Interim Results
DCC PLC
07 November 2005
Interim Results for the Six Months ended 30 September 2005
% change on prior year
----------------------
€ Reported Constant
currency*
Revenue 1,527.5 m +37.5% +39.1%
Operating profit** 38.6 m +2.9% +6.7%
Profit before exceptional items,
amortisation of intangible assets and tax 41.1 m -3.0% +0.3%
Adjusted earnings per share** 45.34 cent -4.4% -1.1%
Dividend per share 15.54 cent +15.0%
Net debt at 30 September 2005 94.7 m
* all constant currency figures quoted in this report are based on
retranslating current year figures at prior year translation rates
** excluding exceptional items and amortisation of intangible assets
DCC, the business support services group, today announced its results for the
six months ended 30 September 2005.
Commenting on the results, DCC's Chief Executive/Deputy Chairman, Jim Flavin,
said:
'DCC achieved excellent growth in its Healthcare and Food & Beverage
divisions and good growth in its Energy and Environmental divisions.
The IT & Entertainment Products division was adversely affected by
tough market conditions.
The Board expects that the Group will achieve double-digit earnings growth
in the seasonally more important second half of the financial year.'
For reference, please contact:
Jim Flavin, Chief Executive/Deputy Chairman
Fergal O'Dwyer, Chief Financial Officer
Conor Murphy, Investor Relations Manager
Tel: +353 1 2799 400
Email: investorrelations@dcc.ie
Web: www.dcc.ie
IFRS
DCC adopted International Financial Reporting Standards (IFRS) on 1 April 2005
and these Interim Results have been prepared in accordance with IFRS. All prior
year comparatives in this report have been restated under IFRS. A full
restatement of DCC's results for the year ended 31 March 2005 under IFRS was
issued on 30 September 2005.
Results
A summary of the results for the six months to 30 September is as follows:
% change on prior year
-----------------------
€'m Reported Constant
currency*
Revenue 1,527.5 +37.5% +39.1%
-------- ------ ------
Divisional operating profit
Energy 10.7 +1.2% +6.4%
IT & Entertainment Products 7.6 -37.0% -34.0%
Healthcare 10.1 +48.1% +49.7%
Food & Beverage 7.4 +37.9% +44.3%
Environmental 2.8 +2.6% +4.7%
------- ------- ------
Group operating profit** 38.6 +2.9% +6.7%
Share of profit after tax of
associated undertakings 5.7 -20.7% -20.7%
Net financing costs (3.2)
--------------------------------------
Profit before exceptional items,
amortisation of intangible assets and tax 41.1 -3.0% +0.3%
---------------------------------------
Adjusted EPS (cent) 45.34 -4.4% -1.1%
--------------------------------------
* all constant currency figures quoted in this report are based on
retranslating current year figures at prior year translation rates
** excluding exceptional items and amortisation of intangible assets
DCC achieved excellent growth in its Healthcare and Food & Beverage divisions
and good growth in its Energy and Environmental divisions. The IT &
Entertainment Products division was adversely affected by tough market
conditions. Group operating profit increased by 2.9% on a reported basis and by
6.7% on a constant currency basis.
The share of profit after tax of associated undertakings of €5.7m substantially
relates to DCC's 49% shareholding in Manor Park Homebuilders. Under IFRS the
share of profits of associated undertakings, which was previously included in
operating profit, is now separately shown net of the associated undertakings'
financing costs and tax.
The net financing cost for the period increased to €3.2 million (2004: €2.2
million).
Arising from the decreased contribution from associated undertakings, profit
before exceptional items, amortisation of intangible assets and tax decreased by
3.0% on a reported basis but increased by 0.3% on a constant currency basis.
Adjusted earnings per share for the period decreased by 4.4% on a reported basis
and by 1.1% on a constant currency basis.
Acquisitions and Development
Acquisition and development expenditure in the period amounted to €80.3 million
of which €26.7 million related to capital expenditure. DCC's ongoing acquisition
search process has resulted in a number of acquisitions at a total committed
cost of €53.6 million. The cash impact of acquisitions in the period was €48.1
million.
On 1 April 2005, DCC Energy acquired the trade, assets and goodwill of Brett
Fuels, a small UK based oil distributor. Brett Fuels distributes approximately
45 million litres of oil products per annum and has been integrated into DCC's
oil distribution business in the UK.
