We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Dcc Plc | LSE:DCC | London | Ordinary Share | IE0002424939 | ORD EUR0.25 (CDI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-40.00 | -0.72% | 5,485.00 | 5,480.00 | 5,490.00 | 5,560.00 | 5,485.00 | 5,525.00 | 34,677 | 15:19:09 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Offices-holdng Companies,nec | 22.2B | 334.02M | 3.3818 | 16.28 | 5.44B |
TIDMDCC
RNS Number : 0347P
DCC PLC
14 November 2016
14 November 2016
DCC Reports Very Strong First Half Performance and
New Acquisitions
DCC, the international sales, marketing, distribution and business support services group, today announced its results for the six months ended 30 September 2016.
Highlights 2016 2015 % change ------------------------------ ----------- ----------- --------- DCC Energy volumes (billion litres) 6.595bn 5.818bn +13.3% ------------------------------ ----------- ----------- --------- Revenue (excl. DCC Energy) GBP1.478bn GBP1.407bn +5.1% ------------------------------ ----------- ----------- --------- Operating profit1 GBP117.8m GBP88.4m +33.3% ------------------------------ ----------- ----------- --------- Adjusted earnings per share1 92.1p 70.3p +31.1% ------------------------------ ----------- ----------- --------- Interim dividend 37.17p 33.04p +12.5% ------------------------------ ----------- ----------- --------- Operating cash flow GBP141.0m GBP120.7m ------------------------------ ----------- ----------- ---------
-- Very strong first half performance with Group operating profit increasing by 33.3% (up 26.5% on a constant currency basis) to GBP117.8 million, with all divisions recording growth on the prior year.
-- Adjusted earnings per share up 31.1% (24.7% ahead on a constant currency basis) to 92.1 pence.
-- Interim dividend increased by 12.5% to 37.17 pence per share. -- Continued very strong cash flow performance.
-- The Group continues to be very active from a development perspective and, including those acquisitions announced today, has committed GBP181 million in acquisition spend in the period.
-- As separately announced today, DCC Energy has agreed to acquire Gaz Européen, a leading French natural gas retail and marketing business, for an initial enterprise value of EUR110 million (GBP96 million). In addition, DCC Healthcare has agreed to acquire Medisource, a pharmaceutical procurement, sales and marketing business in Ireland for an initial enterprise value of EUR32 million (GBP27 million). The acquisition of Dansk Fuels in Denmark by DCC Energy, announced on 23 March 2016, was completed ahead of schedule.
-- The Group expects that both operating profit and adjusted earnings per share for the year ending 31 March 2017 will be significantly ahead of the prior year and ahead of current market consensus expectations.
(1) Excluding net exceptionals and amortisation of intangible assets
Commenting on the results, Tommy Breen, Chief Executive, said:
"I am very pleased to report that the first half of the year has been another very active and successful period for DCC. The results reflect continued execution of our strategy to grow the business organically, deliver a very strong cash flow performance and redeploy capital at attractive rates of return. The Group continues to have the ambition and capacity for further development and importantly, as DCC increases in scale and geographic reach, also has the opportunity to build substantial market positions in its chosen sectors. The Group expects that both operating profit and adjusted earnings per share for the year ending 31 March 2017 will be significantly ahead of the prior year and ahead of current market consensus expectations."
Presentation of results and dial-in / webcast facility
There will be a presentation of these results to analysts and fund managers at 9.00 am today in the London Stock Exchange. The slides for this presentation can be downloaded from DCC's website, www.dcc.ie.
There will also be audio conference access to, and a live webcast of, the presentation. The access details for the presentation are:
Ireland: 1800 937 656 UK / International: +44 (0) 203 427 1916 Passcode: 7675960 Webcast Link: http://edge.media-server.com/m/p/uoim6u9i
This report, the webcast of the presentation and further information on DCC is available at www.dcc.ie.
For reference, please contact:
Tommy Breen, Chief Executive Tel: +353 1 2799 400 Fergal O'Dwyer, Chief Financial Officer Email: investorrelations@dcc.ie Kevin Lucey, Head of Group Finance & Investor Web: www.dcc.ie Relations For media enquiries: Powerscourt (Lisa Tel: +44 207 250 1446 Kavanagh)
Group Results
A summary of the Group's results for the six months ended 30 September 2016 is as follows:
2016 2015 GBP'm GBP'm % change Revenue 5,597 5,066 +10.5% Operating profit(1) DCC Energy 76.0 52.9 +43.8% DCC Healthcare 19.8 18.4 +7.0% DCC Technology 11.3 8.6 +31.9% DCC Environmental 10.7 8.5 +26.7% Group operating profit(1) 117.8 88.4 +33.3% Finance costs (net) and other (16.4) (14.4) Profit before net exceptionals, amortisation of intangible assets and tax 101.4 74.0 +37.0% Net exceptional charge before tax (2.5) (9.7) Amortisation of intangible assets (18.3) (11.8) Profit before tax 80.6 52.5 +53.7% Taxation (13.0) (10.3) Profit after tax 67.6 42.2 Non-controlling interests (2.0) (0.9) Attributable profit 65.6 41.3 Adjusted earnings per share(1) 92.1 pence 70.3 pence +31.1% Dividend per share 37.17 pence 33.04 pence +12.5% Operating cash flow 141.0 120.7 Net (debt) / cash at 30 September (112.2) 153.4 (1) Excluding net exceptionals and amortisation of intangible assets
Group revenue
Overall, Group revenue increased by 10.5% (5.8% ahead on a constant currency basis) to GBP5.6 billion.
Volumes in DCC Energy increased by 13.3% to 6.6 billion litres, driven principally by acquisitions completed during the prior year. On an organic basis volumes were modestly ahead of the prior year, with good growth in Retail & Fuelcard volumes and continuing organic growth in LPG volumes, particularly with industrial and commercial customers and oil to LPG conversions. Reflecting lower oil prices, DCC Energy's revenue increased by 12.5% (up 7.3% on a constant currency basis) with average selling prices per litre reducing by 5.4% on a constant currency basis.
Revenue excluding DCC Energy increased by 5.1% (up 1.8% on a constant currency basis) to GBP1.5 billion.
Group operating profit
Group operating profit increased by 33.3% to GBP117.8 million (26.5% ahead on a constant currency basis), in the seasonally less significant first half. The average sterling/euro translation rate for the six months ended 30 September 2016 of 1.2364 was 11.1% weaker than the average of 1.3902 in the comparative period. Approximately one third of the constant currency operating profit growth was organic.
Operating profit in DCC Energy, the Group's largest division, was 43.8% ahead of the prior year (33.1% ahead on a constant currency basis), driven principally by the two large acquisitions in France completed in the prior year, which continue to perform strongly. The division also recorded strong organic profit growth in its LPG and Retail & Fuelcard businesses.
Operating profit in DCC Healthcare was 7.0% ahead of the prior year (7.7% ahead on a constant currency basis). The division again benefited from another strong performance in DCC Health & Beauty Solutions.
Operating profit in DCC Technology increased by 31.9% (27.5% ahead on a constant currency basis) in the seasonally less significant first half. The UK business performed in line with expectations and recorded good organic profit growth, assisted by cost reductions implemented during the prior year.
DCC Environmental generated excellent organic growth, with operating profit increasing to GBP10.7 million, 26.7% ahead of the prior year.
Finance costs (net)
Net finance costs increased to GBP16.6 million (2015: GBP14.6 million) primarily due to the non-cash partial unwind of discounted acquisition related liabilities acquired in the Butagaz transaction. The underlying finance costs of the Group were broadly in line with the prior year as they are largely driven by the level of the Group's gross private placement debt, which remained largely unchanged. Average net debt during the period was GBP262 million compared to GBP60 million during the six months ended 30 September 2015.
Profit before net exceptional items, amortisation of intangible assets and tax
Profit before net exceptional items, amortisation of intangible assets and tax increased by 37.0% (30.0% ahead on a constant currency basis) to GBP101.4 million.
Net exceptional charge and amortisation of intangible assets
The Group incurred a net exceptional charge before tax of GBP2.5 million in the first six months of the year. The net charge principally reflects acquisition and restructuring costs, offset somewhat by a gain in respect of the IAS 39 treatment of the Group's private placement debt and related hedging instruments.
Acquisition related costs amounted to GBP1.4 million and restructuring costs amounted to GBP2.3 million. Acquisition costs include the professional fees and tax costs (such as stamp duty) relating to the evaluation and completion of acquisition opportunities.
Most of the Group's debt has been raised in the US private placement market and swapped, using long term interest, currency and cross currency interest rate derivatives, to both fixed and floating rate sterling and euro. The level of ineffectiveness calculated under IAS 39 on the fair value and cash flow hedge relationships relating to fixed rate debt, together with gains or losses arising from marking to market swaps not designated as hedges, offset by foreign exchange translation gains or losses on the related fixed rate debt, is charged or credited as an exceptional item. In the six months ended 30 September 2016, this amounted to an exceptional gain of GBP1.9 million. The exceptional gains and losses on the Group's private placement debt and related hedging instruments will net to zero on a cumulative basis over their term.
The remaining exceptional charge of GBP0.7 million principally represents the impairment in value of freehold properties which are no longer in use.
