REG - DCC PLC - Results for the year ended 31 March 2015 <Origin Href="QuoteRef">DCC.L</Origin> - Part 1

DCCAnnouncement

15/07/2015 18:14

RNS Number : 5716N
DCC PLC
19 May 2015
19 May 2015
Results for the year ended 31 March 2015
DCC, the international sales, marketing, distribution and business support services group, today announced its results for the year ended 31 March 2015.
RESULTS HIGHLIGHTS


 Restated1


 2015
 'm
 2014
 'm
% change
Revenue - continuing2
 10,606
 11,045
-4.0%
Revenue - continuing2(excl. DCC Energy)
 2,982
 2,801
+6.5%
Operating profit3 - continuing2
 221.7
 200.7
+10.5%
Total operating profit3
 228.2
 207.3
+10.1%
Profit before net exceptional items, amortisation of intangible assets and tax
 199.6
 186.9
+6.8%
Adjusted earnings per share3 - continuing2
 202.2 pence
 184.1 pence
+9.8%
Total adjusted earnings per share3
 209.2 pence
 191.2 pence
+9.4%
Dividend per share
84.54 pence
76.85 pence
 +10.0%
Free cash flow4
 314.5
 277.0

Net cash/(debt) at 31 March
 30.0
 (87.3)

Return on capital employed
 18.9%
 16.3%





1 All comparative numbers presented in this statement have been restated to reflect the impact of new 
accounting rules for joint ventures
2 Excludes DCC Food & Beverage, the activities of which have now been disposed of
3 Excluding net exceptionals and amortisation of intangible assets
4After net capital expenditure and before exceptional items, interest and tax payments
Volumes in DCC Energy increased by 5.7% over the prior year and on an organic basis were 1.2% ahead of the prior year. Due to the impact of lower oil prices DCC Energy's revenue declined by 7.5% (5.6% on a constant currency basis).
 Revenue from continuing activities, excluding DCC Energy, increased by 6.5% (8.4% on a constant currency basis), approximately one quarter of which was organic. Due to the lower oil price, overall Group revenue from continuing activities decreased by 4.0% (2.1% on a constant currency basis).
 Operating profit from continuing activities increased by 10.5% (11.9% on a constant currency basis) to 222 million, with profit growth achieved in each of DCC's four divisions.
 Total adjusted earnings per share up 9.4% to 209.2 pence.
 Proposed 10% increase in the final dividend to give a total full year dividend of 84.54 pence per share, an increase of 10% over the prior year. 
 Strong cash generation: 
o Operating cash flow of 378 million (347 million in the prior year); and
o Free cash flow of 315 million (277 million in the prior year), a 138% conversion of operating profit into cash.
 Increase in return on capital employed to 18.9% reflecting improvements in all four divisions, driven by profit growth and excellent working capital management.
 Record development activity, with committed acquisition expenditure of 554 million, including the commitment to acquire Butagaz which was announced separately today.
 The profitable disposal of DCC's Food & Beverage division brings increased strategic focus to the Group.
 The strong cash flow performance during the year resulted in the Group moving to a modest net cash position of 30 million at year end. The modest net cash position is before development expenditure committed during the year and since the balance sheet date of 465 million, which it is anticipated will be paid in the year to 31 March 2016. 
 DCC's capacity to continue the development of its business is expected to be enhanced by the intention to issue up to 4.2 million new Ordinary Shares by way of a share placing (representing up to 5% of the existing issued share capital of the Group, excluding Treasury Shares), which was announced separately today. 
 DCC anticipates very significant profit growth in the year to 31 March 2016.

Commenting on the results, Tommy Breen, Chief Executive, said:
"The year to 31 March 2015 has been an outstanding year for the Group with:
operating profit growth in each of DCC's four divisions, resulting in Group operating profit from continuing activities 10.5% ahead of the prior year at 222 million;
excellent operating profit to free cash flow conversion of 138%;
improvements in return on capital employed in all divisions, resulting in a Group return on capital employed of 18.9%;
a proposed 10% increase in the dividend, the 21st consecutive year of dividend growth;
a record level of acquisition activity, resulting in expenditure now committed of 554 million; and 
the profitable disposal of the Group's Food & Beverage division. 
DCC remains ambitious to continue the growth and development of its business. The Group's strategy has always included maintaining a strong and liquid balance sheet to leave it well placed to take advantage of opportunities as they arise. To that end and cognisant that the Group is already committed to development expenditure totalling 465 million, the Board has today separately announced a placing of new Ordinary Shares representing up to 5% of the existing issued share capital of the Group (excluding Treasury Shares). The funds raised from this placing will ensure the Group retains financial capacity for further development while preserving the balance sheet strength that has served it well over many years.
The outlook for the year to 31 March 2016 is based on the important assumptions that: 
 the acquisitions of Esso Retail France and Butagaz will complete by the end of June 2015 and in the final calendar quarter of 2015 respectively; and
 there will be normal winter weather conditions.
At this very early stage, the Group anticipates that both operating profit and adjusted earnings per share from continuing activities will be very significantly ahead of the prior year." 
For reference, please contact: 
Tommy Breen, Chief Executive  Tel:+353 1 2799 400
Fergal O'Dwyer, Chief Financial OfficerEmail:investorrelations@dcc.ie
Kevin Lucey, Head of Group Finance & Investor Relations Web: www.dcc.ie
Results 
A summary of the Group's results for the year ended 31 March 2015 is as follows:


 Restated1


 2015
 'm
 2014
 'm
% change




Revenue - continuing2
 10,606
 11,045
-4.0%
Operating profit3



DCC Energy
 119.4
 110.5
+8.1%
DCC Technology
 49.3
 48.1
+2.6%
DCC Healthcare
 39.7
 30.4
+30.6%
DCC Environmental
 13.3
 11.7
+13.2%
Operating profit3 - continuing2
 221.7
 200.7
 +10.5%
Operating profit3 - discontinued operations 
 6.5
 6.6

Group operating profit3
 228.2
 207.3
+10.1%
Share of equity accounted investments
 0.5
 1.0

Finance costs (net)
 (29.1)
 (21.4)

Profit before net exceptionals, amortisation of intangible assets and tax
 199.6
 186.9
+6.8%
Net exceptional charge 
 (10.9)
 (15.4)

Amortisation of intangible assets
 (25.4)
 (20.5)

Profit before tax
 163.3
 151.0
+8.1%
Taxation
 (18.9)
 (27.1)

Profit after tax
 144.4
 123.9
+16.5%
Non-controlling interests
 -
 (2.7)

Attributable profit
 144.4
 121.2
+19.1%
Adjusted earnings per share3 - continuing2
 202.2pence
 184.1 pence
+9.8%
Total adjusted earnings per share3
 209.2pence
 191.2 pence
+9.4%
Dividend per share 
 84.54pence
 76.85pence
+10.0%
Operating cash flow
 377.8
 346.9

Free cash flow4
 314.5
 277.0

Net cash/(debt) at 31 March
 30.0
 (87.3)

Total equity at 31 March
 987.0
 946.3

Return on capital employed 
 18.9%
 16.3%

1 All comparative numbers presented in this statement have been restated to reflect the impact of new 
accounting rules for joint ventures
2 Excludes DCC Food & Beverage, the activities of which have now been disposed of
3 Excluding net exceptionals and amortisation of intangible assets
4 After net capital expenditure and before exceptional items, interest and tax payments
Overview of results
Revenue
Volumes in DCC Energy increased by 5.7% over the prior year and on an organic basis were 1.2% ahead of the prior year. Average temperatures in Britain, DCC Energy's largest market, were in line with the prior year although warmer than the ten year average. Due to the impact of lower oil prices, DCC Energy's revenue declined by 7.5% (5.6% on a constant currency basis). 
Revenue from continuing activities, excluding DCC Energy, was up 6.5% (8.4% on a constant currency basis). Approximately one quarter of this growth was organic and was driven by the growth in DCC Technology's Continental European and Supply Chain activities and good organic growth in DCC Healthcare. 
Overall Group revenue from continuing activities decreased by 4.0% (2.1% on a constant currency basis) to 10.6 billion, reflecting the impact of lower oil prices. 
Operating profit
Group operating profit from continuing activities increased by 10.5% to 221.7 million. This growth was impacted by the movement in the rate used for translating the Group's non-sterling denominated profits into sterling. The average euro/sterling translation rate for the year ended 31 March 2015 of 0.7890 was 6.5% weaker than the average of 0.8441 in the prior year. Operating profit growth on a constant currency basis was 11.9% and approximately one third of this growth was organic. 
Operating profit in DCC Energy, the Group's largest division, was 8.1% ahead of the prior year (10.3% ahead on a constant currency basis). Approximately one third of this growth was organic and the balance from a first time contribution from Qstar, the Swedish unmanned retail business which was acquired in May 2014. 
Operating profit in DCC Technology, the Group's second largest division, was modestly ahead of the prior year (3.7% ahead on a constant currency basis) with growth from the UK & Ireland reseller customer channel, the Supply Chain business and a strong performance from the Continental European business, including a first time contribution from CapTech (acquired in September 2014). This growth was largely offset by the impact of a weaker market in the UK for tablet and smartphone products, following a particularly strong performance in DCC Technology's UK business in the prior year. 
Operating profit in DCC Healthcare was 30.6% ahead of the prior year (40.4% excluding Virtus Inc., which was disposed of in March 2014), benefitting from first time contributions from Williams Medical, acquired in May 2014, and UPL, acquired in January 2014, and also from a very strong organic performance in DCC Health & Beauty Solutions. 
Operating profit in DCC Environmental was 13.2% ahead of the prior year as the recovery in the business continued in Britain and Ireland.


