
of the Group's Irish food and beverage subsidiaries. DCC remains
very well placed to continue the development of its business in
existing and new geographies."
For reference, please contact:
Tommy Breen, Chief Executive Tel: +353 1 2799 400
Fergal O'Dwyer, Chief Financial Officer
Email:investorrelations@dcc.ie
Stephen Casey, Investor Relations Manager Website:
www.dcc.ie
Interim Management Report
For the six months ended 30 September 2014
Results
A summary of the results for the six months ended 30 September
2014 is as follows:
Restated **
2014 2013
GBP'm GBP'm % change
Revenue 5,514.4 5,409.7 +1.9%
Operating profit*
DCC Energy 31.9 33.5 -4.7%
DCC Technology 15.2 14.1 +7.7%
DCC Healthcare 15.9 12.6 +26.7%
DCC Environmental 7.1 6.3 +11.7%
DCC Food & Beverage 3.1 2.3 +33.3%
Group operating profit 73.2 68.8 +6.4%
Share of equity accounted investments 0.5 0.5
Finance costs (net) (13.4) (10.9)
Profit before net exceptionals,
amortisation of intangible assets
and tax 60.3 58.4 +3.1%
Net exceptional credit/(charge) 0.2 (5.9)
Amortisation of intangible assets (13.0) (10.0)
Profit before tax 47.5 42.5 +11.7%
Taxation (5.2) (7.2)
Profit after tax 42.3 35.3 +19.9%
Adjusted earnings per share* 62.53 pence 58.34 pence +7.2%
Dividend per share 28.73 pence 26.12 pence +10.0%
Operating cash flow 17.9 110.1
Net debt at 30 September 272.8 216.1
* Excluding net exceptionals and amortisation of intangible
assets
** All comparative numbers presented in this report
have been restated to reflect the impact of new accounting
rules for joint ventures
----------------------------------------------------------------------------- -------------
Revenue
Revenue increased by 1.9% to GBP5.5 billion.
Volumes in DCC Energy increased by 5.3% but revenues were
broadly flat primarily due to the impact of lower oil prices.
Excluding the impact of acquisitions, DCC Energy volumes were in
line with last year despite the milder weather in the current year,
with good organic growth in non-heating volumes offsetting the weak
demand for heating products, which declined by approximately
14%.
Excluding DCC Energy, Group revenue increased by 9.2%.
Approximately half of this growth was organic, primarily driven by
DCC Technology.
Operating profit performance
Group operating profit in the first half of GBP73.2 million was
6.4% ahead of the prior year.
DCC Energy's operating profit was 4.7% behind the prior year as
its business was impacted by the very mild weather during the
period which more than offset the benefit of acquisitions.
Organically, operating profit in DCC Energy was approximately 15%
behind the prior year which reflected the contrast between the
colder than normal first half last year and the much milder
conditions in the current year, particularly in the relatively
important months of April, May and September.
Excluding DCC Energy, operating profit increased by 16.9%, with
growth in each of DCC's other four divisions. Approximately two
thirds of this growth was from acquisitions.
In DCC Technology, the Group's second largest division,
operating profit was 7.7% ahead of the prior year driven by growth
in its reseller base and in the gaming console market, as well as a
first time contribution from CapTech, which was acquired in
September 2014.
DCC Healthcare traded well ahead of the prior year, benefiting
from first time contributions from Williams Medical, acquired in
May 2014, and Universal Products Manufacturing, acquired in January
2014.
DCC's two smaller divisions, DCC Environmental and DCC Food
& Beverage, traded ahead of the prior year.
Change in accounting policy and restatement
IFRS 11 Joint Arrangements has been adopted as required by IFRS
for the six months ended 30 September 2014. Whilst the impact on
the comparatives is not material, they have been restated
accordingly. Further details are set out in note 4.
Finance costs (net)
Net finance costs for the period increased to GBP13.4 million
(2013: GBP10.9 million) primarily as a result of the incremental
interest cost of the additional US Private Placement debt drawn
down in the first half. Average net debt during the period was
GBP339 million, compared to GBP361 million during the six months
ended 30 September 2013.
Profit before net exceptionals, amortisation of intangible
assets and tax
Profit before net exceptionals, amortisation of intangible
assets and tax of GBP60.3 million increased by 3.1%.
Net exceptional gain and amortisation of intangible assets
The Group recorded an exceptional gain before tax of GBP0.2
million which primarily comprised credits in respect of the
reorganisation of Group pension arrangements of GBP2.4 million, an
IAS 39 credit of GBP0.5 million and a further net receipt in
respect of ongoing litigation matters of GBP0.7 million, offset by
acquisition costs of GBP2.2 million and restructuring costs of
GBP1.3 million.
The charge for the amortisation of acquisition related
intangible assets increased to GBP13.0 million from GBP10.0
million, primarily due to the acquisitions completed in the
previous 12 months.
Taxation
The effective tax rate for the Group in the first half decreased
to 13% compared to 16% in the first half last year. The full year
tax rate in the prior year was 14%. The decrease in the current
year is driven by the reduction in the UK corporation tax rate.
Adjusted earnings per share
Adjusted earnings per share increased by 7.2% to 62.53
pence.
Interim dividend increase of 10.0%
The Board has decided to pay an interim dividend of 28.73 pence
per share, which represents a 10.0% increase on the prior year
figure of 26.12 pence per share. This dividend will be paid on 28
November 2014 to shareholders on the register at the close of
business on 14 November 2014. DCC continues to offer shareholders
the option to receive their dividends in either sterling or
euro.
Cash flow
As with its operating profit, the Group's cash flow is weighted
towards its second half. The cash flow generated by the Group and
the deployment of cash on acquisitions and dividends to
shareholders for the six months ended 30 September 2014 can be
summarised as follows:
Six months ended 30 September 2014 2013
GBP'm GBP'm
Operating profit 73.2 68.8
(Increase)/decrease in working
capital (82.5) 11.9
Depreciation and other 27.2 29.4
Operating cash flow 17.9 110.1
Capital expenditure (net) (36.3) (33.2)
Free cash flow (before interest
and tax) (18.4) 76.9
Interest paid (13.1) (8.4)
Tax paid
(13.1) (16.2)
Dividends from joint ventures 0.7 -
Free cash flow (43.9) 52.3
Acquisitions (105.5) (22.8)
Dividends (43.0) (40.4)
Exceptional items (3.6) (12.6)
Share issues 1.7 1.2
Net outflow (194.3) (22.3)
Opening net debt (87.3) (186.6)
Translation and other 8.8 (7.2)
Closing net debt (272.8) (216.1)
Operating cash flow of GBP17.9 million compares to GBP110.1
million in the comparative period and was impacted by an increase
in net working capital which should largely reverse in the second
half. The cash outflow in respect of the increase in working
capital reflects the impact of the seasonal unwind from a negative
0.6 days at 31 March 2014 to 2.3 days at 30 September 2014. The
particularly strong operating cash flow in the comparative period
had benefited from the introduction of a supply chain financing
programme within DCC Technology.
Working capital remains tightly managed with debtor days
reducing to 29.3 days at 30 September 2014 from 31.4 days at 31
March 2014 and 33.1 days at 30 September 2013. Net working capital
at 30 September 2014 was GBP74 million.
Acquisitions, divestitures and capital expenditure
In the six months ended 30 September 2014, committed acquisition
and capital expenditure amounted to GBP184.2 million, as
follows:
Acquisitions Capex Total
GBP'm GBP'm GBP'm
DCC Energy 85.4 23.5 108.9
DCC Technology 15.5 5.3 20.8
DCC Healthcare 44.6 2.8 47.4
DCC Environmental - 4.4 4.4
DCC Food & Beverage 2.4 0.3 2.7
Total 147.9 36.3 184.2
Acquisition activity
Committed acquisition expenditure in the six months ended 30
September 2014 amounted to GBP147.9 million.
DCC Energy
As previously announced on 28 August 2014, DCC reached agreement
in principle with Esso Société Anonyme Francaise ("Esso SAF") to
acquire the assets that comprise the Esso Express unmanned retail
petrol station network and the Esso Motorway concessions in France.
Completion of the acquisition is subject to, inter alia, the
conclusion of the French Works Council consultation process and EC
competition clearance. The transaction is expected to complete in
the first half of calendar 2015 after the relevant clearances have
been received and the implementation of an IT and operational
infrastructure.
The total consideration will be EUR106 million (GBP84 million)
plus stock in tank at the date of acquisition, all payable in cash
on completion.
The acquisition will comprise Esso SAF's network of 274 Esso
Express unmanned petrol stations ("Esso Express"), 48 Esso branded
motorway concessions ("Motorway Sites") and contracts to supply c.
75 Dealer Owned Dealer Operated sites (together "Esso SAF Retail").
As part of the transaction, DCC Energy will enter into a long term
branded supply agreement with Esso SAF.
