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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 | |
---|---|---|---|---|---|---|---|---|---|---|
30.00 | 0.55% | 5,495.00 | 5,495.00 | 5,500.00 | 5,565.00 | 5,485.00 | 5,505.00 | 192,263 | 16:35:09 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Offices-holdng Companies,nec | 22.2B | 334.02M | 3.3818 | 16.26 | 5.43B |
TIDMDCC
RNS Number : 0473W
DCC PLC
04 November 2014
4 November 2014
Interim Report
For the six months ended 30 September 2014
DCC plc, the international sales, marketing, distribution and business support services group, headquartered in Dublin, today announced its results for the six months ended 30 September 2014.
RESULTS HIGHLIGHTS Restated** 2014 2013 % change GBP'm GBP'm Revenue 5,514.4 5,409.7 +1.9% Operating profit* 73.2 68.8 +6.4% Profit before net exceptional items, amortisation of intangible assets and tax 60.3 58.4 +3.1% Adjusted earnings per share* 62.53 pence 58.34 pence +7.2% Dividend per share 28.73 pence 26.12 pence +10.0% Operating cash flow 17.9 110.1 Net debt at 30 September 272.8 216.1 * Excluding net exceptionals and amortisation of intangible assets ** All comparative numbers presented in this report have been restated to reflect the impact of new accounting rules for joint ventures ----------------------------------------------------------------------------------------------------------------------
Ø Revenue increased by 1.9% to GBP5.5 billion. Volumes in DCC Energy increased by 5.3% but its revenue was broadly flat, primarily due to the impact of lower oil prices. Excluding the impact of acquisitions, DCC Energy's volumes were in line with last year despite the milder weather in the current year.
Ø Revenue, excluding DCC Energy, was up 9.2%.
Ø Operating profit increased by 6.4% to GBP73.2 million.
Ø Operating profit, excluding DCC Energy, increased by 16.9%, driven by strong growth in DCC Technology and DCC Healthcare.
Ø Recent acquisitions are performing well.
Ø The Group increased its acquisition activity, with GBP148 million committed on acquisitions year to date.
Ø Agreement reached to dispose of the Irish subsidiaries of DCC Food & Beverage (Kelkin, Robert Roberts, Allied Logistics). The aggregate consideration is approximately EUR75 million (GBP60 million).
Ø A seasonal increase in working capital, which should largely reverse in the second half, reduced operating cash flow to GBP17.9 million. Working capital days remained low at 30 September 2014 (2.3 days versus 1.8 days at 30 September 2013).
Ø The interim dividend has been increased by 10.0% to 28.73 pence per share.
Ø The Group now expects that growth in operating profit and adjusted earnings per share will be in the range of 5% - 10% over the prior year (previously approximately 10% - 12%) reflecting the impact of the particularly mild weather in September and October.
Commenting on the results Tommy Breen, Chief Executive, said:
"In the seasonally less significant first half, operating profit of GBP73.2 million was 6.4% ahead of the prior year. DCC Energy's operating profit was modestly behind the prior year as its business was impacted by the very mild weather during the period particularly in the relatively important months of April, May and September. Operating profit, excluding DCC Energy, increased by 16.9% with each of the other four divisions reporting profit growth.
Adjusted earnings per share increased by 7.2% to 62.53 pence.
The Board has decided to pay an interim dividend of 28.73 pence per share, which represents a 10.0% increase on the prior year.
Assuming normal winter weather conditions in the balance of the financial year, the Group now expects that the year to 31 March 2015 will show growth in operating profit and adjusted earnings per share in the range of 5% - 10% over the prior year (previously approximately 10% - 12%).
Good progress was made in the pursuit of the strategic objectives, in particular through the acquisitions of the Esso Express, Williams Medical and CapTech businesses and the disposal of the Group's Irish food and beverage subsidiaries. DCC remains very well placed to continue the development of its business in existing and new geographies."
For reference, please contact:
Tommy Breen, Chief Executive Tel: +353 1 2799 400
Fergal O'Dwyer, Chief Financial Officer Email:investorrelations@dcc.ie
Stephen Casey, Investor Relations Manager Website: www.dcc.ie
Interim Management Report
For the six months ended 30 September 2014
Results
A summary of the results for the six months ended 30 September 2014 is as follows:
Restated ** 2014 2013 GBP'm GBP'm % change Revenue 5,514.4 5,409.7 +1.9% Operating profit* DCC Energy 31.9 33.5 -4.7% DCC Technology 15.2 14.1 +7.7% DCC Healthcare 15.9 12.6 +26.7% DCC Environmental 7.1 6.3 +11.7% DCC Food & Beverage 3.1 2.3 +33.3% Group operating profit 73.2 68.8 +6.4% Share of equity accounted investments 0.5 0.5 Finance costs (net) (13.4) (10.9) Profit before net exceptionals, amortisation of intangible assets and tax 60.3 58.4 +3.1% Net exceptional credit/(charge) 0.2 (5.9) Amortisation of intangible assets (13.0) (10.0) Profit before tax 47.5 42.5 +11.7% Taxation (5.2) (7.2) Profit after tax 42.3 35.3 +19.9% Adjusted earnings per share* 62.53 pence 58.34 pence +7.2% Dividend per share 28.73 pence 26.12 pence +10.0% Operating cash flow 17.9 110.1 Net debt at 30 September 272.8 216.1 * Excluding net exceptionals and amortisation of intangible assets ** All comparative numbers presented in this report have been restated to reflect the impact of new accounting rules for joint ventures ----------------------------------------------------------------------------- -------------
Revenue
Revenue increased by 1.9% to GBP5.5 billion.
Volumes in DCC Energy increased by 5.3% but revenues were broadly flat primarily due to the impact of lower oil prices. Excluding the impact of acquisitions, DCC Energy volumes were in line with last year despite the milder weather in the current year, with good organic growth in non-heating volumes offsetting the weak demand for heating products, which declined by approximately 14%.
Excluding DCC Energy, Group revenue increased by 9.2%. Approximately half of this growth was organic, primarily driven by DCC Technology.
Operating profit performance
Group operating profit in the first half of GBP73.2 million was 6.4% ahead of the prior year.
DCC Energy's operating profit was 4.7% behind the prior year as its business was impacted by the very mild weather during the period which more than offset the benefit of acquisitions. Organically, operating profit in DCC Energy was approximately 15% behind the prior year which reflected the contrast between the colder than normal first half last year and the much milder conditions in the current year, particularly in the relatively important months of April, May and September.
Excluding DCC Energy, operating profit increased by 16.9%, with growth in each of DCC's other four divisions. Approximately two thirds of this growth was from acquisitions.
In DCC Technology, the Group's second largest division, operating profit was 7.7% ahead of the prior year driven by growth in its reseller base and in the gaming console market, as well as a first time contribution from CapTech, which was acquired in September 2014.
DCC Healthcare traded well ahead of the prior year, benefiting from first time contributions from Williams Medical, acquired in May 2014, and Universal Products Manufacturing, acquired in January 2014.
DCC's two smaller divisions, DCC Environmental and DCC Food & Beverage, traded ahead of the prior year.
Change in accounting policy and restatement
IFRS 11 Joint Arrangements has been adopted as required by IFRS for the six months ended 30 September 2014. Whilst the impact on the comparatives is not material, they have been restated accordingly. Further details are set out in note 4.
Finance costs (net)
Net finance costs for the period increased to GBP13.4 million (2013: GBP10.9 million) primarily as a result of the incremental interest cost of the additional US Private Placement debt drawn down in the first half. Average net debt during the period was GBP339 million, compared to GBP361 million during the six months ended 30 September 2013.
Profit before net exceptionals, amortisation of intangible assets and tax
Profit before net exceptionals, amortisation of intangible assets and tax of GBP60.3 million increased by 3.1%.
Net exceptional gain and amortisation of intangible assets
The Group recorded an exceptional gain before tax of GBP0.2 million which primarily comprised credits in respect of the reorganisation of Group pension arrangements of GBP2.4 million, an IAS 39 credit of GBP0.5 million and a further net receipt in respect of ongoing litigation matters of GBP0.7 million, offset by acquisition costs of GBP2.2 million and restructuring costs of GBP1.3 million.
The charge for the amortisation of acquisition related intangible assets increased to GBP13.0 million from GBP10.0 million, primarily due to the acquisitions completed in the previous 12 months.
Taxation
The effective tax rate for the Group in the first half decreased to 13% compared to 16% in the first half last year. The full year tax rate in the prior year was 14%. The decrease in the current year is driven by the reduction in the UK corporation tax rate.
Adjusted earnings per share
Adjusted earnings per share increased by 7.2% to 62.53 pence.
Interim dividend increase of 10.0%
The Board has decided to pay an interim dividend of 28.73 pence per share, which represents a 10.0% increase on the prior year figure of 26.12 pence per share. This dividend will be paid on 28 November 2014 to shareholders on the register at the close of business on 14 November 2014. DCC continues to offer shareholders the option to receive their dividends in either sterling or euro.