An analysis of the divisional performance in each half of the year, for the Group's continuing activities, is set out below:

2014/15**

2013/14**

% change
Operating profit*
H1
H2
FY

H1
H2
FY

H1
H2
FY

'm
'm
'm

'm
'm
'm




DCC Energy
31.9
87.5
119.4

33.5
77.0
110.5

-4.7%
+13.6%
+8.1%
DCC Technology
15.2
34.1
49.3

14.1
34.0
48.1

+7.7%
+0.5%
+2.6%
DCC Healthcare
15.9
23.8
39.7

12.6
17.8
30.4

+26.7%
+33.3%
+30.6%
DCC Environmental
7.1
6.2
13.3

6.3
5.4
11.7

+11.7%
+14.8%
+13.2%
Group
70.1
151.6
221.7

66.5
134.2
200.7

+5.4%
+13.0%
+10.5%












Adjusted EPS* (pence)
59.3
142.9
202.2

55.8
128.3
184.1

+6.2%
+11.4%
+9.8%
* Excluding net exceptionals and amortisation of intangible assets
** Excludes DCC Food & Beverage, the activities of which have now been disposed of




Change in accounting policy and restatement 
IFRS 11 Joint Arrangements has been adopted as required by IFRS for the year ended 31 March 2015. Whilst the impact on the comparatives is not material, they have been restated accordingly. Further details are set out in note 3.
Finance costs (net)
Net finance costs increased to 29.1 million (2014: 21.4 million) primarily as a result of the incremental interest cost of the additional US Private Placement debt drawn down in the first half of the year. Average net debt during the year of 309 million compared to 366 million in the prior year. Interest was covered 9.9 times by Group operating profit before depreciation and amortisation of intangible assets (12.3 times in 2014). 
Profit before net exceptional items, amortisation of intangible assets and tax
Profit before net exceptional items, amortisation of intangible assets and tax increased by 6.8% to 199.6 million. 
Net exceptional charge and amortisation of intangible assets 
The Group incurred a net exceptional charge before tax and non-controlling interests of 10.9 million as follows:

 'm
Restructuring costs
23.9
Acquisition related costs
3.5
Mark to market loss 
2.2
Net gain on disposals 
(8.2)
Gain arising on pension curtailments
(8.7)
Other (net)
(1.8)


Net exceptional charge
10.9
The Group incurred an exceptional charge of 23.9 million mainly in relation to restructuring of existing businesses and is inclusive of a goodwill impairment charge of 5.6 million.
Acquisition costs include the professional and tax costs (such as stamp duty) relating to the evaluation and completion of acquisition opportunities. During the year, acquisition related costs amounted to 3.5 million.
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 year ended 31 March 2015 this amounted to an exceptional charge of 2.2 million.
During the second half of the financial year the Group disposed of its Irish Food & Beverage subsidiaries. The aggregate consideration from these disposals was 55.1 million and the disposals generated an exceptional gain, net of disposal costs, of 8.2 million. The remaining small UK wine distribution subsidiary was classified as an asset held for sale at the balance sheet date. The sale of this subsidiary was completed on 28 April 2015. 
The restructuring of certain of the Group's pension arrangements gave rise to an exceptional gain of 8.7 million. 
The balance of the exceptional items relates to a gain arising from the write back of contingent acquisition consideration no longer payable (1.1 million) and a gain in relation to the Pihsiang legal claim (0.9 million), where there was further modest cash recovery.
The charge for the amortisation of acquisition related intangible assets increased to 25.4 million from 20.5 million, principally reflecting acquisitions completed in the current and prior year.
Profit before tax
Profit before tax increased by 8.1% to 163.3 million.
Taxation
The effective tax rate for the Group decreased to 12% compared to 14% in the prior year. The decrease is primarily due to the mix of taxable Group profits and a reduction in the UK corporation tax rate. 
Adjusted earnings per share 
Total adjusted earnings per share increased by 9.4% to 209.2 pence. On a continuing basis, adjusted earnings per share increased by 9.8% to 202.2 pence.
Dividend
The Board is recommending an increase of 10% in the final dividend to 55.81 pence per share, which, when added to the interim dividend of 28.73 pence per share, gives a total dividend for the year of 84.54 pence per share. This represents a 10% increase over the total prior year dividend of 76.85 pence per share. The dividend is covered 2.5 times by adjusted earnings per share (2.5 times in 2014). It is proposed to pay the final dividend on 23 July 2015 to shareholders on the register at the close of business on 29 May 2015. 
Over its 21 years as a listed company, DCC has an unbroken record of dividend growth at a compound annual rate of 14.6%.
Cash flow 
The Group generated excellent operating and free cash flow during the year as set out below:




Restated
Year ended 31 March 

2015
 'm

2014
'm





Operating profit
228.2
207.3
Decrease in working capital
102.6
87.0
Depreciation and other
 47.0
 52.6
Operating cash flow
377.8
346.9
Capital expenditure (net)
(63.3)
(69.9)
Free cash flow 
314.5
277.0
Dividend from equity accounted investments 
0.8
0.6
Interest and tax paid
(60.8)
(52.8)
Free cash flow after interest and tax
254.5
224.8
Acquisitions
(123.5)
(50.1)
Disposals
55.1
11.1
Dividends
(66.1)
(62.1)
Exceptional items (net)
(16.5)
(21.1)
Share issues 
1.7
2.0
Net inflow
105.2
104.6
Opening net debt
(87.3)
(186.6)
Translation and other
 12.1
 (5.3)
Closing net cash/(debt)
30.0
(87.3)
Operating cash flow in 2015 was 377.8 million compared to 346.9 million in the prior year. Working capital reduced by 102.6 million with overall working capital days improving by 4.3 days to a negative 4.9 days sales. Working capital improvements were achieved across each of the Group's divisions with overall Group inventory days reducing from 16.4 days to 11.7 days. DCC Technology selectively uses supply chain financing solutions to sell, on a non-recourse basis, a portion of its receivables relating to certain larger supply chain / sales and marketing activities. The level of supply chain financing at 31 March 2015 was 148.1 million (31 March 2014: 122.6 million) and this had a positive impact on Group working capital days of 5.4 days (31 March 2014: 4.0 days).
After capital expenditure of 63.3 million (2014: 69.9 million), free cash flow amounted to 314.5 million, an excellent 138% conversion of operating profit into cash. 


Return on capital employed
The creation of shareholder value through the delivery of consistent, long-term returns well in excess of its cost of capital is one of DCC's core strategic aims. Return on capital employed increased from 16.3% to 18.9% driven by the increase in the Group's operating profit and strong working capital management. The return on capital employed by division was as follows:

2015
2014
DCC Energy
19.8%
17.5%
DCC Technology
25.5%
21.1%
DCC Healthcare
16.6%
14.2%
DCC Environmental
9.7%
8.6%
Group
18.9%
16.3%
Acquisitions and capital expenditure
Including the commitment to acquire Butagaz, which was announced today, committed acquisition and capital expenditure amounted to 617.4 million as follows:

 Acquisitions
Capex
 Total

 'm
 'm
 'm
DCC Energy
457.7
40.7
498.4
DCC Technology
39.7
8.0
47.7
DCC Healthcare
54.3
5.8
60.1
DCC Environmental
-
8.2
8.2
DCC Food & Beverage
2.4
0.6
3.0