On 13 June 2005, DCC Healthcare expanded its acute and community care business
through the acquisition of Physio-Med Services Limited, a market-leading
supplier of a broad range of physiotherapy and rehabilitation equipment and
consumables to physiotherapists, occupational therapists, podiatrists,
chiropractors and end users.
On 15 June 2005, DCC's IT & Entertainment Products division acquired Pilton
Company, a leading distributor of DVDs, computer games and other products to the
home entertainment market in Ireland and with a developing business in Britain.
On 6 July 2005, the division expanded its continental European operations into
Belgium, Holland and Luxembourg through the acquisition of a small company, AB
Computing. This business is complementary to the division's operations in
France, Spain and Portugal.
The Group is actively pursuing further acquisition opportunities in each of its
divisions.
Financial strength
At 30 September 2005, the Group had net debt of €94.7 million and total equity
of €503.0 million. In line with normal seasonal trends, working capital
increased by €32.9 million since 31 March 2005 to €134.2 million, which equates
to 14.0 days sales and compares favourably with 14.4 days at 30 September 2004.
DCC's strong financial position leaves the Group well placed to pursue its
organic and acquisition growth objectives.
Interim dividend
The Board has decided to increase the interim dividend by 15.0% to 15.54 cent
per share. This dividend will be paid on 1 December 2005 to shareholders on the
register at the close of business on 18 November 2005.
Fyffes litigation
The hearing of the Fyffes legal action concluded on 18 July 2005. While no date
has been set, a judgment is anticipated before Christmas.
The Board of DCC set out its views on the Fyffes action in a comprehensive Stock
Exchange announcement on 24 January 2002.
Outlook
The Board expects that the Group will achieve double-digit earnings growth in
the seasonally more important second half of the financial year.
Operating review
Energy % change
------- -----------------------
2005 2004 Reported Constant
currency
Revenue €822.0m €461.7m +78.1% +80.6%
Operating profit €10.7m €10.6m +1.2% +6.4%
DCC's energy business recorded excellent sales volume growth driven by the
acquisitions in the prior year of Shell Direct UK and Dyneley Holdings and by
good organic growth. Revenue growth also reflected the increase in oil product
costs. Despite this increase the gross profit per litre of product sold was
satisfactory.
The Shell Direct business performed ahead of expectations but as anticipated
incurred a seasonal loss. This business is well placed for the seasonally
important second half.
IT & Entertainment Products % change
---------------------------- --------------------
2005 2004 Reported Constant
currency
Revenue €448.9m €457.1m -1.8% -0.7%
Operating profit €7.6m €12.0m -37.0% -34.0%
Operating margin 1.7% 2.6%
SerCom Distribution, DCC's IT & Entertainment Products business, was
significantly impacted by very difficult trading conditions in the second
quarter of the financial year. The business was particularly impacted by a rapid
deterioration, during that period, in the retail trading environment in Britain
and a significant decline in demand in the French enterprise market. The profit
contribution from the Irish businesses was in line with expectations.
The division achieved good organic sales volume growth, but revenue was impacted
by severe product price deflation. This deflation also increased margin pressure
in a highly competitive marketplace.
Following the recent acquisitions of Pilton Company and AB Computing, DCC is
focused on driving sales growth in IT & Entertainment Products through
leveraging its strong market positions and by capitalising on its enhanced range
of products across the different geographic markets in which the business
operates. Focus will also be maintained on margin and cost management.
SerCom Solutions, the supply chain management business, has been successfully
restructured and has returned to profitability. Revenues increased by 21.3% to
€54.1m and the business earned a modest operating profit of €0.2m compared to an
operating loss of €1.0m in the first six months of the prior year.
Healthcare % change
----------- -----------------------
2005 2004 Reported Constant
currency
Revenue €101.6m €77.3m +31.5% +32.8%
Operating profit €10.1m €6.8m +48.1% +49.7%
Operating margin 9.9% 8.8%
DCC's healthcare business generated excellent sales and profit growth.
Good profit growth was achieved in acute and community care products, driven by
the acquisition of Physio-Med Services and continued excellent growth in sales
of intravenous pharmaceutical products and related devices.
To accelerate the growth of DCC Group own branded acute and community care
products, DCC Healthcare has opened a procurement and quality control office in
Shenzhen, China.
