Final Results
DCC PLC
14 May 2007
Preliminary Results for the Year Ended 31 March 2007
€ Change on prior year
Revenue 4,046.1m +17.7%
Operating profit* 143.0m +15.7%
Share of associates' profit after tax 11.8m -53.7%
Profit before net exceptionals,
amortisation of intangible assets and tax 143.9m +1.3%
Exceptional profit (net) 24.5m
Profit before tax 161.8m +16.6%
Adjusted earnings per share * 160.02 cent +1.8%
Adjusted earnings per share excluding
Manor Park contribution * 143.51 cent +15.8%
Dividend per share 49.28 cent +15.0%
* excluding net exceptionals and amortisation of intangible assets
DCC, the business support services group, today announced its results for the
year ended 31 March 2007.
Commenting on the results, DCC's Chief Executive/Deputy Chairman, Jim Flavin,
said:
'The substantial increase in DCC's sales to €4 billion reflects the
growing scale and breadth of DCC which now has operations in 16 countries
and just over 6,000 employees.
DCC achieved excellent operating profit growth of 15.7% to €143.0 million.
The growth momentum achieved in the first half of the year was maintained
in the seasonally more significant second half.
DCC has budgeted for high single digit operating profit growth for the
financial year to 31 March 2008 and is well positioned to augment this
growth through continued acquisition activity.'
For reference, please contact:
Jim Flavin, Chief Executive/Deputy Chairman Tel: +353 1 2799 400
Fergal O'Dwyer, Chief Financial Officer Email: investorrelations@dcc.ie
Conor Murphy, Investor Relations Manager Web: www.dcc.ie
Results
A summary of the results for the year ended 31 March 2007 is as follows:
€'m Change on prior year
Revenue 4,046.1 +17.7%
Operating profit*
DCC Energy 60.5 +8.2%
DCC SerCom 33.8 +35.3%
DCC Healthcare 23.0 +6.0%
DCC Food & Beverage 15.1 -2.2%
DCC Environmental 10.6 +91.4%
---------
Group operating profit 143.0 +15.7%
Share of associates' profit after tax 11.8 -53.7%
Finance costs (net) (10.9)
--------
Profit before net exceptionals, amortisation of
intangible assets and tax 143.9 +1.3%
Exceptional profit (net) 24.5
Amortisation of intangible assets (6.6)
--------
Profit before tax 161.8 +16.6%
Taxation (20.7)
--------
Profit after tax 141.1
-------
Adjusted EPS* (cent) 160.02 +1.8%
Adjusted EPS excluding Manor Park
contribution* (cent) 143.51 +15.8%
Return on capital employed
- excluding intangible assets: 39.7% (43.0% in 2006)
- including intangible assets: 18.3% (19.1% in 2006)
* excluding net exceptionals and amortisation of intangible assets
Revenue
The substantial increase in DCC's sales revenue to €4 billion reflects the
growing scale and breadth of DCC which now has operations in 16 countries and
just over 6,000 employees.
Operating profit
DCC achieved excellent growth in operating profit. The growth momentum achieved
in the first half of the year was maintained in the seasonally more significant
second half. A summary of the second half and first half operating profit by
division is set out hereunder:
Second half First half
€'m Change €'m Change
Operating profit*
DCC Energy 48.2 +6.7% 12.3 +14.4%
DCC SerCom 22.8 +31.0% 11.0 +45.3%
DCC Healthcare 13.0 +11.9% 10.0 -0.7%
DCC Food & Beverage 7.8 -3.0% 7.3 -1.4%
DCC Environmental 6.0 +119.9% 4.6 +64.4%
----- ----
Group operating profit 97.8 +15.0% 45.2 +17.1%
* excluding net exceptionals and amortisation of intangible assets
Share of associates' profit after tax (Manor Park Homebuilders)
As expected, the contribution from DCC's 49% owned associate company, Manor Park
Homebuilders, declined due to planning delays which have had a short term impact
on its profitability.
DCC announced on 14 February 2007 that it had reached agreement with Joe Moran,
who owns 51% of the share capital of Manor Park Homebuilders, to seek offers for
100% of the share capital and that Goodbody Corporate Finance and IBI Corporate
Finance had been jointly appointed to carry out a formal sale process. This
process is ongoing and a further announcement will be made when appropriate.
