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DCC PLC (DCC)

  Print      Mail a friend       Annual reports

Tuesday 14 November, 2017

DCC PLC

Results for the six months ended 30 September 2017

RNS Number : 3787W
DCC PLC
14 November 2017
 

 

14 November 2017

DCC Reports Strong First Half of Performance and Development

 

DCC, the leading international sales, marketing and support services group, today announced its results for the six months ended 30 September 2017.

 

Highlights

2017

2016

% change

DCC LPG volumes (thousand tonnes1)

       645.6kT

555.4kT

+16.2%

DCC Retail & Oil volumes (billion litres)

6.011bn

5.581bn

+7.7%

Revenue - continuing2

(ex DCC LPG and DCC Retail & Oil)

£1.616bn

£1.389bn

+16.4%

Adjusted operating profit3 - continuing2

£122.5m

£107.1m

+14.4%

Adjusted earnings per share3 - continuing2

95.5p

82.2p

+16.1%

Interim dividend

40.89p

37.17p

+10.0%

Operating cash flow

£84.0m

£141.0m

 

Net debt

£112.3m

£112.2m

 

                               

·    Strong first half performance with Group adjusted operating profit on continuing activities increasing by 14.4% (up 9.7% on a constant currency basis) to £122.5 million, with all divisions recording growth on the prior year.

 

·     Adjusted earnings per share on continuing activities up 16.1% (11.5% ahead on a constant currency basis) to 95.5 pence.

 

·     Interim dividend increased by 10.0% to 40.89 pence per share.

 

·    The Group continues to be very active from a development perspective. Recently, DCC Retail & Oil completed the acquisition of Esso Retail Norway and DCC Technology completed the acquisition of MTR. DCC LPG remains on schedule to complete the acquisition of Shell Hong Kong & Macau before the end of the financial year.

 

·    In addition, on 7 November 2017, DCC LPG announced its agreement to acquire Retail West from NGL Energy Partners, for an enterprise value of $200 million (£152 million). This will be DCC LPG's first step into the very large US LPG market and is DCC's first substantial acquisition in North America.

 

·    Reflecting the announced acquisition activity to date, the Group's cash spend on acquisitions in the current financial year will be approximately £550 million.

 

·    The Group reiterates its belief that the year ending 31 March 2018 will be another year of profit growth and development.

 

 

1    1 tonne of LPG equivalent to 1,969 litres of oil

2    Continuing operations exclude DCC Environmental which was disposed of in May 2017
3    Excluding net exceptionals and amortisation of intangible assets  

 

 

Commenting on the results, Donal Murphy, Chief Executive, said:

 

"I am pleased to report that the first half of the year has been another very active and successful period for DCC. The business has performed strongly, with each of our divisions recording good growth, albeit in the seasonally less significant first half of the year.

 

DCC continues to be very active on the development front. The recent completion of the acquisitions of Esso Retail Norway and MTR demonstrate the continuing opportunity for DCC to redeploy the organic cash flow of the business into attractive acquisition opportunities in each of its chosen sectors. In addition, the recent announcement of the acquisition of Retail West marks another important milestone for the Group and will provide DCC with a substantial, high-quality, LPG footprint in the very large North American LPG market.

 

The Group continues to have the ambition and capacity for further development and, importantly, as DCC increases in scale and geographic reach, also has the opportunity to build substantial market positions in its chosen sectors.

 

The Group reiterates its belief that the year ending 31 March 2018 will be another year of profit growth and development."

 

 

 

Presentation of results and dial-in / webcast facility

There will be a presentation of these results to analysts and fund managers at 9.00 am today in the London Stock Exchange.  The slides for this presentation can be downloaded from DCC's website, www.dcc.ie.

 

There will also be audio conference access to, and a live webcast of, the presentation.  The access details for the presentation are:

 

Ireland:                                1800 937 656

UK / International:            +44 (0) 20 3427 1907

Passcode:                            3489165

Webcast Link:                   https://edge.media-server.com/m6/p/do8jgz5d 

 

This report, the webcast of the presentation and further information on DCC is available at www.dcc.ie.

 

 

 

For reference, please contact:

Donal Murphy, Chief Executive

                  Tel: +353 1 2799 400

Fergal O'Dwyer, Chief Financial Officer

        Email: [email protected]

Kevin Lucey, Head of Capital Markets

                                  Web: www.dcc.ie

 

For media enquiries: Powerscourt (Lisa Kavanagh) 

 

                      Tel: +44 207 250 1446

 

 

 

Group Results

A summary of the Group's results for the six months ended 30 September 2017 is as follows:

 

 

           2017

            £'m

          2016

           £'m

% change

 

 

 

 

Revenue  - continuing operations1

         6,449

         5,507

+17.1%

Adjusted operating profit2  - continuing operations1

 

 

 

DCC LPG

            44.1

            37.0

+19.2%

DCC Retail & Oil

            42.2

            39.0

+8.0%

DCC Healthcare

            22.0

            19.8

+11.6%

DCC Technology

            14.2

            11.3

+25.8%

Group adjusted operating profit2 - continuing operations1

         122.5

         107.1

                +14.4%

Finance costs (net) and other

          (15.6)

          (16.3)

 

Profit before net exceptionals, amortisation of intangible assets and tax

         106.9

            90.8

+17.8%

Net exceptional items before tax

            16.6

             (2.5)

 

Amortisation of intangible assets

          (20.5)

          (18.2)

 

Profit before tax

         103.0

            70.1

+46.9%

Taxation

           (13.2)

          (11.2)

 

Profit after tax

            89.8

            58.9

+52.5%

Profit after tax - discontinued operations

               0.8

               8.7

 

Non-controlling interests

             (1.9)

             (2.0)

 

Attributable profit

            88.7

            65.6

 

Adjusted earnings per share2- continuing1

              95.5 pence

             82.2 pence

+16.1%

Adjusted earnings per share2

            96.4 pence

            92.1 pence

 

Dividend per share

          40.89 pence

          37.17 pence

+10.0%

Operating cash flow

            84.0

         141.0

 

Net debt at 30 September

         112.3

         112.2

 

 

 

 

 

 

1 Continuing operations excludes DCC Environmental which was disposed of in May 2017

2 Excluding net exceptionals and amortisation of intangible assets

 

 

 

 

Revenue - continuing operations

Overall, Group revenue increased by 17.1% (13.2% ahead on a constant currency basis) to £6.4 billion.

Volumes in DCC LPG increased by 16.2% to 645,600 tonnes, driven principally by the acquisition of Gaz Européen which completed during the prior year. On a like-for-like basis, volumes were modestly ahead of the prior year, with good growth in Britain and Ireland. Reflecting acquisitions and the increased cost of product, DCC LPG's revenue increased by 36.5% (up 28.7% on a constant currency basis).

 

DCC Retail & Oil volumes increased by 7.7% to 6.0 billion litres, benefiting from the acquisition of Dansk Fuels which completed in November 2016. Organic volumes were in line with the prior year. Reflecting higher oil prices, DCC Retail & Oil's revenue increased by 15.5% (up 11.5% on a constant currency basis).

 

Revenue excluding DCC LPG and DCC Retail & Oil increased by 16.4% (up 13.7% on a constant currency basis) to £1.6 billion.  

 

Group adjusted operating profit - continuing operations

Group adjusted operating profit from continuing operations increased by 14.4% to £122.5 million (9.7% ahead on a constant currency basis), in the seasonally less significant first half. The average sterling/euro translation rate for the six months ended 30 September 2017 of 1.1391 was 7.9% weaker than the average of 1.2364 in the comparative period. Substantially all of the constant currency operating profit growth was organic.

 

Operating profit in DCC LPG was 19.2% ahead of the prior year (11.5% ahead on a constant currency basis), despite the headwind of an increasing cost of product and colder weather conditions in the early part of the prior year, with strong profit growth in France and good performances in Britain, Ireland and Scandinavia.   

