Interim Results Announcement

RNS Number : 8331V

DCC PLC

09 November 2010

 



Interim Results for the Six Months ended 30 September 2010

RESULTS HIGHLIGHTS
	€		Change on prior year
			Reported	Constant currency†
Revenue	3,965.8m		+41.2%	+37.3%
Operating profit*	67.9m		+20.0%	+16.5%
Profit before net exceptional items, amortisation of intangible assets and tax	60.4m		+17.6%	+13.9%
Adjusted earnings per share*	57.65 cent		+15.1%	+11.5%
Dividend per share	26.11 cent		+10.0%
Operating cash flow	59.8m    (2009: €102.1m)
Net debt	98.6m    (2009: €87.7m)
† all constant currency figures quoted in this report are based on retranslating 2010/11 figures at prior year translation rates * excluding net exceptionals and amortisation of intangible assets

DCC, the business support services group, today announced its results for the six months

ended 30 September 2010.

Commenting on the results Tommy Breen, Chief Executive, said:

"DCC had a very strong first half with all five divisions reporting operating profit growth.  Group operating profit increased by 16.5% and profit before net exceptional items, amortisation of intangible assets and tax increased by 13.9%, both on a constant currency basis.  Adjusted earnings per share increased by 11.5%, also on a constant currency basis. 

The Board has decided to pay an interim dividend of 26.11 cent per share, representing a 10% increase on the interim dividend paid in the prior year.

DCC Energy, DCC's largest division, achieved excellent operating profit growth with particularly strong performances in its Oil Distribution and Fuel Card businesses.  Operating profit in DCC SerCom was modestly ahead of the prior year, driven by mid single digit growth in SerCom Distribution and specifically by an excellent result in the Reseller distribution business in Britain.  As anticipated, DCC Healthcare, DCC Environmental and DCC Food & Beverage each reported a particularly strong increase in operating profit.

As DCC enters its seasonally more significant second half, the Group now expects a mid to high single digit percentage increase in operating profit for the year to 31 March 2011 and an adjusted earnings per share increase of approximately 5%, both on a constant currency basis.  This represents a modest improvement on previous guidance and continues to be framed against an assumption that the weather pattern will not be as favourable as in the prior year, which was particularly cold.

On a reported basis, based on an average exchange rate for the year of Stg£0.86 = €1 (compared to Stg£0.84 = €1 at the time of the previous guidance on 16 July 2010), the Group continues to expect an operating profit increase of approximately 10% and a mid to high single digit percentage increase in adjusted earnings per share.

DCC has a record over many years of generating shareholder value through augmenting organic growth with the successful identification, execution and integration of acquisitions in its key developmental areas.  The Group's financial position remains very strong, leaving it well positioned to pursue acquisition opportunities arising at this time." 

For reference, please contact:

Tommy Breen, Chief Executive                                                                     Tel: [phone]

Fergal O'Dwyer, Chief Financial Officer                                  Email:[e-mail]

Redmond McEvoy, Investor Relations Manager                                                        www.dcc.ie

Interim Management Report

For the six months ended 30 September 2010

Results

A summary of the results for the six months ended 30 September 2010 is as follows:

	€'m		Change on prior year
			Reported		Constant currency†
Revenue	3,965.8		+41.2%		+37.3%
Operating profit*
DCC Energy	30.1		+19.1%		+14.8%
DCC SerCom	14.3		+4.0%		+1.3%
DCC Healthcare	11.1		+28.5%		+25.8%
DCC Environmental	7.0		+49.5%		+43.9%
DCC Food & Beverage	5.4		+26.4%		+26.0%
Group operating profit*	67.9		+20.0%		+16.5%
Finance costs (net)	(7.4)
Share of associates' profits after tax	(0.1)
Profit before net exceptionals, amortisation of intangible assets and tax	60.4		+17.6%		+13.9%
Net exceptional charge	(8.2)
Amortisation of intangible assets	(5.0)
Profit before tax	47.2
Taxation	(12.6)
Profit after tax	34.6
Adjusted earnings per share*	57.65 cent		+15.1%		+11.5%
Dividend per share	26.11 cent		+10.0%
Operating cash flow	59.8m     (2009: €102.1m)
Net debt at 30 September 2010	98.6m       (2009: €87.7m)
† all constant currency figures quoted in this report are based on retranslating 2010/11 figures at prior year translation rates * excluding net exceptionals and amortisation of intangible assets

Revenue

Group revenue increased by 37.3%, on a constant currency basis, primarily as a result of acquisitions, particularly those in DCC Energy which had a 31.0% increase in sales volumes.  Excluding DCC Energy, Group revenue was 11.0% ahead of the prior year on a constant currency basis. 

Operating profit performance

DCC had a very strong first half with all five divisions reporting operating profit growth.  Group operating profit increased by 16.5% on a constant currency basis.

Approximately 78% of the Group's operating profit in the period was denominated in sterling.  The average exchange rate at which sterling profits were translated during the period was Stg£0.8476 = €1, compared to an average translation rate of Stg£0.8809 = €1 for the same period in the prior year, an appreciation of 4% which resulted in a positive translation impact on Group operating profit of €2.0 million.  Consequently on a reported basis operating profit increased by 20.0%.

DCC Energy, DCC's largest division, achieved excellent operating profit growth with particularly strong performances in its Oil Distribution and Fuel Card businesses.  Operating profit in DCC SerCom was modestly ahead of the prior year, driven by mid single digit growth in SerCom Distribution and specifically by an excellent result in the Reseller distribution business in Britain.  As anticipated, DCC Healthcare, DCC Environmental and DCC Food & Beverage each reported a particularly strong increase in operating profit.

The benefits of cost efficiencies achieved in the prior year were maintained, with operating costs held at the same level as in the six months ended 30 September 2009 (on a constant currency basis and adjusted for the impact of acquisitions and disposals) notwithstanding the organic increase in revenues in many of the Group's businesses. 

Finance costs (net)

Net finance costs for the period increased to €7.4 million (2009: €5.2 million) primarily as a result of higher average net debt levels and the additional interest costs associated with the €284 million of private placement debt which the Group raised in March 2010 to fund future acquisitions and development.  The Group's net debt averaged €155 million, compared to €118 million during the six months ended 30 September 2009. 

Profit before net exceptionals, amortisation of intangible assets and tax

Profit before net exceptionals, amortisation of intangible assets and tax of €60.4 million increased by 13.9% on a constant currency basis (an increase of 17.6% on a reported basis). 