Finance costs (net)
Net finance costs for the year increased to €10.9 million (€7.0 million in 2006)
due to the increase in interest rates and an increase in the Group's net debt
levels which averaged €233 million during the year compared to €161 million in
the previous year.
Exceptional profit (net)
As stated in a DCC Stock Exchange Announcement on 9 February 2007, DCC sold a
site of approximately 1.5 acres in the Sandyford Industrial Estate, Dublin 18
for €40 million. Arising principally from this sale the Group made an
exceptional profit on the disposal of fixed assets of €33.2 million. The Group
incurred exceptional restructuring costs of €2.1 million and exceptional legal
and related costs of €6.6 million, resulting in the net exceptional profit of
€24.5 million.
Taxation
Excluding the tax charge on the net exceptional profit, the effective tax rate
for the Group (excluding associates) was 11.0% compared to 12.1% in the previous
year.
Adjusted earnings per share excluding Manor Park contribution
As DCC's 49% shareholding in Manor Park Homebuilders is expected to be sold in
the current financial year, adjusted EPS excluding the contribution from Manor
Park Homebuilders has been shown separately to disclose the underlying earnings
growth of 15.8% achieved in DCC's managed and controlled businesses and joint
ventures.
Financial strength
At 31 March 2007, DCC had net debt of €100.5 million and total equity of €687.7
million. Cash flow from operations was €127.4 million, compared to €142.9
million in the prior year. The reduced cash flow was due to increased investment
in working capital of €49.7 million, driven by the strong growth in sales
revenue and by an increase in working capital days to 14.0 days revenue at 31
March 2007 compared to 9.5 days revenue at 31 March 2006.
DCC's strong financial position leaves the Group well placed to pursue its
organic and acquisition growth objectives.
Acquisitions and development
Acquisition and capital expenditure in the year amounted to €173.5 million as
follows:
Acquisitions Capex Total
€'m €'m €'m
DCC Energy 51.1 32.8 83.9
DCC SerCom 0.7 4.8 5.5
DCC Healthcare 17.7 5.8 23.5
DCC Food & Beverage - 7.0 7.0
DCC Environmental 42.8 10.8 53.6
----- ---- ----
Total 112.3 61.2 173.5
DCC Energy acquired Carlton Fuels, a north of England based oil distribution
business in July 2006, making DCC Energy the largest oil distributor in Britain.
DCC Energy also acquired a number of smaller oil distributors during the year,
including BP's Scottish Islands business, as part of the planned expansion of
its oil distribution business in Britain.
DCC Healthcare acquired the remaining 50% of Technopharm Compounding (an Irish
Medicines Board licensed compounding facility producing patient-ready dosage
packs of oncology and pain management pharmaceuticals and paediatric nutritional
products) in August 2006. DCC Healthcare also expanded its international
presence in its mobility and rehab business in March 2007 through the
acquisition of 60% of Ausmedic, a small company which is the leading supplier of
physiotherapy products in Australia and New Zealand.
DCC Environmental acquired a 50% shareholding in William Tracey, Scotland's
leading recycling and waste management business in May 2006 and in November 2006
acquired 90% of Wastecycle, a rapidly growing, Nottingham based recycling and
non-hazardous waste management business.
DCC is actively pursuing further acquisition and development opportunities in
all divisions.
Share buyback
On 19 June 2006, DCC purchased 1,038,311 of its own shares, being 1.29% of its
issued share capital (excluding Treasury Shares), at a price of €17.90 per share
and at a total cost of €18.8 million including stamp duty and commission.
Since July 2000, DCC has bought back a total of 10,247,231 shares, being 11.61%
of its current issued share capital, at an average price per share of €11.23 and
at a total cost of €116.5 million including stamp duty and commission.
Dividend increase of 15%
The Directors are recommending a final dividend of 31.41 cent per share which,
when added to the interim dividend of 17.87 cent per share, gives a total
dividend of 49.28 cent per share for the year, a 15% increase over the prior
year dividend of 42.85 cent per share. The dividend is covered 3.2 times by
adjusted earnings per share (3.7 times in 2006). It is proposed to pay the final
dividend on 26 July 2007 to shareholders on the register at the close of
business on 25 May 2007.
Litigation
Arising from the successful action by DCC's subsidiary, Days Healthcare, against
Pihsiang Manufacturing Company Limited (a Taiwanese public company), Donald Wu
(its chairman and major shareholder) and his wife Jenny Wu (a director) in the
London High Court, the defendants are jointly and severally liable to pay the
DCC Group Stg£18.9 million (€27.8 million) at 31 March 2007. DCC has not accrued
any of this amount due pending the outcome of an appeal by the defendants to the
Taiwanese High Court, but has expensed all the litigation costs as exceptional
costs.