Total
554.1
63.3
617.4
Acquisition activity
Committed acquisition expenditure amounted to 554.1 million. 
DCC Energy
Butagaz 
DCC has separately announced today that DCC Energy has made a binding offer to acquire Butagaz S.A.S. ("Butagaz"), a leading liquefied petroleum gas ("LPG") business in France, from Shell for 464 million (338 million). Shell has granted exclusivity while it consults with its French Works Councils as required under French law. The acquisition of Butagaz would represent the largest ever acquisition by DCC and a major step forward in the continuing expansion of its LPG business. The French LPG market is the second largest in Western Europe and approximately twice the size of the market in Britain. The acquisition of Butagaz would provide DCC Energy with a substantial presence in the French LPG market, an experienced management team and a high quality sales, marketing and operating infrastructure. 
Key transaction features: 
 Butagaz has a market share of 25% and the "Butagaz" brand is the leading LPG brand in France. 
 Butagaz is market leader in the LPG cylinder and small bulk market segments and sells directly or indirectly to over four million customers.
 The acquisition would significantly increase the scale of DCC's LPG business from approximately 700,000 tonnes to 1.2 million tonnes.
 Agreed valuation, on a debt-free, cash-free basis of 464 million (338 million).
 Underlying EBITDA of 123.6 million (89.9 million) and EBIT of 74.2 million (53.9 million) with excellent cash conversion.
 Underlying EBITDA and EBIT multiples of 3.8 and 6.2 respectively.
 Significantly EPS accretive, with return on capital employed expected to be substantially above DCC's cost of capital. 
Esso Retail France
As previously announced on 28 August 2014, DCC reached agreement in principle with Esso Socit Anonyme Franaise ("Esso SAF") to acquire the assets that comprise the Esso Express unmanned retail petrol station network and the Esso branded motorway concessions in France. The business to be acquired will have annual volumes of approximately 1.9 billion litres. All of the relevant competition and legal clearances have now been received and the transaction is expected to complete by the end of June 2015, once implementation of the IT and operational infrastructure required to affect the business transfer is completed.
The total consideration, inclusive of stock in tank at the date of acquisition, will be in the region of 130 million (95 million), payable in cash on completion.
DLG Denmark
In March 2015 DCC Energy agreed in principle to combine its Danish oil distribution business with the oil and wood pellet distribution activities of DLG, a leading Danish agricultural business. The transaction is subject to competition clearance and will result in DCC Energy owning 60% of the enlarged entity which will distribute approximately 400 million litres of oil and 180,000 tonnes of wood pellets and will be managed by DCC Energy's existing management team. The cash impact of the transaction will be very modest. 
DCC Technology 
CapTech
In September 2014 DCC Technology expanded its European footprint with the acquisition of CapTech Distribution AB, Sweden's largest independent technology distribution business, for an initial enterprise value of 15.7 million. With annual revenue of approximately 140 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.
Computers Unlimited
In May 2015 DCC Technology acquired Computers Unlimited ("CU") for an initial enterprise value of 24.0 million. CU is a consumer technology distributor operating primarily in the UK but also with operations in France and Spain. The business has annual revenue of approximately 140 million and is focused on the 'Connected Home' and professional design market. The business distributes a range of products that are complementary to those distributed by Exertis, including design software, printers, accessories and premium audio systems.
DCC Healthcare
Williams Medical
As previously announced on 3 June 2014, DCC Healthcare acquired Williams Medical, the market leader in the supply of medical and pharmaceutical products and related services to general practitioners ("GPs") in Britain. The consideration (which was paid in cash at completion) was based on an enterprise value of 45 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 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.
Beacon
In November 2014, DCC Healthcare acquired Beacon Pharmaceuticals Limited in a transaction based on an enterprise value of up to 10 million. Beacon is a niche pharma business which markets and sells its own licensed and third party pharma products primarily to the hospital sector in the UK. 
Total cash spend on acquisitions for the year ended 31 March 2015
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 38.7 million. The consideration for the Esso Retail France, Butagaz, DLG Denmark and CU transactions will not be paid until these transactions complete in the year to 31 March 2016. Accordingly, the cash outflow on acquisitions in the year ended 31 March 2015, inclusive of a net movement in contingent acquisition consideration of 7.8 million, was 123.5 million. 
Capital expenditure
Net capital expenditure in the year of 63.3 million (2014: 69.9 million) compares to a depreciation charge of 59.7 million (2014: 55.4 million). 
In its interim results announcement, the Group outlined the progress made by DCC Technology in integrating its UKbusinesses under the Exertis brand as part of its strategy to offer an enhanced sales proposition to its entire customer base. It also announced the commencement of a program to upgrade its ERP and logistics infrastructure to support future growth in a cost effective manner. SAP has now been selected as the preferred ERP platform and the implementation of this system will take place on a phased basis over the next two years. In addition, DCC Technology is developing a new, purpose built, 450,000 sq.ft. UK national distribution centre close to the majority of its existing facilities, which will consolidate the activities of most of its seven existing warehouse facilities and provide capacity for further growth. The relocation to the new facility will be conducted on a staged basis and will begin in the year ending 31 March 2017. The capital expenditure relating to these developments is of the order of 55 million, most of which will fall in the year ending 31 March 2016. Following the completion of these projects, apart from the capacity increases and cost efficiencies that should be generated, a significant proportion of this expenditure is expected to be recouped from the disposal of the existing facilities owned by DCC Technology and from improvements in working capital.
Financial Strength
DCC's balance sheet remains highly liquid with the Group moving to a modest net cash position of 30 million at 31 March 2015 (average net debt during the year of 309 million). The modest net cash position is before development expenditure committed during the year and since the balance sheet date of 465 million which it is anticipated will be paid in the year ending 31 March 2016. The modest year end net cash position is net of term debt of 1.1 billion with an average maturity of seven yearsand an average credit spread over euribor/libor of 1.65%. 
DCC remains ambitious to continue the growth and development of its business. The Group's strategy has always included maintaining a strong and liquid balance sheet to leave it well placed to take advantage of opportunities as they arise. To that end and cognisant that the Group is already committed to development expenditure totalling 465 million, the Board has today separately announced a placing of new Ordinary Shares representing up to 5% of the existing issued share capital of the Group (excluding Treasury Shares). The funds raised from this placing will ensure the Group retains financial capacity for further development while preserving the balance sheet strength that has served it well over many years.
Outlook
The outlook for the year to 31 March 2016 is based on the important assumptions that: 
 the acquisitions of Esso Retail France and Butagaz will complete by the end of June 2015 and in the final calendar quarter of 2015 respectively; and
 there will be normal winter weather conditions.
At this very early stage the Group anticipates that both operating profit and adjusted earnings per share from continuing activities will be very significantly ahead of the prior year.


Operating review
DCC Energy



2015
2014
% change



Revenue
7,624.1m
8,243.6m
-7.5%
Volumes (litres)
10.8bn
10.2bn
+5.7%
Operating profit
119.4m
110.5m
+8.1%
Return on capital employed 
19.8%
17.5%

It was an excellent year for growth and development in DCC Energy. DCC Energy delivered a strong trading performance with operating profit 8.1% ahead of the prior year (10.3% ahead on a constant currency basis). The trading performance benefitted from acquisitions and a continuing focus on operational efficiency, partly offset by the effect of mild winter weather conditions, relative to the 10 year average, which impacted all geographies in which DCC Energy operates. DCC Energy made excellent progress in its strategy to expand both its retail and LPG businesses by committing to acquire both the Esso Retail and Butagaz businesses in France. 
DCC Energy sold 10.8 billion litres of product during the year, an increase of 5.7% over the prior year (1.2% organically). 
The Oil distribution business performed robustly, notwithstanding the impact of the mild winter weather conditions. The business benefitted from good cost control, improved logistics efficiencies and continued growth in the commercial sectors of the market. The business continued its focus on growth in the transport fuels sector and made good progress in supplying retail petrol station, marine and aviation customers. 
The LPG business performed well during the year. Good growth was achieved in sales to commercial and industrial customers in the UK and Ireland, while in Benelux the autogas sector performed strongly. Continuing its strategy to expand the LPG business into new markets, DCC today announced it has made a binding offer to acquire Butagaz, which would position DCC Energy as the strong number two in the LPG market in France.
DCC Energy made excellent progress in developing its business in Retail and Fuel Cards. DCC's fuel card business in Britain had an excellent year and recorded very strong organic volume growth. The acquisition of Qstar in May 2014 was DCC's first material acquisition in the retail petrol station market and positions DCC as the fifth largest retailer of petrol and diesel in Sweden through Qstar's nationwide network of 325 unmanned sites. Qstar has performed in line with expectations since acquisition. DCC Energy made further progress in the retail sector when it announced in August 2014 that it had reached agreement in principle to acquire Esso's retail petrol station business in France, comprising 274 unmanned Esso Express sites and concessions to operate 48 Esso branded motorway sites. 
Following the completion of the Esso Retail acquisition in France, DCC Energy will operate across ten countries in Europe and remains well positioned to grow in those markets and to continue to expand into new geographies.
DCC Technology



2015
2014
% change



Revenue
2,350.3m
2,264.0m
+3.8%
Operating profit
49.3m
48.1m
+2.6%
Operating margin
2.1%
2.1%

Return on capital employed 
25.5%
21.1%

DCC Technology achieved a satisfactory result, with operating profit increasing by 3.7% on a constant currency basis. The business recorded strong growth in its Continental European and Supply Chain Services businesses and good growth in its UK & Ireland reseller customer channel. This strong performance was largely offset by the impact of a weaker market for tablets and mobile phones in the UK, following a very strong prior year. 
Exertis UK & Ireland achieved strong growth across its UK reseller customer channel driven by sales of technical and specialist products, such as servers, storage, networking and security. This was offset by a decline in sales into the retail channel, primarily driven by lower sales of tablets and smartphones, particularly in the second half. The UK business was impacted by the fall in the overall tablet market, which declined by 17% in 2014, and reduced sales of mobile computing and communications products of one large supplier in the second half of the financial year. Good growth was achieved in gaming products as the business benefitted from the first full year of the latest generation of gaming consoles, which were launched in advance of Christmas 2013. The Irish business benefitted from growth in its reseller business and good cost control. Exertis UK & Ireland now accounts for 79% of revenue of the division. In May 2015, DCC Technology acquired Computers Unlimited ("CU"), a consumer technology distributor, operating primarily in the UK but also with operations in France and Spain. The business is focused on the 'Connected Home' and professional design market and distributes a range of products that are complementary to those distributed by Exertis, including design software, printers, accessories and premium audio systems.
Following the successful rebranding of all of the businesses within DCC Technology to Exertis in the prior year, the business is in the process of upgrading its logistics and IT infrastructure in the UK. This project will add significant warehouse capacity, improve efficiency and enable Exertis UK to continue to expand its product and service offering.
Exertis Continental Europe, which accounts for 14% of divisional revenue, achieved very strong growth. The business made further progress in expanding its geographic coverage, in line with its strategic objectives, by acquiring CapTech, the third largest IT distributor in Sweden. This acquisition will provide the foundation for the development of a more broadly based business in the Nordic region. In France the business generated strong organic growth, benefitting from the introduction of a number of new suppliers and good cost management. 
Exertis Supply Chain Services, which accounts for 7% of divisional revenue, achieved excellent organic growth as it won new business, achieved growth with existing customers and made further progress in positioning its supply chain offering as an integral part of the full end-to-end service proposition provided by DCC Technology. 
DCC Technology has strong market positions andindustry-leading integrated service offerings. The investments being undertaken will drive efficiencies and enable further development of its service propositions,leaving the business well placed to continue to benefit from the product innovations of its suppliers and the expansion of sales channels for technology products.
DCC Healthcare
2015
 2014
% change