DCC Healthcare's contract services business to the health & beauty sector
achieved excellent organic and acquisition growth. The acquisition of Laleham
Healthcare in December 2004 has significantly expanded the breadth of DCC's
contract services in this sector and is opening up new growth opportunities.
Food & Beverage % change
---------------- ----------------------
2005 2004 Reported Constant
currency
Revenue €139.7m €101.9m +37.1% +37.7%
Operating profit €7.4m €5.4m +37.9% +44.3%
Operating margin 5.3% 5.3%
DCC's Food & Beverage business achieved excellent sales and profit growth due to
organic growth and acquisition activity in the first half of the prior year.
Wine, snackfoods, frozen and chilled logistics and Kylemore each made an
increased profit contribution. In healthfoods, marketing investment in the
Kelkin brand and new Kelkin product development for launch in the second half
caused a small reduction in its profit contribution.
Environmental % change
-------------- ----------------------
2005 2004 Reported Constant
currency
Revenue €15.3m €13.3m +15.1% +15.7%
Operating profit €2.8m €2.8m +2.6% +4.7%
Operating margin 18.5% 20.8%
DCC's Environmental business achieved good sales growth. Operating profits
increased at a lower rate due to a change in sales mix.
Associated undertakings % change
----------------------- ----------------------
2005 2004 Reported Constant
currency
Share of profit after tax of
associated undertakings €5.5m €7.1m -20.7% -20.7%
DCC's principal associated undertaking is Manor Park Homebuilders. As had been
anticipated, DCC's share of Manor Park Homebuilders' profit after tax declined
in the first half due to the phasing of sales in the current financial year.
Note: All constant currency figures quoted in this report are based on
retranslating current year figures at prior year translation rates.
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 GMT 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: (01) 2421074
International: +44 208 974 7916
Passcode: C 369549
GROUP INCOME STATEMENT
for the six months ended 30 September 2005
Unaudited 6 months ended Unaudited 6 months ended Audited year ended
30 September 2005 30 September 2004 31 March 2005
---------------------------------- ---------------------------------- ---------------------------------
Pre Exceptionals Pre net Net Pre net Net
exceptionals (note 5) Total exceptionals exceptionals Total exceptionals exceptionals Total
Notes €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
Revenue 3 1,527,500 1,527,500 1,111,178 1,111,178 2,644,728 2,644,728
Cost of sales (1,313,596) (1,313,596) (929,954) (929,954) (2,258,200) (2,258,200)
Gross profit 213,904 213,904 181,224 181,224 386,528 386,528
Operating costs (175,289) (4,187) (179,476) (143,694) (1,376) (145,070) (274,715) (15,967) (290,682)
Operating profit
before amortisation
of intangible
assets 38,615 (4,187) 34,428 37,530 (1,376) 36,154 111,813 (15,967) 95,846
Amortisation
of intangible
assets (2,153) (2,153) (145) (145) (1,261) (1,261)
Operating
profit 4 36,462 (4,187) 32,275 37,385 (1,376) 36,009 110,552 (15,967) 94,585
Finance costs
(net) (3,133) (1,145) (4,278) (2,233) (2,572) (4,805) (5,694) (4,809) (10,503)
Share of
associates
profit after
tax 5,660 5,660 7,134 7,134 16,807 16,807
Profit
before tax 38,989 (5,332) 33,657 42,286 (3,948) 38,338 121,665 (20,776) 100,889
Income tax
expense (3,548) (4,074) (12,107)
Profit after
tax for the
financial period 30,109 34,264 88,782
Profit
attributable to:
Equity holders
of the Company 29,197 33,822 87,760
Minority
interests 912 442 1,022
Profit after
tax for the
financial period 30,109 34,264 88,782
Earnings per
ordinary share
- basic 6 36.35c 42.31c 109.68c
Diluted
earnings per
ordinary share
- basic 6 35.49c 41.43c 107.16c
Dividend per
ordinary share
(cent) 7 15.54c 13.51c 37.26c
Group Balance Sheet
as at 30 September 2005
Unaudited Unaudited Audited
30 Sept. 30 Sept. 31 March
2005 2004 2005
Note €'000 €'000 €'000
ASSETS
Non-current assets
Property, plant and equipment 263,458 230,392 254,791
Intangible assets 246,207 172,148 208,053
Investment in associates 57,304 41,513 51,384
Derivative financial instruments 9,086 - -
Deferred income tax assets 7,518 6,763 6,957