 

Operating profit in DCC Retail & Oil was 8.0% ahead of the prior year (2.9% ahead on a constant currency basis), reflecting good organic profit growth from the oil distribution businesses in Denmark and Austria, and the retail and fuel card businesses also performing in line with expectations.

 

Operating profit in DCC Healthcare was 11.6% ahead of the prior year (10.9% ahead on a constant currency basis) and approximately one third of the constant currency growth was organic. DCC Vital benefited from a good performance in medical devices and also from the acquisition of Medisource, which completed in January 2017. DCC Health & Beauty Solutions again recorded very strong growth in nutritional products.

 

Operating profit in DCC Technology increased by 25.8% (24.9% ahead on a constant currency basis) in the seasonally less significant first half. The UK and Ireland business performed in line with expectations and benefited from the acquisition of Hammer, which completed in December 2016, and also benefited modestly from the acquisition of MTR in July 2017.

 

Finance costs (net)

Net finance costs decreased to £15.6 million (2016: £16.3 million), benefiting modestly from positive currency translation. The underlying finance costs of the Group are largely driven by the level of the Group's gross private placement debt, which was broadly in line with the prior year during the first half. In September 2017, the Group successfully completed the drawdown of a new £450 million private placement debt issuance which will result in an increase in the Group's gross debt for the second half of the year. Average net debt during the first half was £313 million compared to £262 million during the six months ended 30 September 2016.

 

Profit before net exceptional items, amortisation of intangible assets and tax

Profit before net exceptional items, amortisation of intangible assets and tax increased by 17.8% (13.0% ahead on a constant currency basis) to £106.9 million. 

 

Net exceptional items and amortisation of intangible assets

The Group recorded a net exceptional gain before tax and non-controlling interests of £16.6 million in the first six months of the year.

 

The net gain principally reflects the exceptional gain of approximately £30 million recorded on the sale of DCC's environmental division which completed on 31 May 2017, offset by acquisition and restructuring costs.  

 

Acquisition costs include the professional fees and tax costs (such as stamp duty) relating to the evaluation and completion of acquisition opportunities and amounted to £3.5 million. Restructuring costs amounted to £9.7 million and were principally incurred in the restructuring and integration work following the acquisition of Dansk Fuels and also the commissioning of the new national distribution centre in DCC Technology's UK business.

 

The charge for the amortisation of acquisition related intangible assets increased to £20.5 million from £18.2 million in the prior year, with the increase principally reflecting acquisitions completed in the prior year.

 

Profit before tax

Profit before tax increased by 46.9% to £103.0 million.

 

Taxation

The effective tax rate for the Group in the first half of the year of 18.0% is based on the anticipated mix of profits for the full year. This rate compares to a full year effective tax rate in the prior year of 17.5%. The increase is primarily due to an increase in the proportion of profits generated in Continental Europe.   

 

Discontinued operations

The Group's discontinued operations represent the activities of DCC Environmental which was disposed of in May 2017.

 

Adjusted earnings per share

Adjusted earnings per share on a continuing basis increased by 16.1% (11.5% ahead on a constant currency basis) to 95.5 pence.

 

Total adjusted earnings per share increased by 4.6% (0.6% ahead on a constant currency basis) to 96.4 pence.

 

Dividend

The Board has decided to pay an interim dividend of 40.89 pence per share, which represents a 10% increase on the prior year interim dividend of 37.17 pence per share. This dividend will be paid on 11 December 2017 to shareholders on the register at the close of business on 24 November 2017.

  

Cash flow

As with its operating profit, the Group's operating cash flow is significantly weighted towards the second half of the year. The cash flow of the Group for the six months ended 30 September 2017 can be summarised as follows:

 

Six months ended 30 September

 

2017

             £'m

 

2016

             £'m

 

 

 

 

 

Adjusted operating profit

 
123.5
 
117.8
 
 
 
 
 
Increase in working capital
 
   (79.8) 
 
   (17.0) 
Depreciation and other
 
  40.3
 
  40.2
 
 
 
 
 
Operating cash flow
 
84.0
 
141.0
 
 
 
 
 
Capital expenditure (net)
 
(69.1)
 
(59.8)
 
 
 
 
 
Free cash flow
 
14.9
 
81.2
 
 
 
 
 
Net interest, tax paid and other
 
(48.0)
 
(42.1)
 
 
 
 
 
Free cash flow after interest and tax
 
(33.1)
 
39.1
 
 
 
 
 
Acquisitions
 
(56.3)
 
(32.8)
Disposals
 
160.0
 
-
Dividends
 
(66.4)
 
(55.7)
Dividends paid to non-controlling interests
 
-
 
(5.1)
Exceptional items (net)
 
(15.2)
 
(8.8)
Share issues
 
3.3
 
2.1
 
 
 
 
 
Net outflow
 
(7.7)
 
(61.2)
 
 
 
 
 
Opening net debt
 
(121.9)
 
(54.5)
Translation and other
 
17.3
 
3.5
 
 
 
 
 
Closing net debt
 
(112.3)
 
(112.2)
 
 
 
 
 

 

Operating cash flow in the six months ended 30 September 2017 of £84.0 million compares to £141.0 million in the prior year.  Working capital increased by £79.8 million over the six month period from 31 March 2017, reflecting seasonal requirements, although on a like-for-like basis the value of working capital at 30 September 2017 at negative £70 million was broadly similar to that at 30 September 2016. Overall working capital days at 30 September 2017 increased to negative 1.7 days sales from negative 2.9 days sales in the prior year, reflecting the acquisitions completed in the second half of the prior year of Gaz Européen, Dansk Fuels and Hammer, each of which have a positive working capital days profile.

 

Committed acquisitions, disposal and capital expenditure

Committed acquisition and continuing capital expenditure in the current period amounted to £248.0 million as follows:

 

 

       Acquisitions

Capex

      Total

 

       £'m

      £'m

            £'m

DCC LPG

152.6

27.9

180.5

DCC Retail & Oil

7.7

25.5

33.2

DCC Healthcare

   -      

2.6

2.6

DCC Technology

19.9

11.8

31.7

 

 

 

 

Total

180.2

67.8

248.0

 

Acquisition activity

Committed acquisition expenditure amounted to £180.2 million and included:  

 

DCC LPG

Retail West

On 7 November 2017, DCC LPG announced that it had reached agreement with NGL Energy Partners LP ("NGL") to acquire its Retail West LPG division, Hicksgas LLC ("Retail West" or "the business"), based on an enterprise value of US$200 million (c. £152 million). 

 

The acquisition represents DCC LPG's entry into the US market and is a further significant step in DCC's strategy to build a global LPG business over time.  The US is one of the world's largest LPG markets and is an attractive and growing market. It is also highly fragmented, with over 4,000 LPG distribution businesses operating in the market. The acquisition of Retail West will provide DCC with a substantial, high-quality presence in the US with leading market positions in a number of states. The business has an excellent customer base, a strong and well-invested operational infrastructure and an experienced management team.

 

The transaction is expected to complete on 31 March 2018, following receipt of customary regulatory consents and separation from NGL.

 

Headquartered in Illinois, Retail West has been in business for over 70 years and currently employs 390 people. It sells approximately 130,000 tonnes4 of LPG annually from 43 customer service locations and 58 satellite facilities.  The business trades under three prominent regional brands, Hicksgas, Pacer Propane and Propane Central, and a number of smaller, local brands.  Retail West has leading market positions in Illinois, Indiana and Kansas and also operates in seven other states across the Mid-West and North-West regions.

 

The business has a long-established and loyal base of 65,000 customers. Approximately two thirds of annual volume is sold to residential customers, predominantly for heating purposes, with the balance sold to commercial and agricultural customers in both small and large bulk format.

 

Retail West has a well-invested asset base of approximately 100 bulk storage facilities and a company-owned distribution fleet of over 150 vehicles. Retail West also owns the majority of tanks on customer premises. 