Esso SAF was the pioneer of the unmanned format for retail
petrol stations in France when it converted its full service
network to the Express format c. 15 years ago. Esso Express (and
the related dealer supply business) sells c. 1.7 billion litres of
fuel annually. The Motorway Sites comprise 48 full service petrol
stations selling c. 230 million litres of fuel annually located on
motorways across France. These sites are operated under concession
contracts for fixed periods which are subject to a public
re-tendering process at the expiry of each concession. The
management of the retail operations on the Motorway Sites is
outsourced to one of the world's leading operators in the contract
catering and support services industry.
The acquired business will have annual volumes of approximately
1.9 billion litres, revenue of approximately EUR2.2 billion (GBP1.7
billion) and is expected to generate a return on invested capital
of approximately 15%.
On completion of the acquisition, DCC Energy will operate
approximately 670 retail service stations across Europe and will
supply approximately 2,000 dealer owned service stations. On a
pro-forma basis, DCC Energy's product split by volume will be 58%
road transport fuels, 16% commercial fuels, 16% heating oil and 10%
LPG.
The acquisition of Esso SAF Retail will be DCC Energy's first
acquisition in France and the second major acquisition in the
European retail petrol station market, following the acquisition of
Qstar announced in February 2014. It represents a significant
further step in DCC's strategy to build a larger presence in the
transport fuels sector and provides DCC with an excellent platform
for growth in the French market.
DCC Technology
In September, DCC Technology expanded its European footprint
with the acquisition of CapTech Distribution AB, Sweden's largest
independent technology distribution business. With revenue of
approximately GBP140 million, CapTech has a particularly strong
market position in IT hardware and AV systems. CapTech partners
with many of the world's leading technology manufacturers and brand
owners, including Acer, Asus, BenQ, Dell, Microsoft, NEC and
Samsung, and sells to a very broad range of etail, retail and
reseller customers.
DCC Healthcare
As previously announced on 3 June 2014, DCC Healthcare acquired
Williams Medical Holdings, the market leader in the supply of
medical and pharmaceutical products and related services to general
practitioners in Britain. The consideration (which was paid in cash
at completion) was based on an enterprise value of GBP45 million.
Williams Medical supplies a wide range of own and third party
branded products - medical equipment, consumables and
pharmaceuticals - to a very broad customer base of approximately
10,000 GP practices and healthcare providers in the community care
and domiciliary care sectors. The business also provides a range of
services including field based testing & calibration and repair
& maintenance of equipment. The Williams Medical business
model, similar to that in DCC Technology, is based on telesales,
e-commerce, product catalogues and key account management,
supported by high quality IT systems and cost effective logistics.
The acquisition of Williams Medical represents an excellent
strategic fit and another material step forward for DCC Healthcare,
following the acquisitions of Kent Pharma, Leonhard Lang UK and UPL
over the last two years.
Total cash spend on acquisitions in the six months ended 30
September 2014
The acquisition of Qstar, a Swedish unmanned retail petrol
station company, along with its related fuel distribution and fuel
card businesses, previously announced on 17 February 2014, was
completed on 12 May 2014 for a total consideration of GBP39.7
million. The consideration for the Esso SAF Retail transaction will
not be paid until the transaction completes, which is likely to be
in the first half of calendar 2015. Accordingly, the cash outflow
on acquisitions in the six months ended 30 September 2014,
inclusive of a net movement in deferred and contingent acquisition
consideration of GBP1.9 million, was GBP105.5 million.
The Group continues to be very active on the development front
and is in a very strong financial position to pursue a range of
acquisition and organic development opportunities.
Divestitures
As previously announced on 30 September 2014, the Group has
agreed to dispose of Robert Roberts (including Findlater Wine &
Spirits) and Kelkin to Valeo Foods, a leading Irish foods group.
The disposal is conditional on clearance from the Competition and
Consumer Protection Commission in Ireland.
In October 2014, DCC agreed to dispose of Allied Logistics to
Musgrave, a major food retailer and distributor in Ireland. The
disposal is conditional, inter alia, on clearance from the
Competition and Consumer Protection Commission in Ireland. In
addition, DCC expects to conclude the disposal of a property,
previously used by Allied Logistics, at Park West Industrial Park,
Dublin 12.
The aggregate consideration from these disposals is
approximately EUR75 million (GBP60 million) and any gain over their
combined carrying value, including goodwill, is expected to be
modest.
Capital expenditure
Net capital expenditure in the first half of GBP36.3 million
(2013: GBP33.2 million) compares to a depreciation charge of
GBP30.2 million (2013: GBP30.1 million).
Financial strength
DCC's financial position remains very strong. At 30 September
2014, the Group had net debt of GBP272.8 million and total equity
of GBP925.7 million. At the same date, DCC had cash resources, net
of overdrafts, of GBP903 million and a further GBP150 million of
undrawn committed long term debt facilities. The Group's
outstanding term debt at 30 September 2014 had an average maturity
of 7.3 years. Substantially all of the Group's debt has been raised
in the US Private Placement market with an average credit margin of
1.66% over floating Euribor/Libor.
Outlook
Following the particularly mild weather conditions in September
and October, the Group now expects that the year to 31 March 2015
will show growth in operating profit and adjusted earnings per
share in the range of 5% - 10% over the prior year (previously
approximately 10% - 12%). This guidance continues to be set against
the important assumption that there will be normal winter weather
conditions in the balance of the Group's financial year.
DCC retains a strong equity base, long term debt maturities and
significant cash resources, which leave it very well placed to
continue the development of its business in existing and new
geographies.
Operating review
DCC Energy
2014 2013 % change
Volumes (litres) 5.215bn 4.950bn +5.3%
Revenue GBP4,077.0m GBP4,093.4m -0.4%
Operating profit GBP31.9m GBP33.5m -4.7%
Operating profit in DCC Energy was 4.7% behind the prior year as
the business was impacted by the very mild weather in contrast to
the colder than normal weather in the prior year. Organically,
operating profit was approximately 15% behind the prior year but
this was partially offset by the benefit of the first time
contribution from Qstar, which has performed well since
acquisition.
The average temperatures in the UK, DCC Energy's largest market,
in April, May and September were milder than the 10 year average
and significantly milder than the prior year. DCC Energy's other
key markets similarly experienced milder weather. This continued
the trend of mild weather conditions which the business had also
encountered in the second half of the prior year and has
significantly impacted on demand for heating products.
DCC Energy sold 5.2 billion litres of product during the period,
an increase of 5.3% over the first half of the prior year, driven
by acquisitions. Despite the weak demand for heating products, with
volumes approximately 14% behind, overall volumes were in line with
the prior year on a like for like basis reflecting good organic
growth in the non-heating segments of the market.
Good progress was made in DCC's strategy to build a larger
presence in transport fuels and particularly in unmanned petrol
stations. In May, DCC completed the acquisition of Qstar, the fifth
largest retail petrol station network in Sweden. In August, DCC
announced that it had reached agreement in principle with Esso
Societé Anonyme Francaise to acquire the assets that comprise the
Esso Express unmanned retail petrol station network and the Esso
motorway concessions in France. These acquisitions will result in
DCC Energy's pro-forma transport fuels volume increasing from 50%
to 58% of total volumes.
The fuelcard business again achieved strong organic volume
growth as it continues to grow its market share in Britain.
The LPG business performed robustly, benefiting from good
organic volume growth in commercial volumes, which partially
mitigated the adverse impact of the milder weather. The LPG
business also benefited from good cost control and the achievement
of synergies from the integration of the former BP LPG business in
Britain.
On a pro-forma basis, DCC Energy will sell approximately 12.5
billion litres of product per annum across 10 countries and is well
positioned to drive further growth in its existing markets and to
continue to expand into new geographies.
DCC Technology
2014 2013 % change
Revenue GBP1,037.9m GBP959.3m +8.2%
Operating profit GBP15.2m GBP14.1m +7.7%
Operating margin 1.5% 1.5%
DCC Technology achieved operating profit growth of 7.7%,
reflecting good growth across the business.
In the UK & Ireland, the business maintained its position as
the leading distributor of IT, mobile and home electronics products
into the retail channel including high street, etail and catalogue
retail customers. This position is underpinned by its commitment to
delivering a range of value adding retail services and a continuous
emphasis on product range development. Current areas of focus in
this regard include wearable technology, consumer electronics and
small domestic appliances. In addition, in retail, the business
benefited from growth in the market for gaming consoles and
improved demand for PC products, which offset weaker markets in
tablets, DVD and audio.
The business in the UK & Ireland also achieved strong growth
in its reseller business as it won new customers and gained market
share with existing customers. Growth was achieved in the server,
security and PC product categories as the business has strengthened
its services and technical capability.
During the period, DCC Technology further integrated its UK
businesses under the Exertis brand, as part of its strategy to
offer an enhanced sales proposition to its entire customer base. In
addition, the business has commenced a programme to upgrade its IT
and logistics infrastructure to support future growth in a cost
effective manner.
In Continental Europe, the business improved its performance in
what remains a difficult market. It also benefited from the
acquisition of CapTech Distribution AB, the third largest
distributor of IT products in Sweden which has been rebranded under
the Exertis name. CapTech has an extensive retail and reseller
customer base and has a particularly strong share of the audio
visual and components product segments with a growing presence in
the computing market. It is intended to expand the product and
vendor portfolio of the business and to use the acquisition as the
foundation for a more broadly based business covering the wider
Nordic region. DCC Technology continues to seek opportunities to
expand its presence in other geographic markets.