583,573 450,816 521,185
Current assets
Inventories 142,521 126,886 124,049
Trade and other receivables 436,714 346,799 410,190
Derivative financial instruments 519 - -
Cash and cash equivalents 287,817 325,488 353,304
867,571 799,173 887,543
Total assets 1,451,144 1,249,989 1,408,728
EQUITY
Capital and reserves attributable to
the Company's equity holders
Equity share capital 22,045 22,035 22,042
Share premium account 124,528 124,438 124,506
Other reserves 2,432 1,400 1,400
Other reserves - shares to be issued 1,400 901 1,552
Cash flow hedge reserve 182 - -
Foreign currency translation reserves (1,144) (7,492) (5,565)
Retained earnings 349,094 300,626 343,936
Minority interests 4,453 4,168 4,348
Total equity 502,990 446,076 492,219
LIABILITIES
Non-current liabilities
Interest-bearing loans and borrowings 309,042 322,870 316,644
Derivative financial instruments 19,306 - -
Deferred income tax liabilities 10,762 3,893 9,996
Retirement benefit obligations 27,753 23,434 25,380
Deferred acquisition consideration 16,316 9,549 10,839
Capital grants 914 1,039 958
Total non-current liabilities 384,093 360,785 363,817
Current liabilities
Interest-bearing loans and borrowings 63,568 28,642 45,553
Derivative financial instruments 184 - -
Trade and other payables 455,445 371,756 462,866
Current income tax liabilities 37,816 36,701 37,189
Deferred acquisition consideration 7,048 6,029 7,084
Total current liabilities 564,061 443,128 552,692
Total liabilities 948,154 803,913 916,509
Total equity and liabilities 1,451,144 1,249,989 1,408,728
Net debt 8 (94,678) (26,024) (8,893)
Group Cash Flow Statement
for the six months ended 30 September 2005
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Sept. 30 Sept. 31 March
2005 2004 2005
€'000 €'000 €'000
Cash flows from operating activities
Group operating profit before exceptional
items 36,462 37,385 110,552
Depreciation 16,785 15,888 32,867
Share-based payments expense 880 352 1,003
Amortisation of intangible assets 2,153 145 1,261
Increase in working capital (32,884) (39,489) (24,678)
Profit on disposal of property, plant and
equipment (420) (745) (2,050)
Amortisation of capital grants (44) (73) (155)
Dividends received from associates 581 428 1,354
Other (2,513) (1,502) (3,758)
Cash generated from operations 21,000 12,389 116,396
Exceptional items (11,727) (521) (6,560)
Interest paid (9,417) (5,951) (15,627)
Income tax paid (3,403) (3,922) (9,289)
Net cash flow from operating activities (3,547) 1,995 84,920
Cash flows from investing activities
Inflows
Proceeds from disposal of fixed assets 4,637 1,665 7,875
Interest received 7,096 5,211 12,833
11,733 6,876 20,708
Outflows
Purchase of property, plant and equipment (27,620) (18,521) (43,647)
Acquisition of subsidiaries (45,295) (32,706) (77,288)
Purchase of minority interests (506) (6) (905)
Deferred acquisition consideration paid (2,272) (3,902) (2,955)
(75,693) (55,135) (124,795)
Net cash outflow from investing activities (63,960) (48,259) (104,087)
Cash flows from financing activities
Inflows
Proceeds from issue of shares 586 3,842 6,858
Increase in interest-bearing loans and
borrowings 35,666 213,244 213,244
Increase in finance lease liabilities - 186 -
36,252 217,272 220,102
Outflows
Share buyback - (26,762) (26,762)
Repayment of interest-bearing loans and
borrowings - (86,458) (88,918)
Repayment of finance lease liabilities - - (5,062)
Dividends paid to equity holders of the
Company (19,073) (16,401) (27,212)
Dividends paid to minority interests (147) (122) (176)
(19,220) (129,743) (148,130)
Net cash inflow from financing activities 17,032 87,529 71,972
Change in cash and cash equivalents (50,475) 41,265 52,805
Translation adjustment 2,766 (7,596) (10,074)
Cash and cash equivalents at beginning of
period 314,397 271,666 271,666
Cash and cash equivalents at end of period 266,688 305,335 314,397
Cash and cash equivalents consists of:
Cash at bank and short term deposits 287,817 325,488 353,304
Overdrafts (21,129) (20,153) (38,907)
266,688 305,335 314,397
Group Statement of Recognised Income and Expense
for the six months ended 30 September 2005
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Sept. 30 Sept. 31 March
2005 2004 2005
€'000 €'000 €'000