Revenue
488.1m
406.5m
+20.1%
Operating profit
39.7m
30.4m
+30.6%
Operating margin
8.1%
7.5%

Return on capital employed 
16.6%
14.2%

DCC Healthcare had another excellent year, growing its operating profit by 30.6%(40.4% excluding Virtus Inc. which was disposed of in March 2014), approximately one quarter of which was organic. The business also increased its return on capital employed and significantly enhanced its market position and scale through further bolt-on acquisition activity and the successful integration of recent acquisitions. 
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 acquisitions made in the current and prior year and good organic growth. Williams Medical , which was acquired in May 2014, grew its profits in line with expectations.This acquisition has given DCC Vital market leadership in the supply of medical devices, pharmaceuticals and related services to GP surgeries in Britain, as well as a growing business in supplying healthcare providers in the evolving community and domiciliary care sectors. DCC Vital now offerscomprehensive coverage across all sales channels in Britain and is well positioned to benefit from government health and social care policies which are focused on shifting the point of care to the most cost effective location, typically away from acute care settings to primary and community care settings.
DCC Vital recorded particularly good organic growth in hospital injectable pharmaceuticals, an area that was further enhanced by the acquisition of Beacon Pharmaceuticals in November 2014. Good growth was also achieved in medical devices including electrodes, diathermy consumables, anaesthesia products and gloves.
DCC Health & Beauty Solutions, which provides outsourced solutions to nutrition and beauty brand owners in Europe, generated excellent organic operating profit growth, driven by integration synergies, margin improvement, good cost control and also benefitted from a full year contribution from UPL, acquired in January 2014. The business is leveraging its increased market presence in the beauty area and its enhanced capability in the manufacturing of creams and liquids. The Swedish tablet manufacturing operations have now been fully integrated into the larger tablet manufacturing facility in Britain with sales and regulatory personnel retained in Sweden to focus on business development in the Nordic region. DCC Health & Beauty Solutions seeks to focus its resources on developing and manufacturingmore complex, higher added value products on behalf of its customers. The business made good progress in this regard during the year which enabled it to improve its sales mix,particularly in nutritional soft gel capsules,and achieve higher margins. 
DCC Healthcare remains well placed to continue the strong record of growth and development across its business. 

DCC Environmental




2015
2014
% change




Revenue
143.6m
130.6m
+9.9%
Operating profit
13.3m
11.7m
+13.2%
Operating margin
9.3%
9.0%

Return on capital employed 
9.7%
8.6%

DCC Environmental recorded a strong result, with operating profit increasing by 13.2% and an improvement in its return on capital employed. 
Despite the impact in the year of sustained weakness in commodity prices, the British business performed strongly. Volumes grew by 18% primarily as a result of increased economic activity, particularly in the industrial and construction sectors, and good new business development initiatives. Underlying margins also improved aided by an increase in the proportion of waste diverted from landfill, the most expensive and least environmentally sustainable disposal outlet.
Operating profit also increased in Ireland. The business successfully expanded its range of services, particularly to the waste water treatment sector. In addition, the business benefitted from good cost management and its continuing focus on operational efficiency. 

Annual Report and Annual General Meeting
DCC's 2015 Annual Report will be published in June 2015. The Company's Annual General Meeting will be held at 11.00 am on Friday 17 July 2015 in The InterContinental Hotel, Simmonscourt Road, Ballsbridge, Dublin 4, Ireland. 
Forward-looking statements
This announcement contains some forward-looking statements that represent DCC's expectations for its business, based on current expectations about future events, which by their nature involve 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.
Presentation of results and dial-in facility
There will be a presentation of these results to analysts and investors/fund managers in London at 8.45 am today. The slides for this presentation can be downloaded from DCC's website, www.dcc.ie. 
A dial-in facility will be available for this meeting:
Ireland:  +353 (0) 1 486 0914
UK / International: +44 (0) 20 3427 1903
Passcode:   7191600
This announcement and further information on DCC is available at www.dcc.ie

Group Income Statement
for the year ended 31 March 2015 


2015

Restated 2014


Pre exceptionals
Exceptionals
(note 8)
Total

Pre exceptionals
Exceptionals
(note 8)
Total

Notes
'000
'000
'000

'000
'000
'000









Continuing operations








Revenue 
7
10,606,080
-
10,606,080

11,044,763
-
11,044,763
Cost of sales

(9,781,910)
-
(9,781,910)

(10,283,389)
-
(10,283,389)
Gross profit

824,170
-
824,170

761,374
-
761,374
Administration expenses

(262,923)
-
(262,923)

(246,515)
-
(246,515)
Selling and distribution expenses

(350,978)
-
(350,978) 

(330,582)
-
(330,582)
Other operating income

19,657
3,798
23,455

19,253
30,491
49,744
Other operating expenses

(8,210)
(23,602)
(31,812)

(2,833)
(39,053)
(41,886)
Operating profit before amortisation 
of intangible assets
221,716
(19,804)
201,912

200,697
(8,562)
192,135
Amortisation of intangible assets
(24,057)
-
(24,057)

(19,656)
-
(19,656)
Operating profit
7
197,659
(19,804)
177,855

181,041
(8,562)
172,479
Finance costs

(60,216)
(2,191)
(62,407)

(50,540)
(2,128)
(52,668)
Finance income

31,288
-
31,288

29,409
-
29,409
Equity accounted investments' profit after tax
402
-
402

520
-
520
Profit before tax from continuing operations

169,133
(21,995)
147,138

160,430
(10,690)
149,740
Profit for the financial year from discontinued operations
6
5,088
11,079
16,167

6,006
 
 (4,721)
1,285
Profit before tax

174,221
(10,916)
163,305

166,436
(15,411)
151,025
Income tax expense

(18,881)
-
(18,881)

(21,827)
(5,255)
(27,082)
Profit after tax for the financial year
1
155,340
(10,916)
144,424

144,609
(20,666)
123,943









Profit attributable to:







Owners of the Parent



144,427


121,234
Non-controlling interests



(3)


2,709




144,424


123,943
Profit after tax for the financial year comprises:




Profit after tax from continuing operations

128,661


123,369
Profit after tax from discontinued operations

15,763


574




144,424


123,943
Earnings per ordinary share







Basic - continuing operations
9


 153.20p


 144.02p
Basic - discontinued operations
9


 18.77p


 0.68p
Basic 
9


 171.97p


 144.70p








Diluted - continuing operations
9


 152.10p


 143.22p
Diluted - discontinued operations
9


 18.63p


  0.68p
Diluted 
9


  170.73p


 143.90p

Group Statement of Comprehensive Income
for the year ended 31 March 2015











2015

2014




'000

'000







Group profit for the financial year



144,424

123,943







Other comprehensive income:






Items that may be reclassified subsequently to profit or loss






Currency translation: 






- arising in the year



(15,007)

(7,575)
- recycled to the Income Statement on disposal 



(2,721)

324
Movements relating to cash flow hedges



(6,942)

(3,455)
Movement in deferred tax liability on cash flow hedges



324

288




(24,346)

(10,418)







Items that will not be reclassified to profit or loss






Group defined benefit pension obligations:






- remeasurements



(19,302)

(835)
- movement in deferred tax asset



2,187

152


(17,115)

 (683)







Other comprehensive income for the financial year, net of tax



(41,461)

(11,101)






Total comprehensive income for the financial year

102,963

 112,842














Attributable to:






Owners of the Parent



103,555

110,189
Non-controlling interests



(592)

2,653



102,963

112,842
Attributable to:






Continuing operations



103,378

114,479
Discontinued operations



(415)

(1,637)



102,963

112,842


Group Balance Sheet
as at 31 March 2015



















Restated




2015

2014



Note
'000

'000

ASSETS






Non-current assets






Property, plant and equipment


464,689

464,864
Intangible assets


759,179

742,516
Equity accounted investments 


4,963

6,124
Deferred income tax assets


9,380

11,251
Derivative financial instruments 


233,150

56,240



1,471,361

1,280,995






Current assets





Inventories


320,655

501,408
Trade and other receivables


847,274

957,821
Derivative financial instruments


5,395

1,221
Cash and cash equivalents


1,260,942

962,139



2,434,266

2,422,589
Assets classified as held for sale


12,196

-



2,446,462

2,422,589






Total assets


3,917,823

3,703,584






EQUITY





Capital and reserves attributable to owners of the Parent



Share capital


14,688

14,688
Share premium


83,032

83,032
Share based payment reserve 

11
12,756

10,630
Cash flow hedge reserve

11
(10,462)