Cash flow
As with its operating profit, the Group's cash flow is weighted towards its second half. The cash flow generated by the Group and the deployment of cash on acquisitions and dividends to shareholders for the six months ended 30 September 2014 can be summarised as follows:
Six months ended 30 September 2014 2013 GBP'm GBP'm Operating profit 73.2 68.8 (Increase)/decrease in working capital (82.5) 11.9 Depreciation and other 27.2 29.4 Operating cash flow 17.9 110.1 Capital expenditure (net) (36.3) (33.2) Free cash flow (before interest and tax) (18.4) 76.9 Interest paid (13.1) (8.4) Tax paid (13.1) (16.2) Dividends from joint ventures 0.7 - Free cash flow (43.9) 52.3 Acquisitions (105.5) (22.8) Dividends (43.0) (40.4) Exceptional items (3.6) (12.6) Share issues 1.7 1.2 Net outflow (194.3) (22.3) Opening net debt (87.3) (186.6) Translation and other 8.8 (7.2) Closing net debt (272.8) (216.1)
Operating cash flow of GBP17.9 million compares to GBP110.1 million in the comparative period and was impacted by an increase in net working capital which should largely reverse in the second half. The cash outflow in respect of the increase in working capital reflects the impact of the seasonal unwind from a negative 0.6 days at 31 March 2014 to 2.3 days at 30 September 2014. The particularly strong operating cash flow in the comparative period had benefited from the introduction of a supply chain financing programme within DCC Technology.
Working capital remains tightly managed with debtor days reducing to 29.3 days at 30 September 2014 from 31.4 days at 31 March 2014 and 33.1 days at 30 September 2013. Net working capital at 30 September 2014 was GBP74 million.
Acquisitions, divestitures and capital expenditure
In the six months ended 30 September 2014, committed acquisition and capital expenditure amounted to GBP184.2 million, as follows:
Acquisitions Capex Total GBP'm GBP'm GBP'm DCC Energy 85.4 23.5 108.9 DCC Technology 15.5 5.3 20.8 DCC Healthcare 44.6 2.8 47.4 DCC Environmental - 4.4 4.4 DCC Food & Beverage 2.4 0.3 2.7 Total 147.9 36.3 184.2
Acquisition activity
Committed acquisition expenditure in the six months ended 30 September 2014 amounted to GBP147.9 million.
DCC Energy
As previously announced on 28 August 2014, DCC reached agreement in principle with Esso Société Anonyme Francaise ("Esso SAF") to acquire the assets that comprise the Esso Express unmanned retail petrol station network and the Esso Motorway concessions in France. Completion of the acquisition is subject to, inter alia, the conclusion of the French Works Council consultation process and EC competition clearance. The transaction is expected to complete in the first half of calendar 2015 after the relevant clearances have been received and the implementation of an IT and operational infrastructure.
The total consideration will be EUR106 million (GBP84 million) plus stock in tank at the date of acquisition, all payable in cash on completion.
The acquisition will comprise Esso SAF's network of 274 Esso Express unmanned petrol stations ("Esso Express"), 48 Esso branded motorway concessions ("Motorway Sites") and contracts to supply c. 75 Dealer Owned Dealer Operated sites (together "Esso SAF Retail"). As part of the transaction, DCC Energy will enter into a long term branded supply agreement with Esso SAF.
Esso SAF was the pioneer of the unmanned format for retail petrol stations in France when it converted its full service network to the Express format c. 15 years ago. Esso Express (and the related dealer supply business) sells c. 1.7 billion litres of fuel annually. The Motorway Sites comprise 48 full service petrol stations selling c. 230 million litres of fuel annually located on motorways across France. These sites are operated under concession contracts for fixed periods which are subject to a public re-tendering process at the expiry of each concession. The management of the retail operations on the Motorway Sites is outsourced to one of the world's leading operators in the contract catering and support services industry.
The acquired business will have annual volumes of approximately 1.9 billion litres, revenue of approximately EUR2.2 billion (GBP1.7 billion) and is expected to generate a return on invested capital of approximately 15%.
On completion of the acquisition, DCC Energy will operate approximately 670 retail service stations across Europe and will supply approximately 2,000 dealer owned service stations. On a pro-forma basis, DCC Energy's product split by volume will be 58% road transport fuels, 16% commercial fuels, 16% heating oil and 10% LPG.
The acquisition of Esso SAF Retail will be DCC Energy's first acquisition in France and the second major acquisition in the European retail petrol station market, following the acquisition of Qstar announced in February 2014. It represents a significant further step in DCC's strategy to build a larger presence in the transport fuels sector and provides DCC with an excellent platform for growth in the French market.
DCC Technology
In September, DCC Technology expanded its European footprint with the acquisition of CapTech Distribution AB, Sweden's largest independent technology distribution business. With revenue of approximately GBP140 million, CapTech has a particularly strong market position in IT hardware and AV systems. CapTech partners with many of the world's leading technology manufacturers and brand owners, including Acer, Asus, BenQ, Dell, Microsoft, NEC and Samsung, and sells to a very broad range of etail, retail and reseller customers.
DCC Healthcare
As previously announced on 3 June 2014, DCC Healthcare acquired Williams Medical Holdings, the market leader in the supply of medical and pharmaceutical products and related services to general practitioners in Britain. The consideration (which was paid in cash at completion) was based on an enterprise value of GBP45 million. Williams Medical supplies a wide range of own and third party branded products - medical equipment, consumables and pharmaceuticals - to a very broad customer base of approximately 10,000 GP practices and healthcare providers in the community care and domiciliary care sectors. The business also provides a range of services including field based testing & calibration and repair & maintenance of equipment. The Williams Medical business model, similar to that in DCC Technology, is based on telesales, e-commerce, product catalogues and key account management, supported by high quality IT systems and cost effective logistics. The acquisition of Williams Medical represents an excellent strategic fit and another material step forward for DCC Healthcare, following the acquisitions of Kent Pharma, Leonhard Lang UK and UPL over the last two years.
Total cash spend on acquisitions in the six months ended 30 September 2014
The acquisition of Qstar, a Swedish unmanned retail petrol station company, along with its related fuel distribution and fuel card businesses, previously announced on 17 February 2014, was completed on 12 May 2014 for a total consideration of GBP39.7 million. The consideration for the Esso SAF Retail transaction will not be paid until the transaction completes, which is likely to be in the first half of calendar 2015. Accordingly, the cash outflow on acquisitions in the six months ended 30 September 2014, inclusive of a net movement in deferred and contingent acquisition consideration of GBP1.9 million, was GBP105.5 million.
The Group continues to be very active on the development front and is in a very strong financial position to pursue a range of acquisition and organic development opportunities.
Divestitures
As previously announced on 30 September 2014, the Group has agreed to dispose of Robert Roberts (including Findlater Wine & Spirits) and Kelkin to Valeo Foods, a leading Irish foods group. The disposal is conditional on clearance from the Competition and Consumer Protection Commission in Ireland.
In October 2014, DCC agreed to dispose of Allied Logistics to Musgrave, a major food retailer and distributor in Ireland. The disposal is conditional, inter alia, on clearance from the Competition and Consumer Protection Commission in Ireland. In addition, DCC expects to conclude the disposal of a property, previously used by Allied Logistics, at Park West Industrial Park, Dublin 12.
The aggregate consideration from these disposals is approximately EUR75 million (GBP60 million) and any gain over their combined carrying value, including goodwill, is expected to be modest.
Capital expenditure
Net capital expenditure in the first half of GBP36.3 million (2013: GBP33.2 million) compares to a depreciation charge of GBP30.2 million (2013: GBP30.1 million).
Financial strength
DCC's financial position remains very strong. At 30 September 2014, the Group had net debt of GBP272.8 million and total equity of GBP925.7 million. At the same date, DCC had cash resources, net of overdrafts, of GBP903 million and a further GBP150 million of undrawn committed long term debt facilities. The Group's outstanding term debt at 30 September 2014 had an average maturity of 7.3 years. Substantially all of the Group's debt has been raised in the US Private Placement market with an average credit margin of 1.66% over floating Euribor/Libor.
Outlook
Following the particularly mild weather conditions in September and October, the Group now expects that the year to 31 March 2015 will show growth in operating profit and adjusted earnings per share in the range of 5% - 10% over the prior year (previously approximately 10% - 12%). This guidance continues to be set against the important assumption that there will be normal winter weather conditions in the balance of the Group's financial year.
DCC retains a strong equity base, long term debt maturities and significant cash resources, which leave it very well placed to continue the development of its business in existing and new geographies.
Operating review
DCC Energy 2014 2013 % change Volumes (litres) 5.215bn 4.950bn +5.3% Revenue GBP4,077.0m GBP4,093.4m -0.4% Operating profit GBP31.9m GBP33.5m -4.7%
Operating profit in DCC Energy was 4.7% behind the prior year as the business was impacted by the very mild weather in contrast to the colder than normal weather in the prior year. Organically, operating profit was approximately 15% behind the prior year but this was partially offset by the benefit of the first time contribution from Qstar, which has performed well since acquisition.
The average temperatures in the UK, DCC Energy's largest market, in April, May and September were milder than the 10 year average and significantly milder than the prior year. DCC Energy's other key markets similarly experienced milder weather. This continued the trend of mild weather conditions which the business had also encountered in the second half of the prior year and has significantly impacted on demand for heating products.