 

The business has an experienced and long-serving management team who have a strong track record of delivering both organic and acquisition growth.  It has operated as a standalone division within NGL and will continue to operate and develop under the leadership of its existing management team, post completion of the acquisition.

 

Retail West is expected to initially deliver an annual EBITDA of approximately $285 million (£21 million) and EBITA of $205 million (£15 million). The acquisition will be earnings accretive from completion and the after tax cash payback will be approximately 10 years. The business is very well placed to continue its track record of profitable organic growth and also provides a base for synergistic acquisition activity, both of which would further enhance returns.  

 

4, 5     Assuming normal winter weather conditions

 

DCC Technology

MTR

In July 2017, DCC Technology acquired MTR Group Ltd ("MTR"), a fast growing UK based provider of second lifecycle solutions for mobile and tablet devices.

 

Based in Harlow, Essex and employing 60 people, MTR provides a broad range of services to retailers, mobile handset manufacturers and insurance companies to source and refurbish mobile phones and tablets for resale to customers in the UK and abroad. In the year ended 30 November 2016, MTR generated service revenues of £11 million. The acquisition of MTR advances the DCC Technology strategy of expanding its service proposition to vendors and customers and provides access to the high growth second lifecycle solutions market. 

 

The following acquisition, announced in the prior year, was completed after the balance sheet date:

 

DCC Retail & Oil

Esso Retail Norway

On 25 October 2017, DCC Retail & Oil completed the acquisition of Esso Retail Norway. The acquisition is another significant step for DCC in building its retail petrol station business in Europe. The national network sells c. 600 million litres of fuel annually and is the third largest in Norway with approximately 20% of retail volumes. It comprises 142 company-operated sites (127 retail service stations and 15 unmanned stations) and has contracts to supply 108 Esso-branded dealer owned stations. The total consideration was approximately NOK 2.43 billion (c. £235 million), plus the value of stock in tank at the date of acquisition, and was paid in cash on completion. The acquired business, which is substantially asset backed, is expected to generate a return on invested capital employed of approximately 15% in the first full year of ownership.

 

Full details of the acquisition were set out in DCC's Stock Exchange announcement of 7 February 2017.

 

Total cash spend on acquisitions in the six months ended 30 September 2017

The total cash spend on acquisitions in the six months ended 30 September 2017 was £56.3 million. This included the payment of deferred and contingent acquisition consideration previously provided of £12.0 million, pre-completion deposits in respect of both Esso Norway and Shell Hong Kong & Macau, the acquisition of MTR and the completion of a number of small acquisitions.

 

Disposal

DCC Environmental

On 31 May 2017, DCC completed the disposal of its Environmental division for an enterprise value of £219 million, on a debt-free, cash-free basis. The Environmental division, which is active in the treatment and recycling of non-hazardous and hazardous waste in Britain and Ireland, comprises the British businesses, William Tracey Group, Oakwood Fuels and Wastecycle, and Enva in Ireland.

 

Full details of the disposal were set out in DCC's Stock Exchange announcement of 5 April 2017.

 

Capital expenditure

Net capital expenditure for the six months of £69.1 million (2016: £59.8 million) compares to a depreciation charge of £44.3 million (2016: £42.9 million). Net capital expenditure on a continuing basis was £67.8 million.

 

The increase in net capital expenditure over the prior year principally reflects the increased scale of the Group and also increased investment by DCC Retail & Oil in the organic development of its retail site footprint and upgrading of its existing network.

 

The construction of DCC Technology's new, purpose built, 450,000 sq.ft. UK national distribution centre in the north of England is now complete. The facility has been commissioned and the relocation from the existing warehouses, which is taking place on a staged basis, has begun, with a number of the existing facilities now closed. The relocation will be completed during the next financial year. The related upgrade of the business' technology platform is ongoing and is being completed on a phased basis.

 

Financial strength

An integral part of the Group's strategy is the maintenance of a strong and liquid balance sheet to enable it to take advantage of development opportunities as they arise. At 30 September 2017, the Group had net debt of £112 million, total equity of £1.6 billion, cash resources, net of overdrafts, of £1.4 billion and a further £400 million of undrawn committed debt facilities. The Group's outstanding term debt at 30 September 2017 had an average maturity of 6.8 years. Substantially all of the Group's debt has been raised in the US private placement market with an average credit margin of 1.61% over floating Euribor/Libor.

 

Management and organisational changes

As set out in DCC's Stock Exchange announcement of 5 April 2017, Donal Murphy was appointed as Chief Executive of the Group on 14 July 2017.

 

DCC is now reporting its LPG and Retail & Oil businesses as separate divisions, consistent with the revised management and organisational structure of the Group. Henry Cubbon, who previously led DCC's LPG business, continues to lead the business as Divisional Managing Director. Eddie O'Brien, previously Managing Director of DCC's Retail and Fuelcard activities, has assumed responsibility for all Retail & Oil activities. The four divisional Managing Directors, of LPG, Retail & Oil, Healthcare and Technology, report to the Chief Executive.

 

Outlook

The Group reiterates its belief that the year ending 31 March 2018 will be another year of profit growth and development.

 

 

Performance Review - Divisional Analysis

 

DCC LPG

2017

2016

% change

Volumes (tonnes) 6

645.6kT

555.4kT

+16.2%

Revenue

£502.0m

£367.9m

+36.5%

Operating profit

£44.1m

£37.0m

+19.2%

Operating profit per tonne

£68.30

£66.61

 

 

DCC LPG delivered strong organic growth in the first half of the year with operating profit increasing by 19.2% to £44.1 million (11.5% ahead on a constant currency basis), modestly ahead of expectations. 

 

DCC LPG sold 645,600 tonnes of product, an increase of 16.2% over the prior year, largely driven by the acquisition of Gaz Européen in the second half of the prior year. On a like-for-like basis, volumes were modestly ahead of the prior year. During the first half of the year, DCC LPG grew its operations in the natural gas sector, as evidenced by the recent launch of a consumer natural gas offering in France, and continues to invest in oil to LPG conversions across industrial and commercial customer sectors.

 

The business in France performed strongly during the first half of the year, delivering modest organic volume growth. Despite the headwind of a rising cost of product and the anticipated seasonal impact of natural gas storage and transmission costs, the business generated strong operating profit growth due to good procurement and operational cost control. Gaz Européen, which provides natural gas to energy management companies, collective housing and public and service sector customers, and was acquired in January 2017, performed in line with expectations. The French business has also recently launched a consumer natural gas and electricity business, utilising Gaz Européen's operating platform and leveraging the strength of Butagaz's leading gas brand position. 

 

Both the British and Irish businesses performed in line with expectations during the first half and delivered good organic volume growth.  In Ireland, the business has continued to develop its natural gas and electricity offering. In Britain, the business benefited from its continuing focus on the conversion of industrial and commercial users of oil to LPG. Although more modest, the business in Scandinavia also achieved good operating profit growth.

 

Since the announcement of the agreement to acquire Shell's LPG business in Hong Kong & Macau in April 2017, the carve-out, integration planning and completion process has been progressing to plan. The acquisition is expected to complete by the end of the current financial year.

 

On 7 November 2017, DCC LPG announced its agreement to acquire Retail West, a substantial LPG business operating in the Mid-West and North-West states of the US. The business has an excellent customer base and operational infrastructure and will provide DCC LPG with a material footprint in the very large US energy market. The acquisition is expected to complete on 31 March 2018.

 

Following the completion of the acquisitions of Shell Hong Kong & Macau and Retail West, DCC LPG will operate in nine countries and is well positioned to continue its expansion in both current and new geographies.

 

6     1 tonne of LPG equivalent to 1,969 litres of oil

 

 

DCC Retail & Oil

2017

2016

% change

Volumes (litres)

6.011bn

5.581bn

+7.7%

Revenue

£4,331.6m

£3,750.9m

+15.5%

Operating profit

£42.2m

£39.0m

+8.0%

Operating profit per litre

0.70 ppl

0.70 ppl

 

 

DCC Retail & Oil recorded a good performance in the first half of the financial year, generating profit growth of 8.0% (2.9% ahead on a constant currency basis), in what was a very active development period for the business. DCC Retail & Oil completed both the acquisition and integration of Esso Retail Norway and also completed the restructuring and full integration of Dansk Fuels into its existing operations.