The charge for the amortisation of acquisition related intangible assets increased to GBP18.3 million from GBP11.8 million in the prior year, with the increase principally reflecting the substantial acquisitions completed in the prior year.
Profit before tax
Profit before tax increased by 53.7% to GBP80.6 million.
Taxation
The effective tax rate for the Group in the first half of the year of 17.5% is based on the anticipated mix of profits for the full year. This rate compares to a full year effective tax rate in the prior year of 16.0%. The increase is primarily due to an increase in the proportion of profits generated in Continental Europe.
Adjusted earnings per share
Adjusted earnings per share increased by 31.1% (24.7% ahead on a constant currency basis) to 92.1 pence.
Dividend
The Board has decided to pay an interim dividend of 37.17 pence per share, which represents a 12.5% increase on the prior year interim dividend of 33.04 pence per share. This dividend will be paid on 12 December 2016 to shareholders on the register at the close of business on 25 November 2016.
Cash flow
As with its operating profit, the Group's operating cash flow is significantly weighted towards the second half of the year. The cash flow of the Group for the six months ended 30 September 2016 can be summarised as follows:
Six months ended 30 September 2016 2015 GBP'm GBP'm Operating profit 117.8 88.4 Increase in working capital (17.0) (4.4) Depreciation and other 40.2 36.7 Operating cash flow 141.0 120.7 Capital expenditure (net) (59.8) (51.3) Free cash flow 81.2 69.4 Net interest and tax paid and other (42.1) (29.8) Free cash flow after interest and tax 39.1 39.6 Acquisitions (32.8) (134.2) Disposals - 2.3 Dividends (55.7) (49.9) Dividends paid to non-controlling interests (5.1) - Exceptional items (net) (8.8) (10.4) Share issues 2.1 194.0 Net (outflow) / inflow (61.2) 41.4 Opening net (debt) / cash (54.5) 30.0 Translation and other 3.5 (7.8) Cash acquired - Butagaz - 89.8 Closing net (debt) / cash (112.2) 153.4
Operating cash flow in the six months ended 30 September 2016 of GBP141.0 million compares to GBP120.7 million in the prior year. Working capital increased by GBP17.0 million over the six month period from 31 March 2016, reflecting seasonal requirements, although on a like for like basis the value of working capital was GBP25.0 million lower than that at 30 September 2015. As a result, overall working capital days at 30 September 2016 improved on the prior year by 0.6 days to a negative 2.9 days sales.
Acquisition and capital expenditure committed
Committed acquisition and capital expenditure in the current period amounted to GBP240.3 million as follows:
Acquisitions Capex Total GBP'm GBP'm GBP'm DCC Energy 100.0 36.1 136.1 DCC Healthcare 27.4 4.3 31.7 DCC Technology 53.1 16.5 69.6 DCC Environmental - 2.9 2.9 Total 180.5 59.8 240.3 ------------------- ------------------- --------- --------------
Acquisition activity
Committed acquisition expenditure amounted to GBP180.5 million.
DCC Energy
Gaz Européen
As announced separately today, DCC Energy has agreed to acquire Gaz Européen Holdings SAS ("Gaz Européen"), a natural gas retail and marketing business which supplies business and public sector customers in France. DCC has agreed to acquire 97% of the share capital of Gaz Européen on completion, based on an initial enterprise value of EUR110 million (GBP96 million). The remaining shares, which are held by members of Gaz Européen's management team, will be acquired based on Gaz Européen's results for the three years ending 31 March 2021, 2022 and 2023. All of the consideration will be satisfied in cash. The acquisition is conditional, inter alia, on clearance from the French Competition Authority and is expected to complete in the first calendar quarter of 2017.
Gaz Européen was founded in 2005, when the French natural gas market was first deregulated and opened to competition. The company is a specialist retailer of natural gas and focuses on supplying energy management companies, apartment blocks (with collective heating systems), public authorities and the service sector in France. In its financial year ended 31 December 2015, the company supplied c. 5.1 TWh of natural gas (equivalent to approximately 390,000 tonnes of LPG) and currently supplies c. 10,000 sites. The company is headquartered in Paris and employs 31 staff; it has an experienced and ambitious management team with a track record of delivering strong growth. In its financial year ended 31 December 2015, Gaz Européen generated revenue of EUR205 million (GBP178 million) and normalised operating profit of EUR15.7 million (GBP13.7 million).
DCC Energy has, for some time, been developing its presence in natural gas organically in selected geographies as it believes that there is a significant opportunity to leverage its sales and marketing expertise, customer reach and brand recognition in the LPG and oil distribution markets into complementary adjacencies, including the natural gas sector. Gaz Européen will be DCC Energy's first major acquisition in natural gas and will complement Butagaz's leading position in LPG. One of the key strengths identified during the acquisition of Butagaz was its brand recognition amongst French gas consumers generally. The combination of Butagaz's marketing and brand strength and Gaz Européen's expertise in the natural gas market will provide an excellent platform for growth in the French natural gas market.
Dansk Fuels
In the prior financial year, DCC agreed to acquire Dansk Fuels, a commercial, aviation and retail fuels business in Denmark, formerly owned by Shell. Following receipt of competition clearance from the European Commission the acquisition was completed, ahead of schedule, on 31 October 2016.
Dansk Fuels comprises Shell's previous commercial and aviation distribution business in Denmark and a retail petrol station network of 139 sites (comprising 95 manned and 44 unmanned sites) together with contracts to supply 66 dealers. DCC has entered into a long-term brand partnership with Shell to operate the network under the Shell brand. The transaction will involve a total investment by DCC of approximately DKK300 million (GBP35 million). The business will be merged with DCC's existing oil distribution business in Denmark and will leverage DCC Energy's recently developed retail operating platform. The acquired business will have total incremental volumes of approximately 0.9 billion litres and is expected to generate an initial return on invested capital commensurate with DCC Energy's existing returns.
DCC Healthcare
Medisource
In November 2016 DCC Healthcare strengthened its position in the procurement, sales and marketing of pharmaceutical products in Ireland through its agreement to acquire Medisource Ireland Limited ("Medisource") for an initial enterprise valuation of EUR31.5 million (GBP27.4 million). The acquisition, which is subject to competition clearance, is expected to complete in the first calendar quarter of 2017.
Medisource is a specialist in the procurement and sale of Exempt Medicinal Products ("EMPs"). EMPs are pharmaceutical products which are imported into a market with the authorisation of the relevant regulatory authority (the Health Products Regulatory Authority in Ireland), in order to meet requirements of specific patients where no suitable licenced product is available in that market. The products are typically licenced in another jurisdiction. Medisource has a market leadership position in EMPs in Ireland based on excellent customer service and a strong network of international suppliers. The acquisition complements DCC Vital's current pharma product offering, strengthens DCC Vital's access to the hospital and retail pharmacy channel and will provide further insight into potential pharma product development opportunities. DCC Healthcare expects to generate a return on its investment in Medisource in line with the divisional return on capital employed in its first full year of ownership.
DCC Technology
Medium
In November 2016, DCC Technology acquired Medium (U.K.) Limited ("Medium"), a distributor of professional audio visual equipment to resellers in the UK. Medium, which partners with a number of leading brands in the market including CTouch, LG, NEC and Samsung, is complementary to DCC Technology's developing position in professional audio visual in the UK market. The consideration for the acquisition was based on an enterprise valuation of GBP8.3 million and was satisfied in cash at completion.
Hammer
As announced on 14 October 2016, DCC Technology has agreed to acquire Hammer Consolidated Holdings Limited ("Hammer"), a specialist distributor of server and storage solutions to resellers in the UK and Continental Europe. Employing 165 people and based in Basingstoke, Hampshire, Hammer distributes products for a range of leading suppliers and also provides product design and build solutions tailored to the requirements of customers in specific industries. The business is complementary to DCC Technology's existing server and storage business and will add almost 1,000 reseller customers. In its most recent financial year Hammer recorded sales of GBP155.0 million and operating profit of GBP6.3 million. The acquisition is based on an initial enterprise value of GBP38.3 million and is structured as an initial payment at completion, followed by earn out payments over three years based on Hammer's future trading results. The acquisition, which is subject to competition clearance from the European Commission, is expected to complete by the end of December 2016.
Total cash spend on acquisitions in the six months ended 30 September 2016
The total cash spend on acquisitions in the six months ended 30 September 2016 was GBP32.8 million. This included the payment of deferred and contingent acquisition consideration previously provided of GBP26.2 million and the completion of a number of small acquisitions for a total consideration of GBP6.6 million.
Capital expenditure
Net capital expenditure for the six months of GBP59.8 million (2015: GBP51.3 million) compares to a depreciation charge of GBP42.9 million (2015: GBP32.5 million).
The construction of DCC Technology's new, purpose built, 450,000 sq.ft. UK national distribution centre in the north of England is progressing well and the relocation to the new facility will take place on a staged basis, beginning towards the end of the current financial year.
Financial strength
An integral part of the Group's strategy is the maintenance of a strong and liquid balance sheet to enable it to take advantage of development opportunities as they arise. At 30 September 2016, the Group had net debt of GBP112 million, total equity of GBP1.4 billion, cash resources, net of overdrafts, of GBP1.0 billion and a further GBP400 million of undrawn committed debt facilities. The Group's outstanding term debt at 30 September 2016 had an average maturity of 5.8 years. Substantially all of the Group's debt has been raised in the US Private Placement market with an average credit margin of 1.69% over floating Euribor/Libor.