Net exceptional charge and amortisation of intangible assets

The Group incurred a net exceptional charge before tax of €8.2 million as follows:

	Total
	€'m
Loss on disposal of subsidiaries	(0.3)
IAS 21 adjustment for foreign exchange relating to subsidiaries disposed of	(3.1)
Acquisition costs	(1.7)
Reorganisation costs and other	(3.1)
Total	(8.2)

During the first half DCC Healthcare disposed of its Mobility & Rehabilitation businesses and DCC Food & Beverage disposed of one of its smaller Irish businesses. The net cash impact of these transactions (€28.5 million) resulted in a pre-tax loss on their book carrying values, including goodwill, of €0.3 million.  These businesses accounted for less than 1% of the DCC Group's operating profit for the year ended 31 March 2010. 

IAS 21 requires that any foreign exchange translation differences which have been written off directly to reserves in prior years are recycled through the Income Statement on the disposal of the related asset.  The amount of such differences relating to the above disposals, which did not have any impact on the Group's total equity, was €3.1 million.

IFRS 3 (revised) requires that the professional and tax costs (such as stamp duty) relating to the evaluation and completion of an acquisition are expensed in the Income Statement whereas previously they were capitalised as part of the acquisition cost.  During the first half these costs amounted to €1.7 million.

The balance of the net exceptional charge relates primarily to restructuring costs arising from the integration of recently acquired businesses.  

The charge for the amortisation of intangible assets increased to €5.0 million (2009: €2.6 million).

Taxation

Due to the continued increasing proportion of profits arising in Britain and continental Europe, the effective tax rate for the Group increased modestly to 20% compared to 19% for the six months ended 30 September 2009 and for the full year ended 31 March 2010. 

Adjusted earnings per share

Adjusted earnings per share of 57.65 cent increased by 11.5% on a constant currency basis (an increase of 15.1% on a reported basis). 

Interim dividend increase of 10.0%

The Board has decided to increase the interim dividend by 10.0% to 26.11 cent per share.  This dividend will be paid on 3 December 2010 to shareholders on the register at the close of business on 19 November 2010.

Cash flow

In recent years the Group has achieved a significant reduction in net working capital days and this trend continued in the first half, resulting in net working capital days at 30 September 2010 of 5.9 days, which compared favourably with 10.0 days at 30 September 2009.  This decrease was primarily driven by a further reduction in debtor days to 34.0 from 36.8.  The cash flow generated by the Group for the six months ended 30 September 2010 can be summarised as follows:

	2010 €'m	2010 €'m	2009 €'m	2009 €'m
Operating profit		67.9		56.6
(Increase)/decrease in working capital:
DCC Energy	11.5		42.9
DCC SerCom	(39.7)		(25.1)
DCC Healthcare	(6.7)		(2.1)
DCC Environmental	(0.9)		(0.5)
DCC Food & Beverage	(0.2)	(36.0)	5.7	20.9
Depreciation and other		27.9		24.6
Operating cash flow		59.8		102.1
Capital expenditure (net)		(27.4)		(19.1)
Interest and tax paid		(24.2)		(12.5)
Free cash flow		8.2		70.5

Acquisition and Capital Expenditure

Committed acquisition and capital expenditure amounted to €89.4 million, as follows:

	Acquisitions	Capex	Total
	€'m	€'m	€'m
DCC Energy	37.0	15.0	52.0
DCC SerCom	24.4	4.8	29.2
DCC Healthcare	0.6	1.9	2.5
DCC Environmental	-	4.7	4.7
DCC Food & Beverage	-	1.0	1.0
Total	62.0	27.4	89.4

Committed acquisition expenditure amounted to €62.0 million in the six months ended 30 September 2010.  The cash outflow on acquisitions (during the period) was €42.2 million.

In May 2010, as previously announced, DCC Energy acquired Pearts, a medium sized oil distribution business operating from four locations and selling 190 million litres of fuel in the north east of England, for consideration of €15 million on a cash free/debt free basis.  In June 2010, also as previously announced, DCC Energy acquired two oil importation and storage terminals in Inverness and Aberdeen in Scotland for consideration of €19 million.  These terminals are being used to provide storage and throughput services to major oil companies who will continue to sell fuel directly into the market place.  This acquisition enhances DCC Energy's position in the Scottish market by creating opportunities for expansion into marine fuels.

In August 2010, DCC SerCom announced the acquisition of Comtrade SA, a leading distributor of consumer electronic and audio visual products to the retail sector in France, for an initial cash free/debt free consideration of €11.4 million.  This acquisition was completed in October 2010.  Comtrade, which is based in Paris, distributes a broad range of products including iPod and MP3 docking stations, speakers and portable hard drives from suppliers such as Altec Lansing, Western Digital and iHome to major retailers such as Carrefour, E.Leclerc, Auchan and FNAC and to a wide range of internet, supermarket and specialist electronics retailers.  This acquisition is a further step in DCC SerCom's strategy to extend its product, customer and market coverage in Retail distribution.  In September 2010, DCC SerCom completed the acquisition of Codework Limited, a distributor of enterprise software which, although small, further extends the geographic reach of DCC SerCom's Enterprise distribution activities into Britain.

Capital expenditure in the first half of €27.4 million (2009: €19.1 million) compares to a depreciation charge of €25.9 million. DCC Energy's capital expenditure of €15.0 million, which was in line with depreciation, comprised a mixture of replacement spend and investment to support the ongoing development of new business.  Since 30 September 2010, DCC SerCom's UK Retail distribution business has agreed to purchase a 250,000 square feet warehouse near Wellingborough, north of London.  The total cost of the warehouse including fit-out will be approximately €15 million.  This investment allows Gem Distribution to market its third party logistics services to software and DVD publishers from a modern, customised facility within easy reach of the south east of England.

Financial Strength

DCC's financial position remains very strong.  At 30 September 2010 the Group had net debt of €98.6 million and total equity of €852.8 million.  DCC has significant cash resources and relatively long term debt maturities.  Substantially all of the Group's debt has been raised in the US private placement market with an average credit margin of 1.23% over floating Euribor/Libor and an average maturity of 6.5 years from 30 September 2010.

Outlook

As DCC enters its seasonally more significant second half, the Group now expects a mid to high single digit percentage increase in operating profit for the year to 31 March 2011 and an adjusted earnings per share increase of approximately 5%, both on a constant currency basis.  This represents a modest improvement on previous guidance and continues to be framed against an assumption that the weather pattern will not be as favourable as in the prior year, which was particularly cold.

On a reported basis, based on an average exchange rate for the year of Stg£0.86 = €1 (compared to Stg£0.84 = €1 at the time of the previous guidance on 16 July 2010), the Group continues to expect an operating profit increase of approximately 10% and a mid to high single digit percentage increase in adjusted earnings per share.

DCC has a record over many years of generating shareholder value through augmenting organic growth with the successful identification, execution and integration of acquisitions in its key developmental areas.  The Group's financial position remains very strong, leaving it well positioned to pursue acquisition opportunities arising at this time.