 

The volume growth of 7.7% was driven by the acquisition of Dansk Fuels, which completed in November 2016. Organically, volumes were in line with the prior year, notwithstanding the relatively colder weather conditions that prevailed in the prior year.  

 

In Britain, the business performed well, with good growth in commercial volumes offsetting lower heating volume demand. In the oil distribution market, the business continues to make good progress in expanding its activities into adjacent areas, such as lubricants and aviation.  The business has ambitions to develop a substantial unmanned retail network and continues this investment, opening eight new sites during the first half of the year, with a pipeline of further sites under consideration.  The Fuel Card business continued to perform strongly and grow its market share.

 

In Continental Europe, the Danish business delivered strong profit growth. Following the acquisition of Dansk Fuels in November 2016, the business has now been fully integrated into DCC Retail & Oil's existing operations in Denmark and Drogheda, Ireland. The Danish business now has leading market positions across the domestic, agricultural, commercial and aviation markets, in addition to operating 148 retail sites under the Shell brand.  In France, where DCC operates approximately 320 retail sites under the Esso brand, the business continued to invest in upgrading its sites and customer proposition and performed well in a more competitive market. Although more modest, both the Swedish and Austrian businesses performed strongly during the first half, delivering volume and profit growth.

 

In February 2017, DCC announced its agreement to acquire Esso's retail petrol station network in Norway. The national network sells c. 600 million litres of fuel annually and is the third largest in Norway with approximately 20% of retail volumes. It comprises 142 company-operated sites (127 retail service stations and 15 unmanned stations) and has contracts to supply 108 Esso-branded dealer owned stations. With the completion of the integration required to carve the network out of Exxon's global retail infrastructure, the transaction completed, ahead of schedule, in October 2017. 

 

Following the acquisition of Esso Retail Norway, DCC Retail & Oil now has substantial market positions across eight countries in Europe. In addition to its oil distribution and fuel card activities, DCC Retail & Oil has grown its retail footprint substantially in recent years and now operates a network of approximately 1,000 retail sites and supplies an additional 2,000 dealer-owned stations.

 


 

DCC Healthcare

2017

2016

% change

Revenue

£245.0m

£244.3m

+0.3%

Operating profit

£22.0m

£19.8m

+11.6%

Operating margin

9.0%

8.1%

 

 

DCC Healthcare recorded a strong performance in the first half of the year generating operating profit growth of 11.6% (10.9% ahead on a constant currency basis), with approximately one third of the constant currency operating profit growth being organic. The business benefited from the acquisition of Medisource in the prior year and continued its track record of strong organic profit growth in the medical device and nutrition sectors. 

 

DCC Vital, which is focused on the sales and marketing of medical devices and pharmaceuticals to healthcare providers in Britain and Ireland, achieved strong growth in operating profit.  In Ireland, the business generated strong growth in the supply of medical devices to the Irish hospital and community care sectors and also benefited from the acquisition of Medisource in January 2017, which has further expanded DCC Vital's product and service offering in Ireland. In Britain, the business generated good growth in the sales of medical consumables to the primary care sector although the trading environment for DCC Vital's pharma activities in Britain remains competitive, exacerbated by the fall in the value of sterling in the prior year.

 

DCC Health & Beauty Solutions, which provides outsourced solutions to international nutrition and beauty brand owners, again recorded excellent organic growth in the nutrition sector. The business delivered strong growth in sales to nutritional customers, particularly soft gels, as it continued to benefit from its focus on more complex product formulations and from increasing end-user demand in Britain, Continental Europe and Asia. In the beauty sector, the overall performance was held back somewhat by an unfavourable sales mix and some destocking by customers, although the business generated excellent growth in sachet filling, including into the US market.

 

DCC Health & Beauty Solutions is progressing a number of investment projects across its manufacturing activities which will add new capacity and product capability over the second half of this financial year and into next year, enhancing its ability to meet the growing market demand for its services. 

 

 

DCC Technology

2017

2016

% change

Revenue

£1.371bn

£1.144bn

+19.8%

Operating profit

£14.2m

£11.3m

+25.8%

Operating margin

1.0%

1.0%

 

 

DCC Technology achieved very strong operating profit growth of 25.8% (24.9% ahead on a constant currency basis), in the seasonally less significant first half of the year. The very strong performance was primarily driven by acquisitions completed in both the current and prior years. 

 

The UK and Ireland business performed very strongly and benefited from good growth in key product areas, such as smart home, enterprise and components, and from recent acquisitions.  Hammer, acquired in December 2016, has performed well since acquisition and has significantly strengthened DCC Technology's presence in the server, storage and related services markets.  The UK business has also enhanced its position in the audio visual market through both the acquisition of Medium, completed in December 2016, and the organic development of its vendor and product portfolio, particularly in the education sector. The business in Ireland achieved strong organic growth, driven by good business development in the mobile and retail sectors and growth in the sales of networking and security products.

 

DCC Technology continues to expand its service offering to customers and vendors and the acquisition of MTR Group, completed in July 2017, has significantly expanded the UK business' mobile device refurbishment and managed services capability and the business has performed well since acquisition. The new UK national distribution centre in Lancashire, a further enabler of the expansion in service offering, is now operational. The related upgrade of the business' technology platform is ongoing and is being completed on a phased basis.

 

In Continental Europe, the business in the Nordics generated good organic growth, driven by continued growth in IT, audio visual and entertainment products. In France, the French consumer products business remains challenging, but the business addressing the reseller and electrician markets performed well and is investing in its audio visual proposition.

 

The Supply Chain Services business continues to invest in its global service offering and achieved good organic profit growth as it benefited from new contract wins and effective cost control. 

  

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.

 

Principal risks and uncertainties

The Board of DCC is responsible for the Group's risk management and internal control systems, which are designed to identify, manage and mitigate potential material risks to the achievement of the Group's strategic and business objectives. The Board has approved a Risk Management Policy which sets out delegated responsibilities and procedures for the management of risk across the Group.

 

The principal risks and uncertainties facing the Group in the short to medium term, as set out on pages 15 to 17 of the 2017 Annual Report (together with the principal mitigation measures), continue to be the principal risks and uncertainties facing the Group for the remaining six months of the financial year.

 

This is not an exhaustive statement of all relevant risks and uncertainties. Matters which are not currently known to the Board or events which the Board considers to be of low likelihood could emerge and give rise to material consequences. The mitigation measures that are maintained in relation to these risks are designed to provide a reasonable and not an absolute level of protection against the impact of the events in question

Group Income Statement

                                                                                                                                                                                        

 

 

Unaudited 6 months ended

 

Unaudited 6 months ended

 

Audited year ended

 

 

 

30 September 2017

 

30 September 2016 (restated*)

 

31 March 2017

 

 

 

Pre exceptionals

Exceptionals

(note 6)

 

Total

 

Pre exceptionals

Exceptionals

(note 6)

 

Total

 

Pre exceptionals

Exceptionals

(note 6)

 

Total

 

 

Notes

£'000

£'000

£'000

 

£'000

£'000

£'000

 

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue 

5

6,449,472

-

6,449,472

 

5,507,286

-

5,507,286

 

12,269,802

-

12,269,802

 

Cost of sales

 

(5,836,484)

-

(5,836,484)

 

(4,963,253)

-

(4,963,253)

 

(11,006,805)

-

(11,006,805)

 

Gross profit

 

612,988

-

612,988

 

544,033

-

544,033

 

1,262,997

-

1,262,997

 

Administration expenses

 

(190,756)

-

(190,756)

 

(162,375)

-

(162,375)

 

(323,320)