Items of income/(expense) recognised directly
within equity:
Currency translation 4,421 (7,492) (5,565)
Group defined benefit pension schemes:
- actuarial loss (4,257) (4,938) (7,742)
- deferred tax asset 406 750 796
Gains relating to cash flow hedges (net) 182 - -
Deferred tax recognised through equity 13 - -
Net income/(expense) recognised directly
within equity 765 (11,680) (12,511)
Group profit for the financial period 30,109 34,264 88,782
Total recognised income and expense for the
period 30,874 22,584 76,271
Attributable to:
Equity holders of the Company 29,962 22,142 75,249
Minority interests 912 442 1,022
Total recognised income and expense for the
period 30,874 22,584 76,271
Group Statement of Changes in Equity
for the six months ended 30 September 2005
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Sept. 30 Sept. 31 March
2005 2004 2005
€'000 €'000 €'000
At beginning of period 492,219 462,816 462,816
Impact of adoption of IAS 32 and 39 (1,689) - -
At beginning of period as adjusted 490,530 462,816 462,816
Issue of share capital 586 3,842 6,858
Share based payment 880 352 1,003
Share buyback - (26,762) (26,762)
Dividends (19,073) (16,401) (27,212)
Movement in minority interest 297 87 397
Business combinations (192) - (130)
Total recognised income and expense for the
period attributable to equity holders 29,962 22,142 75,249
At end of period 502,990 446,076 492,219
Notes to the Interim Results
for the six months ended 30 September 2005
1. International Financial Reporting Standards
Basis of Preparation
The financial information presented in this Interim Report has been prepared in
accordance with the Group's accounting policies under International Financial
Reporting Standards (IFRS). The transition date for implementation of IFRS by
the Group was 1 April 2004. The financial statements for the six months ended 30
September 2004 and for the year ended 31 March 2005, which were prepared in
accordance with accounting policies generally accepted in the Republic of
Ireland, have been restated under IFRS with effect from the transition date. The
Group has availed of the exemption under the transition rules of IFRS 1 not to
restate the comparative information under IAS 32 and IAS 39. Comparative
information on financial instruments for the six months ended 30 September 2004
and for the year ended 31 March 2005 is presented on the existing Irish GAAP
basis. Note 9 details the impact of adoption of IAS 32 and IAS 39 on the
Consolidated Balance Sheet as at 1 April 2005.
Full details of the accounting policies adopted by the Group on implementation
of IFRS, and of the impact on the reported results and balance sheet of the
Group on transition to IFRS, were published on 30 September 2005 and are
available on the Group's website www.dcc.ie.
Approved IFRS
The interim financial information has been prepared in accordance with the
recognition and measurement principles of IFRS and International Financial
Reporting Interpretations Committee (IFRIC) interpretations expected to be
applicable at 31 March 2006. The majority of the IASs/IFRSs have been approved
by the European Commission. However, a number of IASs/IFRSs remain to be
approved at the date of publication of this document, and failure to approve
these outstanding standards in time for financial reporting for the year ending
31 March 2006 could lead to changes in the basis of accounting or in the basis
of presentation of certain financial information from that adopted for the
purposes of this Interim Report. In particular, the Directors have assumed that
the European Commission will endorse the Amendment to IAS 19 Employee Benefits,
Actuarial Gains and Losses, Group Plans and Disclosures issued by the IASB in
December 2004.
Furthermore, the financial information provided in this document is subject to
the issuance by the International Accounting Standards Board of additional
interpretations prior to the end of the financial year to 31 March 2006 which
may require changes to the financial information contained in this document for
the full year to 31 March 2005, prior to its inclusion as comparative data in
the published consolidated financial statements for the year ending 31 March
2006 under IFRS.