Outlook
The Group expects that both operating profit and adjusted earnings per share for the year ending 31 March 2017 will be significantly ahead of the prior year and ahead of current market consensus expectations.
Performance Review - Divisional Analysis
DCC Energy 2016 2015 % change ------------------ ---------- ---------- --------- Volumes (litres) 6.595b 5.818b +13.3% ------------------ ---------- ---------- --------- Revenue GBP4.119b GBP3.660b +12.5% ------------------ ---------- ---------- --------- Operating profit GBP76.0m GBP52.9m +43.8% ------------------ ---------- ---------- ---------
DCC Energy had an excellent first half of the financial year with operating profit increasing by 43.8% to GBP76.0 million, benefiting from acquisitions completed in the prior year and very strong performances from its LPG and Retail & Fuel Card businesses. DCC Energy sold 6.6 billion litres of product, an increase of 13.3% over the prior year. Volumes were 0.4% ahead on a like-for-like basis.
The LPG business had an excellent first half, with volumes 38.3% ahead of the prior year and 1.3% ahead on an organic basis. The business continued to drive sales growth in the commercial and industrial sector and also benefited from oil to LPG conversions.
Butagaz has continued to perform very strongly since acquisition in September 2015 and will be significantly enhanced by the acquisition of Gaz Européen, which was announced separately today. Gaz Européen is a specialist retailer of natural gas to business customers, principally co-ownership housing, in France. In its financial year ended 31 December 2015 the company supplied c. 5.1 TWh of natural gas (equivalent to approximately 390,000 tonnes of LPG) and currently supplies c. 10,000 sites. In recent years DCC Energy has developed modest natural gas businesses organically in a number of European markets. Gaz Européen will be DCC Energy's first major acquisition in natural gas and will complement Butagaz's leading position in LPG in France.
The Retail & Fuel Card business achieved an excellent result with good organic volume growth in existing markets, complemented by a strong performance in the Esso retail petrol station business in France acquired in June 2015. The business in Sweden also performed strongly and the scale of the Retail business was further increased through the acquisition of the Shell retail petrol station network in Denmark, which completed recently. DCC Energy now operates 838 retail sites across five countries and is well positioned to leverage its operating platform to drive further growth. The Fuel Card business again recorded strong organic growth and continued to grow its market share in Britain.
The Oil business experienced more challenging conditions in Britain; however the business in Denmark performed strongly, particularly in the agricultural sector, where it benefited from the acquisition of the DLG business in the prior year. The Danish business was further expanded through the recent completion of the acquisition of Shell's commercial and aviation fuels business. The Oil business continues to make good progress in expanding its activities into adjacent areas such as lubricants and aviation fuels.
DCC Energy now has leadership positions in 10 countries across Europe in its chosen sectors of LPG, Retail & Fuel Card and Oil. DCC Energy continues to be well positioned to grow its business in both existing and new geographies, particularly in light of the continuing divestment programmes of the major oil and gas companies.
DCC Healthcare 2016 2015 % change ------------------ ---------- ---------- --------- Revenue GBP244.3m GBP239.1m +2.2% ------------------ ---------- ---------- --------- Operating profit GBP19.8m GBP18.4m +7.0% ------------------ ---------- ---------- --------- Operating margin 8.1% 7.7% ------------------ ---------- ---------- ---------
DCC Healthcare recorded a good performance in the first half of the financial year, generating operating profit growth of 7.0%, approximately half of which was organic. DCC Vital performed satisfactorily, growing its profits despite the trading headwind of weaker sterling. DCC Health & Beauty Solutions continued its track record of very strong organic profit growth and benefited from the contribution from Design Plus, which has performed well since its acquisition in September 2015.
DCC Vital, which is focused on the sales, marketing and distribution of pharmaceuticals and medical devices across all channels of the healthcare market in Britain and Ireland, recorded a satisfactory performance. The first half results reflect the actions taken in the prior year to streamline its product portfolio and activities, as it continues to increase its focus on the sales and marketing of its own products. This streamlining included the reconfiguration and consolidation of its warehousing and distribution activities in Britain and the business incurred some additional cost as part of this process. Although margins were impacted somewhat due to sterling weakness, DCC Vital generated good sales growth in the GP and hospital sectors in Britain, especially in disposable products used by GPs, hospital injectable pharmaceuticals and in its Skintact medical products range, which holds a market leadership position in electrodes and diathermy consumables.
In Ireland, the business generated good sales and profit growth across its product portfolio, particularly in hospital pharmaceuticals. The proposed acquisition of Medisource, announced today, will further enhance DCC Vital's position in the procurement, sales and marketing of pharmaceuticals in Ireland.
DCC Health & Beauty Solutions, which provides outsourced solutions to international nutrition and beauty brand owners, again generated very strong organic operating profit growth. In the nutritional sector, the business benefited from its increasing focus on and its technical expertise in developing and producing more complex, higher margin products and from good cost control. The integration of Design Plus, the market leader in Britain in sachet filling for health and beauty brand owners, has extended DCC Health & Beauty Solutions' service offering to brand owners, provided access to new customers and opened up a range of additional growth opportunities, including in the US market. DCC Health & Beauty Solutions is continuing to invest in its high quality, GMP certified, manufacturing and packing facilities in Britain to expand capacity to meet increasing demand for its services and to enhance its operational capability and efficiency.
DCC Technology 2016 2015 % change ------------------ ---------- ---------- --------- Revenue GBP1.144b GBP1.089b +5.1% ------------------ ---------- ---------- --------- Operating profit GBP11.3m GBP8.6m +31.9% ------------------ ---------- ---------- --------- Operating margin 1.0% 0.8% ------------------ ---------- ---------- ---------
DCC Technology, which trades as Exertis, achieved strong growth in the first half of the financial year, reflecting good organic profit growth and the benefit of the CUC acquisition completed in December 2015.
The business in the UK delivered very strong growth, despite continued weak market conditions in the computing and smartphone market, as the business achieved growth in areas such as professional audio visual, supplies, and smart home technologies. The growth in these areas, together with the benefit of cost reductions implemented in the prior year, resulted in an improvement in operating margin.
The UK business has continued to invest in the infrastructure and technologies that will drive and support future growth. The business has signed new suppliers to take advantage of the burgeoning market for virtual and augmented reality, expanded its capability in wireless networking and, most significantly, recently announced the acquisition of Hammer, which will materially enhance DCC Technology's position in the server and storage market and provide an excellent platform to further develop its enterprise solutions business. The acquisition is expected to complete before the end of the calendar year. In addition, the new national distribution centre in Lancashire will be commissioned on schedule in early 2017.
The business in Continental Europe achieved strong growth. In France, the CUC business, acquired in December 2015, achieved good organic profit growth, although the retail business was impacted by weak demand and margin pressure. The business in the Nordics achieved excellent organic profit growth, reflecting continued development of its professional audio visual capability and of its retail offering in both Sweden and Norway.
In Ireland, DCC Technology achieved strong growth, reflecting good business development activity, particularly in services for large mobile operators and retailers, as well as growth in security and networking products.
Over the past year, DCC Technology has developed a presence in the United Arab Emirates, initially servicing airport retail stores and more recently broadening its footprint into general retail stores in the Gulf region. Although modest, the business has developed quickly and contributed to the organic profit growth achieved.
The Supply Chain Services business traded in line with expectations in the first half of the year.
DCC Technology is well positioned to benefit from new consumer and enterprise technologies and to expand its service portfolio, while driving operational efficiencies.
DCC Environmental 2016 2015 % change ------------------- --------- --------- --------- Revenue GBP89.3m GBP78.3m +13.9% ------------------- --------- --------- --------- Operating profit GBP10.7m GBP8.5m +26.7% ------------------- --------- --------- --------- Operating margin 12.0% 10.8% ------------------- --------- --------- ---------
DCC Environmental delivered an excellent performance in the first half of the financial year and increased its operating profit by 26.7% to GBP10.7 million, continuing the trend of improved profitability and returns on capital employed in recent years. The growth in operating profit, all of which was organic, was broadly based and reflects good business development activity and the continuing focus on operating efficiency.
In Britain, the business performed strongly and benefited from a very strong result in hazardous waste, where the business has continued to expand its service offering, particularly in waste oil recovery and services to the water industry. The non-hazardous business also increased its profits, whilst continuing to invest in process improvement and efficiency measures.
The Irish business delivered an excellent performance as it grew its market share in its core market and also further developed its capabilities in adjacent hazardous and organic waste services.
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 risk and uncertainty. DCC believes that its expectations and assumptions with respect to these forward-looking statements are reasonable; however because they involve risk and uncertainty as to future circumstances, which are in many cases beyond DCC's control, actual results or performance may differ materially from those expressed in or implied by such forward-looking statements.
Principal risks and uncertainties
The Board of DCC is responsible for the Group's risk management and internal control systems, which are designed to identify, manage and mitigate potential material risks to the achievement of the Group's strategic and business objectives. The Board has approved a Risk Management Policy which sets out delegated responsibilities and procedures for the management of risk across the Group.