-

(323,320)

 

Selling and distribution expenses

(297,685)

-

(297,685)

 

(278,593)

-

(278,593)

 

(605,182)

-

(605,182)

 

Other operating income

 

10,669

308

10,977

 

7,879

408

8,287

 

28,297

1,879

30,176

 

Other operating expenses

 

(12,718)

(13,434)

(26,152)

 

(3,849)

(4,824)

(8,673)

 

(17,787)

(38,176)

(55,963)

 

Operating profit before amortisation of

intangible assets

 

122,498

 

(13,126)

 

109,372

 

 

107,095

 

(4,416)

 

102,679

 

 

345,005

 

(36,297)

 

308,708

 

Amortisation of intangible assets

                (20,527)

-

(20,527)

 

               (18,178)

-

(18,178)

 

(39,130)

-

(39,130)

 

Operating profit

5

101,971

(13,126)

88,845

 

88,917

(4,416)

84,501

 

305,875

(36,297)

269,578

 

Finance costs

 

(34,508)

(2)

(34,510)

 

(35,676)

-

(35,676)

 

(72,910)

-

(72,910)

 

Finance income

 

18,832

-

18,832

 

19,163

1,901

21,064

 

40,973

10,101

51,074

 

Equity accounted investments' profit after tax

92

-

92

 

182

-

182

 

712

-

712

 

Profit before tax

 

86,387

(13,128)

73,259

 

72,586

(2,515)

70,071

 

274,650

(26,196)

248,454

 

Income tax expense

7

(13,353)

157

(13,196)

 

(10,837)

(386)

(11,223)

 

(44,113)

(1,756)

(45,869)

 

Profit for the period (continuing operations)

                  73,034

(12,971)

60,063

 

                 61,749

(2,901)

58,848

 

230,537

(27,952)

202,585

 

Profit for the period from discontinued operations                                                             8

                                 

                         790

 

29,742

 

30,532

 

 

                   8,719

 

                        -

 

8,719

 

 

15,160

 

-

 

15,160

 

Profit after tax for the financial period                         

                  73,824

16,771

90,595

 

                 70,468

(2,901)

67,567

 

245,697

(27,952)

217,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

Owners of the Parent

 

 

88,701

 

 

 

65,588

 

 

 

216,197

 

Non-controlling interests

 

 

 

1,894

 

 

 

1,979

 

 

 

1,548

 

 

 

90,595

 

 

 

67,567

 

 

 

217,745

 

Earnings per ordinary share

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

9

 

 

99.66p

 

 

 

73.95p

 

 

 

243.64p

 

Diluted earnings per share

9

 

 

99.21p

 

 

 

73.42p

 

 

 

242.00p

 

Basic adjusted earnings per share

9

 

 

96.36p

 

 

 

92.14p

 

 

 

303.68p

 

Diluted adjusted earnings per share

9

 

 

95.93p

 

 

 

91.48p

 

 

 

301.63p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per ordinary share - continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

9

 

 

65.36p

 

 

 

64.12p

 

 

 

226.56p

 

Diluted earnings per share

9

 

 

65.06p

 

 

 

63.66p

 

 

 

255.04p

 

Basic adjusted earnings per share

9

 

 

95.47p

 

 

 

82.23p

 

 

 

286.59p

 

Diluted adjusted earnings per share

9

 

 

95.04p

 

 

 

81.64p

 

 

 

284.66p

 

 

Group Statement of Comprehensive Income

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

6 months

 

6 months

 

year

 

 

 

ended

 

ended

 

ended

 

 

 

30 Sept.

 

30 Sept.

 

31 March

 

 

 

2017

 

2016

 

2017

 

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

Group profit for the period

 

90,595

 

67,567

 

217,745

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

Items that may be reclassified subsequently to profit or loss

 

 

 

 

 

 

Currency translation:

 

 

 

 

 

 

 

- arising in the period

 

17,714

 

38,453

 

37,084

 

- recycled to the Income Statement on disposal

 

(4,548)

 

-

 

-

 

Movements relating to cash flow hedges

 

20,292

 

9,409

 

(6,803)

 

Movement in deferred tax liability on cash flow hedges

 

(3,570)

 

(1,504)

 

1,334

 

 

29,888

 

46,358

 

31,615

 

Items that will not be reclassified to profit or loss

 

 

 

 

 

 

Group defined benefit pension obligations:

 

 

 

 

 

 

- remeasurements

1,702

 

(8,014)

 

(3,056)

 

- movement in deferred tax asset

(268)

 

1,227

 

413

 

 

1,434

 

(6,787)

 

(2,643)

 

 

 

 

 

 

 

 

Other comprehensive income for the period, net of tax

31,322

 

39,571

 

28,972

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

121,917

 

107,138

 

246,717

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

Owners of the Parent

 

119,122

 

102,678

 

242,735

 

Non-controlling interests

 

2,795

 

4,460

 

3,982

 

 

 

 

 

 

 

 

 

 

 

121,917

 

107,138

 

246,717

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

Continuing operations

 

95,933

 

97,165

 

230,199

 

Discontinued operations

 

25,984

 

9,973

 

16,518

 

 

 

 

 

 

 

 

 

 

 

121,917

 

107,138

 

246,717

 

                           
 

Group Balance Sheet

 

 

Unaudited

 

Unaudited

 

Audited

 

 

30 Sept.

 

30 Sept.

 

31 March

 

 

2017

 

2016

 

2017

 

Notes

£'000

 

£'000

 

£'000

ASSETS

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Property, plant and equipment

 

789,947

 

778,618

 

750,020

Intangible assets

 

1,478,296

 

1,345,082

 

1,422,572

Equity accounted investments

 

24,632

 

26,019

 

24,938

Deferred income tax assets

 

23,128

 

22,802

 

22,619

Derivative financial instruments

 

180,109

 

271,609

 

273,767

 

 

2,496,112

 

2,444,130

 

2,493,916

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Inventories

 

548,903

 

435,716

 

456,395

Trade and other receivables

 

1,204,122

 

997,017

 

1,222,597

Derivative financial instruments

 

18,479

 

37,132

 

18,233

Cash and cash equivalents

 

1,497,061

 

1,138,953

 

1,048,064

 

 

3,268,565

 

2,608,818

 

2,745,289

Assets classified as held for sale

 

-

 

-

 

193,170

 

 

3,268,565

 

2,608,818

 

2,938,459

 

 

 

 

 

 

 

Total assets

 

5,764,677

 

5,052,948

 

5,432,375

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

Capital and reserves attributable to owners of the Parent

 

 

 

 

Share capital

 

15,455

 

15,455

 

15,455

Share premium

 

277,211

 

277,211

 

277,211

Share based payment reserve

11

20,077

 

16,369

 

18,146

Cash flow hedge reserve

11

3,141

 

(207)

 

(13,581)

Foreign currency translation reserve

11

117,802

 

106,859

 

105,537

Other reserves

11

932

 

932

 

932

Retained earnings

 

1,101,502

 

953,462

 

1,074,434

Equity attributable to owners of the Parent

 

1,536,120

 

1,370,081

 

1,478,134

Non-controlling interests

 

32,382

 

30,238

 

29,587

Total equity

 

1,568,502

 

1,400,319

 

1,507,721

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

Borrowings

 

1,680,507

 

1,385,011

 

1,319,967

Derivative financial instruments

 

5,610

 

-

 

506

Deferred income tax liabilities

 

157,222

 

140,811

 

155,297

Post employment benefit obligations

13

(4,862)

 

7,045

 

29

Provisions for liabilities

 

258,909

 

233,079

 

255,650

Acquisition related liabilities

 

71,644

 

80,548

 

66,617

Government grants

 

257

 

752

 

261

 

 

2,169,287

 

1,847,246

 

1,798,327

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade and other payables

 

1,831,926

 

1,536,255

 

1,820,517

Current income tax liabilities

 

11,915

 

26,187

 

25,051

Borrowings

 