DCC Healthcare
2014 2013* % change*
Revenue GBP236.9m GBP189.1m +25.3%
Operating profit GBP15.9m GBP11.7m +35.8%
Operating margin 6.7% 6.2%
* Adjusted to exclude Virtus Inc which was disposed of in March
2014
DCC Healthcare achieved operating profit growth of 35.8%,
benefiting from acquisitions completed in the current and prior
year, as well as strong organic profit growth in DCC Health &
Beauty Solutions.
DCC Vital, which is focused on the sales, marketing and
distribution of pharmaceuticals and medical devices in Britain and
Ireland, recorded strong operating profit growth driven by
acquisition activity. In May 2014, it acquired Williams Medical
("Williams"), the leading provider of medical supplies and services
to GP surgeries in Britain, with a growing business in supplying
healthcare providers in the evolving community and domiciliary care
sectors. Williams has performed well since acquisition and has
expanded DCC Vital's market reach, giving it the most comprehensive
sales channel coverage in the British and Irish healthcare
markets.
In Britain, DCC Vital recorded good sales growth in own licence
generic pharmaceuticals, particularly in the respiratory area, and
also in medical devices following the acquisition last year of
Leonhard Lang UK, the market leader in electrodes and diathermy
consumables. In Ireland, the trading environment remained
challenging, particularly for DCC's pharma compounding
activity.
DCC Health & Beauty Solutions, which provides outsourced
solutions to nutrition and beauty brand owners in Europe, generated
very strong operating profit growth. In nutrition, the business
benefited from the integration of its Swedish tablet manufacturing
operations into its larger facility in Britain. Sales, business
development and regulatory personnel have been retained in Sweden
and remain focused on driving continued growth in the Nordic
region. In beauty, the business benefited from the acquisition of
Universal Products Manufacturing ("UPL") in January 2014. The
process of combining UPL with DCC Health & Beauty Solutions'
existing creams and liquids activities is on track to deliver the
targeted commercial benefits and cost savings.
DCC Environmental
2014 2013 % change
Revenue GBP73.6m GBP64.9m +13.3%
Operating profit GBP7.1m GBP6.3m +11.7%
Operating margin 9.6% 9.7%
Operating profit in DCC Environmental increased by 11.7%. DCC
Environmental's significant recycling infrastructure in Britain,
particularly across the central belt of Scotland and the East
Midlands, has positioned the business well to benefit from the
improved market conditions, driven by a more favourable economic
backdrop and some consolidation within the market. The
non-hazardous business benefited from negotiating lower disposal
costs for non-recyclable waste, while the Scottish hazardous waste
business gained some significant new contracts.
DCC Food & Beverage
2014 2013 % change
Revenue GBP89.0m GBP97.1m -8.3%
Operating profit GBP3.1m GBP2.3m +33.3%
Operating margin 3.5% 2.4%
DCC Food & Beverage achieved operating profit growth of
33.3%, primarily driven by a strong performance in its wine
business in Britain and Ireland.
Forward-looking statements
This report contains some forward-looking statements that
represent DCC's expectations for its business, based on current
expectations about future events, which by their nature involve
risks and uncertainties. DCC believes that its expectations and
assumptions with respect to these forward-looking statements are
reasonable; however because they involve risk and uncertainty,
which are in some cases beyond DCC's control, actual results or
performance may differ materially from those expressed or implied
by such forward-looking statements.
Principal Risks and Uncertainties
The Board of DCC is responsible for the Group's risk management
and internal control systems, which are designed to identify,
manage and mitigate potential material risks to the achievement of
the Group's strategic and business objectives. The Board has
approved a Risk Management Policy which sets out delegated
responsibilities and procedures for the management of risk across
the Group.
The principal risks and uncertainties facing the Group in the
short to medium term, as set out on pages 18 and 19 of the 2014
Annual Report (together with the principal mitigation measures),
continue to be the principal risks and uncertainties facing the
Group for the remaining six months of the financial year.
This is not an exhaustive statement of all relevant risks and
uncertainties. Matters which are not currently known to the Board
or events which the Board considers to be of low likelihood could
emerge and give rise to material consequences. The mitigation
measures that are maintained in relation to these risks are
designed to provide a reasonable and not an absolute level of
protection against the impact of the events in question.
Presentation of results and dial-in facility
There will be a presentation of these results to analysts and
investors/fund managers in London at 9.00 am today. The slides for
this presentation can be downloaded from DCC's website, www.dcc.ie.
A dial-in facility will be available for this meeting:
Ireland: 1800 937 657
UK: 0800 279 4977
International: +44 (0) 20 3427 1900
Passcode: 982 1763
This report and further information on DCC is available at
www.dcc.ie
Group Income Statement
Restated Restated
Unaudited 6 months ended Unaudited 6 months ended Audited year ended
30 September 2014 30 September 2013 31 March 2014
----------------------------------------------------------- ------------------------------------------------ --------------------------------------------
Pre exceptionals Exceptionals Pre exceptionals Pre
(note 7) Total Exceptionals Total exceptionals Exceptionals Total
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 6 5,514,356 - 5,514,356 5,409,676 - 5,409,676 11,210,832 - 11,210,832
Cost of sales (5,117,593) - (5,117,593) (5,032,301) - (5,032,301) (10,412,238) - (10,412,238)
------------------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- -------------
Gross profit 396,763 - 396,763 377,375 - 377,375 798,594 - 798,594
Administration
expenses (134,169) - (134,169) (131,783) - (131,783) (255,305) - (255,305)
Selling and distribution
expenses (194,532) - (194,532) (179,209) - (179,209) (353,012) - (353,012)
Other operating
income 7,738 3,583 11,321 6,349 5,730 12,079 19,833 31,101 50,934
Other operating
expenses (2,557) (3,835) (6,392) (3,887) (7,296) (11,183) (2,844) (44,384) (47,228)
------------------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- -------------
Operating profit before
amortisation of
intangible
assets 73,243 (252) 72,991 68,845 (1,566) 67,279 207,266 (13,283) 193,983
Amortisation of
intangible
assets (13,009) - (13,009) (10,038) - (10,038) (20,416) - (20,416)
------------------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- -------------
Operating profit 6 60,234 (252) 59,982 58,807 (1,566) 57,241 186,850 (13,283) 173,567
Finance costs (29,825) - (29,825) (27,601) (4,336) (31,937) (50,824) (2,128) (52,952)
Finance income 16,439 471 16,910 16,695 - 16,695 29,413 - 29,413
Share of equity
accounted
investments 401 - 401 481 - 481 997 - 997
------------------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- -------------
Profit before
tax 47,249 219 47,468 48,382 (5,902) 42,480 166,436 (15,411) 151,025
Income tax
expense 8 (5,173) - (5,173) (7,211) - (7,211) (21,827) (5,255) (27,082)
------------------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- -------------
Profit after tax for
the financial period 42,076 219 42,295 41,171 (5,902) 35,269 144,609 (20,666) 123,943
------------------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- -------------
Profit
attributable
to:
Owners of the Parent 42,310 35,019 121,234
Non-controlling
interests (15) 250 2,709
------------ ------------ -------------
42,295 35,269 123,943
------------ ------------ -------------
Earnings per ordinary share
Basic 9 50.40p 41.82p 144.70p
------------ ------------ -------------
Diluted 9 50.03p 41.59p 143.90p
------------ ------------ -------------
Adjusted earnings per ordinary
share
Basic 9 62.53p 58.34p 191.20p
------------ ------------ -------------
Diluted 9 62.07p 58.02p 190.14p
------------ ------------ -------------
Group Statement of Comprehensive Income
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Sept. 30 Sept. 31 March
2014 2013 2014
GBP'000 GBP'000 GBP'000
Profit for the period 42,295 35,269 123,943
Other comprehensive income:
Items that may be reclassified subsequently
to profit or loss
Currency translation:
- arising in the period (7,903) (4,019) (7,575)
- recycled to the Income Statement
on disposal of subsidiary - - 324
Movements relating to cash flow
hedges (4,004) (2,766) (3,455)
Movement in deferred tax liability
on cash flow hedges 20 198 288
------------ ------------ -----------
(11,887) (6,587) (10,418)
------------ ------------ -----------
Items that will not be reclassified
to profit or loss
Group defined benefit pension obligations:
- actuarial loss (12,129) (1,309) (835)
- movement in deferred tax asset 1,443 164 152
------------ ------------ -----------
(10,686) (1,145) (683)
------------ ------------ -----------
Other comprehensive income for the
period, net of tax (22,573) (7,732) (11,101)
------------ ------------ -----------
Total comprehensive income for
the period 19,722 27,537 112,842
------------ ------------ -----------
Attributable to:
Owners of the Parent 20,034 27,305 110,189
Non-controlling interests (312) 232 2,653
------------ ------------ -----------
19,722 27,537 112,842
------------ ------------ -----------
Group Balance Sheet
Restated Restated
Unaudited Unaudited Audited
30 Sept. 30 Sept. 31 March
2014 2013 2014
Notes GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 483,919 439,368 464,864
Intangible assets 784,608 754,217 742,516
Equity accounted investments 5,305 6,294 6,124
Deferred income tax assets 10,431 9,376 11,251
Derivative financial instruments 95,709 73,548 56,240
1,379,972 1,282,803 1,280,995
------------ ------------ -----------
Current assets