(3,844)
Foreign currency translation reserve

11
32,683

49,822
Other reserves

11
932

932
Retained earnings


849,119

786,158
Equity attributable to owners of the Parent


982,748

941,418
Non-controlling interests


4,245

4,837
Total equity


986,993

946,255






LIABILITIES





Non-current liabilities





Borrowings


1,314,386

725,831
Derivative financial instruments


92

45,636
Deferred income tax liabilities


30,533

27,518
Post employment benefit obligations

13
10,230

16,033
Provisions for liabilities and charges


29,016

24,157
Contingent acquisition consideration


40,149

36,949
Government grants


1,272

1,323



1,425,678

877,447






Current liabilities 





Trade and other payables


1,312,136

1,489,054
Current income tax liabilities


16,095

32,244
Borrowings


149,472

316,726
Derivative financial instruments


7,902

18,699
Provisions for liabilities and charges


8,096

6,785
Contingent acquisition consideration


3,235

16,374



1,496,936

1,879,882
Liabilities associated with assets classified as held for sale
8,216

-



1,505,152

1,879,882
Total liabilities


2,930,830

2,757,329






Total equity and liabilities


3,917,823

3,703,584






Net cash/(debt) included above (including cash attributable to assets held for sale)

12
29,987

(87,292)









Group Statement of Changes in Equity
For the year ended 31 March 2015
 Attributable to owners of the Parent






Other

Non-


Share
Share
Retained
reserves

controlling
Total

capital
premium 
earnings
(note 11)
Total
interests
equity

'000
'000
'000
'000
'000
'000
'000








At 1 April 2014 
14,688
83,032
786,158
57,540
941,418
4,837
946,255








Profit for the financial year
-
-
144,427
-
144,427
(3)
144,424








Currency translation:







- arising in the year
-
-
-
(14,418)
(14,418)
(589)
(15,007)
- recycled to the Income Statement on disposal 
-
-
-
(2,721)
(2,721)
-
(2,721)
Group defined benefit pension obligations:







- remeasurements
-
-
(19,302)
-
(19,302)
-
(19,302)
- movement in deferred tax asset
-
-
2,187
-
2,187
-
2,187
Movements relating to cash flow hedges
-
-
-
(6,942)
(6,942)
-
(6,942)
Movement in deferred tax liability on cash flow hedges
-
-
-
324
324
-
324
Total comprehensive income
-
-
127,312
(23,757)
103,555
(592)
102,963








Re-issue of treasury shares 
-
-
1,699
-
1,699
-
1,699
Share based payment
-
-
-
2,126
2,126
-
2,126
Dividends
-
-
(66,050)
-
(66,050)
-
(66,050)
At 31 March 2015
14,688
83,032
849,119
35,909
982,748
4,245
986,993
For the year ended 31 March 2014
 Attributable to owners of the Parent






Other

Non-


Share
Share
Retained
reserves

controlling
Total

capital
premium 
earnings
(note 11)
Total
interests
equity

'000
'000
'000
'000
'000
'000
'000








At 1 April 2013 
14,688
83,032
725,514
66,717
889,951
2,391
892,342








Profit for the financial year
-
-
121,234
-
121,234
2,709
123,943








Currency translation:







- arising in the year
-
-
-
(7,519)
(7,519)
(56)
(7,575)
- recycled to the Income Statement on disposal 
-
-
-
324
324
-
324
Group defined benefit pension obligations:







- remeasurements
-
-
(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 31 March 2014
14,688
83,032
786,158
57,540
941,418
4,837
946,255









Group Cash Flow Statement
for the year ended 31 March 2015





Restated



2015

2014


Note
'000

'000
Cash flows from operating activities





Profit for the financial year


144,424

123,943
Add back non-operating expenses





- tax


18,881

27,082
- share of equity accounted investments' profit


(489)

(997)
- net operating exceptionals


8,725

13,283
- net finance costs


31,313

23,539
Operating profit before exceptionals


202,854

186,850
Share-based payments expense


2,126

1,185
Depreciation


59,710

55,402
Amortisation of intangible assets


25,345

20,416
Profit on disposal of property, plant and equipment


(3,256)

(1,783)
Amortisation of government grants


(358)

(383)
Other (primarily pension payments)


(11,159)

(1,779)
Decrease in working capital


102,556

86,955
Cash generated from operations before exceptionals


377,818

346,863
Exceptionals


(16,454)

(21,097)
Cash generated from operations


361,364

325,766
Interest paid


(59,678)

(50,011)
Income tax paid


(32,361)

(33,033)
Net cash flows from operating activities


269,325

242,722





Investing activities





Inflows:





Proceeds from disposal of property, plant and equipment


16,054

8,579
Government grants received


52

100
Dividends received from equity accounted investments


828

633
Disposal of subsidiaries and equity accounted investments
6
55,090

11,073
Interest received


31,222

30,210



103,246

50,595
Outflows:





Purchase of property, plant and equipment


(79,401)

(78,557)
Acquisition of subsidiaries 
 
14
(107,223)

(39,876)
Contingent acquisition consideration paid


(16,326)

(10,196)



(202,950)

(128,629)
Net cash flows from investing activities


(99,704)

(78,034)






Financing activities





Inflows:





Re-issue of treasury shares


1,699

1,981
Increase in interest-bearing loans and borrowings


448,989

342,950
Net cash inflow on derivative financial instruments


-

4,554
Increase in finance lease liabilities


-

324



450,688

349,809
Outflows:





Repayment of interest-bearing loans and borrowings


(169,631)

(60,364)
Repayment of finance lease liabilities


(486)

(499)
Net cash outflow on derivative financial instruments


(9,832)

-
Dividends paid to owners of the Parent

10
(66,050)

(61,888)
Dividends paid to non-controlling interests


-

(207)



(245,999)

(122,958)
Net cash flows from financing activities


204,689

226,851






Change in cash and cash equivalents


374,310

391,539
Translation adjustment


(58,206)

(8,355)
Cash and cash equivalents at beginning of year


813,561

430,377
Cash and cash equivalents at end of year


1,129,665

813,561






Cash and cash equivalents consists of:





Cash and short term bank deposits


1,260,942

962,139
Overdrafts


(133,629)

(148,578)
Cash and short term deposits attributable to assets held for sale

2,352

-



1,129,665

813,561


Notes to the Financial Statements 
for the year ended 31 March 2015
1. Basis of Preparation
The financial information, from the Group Income Statement to note 18, contained in this preliminary results statement has been derived from the Group financial statements for the year ended 31 March 2015 and is presented in sterling, rounded to the nearest thousand. The financial information does not include all the information and disclosures required in the annual financial statements. The Annual Report will be distributed to shareholders and made available on the Company's website www.dcc.ie. It will also be filed with the Companies Registration Office. The auditors have reported on the financial statements for the year ended 31 March 2015 and their report was unqualified. The financial information for the year ended 31 March 2014 represents an abbreviated, restated version of the Group's statutory financial statements on which an unqualified audit report was issued and which have been filed with the Companies Registration Office.
The financial information presented in this report has been prepared in accordance with the Listing Rules of the Financial Services Authority and the accounting policies that the Group has adopted for 2015 which are consistent with those applied in the prior year except as otherwise set out below.
2. Accounting Policies
The Group has adopted the following standards, interpretations and amendments to existing standards during the financial year:
 IFRS 10 Consolidated Financial Statements. This standard replaces all of the guidance on control and consolidation in IAS 27 and SIC 12. IFRS 10 changes the definition of control so that the same criteria are applied to all entities to determine control. The core principle that a consolidated entity presents a parent and its subsidiaries as if they are a single entity remains unchanged, as do the mechanics of consolidation. IAS 27 is renamed 'Separate Financial Statements' and is now a standard dealing solely with separate financial statements. This standard and the amendment to IAS 27 did not have a significant impact on the Group's financial statements;
 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 3. 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;
 IFRS 12 Disclosure of Interests in Other Entities. This standard sets out the required disclosures for entities reporting under IFRS 10 and IFRS 11. IFRS 12 requires entities to disclose information about the nature, risks and financial effects associated with the entity's interests in subsidiaries, associates, joint arrangements and unconsolidated structured entities. This standard did not have a significant impact on the Group's financial statements; and
 Amendment to IAS 32 Financial Instruments: Presentation. This amendment clarifies that the right of set-off within financial assets and financial liabilities must not be contingent on a future event. It must also be legally enforceable for all counterparties in the normal course of business, as well as in the event of default, insolvency or bankruptcy. This amendment did not have a significant impact on the Group's financial statements.
There are a number of other amendments to existing standards which became effective for the Group during the financial year but did not result in material changes to the Group's consolidated financial statements.
3. 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



 Year ended 31 March 2014









 Analysed as:





Change in



 Restated Restated



As 

Accounting



Discontinued

Continuing



Reported 

Policy

Restated 

Operations

Operations



'000

'000

'000

'000

'000












Revenue


11,231,666

(20,834)

11,210,832

166,069

11,044,763
Operating profit before 
exceptional items 
and amortisation of 
intangible assets

208,403

(1,137)

207,266

6,569

200,697
Net operating exceptional items


(13,283)

-

(13,283)

(4,721)

(8,562)
Amortisation of intangible assets


(20,416)

-

(20,416)

(760)

(19,656)
Operating profit


174,704

(1,137)

173,567

1,088

172,479
Finance costs (net)


(23,539)

-

(23,539) 

(280)

(23,259)
Share of equity accounted 
investments

33

964
997

477

520
Profit before tax


151,198

(173)

151,025

1,285

149,740
Income tax expense


(27,255)