The principal risks and uncertainties facing the Group in the short to medium term, as set out on pages 15 to 17 of the 2016 Annual Report (together with the principal mitigation measures), continue to be the principal risks and uncertainties facing the Group for the remaining six months of the financial year.
This is not an exhaustive statement of all relevant risks and uncertainties. Matters which are not currently known to the Board or events which the Board considers to be of low likelihood could emerge and give rise to material consequences. The mitigation measures that are maintained in relation to these risks are designed to provide a reasonable and not an absolute level of protection against the impact of the events in question.
Group Income Statement
Unaudited 6 months ended Unaudited 6 months ended Audited year ended 30 September 2016 30 September 2015 31 March 2016 ----------------------------------------------- ------------------------------------------------ ------------------------------------------- Pre exceptionals Exceptionals Pre exceptionals Pre (note 6) Total Exceptionals Total exceptionals Exceptionals Total Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Revenue 5 5,596,544 - 5,596,544 5,066,240 - 5,066,240 10,601,085 - 10,601,085 Cost of sales (5,024,491) - (5,024,491) (4,638,535) - (4,638,535) (9,545,194) - (9,545,194) ------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- ------------ Gross profit 572,053 - 572,053 427,705 - 427,705 1,055,891 - 1,055,891 Administration expenses (175,496) - (175,496) (147,726) - (147,726) (304,029) - (304,029) Selling and distribution expenses (283,105) - (283,105) (194,441) - (194,441) (463,877) - (463,877) Other operating income 8,697 408 9,105 5,916 5,291 11,207 26,416 13,829 40,245 Other operating expenses (4,326) (4,824) (9,150) (3,067) (11,154) (14,221) (13,878) (28,469) (42,347) ------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- ------------ Operating profit before amortisation of intangible
assets 117,823 (4,416) 113,407 88,387 (5,863) 82,524 300,523 (14,640) 285,883 Amortisation of intangible assets (18,266) - (18,266) (11,884) - (11,884) (31,622) - (31,622) ------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- ------------ Operating profit 5 99,557 (4,416) 95,141 76,503 (5,863) 70,640 268,901 (14,640) 254,261 Finance costs (35,751) - (35,751) (32,161) (3,819) (35,980) (64,970) (9,419) (74,389) Finance income 19,165 1,901 21,066 17,532 - 17,532 35,981 - 35,981 Equity accounted investments' profit after tax 182 - 182 279 - 279 504 - 504 ------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- ------------ Profit before tax 83,153 (2,515) 80,638 62,153 (9,682) 52,471 240,416 (24,059) 216,357 Income tax expense 7 (12,685) (386) (13,071) (9,232) (1,037) (10,269) (36,024) 710 (35,314) ------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- ------------ Profit after tax for the financial period 70,468 (2,901) 67,567 52,921 (10,719) 42,202 204,392 (23,349) 181,043 ------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- ------------ Profit attributable to: Owners of the Parent 65,588 41,270 178,031 Non-controlling interests 1,979 932 3,012 ------------ ------------ ------------ 67,567 42,202 181,043 ------------ ------------ ------------ Earnings per ordinary share Basic 8 73.95p 47.32p 202.64p ------------ ------------ ------------ Diluted 8 73.42p 46.91p 201.02p ------------ ------------ ------------ Adjusted earnings per ordinary share Basic 8 92.14p 70.29p 257.14p ------------ ------------ ------------ Diluted 8 91.48p 69.69p 255.07p ------------ ------------ ------------
Group Statement of Comprehensive Income
Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 Group profit for the period 67,567 42,202 181,043 Other comprehensive income: Items that may be reclassified subsequently to profit or loss Currency translation 38,453 6,956 37,971 Movements relating to cash flow hedges 9,409 (3,881) 2,230 Movement in deferred tax liability on cash flow hedges (1,504) 1,337 120 ---------- ---------- --------- 46,358 4,412 40,321 ---------- ---------- --------- Items that will not be reclassified to profit or loss Group defined benefit pension obligations: - remeasurements (8,014) 8,041 4,894 - movement in deferred tax asset 1,227 (1,132) (570) ---------- ---------- --------- (6,787) 6,909 4,324 ---------- ---------- --------- Other comprehensive income for the period, net of tax 39,571 11,321 44,645 ---------- ---------- --------- Total comprehensive income for the period 107,138 53,523 225,688 ---------- ---------- --------- Attributable to: Owners of the Parent 102,678 51,996 220,411 Non-controlling interests 4,460 1,527 5,277 ---------- ---------- --------- 107,138 53,523 225,688 ---------- ---------- ---------
Group Balance Sheet
Unaudited Unaudited Audited 30 Sept. 30 Sept. 31 March 2016 2015 2016 Notes GBP'000 GBP'000 GBP'000 ASSETS Non-current assets Property, plant and equipment 778,618 723,360 739,503 Intangible assets 1,345,082 1,115,861 1,297,065 Equity accounted investments 26,019 5,329 22,139 Deferred income tax assets 22,802 12,338 21,285 Derivative financial instruments 271,609 194,133 209,518 2,444,130 2,051,021 2,289,510 ---------- ---------- ---------- Current assets Inventories 435,716 402,658 393,948 Trade and other receivables 997,017 898,780 916,069 Derivative financial instruments 37,132 5,900 15,915 Cash and cash equivalents 1,138,953 1,458,748 1,182,034 ---------- ---------- ---------- 2,608,818 2,766,086 2,507,966 Total assets 5,052,948 4,817,107 4,797,476 ---------- ---------- ---------- EQUITY Capital and reserves attributable to owners of the Parent Share capital 15,455 15,443 15,455 Share premium 277,211 274,339 277,211 Share based payment reserve 10 16,369 13,623 14,954 Cash flow hedge reserve 10 (207) (13,006) (8,112) Foreign currency translation reserve 10 106,859 39,044 70,887 Other reserves 10 932 932 932 Retained earnings 953,462 849,323 948,316 ---------- ---------- ---------- Equity attributable to owners of the Parent 1,370,081 1,179,698 1,319,643 Non-controlling interests 30,238 24,314 30,833
---------- ---------- ---------- Total equity 1,400,319 1,204,012 1,350,476 ---------- ---------- ---------- LIABILITIES Non-current liabilities Borrowings 1,385,011 1,285,721 1,260,421 Derivative financial instruments - 1,083 343 Deferred income tax liabilities 140,811 75,060 133,646 Post employment benefit obligations 12 7,045 (79) 347 Provisions for liabilities 233,079 220,531 213,115 Acquisition related liabilities 80,548 40,319 81,411 Government grants 752 1,098 904 ---------- ---------- ---------- 1,847,246 1,623,733 1,690,187 ---------- ---------- ---------- Current liabilities Trade and other payables 1,536,255 1,383,587 1,437,832 Current income tax liabilities 26,187 27,952 45,172 Borrowings 172,274 199,657 192,804 Derivative financial instruments 2,574 18,891 8,401 Provisions for liabilities 33,860 24,799 31,373 Acquisition related liabilities 34,233 334,476 41,231 ---------- ---------- ---------- 1,805,383 1,989,362 1,756,813 Total liabilities 3,652,629 3,613,095 3,447,000 ---------- ---------- ---------- Total equity and liabilities 5,052,948 4,817,107 4,797,476 ---------- ---------- ---------- Net (debt)/cash included above 11 (112,165) 153,429 (54,502) ---------- ---------- ----------
Group Statement of Changes in Equity
For the six Attributable to owners of the months ended 30 Parent September 2016 --------------------------------------------------------------------------------- Other Non- Share Share Retained reserves controlling Total capital premium earnings (note Total interests equity 10) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 April 2016 15,455 277,211 948,316 78,661 1,319,643 30,833 1,350,476 Profit for the period - - 65,588 - 65,588 1,979 67,567 Currency translation - - - 35,972 35,972 2,481 38,453 Group defined benefit pension obligations: - remeasurements - - (8,014) - (8,014) - (8,014) - movement in deferred tax asset - - 1,227 - 1,227 - 1,227 Movements relating to cash flow hedges - - - 9,409 9,409 - 9,409 Movement in deferred tax liability on cash flow hedges - - - (1,504) (1,504) - (1,504) Total comprehensive income - - 58,801 43,877 102,678 4,460 107,138 Re-issue of treasury shares - - 2,065 - 2,065 - 2,065 Share based payment - - - 1,415 1,415 - 1,415 Dividends - - (55,720) - (55,720) (5,055) (60,775) At 30 September 2016 15,455 277,211 953,462 123,953 1,370,081 30,238 1,400,319 --------------- ------------------ --------------- ------------- ------------ ---------------- ------------ For the six Attributable to owners of the months ended 30 Parent September 2015 ------------------------------------------------------------------------------------ Other Non- Share Share Retained reserves controlling Total capital premium earnings (note Total interests equity 10) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 April 2015 14,688 83,032 849,119 35,909 982,748 4,245 986,993 Profit for the period - - 41,270 - 41,270 932 42,202 Currency translation - - - 6,361 6,361 595 6,956 Group defined benefit pension obligations: - remeasurements - - 8,041 - 8,041 - 8,041 - movement in deferred tax asset - - (1,132) - (1,132) - (1,132) Movements relating to cash flow hedges - - - (3,881) (3,881) - (3,881) Movement in deferred tax liability on cash flow hedges - - - 1,337 1,337 - 1,337 Total comprehensive income - - 48,179 3,817 51,996 1,527 53,523 Issue of share capital (net of expenses) 755 191,307 - - 192,062 - 192,062 Re-issue of treasury shares - - 1,922 - 1,922 - 1,922 Share based payment - - - 867 867 - 867 Dividends - - (49,897) - (49,897) - (49,897) Non-controlling interests arising on acquisition - - - - - 18,542 18,542 At 30 September 2015 15,443 274,339 849,323 40,593 1,179,698 24,314 1,204,012 --------------- ------------------ --------------- ------------- --------------- ---------------- ------------ For the year Attributable to owners of the ended 31 March Parent 2016 ---------------------------------------------------------------------------------- Other Non- Share Share Retained reserves controlling Total capital premium earnings (note Total interests equity 10) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 April 2015 14,688 83,032 849,119 35,909 982,748 4,245 986,993 Profit for the financial year - - 178,031 - 178,031 3,012 181,043 Currency translation - - - 35,706 35,706 2,265 37,971 Group defined benefit pension obligations: - remeasurements - - 4,894 - 4,894 - 4,894 - movement in deferred tax asset - - (570) - (570) - (570) Movements relating to cash