DCC Energy sold 5.2 billion litres of product during the period, an increase of 5.3% over the first half of the prior year, driven by acquisitions. Despite the weak demand for heating products, with volumes approximately 14% behind, overall volumes were in line with the prior year on a like for like basis reflecting good organic growth in the non-heating segments of the market.
Good progress was made in DCC's strategy to build a larger presence in transport fuels and particularly in unmanned petrol stations. In May, DCC completed the acquisition of Qstar, the fifth largest retail petrol station network in Sweden. In August, DCC announced that it had reached agreement in principle with Esso Societé Anonyme Francaise to acquire the assets that comprise the Esso Express unmanned retail petrol station network and the Esso motorway concessions in France. These acquisitions will result in DCC Energy's pro-forma transport fuels volume increasing from 50% to 58% of total volumes.
The fuelcard business again achieved strong organic volume growth as it continues to grow its market share in Britain.
The LPG business performed robustly, benefiting from good organic volume growth in commercial volumes, which partially mitigated the adverse impact of the milder weather. The LPG business also benefited from good cost control and the achievement of synergies from the integration of the former BP LPG business in Britain.
On a pro-forma basis, DCC Energy will sell approximately 12.5 billion litres of product per annum across 10 countries and is well positioned to drive further growth in its existing markets and to continue to expand into new geographies.
DCC Technology 2014 2013 % change Revenue GBP1,037.9m GBP959.3m +8.2% Operating profit GBP15.2m GBP14.1m +7.7% Operating margin 1.5% 1.5%
DCC Technology achieved operating profit growth of 7.7%, reflecting good growth across the business.
In the UK & Ireland, the business maintained its position as the leading distributor of IT, mobile and home electronics products into the retail channel including high street, etail and catalogue retail customers. This position is underpinned by its commitment to delivering a range of value adding retail services and a continuous emphasis on product range development. Current areas of focus in this regard include wearable technology, consumer electronics and small domestic appliances. In addition, in retail, the business benefited from growth in the market for gaming consoles and improved demand for PC products, which offset weaker markets in tablets, DVD and audio.
The business in the UK & Ireland also achieved strong growth in its reseller business as it won new customers and gained market share with existing customers. Growth was achieved in the server, security and PC product categories as the business has strengthened its services and technical capability.
During the period, DCC Technology further integrated its UK businesses under the Exertis brand, as part of its strategy to offer an enhanced sales proposition to its entire customer base. In addition, the business has commenced a programme to upgrade its IT and logistics infrastructure to support future growth in a cost effective manner.
In Continental Europe, the business improved its performance in what remains a difficult market. It also benefited from the acquisition of CapTech Distribution AB, the third largest distributor of IT products in Sweden which has been rebranded under the Exertis name. CapTech has an extensive retail and reseller customer base and has a particularly strong share of the audio visual and components product segments with a growing presence in the computing market. It is intended to expand the product and vendor portfolio of the business and to use the acquisition as the foundation for a more broadly based business covering the wider Nordic region. DCC Technology continues to seek opportunities to expand its presence in other geographic markets.
DCC Healthcare
2014 2013* % change* Revenue GBP236.9m GBP189.1m +25.3% Operating profit GBP15.9m GBP11.7m +35.8% Operating margin 6.7% 6.2%
* Adjusted to exclude Virtus Inc which was disposed of in March 2014
DCC Healthcare achieved operating profit growth of 35.8%, benefiting from acquisitions completed in the current and prior year, as well as strong organic profit growth in DCC Health & Beauty Solutions.
DCC Vital, which is focused on the sales, marketing and distribution of pharmaceuticals and medical devices in Britain and Ireland, recorded strong operating profit growth driven by acquisition activity. In May 2014, it acquired Williams Medical ("Williams"), the leading provider of medical supplies and services to GP surgeries in Britain, with a growing business in supplying healthcare providers in the evolving community and domiciliary care sectors. Williams has performed well since acquisition and has expanded DCC Vital's market reach, giving it the most comprehensive sales channel coverage in the British and Irish healthcare markets.
In Britain, DCC Vital recorded good sales growth in own licence generic pharmaceuticals, particularly in the respiratory area, and also in medical devices following the acquisition last year of Leonhard Lang UK, the market leader in electrodes and diathermy consumables. In Ireland, the trading environment remained challenging, particularly for DCC's pharma compounding activity.
DCC Health & Beauty Solutions, which provides outsourced solutions to nutrition and beauty brand owners in Europe, generated very strong operating profit growth. In nutrition, the business benefited from the integration of its Swedish tablet manufacturing operations into its larger facility in Britain. Sales, business development and regulatory personnel have been retained in Sweden and remain focused on driving continued growth in the Nordic region. In beauty, the business benefited from the acquisition of Universal Products Manufacturing ("UPL") in January 2014. The process of combining UPL with DCC Health & Beauty Solutions' existing creams and liquids activities is on track to deliver the targeted commercial benefits and cost savings.
DCC Environmental 2014 2013 % change Revenue GBP73.6m GBP64.9m +13.3% Operating profit GBP7.1m GBP6.3m +11.7% Operating margin 9.6% 9.7%
Operating profit in DCC Environmental increased by 11.7%. DCC Environmental's significant recycling infrastructure in Britain, particularly across the central belt of Scotland and the East Midlands, has positioned the business well to benefit from the improved market conditions, driven by a more favourable economic backdrop and some consolidation within the market. The non-hazardous business benefited from negotiating lower disposal costs for non-recyclable waste, while the Scottish hazardous waste business gained some significant new contracts.
DCC Food & Beverage 2014 2013 % change Revenue GBP89.0m GBP97.1m -8.3% Operating profit GBP3.1m GBP2.3m +33.3% Operating margin 3.5% 2.4%
DCC Food & Beverage achieved operating profit growth of 33.3%, primarily driven by a strong performance in its wine business in Britain and Ireland.
Forward-looking statements
This report contains some forward-looking statements that represent DCC's expectations for its business, based on current expectations about future events, which by their nature involve risks and uncertainties. DCC believes that its expectations and assumptions with respect to these forward-looking statements are reasonable; however because they involve risk and uncertainty, which are in some cases beyond DCC's control, actual results or performance may differ materially from those expressed or implied by such forward-looking statements.
Principal Risks and Uncertainties
The Board of DCC is responsible for the Group's risk management and internal control systems, which are designed to identify, manage and mitigate potential material risks to the achievement of the Group's strategic and business objectives. The Board has approved a Risk Management Policy which sets out delegated responsibilities and procedures for the management of risk across the Group.
The principal risks and uncertainties facing the Group in the short to medium term, as set out on pages 18 and 19 of the 2014 Annual Report (together with the principal mitigation measures), continue to be the principal risks and uncertainties facing the Group for the remaining six months of the financial year.
This is not an exhaustive statement of all relevant risks and uncertainties. Matters which are not currently known to the Board or events which the Board considers to be of low likelihood could emerge and give rise to material consequences. The mitigation measures that are maintained in relation to these risks are designed to provide a reasonable and not an absolute level of protection against the impact of the events in question.