173

(27,082)

(711)

(26,371)
Profit after tax for the 
financial year

123,943

-

123,943

574

123,369












Earnings per ordinary share











Basic


 144.70p

 -

 144.70p

0.68p

 144.02p
Diluted


143.90p

-

 143.90p

0.68p

 143.22p












Adjusted earnings per ordinary share











Basic


191.20p

-

 191.20p

7.11p

 184.09p
Diluted


190.14p

-

 190.14p

7.08p

183.06p



















Impact on Group Balance Sheet









As at 31 March 2014







 

Change in









As 

accounting

 







reported 

policy

 Restated 







'000

'000

  '000












ASSETS











Non-current assets excluding equity accounted investments



1,280,990

(6,119)

1,274,871
Equity accounted investments






824

5,300

6,124
Current assets






2,425,785

(3,196)

2,422,589
Total assets






3,707,599

(4,015)

3,703,584












EQUITY











Total equity






946,255

-

946,255












LIABILITIES











Non-current liabilities






877,455

(8)

877,447
Current liabilities






1,883,889

(4,007)

1,879,882
Total liabilities






2,761,344

(4,015)

2,757,329
Total equity and liabilities






3,707,599

(4,015)

3,703,584












Net debt included above






(86,287)

(1,005)

(87,292)

Impact on Group Cash Flow Statement



Year ended 31 March 2014







 

Change in









As 

accounting

 






 
 reported 

policy

 Restated 







'000

'000

  '000












Net cash flows from operating activities





244,363

(1,641)

242,722
Net cash flows from investing activities





(79,346)

1,312

(78,034)
Net cash flows from financing activities





226,851

-

226,851
Change in cash and cash equivalents






391,868

(329)

391,539
Translation adjustment






(8,376)

21

(8,355)
Opening cash and cash equivalents






431,074

(697)

430,377
Closing cash and cash equivalents






814,566

(1,005)

813,561
4. Statutory Accounts
The financial information included in this report does not constitute full statutory financial statements but has been derived from the Group financial statements for the year ended 31 March 2015 which were approved by the Board of Directors on 18 May 2015. 
5. Reporting Currency
The Group's financial statements are prepared in sterling denoted by the symbol . The exchange rates used in translating non-sterling Income Statement and Balance Sheet amounts into sterling were as follows:

 Average rate
 Closing rate

2015
2014
2015
2014

Stg1=
Stg1=
Stg1=
Stg1=





Euro
1.2674
1.1847
1.3749
1.2074
Danish Krone
9.4577
8.8386
10.2705
9.0146
Swedish Krona
11.6866
10.3362
12.7734
10.8045
Norwegian Krone
10.7266
9.5103
11.9669
9.9674
6. Net Result from Discontinued Operations and Assets Classified as Held for Sale
Net Result from Discontinued Operations
As announced on 23 February 2015 the Group completed the disposal of the Roberts Roberts (including Findlater Wine & Spirits) and Kelkin businesses. In addition, the Group disposed of the trade and assets of Allied Foods as announced on 4 November 2014 and the disposal of Bottle Green Limited was completed on 28 April 2015. These businesses represented the Group's Food & Beverage division. 
The following table summarises the consideration received, the profit on disposal of discontinued operations and the net cash flow arising on the disposal of these businesses:

'000
Net consideration:

Proceeds received
 55,090 
Costs of disposal
(4,326)
Total net consideration
50,764


Assets and liabilities disposed of:

Non-current assets
35,597
Current assets
37,631
Non-current liabilities
(9,138)
Current liabilities
(19,569)
Net identifiable assets and liabilities disposed of
44,521
Recycling of foreign exchange gain previously recognised in foreign currency translation reserve
(2,721)
Non-cash impairment loss arising on assets held for sale
750

42,550


Profit on disposal of discontinued operations after tax
8,214


Net cash flow from disposal of discontinued operations:

Total proceeds received
 55,176 
Cash and cash equivalents disposed of
(86)
Net cash inflow from disposal of discontinued operations
55,090
Disposal costs paid
(2,431)

52,659
The conditions for the businesses disposed of during the year (Robert Roberts, Kelkin and the trade and assets of Allied Foods) and after year end (Bottle Green Limited) to be classified as discontinued operations were fulfilled in the second half of the current financial year and, consequently, the results of these businesses which represented the Group's Food & Beverage division are presented separately as discontinued operations in the Group Income Statement and Group Cash Flow Statement. 
The following table details the results of discontinued operations included in the Group Income Statement:

2015

2014

'000

'000




Revenue
143,360 

 166,069 
Cost of sales
(111,314)

(128,849)
Gross profit
32,046

37,220
Expenses
(25,563)

(30,651)
Operating profit before amortisation of intangible assets and exceptional items
6,483

6,569
Amortisation of intangible assets
(1,288)

(760)
Operating profit
5,195

5,809
Net finance costs
(194)

(280)
Share of equity accounted investments' profit after tax
87

477
Profit before exceptional items and tax
5,088

6,006
Exceptional items
2,865

(4,721)
Profit on disposal of discontinued operations 
8,214

-
Profit before tax
16,167

1,285
Income tax expense
(404)

(711)
Profit from discontinued operations after tax
15,763

574
The profit for the year from discontinued operations is fully attributable to the equity holders of the Company. 
The following table details the cash flows from discontinued operations included in the Group Cash Flow Statement:

2015

2014

'000

'000




Net cash flows from operating activities
(1,756)

4,897
Net cash flows from investing activities
4,674

1,692
Net cash flows from financing activities
-

-
Net cash flows from discontinued operations
2,918

6,589
Assets Classified as Held for Sale
Following the disposal of a number of subsidiaries from the Food & Beverage division during the year, the Board committed to selling the division's remaining small UK wine distribution subsidiary, Bottle Green Limited and, accordingly, the assets and liabilities of this business are classified as an asset held for sale at the balance sheet date and the trading result is treated as a discontinued operation. The sale of this remaining subsidiary was completed on 28 April 2015. The fair value less costs to sell of the major classes of assets and liabilities held for sale as at 31 March 2015 are as follows:

2015

'000
Assets

Property, plant and equipment 
647
Deferred income tax assets 
48
Inventories 
2,537
Trade and other receivables 
6,612
Cash and cash equivalents 
2,352
Assets classified as held for sale
12,196


Liabilities

Trade and other payables 
(7,863)
Current income tax liabilities
(103)
Provisions for liabilities and charges 
(250)
Liabilities associated with assets classified as held for sale
(8,216)
Net assets
3,980
7. 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 Technology, DCC Healthcare and DCC Environmental.
DCC Energy markets and sells oil products and services for transport, commercial/industrial, marine, aviation and home heating use in Europe. DCC Energy markets and sells liquefied petroleum gas for similar uses in Europe. DCC Energy also owns, operates and supplies unmanned and manned retail service stations in Europe. 
DCC Technology sells, markets and distributes a broad range of consumer and SME focused 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.
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.
During the year ended 31 March 2015, the Group disposed of the DCC Food & Beverage division. This resulted in a change in the composition of operating segments. Following this change, we have revised our segmental reporting and restated the prior year segmental disclosures as required under IFRS 8. 
(a) By operating segment

Year ended 31 March 2015
  DCCDCC DCC DCC  
 Energy Technology Healthcare Environmental  Total

'000

'000

 '000

'000

 '000










Segment revenue
7,624,082

2,350,284

 488,114

143,600

10,606,080










Operating profit*
119,392

49,341

 39,689

13,294

 221,716
Amortisation of intangible assets
(14,334)

(2,794)

 (6,143)

(786)

 (24,057)
Net operating exceptionals (note 8)
(7,137)

(11,101)

 (1,161)

(405)

 (19,804)
Operating profit
97,921

35,446

 32,385

12,103

 177,855

Year ended 31 March 2014 (restated)
 DCC DCC DCC DCC  
 Energy Technology Healthcare  Environmental  Total

'000

'000

 '000

'000

 '000










Segment revenue
8,243,645

 2,263,973

 406,510

130,635

11,044,763










Operating profit*
110,467

48,092

 30,392

11,746

 200,697
Amortisation of intangible assets
(13,686)

(1,974)

 (2,711)

(1,285)

 (19,656)
Net operating exceptionals (note 8)
(4,219)

(11,371)

 3,285

3,743

 (8,562)
Operating profit
92,562

34,747

 30,966

14,204

 172,479
* Operating profit before amortisation of intangible assets and net operating exceptionals
(b) By geography

Year ended 31 March 2015
 Republic of Rest of
 UK Ireland the World Total







 '000

'000

'000

 '000














Segment revenue






8,023,403

717,077

1,865,600

10,606,080














Operating profit*






 170,014

17,671

34,031

 221,716
Amortisation of intangible assets

 (15,200)

(1,164)

 (7,693)

 (24,057)
Net operating exceptionals (note 8)



 (12,822)

(5,222)

 (1,760)

 (19,804)
Operating profit






 141,992

11,285

 24,578

 177,855


Year ended 31 March 2014 (restated)
 Republic of Rest of
  UK Ireland the World Total







 '000

'000

'000

 '000














Segment revenue






8,342,727

767,573

1,934,463

11,044,763














Operating profit*






 158,710

15,518

26,469

 200,697
Amortisation of intangible assets

 (11,721)

(1,315)

 (6,620)

 (19,656)
Net operating exceptionals (note 8)