Inventories 399,395 474,477 501,408
Trade and other receivables 938,228 1,033,283 957,821
Derivative financial instruments 5,747 8,846 1,221
Cash and cash equivalents 1,075,909 875,152 962,139
------------ ------------ -----------
2,419,279 2,391,758 2,422,589
Assets classified as held for
sale 16 57,624 - -
2,476,903 2,391,758 2,422,589
Total assets 3,856,875 3,674,561 3,703,584
------------ ------------ -----------
EQUITY
Capital and reserves attributable to owners
of the Parent
Share capital 14,688 14,688 14,688
Share premium 83,032 83,032 83,032
Share based payment reserve 11 11,649 10,116 10,630
Cash flow hedge reserve 11 (7,828) (3,245) (3,844)
Foreign currency translation reserve 11 42,216 53,016 49,822
Other reserves 11 932 932 932
Retained earnings 776,509 720,347 786,158
------------ ------------ -----------
921,198 878,886 941,418
Non-controlling interests 4,525 2,414 4,837
------------ ------------ -----------
Total equity 925,723 881,300 946,255
------------ ------------ -----------
LIABILITIES
Non-current liabilities
Borrowings 1,209,269 796,322 725,831
Derivative financial instruments 16,177 41,236 45,636
Deferred income tax liabilities 26,892 30,136 27,518
Retirement benefit obligations 13 15,053 18,067 16,033
Provisions for liabilities and
charges 36,213 17,859 24,157
Deferred and contingent acquisition
consideration 40,285 51,149 36,949
Government grants 1,461 1,394 1,323
------------ ------------ -----------
1,345,350 956,163 877,447
------------ ------------ -----------
Current liabilities
Trade and other payables 1,287,277 1,456,506 1,489,054
Current income tax liabilities 25,057 23,566 32,244
Borrowings 218,222 321,193 316,726
Derivative financial instruments 7,992 14,918 18,699
Provisions for liabilities and
charges 5,335 4,330 6,785
Deferred and contingent acquisition
consideration 10,389 16,585 16,374
------------ ------------ -----------
1,554,272 1,837,098 1,879,882
Liabilities associated with assets
classified as held for sale 16 31,530 - -
1,585,802 1,837,098 1,879,882
Total liabilities 2,931,152 2,793,261 2,757,329
------------ ------------ -----------
Total equity and liabilities 3,856,875 3,674,561 3,703,584
------------ ------------ -----------
Net debt included above (including
cash attributable to assets held
for sale) 12 (272,828) (216,123) (87,292)
------------ ------------ -----------
Group Statement of Changes in Equity
For the six Attributable to owners of the
months ended Parent
30
September 2014
----------------------------------------------------------------------------------
Other Non-
Share Share Retained reserves controlling Total
capital premium earnings (note Total interests equity
11)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At beginning
of period 14,688 83,032 786,158 57,540 941,418 4,837 946,255
Profit for the
period - - 42,310 - 42,310 (15) 42,295
Currency
translation - - - (7,606) (7,606) (297) (7,903)
Group defined
benefit
pension
obligations:
- actuarial
loss - - (12,129) - (12,129) - (12,129)
- movement in
deferred tax
asset - - 1,443 - 1,443 - 1,443
Movements
relating to
cash
flow hedges - - - (4,004) (4,004) - (4,004)
Movement in
deferred tax
liability
on cash flow
hedges - - - 20 20 - 20
Total
comprehensive
income - - 31,624 (11,590) 20,034 (312) 19,722
Re-issue of
treasury
shares - - 1,717 - 1,717 - 1,717
Share based
payment - - - 1,019 ,019 - 1,019
Dividends - - (42,990) - (42,990) - (42,990)
At end of
period 14,688 83,032 776,509 46,969 921,198 4,525 925,723
--------------- ------------------ --------------- ------------- ------------- ---------------- -------------
For the six Attributable to owners of the
months ended Parent
30
September 2013
---------------------------------------------------------------------------------
Other Non-
Share Share Retained reserves controlling Total
capital premium earnings (note Total interests equity
11)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At beginning
of period 14,688 83,032 725,514 66,717 889,951 2,391 892,342
Profit for the
period - - 35,019 - 35,019 250 35,269
Currency
translation - - - (4,001) (4,001) (18) (4,019)
Group defined
benefit
pension
obligations:
- actuarial
loss - - (1,309) - (1,309) - (1,309)
- movement in
deferred tax
asset - - 164 - 164 - 164
Movements
relating to
cash
flow hedges - - - (2,766) (2,766) - (2,766)
Movement in
deferred tax
liability
on cash flow
hedges - - - 198 198 - 198
Total
comprehensive
income - - 33,874 (6,569) 27,305 232 27,537
Re-issue of
treasury
shares - - 1,179 - 1,179 - 1,179
Share based
payment - - - 671 671 - 671
Dividends - - (40,220) - (40,220) (209) (40,429)
At end of
period 14,688 83,032 720,347 60,819 878,886 2,414 881,300
--------------- ------------------ --------------- ------------- ------------ ---------------- ------------
For the year ended 31 Attributable to owners of the
March Parent
2014
------------------------------------------------------------------------------------
Other Non-
Share Share Retained reserves controlling Total
capital premium earnings (note Total interests equity
11)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At beginning of period 14,688 83,032 725,514 66,717 889,951 2,391 892,342
Profit for the period - - 121,234 - 121,234 2,709 123,943
Currency translation:
- arising in the period - - - (7,519) (7,519) (56) (7,575)
- recycled to the Income Statement
on disposal of subsidiary - - - 324 324 - 324
Group defined benefit
pension
obligations:
- actuarial loss - - (835) - (835) - (835)
- movement in deferred tax
asset - - 152 - 152 - 152
Movements relating to cash
flow hedges - - - (3,455) (3,455) - (3,455)
Movement in deferred tax
liability
on cash flow hedges - - - 288 288 - 288
Total comprehensive income - - 120,551 (10,362) 110,189 2,653 112,842
Re-issue of treasury
shares - - 1,981 - 1,981 - 1,981
Share based payment - - 1,185 1,185 - 1,185
Dividends - - (61,888) - (61,888) (207) (62,095)
At end of period 14,688 83,032 786,158 57,540 941,418 4,837 946,255
----------------- ------------------ --------------- ------------- ------------- ---------------- -------------
Group Cash Flow Statement
Restated Restated
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Sept. 30 Sept. 31 March
2014 2013 2014
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit for the period 42,295 35,269 123,943
Add back non-operating expenses
- tax 5,173 7,211 27,082
- share of equity accounted investments (401) (481) (997)
- net operating exceptionals 252 1,566 13,283
- net finance costs 12,915 15,242 23,539
---------- ---------- ----------
Group operating profit before
exceptionals 60,234 58,807 186,850
Share-based payment 1,019 671 1,185
Depreciation 30,222 30,097 55,402
Amortisation of intangible assets 13,009 10,038 20,416
Profit on disposal of property,
plant and equipment (643) (432) (1,783)
Amortisation of government grants (179) (194) (383)
Other (3,342) (782) (1,779)
(Increase)/decrease in working
capital (82,462) 11,871 86,955
---------- ---------- ----------
Cash generated from operations
before exceptionals 17,858 110,076 346,863
Exceptionals (3,631) (12,625) (21,097)
---------- ---------- ----------
Cash generated from operations 14,227 97,451 325,766
Interest paid (27,513) (24,828) (50,011)
Income tax paid (13,066) (16,197) (33,033)
---------- ---------- ----------
Net cash flows from operating
activities (26,352) 56,426 242,722
---------- ---------- ----------
Investing activities
Inflows
Proceeds from disposal of property,
plant and equipment 3,249 1,174 8,579
Government grants received 52 - 100
Dividends received from equity
accounted investments 647 - 633
Disposal of subsidiaries - - 11,073
Interest received 14,383 16,462 30,210
18,331 17,636 50,595
---------- ---------- ----------
Outflows
Purchase of property, plant and
equipment (39,588) (34,374) (78,557)
Acquisition of subsidiaries (97,260) (15,720) (39,876)
Deferred and contingent acquisition
consideration paid (8,215) (7,046) (10,196)
---------- ---------- ----------
(145,063) (57,140) (128,629)
---------- ---------- ----------
Net cash flows from investing
activities (126,732) (39,504) (78,034)
---------- ---------- ----------
Financing activities
Inflows
Re-issue of treasury shares 1,717 1,179 1,981
Increase in interest-bearing loans
and borrowings 448,989 341,705 342,950
Net cash inflow on derivative
financial instruments - - 4,554
Increase in finance lease liabilities - - 324
450,706 342,884 349,809
---------- ---------- ----------
Outflows
Repayment of interest-bearing
loans and borrowings (124,305) - (60,364)
Net cash outflow on derivative (13,869) - -
financial instruments
Repayment of finance lease liabilities (551) (823) (499)
Dividends paid to owners of the
Parent (42,990) (40,220) (61,888)
Dividends paid to non-controlling
interests - (209) (207)
---------- ---------- ----------
(181,715) (41,252) (122,958)
---------- ---------- ----------
Net cash flows from financing
activities 268,991 301,632 226,851
---------- ---------- ----------
Change in cash and cash equivalents 115,907 318,554 391,539
Translation adjustment (26,222) (4,135) (8,355)
Cash and cash equivalents at beginning
of period 813,561 430,377 430,377
---------- ---------- ----------
Cash and cash equivalents at end
of period 903,246 744,796 813,561
---------- ---------- ----------
Cash and cash equivalents consists
of:
Cash and short term bank deposits 1,075,909 875,152 962,139
Overdrafts (174,130) (130,356) (148,578)
Cash and short term deposits attributable 1,467 - -
to assets held for sale
903,246 744,796 813,561
---------- ---------- ----------
Notes to the Group Condensed Interim Financial Statements
for the six months ended 30 September 2014
1. Basis of Preparation
The Group Condensed Interim Financial Statements which should be
read in conjunction with the annual financial statements for the
year ended 31 March 2014 have been prepared in accordance with the
Transparency (Directive 2004/109/EC) Regulations 2007, the related
Transparency rules of the Irish Financial Services Regulatory
Authority and in accordance with International Accounting Standard
34, Interim Financial Reporting (IAS 34) as adopted by the EU.