flow hedges - - - 2,230 2,230 - 2,230 Movement in deferred tax liability on cash flow hedges - - - 120 120 - 120 Total comprehensive income - - 182,355 38,056 220,411 5,277 225,688 Issue of share capital (net of expenses) 767 194,179 - - 194,946 - 194,946 Re-issue of treasury shares - - 2,781 - 2,781 - 2,781 Share based payment - - - 2,198 2,198 - 2,198 Dividends - - (80,938) - (80,938) - (80,938) Non-controlling interests arising on acquisition - - (5,001) 2,498 (2,503) 21,311 18,808 At 31 March 2016 15,455 277,211 948,316 78,661 1,319,643 30,833 1,350,476 --------------- ------------------ --------------- ------------- ------------- ---------------- -------------
Group Cash Flow Statement
Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 Cash flows from operating activities Profit for the period 67,567 42,202 181,043 Add back non-operating expenses/(income) - tax 13,071 10,269 35,314 - share of equity accounted investments' profit (182) (279) (504) - net operating exceptionals 4,416 5,863 14,640 - net finance costs 14,685 18,448 38,408 ---------- ---------- ---------- Group operating profit before exceptionals 99,557 76,503 268,901 Share-based payments expense 1,415 867 2,198 Depreciation 42,913 32,534 74,822 Amortisation of intangible assets 18,266 11,884 31,622 Loss on disposal of property, plant and equipment 369 208 415 Amortisation of government grants (101) (176) (419) Other (4,334) 3,346 (3,412) (Increase)/decrease in working capital (17,046) (4,427) 37,585 ---------- ---------- ---------- Cash generated from operations before exceptionals 141,039 120,739 411,712 Exceptionals (8,752) (10,386) (19,567) ---------- ---------- ---------- Cash generated from operations 132,287 110,353 392,145 Interest paid (33,313) (31,348) (64,432) Income tax paid (28,122) (15,927) (35,346) ---------- ---------- ---------- Net cash flows from operating activities 70,852 63,078 292,367 ---------- ---------- ---------- Investing activities Inflows: Proceeds from disposal of property, plant and equipment 6,076 3,439 13,523 Dividends received from equity accounted investments 121 - 365 Disposal of subsidiaries and equity accounted investments - 2,296 4,173 Interest received 19,191 17,479 36,004 25,388 23,214 54,065 ---------- ---------- ---------- Outflows: Purchase of property, plant and equipment (65,878) (54,695) (134,172) Acquisition of subsidiaries (6,609) (43,315) (390,042) Payment of accrued acquisition related liabilities (26,200) (1,059) (3,913) ---------- ---------- ---------- (98,687) (99,069) (528,127) ---------- ---------- ---------- Net cash flows from investing activities (73,299) (75,855) (474,062) ---------- ---------- ---------- Financing activities Inflows: Proceeds from issue of shares 2,065 193,984 197,727 Net cash inflow on derivative financial instruments 1,002 - 1,953 Increase in finance lease liabilities - 68 59 3,067 194,052 199,739 ---------- ---------- ---------- Outflows: Repayment of interest-bearing loans and borrowings (29,895) - (14,832) Repayment of finance lease liabilities (79) (83) (151) Dividends paid to owners of the Parent (55,720) (49,897) (80,938) Dividends paid to non-controlling (5,055) - - interests (90,749) (49,980) (95,921) ---------- ---------- ---------- Net cash flows from financing activities (87,682) 144,072 103,818 ---------- ---------- ---------- Change in cash and cash equivalents (90,129) 131,295 (77,877) Translation adjustment 43,894 13,322 38,249 Cash and cash equivalents at beginning of period 1,090,037 1,129,665 1,129,665 ---------- ---------- ---------- Cash and cash equivalents at end of period 1,043,802 1,274,282 1,090,037 ---------- ---------- ---------- Cash and cash equivalents consists of: Cash and short term bank deposits 1,138,953 1,458,748 1,182,034 Overdrafts (95,151) (184,466) (91,997) 1,043,802 1,274,282 1,090,037 ---------- ---------- ----------
Notes to the Condensed Financial Statements
for the six months ended 30 September 2016
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 2016 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 European Union.
The preparation of the interim financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of certain assets, liabilities, revenues and expenses together with disclosure of contingent assets and liabilities. Estimates and underlying assumptions are reviewed on an ongoing basis.
These condensed interim financial statements for the six months ended 30 September 2016 and the comparative figures for the six months ended 30 September 2015 are unaudited and have not been reviewed by the Auditors. The summary financial statements for the year ended 31 March 2016 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 2016 and are described in those financial statements on pages 185 to 192.
The Group has adopted the following amendments to existing standards during the period which did not result in a material change to the Group's consolidated financial statements:
-- Annual Improvements 2012-2014 Cycle; -- Amendments to IAS 1 Disclosure Initiative; -- Amendments to IFRS 11 Accounting for Acquisitions of Interests in Joint Operations; and
-- Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods of Depreciation and Amortisation.
There were a number of other amendments to existing standards which became effective for the Group for the first time from 1 April 2016. None of these had a material impact on the Group.
3. Going Concern
Having reassessed the principal risks facing the Group (as detailed on pages 15 to 17 of the Annual Report for the year ended 31 March 2016), the Directors believe that the Group is well placed to manage these risks successfully.
The Directors have a reasonable expectation that DCC plc, and the Group as a whole, has adequate resources to continue in operational existence for the foreseeable future, a period of not less than twelve months from the date of this report. For this reason, the Directors continue to adopt the going concern basis of accounting in preparing the condensed interim financial statements.
4. Reporting Currency
The Group's financial statements are presented in sterling, denoted by the symbol 'GBP'. Results and cash flows of operations based in non-sterling countries have been translated into sterling at average rates for the period, and the related balance sheets have been translated at the rates of exchange ruling at the balance sheet date. The principal exchange rates used for translation of results and balance sheets into sterling were as follows:
Average rate Closing rate ------------------------------------ ------------------------------------- 6 months 6 months Year 6 months 6 months Year ended ended ended ended ended ended 30 Sept. 30 Sept. 31 March 30 Sept. 30 Sept. 31 March 2016 2015 2016 2016 2015 2016 StgGBP1= StgGBP1= StgGBP1= StgGBP1= StgGBP1= StgGBP1= Euro 1.2364 1.3902 1.3697 1.1614 1.3541 1.2633 Swedish Krona 11.5928 13.0057 12.7937 11.1742 12.7397 11.6547 Danish Krone 9.2173 10.3763 10.2297 8.6542 10.1013 9.4134 Norwegian Krone 11.5655 12.2304 12.4995 10.4373 12.8971 11.8938 5. Segmental Reporting
DCC is a sales, marketing, distribution and business support services group headquartered in Dublin, Ireland. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as Mr. Tommy Breen, Chief Executive and his executive management team. The Group is organised into four operating segments: DCC Energy, DCC Healthcare, DCC Technology and DCC Environmental.
DCC Energy markets and sells liquefied petroleum gas products and services for commercial/industrial, home heating, cooking/leisure and transport use in Europe. DCC Energy markets and sells oil products and services for similar uses, in addition to marine and aviation uses in Europe. DCC Energy also owns, operates and supplies unmanned and manned retail service stations in Europe.
DCC Healthcare sells, markets and distributes own and third party pharmaceuticals and medical products to healthcare providers across all sectors of the British and Irish healthcare markets. DCC Healthcare also provides outsourced product development, manufacturing, packaging and other services to health and beauty brand owners in Europe.
DCC Technology sells, markets and distributes a broad range of consumer and business technology products and services 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.
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 2016 of GBP5.053 billion were not materially different from the equivalent figure at 31 March 2016 and therefore the related segmental disclosure note has been omitted in accordance with IAS 34 Interim Financial Reporting.
Intersegment revenue is not material and thus not subject to separate disclosure.