As set out in a DCC Stock Exchange Announcement on 7 April 2006, Fyffes plc has
lodged an appeal to the Irish Supreme Court seeking to overturn the decision of
the Irish High Court in its failed legal action against DCC and others taken
under Part V of the Irish Companies Act, 1990 relating to the sale of shares in
Fyffes plc by the DCC Group in February 2000. That action was dismissed on the
grounds that the defendants were not in possession of price sensitive
information in February 2000 as alleged by Fyffes. The Supreme Court hearing is
scheduled to commence on 18 June 2007 and is expected to last for approximately
five days. As the appeal is sub judice, it would not be appropriate to make any
comment on the matter at this time.
Outlook
DCC has budgeted for high single digit operating profit growth for the financial
year to 31 March 2008 and is well positioned to augment this growth through
continued acquisition activity.
Operating review
DCC Energy
2007 2006 Change on prior year
Revenue €2,247.9m €1,831.6m +22.7%
Operating profit €60.5m €56.0m +8.2%
Return on capital employed
- excluding intangible assets 50.8% 53.8%
- including intangible assets 23.1% 24.5%
Allowing for the fact that temperatures in Britain and Ireland during the
financial year were well above average, DCC Energy's profit growth of 8.2%,
although below budget, was an excellent result.
DCC Energy sold 3.2bn litres of product, an increase of 9.5% on the prior year,
further strengthening its position as the leading oil and LPG distributor in
Britain and Ireland. Following the acquisition of Carlton Fuels in July 2006,
DCC Energy is now the largest oil distributor in Britain with an approximate 10%
market share, having first entered the market in September 2001. While the
milder weather reduced demand for heating products, excellent progress was made
in winning new national accounts and transport fuels business. The LPG business
also performed well.
DCC's fuel card business had an excellent year. The business was enhanced by the
integration of the fuel card business of Carlton Fuels with DCC's existing fuel
card operations.
DCC Energy is budgeting for strong profit growth in the current financial year
and is actively pursuing acquisition opportunities to further strengthen its
position in the oil distribution market in Britain.
DCC SerCom
2007 2006 Change on prior year
Revenue €1,218.0m €1,084.6m +12.3%
Operating profit €33.8m €25.0m +35.3%
Operating margin 2.8% 2.3%
Return on capital employed
- excluding intangible assets 23.2% 24.4%
- including intangible assets 14.3% 14.3%
DCC SerCom achieved excellent profit growth in both its businesses, SerCom
Distribution and SerCom Solutions.
SerCom Distribution built on its first half performance to deliver excellent
profit growth for the full year. The business benefited from its growing
position in the consumer and retail markets in Britain and Ireland, particularly
with the Xbox 360 console, and achieved strong organic volume growth in the
period. During the year, the business successfully introduced a number of
consumer electronics products and accessories under its own Linx and Exspect
brands, sourced in co-operation with SerCom Solutions.
SerCom Distribution's enterprise business in continental Europe benefited from
improved demand in its markets in France, Iberia and Benelux. The business also
gained market share and broadened its software portfolio in the areas of server
virtualisation and data management.
SerCom Solutions achieved an excellent result. The business benefited from
robust demand from its customer base and made good progress in developing its
procurement operations in Poland and the US. During the year, SerCom Solutions
further strengthened its sourcing capability and now offers a full end-to-end
solution for Far East procurement from its base in China.
Following this excellent performance, the current financial year is expected to
be more challenging for DCC SerCom with the result that a modest decline in
profitability in the year to 31 March 2008 is currently expected. However, the
business is continuing to develop well in consumer electronics and retail
markets. Particular focus is being given to growing its own product range under
its Linx and Exspect brands, capitalising on DCC SerCom's procurement
capabilities.
DCC Healthcare
2007 2006 Change on prior year
Revenue €234.3m €211.7m +10.7%
Operating profit €23.0m €21.6m +6.0%
Operating margin 9.8% 10.2%
Return on capital employed
- excluding intangible assets 58.4% 60.5%
- including intangible assets 15.9% 16.7%
DCC Healthcare generated strong profit growth of 11.9% in the second half of the
year, driven by continued strong sales growth and improved operating margins,
which resulted in good profit growth for the full financial year.