The preparation of the interim financial statements requires
management to make judgements, estimates and assumptions that
affect the application of policies and reported amounts of certain
assets, liabilities, revenues and expenses together with disclosure
of contingent assets and liabilities. Estimates and underlying
assumptions are reviewed on an ongoing basis.
These condensed interim financial statements for the six months
ended 30 September 2014 and the comparative figures for the six
months ended 30 September 2013 are unaudited and have not been
reviewed by the Auditors. The summary financial statements for the
year ended 31 March 2014 represent a restated (as detailed below),
abbreviated version of the Group's full accounts for that year, on
which the Auditors issued an unqualified audit report and which
have been filed with the Registrar of Companies.
2. Accounting Policies
The accounting policies and methods of computation adopted in
the preparation of the Group Condensed Interim Financial Statements
are consistent with those applied in the Annual Report for the
financial year ended 31 March 2014 and are described in those
financial statements on pages 128 to 139.
The following standard was mandatory for the first time for the
financial year beginning 1 April 2014:
-- IFRS 11 Joint Arrangements. Under IAS 31 Interests in Joint
Ventures, the Group's net interests in its joint arrangements were
classified as joint ventures and the Group's share of assets,
liabilities, revenue, income and expense were proportionately
consolidated. IFRS 11 makes equity accounting mandatory for
participants in joint ventures. The change to equity accounting had
no impact on the Group's profit after tax but impacted each line
item in the Consolidated Income Statement. Similarly, the
Consolidated Balance Sheet was impacted on a line by line basis but
net assets remained unchanged.
As required by IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors, the nature and effect of changes arising as a
result of the adoption of IFRS 11 on the Consolidated Income
Statement, Consolidated Statement of Cash Flows and Consolidated
Balance Sheet are disclosed in note 4. Under the transitional
provisions of IFRS 11 the Group is not required to disclose the
impact that the adoption of IFRS 11 has had on the current
period.
There are a number of other amendments to existing standards
that were effective for the Group for the first time from 1 April
2014. None of these had a material impact on the Group.
3. Going Concern
The Directors have a reasonable expectation that the Group and
Company have adequate resources to continue in operational
existence for the foreseeable future, a period of not less than
twelve months from the date of this report. For this reason, the
Directors continue to adopt the going concern basis in preparing
the condensed interim financial statements.
4. Adoption of New Accounting Standards
As noted under Accounting Policies above, the Group adopted IFRS
11 Joint Arrangements on 1 April 2014. As required by IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors,
the financial impact of the adoption of this standard is outlined
below.
Impact on Group Income Statement
6 months ended 30 Sept. Year ended 31 March
2013 2014
Change Change
As in As in
reported accounting Restated reported accounting Restated
Unaudited policy Unaudited Audited policy Unaudited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 5,419,907 (10,231) 5,409,676 11,231,666 (20,834) 11,210,832
------------- ---------------- ------------------ ---------- ---------------- --------------
Operating
profit before
exceptional
items and
amortisation
of
intangible
assets 69,355 (510) 68,845 208,403 (1,137) 207,266
Net operating
exceptionals (1,566) - (1,566) (13,283) - (13,283)
Amortisation
of intangible
assets (10,038) - (10,038) (20,416) - (20,416)
------------- ---------------- ------------------ ---------- ---------------- --------------
Operating
profit 57,751 (510) 57,241 174,704 (1,137) 173,567
Finance costs
(net) (15,242) - (15,242) (23,539) - (23,539)
Share of
equity
accounted
investments 4 477 481 33 964 997
------------- ---------------- ------------------ ---------- ---------------- --------------
Profit before
tax 42,513 (33) 42,480 151,198 (173) 151,025
Income tax
expense (7,244) 33 (7,211) (27,255) 173 (27,082)
------------- ---------------- ------------------ ---------- ---------------- --------------
Profit after
tax for
the period 35,269 - 35,269 123,943 - 123,943
------------- ---------------- ------------------ ---------- ---------------- --------------
Earnings per
ordinary
share
Basic 41.82p - 41.82p 144.70p - 144.70p
------------- ---------------- ------------------ ---------- ---------------- --------------
Diluted 41.59p - 41.59p 143.90p - 143.90p
------------- ---------------- ------------------ ---------- ---------------- --------------
Adjusted earnings per
ordinary share
Basic 58.34p - 58.34p 191.20p - 191.20p
------------- ---------------- ------------------ ---------- ---------------- --------------
Diluted 58.02p - 58.02p 190.14p - 190.14p
------------- ---------------- ------------------ ---------- ---------------- --------------
Impact on
Group Balance
Sheet
As at 30 Sept. 2013 As at 31 March 2014
Change Change
As in As in
reported accounting Restated reported accounting Restated
Unaudited policy Unaudited Audited policy Unaudited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
ASSETS
Non-current
assets 1,282,766 (6,257) 1,276,509 1,280,990 (6,119) 1,274,871
Equity
accounted
investments 802 5,492 6,294 824 5,300 6,124
Current assets 2,394,827 (3,069) 2,391,758 2,425,785 (3,196) 2,422,589
------------- ---------------- ------------------ ---------- ---------------- --------------
Total assets 3,678,395 (3,834) 3,674,561 3,707,599 (4,015) 3,703,584
------------- ---------------- ------------------ ---------- ---------------- --------------
EQUITY
Total equity 881,300 - 881,300 946,255 - 946,255
------------- ---------------- ------------------ ---------- ---------------- --------------
LIABILITIES
Non-current
liabilities 956,171 (8) 956,163 877,455 (8) 877,447
Current
liabilities 1,840,924 (3,826) 1,837,098 1,883,889 (4,007) 1,879,882
------------- ---------------- ------------------ ---------- ---------------- --------------
Total
liabilities 2,797,095 (3,834) 2,793,261 2,761,344 (4,015) 2,757,329
------------- ---------------- ------------------ ---------- ---------------- --------------
Total equity
and
liabilities 3,678,395 (3,834) 3,674,561 3,707,599 (4,015) 3,703,584
------------- ---------------- ------------------ ---------- ---------------- --------------
Net debt
included
above (215,633) (490) (216,123) (86,287) (1,005) (87,292)
------------- ---------------- ------------------ ---------- ---------------- --------------
Impact on Group Cash Flow Statement
6 months ended 30 Sept. Year ended 31 March
2013 2014
--------------------------------------------
Change Change
As in As in
reported accounting Restated reported accounting Restated
Unaudited policy Unaudited Audited policy Unaudited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Net cash flows
from
operating
activities 56,622 (196) 56,426 244,363 (1,641) 242,722
Net cash flows
from
investing
activities (39,904) 400 (39,504) (79,346) 1,312 (78,034)
Net cash flows
from
financing
activities 301,632 - 301,632 226,851 - 226,851
---------- ---------- ------------------ ---------- ----------- --------------
Change in cash
and cash
equivalents 318,350 204 318,554 391,868 (329) 391,539
Translation
adjustment (4,138) 3 (4,135) (8,376) 21 (8,355)
Opening cash
and cash
equivalents 431,074 (697) 430,377 431,074 (697) 430,377
Closing cash
and cash
equivalents 745,286 (490) 744,796 814,566 (1,005) 813,561
---------- ---------- ------------------ ---------- ----------- --------------
5. Reporting Currency
The Group's financial statements are prepared in sterling,
denoted by the symbol GBP. The exchange rates used in translating
non-sterling Income Statement and Balance Sheet amounts into
sterling were as follows:
Average rate Closing rate
------------------------------------------------------- ------------------------------------------------ --------
6 months 6 months Year 6 months 6 months Year
ended Ended ended ended ended ended
30 Sept. 30 Sept. 31 March 30 Sept. 30 Sept. 31 March
2014 2013 2014 2014 2013 2014
StgGBP1= StgGBP1= StgGBP1= StgGBP1= StgGBP1= StgGBP1=
Euro 1.2361 1.1700 1.1847 1.2865 1.1960 1.2074
Danish Krone 9.2234 8.7251 8.8386 9.5756 8.9200 9.0146
Swedish Krona 11.2682 10.0853 10.3362 11.7670 10.3546 10.8045
Norwegian Krone 10.2270 9.0815 9.5103 10.4451 9.7046 9.9674
6. Segmental Reporting
DCC is an international sales, marketing, distribution and
business support services group headquartered in Dublin, Ireland.