An analysis of the Group's performance by segment and geographic location is as follows: (a) By operating segment Unaudited six months ended 30 September 2016 --------------------------------------------------------------------- DCC DCC DCC DCC Energy Healthcare Technology Environmental Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Segment revenue 4,118,774 244,283 1,144,229 89,258 5,596,544 --------- ---------- --------------- ------- ------------- Operating profit* 76,033 19,760 11,302 10,728 117,823 Amortisation of intangible assets (13,390) (3,307) (1,481) (88) (18,266) Net operating exceptionals (note 6) (1,819) (1,361) (1,236) - (4,416) --------- ---------- --------------- ------- ------------- Operating profit 60,824 15,092 8,585 10,640 95,141 --------- ---------- --------------- ------- ------------- Unaudited six months ended 30 September 2015 -------------------------------------------------------------------------- DCC DCC DCC DCC Energy Healthcare Technology Environmental Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Segment revenue 3,659,729 239,120 1,089,055 78,336 5,066,240 --------- ---------- --------------- ------- ------------- Operating profit* 52,885 18,465 8,570 8,467 88,387 Amortisation of intangible assets (7,246) (3,307) (1,092) (239) (11,884) Net operating exceptionals (note 6) (6,221) 3,586 (2,503) (725) (5,863) --------- ---------- --------------- ------- ------------- Operating profit 39,418 18,744 4,975 7,503 70,640 --------- ---------- --------------- ------- ------------- Audited year ended 31 March 2016 -------------------------------------------------------------------------------- DCC DCC DCC DCC Energy Healthcare Technology Environmental Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Segment revenue 7,515,308 490,617 2,441,705 153,455 10,601,085 --------- ---------- --------------- ------- ------------ Operating profit* 205,181 45,039 35,125 15,178 300,523 Amortisation of intangible assets (21,381) (7,138) (2,627) (476) (31,622) Net operating exceptionals (note 6) (9,057) 5,859 (10,454) (988) (14,640) --------- ---------- --------------- ------- ------------ Operating profit 174,743 43,760 22,044 13,714 254,261 --------- ---------- --------------- ------- ------------
* Operating profit before amortisation of intangible assets and net operating exceptionals
(b) By geography
The Group has a presence in 15 countries worldwide. The following represents a geographical analysis about the country of domicile (Republic of Ireland) and countries with material revenue.
Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 Republic of Ireland 339,219 318,768 659,723 United Kingdom 3,421,914 3,537,671 6,985,521 France 1,038,271 485,229 1,487,875 Other 797,140 724,572 1,467,966 ---------- ---------- ----------------- 5,596,544 5,066,240 10,601,085 ---------- ---------- ----------------- 6. Exceptionals Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 Restructuring costs (2,280) (6,458) (16,517) Acquisition and related costs (1,374) (4,633) (7,478) Impairment of property, plant and equipment (684) - (947) Adjustments to contingent acquisition consideration 73 - 6,290 Gain arising from legal case settlements - 5,201 4,291 Legal and other operating exceptional items (151) 27 (279) Net operating exceptional items (4,416) (5,863) (14,640) Mark to market of swaps and related debt 1,901 (3,819) (9,419) ---------- ---------- --------- Net exceptional items before taxation (2,515) (9,682) (24,059) Tax attributable to net exceptional items (386) (1,037) 710 ---------- ---------- --------- Net exceptional items after taxation (2,901) (10,719) (23,349) Non-controlling interest share of net exceptional items after taxation - - (323) ---------- ---------- --------- Net exceptional items (2,901) (10,719) (23,672) ---------- ---------- ---------
The analysis of the net operating exceptional items is as follows:
Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 Exceptional operating income 408 5,291 13,829 Exceptional operating expense (4,824) (11,154) (28,469) ---------- ---------- --------------- (4,416) (5,863) (14,640) ---------- ---------- ---------------
Acquisition related costs amounted to GBP1.374 million and restructuring costs amounted to GBP2.280 million. Acquisition costs include the professional fees and tax costs (such as stamp duty) relating to the evaluation and completion of acquisition opportunities.
Most of the Group's debt has been raised in the US private placement market and swapped, using long term interest, currency and cross currency interest rate derivatives, to both fixed and floating rate sterling and euro. The level of ineffectiveness calculated under IAS 39 on the fair value and cash flow hedge relationships relating to fixed rate debt, together with gains or losses arising from marking to market swaps not designated as hedges, offset by foreign exchange translation gains or losses on the related fixed rate debt, is charged or credited as an exceptional item. In the six months ended 30 September 2016 this amounted to an exceptional gain of GBP1.901 million. The exceptional gains and losses on the Group's private placement debt and related hedging instruments will net to zero on a cumulative basis over their lives.
There was a net tax charge of GBP0.386 million in relation to the above net exceptional items.
7. Taxation
The taxation expense for the interim period is based on management's best estimate of the weighted average tax rate that is expected to be applicable for the full year. The Group's effective tax rate for the period was 17.5% (six months ended 30 September 2015: 16.0% and year ended 31 March 2016: 16.0%).
8. Earnings per Ordinary Share Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 Profit attributable to owners of the Parent 65,588 41,270 178,031 Amortisation of intangible assets after tax 13,235 9,315 24,201 Exceptionals after tax (note 6) 2,901 10,719 23,672 ---------- ---------- --------- Adjusted profit after taxation and non-controlling interests 81,724 61,304 225,904 ---------- ---------- ---------
Basic earnings per ordinary share
Basic earnings per share is calculated by dividing the profit attributable to owners of the Parent by the weighted average number of ordinary shares in issue during the period, excluding ordinary shares purchased by the Company and held as treasury shares.
The adjusted figures for basic earnings per ordinary share (a non-IFRS financial measure) are intended to demonstrate the results of the Group after eliminating the impact of amortisation of intangible assets and net exceptionals.
Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 pence pence pence Basic earnings per ordinary share 73.95p 47.32p 202.64p Amortisation of intangible assets after tax 14.92p 10.68p 27.55p Exceptionals after tax (note 6) 3.27p 12.29p 26.95p ---------- ---------- --------- Adjusted basic earnings per ordinary share 92.14p 70.29p 257.14p ---------- ---------- --------- Weighted average number of ordinary shares in issue (thousands) 88,691 87,216 87,854 ---------- ---------- ---------
Diluted earnings per ordinary share
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. Share options and awards are the Company's only category of dilutive potential ordinary shares.
Employee share options and awards, which are performance-based, are treated as contingently issuable shares because their issue is contingent upon satisfaction of specified performance conditions in addition to the passage of time. These contingently issuable shares are excluded from the computation of diluted earnings per ordinary share where the conditions governing exercisability would not have been satisfied as at the end of the reporting period if that were the end of the vesting period.
The adjusted figures for diluted earnings per ordinary share are intended to demonstrate the results of the Group after eliminating the impact of amortisation of intangible assets and net exceptionals.
Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 pence pence pence Diluted earnings per ordinary share 73.42p 46.91p 201.02p Amortisation of intangible assets after tax 14.81p 10.59p 27.32p Exceptionals after tax (note 6) 3.25p 12.19p 26.73p ---------- ---------- --------- Adjusted diluted earnings per
ordinary share 91.48p 69.69p 255.07p ---------- ---------- --------- Weighted average number of ordinary shares in issue (thousands) 89,332 87,968 88,564 ---------- ---------- ---------
The weighted average number of ordinary shares used in calculating the diluted earnings per share for the six months ended 30 September 2016 was 89.332 million (six months ended 30 September 2015: 87.968 million). A reconciliation of the weighted average number of ordinary shares used for the purposes of calculating the diluted earnings per share amounts is as follows:
Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 '000 '000 '000 Weighted average number of ordinary shares in issue 88,691 87,216 87,854 Dilutive effect of options and awards 641 752 710 ---------- ---------- --------- Weighted average number of ordinary shares in issue (thousands) 89,332 87,968 88,564 ---------- ---------- --------- 9. Dividends Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 Interim - paid 33.04 pence per share on 7 December 2015 - - 30,292 Final - paid 64.18 pence per share on 21 July 2016 (paid 55.81 pence per share on 23 July 2015) 55,720 49,897 50,646 55,720 49,897 80,938 ------------------ --------------------- ---------
On 11 November 2016, the Board approved an interim dividend of 37.17 pence per share (GBP32.995 million). These condensed interim financial statements do not reflect this dividend payable.