DCC Healthcare continued to achieve excellent organic growth in intravenous
pharmaceuticals and related devices and services in Ireland and Britain, driven
by the success of its compounding service for Irish hospitals, new product
introductions and new agencies. The compounding business benefited from the
successful launch of its service under the national contract for paediatric
nutrition, won during the year. Sales of medical, surgical and laboratory
products to hospitals in Ireland also grew strongly.
In mobility and rehab, DCC Healthcare generated excellent organic profit growth
in physiotherapy supplies in Britain, further strengthening its leadership in
this market segment. Sales in other product categories in Britain and Germany
were impacted by weak market conditions and supply chain management issues. DCC
is continuing to invest in the development of its mobility and rehab business,
including the expansion of its international presence through the acquisition in
March 2007 of 60% of Ausmedic, a small company which is the leading supplier of
physiotherapy products in Australia and New Zealand.
DCC Health and Beauty Solutions (formerly known as DCC Nutraceuticals) is a
leading provider of 'source to shelf' outsourced solutions to the health and
beauty industry, principally in the areas of nutraceuticals, skin care and hair
care. DCC recorded strong organic growth in nutraceuticals in Britain and export
markets due to the high quality solutions DCC provides to its customers.
DCC Healthcare is budgeting to achieve strong profit growth in the current
financial year.
DCC Food & Beverage
2007 2006 Change on prior year
Revenue €279.5m €276.9m +0.9%
Operating profit €15.1m €15.5m -2.2%
Operating margin 5.4% 5.6%
Return on capital employed
- excluding intangible assets 51.9% 55.2%
- including intangible assets 18.3% 18.7%
DCC Food & Beverage achieved good growth in Ireland. However, this performance
was offset by difficult trading conditions in the British wine market.
In Ireland, good growth was achieved in healthfoods, which benefited from
ongoing increased investment in the Kelkin brand and new product development.
Soft drinks, speciality teas, confectionery and snackfoods also performed well.
The frozen and chilled logistics business achieved good growth and has recently
taken on significant new business.
In Britain, the wine market was flat over the last 12 months. This, coupled with
increased margin pressure from major customers, had a negative impact on revenue
and margins of Bottle Green, DCC's British based wine business.
DCC Food & Beverage is budgeting for continued growth in its Irish businesses,
benefiting from trends towards convenience, healthfoods and indulgence impulse
foods along with the increased business won in frozen and chilled logistics. As
yet, there has been no pick-up in the profitability of Bottle Green, but recent
evidence of a return to growth in the market as a whole should provide a better
background for the business.
DCC Environmental
2007 2006 Change on prior year
Revenue €66.5m €31.5m +111.3%
Operating profit €10.6m €5.5m +91.4%
Operating margin 15.9% 17.5%
Return on capital employed
- excluding intangible assets 38.9% 31.8%
- including intangible assets 18.1% 17.4%
DCC Environmental achieved excellent profit growth, benefiting from the
acquisition of a 50% shareholding in William Tracey in May 2006 and 90% of
Wastecycle in November 2006.
William Tracey is Scotland's leading recycling and waste management business and
Wastecycle is a rapidly growing recycling and waste management company based in
Nottingham. These two acquisitions have significantly increased the scale of DCC
Environmental and provide a platform for continued development, both organically
and by acquisition, in the non-hazardous waste sector in Britain. Both
businesses have performed ahead of expectations in the period since acquisition.
Profit in DCC's Irish environmental business was modestly ahead of the prior
year. An extensive re-branding programme under the enva brand has facilitated
more effective marketing of its licenced facilities, expertise and broad range
of environmental services in Ireland. Enva also opened a new water treatment and
waste transfer station facility in Ringaskiddy, Co. Cork, in January 2007.
DCC Environmental is budgeting for excellent profit growth in the current
financial year based on anticipated strong underlying organic growth and a full
year's contribution from the acquisitions completed last year.
Associates
2007 2006 Change on prior year
Share of associates' profit after
tax €11.8m €25.5m -53.7%
DCC's principal associate is Manor Park Homebuilders in which it holds a 49%
shareholding. As expected, the contribution from Manor Park declined due to
planning delays which have had a short term impact on its profitability.