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision maker.
The chief operating decision maker has been identified as Mr. Tommy
Breen, Chief Executive and his executive management team. The Group
is organised into five operating segments: DCC Energy, DCC
Technology, DCC Healthcare, DCC Environmental and DCC Food &
Beverage.
DCC Energy markets and sells oil products and services for
transport, commercial/industrial, marine, aviation and home heating
use in Britain, Ireland and Continental Europe. DCC Energy also
owns, operates and supplies unmanned and manned retail service
stations in Britain, Ireland and Continental Europe. DCC Energy
markets and sells liquefied petroleum gas for similar uses in
Britain, Ireland and Continental Europe.
DCC Technology sells, markets and distributes a broad range of
consumer and SME focussed technology products in Europe.
DCC Healthcare sells, markets and distributes pharmaceutical and
medical devices in British and Irish markets. DCC Healthcare also
provides outsourced product development, manufacturing, packaging
and other services to health and beauty brand owners in Europe.
DCC Environmental provides a broad range of waste management and
recycling services to the industrial, commercial, construction and
public sectors in Britain and Ireland.
DCC Food & Beverage markets and sells food and beverages in
Ireland and wine in Britain. DCC Food & Beverage is also a
provider of frozen food supply chain services in Ireland.
Net finance costs and income tax are managed on a centralised basis
and therefore these items are not allocated between operating segments
for the purpose of presenting information to the chief operating
decision maker and accordingly are not included in the detailed segmental
analysis below.
The consolidated total assets of the Group as at 30 September 2014
of GBP3.857 billion were not materially different from the equivalent
figure at 31 March 2014 and therefore the related segmental disclosure
note has been omitted in accordance with IAS 34 Interim Financial
Reporting.
Intersegment revenue is not material and thus not subject to separate
disclosure.
An analysis of the Group's performance by segment and geographic
location is as follows:
(a) By operating segment
Unaudited six months ended 30 September 2014
------------------------------------------------------------------------
DCC DCC DCC DCC DCC Food
Energy Technology Healthcare Environmental & Beverage Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue 4,076,971 1,037,877 236,922 73,562 89,024 5,514,356
--------- ---------- -------------- ------- ---------------- ---------------
Operating profit* 31,934 15,204 15,902 7,058 3,145 73,243
Amortisation of intangible
assets (7,450) (1,402) (3,074) (394) (689) (13,009)
Net operating exceptionals
(note 7) (1,788) (965) 308 (31) 2,224 (252)
--------- ---------- -------------- ------- ---------------- ---------------
Operating profit 22,696 12,837 13,136 6,633 4,680 59,982
--------- ---------- -------------- ------- ---------------- ---------------
Unaudited six months ended 30 September 2013
(restated)
--------------------------------------------------------------------------
DCC DCC DCC DCC DCC Food
Energy Technology Healthcare Environmental & Beverage Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue 4,093,358 959,257 195,088 64,908 97,065 5,409,676
--------- ----------- --------------- ------- ------------------ --------------
Operating profit* 33,502 14,115 12,553 6,316 2,359 68,845
Amortisation of intangible
assets (6,823) (990) (1,167) (673) (385) (10,038)
Net operating exceptionals
(note 7) 455 (689) (1,332) - - (1,566)
--------- ----------- --------------- ------- ------------------ --------------
Operating profit 27,134 12,436 10,054 5,643 1,974 57,241
--------- ----------- --------------- ------- ------------------ --------------
Audited year ended 31 March 2014 (restated)
---------------------------------------------------------------------------------------
DCC DCC DCC DCC DCC Food
Energy Technology Healthcare Environmental & Beverage Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue 8,243,645 2,263,973 406,510 130,635 166,069 11,210,832
--------- ---------- --------------- ------- ---------------- -------------
Operating profit* 110,467 48,092 30,392 11,746 6,569 207,266
Amortisation of intangible
assets (13,686) (1,974) (2,711) (1,285) (760) (20,416)
Net operating exceptionals
(note 7) (4,219) (11,371) 3,285 3,743 (4,721) (13,283)
--------- ---------- --------------- ------- ---------------- -------------
Operating profit 92,562 34,747 30,966 14,204 1,088 173,567
--------- ---------- --------------- ------- ---------------- -------------
* Operating profit before amortisation of intangible assets and
net operating exceptionals
(b) By geography
Unaudited six months ended 30
September 2014
-----------------------------------
Republic of Rest of
UK Ireland the World Total
GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue 4,108,866 394,232 1,011,258 5,514,356
--------------- ------- --------------- ----------------
Operating profit* 57,040 3,700 12,503 73,243
Amortisation of intangible assets (7,784) (1,279) (3,946) (13,009)
Net operating exceptionals
(note 7) (1,487) 1,885 (650) (252)
--------------- ------- --------------- ----------------
Operating profit 47,769 4,306 7,907 59,982
--------------- ------- --------------- ----------------
Unaudited six months ended 30
September 2013 (restated)
------------------------------
Republic of Rest of
UK Ireland the World Total
GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue 4,069,259 438,015 902,402 5,409,676
---------------- ------- -------------- ----------------
Operating profit* 56,243 4,122 8,480 68,845
Amortisation of intangible assets (5,674) (1,076) (3,288) (10,038)
Net operating exceptionals
(note 7) (5,289) 556 3,167 (1,566)
---------------- ------- -------------- ----------------
Operating profit 45,280 3,602 8,359 57,241
---------------- ------- -------------- ----------------
Audited year ended 31 March
2014 (restated)
------------------------------------------
Republic of Rest of
UK Ireland the World Total
GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue 8,386,565 889,804 1,934,463 11,210,832
-------------- -------- -------------- ----------------
Operating profit* 158,735 22,062 26,469 207,266
Amortisation of intangible assets (11,721) (2,075) (6,620) (20,416)
Net operating exceptionals
(note 7) 2,812 (13,963) (2,132) (13,283)
-------------- -------- -------------- ----------------
Operating profit 149,826 6,024 17,717 173,567
-------------- -------- -------------- ----------------
* Operating profit before amortisation of intangible assets and
net operating exceptionals
7. Exceptional Items
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Sept. 30 Sept. 31 March
2014 2013 2014
GBP'000 GBP'000 GBP'000
Restructuring costs (1,353) (4,514) (19,720)
Impairment of goodwill - - (13,923)
Acquisition and related costs (2,243) (2,182) (5,638)
Impairment of property, plant and
equipment - - (550)
Adjustments to deferred and contingent
acquisition consideration 202 4,274 16,165
Net profit on disposal of subsidiaries - - 5,294
Restructuring of Group defined benefit
pension schemes 2,424 1,456 1,435
Litigation and other operating exceptional
items 718 (600) 3,654
Operating exceptional items (252) (1,566) (13,283)
Mark to market gains (included in
interest) 471 (4,336) (2,128)
Tax on Taiwanese legal claim - - (5,255)
Net exceptional items after taxation 219 (5,902) (20,666)
Non-controlling interest share of
profit on disposal of subsidiary - - (2,055)
---------------- ---------------- ---------
Net exceptional items 219 (5,902) (22,721)
---------------- ---------------- ---------
The Group recorded a net exceptional credit of GBP0.219 million
during the six months ended 30 September 2014.
The Group incurred an exceptional charge of GBP1.353 million in
relation to additional restructuring incurred in both acquired and
existing businesses.
Acquisition and related costs include the professional and tax
costs (such as stamp duty) relating to the evaluation and
completion of acquisition opportunities. During the first half
these costs amounted to GBP2.243 million.
Deferred and contingent consideration is measured at fair value
at the time of the business combination with any subsequent changes
to the liability being recognised in the Income Statement. The net
reduction in deferred and contingent consideration payable by the
Group amounted to GBP0.202 million in the period.
Restructuring of certain of the Group's pension arrangements
during the period gave rise to an exceptional gain of GBP2.424
million.
The Group recorded a net receipt in respect of ongoing
litigation matters amounting to GBP0.718 million.
Most of the Group's debt has been raised in the US Private
Placement debt market and swapped, using long term interest,
currency and cross currency derivatives to floating rate sterling
and euro. Under IAS 39, after marking to market swaps designated as
fair value hedges and the related fixed rate debt, the level of
ineffectiveness is taken to the Income Statement. Normal volatility
in capital markets has given rise to a net mark to market gain of
GBP0.471 million.