 8,107

(14,537)

 (2,132)

 (8,562)
Operating profit






 155,096

(334)

 17,717

 172,479
* Operating profit before amortisation of intangible assets and net operating exceptionals


8. Exceptionals





2015

2014

'000

'000




Restructuring costs
(15,027)

(19,720)
Impairment of goodwill 
(5,637)

(8,892)
Acquisition and related costs
(3,396)

(5,602)
Impairment of property, plant and equipment
(1,508)

(550)
Adjustments to contingent acquisition consideration
415

16,165
Gain arising from Taiwanese legal claim
894

6,962
Net profit on disposal of Virtus Inc.
-

4,684
Restructuring of Group defined benefit pension schemes
6,381

1,435
Legal and other operating exceptional items
(1,926)

(3,044)
Net operating exceptional items
(19,804)

(8,562)




Mark to market of swaps and related debt
(2,191)

(2,128)
Net exceptional items before taxation
(21,995)

(10,690)




Tax on Taiwanese legal claim
-

(5,255)
Net exceptional items after taxation (continuing operations)
(21,995)

(15,945)




Net profit on disposal of Food & Beverage division (note 6)
8,214

-
Other net exceptional items relating to discontinued operations
2,865

(4,721)

(10,916)

(20,666)




Non-controlling interest share of profit on disposal of subsidiary
-

(2,055)
Net exceptional items attributable to owners of the Parent 
(10,916)

(22,721)
The analysis of the net operating exceptional items of 19.804 million (2014: 8.562 million) is as follows:

2015

2014

'000

'000




Exceptional operating income
3,798

30,491
Exceptional operating expense
(23,602)

(39,053)

(19,804)

(8,562)
The Group incurred an exceptional charge of 15.027 million in relation to restructuring of acquired and existing businesses, including restructuring and integration costs within DCC Technology's UK operations.
There was a non-cash exceptional charge of 5.637 million relating to the impairment of subsidiary goodwill. This charge reflects an impairment charge in relation to the carrying value of a cash generating unit within DCC Healthcare. There was also a non-cash impairment of property assets of 1.508 million which principally arose in DCC Healthcare. 
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 year, acquisition and related costs amounted to 3.396 million.
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 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 year to 31 March 2015 this amounted to a total exceptional loss of 2.191 million.
There was a non-cash credit of 0.415 million for contingent acquisition consideration overprovided in previous years. In accordance with IFRS 3 (revised), contingent consideration is measured at fair value at the time of the business combination. If the amount of contingent consideration changes as a result of a post-acquisition event then the changed amount is recognised in the Income Statement. 
The Group continues to pursue collection of outstanding amounts relating to a Taiwanese legal claim. There was a further modest recovery of 0.894 million during the year.
The restructuring of certain of the Group's pension arrangements during the year gave rise to an exceptional gain of 6.381 million. 
As detailed in note 6 the Group disposed of its Irish Food & Beverage subsidiaries during the second half of the financial year. The aggregate consideration from these disposals was 55.090 million and the disposals generated an exceptional gain, net of disposal costs, of 8.214 million. Other net exceptional items relating to discontinued operations of 2.865 million principally comprise a gain on the restructuring of certain of DCC Food & Beverage's pension arrangements.
9. Earnings per Ordinary Share





 


Continuing operations
Discontinued
operations 

Total

Continuing operations
Discontinued operations

Total

(note 6)

(note 6)

2015
2015
2015

2014
2014
2014

'000
'000
'000

'000
'000
'000








Profit attributable to owners of the Parent
128,664
15,763
144,427

120,660
574
121,234
Amortisation of intangible assets after tax
19,171
1,166
20,337

15,572
665
16,237
Exceptionals after tax (note 8)
21,995
(11,079)
10,916

18,000
4,721
22,721
Adjusted profit after taxation and 
non-controlling interests
169,830
5,850
175,680

154,232
5,960
160,192













Continuing operations
Discontinued operations
Total

Continuing operations
Discontinued
operations
Total

2015
2015
2015

2014
2014
2014
Basic earnings per ordinary share
pence
pence
pence

pence
pence
pence








Basic earnings per ordinary share
153.20p
18.77p
171.97p

144.02p
 0.68p
144.70p
Amortisation of intangible assets after tax
22.83p
1.39p
24.22p

18.59p
 0.79p
 19.38p
Exceptionals after tax
26.19p
(13.19p)
13.00p

21.48p
 5.64p
 27.12p
Adjusted basic earnings per 
ordinary share
202.22p
6.97p
209.19p

184.09p
 7.11p
191.20p








Weighted average number of ordinary shares in issue (thousands)


83,983



 83,781








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 year, excluding ordinary shares purchased by the Company and held as treasury shares. The adjusted figures for basic 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.

Continuing
Discontinued


Continuing
Discontinued


operations
operations
Total

operations
operations
Total

2015
2015
2015

2014
2014
2014
Diluted earnings per ordinary share
pence
pence
pence

pence
pence
pence








Basic earnings per ordinary share
 
152.10p
18.63p
170.73p

143.22p
 0.68p
143.90p
Amortisation of intangible assets after tax
22.66p
1.38p
24.04p

18.48p
 0.79p
 19.27p
Exceptionals after tax
26.00p
(13.10p)
12.90p

21.36p
 5.61p
 26.97p
Adjusted basic earnings per 
ordinary share
200.76p
 6.91p
207.67p

183.06p
 7.08p
190.14p








Weighted average number of ordinary shares in issue (thousands)


84,594



 84,250
The earnings used for the purposes of the continuing diluted earnings per share calculations were 128.664 million (2014: 120.660 million) and 169.830 million (2014: 154.232 million) for the purposes of the continuing adjusted diluted earnings per share calculations.
The earnings used for the purposes of the discontinued diluted earnings per share calculations were 15.763 million (2014: 0.574 million) and 5.850 million (2014: 5.960 million) for the purposes of the discontinued adjusted diluted earnings per share calculations.
The weighted average number of ordinary shares used in calculating the diluted earnings per share for the year ended 31 March 2015 was 84.594 million (2014: 84.250 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: 

2015

2014

'000

'000




Weighted average number of ordinary shares in issue
83,983

83,781
Dilutive effect of options and awards
611

469
Weighted average number of ordinary shares for diluted earnings per share
84,594

84,250
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 have not been satisfied as at the end of the reporting 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.
10. Dividends







2015

2014
Dividends per Ordinary Share are as follows:

'000

'000
Final - paid 50.73 cent per share on 24 July 2014
 (2014: paid 56.20 cent per share on 25 July 2013)
41,927

39,721
Interim - paid 28.73 pence per share on 28 November 2014 
 (2014: paid 26.12 pence per share on 29 November 2013)
24,123

22,167


66,050

61,888
The Directors are proposing a final dividend in respect of the year ended 31 March 2015 of 55.81 pence per ordinary share (46.891 million, based on the number of Ordinary Shares in issue at 18 May 2015). This proposed dividend is subject to approval by the shareholders at the Annual General Meeting. 
Interim and final dividends declared previously in euro have been translated to sterling using the relevant average sterling/euro exchange rate for the period.


11. Other Reserves

Share

Foreign



based
Cash flow
currency



payment
hedge
translation
Other


reserve
reserve
reserve
reserves
Total
Group
'000
'000
'000
'000
'000






At 1 April 2013
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 -
-
324
-
324
Cash flow hedges





- fair value loss in year - private placement debt 
-
(8,300)
-
-
(8,300)
- fair value loss in year - other
-
(3,828)
-
-
(3,828)
- tax on fair value net losses
-
536
-
-
536
- transfers to sales
-
(676)
-
-
(676)
- transfers to cost of sales
-
2,546
-
-
2,546
- transfers to operating expenses
-
6,803
-
-
6,803
- tax on transfers
-
(248)
-
-
(248)
Share based payment
1,185
-
-
-
1,185
At 31 March 2014
10,630
(3,844)
49,822
932
57,540
Currency translation





- arising in the year 
-
-
(14,418)
-
(14,418)
- recycled to the Income Statement on disposal -
-
(2,721)
-
(2,721)
Cash flow hedges





- fair value gain in year - private placement debt 
-
37,131
-
-
37,131
- fair value loss in year - other
-
(15,901)
-
-
(15,901)
- tax on fair value net gains
-
(2,633)
-
-
(2,633)
- transfers to sales
-
4,893
-
-
4,893
- transfers to cost of sales
-
7,889
-
-
7,889
- transfers to operating expenses
-
(40,954)
-
-
(40,954)
- tax on transfers
-
2,957
-
-
2,957
Share based payment
2,126
-
-
-
2,126
At 31 March 2015
12,756
(10,462)
32,683
932
35,909


12. Analysis of Net Cash/(Debt)



Restated

2015

2014

'000

'000
Non-current assets:



Derivative financial instruments
233,150

56,240




Current assets:



Derivative financial instruments
5,395

1,221
Cash and cash equivalents
1,260,942

962,139

1,266,337

963,360
Non-current liabilities:



Finance leases
(213)

(619)
Derivative financial instruments
(92)

(45,636)
Unsecured Notes 
(1,314,173)

(725,212)

(1,314,478)

(771,467)
Current liabilities:



Bank borrowings
(133,629)

(148,578)
Finance leases
(357)

(501)
Derivative financial instruments
(7,902)

(18,699)
Unsecured Notes 
(15,486)

(167,647)

(157,374)

(335,425)




Net cash/(debt) excluding cash attributable to assets held for sale 
27,635

(87,292)
Add: cash and short term deposits attributable to assets held for sale
2,352

-




Net cash/(debt) including cash attributable to assets held for sale
29,987

(87,292)




13. Post Employment Benefit Obligations
The Group's defined benefit pension schemes' assets were measured at fair value at 31 March 2015. The defined benefit pension schemes' liabilities at 31 March 2015 were updated to reflect material movements in underlying assumptions.
The deficit on the Group's post employment benefit obligations decreased from 16.033 million at 31 March 2014 to 10.230 million at 31 March 2015. The decrease in the deficit was primarily driven by the disposal of DCC Food & Beverage during the year and contributions in excess of the current service cost, offset by an actuarial loss on liabilities which arose from a decrease in the discount rate used to value these liabilities. 