Annual Report and Annual General Meeting
DCC's 2007 Annual Report is expected to be posted to shareholders on 15 June
2007. The Company's Annual General Meeting will be held at 11:00 am on Friday 20
July 2007 in The Four Seasons Hotel, Simmonscourt Road, Ballsbridge, Dublin 4,
Ireland.
Forward-looking statements
This announcement 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
information.
This announcement and further information on DCC is available on the web at
www.dcc.ie
There will be a presentation of these results to analysts and investors/fund
managers in Dublin at 8:45 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: +353 1 2421 074
International: +44 20 8974 7940
Passcode: 816 269 89
Group Income Statement
for the year ended 31 March 2007
2007 2006
---------------------------------------------- ----------------------------------------
Pre net Net exceptionals Pre net Net
exceptionals (note 5) Total exceptionals exceptionals Total
Notes €'000 €'000 €'000 €'000 €'000 €'000
Revenue 3 4,046,118 - 4,046,118 3,436,292 - 3,436,292
Cost of sales (3,544,403) - (3,544,403) (2,992,240) - (2,992,240)
Gross profit 501,715 - 501,715 444,052 - 444,052
Operating costs (358,721) 24,516 (334,205) (320,457) 2,841 (317,616)
Operating profit
before amortisation
of intangible assets 142,994 24,516 167,510 123,595 2,841 126,436
Amortisation
of intangible assets (6,660) - (6,660) (4,956) - (4,956)
Operating
profit 4 136,334 24,516 160,850 118,639 2,841 121,480
Finance costs (31,338) - (31,338) (22,947) (1,145) (24,092)
Finance income 20,488 - 20,488 15,906 - 15,906
Share of associates
profit after tax 11,800 - 11,800 25,474 - 25,474
Profit before tax 137,284 24,516 161,800 137,072 1,696 138,768
Income tax expense (12,995) (7,700) (20,695) (13,479) - (13,479)
Profit after tax
for the year 124,289 16,816 141,105 123,593 1,696 125,289
Profit attributable to:
Equity holders of the Company 140,186 123,764
Minority interests 919 1,525
Profit after tax
for the year 141,105 125,289
Earnings per ordinary share
- basic 6 174.59c 153.92c
Diluted earnings per
ordinary share
- basic 6 170.83c 150.46c
Group Balance Sheet
as at 31 March 2007
2007 2006
Note €'000 €'000
ASSETS
Non-current assets
Property, plant and equipment 319,621 267,494
Intangible assets 321,369 248,475
Investments in associates 90,332 76,789
Deferred income tax assets 8,305 4,596
Derivative financial instruments 3,091 8,989
-------- -------
742,718 606,343
-------- -------
Current assets
Inventories 177,450 138,734
Trade and other receivables 597,257 522,143
Derivative financial instruments 51 144
Cash and cash equivalents 337,079 345,280
-------- -------
1,111,837 1,006,301
-------- -------
Total assets 1,854,555 1,612,644
-------- -------
EQUITY
Capital and reserves attributable
to equity holders of the Company
Equity share capital 22,057 22,057
Share premium account 124,687 124,687
Other reserves 1,400 1,400
Other reserves - share options 4,807 3,392
Cash flow hedge reserve (117) 20
Foreign currency translation reserves (2,914) (10,344)
Retained earnings 531,994 439,477
-------- -------
681,914 580,689
Minority interests 5,816 4,714
-------- -------
Total equity 687,730 585,403
-------- -------
LIABILITIES
Non-current liabilities
Borrowings 268,579 292,793
Derivative financial instruments 45,944 27,077
Deferred income tax liabilities 14,748 10,718
Retirement benefit obligations 16,372 20,679
Provisions for liabilities and charges 6,122 -
Deferred acquisition consideration 18,523 18,808
Capital grants 2,393 1,991
-------- -------
Total non-current liabilities 372,681 372,066
-------- -------
Current liabilities
Trade and other payables 601,404 543,913
Current income tax liabilities 50,849 36,697
Borrowings 125,978 67,151
Derivative financial instruments 236 73
Provisions for liabilities and charges 4,807 3,785
Deferred acquisition consideration 10,870 3,556
-------- -------
Total current liabilities 794,144 655,175
-------- -------
Total liabilities 1,166,825 1,027,241
-------- -------
Total equity and liabilities 1,854,555 1,612,644
-------- -------
Net debt included above 8 (100,516) (32,681)
-------- -------
Group Cash Flow Statement
for the year ended 31 March 2007
2007 2006
Note €'000 €'000
Cash flows from operating activities
Group operating profit before exceptionals 136,334 118,639
Depreciation 39,461 34,142
Share-based payments expense 1,415 1,840
Amortisation of intangible assets 6,660 4,956
Increase in working capital (49,656) (11,162)
Profit on disposal of property, plant and