Operating review

 

DCC Energy			Change on prior year
	2010	2009	Reported	Constant Currency
Revenue	€2,808.6m	€1,788.2m	+57.1%	+52.2%
Operating profit	€30.1m	€25.2m	+19.1%	+14.8%

DCC Energy had an excellent first half with operating profit 14.8% ahead of the prior year on a constant currency basis, driven by particularly strong performances in the Oil Distribution and Fuel Card businesses. 

DCC Energy sold 3.3 billion litres of product during the period, an increase of 31.0% over the first half of the prior year.  Organically volumes grew by 1.2%. 

The oil distribution business in Britain generated excellent profit growth as it continues to benefit from the integration, consequent synergies and improved performance of recent acquisitions.  During the period the business again made good progress in the achievement of its development objectives including the acquisitions of Pearts, a 190 million litre oil distribution business in the north east of England (completed May 2010) and the acquisition of two oil importation and storage terminals in Inverness and Aberdeen in Scotland (completed June 2010).  DCC is the clear market leader in oil distribution in Britain with a market share of approximately 14%, over 190 facilities and in excess of 450,000 customers and is therefore well positioned to further consolidate this fragmented market. 

DCC Energy's oil distribution businesses in Denmark and Austria performed very strongly during the first half and should provide a platform for further development in continental Europe over time.  Whilst economic conditions remained difficult in Ireland, the oil distribution business stabilised and benefited from a lower cost base.

The LPG Distribution business grew its volumes organically by 4.7%, although profitability was impacted by a less favourable product pricing environment. 

The Fuel Card business had a strong first half achieving excellent operating profit growth.  The business achieved good organic volume growth and has successfully integrated the fuel card business acquired as part of the acquisition of Brogans (in December 2009).

As DCC Energy enters the seasonally more significant second half of its year, it expects to achieve strong constant currency operating profit growth for the year to 31 March 2011.  This expectation continues to be framed against an assumption that the weather pattern will not be as favourable as in the prior year, which was particularly cold. 

DCC SerCom			Change on prior year
	2010	2009	Reported	Constant Currency
Revenue	€799.2m	€665.1m	+20.2%	+17.6%
Operating profit	€14.3m	€13.7m	+4.0%	+1.3%
Operating margin	1.8%	2.1%

DCC SerCom had a satisfactory performance in the first half with constant currency operating profit modestly ahead of the prior year, reflecting another strong performance in SerCom Distribution (where operating profit, on a constant currency basis, was ahead of the prior year by 5.5%) offset by the anticipated decline in profit in the Supply Chain Management business.

While DCC SerCom's Retail distribution business generated good revenue growth, operating profit was held back by weakness in Ireland and by the investment undertaken in the development of new fulfilment services in Britain.  In France, notwithstanding a sluggish market environment, the Retail distribution business performed well and benefited from growth in revenue in consumer electronic products.  In August 2010, the acquisition of Comtrade SA was announced.  Comtrade is a leading distributor of consumer electronic and audio visual products, which has further strengthened DCC SerCom's market position in the retail sector in France.

DCC SerCom's Reseller distribution business achieved excellent revenue and profit growth in the first half.  The business benefited from the continued expansion of its PC business both through the introduction of new vendors and from a focus on providing sales, marketing and fulfilment solutions into the converging mobile phone and IT channels. The business also benefited from recent investments to enhance capability in the audio visual and communications product sectors.

DCC SerCom's Enterprise distribution business traded in line with expectations and strengthened its market position with key strategic suppliers.  It extended its business into Britain with the acquisition of Codework, a small distributor of enterprise software, in September 2010.

As anticipated, operating profit declined in DCC SerCom's Supply Chain Management business, as it continued to be affected by the change in the supply chain strategy of its largest customer.

For the seasonally more important second half of its year, it is expected that SerCom Distribution will benefit from new product releases in the games sector and from the contribution of Comtrade and Codework.  Consequently, SerCom Distribution is expected to report strong profit growth for the full year which will be offset partially by an anticipated decline in profit in the Supply Chain Management business.  Overall, DCC SerCom anticipates good constant currency profit growth for the year to 31 March 2011.

DCC Healthcare			Change on prior year
	2010	2009	Reported	Constant Currency
Revenue	€166.3m	€163.7m	+1.6%	-1.1%
Operating profit	€11.1m	€8.7m	+28.5%	+25.8%
Operating margin	6.7%	5.3%

Continuing activities (excluding Mobility & Rehabilitation)
Revenue	€153.9m	€136.4m	+12.9%	+9.9%
Operating profit	€10.4m	€8.7m	+20.5%	+17.8%
Operating margin	6.8%	6.3%

DCC Healthcare achieved excellent constant currency operating profit growth of 17.8% in the first half on its continuing activities.  As announced in June 2010, DCC Healthcare successfully disposed of its Mobility & Rehabilitation businesses and therefore the results for continuing activities, as set out above, exclude the revenue and operating profit contribution from those activities. This disposal enables DCC Healthcare to bring greater focus to the development of its Hospital Supplies & Services and Health & Beauty Solutions businesses and has improved the margin and return on capital employed characteristics of the division.

In Ireland, government spending constraints continued to increase price pressure in the public healthcare system.  DCC Hospital Supplies & Services has responded to this through stringent cost control and the business performed well benefiting from contributions from bolt-on acquisitions completed in the prior year.  In Britain, DCC Healthcare's value added distribution services business is continuing to invest in enhancing its management and operational capacity in preparation for the roll out of its services under the London Procurement Programme framework agreement.

DCC Health & Beauty Solutions generated excellent revenue and operating profit growth in the first half benefiting from investment in facilities and in technical and business development resources in recent years.  Demand in the health and beauty market has been robust and revenue growth was achieved across all sectors, driven by product development with existing customers and new customer wins.  The business also expanded its continental European customer base during the first half.

The trading environment in the Irish hospital sector remains challenging; however, this is expected to create new opportunities for DCC Healthcare in the provision of outsourced services to hospitals.  DCC Healthcare expects to generate good constant currency operating profit growth from its continuing activities for the year to 31 March 2011.

DCC Environmental			Change on prior year
	2010	2009	Reported	Constant Currency
Revenue	€53.4m	€36.0m	+48.2%	+43.6%
Operating profit	€7.0m	€4.7m	+49.5%	+43.9%
Operating margin	13.1%	13.0%

The results in the first half in DCC Environmental benefited from the reorganisation of and the increased investment in its British operations (announced in January 2010) which resulted in the consolidation of 100% of the operating profit of the William Tracey Group compared to only 50% in the first half of the prior year.  

The business in Britain performed satisfactorily in the first half.  In Scotland, the business invested in a new material recycling facility on its site in Glasgow which will assist in further reducing the proportion of material sent to landfill.  In Nottingham, the business has invested in equipment which allows it to increase the amount of material processed which is suitable for use as a fuel by the cement industry. 

