DCC PLC (DCC) - Interim Results Six Months ended 30 September 2012 RNS Number : 3811Q DCC PLC 05 November 2012 6 November 2012 Interim Results for the Six Months ended 30 September 2012 RESULTS HIGHLIGHTS € Change on prior year^† Constant currency* Reported Revenue 6,053.6m +42.4% +32.5% Operating profit** 62.4m +9.0% +1.1% Profit before net exceptional items, amortisation of intangible assets and tax 53.4m +9.1% +0.7% Adjusted earnings per share** 52.24 cent +12.2% +3.5% Dividend per share 29.48 cent +7.5% Operating cash flow 79.3m (2011: €71.0m) Net debt at 30 September 2012 242.4m (2011: €145.5m) ^† based on continuing activities i.e. excluding DCC SerCom's Enterprise distribution business which was disposed of in June 2012. * all constant currency figures quoted in this report are based on retranslating 2012/13 figures at the prior year translation rate. ** excluding net exceptionals and amortisation of intangible assets. DCC plc, the sales, marketing, distribution and business support services group, today announced its results for the six months ended 30 September 2012. Ø Revenue increased to €6.1 billion (+32.5% on continuing activities and on a constant currency basis). Approximately 80% of this growth was driven by acquisitions, principally in DCC Energy. Ø Operating profit increased to €62.4 million from €57.2 million in the prior year (+1.1% on continuing activities and on a constant currency basis). Ø Operating cash flow increased to €79.3 million from €71.0 million in the prior year. Ø The interim dividend was increased by 7.5% to 29.48 cent per share. Ø Acquisition expenditure of €133 million committed in the first half will strengthen DCC's market positions, particularly in its LPG business with the deployment of circa €100 million in LPG acquisitions in Britain, Scandinavia and the Benelux region. Ø The Group continues to anticipate that the year to 31 March 2013 will see strong growth in operating profit over the prior year. Commenting on the results Tommy Breen, Chief Executive, said: "Operating profit and adjusted earnings per share on continuing activities in the seasonally less significant first half were modestly ahead of budget and the prior year. The Board has decided to pay an interim dividend of 29.48 cent per share, representing a 7.5% increase on the interim dividend paid in the prior year. DCC remained very active on the development front with committed acquisition expenditure of €133 million in the first half of which approximately €100 million was committed in the expansion of its LPG distribution business with acquisitions in Britain, Scandinavia and the Benelux region. As DCC enters its seasonally more significant second half, its full year guidance continues to be set against a weak economic environment and the important assumption that there will be a return to more normal winter temperatures compared to the extremely mild winter last year, which should give rise to a strong recovery in DCC Energy's operating profit. Overall the Group reiterates the guidance previously provided for the year to 31 March 2013 that operating profit and adjusted earnings per share on continuing activities, both on a constant currency basis, will be approximately 15% ahead of the prior year. On a reported basis this would result in an approximate 20% increase in operating profit and in adjusted earnings per share compared to the prior year, assuming an exchange rate of Stg£0.805 = €1. The Group remains very well placed to continue the development of its business in existing and new geographies." For reference, please contact: Tommy Breen, Chief Executive Tel: +353 1 2799 400 Fergal O'Dwyer, Chief Financial Officer Email:email@example.com Redmond McEvoy, Investor Relations Manager www.dcc.ie Interim Management Report For the six months ended 30 September 2012 Results A summary of the results for the six months ended 30 September 2012 is as follows: €'m Change on prior year^† Constant Reported currency* Revenue 6,053.6 +42.4% +32.5% Operating profit** DCC Energy 23.4 +25.1% +14.8% DCC SerCom 15.8 +11.1% +4.0% DCC Healthcare 12.1 +14.9% +6.4% DCC Environmental 7.8 -0.4% -9.4% DCC Food & Beverage 3.3 -44.2% -44.2% Group operating profit 62.4 +9.0% +1.1% Finance costs (net) (9.0) Profit before net exceptionals, amortisation of intangible assets and tax 53.4 +9.1% +0.7% Net exceptional charge (6.4) Amortisation of intangible assets (8.7) Profit before tax 38.3 Taxation (7.8) Profit after tax 30.5 Adjusted earnings per share** 52.24 cent +12.2% +3.5% Dividend per share 29.48 cent +7.5% Operating cash flow 79.3m (2011: €71.0m) Net debt at 30 September 2012 242.4m (2011: €145.5m) ^ ^† based on continuing activities i.e. excluding DCC SerCom's Enterprise distribution business which was disposed of in June 2012. * all constant currency figures