10. Other Reserves For the six months ended 30 September 2016 Foreign Share based Cash flow currency payment hedge translation Other reserve reserve reserve reserves Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 April 2016 14,954 (8,112) 70,887 932 78,661 Currency translation - - 35,972 - 35,972 Movements relating to cash flow hedges - 9,409 - - 9,409 Movement in deferred tax liability on cash flow hedges - (1,504) - - (1,504) Share based payment 1,415 - - - 1,415 ------------------- --------- ----------- -------- --------- At 30 September 2016 16,369 (207) 106,859 932 123,953 ------------------- --------- ----------- -------- --------- For the six months ended 30 September 2015 Foreign Share based Cash flow currency payment hedge translation Other reserve reserve reserve reserves Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 April 2015 12,756 (10,462) 32,683 932 35,909 Currency translation - - 6,361 - 6,361 Movements relating to cash flow hedges - (3,881) - - (3,881) Movement in deferred tax liability on cash flow hedges - 1,337 - - 1,337 Share based payment 867 - - - 867 ------------------- --------- ----------- -------- --------- At 30 September 2015 13,623 (13,006) 39,044 932 40,593 ------------------- --------- ----------- -------- --------- For the year ended 31 March 2016 Foreign Share based Cash flow currency payment hedge translation Other reserve reserve reserve reserves Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 April 2015 12,756 (10,462) 32,683 932 35,909 Currency translation - - 35,706 - 35,706 Movements relating to cash flow hedges - 2,230 - - 2,230 Movement in deferred tax liability on cash flow hedges - 120 - - 120 Transfer to non-controlling interests arising on acquisition - - 2,498 - 2,498 Share based payment 2,198 - - - 2,198 ------------------- --------- ----------- -------- --------- At 31 March 2016 14,954 (8,112) 70,887 932 78,661 ------------------- --------- ----------- -------- --------- 11. Analysis of Net (Debt)/Cash Unaudited Unaudited Audited 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 Non-current assets: Derivative financial instruments 271,609 194,133 209,518 ------------ ------------ ---------------- Current assets: Derivative financial instruments 37,132 5,900 15,915 Cash and cash equivalents 1,138,953 1,458,748 1,182,034 ------------ ------------ ---------------- 1,176,085 1,464,648 1,197,949 ------------ ------------ ---------------- Non-current liabilities: Finance leases (131) (199) (127) Derivative financial instruments - (1,083) (343) Unsecured Notes (1,384,880) (1,285,522) (1,260,294) ------------ ------------ ---------------- (1,385,011) (1,286,804) (1,260,764) ------------ ------------ ---------------- Current liabilities: Bank borrowings (95,151) (184,466) (91,997) Finance leases (322) (358) (379) Derivative financial instruments (2,574) (18,891) (8,401) Unsecured Notes (76,801) (14,833) (100,428) ------------ ------------ ---------------- (174,848) (218,548) (201,205) ------------ ------------ ---------------- Net (debt)/cash (112,165) 153,429 (54,502) ------------ ------------ ---------------- 12. Post Employment Benefit Obligations
The Group's defined benefit pension schemes' assets were measured at fair value at 30 September 2016. The defined benefit pension schemes' liabilities at 30 September 2016 were updated to reflect material movements in underlying assumptions.
The net deficit on the Group's post employment benefit obligations increased from GBP0.347 million at 31 March 2016 to GBP7.045 million at 30 September 2016. The increase in the deficit was primarily driven by an actuarial loss on liabilities arising from a reduction in the discount rate used to value these liabilities. This actuarial loss was somewhat offset by contributions in excess of the current service cost.
The following actuarial assumptions have been made in determining the Group's retirement benefit obligation for the six months ended 30 September 2016:
Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 Discount rate - Republic of Ireland 1.50% 2.50% 2.00% - UK 2.45% 4.00% 3.60% ---------- ---------- --------- 13. Business Combinations
A key strategy of the Group is to create and sustain market leadership positions through acquisitions in markets it currently operates in, together with extending the Group's footprint into new geographic markets. In line with this strategy, there were a number of relatively small acquisitions completed by the Group during the period.
The acquisition data presented below reflects the fair value of the identifiable net assets acquired (excluding net cash/debt acquired) in respect of acquisitions completed during the six months ended 30 September 2016, together with measurement period adjustments made to the provisional fair values in respect of the acquisition of Butagaz S.A.S. ('Butagaz') which was completed during the year ended 31 March 2016. These measurement period adjustments primarily comprised reclassifications between categories of assets and liabilities.
Butagaz measurement period Acquisitions adjustments Total Total 6 months 6 months 6 months 6 months ended ended ended ended 30 Sept. 30 Sept. 30 Sept. 30 Sept. 2016 2016 2016 2015 GBP'000 GBP'000 GBP'000 GBP'000 Assets Non-current assets Property, plant and equipment 68 (2,168) (2,100) 235,743 Intangible assets - other intangible assets - - - 120,453 Equity accounted investments - 1,762 1,762 42 -------------------- ----------- ------------------- ------------------- Total non-current assets 68 (406) (338) 356,238 -------------------- ----------- ------------------- ------------------- Current assets Inventories 1,324 - 1,324 44,420 Trade and other receivables 3,252 472 3,724 88,896 -------------------- ----------- ------------------- ------------------- Total current assets 4,576 472 5,048 133,316 -------------------- ----------- ------------------- ------------------- Liabilities Non-current liabilities Deferred income tax liabilities (13) - (13) (44,441) Provisions for liabilities and charges - - - (189,639) Total non-current liabilities (13) - (13) (234,080) -------------------- ----------- ------------------- ------------------- Current liabilities Trade and other payables (2,517) 4,962 2,445 (75,365) Provisions for liabilities and charges - (5,043) (5,043) (18,328) Current income tax liability (193) 8,672 8,479 (13,332) Acquisition related liabilities - (9,717) (9,717) - -------------------- ----------- ------------------- Total current liabilities (2,710) (1,126) (3,836) (107,025) -------------------- ----------- ------------------- ------------------- Identifiable net assets acquired 1,921 (1,060) 861 148,449 Non-controlling interest arising on acquisition - - - (18,542) Intangible assets - goodwill 5,738 1,060 6,798 237,374 -------------------- ----------- ------------------- ------------------- Total consideration 7,659 - 7,659 367,281 -------------------- ----------- ------------------- ------------------- Satisfied by: Cash 8,813 - 8,813 134,744 Cash and cash equivalents acquired (2,204) - (2,204) (91,429) -------------------- ----------- ------------------- ------------------- Net cash outflow 6,609 - 6,609 43,315 Acquisition related liabilities 1,050 - 1,050 323,966 -------------------- ----------- ------------------- ------------------- Total consideration 7,659 - 7,659 367,281 -------------------- ----------- ------------------- -------------------
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 adjustments made to the carrying amounts of assets and liabilities acquired in arriving at their fair values. The initial assignment of fair values to identifiable net assets acquired has been performed on a provisional basis in respect of a number of the business combinations above given the timing of closure of these transactions. Any amendments to these fair values within the twelve month timeframe from the date of acquisition will be disclosable in the Group's condensed interim financial statements for the six months ending 30 September 2017 as stipulated by IFRS 3.
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.
Acquisition related costs included in other operating expenses in the Group Income Statement amounted to GBP1.374 million (six months ended 30 September 2015: GBP4.633 million).
No contingent liabilities were recognised on the acquisitions completed during the financial period or the prior financial years.
The gross contractual value of trade and other receivables as at the respective dates of acquisition amounted to GBP3.318 million. The fair value of these receivables is GBP3.252 million (all of which is expected to be recoverable) and is inclusive of an aggregate allowance for impairment of GBP0.066 million.
The fair value of contingent consideration recognised at the date of acquisition is calculated by discounting the expected future payment to present value at the acquisition date. In general, for contingent consideration to become payable, pre-defined profit thresholds must be exceeded. On an undiscounted basis, the future payments for which the Group may be liable for acquisitions completed during the period range from nil to GBP4.7 million.
The acquisitions during the period contributed GBP8.3 million to revenues and GBP0.7 million to profit after tax. The revenue and profit of the Group determined in accordance with IFRS for the period ended 30 September 2016 would not have been materially different than reported in the Income Statement if the acquisition date for all business combinations completed during the period had been as of the beginning of the period.
14. Seasonality of Operations
The Group's operations are significantly second-half weighted primarily due to a portion of the demand for DCC Energy's products being weather dependent and seasonal buying patterns in DCC Technology.
15. Related Party Transactions
There have been no related party transactions or changes in the nature and scale of the related party transactions described in the Annual Report in respect of the year ended 31 March 2016 that could have had a material impact on the financial position or performance of the Group in the six months ended 30 September 2016.
16. Events after the Balance Sheet Date
Dansk Fuels
On 23 March 2016 DCC announced it had reached agreement to acquire Dansk Fuels, a commercial, aviation and retail fuels business in Denmark, formerly owned by Shell. Following receipt of competition clearance from the European Commission the acquisition was completed on 31 October 2016. The transaction requires a total investment by DCC of approximately DKK300 million (GBP35 million). An initial assignment of fair values to identifiable net assets acquired has not been completed given the timing of the closure of the transaction.
Hammer
As announced on 14 October 2016, DCC Technology has agreed to acquire 100% of the issued share capital of Hammer Consolidated Holdings Limited ('Hammer'), a specialist distributor of server and storage solutions to resellers in the UK and Continental Europe. The acquisition is based on an initial enterprise value of GBP38.3 million. The consideration will be paid entirely in cash and is structured as an initial payment at completion, followed by earn out payments over three years based on Hammer's future trading results.
The acquisition, which is subject to competition clearance from the European Commission, is expected to complete by the end of December 2016. As such, an initial assignment of fair values to identifiable net assets acquired has not yet been performed.
Medium
In November 2016 DCC Technology acquired Medium (U.K.) Limited, a distributor of professional audio visual equipment to resellers in the UK. The consideration for the acquisition was based on an enterprise valuation of GBP8.3 million and was satisfied in cash at completion. An initial assignment of fair values to identifiable net assets acquired has not been completed given the timing of the closure of the transaction.