While the market backdrop in Ireland remained challenging, continued tight control of costs and some new business wins resulted in profit growth in the period. 

DCC Environmental continues to anticipate that it will report a strong increase in constant currency operating profit for the year to 31 March 2011. 

DCC Food & Beverage			Change on prior year
	2010	2009	Reported	Constant Currency
Revenue	€138.3m	€155.7m	-11.2%	-11.9%
Operating profit	€5.4m	€4.3m	+26.4%	+26.0%
Operating margin	3.9%	2.7%

Operating profit in DCC Food & Beverage for the six months ended 30 September 2010 increased by 26.0% on a constant currency basis.  Like for like revenue was 4.1% lower than the prior year after adjusting for the sale of a small subsidiary and for a change in the trading arrangements with a logistics customer to a fee based service model.  Volumes in Indulgence Foods declined but this was partly offset by an increase in Healthfood revenues. 

In a difficult trading environment, there is an ongoing focus on introducing new products and this, along with a reduction in operating costs, has been the driver of operating profit growth in the first half in the Healthfood and Indulgence businesses.  The wine business in Britain performed well with new products and new customer listings driving profit growth ahead of the prior year.

The Frozen and Chilled Logistics business performed broadly in line with the prior year.

DCC Food & Beverage anticipates strong operating profit growth in the year to 31 March 2011, notwithstanding a continuation of the difficult trading environment, through an ongoing focus on cost management.

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.

Principal Risks and Uncertainties

The Board is responsible for the Group's risk management systems, which are designed to identify, manage and mitigate potential material risks to the achievement of the Group's strategic and business objectives.  Details of the principal strategic, operational, compliance and financial risks facing the Group are set out on pages 50 to 51 of the 2010 Annual Report.  These risks continue to be the principal risks and uncertainties facing the Group for the remaining six months of the financial year.

Presentation of results and dial-in facility

There will be a presentation of these results to analysts and investors/fund managers in Dublin 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:            [phone]

International:   [phone]

Passcode:       183 772

This announcement and further information on DCC is available at www.dcc.ie

 Group Income Statement

		Unaudited 6 months ended				Unaudited 6 months ended				Audited year ended
		30 September 2010				30 September 2009				31 March 2010
		Pre exceptionals	Exceptionals (note 5)	Total		Pre exceptionals	Exceptionals	Total		Pre exceptionals	Exceptionals	Total
	Notes	€'000	€'000	€'000		€'000	€'000	€'000		€'000	€'000	€'000
Revenue	4	3,965,771	-	3,965,771		2,808,794	-	2,808,794		6,724,971	-	6,724,971
Cost of sales		(3,632,966)	-	(3,632,966)		(2,522,068)	-	(2,522,068)		(6,054,577)	-	(6,054,577)
Gross profit		332,805	-	332,805		286,726	-	286,726		670,394	-	670,394
Administration expenses		(122,795)	-	(122,795)		(114,487)	-	(114,487)		(234,181)	-	(234,181)
Selling and distribution expenses		(148,632)	-	(148,632)		(118,208)	-	(118,208)		(251,118)	-	(251,118)
Other operating income		7,588	-	7,588		4,832	827	5,659		9,703	827	10,530
Other operating expenses		(1,095)	(7,573)	(8,668)		(2,293)	(3,272)	(5,565)		(1,965)	(10,591)	(12,556)
Operating profit before amortisation of intangible assets		67,871	(7,573)	60,298		56,570	(2,445)	54,125		192,833	(9,764)	183,069
Amortisation of intangible assets		(5,042)	-	(5,042)		(2,552)	-	(2,552)		(6,150)	-	(6,150)
Operating profit	4	62,829	(7,573)	55,256		54,018	(2,445)	51,573		186,683	(9,764)	176,919
Finance costs		(11,899)	(602)	(12,501)		(9,203)	(2,034)	(11,237)		(17,983)	(1,285)	(19,268)
Finance income		4,550	-	4,550		4,019	-	4,019		7,098	-	7,098
Share of associates' (loss)/profit after tax		(146)	-	(146)		(32)	-	(32)		152	-	152
Profit before tax		55,334	(8,175)	47,159		48,802	(4,479)	44,323		175,950	(11,049)	164,901
Income tax expense		(11,208)	(1,354)	(12,562)		(9,253)	-	(9,253)		(33,207)	-	(33,207)
Profit after tax for the financial period		44,126	(9,529)	34,597		39,549	(4,479)	35,070		142,743	(11,049)	131,694
Profit attributable to:
Equity holders of the Company				34,218				34,633				130,803
Minority interest				379				437				891
Profit after tax for the financial period				34,597				35,070				131,694
Earnings per ordinary share
Basic	6			41.19c				42.13c				158.76c
Diluted	6			41.05c				41.91c				157.92c
Adjusted earnings per ordinary share
Basic	6			57.65c				50.07c				177.98c
Diluted	6			57.46c				49.80c				177.04c

Group Statement of Comprehensive Income

		Unaudited		Unaudited		Audited
		6 months		6 months		year
		ended		ended		ended
		30 Sept.		30 Sept.		31 March
		2010		2009		2010
		€'000		€'000		€'000
Profit for the period		34,597		35,070		131,694
Other comprehensive income:
Currency translation effects		25,278		11,528		23,353
Group defined benefit pension obligations:
- actuarial (loss)/gain		(11,262)		1,360		(1,595)
- movement in deferred tax asset		1,433		393		861
Gains relating to cash flow hedges		2,197		1,207		986
Movement in deferred tax liability on cash flow hedges		(437)		(152)		(107)
Other comprehensive income for the period, net of tax		17,209		14,336		23,498
Total comprehensive income for the period		51,806		49,406		155,192
Attributable to:
Equity holders of the Company		51,427		48,969		154,212
Minority interest		379		437		980
		51,806		49,406		155,192