quoted in this report are based on retranslating 2012/13 figures at the prior year translation rate. ** excluding net exceptionals and amortisation of intangible assets. Revenue Revenue increased to €6.1 billion (+32.5% on continuing activities and on a constant currency basis). Approximately 80% of this growth was driven by acquisitions, principally in DCC Energy. DCC Energy's volumes increased by 36.0%, of which 2.9% was organic. Excluding DCC Energy, revenue in the rest of the Group increased by 9.6%, approximately three quarters of which was organic. This growth was primarily driven by DCC SerCom which achieved strong growth in both its IT and communications markets and its supply chain management activities. DCC Healthcare also achieved satisfactory organic revenue growth, principally in its pharma business. Operating profit performance Operating profit in the first half, from continuing activities and on a constant currency basis, was modestly ahead of budget and the prior year. DCC Energy generated strong organic operating profit growth, on a constant currency basis, albeit against easier comparatives in the prior year when the weather in the first quarter was relatively mild. Whilst acquisitions completed in the prior year by DCC Energy in Britain contributed significantly to revenue, as anticipated they did not make any profit contribution in the first half of the current year. In particular, the former Total oil distribution business (acquired in October 2011) did not contribute to operating profit in the first half as DCC was not in a position to integrate the business into its existing oil distribution operations until clearance was received from the UK competition authorities. DCC SerCom generated modest operating profit growth, with good growth in both IT and communications products and in its supply chain management business partially offset by a decline in the home entertainment products market. DCC Healthcare achieved satisfactory operating profit growth primarily driven by acquisitions while operating profit declined in DCC's two smaller divisions, DCC Environmental and DCC Food & Beverage. Approximately 80% of the Group's operating profit in the period was denominated in sterling. The average exchange rate at which sterling profits were translated during the period was Stg£0.8055 = €1, compared to an average translation rate of Stg£0.8851 = €1 for the same period in the prior year, a strengthening of 9% which resulted in a positive translation impact on Group operating profit of €4.5 million. Consequently, on a reported basis operating profit from continuing activities increased by 9%. Finance costs (net) Net finance costs for the period increased to €9.0 million (2011: €8.3 million) primarily as a result of the higher average net debt during the period of €313 million compared to €170 million during the six months ended 30 September 2011. The increase in average net debt was primarily due to the cash outlay on acquisitions in the previous 12 months of €199 million and dividends of €65 million offset by strong free cash flow generation, after interest, tax and net exceptionals, of €142 million in the same period. Profit before net exceptionals, amortisation of intangible assets and tax Profit before net exceptionals, amortisation of intangible assets and tax from continuing activities of €53.4 million increased by 0.7% on a constant currency basis (an increase of 9.1% on a reported basis). Net exceptional charge and amortisation of intangible assets The Group incurred a net exceptional charge before tax of €6.4 million as follows: €'m Acquisition and related costs (4.5) Reorganisation costs and other (1.9) Total (6.4) Acquisition and related costs include the professional and tax costs (such as stamp duty) relating to the evaluation and completion of acquisitions. During the first half these costs amounted to €4.5 million and include the legal and other professional costs relating to the review and ultimate clearance by the Competition Commission of the acquisition of the former Total oil distribution business in Britain. The charge for the amortisation of acquisition related intangible assets increased from €5.3 million to €8.7 million due to the acquisitions completed in the second half of the prior year. Taxation The effective tax rate for the Group in the first half decreased to 18% compared to 20% in the first half last year. The full year tax rate in the previous year was 18%. Adjusted earnings per share Adjusted earnings per share from continuing activities of 52.24 cent increased by 3.5% on a constant currency basis (an increase of 12.2% on a reported basis). Interim dividend increase of 7.5% The Board has decided to increase the interim dividend by 7.5% to 29.48 cent per share. This dividend will be paid on 30 November 