118,359

 

172,274

 

148,445

Derivative financial instruments

 

3,511

 

2,574

 

5,894

Provisions for liabilities

 

32,389

 

33,860

 

31,022

Acquisition related liabilities

 

28,788

 

34,233

 

28,300

 

 

2,026,888

 

1,805,383

 

2,059,229

Liabilities associated with assets classified as held for sale

 

-

 

-

 

67,098

 

 

2,026,888

 

1,805,383

 

2,126,327

Total liabilities

 

4,196,175

 

3,652,629

 

3,924,654

 

 

 

 

 

 

 

Total equity and liabilities

 

5,764,677

 

5,052,948

 

5,432,375

 

 

 

 

 

 

 

Net debt included above (including cash attributable

to assets held for sale)

 

12

 

(112,338)

 

 

(112,165)

 

 

(121,949)

 

 

Group Statement of Changes in Equity

 

For the six months ended 30 September 2017

Attributable to owners of the Parent

 

 

 

 

 

 

Other

 

Non-

 

 

Share

Share

Retained

reserves

 

controlling

Total

 

capital

premium

earnings

(note 11)

Total

interests

equity

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

At 1 April 2017

        15,455

277,211

1,074,434

  111,034

1,478,134

          29,587

1,507,721

 

 

 

 

 

 

 

 

Profit for the period

-

-

        88,701

                   -

        88,701

             1,894

        90,595

Currency translation:

 

 

 

 

 

 

 

- arising in the period

                      -

                           -

                      -

     16,813

        16,813

               901

       17,714

- recycled to the Income Statement on disposal

                       -

                            -

                       -

      

(4,548)

       

   (4,548)

                         -

          (4,548)

Group defined benefit pension obligations:

                       

                            

                        

 

                        

 

 

- remeasurements

                      -

-

           1,702

                   -

           1,702

                        -

           1,702

- movement in deferred tax asset

                      -

-

              (268)

                   -

              (268)

                        -

             (268)

Movements relating to cash flow hedges

                      -

-

                      -

     20,292

        20,292

                        -

       20,292

Movement in deferred tax liability on cash flow hedges

                       -

 

-

                       -

      

(3,570)

        

  (3,570)

                         -

          (3,570)

Total comprehensive income

                      -

-

        90,135

     28,987

     119,122

             2,795

    121,917

Re-issue of treasury shares

                      -

-

           3,309

                   -

           3,309

                        -

          3,309

Share based payment

                      -

-

                      -

        1,931

           1,931

                        -

          1,931

Dividends

                      -

-

       (66,376)

                   -

       (66,376)

                        -

      (66,376)

At 30 September 2017

        15,455

277,211

1,101,502

  141,952

1,536,120

          32,382

1,568,502

 

For the six months ended 30 September 2016

Attributable to owners of the Parent

 

 

 

 

 

 

 

Other

 

Non-

 

 

 

 

Share

Share

Retained

reserves

 

controlling

Total

 

 

 

capital

premium

earnings

(note 11)

Total

interests

equity

 

 

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

At 1 April 2016

        15,455

277,211

     948,316

     78,661

1,319,643

          30,833

1,350,476

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

-

-

        65,588

                   -

        65,588

             1,979

        67,567

 

 

Currency translation

                      -

                           -

                      -

     35,972

        35,972

             2,481

        38,453

 

 

Group defined benefit pension obligations:

                        

                            

                        

 

                        

 

 

 

 

- remeasurements

                      -

-

          (8,014)

                   -

          (8,014)

                        -

          (8,014)

 

 

- movement in deferred tax asset

                      -

-

           1,227

                   -

           1,227

                         -

           1,227

 

 

Movements relating to cash flow hedges

                      -

-

                      -

        9,409

           9,409

                        -

           9,409

 

 

Movement in deferred tax liability on cash flow hedges

                      -

-

                      -

       (1,504)

          (1,504)

                         -

          (1,504)

 

 

Total comprehensive income

                      -

-

        58,801

     43,877

     102,678

             4,460

     107,138

 

 

Re-issue of treasury shares

                      -

-

           2,065

                   -

           2,065

                        -

           2,065

 

 

Share based payment

                      -

-

                      -

        1,415

           1,415

                        -

           1,415

 

 

Dividends

                      -

-

       (55,720)

                   -

       (55,720)

            (5,055)

       (60,775)

 

 

At 30 September 2016

        15,455

277,211

     953,462

  123,953

1,370,081

          30,238

1,400,319

 

 

For the year ended 31 March 2017

 

Attributable to owners of the Parent

 

 

 

 

 

 

Other

 

Non-

 

 

Share

Share

Retained

reserves

 

controlling

Total

 

capital

premium

earnings

(note 11)

Total

interests

equity

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

At 1 April 2016

        15,455

277,211

     948,316

     78,661

1,319,643

          30,833

1,350,476

 

 

 

 

 

 

 

 

Profit for the financial year

-

-

     216,197

                   -

     216,197

             1,548

    217,745

Currency translation

                      -                             

                           -

                      -

     34,650

        34,650

             2,434

       37,084

Group defined benefit pension obligations:

                        

                             

                        

 

                        

 

 

- remeasurements

                       -

-

          (3,056)

                   -

          (3,056)

                        -

         (3,056)

- movement in deferred tax asset

                       -

-

                413

                  -

                413

                        -

               413

Movements relating to cash flow hedges

                       -

-

                      -

       (6,803)

          (6,803)

                        -

         (6,803)

Movement in deferred tax liability on cash flow hedges

                       -

-

                      -

        1,334

           1,334

                        -

           1,334

Total comprehensive income

                       -

-

     213,554

     29,181

     242,735

             3,982

     246,717

Re-issue of treasury shares

                       -

-

           2,600

                   -

           2,600

                       -

           2,600

Share based payment

                       -

-

                      -

        3,192

           3,192

                        -

           3,192

Dividends

                       -

-

       (90,036)

                   -

       (90,036)

            (5,228)

      (95,264)

At 31 March 2017

        15,455

277,211

1,074,434

  111,034

1,478,134

          29,587

1,507,721

                               
 

Group Cash Flow Statement

 

 

Unaudited

 

Unaudited

 

Audited

 

 

6 months

 

6 months

 

year

 

 

ended

 

ended

 

ended

 

 

30 Sept.

 

30 Sept.

 

31 March

 

 

2017

 

2016

 

2017

 

Note

£'000

 

£'000

 

£'000

Cash flows from operating activities

 

 

 

 

 

 

Profit for the period

 

90,595

 

67,567

 

217,745

Add back non-operating expenses/(income)

 

 

 

 

 

 

-  tax

 

13,370

 

13,071

 

49,054

-  share of equity accounted investments' profit

 

(92)

 

(182)

 

(712)

-  net operating exceptionals

 

(16,616)

 

4,416

 

36,297

-  net finance costs

 

15,694

 

14,685

 

21,999

Group operating profit before exceptionals

 

102,951

 

99,557

 

324,383

Share-based payments expense

 

1,931

 

1,415

 

3,192

Depreciation

 

44,263

 

42,913

 

92,015

Amortisation of intangible assets

 

20,527

 

18,266

 

39,168

(Profit)/loss on disposal of property, plant and equipment

 

(312)

 

369

 

(173)

Amortisation of government grants

 

(16)

 

(101)

 

(235)

Other

 

(5,552)

 

(4,334)

 

4,571

(Increase)/decrease in working capital

 

(79,817)

 

(17,046)

 

83,949

Cash generated from operations before exceptionals

 

83,975

 

141,039

 

546,870

Exceptionals

 

(15,197)

 

(8,752)

 

(31,269)

Cash generated from operations

 

68,778

 

132,287

 

515,601

Interest paid

 

(32,457)

 

(33,313)

 

(70,108)

Income tax paid

 

(35,905)

 

(28,122)

 

(62,180)

Net cash flows from operating activities

 

416

 

70,852

 