Group Balance Sheet

		Unaudited		Unaudited		Audited
		30 Sept.		30 Sept.		31 March
		2010		2009		2010
	Notes	€'000		€'000		€'000
ASSETS
Non-current assets
Property, plant and equipment		385,027		319,875		358,096
Intangible assets		625,379		466,161		595,090
Investments in associates		2,247		2,176		2,393
Deferred income tax assets		9,961		7,224		12,166
Derivative financial instruments		136,017		81,778		101,921
		1,158,631		877,214		1,069,666
Current assets
Inventories		254,940		219,354		234,898
Trade and other receivables		873,241		646,976		922,019
Derivative financial instruments		3,304		1,036		1,343
Cash and cash equivalents		682,046		446,428		714,917
		1,813,531		1,313,794		1,873,177
Total assets		2,972,162		2,191,008		2,942,843
EQUITY
Capital and reserves attributable to equity holders of the Company
Equity share capital		22,057		22,057		22,057
Share premium account		124,687		124,687		124,687
Other reserves - share options	8	9,704		8,518		9,148
Cash flow hedge reserve	8	1,465		(119)		(295)
Foreign currency translation reserve	8	(104,494)		(141,508)		(129,772)
Other reserves	8	1,400		1,400		1,400
Retained earnings		796,024		725,469		806,452
		850,843		740,504		833,677
Minority interest		1,976		3,914		3,249
Total equity		852,819		744,418		836,926
LIABILITIES
Non-current liabilities
Borrowings		838,077		470,914		793,663
Derivative financial instruments		21,042		31,603		19,331
Deferred income tax liabilities		21,188		14,327		23,479
Retirement benefit obligations	10	34,789		28,431		23,690
Provisions for liabilities and charges		13,385		4,813		11,429
Deferred acquisition consideration		59,027		12,830		49,351
Government grants		2,847		2,061		3,678
Total non-current liabilities		990,355		564,979		924,621
Current liabilities
Trade and other payables		981,599		694,683		1,039,641
Current income tax liabilities		67,395		60,603		71,699
Borrowings		59,715		113,236		58,169
Derivative financial instruments		1,125		1,199		557
Provisions for liabilities and charges		2,217		7,147		6,372
Deferred acquisition consideration		16,937		4,743		4,858
Total current liabilities		1,128,988		881,611		1,181,296
Total liabilities		2,119,343		1,446,590		2,105,917
Total equity and liabilities		2,972,162		2,191,008		2,942,843
Net debt	9	(98,592)		(87,710)		(53,539)

Group Statement of Changes in Equity

For the six months ended 30 September 2010		Equity	Share		Other	Equity
		share	premium	Retained	reserves	interest	Minority	Total
		capital	account	earnings	(note 8)	of parent	interest	equity
		€'000	€'000	€'000	€'000	€'000	€'000	€'000
At beginning of period		22,057	124,687	806,452	(119,519)	833,677	3,249	836,926
Profit for the period		-	-	34,218	-	34,218	379	34,597
Currency translation		-	-	-	25,278	25,278	-	25,278
Group defined benefit pension obligations:
- actuarial loss		-	-	(11,262)	-	(11,262)	-	(11,262)
- movement in deferred tax asset		-	-	1,433	-	1,433	-	1,433
Gains relating to cash flow hedges		-	-	-	2,197	2,197	-	2,197
Movement in deferred tax liability on cash flow hedges		-	-	-	(437)	(437)	-	(437)
Total comprehensive income		-	-	24,389	27,038	51,427	379	51,806
Re-issue of treasury shares (net of expenses)		-	-	1,479	-	1,479	-	1,479
Share based payment		-	-	-	556	556	-	556
Dividends		-	-	(36,296)	-	(36,296)	-	(36,296)
Other movements in minority interest		-	-	-	-	-	(1,652)	(1,652)
At end of period		22,057	124,687	796,024	(91,925)	850,843	1,976	852,819

For the six months ended 30 September 2009		Equity	Share		Other	Equity
		share	premium	Retained	reserves	interest	Minority	Total
		capital	account	earnings	(note 8)	of parent	interest	equity
		€'000	€'000	€'000	€'000	€'000	€'000	€'000
At beginning of period		22,057	124,687	720,909	(145,003)	722,650	3,581	726,231
Profit for the period		-	-	34,633	-	34,633	437	35,070
Currency translation		-	-	-	11,528	11,528	-	11,528
Group defined benefit pension obligations:
- actuarial gain		-	-	1,360	-	1,360	-	1,360
- movement in deferred tax asset		-	-	393	-	393	-	393
Gains relating to cash flow hedges		-	-	-	1,207	1,207	-	1,207
Movement in deferred tax liability on cash flow hedges		-	-	-	(152)	(152)	-	(152)
Total comprehensive income		-	-	36,386	12,583	48,969	437	49,406
Re-issue of treasury shares (net of expenses)		-	-	831	-	831	-	831
Share based payment		-	-	-	711	711	-	711
Dividends		-	-	(32,657)	-	(32,657)	-	(32,657)
Other movements in minority interest		-	-	-	-	-	(104)	(104)
At end of period		22,057	124,687	725,469	(131,709)	740,504	3,914	744,418

For the year ended 31 March 2010		Equity	Share		Other	Equity
		share	premium	Retained	reserves	interest	Minority	Total
		capital	account	earnings	(note 8)	of parent	interest	equity
		€'000	€'000	€'000	€'000	€'000	€'000	€'000
At beginning of period		22,057	124,687	720,909	(145,003)	722,650	3,581	726,231
Profit for the period		-	-	130,803	-	130,803	891	131,694
Currency translation		-	-	-	23,264	23,264	89	23,353
Group defined benefit pension obligations:
- actuarial loss		-	-	(1,595)	-	(1,595)	-	(1,595)
- movement in deferred tax asset		-	-	861	-	861	-	861
Gains relating to cash flow hedges		-	-	-	986	986	-	986
Movement in deferred tax liability on cash flow hedges		-	-	-	(107)	(107)	-	(107)
Total comprehensive income		-	-	130,069	24,143	154,212	980	155,192
Re-issue of treasury shares (net of expenses)		-	-	7,657	-	7,657	-	7,657
Share based payment		-	-	-	1,341	1,341	-	1,341
Dividends		-	-	(52,183)	-	(52,183)	-	(52,183)
Other movements in minority interest		-	-	-	-	-	(1,312)	(1,312)
At end of period		22,057	124,687	806,452	(119,519)	833,677	3,249	836,926