equipment (1,362) (1,295)
Amortisation of capital grants (276) (112)
Dividends received from associates 268 1,028
Other (5,423) (5,114)
------- -------
Cash generated from operations 127,421 142,922
Exceptionals (4,916) (15,377)
Interest paid (29,331) (20,573)
Income tax paid (10,058) (12,157)
------- -------
Net cash flows from operating activities 83,116 94,815
------- -------
Investing activities
Inflows
Proceeds from disposal of property, plant and
equipment 44,394 11,223
Interest received 20,211 13,650
Capital grants received - 1,174
------- -------
64,605 26,047
------- -------
Outflows
Purchase of property, plant and equipment (60,651) (57,652)
Acquisition of subsidiaries (100,213) (48,625)
Purchase of minority interests (1,276) (506)
Deferred acquisition consideration paid (4,176) (5,580)
------- -------
(166,316) (112,363)
------- -------
Net cash flows from investing activities (101,711) (86,316)
------- -------
Financing activities
Inflows
Proceeds from issue of shares 6,098 3,344
Increase in finance lease liabilities 3,545 -
Increase in interest-bearing loans and
borrowings 56,303 36,624
------- -------
65,946 39,968
------- -------
Outflows
Share buyback (18,818) -
Repayment of interest-bearing loans and
borrowings (1,240) (663)
Repayment of finance lease liabilities (4,801) (5,973)
Dividends paid to equity holders of the
Company 7 (36,381) (31,568)
Dividends paid to minority interests (38) (201)
------- -------
(61,278) (38,405)
------- -------
Net cash flows from financing activities 4,668 1,563
------- -------
Change in cash and cash equivalents (13,927) 10,062
Translation adjustment 4,196 (4,541)
Cash and cash equivalents at beginning of
year 319,918 314,397
------- -------
Cash and cash equivalents at end of year 310,187 319,918
------- -------
Cash and cash equivalents consists of:
Cash at bank and short term deposits 337,079 345,280
Overdrafts (26,892) (25,362)
------- -------
310,187 319,918
------- -------
Group Statement of Recognised Income and Expense
for the year ended 31 March 2007
2007 2006
€'000 €'000
Items of income/(expense) recognised directly within
equity:
Currency translation 7,430 (4,779)
Group defined benefit pension schemes:
- actuarial gain 1,576 1,779
- movement in deferred tax asset (169) 82
Deferred tax on share based payment 25 25
(Losses)/gains relating to cash flow hedges (net) (159) 23
Movement in deferred tax liability on cash flow
hedges 22 (3)
------- -------
Net income/(expense) recognised directly within
equity 8,725 (2,873)
Group profit for the year 141,105 125,289
------- -------
Total recognised income and expense for the year 149,830 122,416
------- -------
Attributable to:
Equity holders of the Company 148,911 120,891
Minority interests 919 1,525
------- -------
Total recognised income and expense for the year 149,830 122,416
------- -------
Group Statement of Changes in Equity
for the year ended 31 March 2007
2007 2006
€'000 €'000
At beginning of year 585,403 490,530
Issues of share capital 6,098 3,344
Share based payment 1,415 1,840
Share buyback (18,818) -
Dividends (36,381) (31,568)
Movement in minority interest 1,102 366
Total recognised income and expense for the year
attributable to equity holders 148,911 120,891
-------- --------
At end of year 687,730 585,403
-------- --------
Notes to the Preliminary Results
for the year ended 31 March 2007
1. International Financial Reporting Standards
Basis of Preparation
The financial information presented in this preliminary announcement has been
prepared in accordance with EU endorsed International Financial Reporting
Standards (IFRS), IFRIC interpretations and the Companies Acts 1963 to 2006
applicable to companies reporting under IFRS.
Statutory accounts
The accounts in this preliminary announcement are not the statutory accounts of
the Company, a copy of which is required to be annexed to the Company's annual
return to the Companies Registration Office. A copy of the statutory accounts in
respect of the year ended 31 March 2007 will be annexed to the Company's annual
return for 2007. The auditors of the Company have made a report, without any
qualification on their audit, on the statutory accounts of the Company in
respect of the year ended 31 March 2006 and the Directors approved the statutory
accounts of the Company in respect of the year ended 31 March 2007 on 11 May
2007. A copy of the statutory accounts of the Company in respect of the year
ended 31 March 2006 has been annexed to the Company's annual return for 2006 to
the Companies Registration Office.