Presentation of results and dial-in facility
There will be a presentation of these results to analysts and investors/fund managers in London at 9.00 am today. The slides for this presentation can be downloaded from DCC's website, www.dcc.ie. A dial-in facility will be available for this meeting:
Ireland: 1800 937 657 UK: 0800 279 4977 International: +44 (0) 20 3427 1900 Passcode: 982 1763
This report and further information on DCC is available at www.dcc.ie
Group Income Statement
Restated Restated Unaudited 6 months ended Unaudited 6 months ended Audited year ended 30 September 2014 30 September 2013 31 March 2014 ----------------------------------------------------------- ------------------------------------------------ -------------------------------------------- Pre exceptionals Exceptionals Pre exceptionals Pre (note 7) Total Exceptionals Total exceptionals Exceptionals Total Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Revenue 6 5,514,356 - 5,514,356 5,409,676 - 5,409,676 11,210,832 - 11,210,832 Cost of sales (5,117,593) - (5,117,593) (5,032,301) - (5,032,301) (10,412,238) - (10,412,238) ------------------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- ------------- Gross profit 396,763 - 396,763 377,375 - 377,375 798,594 - 798,594 Administration expenses (134,169) - (134,169) (131,783) - (131,783) (255,305) - (255,305) Selling and distribution expenses (194,532) - (194,532) (179,209) - (179,209) (353,012) - (353,012) Other operating income 7,738 3,583 11,321 6,349 5,730 12,079 19,833 31,101 50,934 Other operating expenses (2,557) (3,835) (6,392) (3,887) (7,296) (11,183) (2,844) (44,384) (47,228) ------------------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- ------------- Operating profit before amortisation of intangible assets 73,243 (252) 72,991 68,845 (1,566) 67,279 207,266 (13,283) 193,983 Amortisation of intangible assets (13,009) - (13,009) (10,038) - (10,038) (20,416) - (20,416) ------------------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- ------------- Operating profit 6 60,234 (252) 59,982 58,807 (1,566) 57,241 186,850 (13,283) 173,567 Finance costs (29,825) - (29,825) (27,601) (4,336) (31,937) (50,824) (2,128) (52,952) Finance income 16,439 471 16,910 16,695 - 16,695 29,413 - 29,413 Share of equity accounted investments 401 - 401 481 - 481 997 - 997 ------------------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- ------------- Profit before tax 47,249 219 47,468 48,382 (5,902) 42,480 166,436 (15,411) 151,025 Income tax expense 8 (5,173) - (5,173) (7,211) - (7,211) (21,827) (5,255) (27,082) ------------------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- ------------- Profit after tax for the financial period 42,076 219 42,295 41,171 (5,902) 35,269 144,609 (20,666) 123,943 ------------------------------ ------------- ------------ ------------------ -------------- ------------ ------------- -------------- ------------- Profit attributable to: Owners of the Parent 42,310 35,019 121,234 Non-controlling interests (15) 250 2,709 ------------ ------------ ------------- 42,295 35,269 123,943 ------------ ------------ ------------- Earnings per ordinary share Basic 9 50.40p 41.82p 144.70p ------------ ------------ ------------- Diluted 9 50.03p 41.59p 143.90p ------------ ------------ ------------- Adjusted earnings per ordinary share Basic 9 62.53p 58.34p 191.20p ------------ ------------ ------------- Diluted 9 62.07p 58.02p 190.14p ------------ ------------ -------------
Group Statement of Comprehensive Income
Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2014 2013 2014 GBP'000 GBP'000 GBP'000 Profit for the period 42,295 35,269 123,943 Other comprehensive income: Items that may be reclassified subsequently to profit or loss Currency translation: - arising in the period (7,903) (4,019) (7,575) - recycled to the Income Statement on disposal of subsidiary - - 324 Movements relating to cash flow hedges (4,004) (2,766) (3,455) Movement in deferred tax liability on cash flow hedges 20 198 288 ------------ ------------ ----------- (11,887) (6,587) (10,418) ------------ ------------ ----------- Items that will not be reclassified to profit or loss Group defined benefit pension obligations: - actuarial loss (12,129) (1,309) (835) - movement in deferred tax asset 1,443 164 152 ------------ ------------ ----------- (10,686) (1,145) (683) ------------ ------------ ----------- Other comprehensive income for the period, net of tax (22,573) (7,732) (11,101) ------------ ------------ ----------- Total comprehensive income for the period 19,722 27,537 112,842 ------------ ------------ ----------- Attributable to: Owners of the Parent 20,034 27,305 110,189 Non-controlling interests (312) 232 2,653 ------------ ------------ ----------- 19,722 27,537 112,842 ------------ ------------ -----------
Group Balance Sheet
Restated Restated Unaudited Unaudited Audited 30 Sept. 30 Sept. 31 March 2014 2013 2014 Notes GBP'000 GBP'000 GBP'000 ASSETS Non-current assets Property, plant and equipment 483,919 439,368 464,864 Intangible assets 784,608 754,217 742,516 Equity accounted investments 5,305 6,294 6,124 Deferred income tax assets 10,431 9,376 11,251 Derivative financial instruments 95,709 73,548 56,240 1,379,972 1,282,803 1,280,995 ------------ ------------ ----------- Current assets Inventories 399,395 474,477 501,408 Trade and other receivables 938,228 1,033,283 957,821 Derivative financial instruments 5,747 8,846 1,221 Cash and cash equivalents 1,075,909 875,152 962,139 ------------ ------------ ----------- 2,419,279 2,391,758 2,422,589 Assets classified as held for sale 16 57,624 - - 2,476,903 2,391,758 2,422,589 Total assets 3,856,875 3,674,561 3,703,584 ------------ ------------ ----------- EQUITY Capital and reserves attributable to owners of the Parent Share capital 14,688 14,688 14,688 Share premium 83,032 83,032 83,032 Share based payment reserve 11 11,649 10,116 10,630 Cash flow hedge reserve 11 (7,828) (3,245) (3,844) Foreign currency translation reserve 11 42,216 53,016 49,822 Other reserves 11 932 932 932 Retained earnings 776,509 720,347 786,158 ------------ ------------ ----------- 921,198 878,886 941,418 Non-controlling interests 4,525 2,414 4,837 ------------ ------------ ----------- Total equity 925,723 881,300 946,255 ------------ ------------ ----------- LIABILITIES Non-current liabilities Borrowings 1,209,269 796,322 725,831 Derivative financial instruments 16,177 41,236 45,636 Deferred income tax liabilities 26,892 30,136 27,518 Retirement benefit obligations 13 15,053 18,067 16,033 Provisions for liabilities and charges 36,213 17,859 24,157 Deferred and contingent acquisition consideration 40,285 51,149 36,949 Government grants 1,461 1,394 1,323 ------------ ------------ ----------- 1,345,350 956,163 877,447 ------------ ------------ ----------- Current liabilities Trade and other payables 1,287,277 1,456,506 1,489,054 Current income tax liabilities 25,057 23,566 32,244 Borrowings 218,222 321,193 316,726 Derivative financial instruments 7,992 14,918 18,699 Provisions for liabilities and charges 5,335 4,330 6,785 Deferred and contingent acquisition consideration 10,389 16,585 16,374 ------------ ------------ ----------- 1,554,272 1,837,098 1,879,882 Liabilities associated with assets classified as held for sale 16 31,530 - - 1,585,802 1,837,098 1,879,882 Total liabilities 2,931,152 2,793,261 2,757,329 ------------ ------------ ----------- Total equity and liabilities 3,856,875 3,674,561 3,703,584 ------------ ------------ ----------- Net debt included above (including cash attributable to assets held for sale) 12 (272,828) (216,123) (87,292) ------------ ------------ -----------
Group Statement of Changes in Equity
For the six Attributable to owners of the months ended Parent 30 September 2014 ---------------------------------------------------------------------------------- Other Non- Share Share Retained reserves controlling Total capital premium earnings (note Total interests equity 11) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At beginning of period 14,688 83,032 786,158 57,540 941,418 4,837 946,255 Profit for the period - - 42,310 - 42,310 (15) 42,295 Currency translation - - - (7,606) (7,606) (297) (7,903) Group defined benefit pension obligations: - actuarial loss - - (12,129) - (12,129) - (12,129) - movement in deferred tax asset - - 1,443 - 1,443 - 1,443 Movements relating to cash flow hedges - - - (4,004) (4,004) - (4,004) Movement in deferred tax liability on cash flow hedges - - - 20 20 - 20 Total comprehensive income - - 31,624 (11,590) 20,034 (312) 19,722 Re-issue of treasury shares - - 1,717 - 1,717 - 1,717 Share based payment - - - 1,019 ,019 - 1,019 Dividends - - (42,990) - (42,990) - (42,990) At end of period 14,688 83,032 776,509 46,969 921,198 4,525 925,723 --------------- ------------------ --------------- ------------- ------------- ---------------- ------------- For the six Attributable to owners of the months ended Parent 30 September 2013 --------------------------------------------------------------------------------- Other Non- Share Share Retained reserves controlling Total capital premium earnings (note Total interests equity 11) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At beginning of period 14,688 83,032 725,514 66,717 889,951 2,391 892,342 Profit for the period - - 35,019 - 35,019 250 35,269 Currency translation - - - (4,001) (4,001) (18) (4,019) Group defined benefit pension obligations: - actuarial loss - - (1,309) - (1,309) - (1,309) - movement in deferred tax asset - - 164 - 164 - 164 Movements relating to cash flow hedges - - - (2,766) (2,766) - (2,766) Movement in deferred tax liability on cash flow hedges - - - 198 198 - 198 Total comprehensive income - - 33,874 (6,569) 27,305 232 27,537 Re-issue of treasury shares - - 1,179 - 1,179 - 1,179 Share based payment - - - 671 671 - 671 Dividends - - (40,220) - (40,220) (209) (40,429) At end of period 14,688 83,032 720,347 60,819 878,886 2,414 881,300 --------------- ------------------ --------------- ------------- ------------ ---------------- ------------ For the year ended 31 Attributable to owners of the March Parent 2014 ------------------------------------------------------------------------------------ Other Non- Share Share Retained reserves controlling Total capital premium earnings (note Total interests equity 11) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At beginning of period 14,688 83,032 725,514 66,717 889,951 2,391 892,342 Profit for the period - - 121,234 - 121,234 2,709 123,943 Currency translation: - arising in the period - - - (7,519) (7,519) (56) (7,575) - recycled to the Income Statement on disposal of subsidiary - - - 324 324 - 324 Group defined benefit pension obligations: - actuarial loss - - (835) - (835) - (835) - movement in deferred tax asset - - 152 - 152 - 152 Movements relating to cash flow hedges - - - (3,455) (3,455) - (3,455) Movement in deferred tax liability on cash flow hedges - - - 288 288 - 288 Total comprehensive income - - 120,551 (10,362) 110,189 2,653 112,842 Re-issue of treasury shares - - 1,981 - 1,981 - 1,981 Share based payment - - 1,185 1,185 - 1,185 Dividends - - (61,888) - (61,888) (207) (62,095) At end of period 14,688 83,032 786,158 57,540 941,418 4,837 946,255 ----------------- ------------------ --------------- ------------- ------------- ---------------- -------------