Group Cash Flow Statement

		Unaudited		Unaudited		Audited
		6 months		6 months		year
		ended		ended		ended
		30 Sept.		30 Sept.		31 March
		2010		2009		2010
		€'000		€'000		€'000
Cash flows from operating activities
Profit for the period		34,597		35,070		131,694
Add back non-operating (income)/expense
-  Tax		12,562		9,253		33,207
-  Share of loss/(profit) from associates		146		32		(152)
-  Net operating exceptionals		7,573		2,445		9,764
-  Net finance costs		7,951		7,218		12,170
Group operating profit before exceptionals		62,829		54,018		186,683
Share-based payments expense		556		711		1,341
Depreciation		25,908		21,468		46,956
Amortisation of intangible assets		5,042		2,552		6,150
Profit on disposal of property, plant and equipment		(491)		(88)		(1,515)
Amortisation of government grants		(318)		(129)		(800)
Other		2,244		2,666		(12,872)
(Increase)/decrease in working capital		(35,963)		20,919		71,814
Cash generated from operations		59,807		102,117		297,757
Exceptionals		(5,688)		(7,820)		(12,842)
Interest paid		(7,113)		(10,087)		(15,980)
Income tax paid		(19,035)		(4,473)		(20,548)
Net cash flows from operating activities		27,971		79,737		248,387
Investing activities
Inflows
Proceeds from disposal of property, plant and equipment		2,397		1,676		9,831
Government grants received		-		70		1,799
Proceeds on disposal of subsidiaries		28,503		-		-
Proceeds on disposal of associate		-		-		827
Interest received		1,983		2,051		3,507
		32,883		3,797		15,964
Outflows
Purchase of property, plant and equipment		(29,837)		(20,838)		(47,268)
Acquisition of subsidiaries		(38,713)		(19,621)		(129,515)
Deferred acquisition consideration paid		(3,447)		(4,073)		(4,127)
		(71,997)		(44,532)		(180,910)
Net cash flows from investing activities		(39,114)		(40,735)		(164,946)
Financing activities
Inflows
Re-issue of treasury shares		1,479		831		7,657
Increase in finance lease liabilities		-		131		1,035
Increase in interest-bearing loans and borrowings		815		21,693		293,568
		2,294		22,655		302,260
Outflows
Repayment of interest-bearing loans and borrowings		(13,529)		(1,680)		(43,424)
Repayment of finance lease liabilities		(975)		(453)		(618)
Dividends paid to equity holders of the Company		(36,296)		(32,657)		(52,183)
Dividends paid to minority interests		(196)		(245)		(275)
		(50,996)		(35,035)		(96,500)
Net cash flows from financing activities		(48,702)		(12,380)		205,760
Change in cash and cash equivalents		(59,845)		26,622		289,201
Translation adjustment		16,167		2,513		10,243
Cash and cash equivalents at beginning of period		674,961		375,517		375,517
Cash and cash equivalents at end of period		631,283		404,652		674,961
Cash and cash equivalents consists of:
Cash and short term bank deposits		682,046		446,428		714,917
Overdrafts		(50,763)		(41,776)		(39,956)
		631,283		404,652		674,961

Notes to the Group Condensed Interim Financial Statements

for the six months ended 30 September 2010

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 2010 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 judgments, 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 2010 and the comparative figures for the six months ended 30 September 2009 are unaudited and have not been reviewed by the Auditors.  The summary financial statements for the year ended 31 March 2010 represent an 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 2010 and are described in those financial statements on pages 78 to 86.

The following revised standard is mandatory for the first time for the financial year beginning 1 April 2010:

·        IFRS 3 Revised Business Combinations.  This standard establishes principles for how an acquirer recognises, measures and discloses in its financial statements the goodwill acquired in a business combination and the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree.  Contingent consideration is measured at fair value with subsequent changes recognised in the Income Statement.  Transaction costs, other than share and debt issue costs, are expensed as incurred.

The following interpretations or amended standards are mandatory for the first time for the financial year beginning 1 April 2010 but do not have any significant impact on the Group Condensed Interim Financial Statements:

·        IFRS 1 Revised First-time Adoption of International Financial Reporting Standards;

·        IFRS 2 (Amendment) Share-based Payments: Group Cash-Settled share-based Payment Transactions;

·        IAS 27 (Amendment) Consolidated and Separate Financial Statements;

·        IAS 32 (Amendment) Classification of Rights Issues;

·        IAS 39 (Amendment) Eligible Hedged Items;

·        IFRIC 17 Distributions of Non-cash Assets to Owners;

·        IFRIC 18 Transfers of Assets from Customers.

The Group has also adopted the Improvements to IFRS issued by the IASB.  This standard amends a number of other standards, basis of conclusions and guidance.  The improvements include changes in presentation, recognition and measurement plus terminology and editorial changes.  These amendments do not have a significant impact on the Group Condensed Interim Financial Statements.

3.         Reporting Currency

The Group's financial statements are prepared in euro denoted by the symbol €. The exchange rates used in translating sterling Balance Sheets and Income Statement amounts were as follows:

	6 months ended		6 months  ended		Year ended
	30 Sept. 2010		30 Sept. 2009		31 March  2010
	€1=Stg£		€1=Stg£		€1=Stg£
Balance Sheet (closing rate)	0.860		0.910		0.889
Income Statement (average rate)	0.848		0.881		0.887

Notes to the Group Condensed Interim Financial Statements

for the six months ended 30 September 2010

4.         Segmental Reporting

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.  The Group is primarily organised into five main operating segments: DCC Energy, DCC SerCom, DCC Healthcare, DCC Environmental and DCC Food & Beverage.

DCC Energy markets and sells oil products for commercial/industrial, transport and domestic use in Britain, Ireland and Continental Europe.  DCC Energy markets and sells liquefied petroleum gas for similar uses in Britain and Ireland.  DCC Energy also includes a fuel card services business.

 

DCC SerCom markets and sells a broad range of IT and consumer electronic products in Britain, Ireland and Continental Europe to computer resellers, high street retailers, computer superstores, on-line retailers and mail order companies.  DCC SerCom also includes a supply chain management business.

 

DCC Healthcare markets and sells medical, surgical, laboratory and intravenous pharmaceutical products and provides related value added services to the acute care, community care and scientific sectors in Ireland and Britain.  DCC Healthcare is also a leading provider of outsourced services to the health and beauty industry 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.  These include healthy foods, snackfoods, fresh coffee and wine to a broad range of catering, convenience store, food service and multiple grocer customers.  DCC Food & Beverage is also a leading provider of frozen food distribution 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 2010 of €2.972 billion were not materially different from the equivalent figure at 31 March 2010 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.

(a)           By operating segment
	Unaudited six months ended 30 September 2010

                                                                    DCC                  DCC                 DCC                DCC                    DCC Food

                                                                    Energy            SerCom          Healthcare    Environmental & Beverage                Total

	€'000		€'000		€'000		€'000		€'000		€'000
Segment revenue	2,808,638		799,150		166,324		53,352		138,307		3,965,771
Operating profit*	30,067		14,283		11,145		7,001		5,375		67,871
Amortisation of intangible assets	(3,528)		(244)		(327)		(943)		-		(5,042)
Net operating exceptionals	(3,335)		(508)		(2,878)		-		(852)		(7,573)
Operating profit	23,204		13,531		7,940		6,058		4,523		55,256

	Unaudited six months ended 30 September 2009

                                                                         DCC                DCC                  DCC                 DCC                   DCC Food

                                                                         Energy            SerCom            Healthcare      Environmental    & Beverage                  Total

	€'000		€'000		€'000		€'000		€'000		€'000
Segment revenue	1,788,243		665,093		163,748		36,002		155,708		2,808,794
Operating profit*	25,236		13,729		8,671		4,683		4,251		56,570
Amortisation of intangible assets	(1,792)		(146)		(151)		(334)		(129)		(2,552)
Net operating exceptionals	(2,364)		(122)		309		-		(268)		(2,445)
Operating profit	21,080		13,461		8,829		4,349		3,854		51,573