2012 to shareholders on the register at the close of business on 16 November 2012. Cash flow As with its operating profit, the Group's cash flow is weighted towards its second half. The cash flow generated by the Group and the deployment of cash on acquisitions and dividends to shareholders for the six months ended 30 September 2012 can be summarised as follows: Six months ended 30 September 2012 2011 €'m €'m Operating profit 62.4 58.3 Increase in (15.7) (10.6) working capital Depreciation and 32.6 23.3 other Operating cash 79.3 71.0 flow Capital (33.3) (25.9) expenditure (net) Interest and tax (27.2) (33.7) paid Free cash flow 18.8 11.4 Acquisitions (95.6) (65.0) Disposals 14.4 - Dividends (42.4) (40.2) Exceptional items (14.4) (5.3) Share issues 0.5 0.9 Net outflow (118.7) (98.2) Opening net debt (128.2) (45.2) Translation 4.5 (2.1) Closing net debt (242.4) (145.5) Operating cash flow of €79.3 million compares to €71.0 million in the corresponding period. Working capital remained tightly controlled with net working capital days at 30 September 2012 reducing to 3.3 days from 5.4 days at 30 September 2011, the decrease being primarily driven by a reduction in debtor days. Acquisition and Capital Expenditure In the six months ended 30 September 2012, committed acquisition and capital expenditure amounted to €166.0 million, as follows: Acquisitions Capex Total €'m €'m €'m DCC Energy 117.3 16.7 134.0 DCC SerCom 4.3 1.4 5.7 DCC Healthcare 10.5 8.8 19.3 DCC Environmental - 5.5 5.5 DCC Food & 0.6 0.9 1.5 Beverage Total 132.7 33.3 166.0 Committed acquisition expenditure in the first half amounted to €132.7 million as follows: Acquisitions DCC Energy DCC Energy made significant strategic progress in expanding the scale and geographic presence of its LPG distribution business, committing circa €100 million to three acquisitions in Britain, Scandinavia and the Benelux region. In August 2012, DCC Energy agreed to acquire BP's LPG distribution business in Britain. This business supplies a wide range of industrial, commercial and domestic customers with an annual volume of approximately 87,000 tonnes of bulk and cylinder LPG and is highly complementary to Flogas, DCC's existing LPG business in Britain (which has annual sales volumes of approximately 190,000 tonnes). This acquisition, which was previously announced on 8 August 2012 and completed on 28 September 2012 is currently operating under a hold separate arrangement pending a review by the Office of Fair Trading. In September 2012, DCC Energy agreed to acquire BP's LPG distribution business in the Netherlands, together with the trade and assets of BP's smaller LPG distribution business in north Belgium ("Benegas"). Benegas is one of the leading suppliers of LPG in the Netherlands, selling approximately 55,000 tonnes per annum of bulk, cylinder and aerosol LPG to a broad range of industrial, commercial and domestic customers. This acquisition, DCC Energy's first in the Benelux region was previously announced on 21 September 2012 and completed on 31 October 2012. Also in September 2012, DCC Energy agreed to acquire the trade, fixed assets, stock and goodwill of the industrial LPG business of Statoil Fuel & Retail ASA in Sweden and Norway ("SFR LPG"). SFR LPG is the leading distributor of bulk LPG to industrial and commercial customers in Sweden and Norway and sells approximately 260,000 tonnes of LPG per annum. This acquisition, together with DCC Energy's existing oil distribution businesses in Denmark and Sweden, significantly increases the scale of DCC Energy's activities in Scandinavia. This acquisition was previously announced on 4 September 2012. Competition approval for the transaction has been received from the Swedish and Norwegian authorities and the acquisition is expected to complete in late 2012/early 2013. The acquisitions of Benegas and SFR LPG will extend DCC's LPG distribution business for the first time outside Britain and Ireland. These transactions follow acquisitions in recent years in oil distribution in Austria, Denmark and Sweden in pursuit of DCC Energy's vision to be the leading oil and LPG sales, marketing and distribution business in Europe. DCC Energy also acquired two smaller businesses during the period. In April 2012 it acquired Medical Gas Solutions Limited, a supplier of oxygen and analgesic gas cylinders to ambulance trusts in Britain, an activity complementary to the LPG distribution business. This acquisition was previously reported in DCC's Preliminary Results announcement of 15 May 2012. In August 2012, as part of its continuing development of a presence in the alternative energy sector, DCC Energy acquired, for modest initial consideration, Clearpower Limited, a small business providing biomass solutions and boilers to commercial customers in Britain and Ireland. DCC