2. Reporting Currency
The Group's financial statements are prepared in euro denoted by the symbol €.
The exchange rates used in translating sterling balance sheet and income
statement amounts were as follows:
2007 2006
€1=Stg£ €1=Stg£
Balance sheet (closing rate) 0.680 0.697
Income statement (average rate) 0.680 0.682
3. Revenue
2007 2006
€'000 €'000
DCC Energy 2,247,858 1,831,608
DCC SerCom 1,218,047 1,084,606
DCC Healthcare 234,276 211,701
DCC Food & Beverage 279,471 276,917
DCC Environmental 66,466 31,460
-------- --------
Revenue 4,046,118 3,436,292
-------- --------
Of which acquisitions contributed 411,207 119,348
-------- --------
4. Operating Profit
2007 2006
€'000 €'000
DCC Energy 60,538 55,965
DCC SerCom 33,842 25,015
DCC Healthcare 22,942 21,636
DCC Food & Beverage 15,123 15,467
DCC Environmental 10,549 5,512
-------- --------
142,994 123,595
Amortisation of intangible assets (6,660) (4,956)
Exceptional profit (net) 24,516 2,841
-------- --------
Operating profit 160,850 121,480
-------- --------
Of which acquisitions contributed 10,586 8,121
-------- --------
5. Exceptional Profit (net)
As stated in a DCC Stock Exchange Announcement on 9 February 2007, DCC sold a
site of approximately 1.5 acres in the Sandyford Industrial Estate, Dublin 18
for €40 million. Arising principally from this sale the Group made an
exceptional profit on the disposal of property, plant and equipment of €33.2
million. The Group incurred exceptional restructuring costs of €2.1 million and
exceptional legal and related costs of €6.6 million, resulting in the net
exceptional profit of €24.5 million.
6. Earnings per Ordinary Share and Adjusted Earnings per Ordinary Share
2007 2006
€'000 €'000
Profit after taxation and minority interests 140,186 123,764
Amortisation of intangible assets (net of tax) 5,119 4,361
Net exceptionals (net of tax of €7.7 million) (16,816) (1,696)
-------- --------
Adjusted profit after taxation and minority interests 128,489 126,429
-------- --------
Basic earnings per ordinary share cent cent
Basic earnings per ordinary share 174.59c 153.92c
Adjusted basic earnings per ordinary share* 160.02c 157.23c
Weighted average number of ordinary shares in
issue during the period ('000) 80,294 80,408
Diluted earnings per ordinary share cent cent
Diluted earnings per ordinary share 170.83c 150.46c
Adjusted diluted earnings per ordinary share* 156.58c 153.70c
Diluted weighted average number of ordinary shares ('000) 82,061 82,255
*adjusted to exclude amortisation of intangible assets and exceptionals net of
tax.
7. Dividends
2007 2006
€'000 €'000
Interim 2006/2007 dividend of 17.87 cent per share
(2005/2006: 15.54 cent per share) 14,337 12,495
Final 2005/2006 dividend of 27.31 cent per share
(2004/2005: 23.75 cent per share) 22,044 19,073
-------- --------
36,381 31,568
-------- --------
On 11 May 2007, the Board proposed a final 2006/2007 dividend of 31.41 cent per
share. The financial statements for the year ended 31 March 2007 do not reflect
this dividend payable.
8. Analysis of Net Debt
2007 2006
€'000 €'000
Non-current assets:
Derivative financial instruments 3,091 8,989
-------- --------
Current assets:
Derivative financial instruments 51 144
Cash and cash equivalents 337,079 345,280
-------- --------
337,130 345,424
-------- --------
Non-current liabilities:
Borrowings (3,117) (6,327)
Derivative financial instruments (45,944) (27,077)
Unsecured Notes due 2008 to 2016 (265,462) (286,466)
-------- --------
(314,523) (319,870)
-------- --------
Current liabilities:
Borrowings (125,978) (67,151)
Derivative financial instruments (236) (73)
-------- --------
(126,214) (67,224)
-------- --------
Net debt (100,516) (32,681)
-------- --------
This information is provided by RNS
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