Joint Ventures
During the period the Group undertook a review to ascertain whether certain
associated undertakings may be more correctly treated as joint ventures. The
result of this review was that the Group's 50% shareholdings in Kylemore Foods
Holdings Limited and KP (Ireland) Limited are both required under IAS 31
Interests in Joint Ventures to be treated as joint ventures. In line with the
benchmark methodology contained in IAS 31, the Group has opted to apply
proportionate consolidation in accounting for its interests in joint venture
undertakings. Comparative amounts have been regrouped and restated, where
necessary, on the same basis as the amounts for the current period. The
reclassification of certain associated undertakings as joint ventures has no net
effect on total equity, retained earnings or adjusted earnings per share for the
current and comparative periods.
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 profit and
loss amounts were as follows:
6 months ended 6 months ended Year ended
30 Sept. 2005 30 Sept. 2004 31 March 2005
€1=Stg£ €1=Stg£ €1=Stg£
Balance sheet (closing rate) 0.683 0.687 0.689
Profit and loss (average rate)* 0.682 0.637 0.672
* The average exchange rates for the six months to 30 September 2004 and for the
year ended 31 March 2005 have been adjusted for the impact of forward foreign
exchange contracts entered into to hedge sterling profits for those periods.
3. Revenue
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Sept. 30 Sept. 31 March
2005 2004 2005
€'000 €'000 €'000
Energy 822,026 461,661 1,240,551
IT & Entertainment Products 448,890 457,070 983,483
Healthcare 101,605 77,280 162,279
Food & Beverage 139,701 101,888 232,635
Environmental 15,278 13,279 25,780
Revenue 1,527,500 1,111,178 2,644,728
Of which acquisitions contributed 51,785 40,383 312,253
4. Operating Profit
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Sept. 30 Sept. 31 March
2005 2004 2005
€'000 €'000 €'000
Energy 10,734 10,607 51,806
IT & Entertainment Products 7,550 11,977 26,292
Healthcare 10,072 6,800 15,441
Food & Beverage 7,428 5,387 12,827
Environmental 2,831 2,759 5,447
38,615 37,530 111,813
Amortisation of intangible assets (2,153) (145) (1,261)
Operating exceptional items (4,187) (1,376) (15,967)
Operating profit 32,275 36,009 94,585
Of which acquisitions contributed 2,451 1,656 9,596
5. Exceptional Items
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Sept. 30 Sept. 31 March
2005 2004 2005
€'000 €'000 €'000
Litigation and restructuring costs 4,187 1,376 15,967
Foreign exchange losses on intercompany
financing loans 1,145 2,572 4,809
------------------------------------
5,332 3,948 20,776
Litigation costs totalled €4.187 million and relate to legal costs being
incurred in relation to the Pihsiang and Fyffes legal cases.
Certain intercompany loans had been treated under Irish GAAP as part of net
investment in foreign operations and foreign exchange gains or losses arising on
these loans had been recognised directly in reserves. On transition from Irish
GAAP, certain of these loans between fellow subsidiaries do not qualify under
IFRS as part of net investment in foreign operations and therefore gains or
losses on these loans must be recognised in the Income Statement.
The financial impact of the above is a charge to the Income Statement of €1.145
million for the six months ended 30 September 2005 (six months ended 30
September 2004: charge of €2.572 million) in respect of foreign exchange losses
and the amounts are included in exceptional items.
The majority of the intercompany balances which gave rise to these accounting
charges (previously taken to reserves) were eliminated during the year ended 31
March 2005 and the half year ended 30 September 2005 so as to eliminate
accounting volatility from 30 September 2005 onwards.
6. 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
2005 2004 2005
€'000 €'000 €'000
Profit after taxation and minority interests 29,197 33,822 87,760
Amortisation of intangible assets 2,153 145 1,261
Tax credit on amortisation of intangible
assets (258) - -
Exceptional items 5,332 3,948 20,776
Adjusted profit after taxation and minority
interests 36,424 37,915 109,797
Basic earnings per ordinary share cent cent cent
Basic earnings per ordinary share 36.35c 42.31c 109.68c
Adjusted basic earnings per ordinary share* 45.34c 47.43c 137.22c
Weighted average number of ordinary shares in
issue during the period ('000) 80,327 79,932 80,018
Diluted earnings per ordinary share cent cent cent
Diluted earnings per ordinary share 35.49c 41.43c 107.16c
Adjusted diluted earnings per ordinary share* 44.28c 46.44c 134.07c
Diluted weighted average number of ordinary
shares ('000) 82,258 81,635 81,898
*adjusted to exclude amortisation of intangible assets and exceptional items.