SerCom DCC SerCom made two modest acquisitions in line with its strategy to expand its range of IT and communications products. In May 2012, as reported in DCC's Interim Management Statement on 20 July 2012, DCC SerCom acquired Go Telecom BV, a small Dutch business providing products and services in unified communications (including hardware, software and services for audio, video and telepresence conferencing). In September 2012, DCC SerCom acquired a small distributor of Apple products in Ireland. DCC Healthcare In June 2012, in line with DCC Healthcare's strategy to broaden the range of services it provides to brand owners in the health & beauty sector and to expand its European customer base, it acquired Vitamex Manufacturing AB (formerly Midsona Manufacturing AB) ("Vitamex"). Vitamex provides product development, registration, manufacturing and packing services to a range of leading Swedish and international consumer healthcare and health & beauty brand owners. This acquisition was previously announced on 29 June 2012. The cash outflow on acquisitions in the six months to 30 September 2012 of €95.6 million includes only those acquisitions completed during the six months ended 30 September 2012 and deferred and contingent acquisition costs which had previously been provided for. Capital expenditure Net capital expenditure in the first half of €33.3 million (2011: €25.9 million) compares to a depreciation charge of €31.4 million (2011: €26.8 million). Disposals The disposal of DCC SerCom's Enterprise business, Altimate Group SA, was completed in June 2012 following competition clearance from the European Commission. Financial Strength DCC's financial position remains very strong. At 30 September 2012, the Group had net debt of €242.4 million and total equity of just over €1 billion. DCC has significant cash resources and undrawn committed long term debt facilities and its outstanding debt at 30 September 2012 had an average maturity of 4.5 years. Substantially all of the Group's debt has been raised in the US private placement market with an average credit margin of 1.23% over floating Euribor/Libor. Outlook As DCC enters its seasonally more significant second half, its full year guidance continues to be set against a weak economic environment and the important assumption that there will be a return to more normal winter temperatures compared to the extremely mild winter last year, which should give rise to a strong recovery in DCC Energy's operating profit. Overall the Group reiterates the guidance previously provided for the year to 31 March 2013 that operating profit and adjusted earnings per share on continuing activities, both on a constant currency basis, will be approximately 15% ahead of the prior year. On a reported basis this would result in an approximate 20% increase in operating profit and in adjusted earnings per share compared to the prior year, assuming an exchange rate of Stg£0.805 = €1. The Group remains very well placed to continue the development of its business in existing and new geographies. Operating review DCC Energy Change on prior year 2012 2011 Reported Constant Currency Revenue €4,751.8m €3,133.3m +51.7% +40.7% Operating profit €23.4m €18.7m +25.1% +14.8% DCC Energy had a strong start to the year, with operating profit 14.8% ahead of the prior year on a constant currency basis. The business benefited from organic volume growth and the relatively cooler first quarter. DCC Energy sold 4.4 billion litres of product during the period, an increase of 36.0% over the first half of the prior year, of which 2.9% was organic. Volumes in the oil business grew organically by 2.7% over the prior year. The relatively cooler weather in the first quarter drove increased demand for heating products, however this was somewhat offset by the poor weather conditions over the summer months which impacted demand from the agricultural sector. The business also achieved strong growth in transport fuels through its fuel card business. Whilst acquisitions in Britain completed in the prior year contributed significantly to revenue, as anticipated they did not make any profit contribution in the first half of the current year. In particular, the former Total oil distribution business (acquired in October 2011) did not contribute to operating profit in the first half as DCC was not in a position to integrate the business into its existing oil distribution operations until clearance was received from the UK competition authorities. In unconditionally clearing the Total acquisition, the Compeition Commission ("CC") concluded that the acquisition will not result in a substantial lessening of competition in the oil distribution market in Britain. The findings of the CC's report have provided greater clarity on the competitive conditions in the