8. Taxation
The taxation expense for the interim period is based on
management's best estimate of the weighted average tax rate that is
expected to be applicable for the full year. The Group's effective
tax rate for the period was 13.0% (six months ended 30 September
2013: 16.0% and year ended 31 March 2014: 14.0%). The decrease in
the Group's effective tax rate in the current year is primarily
driven by the reduction in the UK corporation tax rate.
9. Earnings per Ordinary Share and Adjusted Earnings per Ordinary Share
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Sept. 30 Sept. 31 March
2014 2013 2014
GBP'000 GBP'000 GBP'000
Profit attributable to owners
of the Parent 42,310 35,019 121,234
Amortisation of intangible assets
after tax 10,401 7,930 16,237
Exceptionals after tax (note 7) (219) 5,902 22,721
---------- ---------- ---------
Adjusted profit after taxation
and non-controlling interests 52,492 48,851 160,192
---------- ---------- ---------
Basic earnings per ordinary share pence pence pence
Basic earnings per ordinary share 50.40p 41.82p 144.70p
---------- ---------- ---------
Adjusted basic earnings per ordinary
share 62.53p 58.34p 191.20p
---------- ---------- ---------
Weighted average number of ordinary
shares in
issue (thousands) 83,948 83,742 83,781
---------- ---------- ---------
Diluted earnings per ordinary pence pence pence
share
Diluted earnings per ordinary
share 50.03p 41.59p 143.90p
---------- ---------- ---------
Adjusted diluted earnings per
ordinary share 62.07p 58.02p 190.14p
---------- ---------- ---------
Diluted weighted average number
of ordinary shares in issue (thousands) 84,565 84,194 84,250
---------- ---------- ---------
The adjusted figures for earnings per share are intended to
demonstrate the results of the Group after eliminating the impact
of amortisation of intangible assets and net exceptionals.
10. Dividends
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Sept. 30 Sept. 31 March
2014 2013 2014
GBP'000 GBP'000 GBP'000
Interim - paid 26.12 pence per
share on 29 November 2013 - - 22,167
Final - paid 50.73 pence per share
on 24 July 2014
(paid 56.20 cent per share on
25 July 2013) 42,990 40,220 39,721
42,990 40,220 61,888
------------------------- ------------------------- ---------
On 3 November 2014, the Board approved an interim dividend of
28.73 pence per share (GBP24.138 million). These condensed
consolidated interim financial statements do not reflect this
dividend payable. The 2012/2013 final dividend which was paid
during the year ended 31 March 2014 was declared in euro and has
been translated to sterling using the average sterling/euro
exchange rate for the year ended 31 March 2014.
11. Other Reserves
For the six months ended Foreign
30 September 2014
Share based Cash flow currency Total
payment hedge translation Other other
reserve reserve reserve reserves reserves
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At beginning of period 10,630 (3,844) 49,822 932 57,540
Currency translation - - (7,606) - (7,606)
Movements relating to cash
flow hedges - (4,004) - - (4,004)
Movement in deferred tax liability
on cash flow hedges - 20 - - 20
Share based payment 1,019 - - - 1,019
At end of period 11,649 (7,828) 42,216 932 46,969
--------------------- --------- ----------- -------- --------
For the six months ended Foreign
30 September 2013
Share Cash flow currency Total
based
payment hedge translation Other other
reserve reserve reserve reserves reserves
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At beginning of period 9,445 (677) 57,017 932 66,717
Currency translation - - (4,001) - (4,001)
Movements relating to cash
flow hedges - (2,766) - - (2,766)
Movement in deferred tax liability
on cash flow hedges - 198 - - 198
Share based payment 671 - - - 671
At end of period 10,116 (3,245) 53,016 932 60,819
--------------------- --------- ----------- -------- --------
For the year ended 31 March Foreign
2014
Share Cash flow currency Total
based
payment hedge translation Other other
reserve reserve reserve reserves reserves
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At beginning of period 9,445 (677) 57,017 932 66,717
Currency translation
- arising in the year - - (7,519) - (7,519)
- recycled to the Income Statement
on disposal of subsidiary - - 324 - 324
Movements relating to cash
flow hedges - (3,455) - - (3,455)
Movement in deferred tax liability
on cash flow hedges - 288 - - 288
Share based payment 1,185 - - - 1,185
At end of period 10,630 (3,844) 49,822 932 57,540
--------------------- --------- ----------- -------- --------
12. Analysis of Net Debt
Restated Restated
Unaudited Unaudited Audited
30 Sept. 30 Sept. 31 March
2014 2013 2014
GBP'000 GBP'000 GBP'000
Non-current assets:
Derivative financial instruments 95,709 73,548 56,240
------------ ---------- -----------------
Current assets:
Derivative financial instruments 5,747 8,846 1,221
Cash and cash equivalents 1,075,909 875,152 962,139
------------ ---------- -----------------
1,081,656 883,998 963,360
------------ ---------- -----------------
Non-current liabilities:
Borrowings (205) (274) (619)
Derivative financial instruments (16,177) (41,236) (45,636)
Unsecured Notes (1,209,064) (796,048) (725,212)
------------ ---------- -----------------
(1,225,446) (837,558) (771,467)
------------ ---------- -----------------
Current liabilities:
Borrowings (174,474) (130,589) (149,079)
Derivative financial instruments (7,992) (14,918) (18,699)
Unsecured Notes (43,748) (190,604) (167,647)
------------ ---------- -----------------
(226,214) (336,111) (335,425)
------------ ---------- -----------------
Net debt excluding cash attributable
to assets held for sale (274,295) (216,123) (87,292)
Cash and short term deposits attributable 1,467 - -
to assets held for sale
------------ ---------- -----------------
Net debt including cash attributable
to assets held for sale (272,828) (216,123) (87,292)
------------ ---------- -----------------
13. Retirement Benefit Obligations
The Group's defined benefit pension schemes' assets were
measured at fair value at 30 September 2014. The defined benefit
pension schemes' liabilities at 30 September 2014 have been updated
based on market conditions at that date.
The deficit on the Group's retirement benefit obligations
increased from GBP16.033 million at 31 March 2014 to GBP21.949
million at 30 September 2014 (including the defined benefit schemes
associated with assets held for sale at 30 September 2014). The
increase in the deficit was primarily driven by an actuarial loss
on liabilities which arose from a reduction in the discount rate
used to value these liabilities.
14. Changes in Estimates and Assumptions
The following actuarial assumptions have been made in
determining the Group's retirement benefit obligation for the six
months ended 30 September 2014:
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Sept. 30 Sept. 31 March
2014 2013 2014
Discount rate
- Republic of Ireland 2.50% 3.70% 3.40%
- UK 4.00% 4.55% 4.50%
---------- ---------- ---------
15. Business Combinations
A key strategy of the Group is to create and sustain market
leadership positions through bolt-on acquisitions in markets it
currently operates in together with extending the Group's footprint
into new geographic markets. In line with this strategy, the
principal acquisitions completed by the Group during the six months
ended 30 September 2014 were as follows:
-- the acquisition of 100% of Qstar Försäljning AB, a Swedish
unmanned petrol station company, along with its related fuel
distribution and fuel card businesses ('Qstar'), completed in May
2014; and
-- the acquisition in June 2014 of 100% of Williams Medical
Holdings ('Williams'), a UK based business which supplies medical
and pharmaceutical products and related services to general
practitioners in Britain; and
-- the acquisition in September 2014 of CapTech Distribution AB,
Sweden's largest independent technology distribution business.
The carrying amounts of the assets and liabilities acquired
(excluding net cash/debt acquired), determined in accordance with
IFRS before completion of the business combinations, together with
the fair value adjustments made to those carrying values were as
follows:
Unaudited Unaudited Unaudited Unaudited
30 Sept. 30 Sept. 30 Sept. 30 Sept.
2014 2014 2014 2014
GBP'000 GBP'000 GBP'000 GBP'000
Williams Qstar Others Total
Assets
Non-current assets
Property, plant and equipment 2,598 27,101 537 30,236
Intangible assets - other
intangible assets 11,827 6,983 2,766 21,576
Deferred income tax assets 30 37 - 67
---------- ---------- ---------- ----------
Total non-current assets 14,455 34,121 3,303 51,879
---------- ---------- ---------- ----------
Current assets
Inventories 2,536 5,811 12,344 20,691
Trade and other receivables 6,817 28,596 14,537 49,950
---------- ---------- ---------- ----------
Total current assets 9,353 34,407 26,881 70,641
---------- ---------- ---------- ----------
Liabilities
Non-current liabilities
Deferred income tax liabilities (2,365) (1,536) (284) (4,185)
Provisions for liabilities
and charges - (15,112) - (15,112)
Government grants (281) - - (281)
---------- ---------- ---------- ----------
Total non-current liabilities (2,646) (16,648) (284) (19,578)
---------- ---------- ---------- ----------
Current liabilities
Trade and other payables (8,307) (36,801) (12,651) (57,759)
Current income tax liabilities (65) - 60 (5)
---------- ---------- ---------- ----------
Total current liabilities (8,372) (36,801) (12,591) (57,764)
---------- ---------- ---------- ----------
Identifiable net assets acquired 12,790 15,079 17,309 45,178
Intangible assets - goodwill 31,628 24,597 376 56,601
---------- ---------- ---------- ----------
Total consideration (enterprise
value) 44,418 39,676 17,685 101,779
---------- ---------- ---------- ----------
Satisfied by:
Cash 47,928 37,325 4,383 89,636
Net (cash)/debt acquired (3,510) - 9,322 5,812
---------- ---------- ---------- ----------
Net cash outflow 44,418 37,325 13,705 95,448
Deferred and contingent acquisition
consideration - 2,351 3,980 6,331
---------- ---------- ---------- ----------
Total consideration 44,418 39,676 17,685 101,779
---------- ---------- ---------- ----------
The acquisitions of Williams and Qstar have been deemed to be
substantial transactions and separate disclosure of the fair values
of the identifiable assets and liabilities has therefore been made.