Group Cash Flow Statement
Restated Restated Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2014 2013 2014 GBP'000 GBP'000 GBP'000 Cash flows from operating activities Profit for the period 42,295 35,269 123,943 Add back non-operating expenses - tax 5,173 7,211 27,082 - share of equity accounted investments (401) (481) (997) - net operating exceptionals 252 1,566 13,283 - net finance costs 12,915 15,242 23,539 ---------- ---------- ---------- Group operating profit before exceptionals 60,234 58,807 186,850 Share-based payment 1,019 671 1,185 Depreciation 30,222 30,097 55,402 Amortisation of intangible assets 13,009 10,038 20,416 Profit on disposal of property, plant and equipment (643) (432) (1,783) Amortisation of government grants (179) (194) (383) Other (3,342) (782) (1,779) (Increase)/decrease in working capital (82,462) 11,871 86,955 ---------- ---------- ---------- Cash generated from operations before exceptionals 17,858 110,076 346,863 Exceptionals (3,631) (12,625) (21,097) ---------- ---------- ---------- Cash generated from operations 14,227 97,451 325,766 Interest paid (27,513) (24,828) (50,011) Income tax paid (13,066) (16,197) (33,033) ---------- ---------- ---------- Net cash flows from operating activities (26,352) 56,426 242,722 ---------- ---------- ---------- Investing activities Inflows Proceeds from disposal of property, plant and equipment 3,249 1,174 8,579 Government grants received 52 - 100 Dividends received from equity accounted investments 647 - 633 Disposal of subsidiaries - - 11,073 Interest received 14,383 16,462 30,210 18,331 17,636 50,595 ---------- ---------- ---------- Outflows Purchase of property, plant and equipment (39,588) (34,374) (78,557) Acquisition of subsidiaries (97,260) (15,720) (39,876) Deferred and contingent acquisition consideration paid (8,215) (7,046) (10,196) ---------- ---------- ---------- (145,063) (57,140) (128,629) ---------- ---------- ---------- Net cash flows from investing activities (126,732) (39,504) (78,034) ---------- ---------- ---------- Financing activities Inflows Re-issue of treasury shares 1,717 1,179 1,981 Increase in interest-bearing loans and borrowings 448,989 341,705 342,950 Net cash inflow on derivative financial instruments - - 4,554 Increase in finance lease liabilities - - 324 450,706 342,884 349,809 ---------- ---------- ---------- Outflows Repayment of interest-bearing loans and borrowings (124,305) - (60,364) Net cash outflow on derivative (13,869) - - financial instruments Repayment of finance lease liabilities (551) (823) (499) Dividends paid to owners of the Parent (42,990) (40,220) (61,888) Dividends paid to non-controlling interests - (209) (207) ---------- ---------- ---------- (181,715) (41,252) (122,958) ---------- ---------- ---------- Net cash flows from financing activities 268,991 301,632 226,851 ---------- ---------- ---------- Change in cash and cash equivalents 115,907 318,554 391,539 Translation adjustment (26,222) (4,135) (8,355) Cash and cash equivalents at beginning of period 813,561 430,377 430,377 ---------- ---------- ---------- Cash and cash equivalents at end of period 903,246 744,796 813,561 ---------- ---------- ---------- Cash and cash equivalents consists of: Cash and short term bank deposits 1,075,909 875,152 962,139 Overdrafts (174,130) (130,356) (148,578) Cash and short term deposits attributable 1,467 - - to assets held for sale 903,246 744,796 813,561 ---------- ---------- ----------
Notes to the Group Condensed Interim Financial Statements
for the six months ended 30 September 2014
1. Basis of Preparation
The Group Condensed Interim Financial Statements which should be read in conjunction with the annual financial statements for the year ended 31 March 2014 have been prepared in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007, the related Transparency rules of the Irish Financial Services Regulatory Authority and in accordance with International Accounting Standard 34, Interim Financial Reporting (IAS 34) as adopted by the EU.
The preparation of the interim financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of certain assets, liabilities, revenues and expenses together with disclosure of contingent assets and liabilities. Estimates and underlying assumptions are reviewed on an ongoing basis.
These condensed interim financial statements for the six months ended 30 September 2014 and the comparative figures for the six months ended 30 September 2013 are unaudited and have not been reviewed by the Auditors. The summary financial statements for the year ended 31 March 2014 represent a restated (as detailed below), abbreviated version of the Group's full accounts for that year, on which the Auditors issued an unqualified audit report and which have been filed with the Registrar of Companies.
2. Accounting Policies
The accounting policies and methods of computation adopted in the preparation of the Group Condensed Interim Financial Statements are consistent with those applied in the Annual Report for the financial year ended 31 March 2014 and are described in those financial statements on pages 128 to 139.
The following standard was mandatory for the first time for the financial year beginning 1 April 2014:
-- IFRS 11 Joint Arrangements. Under IAS 31 Interests in Joint Ventures, the Group's net interests in its joint arrangements were classified as joint ventures and the Group's share of assets, liabilities, revenue, income and expense were proportionately consolidated. IFRS 11 makes equity accounting mandatory for participants in joint ventures. The change to equity accounting had no impact on the Group's profit after tax but impacted each line item in the Consolidated Income Statement. Similarly, the Consolidated Balance Sheet was impacted on a line by line basis but net assets remained unchanged.
As required by IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, the nature and effect of changes arising as a result of the adoption of IFRS 11 on the Consolidated Income Statement, Consolidated Statement of Cash Flows and Consolidated Balance Sheet are disclosed in note 4. Under the transitional provisions of IFRS 11 the Group is not required to disclose the impact that the adoption of IFRS 11 has had on the current period.
There are a number of other amendments to existing standards that were effective for the Group for the first time from 1 April 2014. None of these had a material impact on the Group.
3. Going Concern
The Directors have a reasonable expectation that the Group and Company have adequate resources to continue in operational existence for the foreseeable future, a period of not less than twelve months from the date of this report. For this reason, the Directors continue to adopt the going concern basis in preparing the condensed interim financial statements.
4. Adoption of New Accounting Standards
As noted under Accounting Policies above, the Group adopted IFRS 11 Joint Arrangements on 1 April 2014. As required by IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, the financial impact of the adoption of this standard is outlined below.
Impact on Group Income Statement
6 months ended 30 Sept. Year ended 31 March 2013 2014 Change Change As in As in reported accounting Restated reported accounting Restated Unaudited policy Unaudited Audited policy Unaudited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Revenue 5,419,907 (10,231) 5,409,676 11,231,666 (20,834) 11,210,832 ------------- ---------------- ------------------ ---------- ---------------- -------------- Operating profit before exceptional items and amortisation of intangible assets 69,355 (510) 68,845 208,403 (1,137) 207,266 Net operating exceptionals (1,566) - (1,566) (13,283) - (13,283) Amortisation of intangible assets (10,038) - (10,038) (20,416) - (20,416) ------------- ---------------- ------------------ ---------- ---------------- -------------- Operating profit 57,751 (510) 57,241 174,704 (1,137) 173,567 Finance costs (net) (15,242) - (15,242) (23,539) - (23,539) Share of equity accounted investments 4 477 481 33 964 997 ------------- ---------------- ------------------ ---------- ---------------- -------------- Profit before tax 42,513 (33) 42,480 151,198 (173) 151,025 Income tax expense (7,244) 33 (7,211) (27,255) 173 (27,082) ------------- ---------------- ------------------ ---------- ---------------- -------------- Profit after tax for the period 35,269 - 35,269 123,943 - 123,943 ------------- ---------------- ------------------ ---------- ---------------- -------------- Earnings per ordinary share Basic 41.82p - 41.82p 144.70p - 144.70p ------------- ---------------- ------------------ ---------- ---------------- -------------- Diluted 41.59p - 41.59p 143.90p - 143.90p ------------- ---------------- ------------------ ---------- ---------------- -------------- Adjusted earnings per ordinary share Basic 58.34p - 58.34p 191.20p - 191.20p ------------- ---------------- ------------------ ---------- ---------------- -------------- Diluted 58.02p - 58.02p 190.14p - 190.14p ------------- ---------------- ------------------ ---------- ---------------- -------------- Impact on Group Balance Sheet As at 30 Sept. 2013 As at 31 March 2014 Change Change As in As in reported accounting Restated reported accounting Restated Unaudited policy Unaudited Audited policy Unaudited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ASSETS Non-current assets 1,282,766 (6,257) 1,276,509 1,280,990 (6,119) 1,274,871 Equity accounted investments 802 5,492 6,294 824 5,300 6,124 Current assets 2,394,827 (3,069) 2,391,758 2,425,785 (3,196) 2,422,589 ------------- ---------------- ------------------ ---------- ---------------- -------------- Total assets 3,678,395 (3,834) 3,674,561 3,707,599 (4,015) 3,703,584 ------------- ---------------- ------------------ ---------- ---------------- -------------- EQUITY Total equity 881,300 - 881,300 946,255 - 946,255 ------------- ---------------- ------------------ ---------- ---------------- -------------- LIABILITIES Non-current liabilities 956,171 (8) 956,163 877,455 (8) 877,447 Current liabilities 1,840,924 (3,826) 1,837,098 1,883,889 (4,007) 1,879,882 ------------- ---------------- ------------------ ---------- ---------------- -------------- Total liabilities 2,797,095 (3,834) 2,793,261 2,761,344 (4,015) 2,757,329 ------------- ---------------- ------------------ ---------- ---------------- -------------- Total equity and liabilities 3,678,395 (3,834) 3,674,561 3,707,599 (4,015) 3,703,584 ------------- ---------------- ------------------ ---------- ---------------- -------------- Net debt included above (215,633) (490) (216,123) (86,287) (1,005) (87,292) ------------- ---------------- ------------------ ---------- ---------------- --------------
