REG - DCC PLC - Results for the year ended 31 March 2016 <Origin Href="QuoteRef">DCC.L</Origin> - Part 3

DCCAnnouncement

17/05/2016 07:06

- Part 3: For the preceding part double click  ID:nRSQ4009Yb 

161,879    74,720       39,300    275,899      
 Non-controlling interest arising on acquisition  -          -            (21,311)  (21,311)     
 Other reserve movements arising on acquisition   -          -            2,503     2,503        
 Intangible assets - goodwill                     157,527    14,457       42,486    214,470      
 Total consideration                              319,406    89,177       62,978    471,561      
                                                                                                 
 Satisfied by:                                                                                   
 Cash                                             339,660    95,362       65,470    500,492      
 Cash and cash equivalents acquired               (91,125)   (14,602)     (4,723)   (110,450)    
 Net cash outflow                                 248,535    80,760       60,747    390,042      
 Acquisition related liabilities                  70,871     8,417        2,231     81,519       
 Total consideration                              319,406    89,177       62,978    471,561      
 
 
The acquisitions of Butagaz and Esso Retail France 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 year 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      
 Butagaz                                  £'000      £'000        £'000      
                                                                             
 Non-current assets (excluding goodwill)  301,336    110,021      411,357    
 Current assets                           82,873     (2,920)      79,953     
 Non-current liabilities                  (202,385)  (39,427)     (241,812)  
 Current liabilities                      (81,732)   (5,887)      (87,619)   
 Identifiable net assets acquired         100,092    61,787       161,879    
 Goodwill arising on acquisition          219,314    (61,787)     157,527    
 Total consideration                      319,406    -            319,406    
 
 
                                          Book      Fair value   Fair      
                                          value     adjustments  value     
 Esso Retail France                       £'000     £'000        £'000     
                                                                           
 Non-current assets (excluding goodwill)  80,343    14,801       95,144    
 Current assets                           21,430    (287)        21,143    
 Non-current liabilities                  (18,611)  (5,702)      (24,313)  
 Current liabilities                      (17,254)  -            (17,254)  
 Identifiable net assets acquired         65,908    8,812        74,720    
 Goodwill arising on acquisition          23,269    (8,812)      14,457    
 Total consideration                      89,177    -            89,177    
 
 
                                                        Book      Fair value   Fair      
                                                        value     adjustments  value     
 Others                                                 £'000     £'000        £'000     
                                                                                         
 Non-current assets (excluding goodwill)                6,443     16,572       23,015    
 Current assets                                         49,293    (146)        49,147    
 Non-current liabilities                                (788)     (4,201)      (4,989)   
 Current liabilities                                    (27,463)  (410)        (27,873)  
 Identifiable net assets acquired                       27,485    11,815       39,300    
 Non-controlling interest and related reserve movement  (18,808)  -            (18,808)  
 Goodwill arising on acquisition                        54,301    (11,815)     42,486    
 Total consideration                                    62,978    -            62,978    
 
 
                                                        Book       Fair value   Fair       
                                                        value      adjustments  value      
 Total                                                  £'000      £'000        £'000      
                                                                                           
 Non-current assets (excluding goodwill)                388,122    141,394      529,516    
 Current assets                                         153,596    (3,353)      150,243    
 Non-current liabilities                                (221,784)  (49,330)     (271,114)  
 Current liabilities                                    (126,449)  (6,297)      (132,746)  
 Identifiable net assets acquired                       193,485    82,414       275,899    
 Non-controlling interest and related reserve movement  (18,808)   -            (18,808)   
 Goodwill arising on acquisition                        296,884    (82,414)     214,470    
 Total consideration                                    471,561    -            471,561    
 
 
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 2017 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. 
 
£26.566 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 amounted to £7.478 million. 
 
No contingent liabilities were recognised on the acquisitions completed during the year or the prior financial years. 
 
The gross contractual value of trade and other receivables as at the respective dates of acquisition amounted to £100.127
million.  The fair value of these receivables is £97.904 million (all of which is expected to be recoverable) and is
inclusive of an aggregate allowance for impairment of £2.223 million. 
 
The fair value of contingent consideration recognised at the date of acquisition is calculated by discounting the expected
future payment to present value at the acquisition date.  In general, for contingent consideration to become payable,
pre-defined profit thresholds must be exceeded.  On an undiscounted basis, the future payments for which the Group may be
liable for acquisitions completed during the year range from nil to £4.325 million. 
 
There were no adjustments processed during the year to the fair value of business combinations completed during the year
ended 31 March 2015 where those fair values were not readily determinable as at 31 March 2015. 
 
The acquisitions during the year contributed £1,473.9 million to revenues and £49.0 million to profit after tax and
non-controlling interests.  Had all the business combinations effected during the year occurred at the beginning of the
year, total Group revenue for the year ended 31 March 2016 would have been £11,079.0 million and total Group profit after
tax would be £189.9 million. 
 
12.        Seasonality of Operations 
 
The Group's operations are significantly second-half weighted primarily due to a portion of the demand for DCC Energy's
products being weather dependent and seasonal buying patterns in DCC Technology. 
 
13.       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 2016 financial year. 
 
14.        Discontinued Operations 
 
The Group's discontinued operations for the year ended 31 March 2015 comprise the results of the Group's former DCC Food &
Beverage segment.  The conditions for the businesses disposed of to be classified as discontinued operations were fulfilled
in the second half of the year ended 31 March 2015.  The following table details the results of discontinued operations
included in the prior year comparatives of the Group Income Statement: 
 
                                                                                      2015     
                                                                                      £'000    
                                                                                               
 Revenue                                                                              143,360  
                                                                                               
 Operating profit before amortisation of intangible assets and exceptional items      6,483    
 Amortisation of intangible assets                                                    (1,288)  
 Operating profit before exceptional items                                            5,195    
 Net finance costs                                                                    (194)    
 Share of equity accounted investments' profit after tax                              87       
 Profit before exceptional items and tax                                              5,088    
 Exceptional items                                                                    2,865    
 Profit on disposal of discontinued operations                                        8,214    
 Profit before tax                                                                    16,167   
 Income tax expense                                                                   (404)    
 Profit from discontinued operations after tax                                        15,763   
 
 
Assets and liabilities classified as held for sale at 31 March 2015 comprise the fair value of the assets and liabilities
of Bottle Green Limited (the remaining subsidiary of the Group's former Food & Beverage division) which was sold on 28
April 2015. 
 
There were no discontinued operations in the year ended 31 March 2016. 
 
15.       Events after the Balance Sheet Date 
 
There have been no material events subsequent to 31 March 2016 which would require adjustment to or disclosure in this
report. 
 
16.       Board Approval 
 
This report was approved by the Board of Directors of DCC plc on 16 May 2016. 
 
This information is provided by RNS
The company news service from the London Stock Exchange