oil distribution market in Britain and provide a framework for DCC to consider when undertaking further acquisitions in this sector. As a result, DCC remains confident that it can pursue its objective of increasing its share of the oil distribution market in Britain to 20% over time. The LPG business had an excellent first half, achieving strong organic volume growth reflecting both the cooler weather in the first quarter and good growth in the commercial sector of the market. The business also benefited from a more favourable product pricing environment. During the first half, DCC Energy committed total expenditure of circa €100 million in the expansion of its LPG business through the acquisition of BP's businesses in Britain, the Netherlands and Belgium and the Statoil Fuel & Retail business in Scandinavia. These acquisitions significantly increase the scale and geographic scope of DCC Energy's LPG business in Europe. The BP LPG business in Britain is currently operating under a hold separate arrangement pending a review by the Office of Fair Trading of this acquisition. As DCC Energy enters the seasonally more significant second half, it expects to achieve a strong recovery in operating profit for the year to 31 March 2013 over the prior year. This expectation is framed against the important assumption that there will be a return to more normal winter temperatures compared to the extremely mild winter last year. DCC SerCom Continuing activities (excluding Altimate*) Change on prior year 2012 2011 Reported Constant Currency Revenue €922.2m €766.9m +20.3% +13.0% Operating profit €15.8m €14.2m +11.1% +4.0% Operating margin 1.7% 1.9% DCC SerCom achieved operating profit growth from continuing activities of 4.0% on a constant currency basis reflecting strong growth in both its IT and communications markets and its supply chain management business partially offset by difficult trading conditions in the home entertainment market in the UK and Ireland. In Britain and Ireland, the sales of PCs and tablets to the consumer and SME markets grew very strongly. The business also benefited from business development activities in its mobile communications business unit and is well placed to take advantage of the continuing convergence of the IT, consumer electronics and mobile markets. In the home entertainment market, sales of both games consoles and related software declined sharply reflecting the highly mature nature of the current games console product life cycle, underlying economic conditions and the decision of several software vendors to concentrate software releases closer to the Christmas period. In France, weak consumer demand led to margin pressure, although the business was successful in growing its trade with e-tail customers and has expanded its offering of consumer electronics products. Notwithstanding an anticipated continuation of challenging trading conditions in the home entertainment market, DCC SerCom is well placed to continue to develop its business on the back of the breadth of its supplier and customer relationships. * On 3 April 2012, DCC announced that it had reached agreement to dispose of Altimate Group SA, DCC SerCom's Enterprise distribution business. This disposal was completed in June 2012. DCC Healthcare Change on prior year 2012 2011 Reported Constant Currency Revenue €187.1m €153.8m +21.6% +13.3% Operating profit €12.1m €10.5m +14.9% +6.4% Operating margin 6.4% 6.8% DCC Healthcare achieved growth in operating profit of 6.4% on a constant currency basis with the benefit of development activity in the current year and prior year offsetting challenging market conditions, particularly in Ireland. DCC Hospital Supplies & Services, which operates in medical devices, pharma and value added logistics,performed satisfactorily. In medical devices,Forth Medical Group, a distributor of neurology, orthopaedic and niche surgical devices in Britain which was acquired in February 2012,performed in line with expectations. In Ireland, the budgetary constraints within the public healthcare system have resulted in continued price pressure, especially in more commoditised medical/surgical product categories. In pharma, excellent organic revenue and profit growth was achieved, particularly in the community pharmacy sector in Britain and Ireland, as DCC Healthcare continued to build on the platform created by the acquisition of Neolab's generic product licences in the prior year. The pharma business also made progress in the British hospital and Irish homecare sectors with new contract wins. DCC Health & Beauty Solutions, which provides outsourced solutions to nutrition and beauty brand owners, generated strong profit growth. In nutrition, the strong performance was driven by good organic profit growth together with a first time contribution from