Impact on Group Cash Flow Statement
6 months ended 30 Sept. Year ended 31 March 2013 2014 -------------------------------------------- Change Change As in As in reported accounting Restated reported accounting Restated Unaudited policy Unaudited Audited policy Unaudited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Net cash flows from operating activities 56,622 (196) 56,426 244,363 (1,641) 242,722 Net cash flows from investing activities (39,904) 400 (39,504) (79,346) 1,312 (78,034) Net cash flows from financing activities 301,632 - 301,632 226,851 - 226,851 ---------- ---------- ------------------ ---------- ----------- -------------- Change in cash and cash equivalents 318,350 204 318,554 391,868 (329) 391,539 Translation adjustment (4,138) 3 (4,135) (8,376) 21 (8,355) Opening cash and cash equivalents 431,074 (697) 430,377 431,074 (697) 430,377 Closing cash and cash equivalents 745,286 (490) 744,796 814,566 (1,005) 813,561 ---------- ---------- ------------------ ---------- ----------- -------------- 5. Reporting Currency
The Group's financial statements are prepared in sterling, denoted by the symbol GBP. The exchange rates used in translating non-sterling Income Statement and Balance Sheet amounts into sterling were as follows:
Average rate Closing rate ------------------------------------------------------- ------------------------------------------------ -------- 6 months 6 months Year 6 months 6 months Year ended Ended ended ended ended ended 30 Sept. 30 Sept. 31 March 30 Sept. 30 Sept. 31 March 2014 2013 2014 2014 2013 2014 StgGBP1= StgGBP1= StgGBP1= StgGBP1= StgGBP1= StgGBP1= Euro 1.2361 1.1700 1.1847 1.2865 1.1960 1.2074 Danish Krone 9.2234 8.7251 8.8386 9.5756 8.9200 9.0146 Swedish Krona 11.2682 10.0853 10.3362 11.7670 10.3546 10.8045 Norwegian Krone 10.2270 9.0815 9.5103 10.4451 9.7046 9.9674 6. Segmental Reporting
DCC is an international sales, marketing, distribution and business support services group headquartered in Dublin, Ireland. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as Mr. Tommy Breen, Chief Executive and his executive management team. The Group is organised into five operating segments: DCC Energy, DCC Technology, DCC Healthcare, DCC Environmental and DCC Food & Beverage.
DCC Energy markets and sells oil products and services for transport, commercial/industrial, marine, aviation and home heating use in Britain, Ireland and Continental Europe. DCC Energy also owns, operates and supplies unmanned and manned retail service stations in Britain, Ireland and Continental Europe. DCC Energy markets and sells liquefied petroleum gas for similar uses in Britain, Ireland and Continental Europe.
DCC Technology sells, markets and distributes a broad range of consumer and SME focussed technology products in Europe.
DCC Healthcare sells, markets and distributes pharmaceutical and medical devices in British and Irish markets. DCC Healthcare also provides outsourced product development, manufacturing, packaging and other services to health and beauty brand owners in Europe.
DCC Environmental provides a broad range of waste management and recycling services to the industrial, commercial, construction and public sectors in Britain and Ireland.
DCC Food & Beverage markets and sells food and beverages in Ireland and wine in Britain. DCC Food & Beverage is also a provider of frozen food supply chain services in Ireland.
Net finance costs and income tax are managed on a centralised basis and therefore these items are not allocated between operating segments for the purpose of presenting information to the chief operating decision maker and accordingly are not included in the detailed segmental analysis below. The consolidated total assets of the Group as at 30 September 2014 of GBP3.857 billion were not materially different from the equivalent figure at 31 March 2014 and therefore the related segmental disclosure note has been omitted in accordance with IAS 34 Interim Financial Reporting. Intersegment revenue is not material and thus not subject to separate disclosure. An analysis of the Group's performance by segment and geographic location is as follows: (a) By operating segment Unaudited six months ended 30 September 2014 ------------------------------------------------------------------------ DCC DCC DCC DCC DCC Food Energy Technology Healthcare Environmental & Beverage Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Segment revenue 4,076,971 1,037,877 236,922 73,562 89,024 5,514,356 --------- ---------- -------------- ------- ---------------- --------------- Operating profit* 31,934 15,204 15,902 7,058 3,145 73,243 Amortisation of intangible assets (7,450) (1,402) (3,074) (394) (689) (13,009) Net operating exceptionals (note 7) (1,788) (965) 308 (31) 2,224 (252) --------- ---------- -------------- ------- ---------------- --------------- Operating profit 22,696 12,837 13,136 6,633 4,680 59,982 --------- ---------- -------------- ------- ---------------- --------------- Unaudited six months ended 30 September 2013 (restated) -------------------------------------------------------------------------- DCC DCC DCC DCC DCC Food Energy Technology Healthcare Environmental & Beverage Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Segment revenue 4,093,358 959,257 195,088 64,908 97,065 5,409,676 --------- ----------- --------------- ------- ------------------ -------------- Operating profit* 33,502 14,115 12,553 6,316 2,359 68,845 Amortisation of intangible assets (6,823) (990) (1,167) (673) (385) (10,038) Net operating exceptionals (note 7) 455 (689) (1,332) - - (1,566) --------- ----------- --------------- ------- ------------------ -------------- Operating profit 27,134 12,436 10,054 5,643 1,974 57,241 --------- ----------- --------------- ------- ------------------ -------------- Audited year ended 31 March 2014 (restated) --------------------------------------------------------------------------------------- DCC DCC DCC DCC DCC Food Energy Technology Healthcare Environmental & Beverage Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Segment revenue 8,243,645 2,263,973 406,510 130,635 166,069 11,210,832 --------- ---------- --------------- ------- ---------------- ------------- Operating profit* 110,467 48,092 30,392 11,746 6,569 207,266 Amortisation of intangible assets (13,686) (1,974) (2,711) (1,285) (760) (20,416) Net operating exceptionals (note 7) (4,219) (11,371) 3,285 3,743 (4,721) (13,283) --------- ---------- --------------- ------- ---------------- ------------- Operating profit 92,562 34,747 30,966 14,204 1,088 173,567 --------- ---------- --------------- ------- ---------------- -------------
* Operating profit before amortisation of intangible assets and net operating exceptionals
(b) By geography Unaudited six months ended 30 September 2014 ----------------------------------- Republic of Rest of UK Ireland the World Total GBP'000 GBP'000 GBP'000 GBP'000 Segment revenue 4,108,866 394,232 1,011,258 5,514,356 --------------- ------- --------------- ---------------- Operating profit* 57,040 3,700 12,503 73,243 Amortisation of intangible assets (7,784) (1,279) (3,946) (13,009) Net operating exceptionals (note 7) (1,487) 1,885 (650) (252) --------------- ------- --------------- ---------------- Operating profit 47,769 4,306 7,907 59,982 --------------- ------- --------------- ---------------- Unaudited six months ended 30 September 2013 (restated) ------------------------------ Republic of Rest of UK Ireland the World Total GBP'000 GBP'000 GBP'000 GBP'000 Segment revenue 4,069,259 438,015 902,402 5,409,676 ---------------- ------- -------------- ---------------- Operating profit* 56,243 4,122 8,480 68,845 Amortisation of intangible assets (5,674) (1,076) (3,288) (10,038) Net operating exceptionals (note 7) (5,289) 556 3,167 (1,566) ---------------- ------- -------------- ---------------- Operating profit 45,280 3,602 8,359 57,241 ---------------- ------- -------------- ---------------- Audited year ended 31 March 2014 (restated) ------------------------------------------ Republic of Rest of UK Ireland the World Total GBP'000 GBP'000 GBP'000 GBP'000 Segment revenue 8,386,565 889,804 1,934,463 11,210,832 -------------- -------- -------------- ---------------- Operating profit* 158,735 22,062 26,469 207,266 Amortisation of intangible assets (11,721) (2,075) (6,620) (20,416) Net operating exceptionals (note 7) 2,812 (13,963) (2,132) (13,283) -------------- -------- -------------- ---------------- Operating profit 149,826 6,024 17,717 173,567 -------------- -------- -------------- ----------------
* Operating profit before amortisation of intangible assets and net operating exceptionals
7. Exceptional Items Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2014 2013 2014 GBP'000 GBP'000 GBP'000 Restructuring costs (1,353) (4,514) (19,720) Impairment of goodwill - - (13,923) Acquisition and related costs (2,243) (2,182) (5,638) Impairment of property, plant and equipment - - (550) Adjustments to deferred and contingent acquisition consideration 202 4,274 16,165 Net profit on disposal of subsidiaries - - 5,294 Restructuring of Group defined benefit pension schemes 2,424 1,456 1,435 Litigation and other operating exceptional items 718 (600) 3,654 Operating exceptional items (252) (1,566) (13,283) Mark to market gains (included in interest) 471 (4,336) (2,128) Tax on Taiwanese legal claim - - (5,255) Net exceptional items after taxation 219 (5,902) (20,666) Non-controlling interest share of profit on disposal of subsidiary - - (2,055) ---------------- ---------------- --------- Net exceptional items 219 (5,902) (22,721) ---------------- ---------------- ---------
The Group recorded a net exceptional credit of GBP0.219 million during the six months ended 30 September 2014.