None of the remaining business combinations completed during the
period were considered sufficiently material to warrant separate
disclosure of the fair values attributable to those combinations.
The carrying amounts of the assets and liabilities acquired,
determined in accordance with IFRS, before completion of the
combination together with the adjustments made to those carrying
values disclosed above were as follows:
Book Fair value Fair
value adjustments value
Williams GBP'000 GBP'000 GBP'000
Non-current assets (excluding
goodwill) 2,628 11,827 14,455
Current assets 9,353 - 9,353
Non-current liabilities and non-controlling
interests (281) (2,365) (2,646)
Current liabilities (8,372) - (8,372)
-------- ------------- --------
Identifiable net assets acquired 3,328 9,462 12,790
Goodwill arising on acquisition 41,090 (9,462) 31,628
-------- ------------- --------
Total consideration (enterprise
value) 44,418 - 44,418
-------- ------------- --------
Book Fair value Fair
value adjustments value
Qstar GBP'000 GBP'000 GBP'000
Non-current assets (excluding
goodwill) 27,138 6,983 34,121
Current assets 34,407 - 34,407
Non-current liabilities and non-controlling
interests (15,112) (1,536) (16,648)
Current liabilities (36,801) - (36,801)
--------- ------------- ---------
Identifiable net assets acquired 9,632 5,447 15,079
Goodwill arising on acquisition 30,044 (5,447) 24,597
--------- ------------- ---------
Total consideration (enterprise
value) 39,676 - 39,676
--------- ------------- ---------
Book Fair value Fair
value adjustments value
Other acquisitions GBP'000 GBP'000 GBP'000
Non-current assets (excluding
goodwill) 537 2,766 3,303
Current assets 26,881 - 26,881
Non-current liabilities and non-controlling
interests (284) - (284)
Current liabilities (12,591) - (12,591)
--------- ------------- ---------
Identifiable net assets acquired 14,543 2,766 17,309
Goodwill arising on acquisition 3,142 (2,766) 376
--------- ------------- ---------
Total consideration (enterprise
value) 17,685 - 17,685
--------- ------------- ---------
Book Fair value Fair
value adjustments value
Total GBP'000 GBP'000 GBP'000
Non-current assets (excluding
goodwill) 30,303 21,576 51,879
Current assets 70,641 - 70,641
Non-current liabilities and non-controlling
interests (15,677) (3,901) (19,578)
Current liabilities (57,764) - (57,764)
--------- ------------- ---------
Identifiable net assets acquired 27,503 17,675 45,178
Goodwill arising on acquisition 74,276 (17,675) 56,601
--------- ------------- ---------
Total consideration (enterprise
value) 101,779 - 101,779
--------- ------------- ---------
The initial assignment of fair values to identifiable net assets
acquired has been performed on a provisional basis in respect of a
number of the business combinations above given the timing of
closure of these acquisitions, with any amendments to these fair
values to be finalised within a twelve month timeframe from the
dates of acquisition. There were no adjustments processed during
the six months ended 30 September 2014 to the fair value of
business combinations completed during the preceding twelve
months.
The principal factors contributing to the recognition of
goodwill on business combinations entered into by the Group are the
expected profitability of the acquired business and the realisation
of cost savings and synergies with existing Group entities.
GBP0.671 million of the goodwill recognised in respect of
acquisitions completed during the period is expected to be
deductible for tax purposes.
Acquisition and related costs included in the Group Income
Statement amounted to GBP2.243 million.
No contingent liabilities were recognised on the acquisitions
completed during the period or in prior financial years.
The gross contractual value of trade and other receivables as at
the respective dates of acquisition amounted to GBP50.092 million.
The fair value of these receivables was GBP49.950 million (all of
which is expected to be recoverable) and is inclusive of an
aggregate allowance for impairment of GBP0.142 million.
The fair value of contingent consideration recognised at the
date of acquisition is calculated by discounting the expected
future payment to present value at the acquisition date. In
general, for contingent consideration to become payable,
pre-defined profit thresholds must be exceeded. On an undiscounted
basis, the future payments for which the Group may be liable for
acquisitions in the current period range from GBP2.840 million to
GBP14.350 million.
The acquisitions during the period contributed GBP253.739
million to revenues and GBP8.343 million to operating profit before
amortisation of intangible assets and net operating exceptionals.
Had all the business combinations effected during the period
occurred at the beginning of the period, total Group revenue for
the six months ended 30 September 2014 would be GBP5,555.789
million and total Group operating profit before amortisation of
intangible assets and net operating exceptionals would be GBP73.589
million.
16. Assets Classified as Held for Sale
On 30 September 2014 the Group announced that it had reached
agreement to dispose of Robert Roberts and Kelkin ('the
businesses') to Valeo Foods. The disposal is conditional on
clearance from the Competition and Consumer Protection Commission
in Ireland. The total consideration for the businesses is expected
to be approximately EUR60 million (GBP47 million) less debt and
debt like items, payable in cash on completion.
As at 30 September 2014, the businesses were classified as a
disposal group held for sale. The fair value less costs to sell of
the major classes of assets and liabilities held for sale as at 30
September 2014 were as follows:
30 Sept.
2014
GBP'000
Assets
Property, plant and equipment 6,299
Intangible assets 8,844
Equity accounted investments 212
Deferred income tax assets 882
Inventories 17,017
Trade and other receivables 22,903
Cash and cash equivalents 1,467
--------------------
Assets classified as held for sale 57,624
Liabilities
Deferred income tax liabilities (235)
Retirement benefit obligations (6,896)
Deferred and contingent acquisition consideration (78)
Trade and other payables (23,629)
Current income tax liabilities (692)
Liabilities associated with assets classified as
held for sale (31,530)
--------------------
Net assets of the disposal group 26,094
--------------------
17. Seasonality of Operations
The Group's operations are significantly second-half weighted
primarily due to the demand for a significant proportion of DCC
Energy's products being weather dependent and seasonal buying
patterns in DCC Technology.
18. Goodwill
Goodwill is subject to impairment testing on an annual basis and
more frequently if an indicator of impairment is considered to
exist. There were no other indicators of impairment during the six
months ended 30 September 2014. The Board is satisfied that the
carrying value of goodwill at 30 September 2014 has not been
impaired.
19. Related Party Transactions
There have been no related party transactions or changes in
related party transactions other than those described in the Annual
Report in respect of the year ended 31 March 2014 that could have a
material impact on the financial position or performance of the
Group in the six months ended 30 September 2014.
20. Events After the Balance Sheet Date
In October 2014, DCC agreed to dispose of Allied Logistics to
Musgrave, a major food retailer and distributor in Ireland. The
disposal is conditional, inter alia, on clearance from the
Competition and Consumer Protection Commission in Ireland.
21. Distribution of Interim Report
This report and further information on DCC is available at the
Company's website www.dcc.ie. A printed copy is available to the
public at the Company's registered office at DCC House,
Leopardstown Road, Foxrock, Dublin 18, Ireland.
Statement of Directors' Responsibilities
We confirm that to the best of our knowledge:
1. the condensed set of interim financial statements have been
prepared in accordance with IAS 34 Interim Financial Reporting as
adopted by the EU;
2. the interim management report includes a fair review of the information required by:
Regulation 8(2) of the Transparency (Directive 2004/109/EC)
Regulations 2007, being an indication of important events that have
occurred during the first six months of the financial year and
their impact on the condensed set of financial statements; and a
description of the principal risks and uncertainties for the
remaining six months of the year; and
Regulation 8(3) of the Transparency (Directive 2004/109/EC)
Regulations 2007, being related party transactions that have taken
place in the first six months of the current financial year and
that have materially affected the financial position or performance
of the entity during that period; and any changes in the related
party transactions described in the last annual report that could
do so.
On behalf of the Board
John Moloney Tommy Breen
Chairman Chief Executive
3 November 2014
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UOUKRSSAARAA
Dcc (LSE:DCC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Dcc (LSE:DCC)
Historical Stock Chart
From Apr 2023 to Apr 2024