7. Dividends
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Sept. 30 Sept. 31 March
2005 2004 2005
€'000 €'000 €'000
Interim dividend 2004/2005 of 13.51
cent per share - - 10,802
Proposed final dividend 2004/2005
of 23.75 cent per share
(2003/2004: 20.65 cent per share) 19,070 16,824 16,824
Additional dividend/dividend
attaching to shares bought-back 3 (423) (414)
----------------------------------------
19,073 16,401 27,212
On 4 November 2005, the Board approved an interim dividend of 15.54 cent per
share (2004/2005 interim dividend: 13.51 cent per share). These interim accounts
do not reflect this dividend payable.
8. Analysis of Net Debt
Unaudited Unaudited Audited
30 Sept. 30 Sept. 31 March
2005 2004 2005
€'000 €'000 €'000
Non-current assets:
Derivative financial instruments 9,086 - -
Current assets:
Derivative financial instruments 519 - -
Cash and term deposits 287,817 325,488 353,304
-------------------------------------
288,336 325,488 353,304
Non-current liabilities:
Interest-bearing loans and borrowings (11,568) (17,434) (11,550)
Derivative financial instruments (19,306) - -
Unsecured Notes due 2008 to 2016 (297,474) (305,436) (305,094)
-------------------------------------
(328,348) (322,870) (316,644)
Current liabilities:
Interest-bearing loans and borrowings (63,568) (28,642) (45,553)
Derivative financial instruments (184) - -
------------------------------------
(63,752) (28,642) (45,553)
Net debt (94,678) (26,024) (8,893)
Including Group share of joint ventures'
net debt (563) (1,149) (701)
Note:
The comparative financial information at 30 September 2004 and 31 March 2005
have been restated on an IFRS basis, with the exception of IAS 32 and IAS 39
which were implemented from 1 April 2005. This impacts the comparison of Group
net debt which, on a comparable basis, was €93.606 million at 30 September 2005.
9. Impact of Adoption of IAS 32 & 39 - Financial Instruments
As permitted under IFRS 1, the Group applied hedge accounting in accordance with
Irish GAAP for the year ended 31 March 2005 and adopted IAS 32 and IAS 39 from 1
April 2005. The effect of adopting IAS 32 and IAS 39 on the balance sheet of the
Group at 1 April 2005 is shown in the table below:
IFRS Effect of IFRS
31 March adoption of 1 April
2005 IAS 32 & 39 2005
€'000 €'000 €'000
Non-current assets 521,185 9,006 530,191
Current assets 887,543 - 887,543
Total assets 1,408,728 9,006 1,417,734
Equity 492,219 (1,689) 490,530
Non-current liabilities 363,817 10,695 374,512
Current liabilities 552,692 - 552,692
Total liabilities 916,509 10,695 927,204
Total equity and liabilities 1,408,728 9,006 1,417,734
Included within non-current assets and non-current liabilities are €8.776
million and €8.934 million respectively in relation to the fair value of
interest rate contracts entered into by the Group to swap floating rate assets
and liabilities into fixed rate assets and liabilities. The balance of €0.158
million is included within equity and deferred tax.
The Group uses cross currency interest rate swaps, interest rate swaps and
currency swaps to hedge interest rate and currency risks in relation to the
Group's Unsecured Notes due 2008/11 and 2014/16. The Group's non-current
liabilities have been increased by €29.816 million to reflect the fair value of
these derivatives and reduced by €28.055 million to reflect the adjustment of
the carrying amount of the Group's Unsecured Notes due 2008/11 and 2014/16 in
accordance with fair value hedge accounting rules. The balance of €1.761 million
has been included within equity and deferred tax.
10. Distribution of Interim Report
This announcement and further information on DCC is available at the Company's
website www.dcc.ie. A printed copy of this report is being posted to
shareholders and will be available to the public at the Company's registered
office at DCC House, Stillorgan, Blackrock, Co. Dublin, Ireland.
This information is provided by RNS
The company news service from the London Stock Exchange
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