The Group incurred an exceptional charge of GBP1.353 million in relation to additional restructuring incurred in both acquired and existing businesses.
Acquisition and related costs include the professional and tax costs (such as stamp duty) relating to the evaluation and completion of acquisition opportunities. During the first half these costs amounted to GBP2.243 million.
Deferred and contingent consideration is measured at fair value at the time of the business combination with any subsequent changes to the liability being recognised in the Income Statement. The net reduction in deferred and contingent consideration payable by the Group amounted to GBP0.202 million in the period.
Restructuring of certain of the Group's pension arrangements during the period gave rise to an exceptional gain of GBP2.424 million.
The Group recorded a net receipt in respect of ongoing litigation matters amounting to GBP0.718 million.
Most of the Group's debt has been raised in the US Private Placement debt market and swapped, using long term interest, currency and cross currency derivatives to floating rate sterling and euro. Under IAS 39, after marking to market swaps designated as fair value hedges and the related fixed rate debt, the level of ineffectiveness is taken to the Income Statement. Normal volatility in capital markets has given rise to a net mark to market gain of GBP0.471 million.
8. Taxation
The taxation expense for the interim period is based on management's best estimate of the weighted average tax rate that is expected to be applicable for the full year. The Group's effective tax rate for the period was 13.0% (six months ended 30 September 2013: 16.0% and year ended 31 March 2014: 14.0%). The decrease in the Group's effective tax rate in the current year is primarily driven by the reduction in the UK corporation tax rate.
9. Earnings per Ordinary Share and Adjusted Earnings per Ordinary Share Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2014 2013 2014 GBP'000 GBP'000 GBP'000 Profit attributable to owners of the Parent 42,310 35,019 121,234 Amortisation of intangible assets after tax 10,401 7,930 16,237 Exceptionals after tax (note 7) (219) 5,902 22,721 ---------- ---------- --------- Adjusted profit after taxation and non-controlling interests 52,492 48,851 160,192 ---------- ---------- --------- Basic earnings per ordinary share pence pence pence Basic earnings per ordinary share 50.40p 41.82p 144.70p ---------- ---------- --------- Adjusted basic earnings per ordinary share 62.53p 58.34p 191.20p ---------- ---------- --------- Weighted average number of ordinary shares in issue (thousands) 83,948 83,742 83,781 ---------- ---------- --------- Diluted earnings per ordinary pence pence pence share Diluted earnings per ordinary share 50.03p 41.59p 143.90p ---------- ---------- --------- Adjusted diluted earnings per ordinary share 62.07p 58.02p 190.14p ---------- ---------- --------- Diluted weighted average number of ordinary shares in issue (thousands) 84,565 84,194 84,250 ---------- ---------- ---------
The adjusted figures for earnings per share are intended to demonstrate the results of the Group after eliminating the impact of amortisation of intangible assets and net exceptionals.
10. Dividends Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2014 2013 2014 GBP'000 GBP'000 GBP'000 Interim - paid 26.12 pence per share on 29 November 2013 - - 22,167 Final - paid 50.73 pence per share on 24 July 2014 (paid 56.20 cent per share on 25 July 2013) 42,990 40,220 39,721 42,990 40,220 61,888 ------------------------- ------------------------- ---------
On 3 November 2014, the Board approved an interim dividend of 28.73 pence per share (GBP24.138 million). These condensed consolidated interim financial statements do not reflect this dividend payable. The 2012/2013 final dividend which was paid during the year ended 31 March 2014 was declared in euro and has been translated to sterling using the average sterling/euro exchange rate for the year ended 31 March 2014.
11. Other Reserves For the six months ended Foreign 30 September 2014 Share based Cash flow currency Total payment hedge translation Other other reserve reserve reserve reserves reserves GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At beginning of period 10,630 (3,844) 49,822 932 57,540 Currency translation - - (7,606) - (7,606) Movements relating to cash flow hedges - (4,004) - - (4,004) Movement in deferred tax liability on cash flow hedges - 20 - - 20 Share based payment 1,019 - - - 1,019 At end of period 11,649 (7,828) 42,216 932 46,969 --------------------- --------- ----------- -------- -------- For the six months ended Foreign 30 September 2013 Share Cash flow currency Total based payment hedge translation Other other reserve reserve reserve reserves reserves GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At beginning of period 9,445 (677) 57,017 932 66,717 Currency translation - - (4,001) - (4,001) Movements relating to cash flow hedges - (2,766) - - (2,766) Movement in deferred tax liability on cash flow hedges - 198 - - 198 Share based payment 671 - - - 671 At end of period 10,116 (3,245) 53,016 932 60,819 --------------------- --------- ----------- -------- -------- For the year ended 31 March Foreign 2014 Share Cash flow currency Total based payment hedge translation Other other reserve reserve reserve reserves reserves GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At beginning of period 9,445 (677) 57,017 932 66,717 Currency translation - arising in the year - - (7,519) - (7,519) - recycled to the Income Statement on disposal of subsidiary - - 324 - 324 Movements relating to cash flow hedges - (3,455) - - (3,455) Movement in deferred tax liability on cash flow hedges - 288 - - 288 Share based payment 1,185 - - - 1,185 At end of period 10,630 (3,844) 49,822 932 57,540 --------------------- --------- ----------- -------- -------- 12. Analysis of Net Debt Restated Restated Unaudited Unaudited Audited 30 Sept. 30 Sept. 31 March 2014 2013 2014 GBP'000 GBP'000 GBP'000 Non-current assets: Derivative financial instruments 95,709 73,548 56,240 ------------ ---------- ----------------- Current assets: Derivative financial instruments 5,747 8,846 1,221 Cash and cash equivalents 1,075,909 875,152 962,139 ------------ ---------- ----------------- 1,081,656 883,998 963,360 ------------ ---------- ----------------- Non-current liabilities: Borrowings (205) (274) (619) Derivative financial instruments (16,177) (41,236) (45,636) Unsecured Notes (1,209,064) (796,048) (725,212) ------------ ---------- ----------------- (1,225,446) (837,558) (771,467) ------------ ---------- ----------------- Current liabilities: Borrowings (174,474) (130,589) (149,079) Derivative financial instruments (7,992) (14,918) (18,699) Unsecured Notes (43,748) (190,604) (167,647) ------------ ---------- ----------------- (226,214) (336,111) (335,425) ------------ ---------- ----------------- Net debt excluding cash attributable to assets held for sale (274,295) (216,123) (87,292) Cash and short term deposits attributable 1,467 - - to assets held for sale ------------ ---------- ----------------- Net debt including cash attributable to assets held for sale (272,828) (216,123) (87,292) ------------ ---------- ----------------- 13. Retirement Benefit Obligations
The Group's defined benefit pension schemes' assets were measured at fair value at 30 September 2014. The defined benefit pension schemes' liabilities at 30 September 2014 have been updated based on market conditions at that date.
The deficit on the Group's retirement benefit obligations increased from GBP16.033 million at 31 March 2014 to GBP21.949 million at 30 September 2014 (including the defined benefit schemes associated with assets held for sale at 30 September 2014). The increase in the deficit was primarily driven by an actuarial loss on liabilities which arose from a reduction in the discount rate used to value these liabilities.
14. Changes in Estimates and Assumptions
The following actuarial assumptions have been made in determining the Group's retirement benefit obligation for the six months ended 30 September 2014:
Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2014 2013 2014 Discount rate - Republic of Ireland 2.50% 3.70% 3.40% - UK 4.00% 4.55% 4.50% ---------- ---------- --------- 15. Business Combinations
A key strategy of the Group is to create and sustain market leadership positions through bolt-on acquisitions in markets it currently operates in together with extending the Group's footprint into new geographic markets. In line with this strategy, the principal acquisitions completed by the Group during the six months ended 30 September 2014 were as follows:
-- the acquisition of 100% of Qstar Försäljning AB, a Swedish unmanned petrol station company, along with its related fuel distribution and fuel card businesses ('Qstar'), completed in May 2014; and
-- the acquisition in June 2014 of 100% of Williams Medical Holdings ('Williams'), a UK based business which supplies medical and pharmaceutical products and related services to general practitioners in Britain; and
-- the acquisition in September 2014 of CapTech Distribution AB, Sweden's largest independent technology distribution business.