Vitamex Manufacturing, a leading Swedish contract manufacturer of nutrition products which was acquired in June 2012. Operating profit in DCC's beauty operations improved, driven by growth with new customers and good cost control. DCC Healthcare remains well placed for the year to 31 March 2013, which will have the full year benefit of recent development activity in pharma and medical devices. DCC Environmental Change on prior year 2012 2011 Reported Constant Currency Revenue €72.3m €65.4m +10.6% +1.8% Operating profit €7.8m €7.9m -0.4% -9.4% Operating margin 10.8% 12.0% DCC Environmental had a difficult first half, with operating profit 9.4% behind the prior year on a constant currency basis, as the business was impacted by a deterioration in the British waste management and recycling market. Results in Britain were impacted by falling recyclate commodity prices and increased price competition. In Ireland, continued tight control of costs resulted in the business performing broadly in line with the prior year. It is anticipated that market conditions in the waste management and recycling sector will remain difficult and DCC Environmental is responding by improving operational efficiencies throughout its business. DCC Food & Beverage Change on prior year 2012 2011 Reported Constant Currency Revenue €120.3m €132.0m -8.9% -10.6% Operating profit €3.3m €6.0m -44.2% -44.2% Operating margin 2.8% 4.5% As anticipated, DCC Food & Beverage experienced a decline in revenue and operating profit due to the loss of a major contract in the frozen and chilled logistics business in the second half of the prior year and the ongoing weakness in consumer demand. While its company owned brands (including Robert Roberts, Kelkin, Goodall's and YR) performed well, a challengingtrading environment with increased parallel and grey market sourcing by retailers further impacted the sales of some third party agency brands. As previously indicated, DCC Food & Beverage anticipates a continuation of the difficult trading environment in the second half and a consequent decline in operating profit for the year to 31 March 2013. 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 risks and uncertainties. DCC believes that its expectations and assumptions with respect to these forward-looking statements are reasonable; however because they involve risk and uncertainty, which are in some cases beyond DCC's control, actual results or performance may differ materially from those expressed or implied by such forward-looking statements. Principal Risks and Uncertainties The Board is responsible for the Group's risk management systems, which are designed to identify, manage and mitigate potential material risks to the achievement of the Group's strategic and business objectives. Details of the principal strategic, operational, compliance and financial risks facing the Group are set out on pages 62 and 63 of the 2012 Annual Report. These risks continue to be the principal risks and uncertainties facing the Group for the remaining six months of the financial year. Presentation of results and dial-in facility There will be a presentation of these results to analysts and investors/fund managers in Dublin at 9.00 am today. The slides for this presentation can be downloaded from DCC's website, www.dcc.ie. A dial-in facility will be available for this meeting: Ireland: 1800 946 811 UK: 0800 783 0906 International: +44 1296 480 100 / +353 1 242 1074 Passcode: 382 975 This announcement and further information on DCC is available at www.dcc.ie Group Income Statement Unaudited 6 months ended Unaudited 6 months ended Audited year ended 30 September 2012 30 September 2011 31 March 2012 Pre exceptionals Exceptionals Pre Pre exceptionals exceptionals (note 6) Total Exceptionals Total Exceptionals Total Notes €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 Revenue 5 6,053,650 - 6,053,650 4,395,045 - 4,395,045 10,690,341 - 10,690,341 Cost of sales (5,666,306) - (5,666,306) (4,075,294) - (4,075,294) (9,934,168) - (9,934,168) Gross profit 387,344 - 387,344 319,751 - 319,751 756,173 - 756,173 Administration expenses (139,395) - (139,395) (109,869) - (109,869) (266,950) - (266,950) Selling and distribution (190,579) - (190,579) (156,698) - (156,698) (317,281) - (317,281) expenses Other operating income 10,073 - 10,073 7,175 2,795 9,970 16,583 17,676 34,259 Other operating (5,041) (6,349) (11,390) (2,103) (10,695) (12,798) (3,499) (40,033) (43,532) expenses Operating profit before amortisation of intangible assets 62,402 (6,349) 56,053 58,256 (7,900) 50,356 185,026 (22,357) 162,669 Amortisation of intangible (8,703) - (8,703) - (5,337) (11,379) - (11,379) assets (5,337) Operating profit 5 53,699 (6,349) 47,350 52,919 (7,900) 45,019 173,647 (22,357) 151,290 Finance costs (26,507) - (26,507) (24,404) - (24,404) (50,447) - (50,447) Finance income 17,510 - 17,510 16,130 1,730 17,860 32,578 670 33,248 Share of associates' loss after (3) - (3) (27) (1,068) (1,095) (40) (1,068) (1,108) tax Profit before tax 44,699 (6,349) 38,350 44,618 (7,238) 37,380 155,738 (22,755) 132,983 Income tax expense 7 (7,813) - (7,813) (8,818) - (8,818) (27,703) (2,234) (29,937) Profit after tax for 36,886 (6,349) 30,537 (7,238) 28,562 128,035 (24,989) 103,046 35,800 the financial period Profit attributable to: Owners of the Parent 30,384 28,227 102,428 Non-controlling 153 335 618 interests Profit after tax for the financial period 30,537 28,562 103,046 Earnings per ordinary share Basic 8 36.37c 33.86c 122.78c Diluted 8 36.27c 33.75c 122.46c Adjusted earnings per ordinary share Basic 8 52.24c 47.53c 163.51c Diluted 8 52.09c 47.38c 163.09c Group Statement of Comprehensive Income Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2012 2011 2012 €'000 €'000 €'000 Profit for the period 30,537 28,562 103,046 Other comprehensive income: Currency translation effects 38,625 14,533 46,711 Group defined benefit pension obligations: - actuarial loss (469) (7,612) (8,791) - movement in deferred tax asset 42 997 1,178 (Losses)/gains relating to cash flow (64) (119) 189 hedges Movement in deferred tax liability on 99 43 11 cash flow hedges Other comprehensive income for the 38,233 7,842 39,298 period, net of tax Total comprehensive income for the 68,770 36,404 142,344 period Attributable to: Owners of the Parent 68,617 36,069 141,726 Non-controlling interests 153 335 618 68,770 36,404 142,344 Group Balance Sheet Unaudited Unaudited Audited 30 Sept. 30 Sept. 31 March 2012 2011 2012 Notes €'000 €'000 €'000 ASSETS Non-current assets Property, plant and equipment 506,362 409,918 451,097 Intangible assets 845,682 708,989 785,205 Investments in associates 1,170 1,186 1,173 Deferred income tax assets 3,436 9,783 6,397 Derivative financial instruments 148,042 150,804 134,531 1,504,692 1,280,680 1,378,403 Current assets Inventories 389,355 295,662 338,170 Trade and other receivables 1,198,308 1,026,838 1,291,698 Derivative financial instruments 9,019 2,356 4,294 Cash and cash equivalents 589,435 617,617 630,023 2,186,117 1,942,473 2,264,185 Assets classified as held for sale - - 142,614 2,186,117 1,942,473 2,406,799 Total assets 3,690,809 3,223,153 3,785,202 EQUITY Capital and reserves attributable to owners of the Parent Equity share capital 22,057 22,057 22,057 Share premium account 124,687 124,687 124,687 Other reserves - share options 10 12,061 9,999 11,086 Cash flow hedge reserve 10 1,222 911 1,187 Foreign currency translation reserve 10 (39,800) (110,603) (78,425) Other reserves 10 1,400 1,400 1,400 Retained earnings 917,619 877,590 929,331 1,039,246 926,041 1,011,323 Non-controlling interests 2,564 3,501 2,656 Total equity 1,041,810 929,542 1,013,979 LIABILITIES Non-current liabilities Borrowings 886,604 845,587 848,365 Derivative financial instruments 12,385 19,322 17,493 Deferred income tax liabilities 27,596 24,831 32,011 Retirement benefit obligations 12 14,416 23,740 14,745 Provisions for liabilities and charges 15,494 13,009 15,438 Deferred and contingent acquisition 69,475 73,322 85,271 consideration Government grants 1,823 2,151 2,458 1,027,793 1,001,962 1,015,781 Current liabilities Trade and other payables 1,473,234 1,179,858 1,533,882 Current income tax liabilities 30,106 40,828 38,813 Borrowings 87,391 48,502 70,999 Derivative financial instruments 2,511 2,898 1,020 Provisions for liabilities and charges 4,015 4,822 9,966 Deferred and contingent acquisition 23,949 14,741 13,428 consideration 1,621,206 1,291,649 1,668,108 Liabilities associated with assets - - 87,334 classified as held for sale 1,621,206 1,291,649 1,755,442 Total liabilities 2,648,999 2,293,611 2,771,223 Total equity and liabilities 3,690,809 3,223,153 3,785,202 Net debt included above (including cash attributable to asset held for sale) 11 (242,395) (145,532) (128,215) Group Statement of Changes in Equity For the six Attributable to owners of the Parent months ended 30 September 2012 Equity Share Other Non- share premium Retained reserves controlling Total capital account earnings (note 10) Total interests equity €'000 €'000 €'000 €'000 €'000 €'000 €'000 At beginning of 22,057 124,687 929,331 (64,752) 1,011,323 2,656 1,013,979 period Profit for the - - 30,384 30,384 153 30,537 period - Currency - - - 38,625 38,625 38,625 translation - Group defined benefit pension obligations: - actuarial - - (469) (469) (469) loss - - - movement in - - 42 42 42 deferred tax - - asset Losses relating - - - (64) (64) to cash flow (64) - hedges Movement in - - - 99 99 99 deferred tax - liability on cash flow hedges Total - - 29,957 38,660 68,617 153 68,770 comprehensive income Re-issue of - - 488 488 488 treasury shares - - Share based - - - 975 975 975 payment - Dividends - - (42,157) (42,157) (42,157) - - Other movements - - - - (245) (245) in - non-controlling interests At end of 22,057 124,687 917,619 (25,117) 1,039,246 2,564 1,041,810 period For the six Attributable to owners of the Parent months ended 30 September 2011 Equity Share Other Non- share premium Retained reserves controlling Total capital account earnings (note 10) Total interests equity €'000 €'000 €'000 €'000 €'000 €'000 €'000 At beginning of 22,057 124,687 895,108 (112,212) 929,640 2,234 931,874 period Profit for the - - 28,227 28,227 335 28,562 period - Currency - - - 14,533 14,533 14,533 translation - Group defined benefit pension obligations: - actuarial - - (7,612) (7,612) (7,612) loss - - - movement in - - 997 997 997 deferred tax - - asset Losses relating - - - (119) (119) (119) to cash flow - hedges Movement in - - - 43 43 deferred tax - 43 liability on cash flow hedges Total - - 21,612 14,457 36,069 335 36,404 comprehensive income Re-issue of - - 931 931 931 treasury shares - - Share based - - - (538) (538) (538) payment - Dividends - - (40,061) (40,061) (40,061) - - Other movements - - - - 932 932 in - non-controlling interests At end of 22,057 124,687 877,590 (98,293) 926,041 3,501 929,542 period For the year Attributable to owners of the Parent ended 31 March 2012 Equity Share Other Non- share premium Retained reserves controlling Total capital account earnings (note 10) Total interests equity €'000 €'000 €'000 €'000 €'000 €'000 €'000 At beginning of 22,057 124,687 895,108 (112,212) 929,640 2,234 931,874 period Profit for the - - 102,428 102,428 618 103,046 period - Currency - - 46,711 46,711 - 46,711 translation - Group defined benefit pension obligations: - actuarial - - (8,791) (8,791) - (8,791) loss - - movement in - - 1,178 1,178 - 1,178 deferred tax - asset Gains relating - - - 189 189 - to cash flow 189 hedges Movement in - - - 11 11 - deferred tax 11 liability on cash flow hedges Total - - 94,815 46,911 141,726 618 142,344 comprehensive income Re-issue of - - 2,372 2,372 - 2,372 treasury shares - Share based - - - 549 549 - payment 549 Dividends - - (62,964) (62,964) - (62,964) - Other movements - - - - (196) in - (196) non-controlling interests At end of 22,057 124,687 929,331 (64,752) 1,011,323 2,656 1,013,979 period Group Cash Flow Statement Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2012 2011 2012 €'000 €'000 €'000 Cash flows from operating activities Profit for the period 30,537 28,562 103,046 Add back non-operating expenses - tax 7,813 8,818 29,937 - share of loss from 3 1,095 1,108 associates - net operating 6,349 7,900 22,357 exceptionals - net finance costs 8,997 6,544 17,199 Group operating profit 53,699 52,919 173,647 before exceptionals Share-based payment 975 (538) 549 Depreciation 31,374 26,785 55,435 Amortisation of intangible 8,703 5,337 11,379 assets Profit on disposal of (575) (435) (838) property, plant and equipment Amortisation of government (325) (299) (604) grants Other 1,123 (2,085) (8,840) (Increase)/decrease in (15,659) (10,642) 46,594 working capital Cash generated from 79,315 71,042 277,322 operations Exceptionals (14,379) (5,254) (2,774) Interest paid (24,001) (20,064) (43,056) Income tax paid (18,431) (27,511) (49,829) Net cash flows from 22,504 18,213 181,663 operating activities Investing activities Inflows Proceeds from disposal of 1,812 2,023 4,614 property, plant and equipment Government grants received 14 - 13 Disposal of subsidiaries 14,376 - (1,285) Interest received 15,287 13,872 27,155 31,489 15,895 30,497 Outflows Purchase of property, plant (35,154) (27,971) (70,229) and equipment Acquisition of subsidiaries (82,631) (58,696) (160,076) Deferred and contingent (12,939) (6,331) (8,063) acquisition consideration paid (130,724) (92,998) (238,368) Net cash flows from (99,235) (77,103) (207,871) investing activities Financing activities Inflows Re-issue of treasury shares 488 931 2,372 Increase in finance lease 510 - - liabilities 998 931 2,372 Outflows Repayment of - (5,558) (6,091) interest-bearing loans and borrowings Repayment of finance lease (160) (319) (397) liabilities Dividends paid to owners of (42,157) (40,061) (62,964) the Parent Dividends paid to (245) (196) (196) non-controlling interests (42,562) (46,134) (69,648) Net cash flows from (41,564) (45,203) (67,276) financing activities Change in cash and cash (118,295) (104,093) (93,484) equivalents Translation adjustment 20,867 7,741 27,435 Cash and cash equivalents 600,079 666,128 666,128 at beginning of period Cash and cash equivalents 502,651 569,776 600,079 at end of period Cash and cash equivalents The story has been consists of: truncated, [TRUNCATED]
DCC PLC DCC Interim Results Six Months ended 30 September 2012
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