383,313

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

Inflows:

 

 

 

 

 

 

Proceeds from disposal of property, plant and equipment

 

2,525

 

6,076

 

12,315

Dividends received from equity accounted investments

 

1,317

 

121

 

125

Disposal of subsidiaries and equity accounted investments

8

160,054

 

-

 

-

Interest received

 

19,001

 

19,191

 

40,966

 

 

182,897

 

25,388

 

53,406

Outflows:

 

 

 

 

 

 

Purchase of property, plant and equipment

 

(71,592)

 

(65,878)

 

(143,698)

Acquisition of subsidiaries

14

(44,313)

 

(6,609)

 

(203,327)

Payment of accrued acquisition related liabilities

 

(12,014)

 

(26,200)

 

(59,069)

 

 

(127,919)

 

(98,687)

 

(406,094)

Net cash flows from investing activities

 

54,978

 

(73,299)

 

(352,688)

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

Inflows:

 

 

 

 

 

 

Proceeds from issue of shares

 

3,309

 

2,065

 

2,600

Net cash inflow on derivative financial instruments

 

13,914

 

1,002

 

14,212

Increase in interest-bearing loans and borrowings

 

458,593

 

-

 

-

 

 

475,816

 

3,067

 

16,812

Outflows:

 

 

 

 

 

 

Repayment of interest-bearing loans and borrowings

 

(58,132)

 

(29,895)

 

(108,140)

Repayment of finance lease liabilities

 

(6)

 

(79)

 

(177)

Dividends paid to owners of the Parent

10

(66,376)

 

(55,720)

 

(90,036)

Dividends paid to non-controlling interests

 

-

 

(5,055)

 

(5,228)

 

 

(124,514)

 

(90,749)

 

(203,581)

Net cash flows from financing activities

 

351,302

 

(87,682)

 

(186,769)

 

 

 

 

 

 

 

Change in cash and cash equivalents

 

406,696

 

(90,129)

 

(156,144)

Translation adjustment

 

(650)

 

43,894

 

38,929

Cash and cash equivalents at beginning of period

 

972,822

 

1,090,037

 

1,090,037

Cash and cash equivalents at end of period

 

1,378,868

 

1,043,802

 

972,822

 

 

 

 

 

 

 

Cash and cash equivalents consists of:

 

 

 

 

 

 

Cash and short-term bank deposits

 

1,497,061

 

1,138,953

 

1,048,064

Overdrafts

 

(118,193)

 

(95,151)

 

(88,041)

Cash and short-term deposits attributable to assets held for sale

 

-

 

-

 

12,799

 

 

1,378,868

 

1,043,802

 

972,822

 

 

Notes to the Condensed Financial Statements

for the six months ended 30 September 2017

 

 

1.             Basis of Preparation

 

The Group condensed interim financial statements which should be read in conjunction with the annual financial statements for the year ended 31 March 2017 have been prepared in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007, the related Transparency rules of the Irish Financial Services Regulatory Authority and in accordance with International Accounting Standard 34, Interim Financial Reporting (IAS 34) as adopted by the European Union.

 

The preparation of the interim financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of certain assets, liabilities, revenues and expenses together with disclosure of contingent assets and liabilities.  Estimates and underlying assumptions are reviewed on an ongoing basis. 

 

These condensed interim financial statements for the six months ended 30 September 2017 and the comparative figures for the six months ended 30 September 2016 are unaudited and have not been reviewed by the Auditors.  The summary financial statements for the year ended 31 March 2017 represent an abbreviated version of the Group's full accounts for that year, on which the Auditors issued an unqualified audit report and which have been filed with the Registrar of Companies

 

 

2.             Accounting Policies

 

The accounting policies and methods of computation adopted in the preparation of the Group condensed interim financial statements are consistent with those applied in the 2017 Annual Report and are described in those financial statements on pages 179 to 187. There were no new standards effective for the Group during the period ended 30 September 2017.

 

The Group has not applied certain new standards, amendments and interpretations to existing standards that have been issued but are not yet effective, the most significant of which are as follows:

 

Amendments to IAS 7 Statement of Cash Flows - Disclosure Initiative (not yet EU endorsed):

These amendments are intended to improve the information provided to users of financial statements regarding the entity's financing activities.

 

Amendments to IAS 12 Income Taxes - Recognition of Deferred Tax Assets for Unrealised Losses (not yet EU endorsed):

These amendments clarify, inter alia, that unrealised losses on debt instruments measured at fair value (and measured at cost for tax purposes) give rise to a deductible temporary difference regardless of whether the instrument is recovered through sale or by holding it to maturity or whether it is probable that the issuer will pay all contractual cash flows. Entities are therefore required to recognise deferred taxes for temporary differences from unrealised losses of debt instruments measured at fair value if all other recognition criteria for deferred taxes are met.

 

IFRS 9 Financial Instruments (effective date: DCC financial year beginning 1 April 2018):

This standard is designed to replace IAS 39 Financial Instruments: Recognition and Measurement and has been completed in a number of phases with the final version issued by the IASB in July 2014 and endorsed by the EU in November 2016. The Standard includes requirements for recognition and measurement, classification, and de-recognition of financial instruments, a new expected credit loss model for calculating impairment on financial assets and new rules for hedge accounting.

 

The new impairment model requires the recognition of impairment provisions based on expected credit losses rather than only incurred credit losses as is the case under IAS 39. It applies to financial assets classified at amortised cost, contract assets under IFRS 15 Revenue from Contracts with Customers, lease receivables, loan commitments and certain financial guarantee contracts. While the Group has not yet completed a detailed assessment of how its impairment provisions would be affected by the new model, it may result in an earlier recognition of credit losses.

 

The new hedge accounting rules will align the accounting for hedging instruments more closely with the Group's risk management practises. As a general rule, more hedge relationships may be eligible for hedge accounting, as the standard introduces a more principles-based approach. The Group has performed an initial assessment on the impact of IFRS 9, and it would appear that the Group's current hedge relationships would continue to qualify as hedges upon the adoption of IFRS 9. Accordingly, the Group does not expect a significant impact on the accounting for its hedging relationships.

 

The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature and extent of the Group's disclosures about its financial instruments particularly in the first year of adoption of the new standard. The Group will apply IFRS 9 from its effective date.

 
IFRS 15 Revenue from Contracts with Customers (effective date: DCC financial year beginning 1 April 2018):

This standard will replace IAS 18 Revenue, IAS 11 Construction Contracts and related interpretations. IFRS 15 was endorsed by the EU in September 2016. The standard establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. It specifies how and when revenue should be recognised as well as requiring enhanced disclosures. Revenue is recognised when an identified performance obligation has been met and the customer can direct the use of, and obtain substantially all the remaining benefits from, a good or service as a result of obtaining control of that good or service.

 

The Group is continuing to assess the potential impact resulting from the application of IFRS 15. The Group will apply IFRS 15 from its effective date.

 

IFRS 16 Leases (effective date: DCC financial year beginning 1 April 2019):

This standard will replace IAS 17 Leases. IFRS 16 is not yet endorsed by the EU. The changes under IFRS 16 are significant and will predominantly affect lessees, the accounting for which is substantially reformed. The lessor accounting requirements contained in IFRS 16's predecessor, IAS 17, will remain largely unchanged. The main impact on lessees is that almost all leases will be recognised on the balance sheet as the distinction between operating and finance leases is removed for lessees. Under IFRS 16, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The only exemptions are short-term and low-value leases. The standard introduces new estimates and judgemental thresholds that affect the identification, classification and measurement of lease transactions. More extensive disclosures, both qualitative and quantitative, are also required.

 

At transition date, the Group will calculate the lease commitments outstanding at that date and apply appropriate discount rates to calculate the present value of the lease commitment which will be recognised as a liability and a right of use asset on the Group's Balance Sheet. In the Income Statement, the Group currently recognises operating lease rentals in operating expenses. Under the new standard, a right of use asset will be capitalised and depreciated over the term of the lease with an associated finance cost applied annually to the lease liability.