The carrying amounts of the assets and liabilities acquired (excluding net cash/debt acquired), determined in accordance with IFRS before completion of the business combinations, together with the fair value adjustments made to those carrying values were as follows:
Unaudited Unaudited Unaudited Unaudited 30 Sept. 30 Sept. 30 Sept. 30 Sept. 2014 2014 2014 2014 GBP'000 GBP'000 GBP'000 GBP'000 Williams Qstar Others Total Assets Non-current assets Property, plant and equipment 2,598 27,101 537 30,236 Intangible assets - other intangible assets 11,827 6,983 2,766 21,576 Deferred income tax assets 30 37 - 67 ---------- ---------- ---------- ---------- Total non-current assets 14,455 34,121 3,303 51,879 ---------- ---------- ---------- ---------- Current assets Inventories 2,536 5,811 12,344 20,691 Trade and other receivables 6,817 28,596 14,537 49,950 ---------- ---------- ---------- ---------- Total current assets 9,353 34,407 26,881 70,641 ---------- ---------- ---------- ---------- Liabilities Non-current liabilities Deferred income tax liabilities (2,365) (1,536) (284) (4,185) Provisions for liabilities and charges - (15,112) - (15,112) Government grants (281) - - (281) ---------- ---------- ---------- ---------- Total non-current liabilities (2,646) (16,648) (284) (19,578) ---------- ---------- ---------- ---------- Current liabilities Trade and other payables (8,307) (36,801) (12,651) (57,759) Current income tax liabilities (65) - 60 (5) ---------- ---------- ---------- ---------- Total current liabilities (8,372) (36,801) (12,591) (57,764) ---------- ---------- ---------- ---------- Identifiable net assets acquired 12,790 15,079 17,309 45,178 Intangible assets - goodwill 31,628 24,597 376 56,601 ---------- ---------- ---------- ---------- Total consideration (enterprise value) 44,418 39,676 17,685 101,779 ---------- ---------- ---------- ---------- Satisfied by: Cash 47,928 37,325 4,383 89,636 Net (cash)/debt acquired (3,510) - 9,322 5,812 ---------- ---------- ---------- ---------- Net cash outflow 44,418 37,325 13,705 95,448 Deferred and contingent acquisition consideration - 2,351 3,980 6,331 ---------- ---------- ---------- ---------- Total consideration 44,418 39,676 17,685 101,779 ---------- ---------- ---------- ----------
The acquisitions of Williams and Qstar have been deemed to be substantial transactions and separate disclosure of the fair values of the identifiable assets and liabilities has therefore been made. None of the remaining business combinations completed during the period were considered sufficiently material to warrant separate disclosure of the fair values attributable to those combinations. The carrying amounts of the assets and liabilities acquired, determined in accordance with IFRS, before completion of the combination together with the adjustments made to those carrying values disclosed above were as follows:
Book Fair value Fair value adjustments value Williams GBP'000 GBP'000 GBP'000 Non-current assets (excluding goodwill) 2,628 11,827 14,455 Current assets 9,353 - 9,353 Non-current liabilities and non-controlling interests (281) (2,365) (2,646) Current liabilities (8,372) - (8,372) -------- ------------- -------- Identifiable net assets acquired 3,328 9,462 12,790 Goodwill arising on acquisition 41,090 (9,462) 31,628 -------- ------------- -------- Total consideration (enterprise value) 44,418 - 44,418 -------- ------------- -------- Book Fair value Fair value adjustments value Qstar GBP'000 GBP'000 GBP'000 Non-current assets (excluding goodwill) 27,138 6,983 34,121 Current assets 34,407 - 34,407 Non-current liabilities and non-controlling interests (15,112) (1,536) (16,648) Current liabilities (36,801) - (36,801) --------- ------------- --------- Identifiable net assets acquired 9,632 5,447 15,079 Goodwill arising on acquisition 30,044 (5,447) 24,597 --------- ------------- --------- Total consideration (enterprise value) 39,676 - 39,676 --------- ------------- --------- Book Fair value Fair value adjustments value Other acquisitions GBP'000 GBP'000 GBP'000 Non-current assets (excluding goodwill) 537 2,766 3,303 Current assets 26,881 - 26,881 Non-current liabilities and non-controlling interests (284) - (284) Current liabilities (12,591) - (12,591) --------- ------------- --------- Identifiable net assets acquired 14,543 2,766 17,309 Goodwill arising on acquisition 3,142 (2,766) 376 --------- ------------- --------- Total consideration (enterprise value) 17,685 - 17,685 --------- ------------- --------- Book Fair value Fair value adjustments value Total GBP'000 GBP'000 GBP'000 Non-current assets (excluding goodwill) 30,303 21,576 51,879 Current assets 70,641 - 70,641 Non-current liabilities and non-controlling interests (15,677) (3,901) (19,578) Current liabilities (57,764) - (57,764) --------- ------------- --------- Identifiable net assets acquired 27,503 17,675 45,178 Goodwill arising on acquisition 74,276 (17,675) 56,601 --------- ------------- --------- Total consideration (enterprise value) 101,779 - 101,779 --------- ------------- ---------
The initial assignment of fair values to identifiable net assets acquired has been performed on a provisional basis in respect of a number of the business combinations above given the timing of closure of these acquisitions, with any amendments to these fair values to be finalised within a twelve month timeframe from the dates of acquisition. There were no adjustments processed during the six months ended 30 September 2014 to the fair value of business combinations completed during the preceding twelve months.
The principal factors contributing to the recognition of goodwill on business combinations entered into by the Group are the expected profitability of the acquired business and the realisation of cost savings and synergies with existing Group entities.
GBP0.671 million of the goodwill recognised in respect of acquisitions completed during the period is expected to be deductible for tax purposes.
Acquisition and related costs included in the Group Income Statement amounted to GBP2.243 million.
No contingent liabilities were recognised on the acquisitions completed during the period or in prior financial years.
The gross contractual value of trade and other receivables as at the respective dates of acquisition amounted to GBP50.092 million. The fair value of these receivables was GBP49.950 million (all of which is expected to be recoverable) and is inclusive of an aggregate allowance for impairment of GBP0.142 million.
The fair value of contingent consideration recognised at the date of acquisition is calculated by discounting the expected future payment to present value at the acquisition date. In general, for contingent consideration to become payable, pre-defined profit thresholds must be exceeded. On an undiscounted basis, the future payments for which the Group may be liable for acquisitions in the current period range from GBP2.840 million to GBP14.350 million.
The acquisitions during the period contributed GBP253.739 million to revenues and GBP8.343 million to operating profit before amortisation of intangible assets and net operating exceptionals. Had all the business combinations effected during the period occurred at the beginning of the period, total Group revenue for the six months ended 30 September 2014 would be GBP5,555.789 million and total Group operating profit before amortisation of intangible assets and net operating exceptionals would be GBP73.589 million.
16. Assets Classified as Held for Sale
On 30 September 2014 the Group announced that it had reached agreement to dispose of Robert Roberts and Kelkin ('the businesses') to Valeo Foods. The disposal is conditional on clearance from the Competition and Consumer Protection Commission in Ireland. The total consideration for the businesses is expected to be approximately EUR60 million (GBP47 million) less debt and debt like items, payable in cash on completion.
As at 30 September 2014, the businesses were classified as a disposal group held for sale. The fair value less costs to sell of the major classes of assets and liabilities held for sale as at 30 September 2014 were as follows:
30 Sept. 2014 GBP'000 Assets Property, plant and equipment 6,299 Intangible assets 8,844 Equity accounted investments 212 Deferred income tax assets 882 Inventories 17,017 Trade and other receivables 22,903 Cash and cash equivalents 1,467 -------------------- Assets classified as held for sale 57,624 Liabilities Deferred income tax liabilities (235) Retirement benefit obligations (6,896) Deferred and contingent acquisition consideration (78) Trade and other payables (23,629) Current income tax liabilities (692) Liabilities associated with assets classified as held for sale (31,530) -------------------- Net assets of the disposal group 26,094 -------------------- 17. Seasonality of Operations
The Group's operations are significantly second-half weighted primarily due to the demand for a significant proportion of DCC Energy's products being weather dependent and seasonal buying patterns in DCC Technology.
18. Goodwill
Goodwill is subject to impairment testing on an annual basis and more frequently if an indicator of impairment is considered to exist. There were no other indicators of impairment during the six months ended 30 September 2014. The Board is satisfied that the carrying value of goodwill at 30 September 2014 has not been impaired.
19. Related Party Transactions
There have been no related party transactions or changes in related party transactions other than those described in the Annual Report in respect of the year ended 31 March 2014 that could have a material impact on the financial position or performance of the Group in the six months ended 30 September 2014.
20. Events After the Balance Sheet Date
In October 2014, DCC agreed to dispose of Allied Logistics to Musgrave, a major food retailer and distributor in Ireland. The disposal is conditional, inter alia, on clearance from the Competition and Consumer Protection Commission in Ireland.
21. Distribution of Interim Report
This report and further information on DCC is available at the Company's website www.dcc.ie. A printed copy is available to the public at the Company's registered office at DCC House, Leopardstown Road, Foxrock, Dublin 18, Ireland.
Statement of Directors' Responsibilities
We confirm that to the best of our knowledge:
1. the condensed set of interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;
2. the interim management report includes a fair review of the information required by:
Regulation 8(2) of the Transparency (Directive 2004/109/EC) Regulations 2007, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
Regulation 8(3) of the Transparency (Directive 2004/109/EC) Regulations 2007, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.
On behalf of the Board
John Moloney Tommy Breen Chairman Chief Executive
3 November 2014
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UOUKRSSAARAA
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