Gaz Européen
DCC Energy has agreed to acquire Gaz Européen Holdings SAS ('Gaz Européen'), a natural gas retail and marketing business which supplies business and public sector customers in France. DCC has agreed to acquire 97% of the share capital of Gaz Européen on completion, based on an initial enterprise value of EUR110 million (GBP95.7 million). The remaining shares will be acquired based on Gaz Européen's results for the three years ending 31 March 2021, 2022 and 2023. All of the consideration will be satisfied in cash.
The acquisition is conditional, inter alia, on clearance from the French Competition Authority and is expected to complete in the first calendar quarter of 2017. As such, an initial assignment of fair values to identifiable net assets acquired has not yet been performed.
Medisource
In November 2016, DCC Healthcare agreed to acquire Medisource Ireland Limited, a specialist in the procurement and sale of Exempt Medicinal Products, for an initial enterprise valuation of EUR31.5 million (GBP27.4 million). The acquisition, which is subject to competition clearance, is expected to complete in the first calendar quarter of 2017. As such, an initial assignment of fair values to identifiable net assets acquired has not yet been performed.
17. Board Approval
This report was approved by the Board of Directors of DCC plc on 11 November 2016.
18. Distribution of Interim Report
This report and further information on DCC is available at the Company's website www.dcc.ie. A printed copy is available to the public at the Company's registered office at DCC House, Leopardstown Road, Foxrock, Dublin 18, Ireland.
Statement of Directors' Responsibilities
We confirm that to the best of our knowledge:
1. the condensed set of interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;
2. the interim management report includes a fair review of the information required by:
Regulation 8(2) of the Transparency (Directive 2004/109/EC) Regulations 2007, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
Regulation 8(3) of the Transparency (Directive 2004/109/EC) Regulations 2007, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.
On behalf of the Board
John Moloney Tommy Breen
Chairman Chief Executive
11 November 2016
Supplementary Financial Information
Alternative Performance Measures
The Group reports certain financial measures that are not required under International Financial Reporting Standards ('IFRS') which represent the accounting principles under which the Group reports. The Group believes that the presentation of these non-IFRS measures provides useful supplemental information which, when viewed in conjunction with our IFRS financial information, provides investors with a more meaningful understanding of the underlying financial and operating performance of the Group and its divisions.
These non-IFRS financial measures are primarily used for the following purposes:
-- to evaluate the historical and planned underlying results of our operations; -- to set director and management remuneration; and -- to discuss and explain the Group's performance with the investment analyst community.
None of the non-IFRS measures should be considered as an alternative to financial measures derived in accordance with IFRS. The non-IFRS measures can have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results as reported under IFRS.
The principal non-IFRS measures used by the Group, together with reconciliations where the non-IFRS measures are not readily identifiable from the financial statements, are as follows:
Operating profit before net exceptionals and amortisation of intangible assets ('EBITA')
Definition
This comprises operating profit as reported in the Group Income Statement before net operating exceptional items and amortisation of intangible assets.
6 months 6 months Year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 -------------------------------------------------- ---------- --------- ----------- Operating profit 95,141 70,640 254,261 Net operating exceptional items 4,416 5,863 14,640 Amortisation of intangible assets 18,266 11,884 31,622 -------------------------------------------------- ---------- --------- ----------- Operating profit before net exceptionals and amortisation of intangible assets ('EBITA') 117,823 88,387 300,523 -------------------------------------------------- ---------- --------- -----------
Net interest
Definition
The Group defines net interest as the net total of finance costs and finance income before interest related exceptional items as presented in the Group Income Statement.
6 months 6 months Year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 ----------------------------------------- --------- --------- --------- Finance costs before exceptional items (35,751) (32,161) (64,970) Finance income before exceptional items 19,165 17,532 35,981 ----------------------------------------- --------- --------- --------- Net interest (16,586) (14,629) (28,989) ----------------------------------------- --------- --------- ---------
Effective tax rate
Definition
The Group's effective tax rate expresses the income tax expense before exceptionals and deferred tax attaching to the amortisation of intangible assets as a percentage of EBITA less net interest.
6 months 6 months Year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 --------------------------------------------- --------- --------- ----------- EBITA 117,823 88,387 300,523 Net interest (16,586) (14,629) (28,989) --------------------------------------------- --------- --------- ----------- Earnings before taxation 101,237 73,758 271,534 --------------------------------------------- --------- --------- -----------
Income tax expense 13,071 10,269 35,314 Income tax relating to exceptional items (386) (1,037) 710 Deferred tax attaching to amortisation of intangible assets 5,031 2,569 7,421 --------------------------------------------- --------- --------- ----------- Income tax expense before exceptionals and deferred tax attaching to amortisation of intangible assets 17,716 11,801 43,445 --------------------------------------------- --------- --------- ----------- Effective tax rate (%) 17.5% 16.0% 16.0% --------------------------------------------- --------- --------- -----------
Net capital expenditure
Definition
Net capital expenditure comprises purchases of property, plant and equipment, proceeds from the disposal of property, plant and equipment and government grants received in relation to property, plant and equipment.
6 months 6 months Year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 ------------------------------------------- --------- --------- --------- Purchase of property, plant and equipment 65,878 54,695 134,172 Proceeds from disposal of property, plant and equipment (6,076) (3,439) (13,523) Net capital expenditure 59,802 51,256 120,649 ------------------------------------------- --------- --------- ---------
Free cash flow
Definition
Free cash flow is defined by the Group as cash generated from operations before exceptional items as reported in the Group Cash Flow Statement after interest paid, income tax paid, net capital expenditure, dividends received from equity accounted investments and interest received.
6 months 6 months Year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 ------------------------------------------ --------- --------- ---------- Cash generated from operations before exceptionals 141,039 120,739 411,712 Interest paid (33,313) (31,348) (64,432) Income tax paid (28,122) (15,927) (35,346) Net capital expenditure (59,802) (51,256) (120,649) Dividends received from equity accounted investments 121 - 365 Interest received 19,191 17,479 36,004 ------------------------------------------ --------- --------- ---------- Free cash flow 39,114 39,687 227,654 ------------------------------------------ --------- --------- ----------
Free cash flow (before interest and tax payments)
Definition
Free cash flow (before interest and tax payments) is defined by the Group as cash generated from operations before exceptional items as reported in the Group Cash Flow Statement after net capital expenditure.
6 months 6 months Year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 ----------------------------------------- --------- --------- ---------- Cash generated from operations before exceptionals 141,039 120,739 411,712 Net capital expenditure (59,802) (51,256) (120,649) ----------------------------------------- --------- --------- ---------- Free cash flow (before interest and tax payments) 81,237 69,483 291,063 ----------------------------------------- --------- --------- ----------
Committed acquisition expenditure
Definition
The Group defines committed acquisition expenditure as the total acquisition cost of subsidiaries as presented in the Group Cash Flow Statement (excluding amounts related to acquisitions which were committed to in previous years) and future acquisition related liabilities for acquisitions committed to during the year.
6 months 6 months Year ended ended ended 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 -------------------------------------------- --------- ---------- ---------- Net cash outflow on acquisitions during the year 6,609 43,315 390,042 Acquisition related liabilities arising on acquisitions during the year 1,050 323,966 81,519 Net cash outflow on acquisitions committed to in the previous year (6,609) (24,425) (351,045) Acquisition related liabilities committed to in the previous year (1,050) (322,866) (79,288) Amounts committed in the current year 180,515 20,425 39,000 -------------------------------------------- --------- ---------- ---------- Committed acquisition expenditure 180,515 40,415 80,228 -------------------------------------------- --------- ---------- ----------
Net working capital
Definition
Net working capital represents the net total of inventories, trade and other receivables (excluding interest receivable), and trade and other payables (excluding interest payable, amounts due in respect of property, plant and equipment and current government grants).
As at As at As at 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 -------------------------------------------- ------------ ------------ ------------ Inventories 435,716 402,658 393,948 Trade and other receivables 997,017 898,780 916,069 Interest receivable included in trade and other receivables (151) (280) (230) Trade and other payables (1,536,255) (1,383,587) (1,437,832) Interest payable included in trade and other payables 5,342 5,252 3,967 Amounts due in respect of property, plant and equipment included in trade and other payables 228 752 2,967 Government grants included in trade and other payables 83 25 26 -------------------------------------------- ------------ ------------ ------------ Net working capital (98,020) (76,400) (121,085) -------------------------------------------- ------------ ------------ ------------
Working capital (days)
Definition
Working capital days measures how long it takes in days for the Group to convert working capital into revenue.
As at As at As at 30 Sept. 30 Sept. 31 March 2016 2015 2016 GBP'000 GBP'000 GBP'000 ------------------------- ---------- --------- ---------- Net working capital (98,020) (76,400) (121,085) September/March revenue 1,014,498 988,134 967,014 ------------------------- ---------- --------- ---------- Working capital (days) (2.9 (2.3 (3.9 days) days) days) ------------------------- ---------- --------- ----------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GMMMMVFKGVZM
(END) Dow Jones Newswires
November 14, 2016 02:01 ET (07:01 GMT)
1 Year Dcc Chart |
1 Month Dcc Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions