REG - DCC PLC - Results for the year ended 31 March 2025
Today 07:02
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250513:nRSM3463Ia&default-theme=true
RNS Number : 3463I DCC PLC 13 May 2025
13 May 2025
Preliminary statement of results for the year ended 31 March 2025
Significant strategic progress and continued Energy growth
· Total adjusted operating profit increased to £703.6 million, 4.9% ahead of
prior year on a constant currency basis. Growth driven by Energy, which
delivered 8.5% constant currency growth.
· Continued strong cash generation, with free cash flow conversion of 84%.
· Proposed increase of 5.0% in annual dividend, marking 31 consecutive years
of dividend growth.
· Strategic progress towards simplification of the Group to focus on Energy
with agreed disposal of DCC Healthcare at an enterprise value of £1.05
billion. Completion expected during the third quarter of this calendar year.
Today's Results webcast will include a market update on the Group's strategic
progress and highlight Our Opportunity in Energy.
· Intention to return £800 million of DCC Healthcare divestment proceeds to
shareholders, commencing shortly with £100 million share buyback programme.
· Continued focus in Energy on development and capital allocation during the
year. Profitable sale of a majority stake in lower-returning operations in
Hong Kong & Macau. Acquisition activity focused on building our energy
product and service business in Europe, in line with our Cleaner Energy in
Your Power strategy.
· DCC expects that the year ending 31 March 2026 will be a year of good
operating profit growth on a continuing basis, strategic progress and
continued development activity.
Donal Murphy, Chief Executive, commented:
"We are pleased to report that we delivered another year of good growth, while
making strategic progress to simplify the Group to focus on our opportunity in
Energy. Our sale of DCC Healthcare enables a material return of capital to
shareholders. We will focus our efforts on Energy, our largest and
highest-returning business. We are energised about the future."
Restated(1)
Financial Highlights 2025 2024 % change % change CC(2)
Adjusted operating profit(3):
DCC Energy £535.5m £503.0m +6.5% +8.5%
DCC Technology £82.0m £97.2m -15.7% -14.2%
Adjusted operating profit - continuing1 £617.5m £600.2m +2.9% +4.8%
Adjusted operating profit - discontinued1 £86.1m £82.6m +4.2% +5.5%
Total adjusted operating profit £703.6m £682.8m +3.0% +4.9%
Total adjusted earnings per share 470.2p 455.0p +3.3% +5.2%
Dividend per share 206.40p 196.57p +5.0%
Free cash flow3 £588.8m £681.1m
Return on capital employed3 - continuing1 15.3% 15.5%
(1) Refer to the Discontinued Operations note later in the document for
further details
(2) Constant currency ('CC') represents the retranslation of foreign
denominated current year results at prior year exchange rates
(3) Refer to Alternative Performance Measures in Supplementary Financial
Information for further details
Contact information
Investor enquiries:
Kevin Lucey, Chief Financial Officer Tel: +353 1 2799 400
Rossa White, Head of Group Investor Relations & Comms. Email: investorrelations@dcc.ie
Media enquiries:
Sodali & Co (Eavan Gannon/Pete Lambie) Tel: +44 20 7250 1446
Email: DCCGroup@sodali.com
Presentation of results and market update - audio webcast and conference call details
Group management will host a live audio webcast and conference call of the
presentation at 9.00am BST today. The access details are as follows:
Ireland: +353 (0) 1 691 7842
UK: +44 (0) 20 3936 2999
International: +44 (0) 20 3936 2999
Passcode: 763779
Webcast link:
https://www.investis-live.com/dcc/6801070e3d219d0015e5b2fd/rwbrt
(https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.investis-live.com%2Fdcc%2F6801070e3d219d0015e5b2fd%2Frwbrt&data=05%7C02%7Chdaly%40dcc.ie%7C3e3b05d7b62642701b0308dd8245e73a%7C5b7cb417ee004876ab2b81fab4a0c984%7C0%7C0%7C638809962203445948%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=CisQgoHf51wNP1IGK%2Fydw7ZaO4r6Mc4xUjxrOdPWkqM%3D&reserved=0)
This report, presentation slides and a recording of the webcast will be made
available at www.dcc.ie (http://www.dcc.ie) .
About DCC plc
Invested in Energy
DCC is a customer-focused energy business, specialising in the sales,
marketing, and distribution of secure, cleaner and competitive energy
solutions to commercial, industrial, domestic, and transport customers.
Headquartered in Dublin, DCC is listed on the London Stock Exchange and is a
constituent of the FTSE 100. In our financial year ended 31 March 2025, DCC
generated revenues of £18.0 billion and adjusted operating profit
of £617.5 million. DCC has an excellent record, delivering compound annual
growth of 13% in continuing adjusted operating profit and unbroken dividend
growth of 13% while maintaining high returns on capital employed over 31 years
as a public company.
Follow us on LinkedIn (https://www.linkedin.com/company/dcc-plc) .
www.dcc.ie (http://www.dcc.ie)
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.
Strategic PROGRESS update
November 2024 Strategy Update
In November 2024, DCC announced its plan to simplify the Group's operations and focus on the development of its energy business, the largest and highest returning division of the Group. Since then, DCC has made tangible progress in executing this strategy, including:
Sale of DCC Healthcare
In April 2025, DCC announced that it had entered into a definitive agreement for the sale of DCC Healthcare to HealthCo Investment Limited, an independently managed investment subsidiary of funds managed and/or advised by Investindustrial Advisors Limited. The proposed transaction values DCC Healthcare at a total enterprise value of £1,050 million on a cash-free, debt-free basis, with anticipated net cash proceeds of £945 million. The transaction is subject to receipt of customary regulatory approvals and is expected to complete in the third quarter of this calendar year. Further details on the transaction can be found in DCC's stock exchange announcement of 22 April 2025.
Intention regarding return of capital
DCC is today announcing that it intends to return capital of £800 million
from the sale of DCC Healthcare. The process will begin shortly with the
commencement of an on-market share buyback programme of £100 million.
Following the completion of the sale of DCC Healthcare, DCC will return a
further £600 million to shareholders in a form to be announced at the
completion of the sale. The final £100 million of proceeds will be returned
following receipt of the unconditional deferred consideration in approximately
two years.
Management and organisation
In April 2025, DCC announced changes to the DCC Leadership Team to align our
management structure with our strategy to focus on the Energy sector. Amongst
other management changes, DCC announced that Kevin Lucey, currently Chief
Financial Officer (CFO), will take up a new role as Chief Operating Officer,
in July 2025. Conor Murphy, currently CFO of DCC Energy, will become CFO of
DCC plc on the same date. Further details of the new DCC Leadership Team are
available on our website at www.dcc.ie (http://www.dcc.ie) .
Focus of DCC Technology
As part of the management reorganisation mentioned above, DCC has implemented
a focused management and organisation structure to manage and drive progress
in DCC Technology. Clive Fitzharris continues to lead the division. Clive has
reorganised the management team and appointed a new CEO for the North American
operations, charged with delivering the previously announced operational and
infrastructure change programme, while continuing to drive performance. Since
the announcement in November to focus on the Energy sector, DCC Technology has
exited some smaller loss-making operations and continues to focus on
operational and capital efficiency.
Group & DIVISIONAL PERFORMANCE Review
A summary of the Group's results for the year ended 31 March 2025 is as
follows:
Restated(1)
2025 2024
Continuing operations1 £'m £'m % change
Revenue 18,011 18,854 -4.5%
Adjusted operating profit2
DCC Energy 535.5 503.0 +6.5%
DCC Technology 82.0 97.2 -15.7%
Group adjusted operating profit2 617.5 600.2 +2.9%
Finance costs (net) and other (101.1) (102.4)
Profit before net exceptionals, amortisation of intangible assets and tax 516.4 497.8 +3.7%
Net exceptional charge before tax and non-controlling interests (40.1) (35.1)
Amortisation and impairment of intangible assets (181.4) (103.5)
Profit before tax 294.9 359.2 -17.9%
Taxation (72.0) (71.7)
Profit after tax - continuing operations1 222.9 287.5
(Loss)/profit after tax - discontinued operations(1) (1.7) 53.0
Total profit after tax 221.2 340.5
Non-controlling interests (14.7) (14.2)
Attributable profit 206.5 326.3
Adjusted earnings per share(2) - continuing(1) 402.3p 390.2p +3.1%
Total adjusted earnings per share(2) 470.2p 455.0p +3.3%
Dividend per share 206.40p 196.57p +5.0%
Operating cash flow 769.4 913.0
Free cash flow(2) 588.8 681.1
Net debt at 31 March (excl. lease creditors) (795.9) (784.7)
Lease creditors (356.2) (362.4)
Net debt at 31 March (incl. lease creditors) (1,152.1) (1,147.1)
Total equity at 31 March 3,168.3 3,183.0
Return on capital employed (excl. IFRS 16) - continuing(1) 15.3% 15.5%
Return on capital employed (incl. IFRS 16) - continuing(1) 14.4% 14.5%
(1) Refer to the Discontinued Operations note later in the document for
further details
(2) Refer to Alternative Performance Measures in Supplementary Financial
Information for further details
Income Statement Review
Group revenue - continuing operations
Group revenue decreased by 4.5% (2.7% on a constant currency basis) to £18.0
billion, due to lower revenue in DCC Energy where average commodity prices
were lower.
DCC Energy sold 15.2 billion litres of product, in line with the prior year
(+0.1%). Volumes in Solutions increased by 2.3%, despite the headwind of mild
weather conditions. This was offset by a decline in Mobility volumes of 5.1%.
This reduction was largely driven by an anticipated reduction in volumes in
Denmark, where a lower margin contract for 56 sites expired. Revenue in DCC
Energy was £13.4 billion, a decrease of 6.0% (4.1% on a constant currency
basis). With volumes flat on the prior year, the decrease in revenue was due
to the lower wholesale cost of energy commodities during the year. Services
revenue in DCC Energy increased by 96.9% to £336.4 million, reflecting
acquisition activity and strong organic growth in France.
Revenue in DCC Technology was £4.6 billion, an increase of 0.3% (1.7% on a
constant currency basis) mainly driven by revenue growth in Pro Tech. This
offset revenue decline in Info Tech where demand for consumer technology
products was weak.
Group adjusted operating profit - continuing operations
Group adjusted operating profit increased by 2.9% (4.8% on a constant currency
basis) to £617.5 million. Strong growth in DCC Energy was partly offset by a
more difficult trading environment in DCC Technology. Organically, profits
increased by 1.8% in DCC Energy and declined by 15.8% in DCC Technology. The
impact of foreign exchange (FX) translation, M&A growth and organic growth
on continuing Group adjusted operating profit in both DCC Energy and DCC
Technology was as follows:
2025 FX translation M&A Organic Total growth
DCC Energy -2.0% +6.7% +1.8% +6.5%
DCC Technology -1.6% +1.7% -15.8% -15.7%
Total -1.9% +5.9% -1.1% +2.9%
The net impact of currency translation in the current year was a headwind of
1.9%, or £11.7 million, in the growth in continuing adjusted operating
profit. The headwind was 2.0% in DCC Energy and 1.6% in DCC Technology. This
reflects average sterling exchange rates strengthening against most of the
Group's reporting currencies during the year.
Acquisitions completed in the current and prior year contributed 5.9% of the
continuing operating profit growth. The material contribution came in DCC
Energy from the prior year acquisition of Progas and the current year
acquisition of Next Energy, offset somewhat by the disposal of our liquid gas
business in Hong Kong & Macau.
Further commentary on the trading performances in the divisions is detailed
below.
Discontinued operations
As announced on 22 April 2025, the Group entered into a definitive agreement
to dispose of the Healthcare division. The disposal is expected to complete in
the third quarter of this calendar year. In addition, having decided earlier
in the year to exit or close the loss-making Exertis France consumer product
business and Exertis Iberia, DCC Technology signed an exclusivity agreement
for their sale in April 2025. The transaction is expected to close within
three months, subject to regulatory approvals.
The conditions for the Healthcare division and Exertis France & Iberia to
be classified as discontinued operations have been satisfied, and,
accordingly, the results of these businesses are presented separately as
discontinued operations in the Group Income Statement and the associated
assets and liabilities are classified as assets held for sale at the balance
sheet date. The prior year comparatives have been restated accordingly.
Performance Review
DCC Energy 2025 2024 % change % change CC
Volumes (billion litre equivalent)1 15.2bn 15.2bn +0.1%
Gross profit £1.850bn £1.757bn +5.3% +7.4%
Operating profit £535.5m £503.0m +6.5% +8.5%
Organic growth 1.8% 5.9%
Return on capital employed excl. IFRS 16 18.5% 18.7%
CO2e/Operating profit -8.5% -12.1%
· DCC Energy recorded operating profit growth of 6.5% (8.5% on a constant
currency basis) to £535.5 million. Organic growth in the year was 1.8%, which
was modestly ahead of expectations given the very strong organic growth in the
prior year.
· The organic growth was driven by our Mobility business, where almost all
the constant currency growth of 5.4% was organic. Growth in our Solutions
business was driven by M&A activity (net of Hong Kong disposal) completed
in the prior year and acquisitions in the current year. We also had excellent
organic growth in France in both energy products and energy services (we are
longest established in energy services in France).
· In delivering our Cleaner Energy in Your Power strategy, the carbon
intensity of our profits continued to improve and reduced by 8.5%.
· Capital allocation continued to support execution of strategy during the
year. We sold a majority stake in our lower returning business in Hong Kong
& Macau and committed approximately £100 million to seven new
acquisitions during the period, which add to our energy services across both
Solutions and Mobility.
(1) Billion litres equivalent provides a standard metric for the different
products and solutions that DCC Energy sells. Metric tonnes and kilowatts of
power are converted to litres.
Solutions 2025 2024 % change % change CC
Volumes (billion litre equivalent) 10.9bn 10.7bn +2.3%
Gross profit £1.468bn £1.381bn +6.3% +8.3%
Operating profit £411.8m £383.4m +7.4% +9.5%
Organic growth +0.7% +8.3%
Our Solutions business delivered strong growth in the current year. Operating
profit increased by 7.4% (9.5% on a constant currency basis) to £411.8
million. The growth was mostly driven by acquisitions completed in the current
and prior year, with organic growth of 0.7%. Volumes increased by 2.3%, driven
by the performance of the businesses in Continental Europe and the UK &
Ireland.
We operate our Solutions business (77% of DCC Energy operating profit), across
four geographic regions: Continental Europe, the UK & Ireland, the Nordics
and the US. We provide customers with solutions across both energy products
(68% of DCC Energy operating profit) and energy services (9% of DCC Energy
operating profit). Our energy services are most mature and material in
Continental Europe and the UK & Ireland.
We delivered excellent profit growth in Continental Europe, the largest
region in our Solutions business. In energy products, we achieved strong
growth in Germany, where we benefited from the full year contribution of
Progas, acquired in March 2024. We continue to integrate the acquired
operations with our existing German liquid gas business. In France, we
generated very strong organic growth. The business continued to deliver market
share growth (particularly in liquid gas cylinders) and recorded an excellent
performance in natural gas sales to commercial customers.
Across our energy services in Continental Europe, we also delivered excellent
growth, with profitability more than doubling. This reflected very strong
organic growth, particularly in France where the business is now long
established and operates primarily under the 'Wewise' brand. It also reflected
very strong acquisitive growth, driven in particular by the acquisitions in
France of Coprodiag, Acteam and MG Habitat. The acquisitions have been
integrated into our existing business, further strengthening our energy
services and geographic footprint in France, where we are a market leader in
solar and related service offerings. In Germany we acquired Wirsol and, while
the market conditions in Germany were weaker than France, we have integrated
the business into the Group and delivered good profitability in line with
expectations since acquisition.
Our Solutions business in the UK & Ireland delivered strong profit
growth. In the UK & Ireland we offer multi-energy solutions across both
products and services. In energy products, the business generated good volume
growth in a competitive market. The volume growth was driven by our natural
gas and power business in Ireland where we exceeded 250,000 customers for the
first time. Volumes in the UK were robust, although there was some impact
from a more difficult UK economy. In liquid gas, our business benefited from
significant improvements in the resilience of the supply chain due to the
recent investments in both our Avonmouth and Teesside liquid gas facilities.
This additional resilience delivered improved customer service, particularly
during the winter peak. We developed our energy services over the course of
the last year. Despite the challenging economic backdrop profits in energy
services increased significantly, in particular due to the completion of the
acquisition of Next Energy. In the UK & Ireland, we now provide a broad
range of services to customers with less intensive energy needs and focused on
energy efficiency.
In the Nordic region, where our business is primarily involved in the sale
of energy products, profits declined modestly following a very strong
performance in the prior year. In liquid gas, volumes declined as natural gas
pricing normalised. A small number of industrial customers who use both liquid
gas and natural gas reverted to using natural gas, having used more liquid gas
than typical in recent times. Across fuels categories, the business achieved
volume growth. Profit growth was held back by a more competitive market, in
particular in the aviation sector. This resulted in lower margins, impacting
overall profit growth in the region.
In the US we are focused on selling energy products, predominantly liquid
gas, to residential and commercial customers. As reported at the half year,
our business experienced a difficult first half. This was due to customers
having higher stock levels from mild weather in the second half of the prior
year, which impacted demand in this financial year. Milder than average
temperatures continued to impact the business and trading remained difficult
up to the third quarter. As a result, profits declined for the year. However,
the business saw demand improve during the Christmas period as more seasonal
weather returned and recorded a better final quarter. Margins remained robust
through the winter. We continue to invest in the development of our business,
which remains a focus for growth.
Mobility 2025 2024 % change % change CC
Volumes (billion litre equivalent) 4.3bn 4.5bn -5.1%
Gross profit £382.3m £375.4m +1.8% +4.0%
Operating profit £123.7m £119.6m +3.5% +5.4%
Organic growth +5.2% -0.7%
Our Mobility business (23% of DCC Energy operating profit), performed well
during the year and delivered operating profit growth of 3.5% (5.4% on a
constant currency basis). The good constant currency growth achieved was
almost entirely organic. After a more difficult performance in the prior year,
particularly in France where the business was impacted by competitive
headwinds, the business delivered good growth in each region in the current
year. We delivered good growth in both fuel and non-fuel profitability.
The volume decline of 5.1% was largely driven by the cessation of a lower
margin contract in Denmark, which impacted 56 sites, but without a notable
profitability impact. Volumes recovered well in France, following the
disruption experienced in the market in the prior year.
In France and Luxembourg, the business delivered good volume and strong profit
growth as we continued to develop our on-site offering, including further
development of our EV charging capability. In the Nordic region our strong
growth was driven by continued strong progress in Norway and good profit
growth in Denmark, notwithstanding the contract volume decline mentioned
above. We also agreed to acquire the Esso fuelcard operations in Norway which
both secures fuelcard volume through our existing network and adds to our
energy services in targeting new fleet customers into the future. The
acquisition is expected to complete during 2025.
Across our fleet service offering we generated very good growth and continued
to develop our non-fuel service offering during the year. We delivered very
strong growth in fuel cards and benefited from the modest acquisition of Cubo,
which adds to our service offering for fleet services customers in telematics.
In addition, we delivered good growth in our SNAP digital fleet services
business.
DCC Technology - continuing1 Restated(1)
2025 2024 % change % change CC
Revenue £4.645bn £4.629bn +0.3% +1.7%
Gross profit £548.3m £584.1m -6.1% -4.7%
Operating profit £82.0m £97.2m -15.7% -14.2%
Operating margin 1.8% 2.1%
Organic growth -15.8% -7.0%
Return on capital employed excl. IFRS 16 7.2% 8.3%
· DCC Technology recorded operating profit of £82.0 million, a decline of
15.7% (14.2% constant currency). Our business was affected primarily by
continued soft demand for consumer technology products in our Info Tech
operations, particularly in the UK and Continental Europe. Divisional revenue
increased by 0.3% (1.7% constant currency), mainly driven by revenue growth in
Pro Tech. This offset revenue decline in Info Tech where demand for consumer
technology products was weak, notably in Continental Europe.
· In North America, our Pro Tech business performed robustly. We gained
market share through a strong performance in the specialist AV product
segment, and through a modest bolt-on acquisition during the year. In Life
Tech, we faced similar challenges to the market conditions in Europe. Profit
declined as a result of weak consumer demand.
· We progressed our integration and operational efficiency programme in
North America where we anticipate improvement in profitability and returns
over the next 18 months. Our main focus is to integrate our two businesses to
drive higher profitability by reducing freight and transport costs, improve
warehouse efficiency and increase revenue through digital development and
improved customer experience. We continued our operational improvement
programme in our Info Tech business in the UK. The programme delivered cost
reductions and enhanced revenue growth potential for the medium-term.
(1) Refer to the Discontinued Operations note earlier in the document for
further details
Business areas
In Pro Tech, DCC Technology is the leading specialist distributor of AV
products globally, centred on our business in North America. We grew operating
profit and gained market share in the specialist AV segment in North America.
During the period we acquired MDM Commercial Inc, a bolt-on acquisition which
broadens our professional AV capabilities in North America. Operating profit
declined in our smaller European Pro Tech business, as market conditions
remained soft in France and Germany.
Our Info Tech business distributes high-volume consumer and business IT
products to the retail and reseller channels in Europe. Our largest markets
are in the UK and Ireland. Consumer demand continued to remain soft in line
with trends over the prior years. We delivered cost improvements in the UK
business, while the business in Ireland performed well. Operating profit
declined in our other Info Tech businesses in Continental Europe, reflecting
the weak consumer demand environment. We exited our Info Tech operations in
France, the Middle East and a small division of our Nordics business.
In Life Tech we distribute consumer appliances and lifestyle technology
products to the retail and etail channels in North America. The business was
affected by overstocking in certain market segments and operating profit
declined due to lower demand for consumer electronics and musical products.
DCC Healthcare - discontinued 2025 2024 % change % change CC
Revenue £849.4m £859.4m -1.2% +0.2%
Operating profit £86.1m £88.1m -2.3% -1.1%
DCC Healthcare delivered operating profit of £86.1 million, modestly behind
the prior year on a constant currency basis. Consistent with the performance
in the first half of the year, the divisional performance was held back by the
UK Primary Care business, which faced challenges from NHS funding
restrictions, and specific customer demand headwinds in the US Health &
Beauty Innovations ("HBI") business. Given the strong growth in the rest of
the HBI business, the overall HBI performance was in line with prior year.
Divisional revenue was £849.4 million, 1.2% behind prior year (+0.2% ahead
constant currency). Revenue in DCC Vital was 2.0% ahead of prior year. In HBI,
the UK business delivered strong revenue growth, offset by a decline in the US
business.
Finance costs (net) and other
Net finance costs and other, which includes the Group's net financing costs,
lease interest and the share of profit/loss of associated businesses,
decreased modestly to £101.1 million (2024: £102.4 million). At 31 March
2025 approximately 75% of the Group's gross debt is at fixed rates (2024:
60%).
Average net debt, excluding lease creditors, was £1.3 billion, compared to an
average net debt of £1.2 billion in the prior year. Interest was covered 9.3
times(1) by Group adjusted operating profit before depreciation and
amortisation of intangible assets (2024: 8.9 times).
(1) Using the definitions contained in the Group's lending agreements
Net exceptional charge (including impairments)
The Group incurred a net exceptional charge after tax of £166.7 million
(2024: net exceptional charge of £33.3 million) as follows:
£'m
Restructuring and integration costs and other (37.0)
Acquisition and related costs (9.1)
Profit on disposal of subsidiary undertaking 3.3
Adjustments to contingent acquisition consideration 3.0
IAS 39 mark-to-market charge (0.3)
(40.1)
Impairment of goodwill (73.9)
Net exceptional items before tax - continuing (114.0)
Tax attaching to exceptional items 8.2
Net exceptional items after tax - continuing (105.8)
Net exceptional items after tax - discontinued (60.9)
Net exceptional charge (166.7)
Restructuring and integration costs and other of £37.0 million mainly relates
to the restructuring of operations across a number of businesses and recent
acquisitions. The majority of the cost relates to the optimisation and
integration of operations in the Technology division in respect of large
projects in both the UK and the North American businesses.
Acquisition and related costs include the professional fees and tax costs
relating to the evaluation and completion of acquisition opportunities and
amounted to £9.1 million.
During the year DCC Energy completed the sale of a majority stake in its
liquid gas business in Hong Kong & Macau to an industrial group already
operating in Hong Kong. The transaction valued DCC's business at an initial
enterprise value of c.US$150 million (c.£117 million), on a debt-free,
cash-free basis. With the two businesses being merged post completion, DCC has
retained a minority stake in the combined business. The transaction resulted
in a modest profit on disposal of £3.3 million.
Adjustments to contingent acquisition consideration of £3.0 million reflects
movements in provisions associated with the expected earn-out or other
deferred arrangements that arise through the Group's corporate development
activity.
The level of ineffectiveness calculated under IAS 39 on the hedging
instruments related to the Group's US private placement debt is charged or
credited as an exceptional item. In the year ended 31 March 2025, this
amounted to an exceptional non-cash charge of £0.3 million. The cumulative
net exceptional credit taken in respect of IAS 39 ineffectiveness is £0.2
million. This, or any subsequent similar non-cash charges or gains, will net
to zero over the remaining term of this debt and the related hedging
instruments.
A non-cash goodwill impairment has been recognised in respect of the UK
component of DCC Technology's Info Tech segment. While trading in the business
has improved in recent years, the recovery to historic levels has taken longer
than anticipated. Given the longer recovery trajectory and market conditions
showing little signs of improving in the UK, a non-cash impairment of £73.9
million was recognised.
The charge for net exceptional items on discontinued operations primarily
relates to the Exertis France consumer product business and Exertis Iberia
within the Info Tech segment of DCC Technology. In April 2025 the Group agreed
to sell this business and the proceeds on disposal are expected to give rise
to a non-cash impairment loss of approximately £52.2 million which has been
recognised in the current year. The balance of £8.7 million relates to
restructuring and costs of disposal for discontinued operations.
Amortisation and impairment of intangible assets
The charge for the amortisation and impairment of acquisition-related
intangible assets increased to £181.4 million from £103.5 million in the
prior year. £73.9 million of the increase relates to a non-cash impairment of
goodwill in DCC Technology's Info Tech segment described above. The balance of
£107.5 million relates to amortisation of intangible assets, with the
increase on the prior year reflecting acquisitions completed in the prior and
current year.
Taxation
The effective tax rate for the Group increased as expected to 20.3% (2024:
19.7%). The Group's effective tax rate is influenced by the geographical mix
of profits arising in any year and the tax rates attributable to the
individual jurisdictions.
Adjusted earnings per share - continuing
Adjusted earnings per share increased by 3.1% (+5.0% on a constant currency
basis) to 402.3 pence, broadly in line with the operating profit growth.
Dividend
The Board is proposing a 5.0% increase in the final dividend to 140.21 pence
per share, which, when added to the interim dividend of 66.19 pence per share,
gives a total dividend for the year of 206.40 pence per share. This represents
a 5.0% increase over the total prior year dividend of 196.57 pence per share.
The dividend is covered 2.3 times by adjusted earnings per share (2024: 2.3
times). It is proposed to pay the final dividend on 17 July 2025 to
shareholders on the register at the close of business on 23 May 2025.
Over its 31 years as a listed company, DCC has an unbroken record of dividend
growth at a compound annual rate of 12.9%.
Cash Flow, CAPITAL DEPLOYMENT & RETURNS AND CAPITAL EMPLOYED ("RocE")
Cash flow
The Group generated strong operating and free cash flow during the year as set
out below:
Year ended 31 March 2025 2024
£'m £'m
Group operating profit 703.6 682.8
(Increase)/decrease in working capital (93.7) 56.6
Depreciation (excluding ROU leased assets) and other 159.5 173.6
Operating cash flow (pre add-back for depreciation on ROU leased assets) 769.4 913.0
Capital expenditure (net) (169.1) (221.0)
600.3 692.0
Depreciation on ROU leased assets 87.4 82.8
Repayment of lease creditors (98.9) (93.7)
Free cash flow 588.8 681.1
Interest and tax paid, net of dividend from equity accounted investments (194.0) (214.8)
Free cash flow (after interest and tax) 394.8 466.3
Acquisitions (242.5) (338.5)
Disposal of subsidiary 61.4 -
Dividends (206.7) (189.1)
Exceptional items (55.8) (13.3)
Share issues - 0.2
Net outflow (48.8) (74.4)
Opening net debt (1,147.1) (1,113.9)
Translation and other 43.8 41.2
Closing net debt (including lease creditors) (1,152.1) (1,147.1)
Analysis of closing net debt (including lease creditors):
Net debt at 31 March (excluding lease creditors) (795.9) (784.7)
Lease creditors at 31 March (356.2) (362.4)
(1,152.1) (1,147.1)
Free cash flow generation and conversion
The Group's free cash flow amounted to £588.8 million versus £681.1 million
in the prior year, representing an 84% conversion of adjusted operating profit
into free cash flow. This strong result, when taken with the excellent 100%
conversion in the prior year, reflects conversion of 92% cumulatively across
both periods.
The material components of the conversion of adjusted operating profit to free
cash flow are set out below.
Working capital
As anticipated, working capital increased relative to the prior year.
Following a very strong working capital performance in the prior year, working
capital increased by £93.7 million (2024: £56.6 million decrease). The
outflow was predominantly driven by higher working capital requirements in DCC
Energy, where the lower oil price had a negative impact on the absolute value
of working capital, given the negative working capital operating model across
our product sales in both Mobility and Solutions. Working capital also
increased in DCC Technology, where the relatively weak market over Christmas
and the holiday gifting season for consumer products impacted retailer demand
and resulted in the seasonal unwind of working capital taking longer than
typical to realise.
The absolute value of working capital in the Group at 31 March 2025 was
£313.5 million. Overall working capital days were 5.7 days sales, compared to
4.0 days sales in the prior year.
DCC Technology selectively uses supply chain financing solutions to sell, on a
non-recourse basis, a portion of its receivables relating to certain higher
volume supply chain/sales and marketing activities in our UK Info Tech
business. The level of supply chain financing at 31 March 2025 increased
modestly to £156.0 million (2024: £145.4 million), reflecting a more
efficient use of the facility. Supply chain financing had a positive impact on
Group working capital days of 2.8 days (31 March 2024: 2.5 days).
Net capital expenditure
Net capital expenditure amounted to £169.1 million for the year (2024:
£221.0 million) and was net of disposal proceeds (£44.8 million) and
government grants received (£0.3 million). The level of net capital
expenditure reflects continued investment in organic initiatives across the
Energy business, supporting its continued growth and development. Net capital
expenditure for the Group exceeded the depreciation charge of £166.5 million
(excluding right-of-use leased assets) in the period by £2.6 million.
2025 2024
£'m £'m
DCC Energy 159.5 177.6
DCC Technology (11.9) 8.8
Net capital expenditure - continuing 147.6 186.4
Net capital expenditure - discontinued 21.5 34.6
Total 169.1 221.0
Capital expenditure in DCC Energy primarily comprised expenditure on tanks,
cylinders and installations within Solutions with a continued focus on
supporting new and existing liquid gas customers. In Mobility, there was
continued investment to maintain our retail sites in the Nordics and France
and upgrades across the business, including adding further lower emission
product capability, electric vehicle fast charging and related forecourt
services. In DCC Technology, capital expenditure focused on continued
enterprise resource planning investment in North America and Europe and was
net of the sale of a premises in North America as part of the ongoing
optimisation of our operational infrastructure. DCC Technology will continue
to focus on optimising the capital base of the business in the coming year.
Total cash spend on acquisitions for the year ended 31 March 2025
The total cash spend on acquisitions in the year was £242.5 million,
including deferred and contingent acquisition consideration previously
provided of £75.2 million. The remaining spend of £167.3 million. primarily
reflects acquisitions committed to and completed during the current year, and
includes the completion of the acquisition of Next Energy, Secundo
Photovoltaik and Copropriétés Diagnostic in DCC Energy which were announced
in the prior year Results Announcement in May 2024.
Committed acquisitions - continuing
DCC has committed £115.3 million to new acquisitions since the prior year
Results Announcement.
2025 2024
£'m £'m
DCC Energy 101.6 485.8
DCC Technology 13.7 3.8
Total 115.3 489.6
DCC continues to be active from a development perspective, committing
approximately £115 million to eight new acquisitions during the period.
Recent acquisition activity of the Group includes:
DCC Energy
DCC Energy has committed approximately £100 million to seven new acquisitions which support its Cleaner Energy in Your Power strategy. In addition to some small bolt-on acquisitions, DCC Energy has acquired:
· In July 2024, DCC Energy completed the acquisition of WIRSOL Roof Solutions
("Wirsol") in Germany. Wirsol has been providing high quality solar
photovoltaic (PV) and battery storage solutions for more than 20 years. Based
in Waghäusel, Germany, the business employs 120 people and has planned and
installed over 16,000 solar systems for commercial and private customers
throughout Germany. Following the recent acquisition of Progas in the liquid
gas market, Wirsol provides a platform to now develop our Energy Services
offering in the German energy market-the largest in Europe.
· In July 2024, DCC Energy completed the acquisition of Cubo, a fleet
telematics business providing integrated telematics and communication
solutions in the UK & Ireland. The complementary acquisition provides
additional digital solutions to our fleet service customers.
· DCC Energy acquired Acteam ENR ("Acteam") in September 2024, a French solar
PV business based in Toulouse. Acteam provides project development,
engineering, project management along with construction support and
supervision services for commercial solar PV projects. The acquisition is
geographically complementary to our Wewise French business and will enable us
to develop our energy management services capability in the south of France.
· In November 2024, DCC Energy completed the acquisition of MG Habitat, a
French energy services business providing design, installation and maintenance
services for solar photovoltaic, heat-pumps and other energy installations.
· In November 2024, DCC Energy agreed to acquire Wex Europe Services AS, the
Norwegian branch of Wex Europe Services. Wex Europe Services AS services
both fleet and truck commercial customers in the Norwegian market with the
Esso branded fuel card and is a complimentary business to our existing service
station portfolio in Norway. The acquisition is expected to complete in the
third quarter of this calendar year.
DCC Technology
DCC Technology completed the acquisition of MDM Commercial Inc, a distributor of hospitality and healthcare professional AV equipment in the US. The business is headquartered in Jacksonville, Florida with 40 employees.
Disposals
Liquid gas business in Hong Kong & Macau
In July 2024, DCC Energy completed the profitable sale of a majority stake in its liquid gas business in Hong Kong & Macau to CITADEL Pacific Ltd, an Asian industrial group with an existing and complementary business in the region. The transaction valued DCC's business at an initial enterprise value of c.US$150 million (c.£117 million), on a debt-free, cash-free basis and DCC retained a minority stake in the combined business. The business represented DCC's only energy operation in Asia. Further details on the transaction can be found in DCC's stock exchange announcement of 11 July 2024.
Strategic update: Focus on Energy
Earlier this year we announced our intention to simplify DCC, maximise
shareholder value and accelerate the growth of our energy business, the
Group's largest and highest-returning division. That evolution is under way,
and we have made the following divestments in line with our strategy:
DCC Healthcare
In April 2025, DCC announced that we had entered into a definitive agreement for the sale of DCC Healthcare to HealthCo Investment Limited, an independently managed investment subsidiary of funds managed and/or advised by Investindustrial Advisors Limited. The proposed transaction values DCC Healthcare at a total enterprise value of £1,050 million on a cash-free, debt-free basis. The transaction is subject to receipt of customary regulatory approvals and is expected to complete in the third quarter of this calendar year. Further details on the transaction can be found in our stock exchange announcement of 22 April 2025.
Exertis France
Having made the decision to exit the Info Tech market in France during the year, in April 2025, DCC Technology signed an exclusivity agreement with We.Connect for the sale of its unprofitable consumer products operations in France and Iberia for a modest consideration. We.Connect is a respected B2B distributor in France, founded in 2003 and listed on Euronext Growth. The transaction is expected to close within three months, subject to regulatory approvals.
Return on capital employed - continuing
The creation of shareholder value through the delivery of consistent,
sustainable long-term returns well in excess of its cost of capital is one of
DCC's core strategic aims. The return on capital employed by division was as
follows:
Restated(1) Restated(1)
2025 2024 2025 2024
excl. IFRS 16 excl. IFRS 16 incl. IFRS 16 incl. IFRS 16
DCC Energy 18.5% 18.7% 17.3% 17.4%
DCC Technology 7.2% 8.3% 6.8% 7.8%
Group 15.3% 15.5% 14.4% 14.5%
The Group continued to generate strong returns on capital employed,
notwithstanding the substantial increase in the scale of its Energy business
in recent years. The modest decrease in return on capital employed in DCC
Energy reflects the timing of the disposal of the business in Hong Kong &
Macau which occurred early in the current year. Excluding the impact of the
sale of this business, returns in DCC Energy were in line with the prior year.
The Group's returns also reflect the organic decline in operating profit in
DCC Technology. We remain very focused on both reducing the capital in DCC
Technology and driving operational improvements which we expect will see
returns recover in the coming years.
(1) Refer to the Discontinued Operations note earlier in the document for
further details
Financial strength
DCC has always maintained a strong balance sheet and it remains an important
enabler of the Group's strategy. A strong balance sheet provides many
strategic and commercial benefits, including enabling DCC to take advantage of
acquisitive or organic development opportunities as they arise. At 31 March
2025, the Group had net debt (including lease creditors) of £1.2 billion, net
debt (excluding lease creditors) of £795.9 million, cash resources (net of
overdrafts) of £1.1 billion and total equity of £3.2 billion.
Historically, the Group raised its term debt in the US private placement
market. During the year, the Group became an issuer for the first time in the
public debt markets. The Group's term debt has an average maturity of 4.8
years. The Group repaid £263 million of private placement debt in May 2024
along with a further £25.5 million in September 2024 and £72.0 million in
April 2025.
DCC has taken a pro-active approach to the credit markets since going public.
The Group has been active in the US private placement debt market since 1996
and has built up a robust and well diversified funding portfolio, with a
balanced maturity profile. DCC's long term banking partners, investors and
suppliers have always appreciated the strong credit quality of the Company. In
November 2023 S&P Global Ratings issued a BBB rating and Fitch issued a
BBB rating for DCC in the first public credit rating opinions of the Company.
In June 2024 DCC established a Euro Medium Term Note (EMTN) programme and
issued its inaugural public market debt instrument, a benchmark €500 million
seven-year senior unsecured bond. The bond refinanced maturing private
placement debt.
Sustainability
DCC's ambition remains to enable the growth and progress of all our
stakeholders, across our four sustainability pillars: Climate Change and
Energy Transition, Health and Safety, People and Social, and Governance and
Compliance.
The vast majority of the Group's Scope 3 carbon emissions derive from DCC's
sales of energy products to customers. During the year, DCC set a scope 3
target to reduce emissions by 35% by 2030 against a FY22 baseline. In the
year, DCC Energy reduced these emissions by 2.6%, equating to a reduction of 1
million tons of CO(2)e, and cumulatively 11% against the FY22 baseline. DCC
lowered its Scope 1 and 2 emissions by 4.4% and cumulatively by 48% versus the
2019 baseline, which is just under our target to reduce emissions by 50% by
2030.
Related to Scope 3, DCC Energy increased the renewable content of energy
products supplied to customers (in Gigajoules (GJ)) to 7.2%, up from 6.7% in
2024. Due to growth in operating profit and the 2.6% reduction in Scope 3
carbon emissions, the carbon intensity of DCC Energy's operating profit
reduced by 8.5%. During the year DCC continued to invest strongly in energy
services businesses in order to support our customers with energy transition.
We committed £96m during the year, building on the £346m committed last
year.
The Group retained its B rating with CDP reflecting its progress on emissions
reduction and delivering on DCC's strategy. DCC also retained an AAA rating
from MSCI, remaining among the top 10% of peer companies.
DCC has invested significantly in sustainability reporting and the associated
control framework to deliver against regulatory and wider stakeholder
requirements. A number of key projects and assessments were completed
including a double materiality assessment, biodiversity assessment of own
operations, climate physical and transition risk assessments, and the rollout
of new Group systems for Health and Safety and Learning Management.
Selected Sustainability Performance Metrics 2030 Target 2025 2024 % change % change
vs. baseline
Scope 1 & 2 (market based) 50% reduction 65 68 -4.4% -48%
(ktCO(2)e, Group, 2019 baseline)
Customer Scope 3 carbon emissions(1) 35% reduction 37.9 38.9 -2.6% -11%
(mtCO(2)e, DCC Energy, 2022 baseline)
Biogenic content of energy sold (GJ) 7.2% 6.7%
Health & Safety - Lost time Incident frequency rate LTIFR <1 0.78 0.89
(LTIFR per 100k hours worked)
(1) Scope 3 emissions for 2025 include the latest updates to the GHG Protocol
and other emissions factors. The prior year comparatives have been restated
accordingly.
Annual General Meeting
The Company's Annual General Meeting will be held at 2.00pm on Thursday 10
July 2025 at The Clayton Hotel Leopardstown, Central Park, Sandyford Business
Park, Co. Dublin, D18 K2P1.
Group Income Statement
For the year ended 31 March 2025
Restated*
2025 2024
Pre Exceptionals Pre Exceptionals
exceptionals (note 5) Total exceptionals (note 5) Total
Note £'000 £'000 £'000 £'000 £'000 £'000
Revenue 4 18,011,111 - 18,011,111 18,854,051 - 18,854,051
Cost of sales (15,612,712) - (15,612,712) (16,513,269) - (16,513,269)
Gross profit 2,398,399 - 2,398,399 2,340,782 - 2,340,782
Administration expenses (668,475) - (668,475) (584,106) - (584,106)
Selling and distribution expenses (1,160,554) - (1,160,554) (1,184,875) - (1,184,875)
Other operating income/(expenses) 48,152 (39,824) 8,328 28,391 (34,222) (5,831)
Adjusted operating profit 617,522 (39,824) 577,698 600,192 (34,222) 565,970
Intangible asset amortisation and impairment
(107,527) (73,835) (181,362) (103,525) - (103,525)
Operating profit 4 509,995 (113,659) 396,336 496,667 (34,222) 462,445
Finance costs (118,791) (340) (119,131) (119,342) (873) (120,215)
Finance income 14,270 - 14,270 16,379 - 16,379
Share of equity accounted investments' profit after tax
3,392 - 3,392 604 - 604
Profit before tax 408,866 (113,999) 294,867 394,308 (35,095) 359,213
Income tax expense (80,189) 8,240 (71,949) (76,225) 4,558 (71,667)
Profit for the year from continuing operations
328,677 (105,759) 222,918 318,083 (30,537) 287,546
Profit for the year from discontinued operations
59,264 (60,961) (1,697) 56,219 (3,227) 52,992
Profit after tax for the financial year
387,941 (166,720) 221,221 374,302 (33,764) 340,538
Profit attributable to:
Owners of the Parent 373,210 (166,720) 206,490 359,570 (33,315) 326,255
Non-controlling interests 14,731 - 14,731 14,732 (449) 14,283
387,941 (166,720) 221,221 374,302 (33,764) 340,538
Earnings per ordinary share
Basic earnings per share 6 208.78p 330.24p
Diluted earnings per share 6 208.44p 329.85p
Basic adjusted earnings per share 6 470.20p 455.01p
Diluted adjusted earnings per share 6 469.44p 454.49p
Earnings per ordinary share - continuing operations
Basic earnings per share 6 210.82p 276.94p
Diluted earnings per share 6 210.48p 276.61p
Basic adjusted earnings per share 6 402.25p 390.18p
Diluted adjusted earnings per share 6 401.60p 389.73p
* see note 8
Group Statement of Comprehensive Income
For the year ended 31 March 2025
Restated
2025 2024
£'000 £'000
Group profit for the financial year 221,221 340,538
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Currency translation:
- arising in the year (43,689) (66,207)
- recycled to the Income Statement on disposal (13,041) -
Movements relating to cash flow hedges 25,323 37,117
Movement in deferred tax on cash flow hedges (5,140) (6,937)
(36,547) (36,027)
Items that will not be reclassified to profit or loss
Group defined benefit pension obligations:
- remeasurements (332) 24
- movement in deferred tax 28 (117)
(304) (93)
Other comprehensive income for the financial year, net of tax (36,851) (36,120)
Total comprehensive income for the financial year 184,370 304,418
Attributable to:
Owners of the Parent 171,820 292,686
Non-controlling interests 12,550 11,732
184,370 304,418
Attributable to:
Continuing operations 198,202 266,410
Discontinued operations (13,832) 38,008
184,370 304,418
Group Balance Sheet
As at 31 March 2025
Note 2025 2024
£'000 £'000
ASSETS
Non-current assets
Property, plant and equipment 1,262,386 1,430,513
Right-of-use leased assets 298,032 349,925
Intangible assets and goodwill 2,413,503 3,136,945
Equity accounted investments 71,428 32,825
Deferred income tax assets 87,446 81,258
Derivative financial instruments 10 24,871 42,760
4,157,666 5,074,226
Current assets
Inventories 940,159 1,072,061
Trade and other receivables 1,975,444 2,172,422
Derivative financial instruments 10 25,321 55,064
Cash and cash equivalents 10 1,088,175 1,109,446
4,029,099 4,408,993
Assets classified as held for sale 8 1,070,864 -
5,099,963 4,408,993
Total assets 9,257,629 9,483,219
EQUITY
Capital and reserves attributable to owners of the Parent
Share capital 17,422 17,422
Share premium 883,909 883,890
Share based payment reserve 9 71,350 63,806
Cash flow hedge reserve 9 2,083 (18,100)
Foreign currency translation reserve 9 10,324 64,873
Other reserves 9 932 932
Retained earnings 2,087,407 2,078,568
Equity attributable to owners of the Parent 3,073,427 3,091,391
Non-controlling interests 94,869 91,641
Total equity 3,168,296 3,183,032
LIABILITIES
Non-current liabilities
Borrowings 10 1,849,217 1,574,775
Lease creditors 10 249,726 284,856
Derivative financial instruments 10 19,224 27,536
Deferred income tax liabilities 223,949 286,217
Post employment benefit obligations 10 5,884 6,557
Provisions for liabilities 283,397 306,367
Acquisition related liabilities 83,547 72,009
Government grants 2,513 2,704
2,717,457 2,561,021
Current liabilities
Trade and other payables 2,763,181 3,054,108
Current income tax liabilities 73,781 81,095
Borrowings 10 116,825 368,743
Lease creditors 10 64,245 77,527
Derivative financial instruments 10 11,348 20,914
Provisions for liabilities 68,660 67,011
Acquisition related liabilities 10,911 69,768
3,108,951 3,739,166
Liabilities associated with assets classified as held for sale 8 262,925 -
3,371,876 3,739,166
Total liabilities 6,089,333 6,300,187
Total equity and liabilities 9,257,629 9,483,219
Net debt (excl. lease creditors, incl. cash attributable to assets held for 10 (795,909) (784,698)
sale)
Group Statement of Changes in Equity
For the year ended 31 March 2025
Attributable to owners of the Parent
Share Share Retained Other Total Non- Total
capital premium earnings reserves £'000 controlling equity
£'000 £'000 £'000 (note 9) interests £'000
£'000 £'000
At 1 April 2024 17,422 883,890 2,078,568 111,511 3,091,391 91,641 3,183,032
Profit for the financial year - - 206,490 - 206,490 14,731 221,221
Other comprehensive income:
Currency translation:
- arising in the year - - - (41,508) (41,508) (2,181) (43,689)
- recycled to the Income Statement on disposal - - - (13,041) (13,041) - (13,041)
Group defined benefit pension obligations:
- remeasurements - - (332) - (332) - (332)
- movement in deferred tax - - 28 - 28 - 28
Movements relating to cash flow hedges - - - 25,323 25,323 - 25,323
Movement in deferred tax on - - - (5,140) (5,140) - (5,140)
cash flow hedges
Total comprehensive income - - 206,186 (34,366) 171,820 12,550 184,370
Re-issue of treasury shares - 19 - - 19 - 19
Share based payment - - - 7,544 7,544 - 7,544
Dividends - - (197,347) - (197,347) (9,322) (206,669)
At 31 March 2025 17,422 883,909 2,087,407 84,689 3,073,427 94,869 3,168,296
Group Statement of Changes in Equity
For the year ended 31 March 2024
Attributable to owners of the Parent
Share Share Retained Other Total Non- Total
capital premium earnings reserves £'000 controlling equity
£'000 £'000 £'000 (note 9) interests £'000
£'000 £'000
At 1 April 2023 17,422 883,669 1,941,223 135,777 2,978,091 80,219 3,058,310
Profit for the financial year - - 326,255 - 326,255 14,283 340,538
Other comprehensive income:
Currency translation - - - (63,656) (63,656) (2,551) (66,207)
Group defined benefit pension obligations:
- remeasurements - - 24 - 24 - 24
- movement in deferred tax - - (117) - (117) - (117)
Movements relating to cash flow hedges - - - 37,117 37,117 - 37,117
Movement in deferred tax on - - - (6,937) (6,937) - (6,937)
cash flow hedges
Total comprehensive income - - 326,162 (33,476) 292,686 11,732 304,418
Re-issue of treasury shares - 221 - - 221 - 221
Share based payment - - - 9,210 9,210 - 9,210
Dividends - - (188,817) - (188,817) (310) (189,127)
At 31 March 2024 17,422 883,890 2,078,568 111,511 3,091,391 91,641 3,183,032
Group Cash Flow Statement
For the year ended 31 March 2025
2025 2024
Note £'000 £'000
Cash generated from operations before exceptionals 11 856,761 995,793
Exceptionals (55,858) (30,934)
Cash generated from operations 800,903 964,859
Interest paid (including lease interest) (102,998) (118,780)
Income tax paid (115,876) (124,057)
Net cash flows from operating activities 582,029 722,022
Investing activities
Inflows:
Proceeds from disposal of property, plant and equipment 44,839 6,666
Dividends received from equity accounted investments 857 1,261
Government grants received in relation to property, plant and equipment 340 2,669
Disposal of equity accounted investments 61,406 17,668
Interest received 11,178 15,285
118,620 43,549
Outflows:
Purchase of property, plant and equipment (214,295) (230,354)
Acquisition of subsidiaries 13 (167,294) (288,155)
Payment of accrued acquisition related liabilities (75,170) (50,334)
(456,759) (568,843)
Net cash flows from investing activities (338,139) (525,294)
Financing activities
Inflows:
Proceeds from issue of shares 19 221
Net cash inflow on derivative financial instruments 51,552 69,182
Increase in interest-bearing loans and borrowings 809,050 -
860,621 69,403
Outflows:
Repayment of interest-bearing loans and borrowings (748,840) (270,836)
Repayment of lease creditors (86,005) (82,187)
Dividends paid to owners of the Parent 7 (197,347) (188,817)
Dividends paid to non-controlling interests (9,322) (310)
(1,041,514) (542,150)
Net cash flows from financing activities (180,893) (472,747)
Change in cash and cash equivalents 62,997 (276,019)
Translation adjustment (16,414) (22,341)
Cash and cash equivalents at beginning of year 1,072,846 1,371,206
Cash and cash equivalents at end of year 1,119,429 1,072,846
Cash and cash equivalents consists of:
Cash and short-term bank deposits 1,088,175 1,109,446
Overdrafts (31,084) (36,600)
Cash and short-term bank deposits attributable to assets held for sale 62,338 -
1,119,429 1,072,846
Notes to the Condensed Financial Statements
For the year ended 31 March 2025
1. Basis of Preparation
The financial information, from the Group Income Statement to note 17,
contained in this preliminary results statement has been derived from the
Group financial statements for the year ended 31 March 2025 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 2025 and their report was unqualified. The financial information for the
year ended 31 March 2024 represents an abbreviated 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 the year ended 31 March
2025.
2. Accounting Policies
The following changes to IFRS became effective for the Group during the year
but did not result in material changes to the Group's consolidated financial
statements:
· Classification of Liabilities as Current or Non-current - Amendments to IAS
1
· Lease Liability in a Sales and Leaseback - Amendments to IFRS 16
· Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7
· Lack of Exchangeability - Amendments to IAS 21
Standards, interpretations and amendments to published standards that are not yet effective
The Group has not applied certain new standards, amendments and
interpretations to existing standards that have been issued but are not yet
effective. These include:
· Effects of Changes in Foreign Exchange Rates - Amendments to IAS 21
· Classification and Measurement of Financial Instruments - Amendments to
IFRS 9/IFRS 7
· Contracts Referencing Nature-dependent Electricity - Amendments to IFRS
9/IFRS 7
· IFRS 18 Presentation and Disclosure in Financial Statements
· IFRS 19 Subsidiaries without Public Accountability: Disclosures
· Annual Improvements to IFRS Accounting Standards - Volume 11
The Group is currently assessing how the application of IFRS 18: Presentation
and Disclosure in Financial Statements, effective for accounting periods on or
after 1 January 2027, will affect the future presentation of the Group's
financial statements. While the adoption of IFRS 18 will not affect the totals
of the Group's assets, liabilities, equity, income and expenses, there will
likely be changes as to how the make-up of these principal categories are
presented both in the primary statements and the notes together with
additional disclosures around management performance measures. Otherwise, the
standards outlined above are not expected to result in a net material change
to the Group's financial statements.
3. Reporting Currency
The Group's financial statements are presented in sterling, denoted by the
symbol '£'. Results and cash flows of operations based in non-sterling
countries have been translated into sterling at average rates for the year,
and the related balance sheets have been translated at the rates of exchange
ruling at the balance sheet date. The principal exchange rates used for
translation of results and balance sheets into sterling were as follows:
Average rate Closing rate
2025 2024 2025 2024
Stg£1= Stg£1= Stg£1= Stg£1=
Euro 1.1893 1.1563 1.1970 1.1695
Danish krone 8.8706 8.6183 8.9314 8.7218
Swedish krona 13.6338 13.2851 12.9866 13.4780
Norwegian krone 13.9167 13.3529 13.6617 13.6814
US dollar 1.2767 1.2541 1.2946 1.2643
Canadian dollar 1.7722 1.6932 1.8593 1.7158
4. Segmental Reporting
DCC is an international sales, marketing and 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 ('CODM'). The CODM has been identified as Mr. Donal Murphy,
Chief Executive and his Group Executive Committee.
As announced on 22 April 2025, the Group entered into an agreement to dispose
of its Healthcare division. Following this change in the composition of
operating segments, segmental reporting has been revised and the prior year
segmental disclosures have been restated as required under IFRS 8.
The Group is organised into two operating segments (as identified under IFRS 8
Operating Segments) and generates revenue through the following activities:
DCC Energy is a customer-focused energy business, specialising in the sales,
marketing, and distribution of secure, cleaner and competitive energy
solutions to commercial, industrial, domestic, and transport customers. We
operate two businesses: our Solutions business brings energy to customer
sites, while our Mobility business serves transport and fleet customers. The
adjusted operating profit of Solutions represents approximately 77% of this
segment's adjusted operating profit in the current year and Mobility
represents approximately 23%.
DCC Technology acts as an enabler between global technology brands and the
people and businesses who use their products. DCC Technology comprises Pro
Tech, Life Tech and Info Tech. Through Pro Tech, we bring professional
technologies together to enhance audio and visual experiences. Through Life
Tech, we provide technology to improve lifestyle quality. And through Info
Tech, we put the latest technology in people's hands to make faster
connections happen.
The chief operating decision maker monitors the operating results of segments
separately to allocate resources between segments and to assess performance.
Segment performance is predominantly evaluated based on operating profit
before amortisation of intangible assets and net operating exceptional items
('adjusted operating profit') and return on capital employed. 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. Intersegment revenue is
not material and thus not subject to separate disclosure.
An analysis of the Group's performance by segment and geographic location is
as follows:
(a) By operating segment
Year ended 31 March 2025
DCC DCC Total
Energy Technology £'000
Continuing operations £'000 £'000
Segment revenue 13,366,607 4,644,504 18,011,111
Adjusted operating profit 535,556 81,966 617,522
Intangible asset amortisation and impairment (85,405) (95,957) (181,362)
Net operating exceptionals (note 5) (9,847) (29,977) (39,824)
Operating profit (continuing operations) 440,304 (43,968) 396,336
Year ended 31 March
2024 (restated)
DCC DCC Total
Energy Technology £'000
Continuing operations £'000 £'000
Segment revenue 14,224,938 4,629,113 18,854,051
Adjusted operating profit 502,961 97,231 600,192
Intangible asset amortisation (77,236) (26,289) (103,525)
Net operating exceptionals (note 5) (14,858) (19,364) (34,222)
Operating profit (continuing operations) 410,867 51,578 462,445
(b) By geography
The Group has a presence in 22 countries worldwide. The following represents a
geographical analysis of continuing revenue and non-current assets in
accordance with IFRS 8, which requires disclosure of information about the
country of domicile (Republic of Ireland) and countries with material revenue
and non-current assets.
Revenue from operations is derived almost entirely from the sale of goods and
is disclosed based on the location of the entity selling the goods. The
analysis of non-current assets is based on the location of the assets. There
are no material dependencies or concentrations on individual customers which
would warrant disclosure under IFRS 8.
Revenue Non-current assets*
Restated
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Republic of Ireland (country of domicile) 1,838,531 1,963,090 205,327 230,348
United Kingdom 5,842,624 6,153,678 1,259,210 1,487,302
France 3,186,335 3,250,325 949,261 961,631
United States 1,902,926 1,806,187 622,673 860,514
Rest of World 5,240,695 5,680,771 1,008,878 1,410,413
18,011,111 18,854,051 4,045,349 4,950,208
* Non-current assets comprise property, plant and equipment, right-of-use
leased assets, intangible assets and goodwill and equity accounted investments
Disaggregation of revenue
The following table disaggregates revenue by primary geographical market,
major revenue lines and timing of revenue recognition. The use of revenue as a
metric of performance in the Group's Energy segment is of limited relevance
due to the influence of changes in underlying energy product costs on absolute
revenues. Whilst changes in underlying energy product costs will change
percentage operating margins, this has little relevance in the downstream
energy distribution market in which this segment operates where elements of
profitability are driven by absolute contribution per tonne/litre of product
sold, and not a percentage margin. Accordingly, management primarily review
geographic volume performance rather than geographic revenue performance for
this segment as country-specific GDP and weather patterns can influence
volumes. The disaggregated revenue information presented below for DCC
Technology, which can also be influenced by country-specific GDP movements, is
consistent with how revenue is reported and reviewed internally.
Year ended 31 March 2025
DCC DCC Total
Energy Technology £'000
Continuing operations £'000 £'000
Republic of Ireland (country of domicile) 1,528,020 310,511 1,838,531
United Kingdom 4,257,283 1,585,341 5,842,624
France 3,056,871 129,464 3,186,335
North America 244,183 1,809,391 2,053,574
Rest of World 4,280,250 809,797 5,090,047
Revenue 13,366,607 4,644,504 18,011,111
Products transferred at point in time 13,366,607 4,644,504 18,011,111
Energy solutions products and services 8,574,805 - 8,574,805
Energy mobility products and services 4,791,802 - 4,791,802
Technology products and services - 4,644,504 4,644,504
Revenue 13,366,607 4,644,504 18,011,111
Year ended 31 March 2024
(restated)
DCC DCC Total
Energy Technology £'000
Continuing operations £'000 £'000
Republic of Ireland (country of domicile) 1,591,561 371,529 1,963,090
United Kingdom 4,501,053 1,652,625 6,153,678
France 3,115,534 134,791 3,250,325
North America 254,370 1,721,283 1,975,653
Rest of World 4,762,420 748,885 5,511,305
Revenue 14,224,938 4,629,113 18,854,051
Products transferred at point in time 14,224,938 4,629,113 18,854,051
Energy solutions products and services 8,871,109 - 8,871,109
Energy mobility products and services 5,353,829 - 5,353,829
Technology products and services - 4,629,113 4,629,113
Revenue 14,224,938 4,629,113 18,854,051
5. Exceptionals
2025 Restated
£'000 2024
£'000
Restructuring and integration costs and other (37,042) (20,647)
Acquisition and related costs (9,060) (13,664)
Profit on disposal of subsidiary undertaking 3,255 -
Adjustments to contingent acquisition consideration 3,023 89
(39,824) (34,222)
Impairment of goodwill (73,835) -
Net operating exceptional items (113,659) (34,222)
Mark to market of swaps and related debt (340) (873)
Net exceptional items before taxation (113,999) (35,095)
Income tax credit attaching to exceptional items 8,240 4,558
Net exceptional items after tax from continuing operations (105,759) (30,537)
Net exceptional items after tax relating to discontinued operations (60,961) (3,227)
Non-controlling interest share of net exceptional items after tax - 449
Net exceptional items attributable to owners of the Parent (166,720) (33,315)
Restructuring and integration costs and other of £37.042 million (2024:
£20.647 million) relates to the restructuring of operations across a number
of businesses and recent acquisitions. The majority of the cost relates to the
optimisation and integration of operations in the Technology division in
respect of large projects in both the UK and the North American businesses.
Acquisition and related costs include the professional fees and tax costs
relating to the evaluation and completion of acquisition opportunities and
amounted to £9.060 million (2024: £13.664 million).
During the year, DCC Energy completed the sale of a majority stake in its
liquid gas business in Hong Kong & Macau. The transaction valued DCC's
business at an initial enterprise value of c.US$150 million (c.£117 million),
on a debt-free, cash-free basis. With the two businesses being merged post
completion, DCC has retained a minority stake in the combined business. The
transaction resulted in a modest profit on disposal of £3.255 million.
Adjustments to contingent acquisition consideration of £3.023 million (2024:
£0.890 million) reflects movements in provisions associated with the expected
earn-out or other deferred arrangements that arise through the Group's
corporate development activity.
In accordance with IAS 36 Impairment of Assets, the Group is required to
assess goodwill and other intangible assets for impairment. Accordingly,
impairment reviews are performed annually, or more frequently if there is an
indication that the carrying amount may not be recoverable. A non-cash
goodwill impairment charge has been recognised in respect of the UK component
of DCC Technology's Info Tech segment. While trading in the business has
improved in recent years, the recovery to historic levels has taken longer
than anticipated. Given the longer recovery trajectory and market conditions
showing little signs of improving in the UK, a non-cash impairment of £73.835
million has been recognised.
The level of ineffectiveness calculated under IAS 39 on the hedging
instruments related to the Group's US private placement debt is charged or
credited as an exceptional item. In the year ended 31 March 2025, this
amounted to an exceptional non-cash charge of £0.340 million (2024: charge of
£0.873 million). The cumulative net exceptional credit taken in respect of
IAS 39 ineffectiveness is £0.199 million. This, or any subsequent similar
non-cash charges or gains, will net to zero over the remaining term of this
debt and the related hedging instruments.
There was a related income tax credit of £8.240 million (2024: credit of
£4.558 million) in relation to certain exceptional charges.
The charge for net exceptional items on discontinued operations primarily
relates to the Exertis France consumer product business and Exertis Iberia
within the Info Tech segment of DCC Technology. In April 2025 the Group agreed
to sell this business and the proceeds on disposal are expected to give rise
to an impairment loss of approximately £52.227 million which has been
recognised in the current year. The balance of £8.734 million relates to
restructuring and costs of disposal for discontinued operations.
6. Earnings per Ordinary Share
Continuing Discontinued operations (note 8) Total Continuing Discontinued operations (note 8) Total
operations 2025 2025 operations 2024 2024
2025 £'000 £'000 2024 £'000 £'000
£'000 £'000
Profit attributable to owners of the Parent 208,509 (2,019) 206,490 273,593 52,662 326,255
Amortisation of intangible assets after tax 83,577 8,265 91,842 81,796 8,161 89,957
Exceptionals after tax (note 5) 105,759 60,961 166,720 30,088 3,227 33,315
Adjusted profit after taxation and non-controlling interests 397,845 67,207 465,052 385,477 64,050 449,527
Continuing Discontinued operations (note 8) Total Continuing Discontinued operations (note 8) Total
operations 2025 2025 operations 2024 2024
2025 pence pence 2024 pence pence
pence pence
Basic earnings per ordinary share
Basic earnings per ordinary share 210.82p (2.04p) 208.78p 276.94p 53.30p 330.24p
Amortisation of intangible assets after tax 84.50p 8.36p 92.86p 82.79p 8.27p 91.06p
Exceptionals after tax 106.93p 61.63p 168.56p 30.45p 3.26p 33.71p
Adjusted basic earnings per ordinary share 402.25p 67.95p 470.20p 390.18p 64.83p 455.01p
Weighted average number of ordinary shares in issue (thousands) 98,905 98,794
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 (a non-GAAP financial measure) are intended to demonstrate the
results of the Group after eliminating the impact of amortisation of
intangible assets and net exceptionals.
Continuing Discontinued operations (note 8) Total Continuing Discontinued operations (note 8) Total
operations 2025 2025 operations 2024 2024
2025 pence pence 2024 pence pence
pence pence
Diluted earnings per ordinary share
Basic earnings per ordinary share 210.48p (2.04p) 208.44p 276.61p 53.24p 329.85p
Amortisation of intangible assets after tax 84.37p 8.34p 92.71p 82.70p 8.25p 90.95p
Exceptionals after tax 106.75p 61.54p 168.29p 30.42p 3.27p 33.69p
Adjusted diluted earnings per ordinary share 401.60p 67.84p 469.44p 389.73p 64.76p 454.49p
Weighted average number of ordinary shares in issue (thousands) 99,065 98,909
Diluted earnings per ordinary 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. The adjusted figures for
diluted earnings per ordinary share (a non-GAAP financial measure) are
intended to demonstrate the results of the Group after eliminating the impact
of amortisation of intangible assets and net exceptionals.
The earnings used for the purposes of the continuing diluted earnings per
ordinary share calculations were £208.509 million (2024: £273.593 million)
and £397.845 million (2024: £385.477 million) for the purposes of the
continuing adjusted diluted earnings per ordinary share calculations.
The earnings used for the purposes of the discontinued diluted earnings per
ordinary share calculations were £2.019 million (loss) (2024: profit of
£52.662 million) and £67.207 million (2024: £64.050 million) for the
purposes of the discontinued adjusted diluted earnings per ordinary share
calculations.
The weighted average number of ordinary shares used in calculating the diluted
earnings per ordinary share for the year ended 31 March 2025 was 99.065
million (2024: 98.909 million). A reconciliation of the weighted average
number of ordinary shares used for the purposes of calculating the diluted
earnings per ordinary share amounts is as follows:
2025 2024
'000 '000
Weighted average number of ordinary shares in issue 98,905 98,794
Dilutive effect of options and awards 160 115
Weighted average number of ordinary shares for diluted earnings per share 99,065 98,909
Employee share options and awards, which are performance-based, are treated as
contingently issuable shares because their issue is contingent upon
satisfaction of specified performance conditions in addition to the passage of
time. These contingently issuable shares are excluded from the computation of
diluted earnings per ordinary share where the conditions governing
exercisability would not have been satisfied as at the end of the reporting
period if that were the end of the vesting period.
7. Dividends
Dividends paid per ordinary share are as follows: 2025 2024
£'000 £'000
Final - paid 133.53 pence per share on 18 July 2024 131,181 126,444
(2024: paid 127.17 pence per share on 20 July 2023)
Interim - paid 66.19 pence per share on 13 December 2024 66,166 62,373
(2024: paid 63.04 pence per share on 15 December 2023)
197,347 188,817
The Directors are proposing a final dividend in respect of the year ended 31
March 2025 of 140.21 pence per ordinary share (£138.760 million). This
proposed dividend is subject to approval by the shareholders at the Annual
General Meeting.
8. Discontinued Operations
As announced on 22 April 2025, the Group entered into an agreement to dispose of the Healthcare segment. The disposal is expected to complete in the third quarter of this calendar year at which time control of the Healthcare businesses will pass to the acquirer. The transaction is expected to give rise to an exceptional profit in the year ending 31 March 2026. In addition, DCC Technology signed an exclusivity agreement for the sale of the Exertis France consumer product business and Exertis Iberia ("Exertis France & Iberia") in April 2025. The transaction is expected to close within three months, subject to regulatory approvals.
The conditions for the Healthcare segment and Exertis France & Iberia to
be classified as discontinued operations have been satisfied, and,
accordingly, the results of these businesses are presented separately as
discontinued operations in the Group Income Statement and the associated
assets and liabilities are classified as assets held for sale at the balance
sheet date. The following table details the results of discontinued operations
included in the Group Income Statement:
2025 2024
£'000 £'000
Revenue 1,009,232 1,004,712
Cost of sales (752,921) (748,218)
Gross profit 256,311 256,494
Operating expenses (170,233) (173,906)
Operating profit before amortisation of intangible assets and exceptional 86,078 82,588
items
Amortisation of intangible assets (10,629) (10,550)
Net operating exceptionals (60,116) (5,087)
Operating profit 15,333 66,951
Net finance costs (1,349) (2,413)
Profit before tax 13,984 64,538
Income tax expense (15,681) (11,546)
Profit from discontinued operations after tax (1,697) 52,992
The following table details the cash flow from discontinued operations
included in the Group Cash Flow Statement:
2025 2024
£'000 £'000
Net cash flow from operating activities 62,381 78,064
Net cash flow from investing activities (38,282) (28,628)
Net cash flow from discontinued operations 24,099 49,436
The fair value less costs to sell of the major classes of assets and
liabilities held for sale as at 31 March 2025 are as follows:
2025
£'000
Assets
Property, plant and equipment 155,314
Right-of-use leased assets 39,455
Intangible assets 567,847
Deferred income tax assets 1,394
Inventories 111,718
Trade and other receivables 132,786
Interest receivable 12
Cash and cash equivalents 62,338
Assets classified as held for sale 1,070,864
Liabilities
Trade and other payables (127,707)
Current income tax liabilities (16,727)
Deferred income tax liabilities (43,466)
Lease creditors (42,173)
Provisions for liabilities and charges (22,805)
Acquisition related liabilities (9,864)
Government grants (183)
Liabilities associated with assets classified as held for sale (262,925)
Net assets of the disposal group 807,939
The proceeds on disposal of the Healthcare segment are expected to exceed the
carrying value of the related net assets and accordingly no impairment losses
have been recognised on the classification of these operations as held for
sale. The proceeds on disposal of Exertis France & Iberia are expected to
give rise to an impairment loss of approximately £52.2 million which has been
recognised in the current year.
9. Other Reserves
For the year ended 31 March 2025
Share based payment Cash flow Foreign Other Total
reserve
hedge
currency translation reserve
reserves
£'000
£'000
reserve
£'000
£'000
£'000
At 1 April 2024 63,806 (18,100) 64,873 932 111,511
Currency translation:
- arising in the year - - (41,508) - (41,508)
- recycled to the Income Statement on disposal - - (13,041) - (13,041)
Movements relating to cash flow hedges - 25,323 - - 25,323
Movement in deferred tax on cash flow hedges - (5,140) - - (5,140)
Share based payment 7,544 - - - 7,544
At 31 March 2025 71,350 2,083 10,324 932 84,689
For the year ended 31 March 2024
Share based payment Cash flow Foreign Other Total
reserve
hedge
currency translation reserve
reserves
£'000
£'000
reserve
£'000
£'000
£'000
At 1 April 2023 54,596 (48,280) 128,529 932 135,777
Currency translation - - (63,656) - (63,656)
Movements relating to cash flow hedges - 37,117 - - 37,117
Movement in deferred tax on cash flow hedges - (6,937) - - (6,937)
Share based payment 9,210 - - - 9,210
At 31 March 2024 63,806 (18,100) 64,873 932 111,511
10. Analysis of Net Debt
Continuing Assets held
operations for sale Total Total
2025 2025 2025 2024
£'000 £'000 £'000 £'000
Non-current assets
Derivative financial instruments 24,871 - 24,871 42,760
Current assets
Derivative financial instruments 25,321 - 25,321 55,064
Cash and cash equivalents 1,088,175 62,338 1,150,513 1,109,446
1,113,496 62,338 1,175,834 1,164,510
Non-current liabilities
Derivative financial instruments (19,224) - (19,224) (27,536)
Bank borrowings - - - (34,205)
Unsecured Notes (1,849,217) - (1,849,217) (1,540,570)
(1,868,441) - (1,868,441) (1,602,311)
Current liabilities
Bank borrowings (31,084) - (31,084) (36,600)
Derivative financial instruments (11,348) - (11,348) (20,914)
Unsecured Notes (85,741) - (85,741) (332,143)
(128,173) - (128,173) (389,657)
Net (debt)/cash (excluding lease creditors) (858,247) 62,338 (795,909) (784,698)
Lease creditors (non-current) (249,726) (32,342) (282,068) (284,856)
Lease creditors (current) (64,245) (9,831) (74,076) (77,527)
Total lease creditors (313,971) (42,173) (356,144) (362,383)
Net (debt)/cash (including lease creditors) (1,172,218) 20,165 (1,152,053) (1,147,081)
An analysis of the maturity profile of the Group's net cash/(debt) (including
lease creditors) of continuing operations at 31 March 2025 is as follows:
As at 31 March 2025 Less than Between Between Over Total
1 year
1 and 2
2 and 5
5 years
£'000
£'000
years
years
£'000
£'000 £'000
Cash and short-term deposits 1,088,175 - - - 1,088,175
Overdrafts (31,084) - - - (31,084)
Cash and cash equivalents 1,057,091 - - - 1,057,091
Unsecured Notes (85,741) (213,294) (683,074) (952,849) (1,934,958)
Derivative financial instruments - Unsecured Notes 13,871 22,880 (16,869) - 19,882
Derivative financial instruments - other 102 (1,286) (664) 1,586 (262)
985,323 (191,700) (700,607) (951,263) (858,247)
Lease creditors (64,245) (50,473) (97,736) (101,517) (313,971)
Net debt (continuing operations, including lease creditors)
921,078 (242,173) (798,343) (1,052,780) (1,172,218)
The Group's Unsecured Notes fall due between 25 April 2025 and 4 April 2034
with an average maturity of 4.8 years at 31 March 2025. The full fair value of
a hedging derivative is allocated to the time period corresponding to the
maturity of the hedged item.
11. Cash Generated from Operations
2025 2024
£'000 £'000
Cash flow from operating activities
Profit for the period 221,221 340,538
Add back non-operating expenses/(income):
- tax 87,630 83,213
- share of equity accounted investments' profit after tax (3,392) (604)
- net operating exceptionals 173,775 39,309
- net finance costs 106,210 106,249
Group operating profit before exceptionals 585,444 568,705
Share-based payments expense 7,544 9,210
Depreciation (including right-of-use leased assets) 253,919 240,194
Amortisation of intangible assets 118,156 114,075
Profit on disposal of property, plant and equipment (17,225) (1,148)
Amortisation of government grants (323) (376)
Other 3,009 8,562
(Increase)/decrease in working capital (93,763) 56,571
Cash generated from operations before exceptionals 856,761 995,793
12. Post Employment Benefit Obligations
The Group's defined benefit pension schemes' assets were measured at fair
value at 31 March 2025. The defined benefit pension schemes' liabilities at 31
March 2025 were updated to reflect material movements in underlying
assumptions. The Group's post employment benefit obligations moved from a net
liability of £6.557 million at 31 March 2024 to a net liability of £5.884
million at 31 March 2025.
13. Business Combinations
A key strategy of the Group is to create and sustain market leadership
positions through acquisitions in markets it currently operates in, together
with extending the Group's footprint into new geographic markets. In line with
this strategy, the principal acquisitions completed by the Group during the
period, together with percentages acquired, were as follows:
· The acquisition by DCC Energy of 100% of Next Energy in April 2024 for
an initial enterprise value of approximately £90 million. Next Energy is an
energy efficiency and renewable energy services provider focused on the UK
domestic sector;
· The acquisition by DCC Technology of 100% of MDM Commercial Inc ('MDM')
in April 2024. MDM is a distributor of hospitality and healthcare professional
AV equipment in the US;
· The acquisition by DCC Energy of 100% of Secundo Photovoltaik
('Secundo') in June 2024. Secundo is one of Austria's largest solar PV
businesses serving commercial customers;
· The acquisition by DCC Energy of 100% of WIRSOL Roof Solutions
('Wirsol') in July 2024. Wirsol is a German based provider of solar PV and
battery storage solutions;
· The acquisition by DCC Energy of 100% of Cubo in July 2024. Cubo is a
fleet telematics business which provides integrated telematics and
communication storage solutions in the UK and Ireland;
· The acquisition by DCC Energy of 100% of Acteam ENR ('Acteam') in
September 2024. Acteam is a French solar PV business providing project
development, engineering, project management along with construction support
and supervision services for commercial solar PV projects; and
· The acquisition by DCC Energy of 100% of MG Habitat in November 2024. MG
Habitat is a French energy services business providing design, installation
and maintenance services for solar PV, heat-pumps and other energy
installations.
The acquisition data presented below reflects the fair value of the
identifiable net assets acquired (excluding net cash/debt acquired) in respect
of acquisitions completed during the year.
Total Total
2025 2024
£'000
£'000
Assets
Non-current assets
Property, plant and equipment 4,307 48,603
Right-of-use leased assets 3,343 10,563
Intangible assets 89,810 156,964
Equity accounted investments - 5,530
Deferred income tax assets 5 2,467
Total non-current assets 97,465 224,127
Current assets
Inventories 29,548 23,708
Trade and other receivables 42,973 59,945
Total current assets 72,521 83,653
Liabilities
Non-current liabilities
Deferred income tax liabilities (22,903) (41,026)
Post employment benefit obligations - (18,647)
Provisions for liabilities (673) (13,245)
Lease creditors (2,427) (6,742)
Government grants (1) -
Total non-current liabilities (26,004) (79,660)
Current liabilities
Trade and other payables (42,751) (61,022)
Provisions for liabilities (601) (6,919)
Current income tax liabilities (2,117) (8,179)
Lease creditors (916) (3,207)
Total current liabilities (46,385) (79,327)
Identifiable net assets acquired 97,597 148,793
Goodwill 137,893 222,171
Total consideration 235,490 370,964
Satisfied by:
Cash 178,048 327,354
Net cash and cash equivalents acquired (10,754) (39,199)
Net cash outflow 167,294 288,155
Acquisition related liabilities 68,196 82,809
Total consideration 235,490 370,964
None of the business combinations completed during the period were considered
sufficiently material to warrant separate disclosure of the fair values
attributable to those combinations. 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:
Total Book Fair value Fair
value
value adjustments
£'000
£'000
£'000
Non-current assets (excluding goodwill) 7,655 89,810 97,465
Current assets 78,365 (5,844) 72,521
Non-current liabilities (3,208) (22,796) (26,004)
Current liabilities (43,838) (2,547) (46,385)
Identifiable net assets acquired 38,974 58,623 97,597
Goodwill arising on acquisition 196,516 (58,623) 137,893
Total consideration 235,490 - 235,490
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 fair values within the twelve-month timeframe from the date of
acquisition will be disclosable in the 2026 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.
£1.108 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 (continuing
operations) in the Group Income Statement amounted to £9.060 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 £45.216 million. The fair value
of these receivables is £42.973 million (all of which is expected to be
recoverable) and is inclusive of an aggregate allowance for impairment of
£2.243 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
£120 million.
The business combinations completed during the year contributed £204.123
million to continuing revenues and £16.465 million to continuing profit for
the financial year attributable to Owners of the Parent Company. Had all the
business combinations effected during the year occurred at the beginning of
the year, total Group revenue (on a continuing basis) for the year ended 31
March 2025 would have been £18.051 billion and total Group profit for the
financial year attributable to Owners of the Parent Company (on a continuing
basis) would have been £210.759 million.
14. Seasonality of Operations
The Group's operations are significantly second half weighted primarily due to
a portion of the demand for DCC Energy's products being weather dependent and
seasonal buying patterns in DCC Technology.
15. Related Party Transactions
There have been no related party transactions or changes in related party
transactions that could have a material impact on the financial position or
performance of the Group during the 2025 financial year.
16. Events after the Balance Sheet Date
As announced on 22 April 2025, the Group entered into a definitive agreement for the sale of its Healthcare division. The proposed transaction values DCC Healthcare at a total enterprise value of £1,050 million on a cash-free, debt-free basis. The proposed transaction is subject to receipt of customary regulatory approvals and is expected to complete in the third quarter of this calendar year.
In April 2025, DCC Technology signed an exclusivity agreement for the sale of the Exertis France consumer product business and Exertis Iberia. The transaction is expected to close within three months, subject to regulatory approvals.
17. Board Approval
This report was approved by the Board of Directors of DCC plc on 12 May 2025.
Supplementary Financial Information
For the year ended 31 March 2025
Alternative Performance Measures
The Group reports certain alternative performance measures ('APMs') that are
not required under International Financial Reporting Standards ('IFRS') which
represent the generally accepted accounting principles ('GAAP') under which
the Group reports. The Group believes that the presentation of these APMs
provides useful supplemental information which, when viewed in conjunction
with our IFRS financial information, provides investors with a more meaningful
understanding of the underlying financial and operating performance of the
Group and its divisions.
These APMs are primarily used for the following purposes:
· to evaluate the historical and planned underlying results of our
operations;
· to set director and management remuneration; and
· to discuss and explain the Group's performance with the investment analyst
community.
None of the APMs should be considered as an alternative to financial measures
derived in accordance with GAAP. The APMs can have limitations as analytical
tools and should not be considered in isolation or as a substitute for an
analysis of our results as reported under GAAP. These performance measures may
not be calculated uniformly by all companies and therefore may not be directly
comparable with similarly titled measures and disclosures of other companies.
The principal APMs used by the Group, together with reconciliations where the
non-GAAP measures are not readily identifiable from the financial statements,
are as follows:
Adjusted operating profit ('EBITA')
Definition
This comprises operating profit as reported in the Group Income Statement
before net operating exceptional items and amortisation of intangible assets.
Net operating exceptional items and amortisation of intangible assets are
excluded in order to assess the underlying performance of our operations. In
addition, neither metric forms part of Director or management remuneration
targets.
Calculation 2025 2024
£'000 £'000
Operating profit - continuing operations 396,336 462,445
Net operating exceptional items - continuing operations 113,659 34,222
Amortisation of intangible assets - continuing operations 107,527 103,525
Adjusted operating profit ('EBITA') - continuing operations 617,522 600,192
Operating profit - discontinued operations 15,333 66,951
Net operating exceptional items - discontinued operations 60,116 5,087
Amortisation of intangible assets - discontinued operations 10,629 10,550
Adjusted operating profit ('EBITA') - discontinued operations 86,078 82,588
Total adjusted operating profit ('EBITA') 703,600 682,780
Adjusted operating profit before depreciation ('EBITDA')
Definition
EBITDA represents earnings before net interest, tax, depreciation on property,
plant and equipment, amortisation of intangible assets, share of equity
accounted investments' profit after tax and net exceptional items. This metric
is used to compare profitability between companies by eliminating the effects
of financing, tax environments, asset bases and business combinations history.
It is also utilised as a proxy for a company's cash flow.
Calculation 2025 2024
£'000 £'000
Total adjusted operating profit ('EBITA') 703,600 682,780
Depreciation of property, plant and equipment 166,520 157,356
Total adjusted operating profit before depreciation ('EBITDA') 870,120 840,136
Net interest before exceptional items
Definition
The Group defines net interest before exceptional items as the net total of
finance costs and finance income before interest related exceptional items as
presented in the Group Income Statement.
Calculation 2025 2024
£'000 £'000
Finance costs before exceptional items (118,791) (119,342)
Finance income before exceptional items 14,270 16,379
Net interest - continuing operations (104,521) (102,963)
Net interest - discontinued operations (1,349) (2,413)
Net interest before exceptional items (105,870) (105,376)
Interest cover - EBITDA Interest Cover
Definition
The EBITDA interest cover ratio measures the Group's ability to pay interest
charges on debt from cash flows. To maintain comparability with the
definitions contained in the Group's lending arrangements, EBITDA and net
interest exclude the impact of IFRS 16.
Calculation 2025 2024
£'000 £'000
EBITDA 870,120 840,136
Less: impact of IFRS 16 (7,547) (6,970)
EBITDA for covenant purposes 862,573 833,166
Net interest before exceptional items (105,870) (105,376)
Less: impact of IFRS 16 12,881 11,486
Net interest for covenant purposes (92,989) (93,890)
EBITDA interest cover (times) 9.3x 8.9x
Effective tax rate
Definition
The Group's effective tax rate expresses the income tax expense before
exceptionals and deferred tax attaching to the amortisation of intangible
assets as a percentage of adjusted operating profit less net interest before
exceptional items.
Calculation 2025 2024
£'000 £'000
Total adjusted operating profit 703,600 682,780
Net interest before exceptional items (105,870) (105,376)
597,730 577,404
Income tax expense - continuing operations 71,949 71,667
Income tax attaching to net exceptionals - continuing operations 8,240 4,558
Deferred tax attaching to amortisation of intangible assets - continuing 23,950 21,729
operations
Income tax expense before exceptionals and deferred tax attaching to 17,200 15,795
amortisation of intangible assets - discontinued operations
Total income tax expense before exceptionals and deferred tax attaching to 121,339 113,749
amortisation of intangible assets
Effective tax rate (%) 20.3% 19.7%
Dividend cover
Definition
The dividend cover ratio measures the Group's ability to pay dividends from
earnings.
Calculation 2025 2024
pence pence
Adjusted earnings per share - continuing operations 402.25 390.18
Dividend 206.40 196.57
Dividend cover (times) 1.9x 2.0x
Constant currency
Definition
The translation of foreign denominated earnings can be impacted by movements
in foreign exchange rates versus sterling, the Group's presentation currency.
In order to present a better reflection of underlying performance in the
period, the Group retranslates foreign denominated current year earnings at
prior year exchange rates.
Revenue (continuing, constant currency) 2025 2024
£'000 £'000
Revenue - continuing operations 18,011,111 18,854,051
Currency impact 334,400 -
Revenue (continuing, constant currency) 18,345,511 18,854,051
Adjusted operating profit (continuing, constant currency)
Adjusted operating profit - continuing operations 617,522 600,192
Currency impact 11,662 -
Adjusted operating profit (continuing, constant currency) 629,184 600,192
Adjusted earnings per share (continuing, constant currency)
Adjusted profit after taxation and non-controlling interests - continuing 397,845 385,477
operations
Currency impact 7,399 -
Adjusted profit after taxation and non-controlling interests (continuing, 405,244 385,477
constant currency)
Weighted average number of ordinary shares in issue ('000) 98,905 98,794
Adjusted earnings per share (continuing, constant currency) 409.73p 390.18p
Net capital expenditure
Definition
Net capital expenditure comprises purchases of property, plant and equipment,
proceeds from the disposal of property, plant and equipment and government
grants received in relation to property, plant and equipment.
Calculation 2025 2024
£'000 £'000
Purchase of property, plant and equipment 214,295 230,354
Government grants received in relation to property, plant and equipment (340) (2,669)
Proceeds from disposal of property, plant and equipment (44,839) (6,666)
Net capital expenditure 169,116 221,019
Free cash flow
Definition
Free cash flow is defined by the Group as cash generated from operations
before exceptional items as reported in the Group Cash Flow Statement after
repayment of lease creditors (including interest) and net capital expenditure.
Calculation 2025 2024
£'000 £'000
Cash generated from operations before exceptionals 856,761 995,793
Repayment of lease creditors (98,886) (93,673)
Net capital expenditure (169,116) (221,019)
Free cash flow 588,759 681,101
Free cash flow (after interest and tax payments)
Definition
Free cash flow (after interest and tax payments) is defined by the Group as
free cash flow after interest paid (excluding interest relating to lease
creditors), income tax paid, dividends received from equity accounted
investments and interest received. As noted in the definition of free cash
flow, interest amounts relating to the repayment of lease creditors has been
deducted in arriving at the Group's free cash flow and are therefore excluded
from the interest paid figure in arriving at the Group's free cash flow (after
interest and tax payments).
Calculation 2025 2024
£'000 £'000
Free cash flow 588,759 681,101
Interest paid (including interest relating to lease creditors) (102,998) (118,780)
Interest relating to lease creditors 12,881 11,486
Income tax paid (115,876) (124,057)
Dividends received from equity accounted investments 857 1,261
Interest received 11,178 15,285
Free cash flow (after interest and tax payments) 394,801 466,296
Cash conversion ratio
Definition
The cash conversion ratio expresses free cash flow as a percentage of adjusted
operating profit.
Calculation 2025 2024
£'000 £'000
Free cash flow 588,759 681,101
Total adjusted operating profit 703,600 682,780
Cash conversion ratio 84% 100%
Return on capital employed ('ROCE')
Definition
ROCE represents adjusted operating profit expressed as a percentage of the
average total capital employed.
The Group adopted IFRS 16 Leases on the transition date of 1 April 2019
using the modified retrospective approach, meaning that comparatives were
not restated. To assist comparability with prior years, the Group presents
ROCE excluding the impact of IFRS 16 ('ROCE excl. IFRS 16') as well as ROCE
including the impact of IFRS 16 ('ROCE incl. IFRS 16'). Total capital
employed (excl. IFRS 16) represents total equity adjusted for net debt/cash
(including lease creditors), goodwill and intangibles written off,
right-of-use leased assets, acquisition related liabilities and equity
accounted investments whilst total capital employed (incl. IFRS 16) includes
right-of-use leased assets.
Similarly, adjusted operating profit is presented both excluding and including
the impact of IFRS 16. Net operating exceptional items and amortisation of
intangible assets are excluded to assess the underlying performance of our
operations. In addition, neither metric forms part of Director or management
remuneration targets.
ROCE (excl. IFRS 16)
Calculation 2025 2024
£'000 £'000
Total equity 3,168,296 3,183,032
Net debt (including lease creditors) (continuing) 1,172,218 1,156,908
Goodwill and intangibles written-off (continuing) 768,350 682,668
Right-of-use leased assets (continuing) (298,032) (310,095)
Equity accounted investments (continuing) (71,428) (32,825)
Acquisition related liabilities (continuing, current and non-current) 94,458 131,315
Net assets of the disposal group (807,939) (845,269)
Total capital employed (excl. IFRS 16) 4,025,923 3,965,734
Average total capital employed (excl. IFRS 16) 3,995,829 3,829,715
Adjusted operating profit - continuing operations 617,522 600,192
Less: impact of IFRS 16 on continuing operating profit (6,569) (6,214)
610,953 593,978
Return on capital employed (excl. IFRS 16) - continuing operations 15.3% 15.5%
ROCE (incl. IFRS 16)
Calculation 2025 2024
£'000 £'000
Total capital employed 4,025,923 3,965,734
Right-of-use leased assets (continuing) 298,032 310,095
Total capital employed (incl. IFRS 16) 4,323,955 4,275,829
Average total capital employed (incl. IFRS 16) 4,299,892 4,131,686
Adjusted operating profit - continuing operations 617,522 600,192
Return on capital employed (incl. IFRS 16) - continuing operations 14.4% 14.5%
Committed acquisition expenditure
Definition
The Group defines committed acquisition expenditure as the total acquisition
cost of subsidiaries as presented in the Group Cash Flow Statement (excluding
amounts related to acquisitions which were committed to in previous years) and
future acquisition related liabilities for acquisitions committed to during
the year.
Calculation 2025 2024
£'000 £'000
Net cash outflow on acquisitions during the year 167,294 288,155
Cash outflow on acquisitions which were committed to in the previous year (76,639) (16,651)
Acquisition related liabilities arising on acquisitions during the year 68,196 82,809
Acquisition related liabilities which were committed to in the previous year (32,539) (8,549)
Amounts committed in the current year 27,202 143,803
Committed acquisition expenditure 153,514 489,567
Committed acquisition expenditure is analysed between continuing and
discontinued operations as follows:
Calculation 2025 2024
£'000 £'000
DCC Energy 101,559 485,786
DCC Technology 13,697 3,781
Committed acquisition expenditure - continuing operations 115,256 489,567
Committed acquisition expenditure - discontinued operations 38,258 -
Committed acquisition expenditure 153,514 489,567
Net working capital
Definition
Net working capital represents the net total of inventories, trade and other
receivables (excluding interest receivable), and trade and other payables
(excluding interest payable, amounts due in respect of property, plant and
equipment and government grants).
Calculation 2025 2024
£'000 £'000
Inventories 940,159 1,072,061
Add: inventories of the disposal group 111,718 -
Trade and other receivables 1,975,444 2,172,422
Add: trade and other receivables of the disposal group 132,786 -
Less: interest receivable (4,736) (1,391)
Trade and other payables (2,763,181) (3,054,108)
Add: trade and other payables of the disposal group (127,704) -
Less: interest payable 35,154 21,369
Less: amounts due in respect of property, plant and equipment 13,858 17,574
Less: government grants 23 36
Net working capital 313,521 227,963
Working capital (days)
Definition
Working capital days measures how long it takes in days for the Group to
convert working capital into revenue.
Calculation 2025 2024
£'000 £'000
Net working capital 313,521 227,963
March revenue 1,708,700 1,767,388
Working capital (days) 5.7 days 4.0 days
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR FZGMKRZLGKZMRecent news on DCC
See all newsREG - DCC PLC - Results for the year ended 31 March 2025
AnnouncementREG - Allianz Global Invs - Top 10 Holdings
AnnouncementREG - DCC PLC - Disposal of DCC Healthcare
AnnouncementREG - DCC PLC - DCC Leadership Changes
AnnouncementREG - Allianz Global Invs - Top 10 Holdings
Announcement