* Operating profit before amortisation of intangible assets and net operating exceptionals

Notes to the Group Condensed Interim Financial Statements

for the six months ended 30 September 2010

4.         Segmental Reporting - continued

(a)           By operating segment - continued

Audited year ended 31 March 2010

                                                                              DCC                  DCC           DCC                 DCC                  DCC Food

                                                                             Energy            SerCom        Healthcare      Environmental   & Beverage                  Total

	€'000		€'000		€'000		€'000		€'000		€'000
Segment revenue	4,420,122		1,618,455		334,044		77,366		274,984		6,724,971
Operating profit*	113,105		40,835		21,143		9,297		8,453		192,833
Amortisation of intangible assets	(4,510)		(318)		(394)		(799)		(129)		(6,150)
Net operating exceptionals	(4,195)		(1,051)		(897)		-		(3,621)		(9,764)
Operating profit	104,400		39,466		19,852		8,498		4,703		176,919

* Operating profit before amortisation of intangible assets and net operating exceptionals

(b)           By geography
		Unaudited six months ended 30 September 2010

                                                                                                                    Republic of                                    Rest of

                                                                                                                           Ireland                     UK           the World                Total

							€'000		€'000		€'000		€'000
Segment revenue							427,801		2,966,770		571,200		3,965,771
Operating profit*							11,662		46,867		9,342		67,871
Amortisation of intangible assets							(358)		(3,967)		(717)		(5,042)
Net operating exceptionals							(1,018)		(6,134)		(421)		(7,573)
Operating profit							10,286		36,766		8,204		55,256

Unaudited six months ended 30 September 2009

                                                                                                           Republic of                                         Rest of

                                                                                                                  Ireland                   UK                  the World                         Total

							€'000		€'000		€'000		€'000
Segment revenue							416,523		2,140,542		251,729		2,808,794
Operating profit*							12,916		37,245		6,409		56,570
Amortisation of intangible assets							(501)		(1,840)		(211)		(2,552)
Net operating exceptionals							(406)		(2,254)		215		(2,445)
Operating profit							12,009		33,151		6,413		51,573

Audited year ended 31 March 2010

                                                                                                                      Republic of                                     Rest of

                                                                                                                             Ireland                     UK            the World                  Total

							€'000		€'000		€'000		€'000
Segment revenue							1,107,364		4,748,268		869,339		6,724,971
Operating profit*							34,191		133,361		25,281		192,833
Amortisation of intangible assets							(962)		(4,317)		(871)		(6,150)
Net operating exceptionals							(3,175)		(5,429)		(1,160)		(9,764)
Operating profit							30,054		123,615		23,250		176,919

* Operating profit before amortisation of intangible assets and net operating exceptionals

Notes to the Group Condensed Interim Financial Statements

for the six months ended 30 September 2010

5.         Exceptional Items

	Unaudited		Unaudited		Audited
	6 months		6 months		year
	ended		ended		ended
	30 Sept.		30 Sept.		31 March
	2010		2009		2010
	€'000		€'000		€'000
Loss on disposal of subsidiaries	(311)		-		-
Cumulative foreign exchange translation losses relating to subsidiaries disposed of	(3,145)		-		-
Acquisition related fees	(1,746)		-		-
Restructuring costs and other	(2,371)		(3,272)		(8,683)
Impairment of goodwill	-		-		(1,908)
Profit on disposal of associate	-		827		827
	(7,573)		(2,445)		(9,764)
Mark to market losses (included in interest)	(602)		(2,034)		(1,285)
Net exceptional items before tax	(8,175)		(4,479)		(11,049)
Capital gains tax on disposal of subsidiaries (included in taxation)	(1,354)		-		-
Net exceptional items after tax	(9,529)		(4,479)		(11,049)

The Group incurred a net exceptional charge after tax of €9.529 million during the six months ended 30 September 2010.

During the first half, DCC Healthcare disposed of its Mobility & Rehabilitation businesses and DCC Food & Beverage disposed of one of its smaller Irish businesses. The net cash impact of these transactions (€28.503 million) resulted in a pre-tax loss on their book carrying values, including goodwill, of €0.311 million.  These businesses accounted for less than 1% of the DCC Group's operating profit for the year ended 31 March 2010.   IAS 21 The Effects of Changes in Foreign Exchange Rates requires that any foreign exchange translation differences which have been written off directly to reserves in prior years are recycled through the Income Statement on the disposal of the related asset.  The amount of such differences relating to the above disposals, which did not have any impact on the Group's total equity, was €3.145 million.

IFRS 3 Revised Business Combinations requires that the professional and tax costs (such as stamp duty) relating to the evaluation and completion of an acquisition are expensed in the Income Statement whereas previously they were capitalised as part of the acquisition cost.  During the first half these costs amounted to €1.746 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.  After 'marking to market' swaps designated as fair value hedges and the related fixed rate debt, the Group incurred a mark to market ineffectiveness loss of €0.602 million.

The balance of the net exceptional charge relates primarily to restructuring costs as a result of the integration of recently acquired businesses.  

Notes to the Group Condensed Interim Financial Statements

for the six months ended 30 September 2010

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
	2010		2009		2010
	€'000		€'000		€'000
Profit attributable to equity holders of the Company	34,218		34,633		130,803
Amortisation of intangible assets after tax	4,146		2,042		4,787
Exceptionals after tax	9,529		4,479		11,049
Adjusted profit after taxation and minority interests	47,893		41,154		146,639
Basic earnings per ordinary share	cent		cent		cent
Basic earnings per ordinary share	41.19c		42.13c		158.76c
Adjusted basic earnings per ordinary share	57.65c		50.07c		177.98c
Weighted average number of ordinary shares in issue (thousands)	83,077		82,196		82,391
Diluted earnings per ordinary share	cent		cent		cent
Diluted earnings per ordinary share	41.05c		41.91c		157.92c
Adjusted diluted earnings per ordinary share	57.46c		49.80c		177.04c
Diluted weighted average number of ordinary shares in issue (thousands)	83,351		82,645		82,830

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.

7.         Dividends

		Unaudited		Unaudited		Audited
		6 months		6 months		year
		ended		ended		ended
		30 Sept.		30 Sept.		31 March
		2010		2009		2010
		€'000		€'000		€'000
Interim - paid 23.74 cent per share on 4 December 2009		-		-		19,526
Final - paid 43.70 cent per share on 22 July 2010    (paid 39.73 cent per share on 23 July 2009)		36,296		32,657		32,657
		36,296		32,657		52,183

On 8 November 2010, the Board approved an interim dividend of 26.11 cent per share (2009/2010 interim dividend: 23.74 cent per share). 