14. 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 year, together with percentages acquired were as follows:
 the acquisition of 100% of Qstar Frsljning AB, a Swedish unmanned petrol station company, along with its related fuel distribution and fuel card businesses ('Qstar'), completed in May 2014;
 the acquisition in May 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;
 the acquisition in September 2014 of 100% of CapTech Distribution AB, Sweden's largest independent technology distribution business; and
 the acquisition in November 2014 of 100% of Beacon Pharmaceuticals Limited, a niche pharma business which markets and sells its own licensed and third party pharma products primarily to the hospital sector in the UK. 
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:

2015
2015
2015
2015


'000
'000
'000
'000


Williams
Qstar
Others
Total

Assets





Non-current assets





Property, plant and equipment 
2,598
26,152
1,518
30,268

Intangible assets - other intangible assets 
11,827
6,983
5,103
23,913

Deferred income tax assets 
2
-
-
2

Total non-current assets
14,427
33,135
6,621
54,183







Current assets





Inventories 
2,536
5,603
12,739
20,878

Trade and other receivables 
6,816
27,815
14,507
49,138

Total current assets
9,352
33,418
27,246
70,016







Liabilities





Non-current liabilities





Deferred income tax liabilities 
(2,365)
(4,879)
(784)
(8,028)

Provisions for liabilities and charges 
-
(10,829)
-
(10,829)

Government grants
(281)
-
-
(281)

Total non-current liabilities
(2,646)
(15,708)
(784)
(19,138)







Current liabilities





Trade and other payables 
(8,686)
(35,520)
(12,628)
(56,834)

Current income tax asset/(liability)
183
-
(413)
(230)

Total current liabilities
(8,503)
(35,520)
(13,041)
(57,064)







Identifiable net assets acquired
12,630
15,325
20,042
47,997

Intangible assets - goodwill 
31,819
23,370
12,526
67,715

Total consideration (enterprise value)
44,449
38,695
32,568
115,712







Satisfied by:





Cash 
47,926
36,402
17,410
101,738

Debt acquired
-
-
9,246
9,246

Cash and cash equivalents acquired 
(3,477)
-
(284)
(3,761)

Net cash outflow
44,449
36,402
26,372
107,223

Contingent acquisition consideration
-
2,293
6,196
8,489

Total consideration
44,449
38,695
32,568
115,712

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 value
Fair value adjustments
Fair value
Williams
'000
'000
'000




Non-current assets (excluding goodwill)
2,600
11,827
14,427
Current assets
9,352
-
9,352
Non-current liabilities 
(281)
(2,365)
(2,646)
Current liabilities
(8,503)
-
(8,503)
Identifiable net assets acquired
3,168
9,462
12,630
Goodwill arising on acquisition
41,281
(9,462)
31,819
Total consideration (enterprise value)
44,449
-
44,449


Book value
Fair value adjustments
Fair value
Qstar
'000
'000
'000




Non-current assets (excluding goodwill)
26,152
6,983
33,135
Current assets
33,418
-
33,418
Non-current liabilities 
(14,172)
(1,536)
(15,708)
Current liabilities
(35,520)
-
(35,520)
Identifiable net assets acquired
9,878
5,447
15,325
Goodwill arising on acquisition
28,817
(5,447)
23,370
Total consideration (enterprise value)
38,695
-
38,695


Book value
Fair value adjustments
Fair value
Others
'000
'000
'000




Non-current assets (excluding goodwill)
1,518
5,103
6,621
Current assets
27,246
-
27,246
Non-current liabilities 
(303)
(481)
(784)
Current liabilities
(13,041)
-
(13,041)
Identifiable net assets acquired
15,420
4,622
20,042
Goodwill arising on acquisition
17,148
(4,622)
12,526
Total consideration (enterprise value)
32,568
-
32,568


Book value
Fair value adjustments
Fair value
Total
'000
'000
'000




Non-current assets (excluding goodwill)
30,270
23,913
54,183
Current assets
70,016
-
70,016
Non-current liabilities 
(14,756)
(4,382)
(19,138)
Current liabilities
(57,064)
-
(57,064)
Identifiable net assets acquired
28,466
19,531
47,997
Goodwill arising on acquisition
87,246
(19,531)
67,715
Total consideration (enterprise value)
115,712
-
115,712
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 2016 Annual Report 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.
3.647 million of the goodwill recognised in respect of acquisitions completed during the financial year is expected to be deductible for tax purposes.
Acquisition related costs included in other operating expenses in the Group Income Statement (inclusive of acquisition costs related to discontinued operations) amounted to 3.463 million (2014: 5.638 million).
No contingent liabilities were recognised on the acquisitions completed during the financial year or the prior financial years.
The gross contractual value of trade and other receivables as at the respective dates of acquisition amounted to 49.276 million. The fair value of these receivables is 49.138 million (all of which is expected to be recoverable) and is inclusive of an aggregate allowance for impairment of 0.138 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 year range from 2.7 million to 18.0 million.
There were no adjustments processed during the year to the fair value of business combinations completed during the year ended 31 March 2014 where those fair values were not readily determinable as at 31 March 2014.
The post-acquisition impact of business combinations completed during the year on Group profit for the financial year, on a continuing basis, was as follows:




2015


'000




Revenue
397,257

Cost of sales
(343,176)

Gross profit
54,081

Operating costs
(38,741)

Operating profit
15,340

Finance costs (net)
8

Profit before tax
15,348

Income tax expense
(2,684)

Profit for the financial year
12,664

The revenue and profit of the Group for the financial year, on a continuing basis, determined in accordance with IFRS as though the acquisition date for all business combinations effected during the year had been the beginning of that year would be as follows:




2015


'000




Revenue
10,658,071

Profit for the financial year
129,561

15. 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 Technology Distribution.
16. Related Party Transactions
There have been no related party transactions or changes in related party transactions that could have a material impact on the financial position or performance of the Group during the 2015 financial year.
17. Events after the Balance Sheet Date
Butagaz S.A.S.
On 18 May 2015 DCC Energy made a binding offer to acquire 100% of Butagaz S.A.S. ("Butagaz"), a French LPG business. DCC has entered into a binding commitment which obligates DCC to enter into an acquisition agreement following completion of Shell's consultation process with its French Works Councils as required under French law. During the period of consultation with its Works Councils, Shell has granted DCC exclusivity in respect of the acquisition of Butagaz. The acquisition will require EU competition and French Ministry of Economy clearance. The transaction would be expected to complete in the final calendar quarter of 2015, after the Works Councils' consultations have taken place and the relevant clearances have been received.

The consideration for the share capital of Butagaz would ultimately be determined on the basis of a completion balance sheet. For illustrative purposes, based on Butagaz's audited balance sheet at 31 December 2014, the consideration, after adjusting for net debt like items, would be 404 million (294 million), payable in cash at completion. Based on the 31 December 2014 balance sheet, the estimated carrying amounts of the assets and liabilities of Butagaz, determined in accordance with IFRS, before completion of the combination are as follows:

Book
value



'000






Non-current assets (excluding goodwill)
306,087


Current assets
186,633


Non-current liabilities 
(237,018)


Current liabilities
(115,581)


Identifiable net assets acquired
140,121


Goodwill arising on acquisition
153,709


Total consideration (enterprise value)
293,830


An initial assignment of fair values to identifiable net assets acquired has not been performed given that Butagaz has not yet been acquired.
Computers Unlimited
In May 2015, DCC Technology acquired Computers Unlimited ("CU") for an initial enterprise value of 24.0 million. CU is a consumer technology distributor operating primarily in the UK but also with operations in France and Spain. The initial assignment of fair values to identifiable net assets acquired has been performed on a provisional basis given the timing of closure of the transaction. 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 were as follows:


Book value
Fair value adjustments
Fair value

'000
'000
'000




Non-current assets (excluding goodwill)
869
2,153
3,022
Current assets
29,628
-
29,628
Non-current liabilities 
-
(431)
(431)
Current liabilities
(14,481)
-
(14,481)
Identifiable net assets acquired
16,016
1,722
17,738
Goodwill arising on acquisition
7,984
(1,722)
6,262
Total consideration (enterprise value)
24,000
-
24,000
Bottle Green Limited
On 28 April 2015 the Group completed the sale of Bottle Green Limited which was classified as an asset held for sale at 31 March 2015.The net proceeds after costs of disposal equated to the carrying value as disclosed in note 6.
18. Board Approval
This announcement was approved by the Board of Directors of DCC plc on 18 May 2015.

This information is provided by RNS
The company news service from the London Stock Exchange
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