These condensed consolidated interim financial statements do not reflect this dividend payable.

Notes to the Group Condensed Interim Financial Statements

for the six months ended 30 September 2010

8.         Other Reserves

For the six months ended 30 September 2010			Foreign
		Cash flow	currency		Total
	Share	hedge	translation	Other	other
	options	reserve	reserve	reserves	reserves
	€'000	€'000	€'000	€'000	€'000
At beginning of period	9,148	(295)	(129,772)	1,400	(119,519)
Currency translation	-	-	25,278	-	25,278
Gains relating to cash flow hedges	-	2,197	-	-	2,197
Movement in deferred tax liability on cash flow hedges                     -		(437)	-	-	(437)
Share based payment	556	-	-	-	556
At end of period	9,704	1,465	(104,494)	1,400	(91,925)

For the six months ended 30 September 2009			Foreign
		Cash flow	currency		Total
	Share	hedge	translation	Other	other
	options	reserve	reserve	reserves	reserves
	€'000	€'000	€'000	€'000	€'000
At beginning of period	7,807	(1,174)	(153,036)	1,400	(145,003)
Currency translation	-	-	11,528	-	11,528
Gains relating to cash flow hedges	-	1,207	-	-	1,207
Movement in deferred tax liability on cash flow hedges                     -		(152)	-	-	(152)
Share based payment	711	-	-	-	711
At end of period	8,518	(119)	(141,508)	1,400	(131,709)

For the year ended 31 March 2010			Foreign
		Cash flow	currency		Total
	Share	hedge	translation	Other	other
	options	reserve	reserve	reserves	reserves
	€'000	€'000	€'000	€'000	€'000
At beginning of period	7,807	(1,174)	(153,036)	1,400	(145,003)
Currency translation	-	-	23,264	-	23,264
Gains relating to cash flow hedges	-	986	-	-	986
Movement in deferred tax liability on cash flow hedges                     -		(107)	-	-	(107)
Share based payment	1,341	-	-	-	1,341
At end of period	9,148	(295)	(129,772)	1,400	(119,519)

Notes to the Group Condensed Interim Financial Statements

for the six months ended 30 September 2010

9.         Analysis of Net Debt

	Unaudited		Unaudited		Audited
	30 Sept.		30 Sept.		31 March
	2010		2009		2010
	€'000		€'000		€'000
Non-current assets:
Derivative financial instruments	136,017		81,778		101,921
Current assets:
Derivative financial instruments	3,304		1,036		1,343
Cash and cash equivalents	682,046		446,428		714,917
	685,350		447,464		716,260
Non-current liabilities:
Borrowings	(93)		(1,279)		(2,508)
Derivative financial instruments	(21,042)		(31,603)		(19,331)
Unsecured Notes due 2011 to 2022	(837,984)		(469,635)		(791,155)
	(859,119)		(502,517)		(812,994)
Current liabilities:
Borrowings	(59,715)		(113,236)		(58,169)
Derivative financial instruments	(1,125)		(1,199)		(557)
	(60,840)		(114,435)		(58,726)
Net debt (including Group share of joint ventures' net cash)	(98,592)		(87,710)		(53,539)
Group share of joint ventures' net cash	1,163		3,568		1,139

10.        Retirement Benefit Obligations

The Group's defined benefit pension schemes' assets were measured at fair value at 30 September 2010.  The defined benefit pension schemes' liabilities at 30 September 2010 have been updated to reflect material movements in the discount rate from the 31 March 2010 position.

The deficit on the Group's retirement benefit obligations increased from €23.690 million at 31 March 2010 to €34.789 million at 30 September 2010.  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 liabilities.

11.        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 2010:

	Unaudited		Unaudited		Audited
	6 months		6 months		year
	ended		ended		ended
	30 Sept.		30 Sept.		31 March
	2010		2009		2010
Discount rate
- Republic of Ireland	4.80%		5.75%		5.40%
- UK	4.95%		5.50%		5.55%

Notes to the Group Condensed Interim Financial Statements

for the six months ended 30 September 2010

12.        Business Combinations

The principal acquisitions completed by the Group during the six months ended 30 September 2010 were as follows:

-      the acquisition of 100% of F. Peart, a medium sized oil distribution business which operates from four locations

       in the north of England, announced on 4 May 2010;

-      the acquisition of two oil importation and storage terminals in Scotland, announced on 16 July 2010; and

-      the acquisition of 74% of the share capital of Comtrade SA, a leading distributor of consumer electronic and audio visual products to the retail        sector in France, announced on 23 August 2010.

The carrying amounts of the assets and liabilities acquired (excluding net cash 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
	30 Sept.
	2010
	€'000
Assets
Non-current assets
Property, plant and equipment	22,435
Intangible assets - other intangible assets	2,590
Total non-current assets	25,025
Current assets
Inventories	7,099
Trade and other receivables	27,499
Total current assets	34,598
Liabilities
Non-current liabilities
Deferred income tax liabilities	(1,576)
Total non-current liabilities	(1,576)
Current liabilities
Trade and other payables	(25,840)
Current income tax liabilities	(431)
Total current liabilities	(26,271)
Identifiable net assets acquired	31,776
Intangible assets - goodwill	30,270
Total consideration (enterprise value)	62,046
Satisfied by:
Cash	41,325
Net cash acquired	(2,612)
Net cash outflow	38,713
Deferred acquisition consideration	23,333
Total consideration	62,046

None of the business combinations completed during the period were considered sufficiently material to warrant separate disclosure of the fair values attributable to those combinations. 

There were no material adjustments made to the carrying amounts of the assets and liabilities acquired, determined in accordance with IFRS, before completion of the combinations during the financial period.

The initial assignments of fair values to identifiable net assets acquired have been performed on a provisional basis 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 2010 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.

The acquisitions during the year contributed €93.912 million to revenues and €2.503 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 2010 would be €4,032.331 million and total Group operating profit before amortisation of intangible assets and net operating exceptionals would be €70.301 million.

Notes to the Group Condensed Interim Financial Statements

for the six months ended 30 September 2010

13.        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 SerCom Distribution.

14.        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 indicators of impairment during the six months ended 30 September 2010.  The Board is satisfied that the carrying value of goodwill has not been impaired.

15.       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 2010 that could have a material impact on the financial position or performance of the Group in the six months ended 30 September 2010.

16.        Distribution of Interim Report

This report and further information on DCC is available at the Company's website www.dcc.ie.  This report is being distributed to shareholders and will be available to the public at the Company's registered office at DCC House, Stillorgan, Blackrock, Co. Dublin, 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

Michael Buckley                                                  Tommy Breen

Chairman                                                            Chief Executive

8 November 2010

 

END

 

 

IR KVLFBBFFFFBQ