 

As detailed in note 5.4 of the 2017 Annual Report, the Group's future minimum rentals payable under non-cancellable operating leases at 31 March 2017 amounted to £236.7 million and the charge recognised in the Income Statement for the year ended 31 March 2017 amounted to £51.7 million. These amounts provide an indication of the scale of leases held at 31 March 2017 but should not be used as a proxy for the impact of IFRS 16 on the Consolidated Balance Sheet as a number of factors impact the calculation such as the discount rate, the expected term of leases including renewal options and exemptions for short-term leases and low-value leases.

 

The Group is continuing to assess its portfolio of leases to calculate the impact of the new standard. The Group will apply IFRS 16 from its effective date, subject to EU endorsement.

 

 

3.            Going Concern

 

Having reassessed the principal risks facing the Group (as detailed on pages 15 to 17 of the 2017 Annual Report), the Directors believe that the Group is well placed to manage these risks successfully.

 

The Directors have a reasonable expectation that DCC plc, and the Group as a whole, has adequate resources to continue in operational existence for the foreseeable future, a period of not less than twelve months from the date of this report.  For this reason, the Directors continue to adopt the going concern basis of accounting in preparing the condensed interim financial statements.

 

4.            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 period, 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

 

 

 

        6 months

      6 months

               Year

 

        6 months

      6 months

               Year

 

             ended

           ended

           ended

 

             ended

           ended

           ended

 

          30 Sept.

         30 Sept.

       31 March

 

          30 Sept.

         30 Sept.

       31 March

 

               2017

               2016

               2017

 

               2017

               2016

               2017

 

            Stg£1=

            Stg£1=

            Stg£1=

 

            Stg£1=

            Stg£1=

            Stg£1=

 

 

 

 

 

 

 

 

Euro

             1.1391

             1.2364

             1.1956

 

             1.1340

             1.1614

             1.1689

Swedish Krona

           10.9425

           11.5928

           11.3729

 

           10.9424

           11.1742

           11.1423

Danish Krone

             8.4795

             9.2173

             8.9150

 

             8.4399

             8.6542

             8.6942

Norwegian Krone

           10.6565

           11.5655

           10.9811

 

           10.6742

           10.4373

           10.7169

                           

 

 

5.             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. The chief operating decision maker has been identified as Mr. Donal Murphy, Chief Executive and his executive management team. 

 

As announced on 31 May 2017, the Group completed the disposal of its Environmental division. In addition, and as noted in the Group's results for the year ended 31 March 2017, DCC is presenting DCC LPG and DCC Retail & Oil as separate reportable segments from 1 April 2017, in line with the revised management and organisational structures of the businesses. Previously, these two segments comprised the Group's former DCC Energy segment. Following these changes in the composition of operating segments, segmental reporting has been revised and the comparative disclosures have been restated as required under IFRS 8.

 

The Group is organised into four operating segments: DCC LPG, DCC Retail & Oil, DCC Healthcare and DCC Technology.

 

DCC LPG is a leading liquefied petroleum gas ('LPG') sales and marketing business in Europe, with a developing business in the retailing of natural gas.

 

DCC Retail & Oil is a leader in the sales, marketing and retailing of transport fuels and commercial fuels, heating oils and related products and services in Europe.

 

DCC Healthcare is a leading healthcare business, providing products and services to healthcare providers and health and beauty brand owners.

 

DCC Technology is a leading route-to-market and supply chain partner for global technology brands.

 

The chief operating decision maker monitors the operating results of segments separately in order 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. 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.

 

The consolidated total assets of the Group as at 30 September 2017 amounted to £5.765 billion. This figure was not materially different from the equivalent figure at 31 March 2017 (apart from cash and derivative financial instruments which are managed centrally) and therefore the related segmental disclosure note has been omitted in accordance with IAS 34 Interim Financial Reporting.

 

Intersegment revenue is not material and thus not subject to separate disclosure.

     

An analysis of the Group's performance by segment and geographic location is as follows:

 

 

 

(a)           By operating segment

 

 

 

 

 

                                  Unaudited six months ended 30 September 2017

 

                                                               

  DCC LPG   DCC Retail & Oil   DCC Healthcare   DCC Technology   Total

 

£'000

 

£'000

 

          £'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

Segment revenue

501,951

 

   4,331,596

 

      244,995

 

1,370,930

 

6,449,472

 

 

 

 

 

 

 

 

 

 

Adjusted operating profit*

44,077

 

42,159

 

        22,047

 

14,215

 

      122,498

Amortisation of intangible assets

(10,562)

 

(3,944)

 

         (3,676)

 

(2,345)

 

       (20,527)

Net operating exceptionals (note 6)

(602)

 

(4,376)

 

         (1,324)

 

(6,824)

 

       (13,126)

Operating profit

32,913

 

33,839

 

        17,047

 

5,046

 

        88,845

                                                                                                                                                                                                     

 

 

 

 

        Unaudited six months ended 30 September 2016 (restated)

                                                                                           

  DCC LPG   DCC Retail & Oil   DCC Healthcare   DCC Technology   Total

 

£'000

 

£'000

 

          £'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

Segment revenue

367,859

 

   3,750,915

 

      244,283

 

   1,144,229

 

5,507,286

 

 

 

 

 

 

 

 

 

 

Adjusted operating profit*

36,987

 

39,046

 

19,760

 

        11,302

 

      107,095

Amortisation of intangible assets

(8,562)

 

(4,828)

 

(3,307)

 

         (1,481)

 

       (18,178)

Net operating exceptionals (note 6)

(205)

 

(1,614)

 

(1,361)

 

         (1,236)

 

         (4,416)

Operating profit

28,220

 

32,604

 

15,092

 

          8,585

 

        84,501

 

 

 

 

 

                        Audited year ended 31 March 2017 (restated)

                                                                                                                                                                                               

  DCC LPG   DCC Retail & Oil   DCC Healthcare   DCC Technology   Total

 

£'000

 

£'000

 

          £'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

Segment revenue

1,073,212

 

   8,000,923

 

      506,562

 

   2,689,105

 

12,269,802

 

 

 

 

 

 

 

 

 

 

Adjusted operating profit*

160,462

 

94,479

 

48,944

 

        41,120

 

      345,005

Amortisation of intangible assets

(18,277)

 

(9,962)

 

(7,258)

 

         (3,633)

 

      (39,130)

Net operating exceptionals (note 6)

(6,854)

 

(13,633)

 

(2,695)

 

       (13,115)

 

      (36,297)

Operating profit

135,331

 

70,884

 

38,991

 

        24,372

 

      269,578

 

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

 

(b)           By geography

The Group has a presence in 15 countries worldwide. The following represents a geographical revenue analysis about the country of domicile (Republic of Ireland) and countries with material revenue.

 

 

 

Restated

 

 

 

Unaudited

 

Unaudited

 

Audited

 

6 months

 

6 months

 

year

 

ended

 

ended

 

ended

 

30 Sept.

 

30 Sept.

 

31 March

 

2017

 

2016

 

2017

 

£'000

 

£'000

 

            £'000

 

 

 

 

 

 

Republic of Ireland

426,442

 

322,824

 

759,439

United Kingdom

3,590,870

 

3,349,051

 

7,239,193

France

1,235,359

 

1,038,271

 

2,402,290

Other

1,196,801

 

797,140

 

1,868,880

 

6,449,472

 

5,507,286

 

12,269,802

 

 

 

6.             Exceptionals

 

Unaudited

 

Unaudited

 

Audited

 

6 months

 

6 months

 

year

 

ended

 

ended

 

ended

 

30 Sept.

 

30 Sept.

 

31 March

 

2017

 

2016

 

2017

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

Restructuring costs

(9,742)

 

(2,280)

 

(19,345)

Acquisition and related costs

(3,512)

 

(1,374)

 

(10,308)

Adjustments to contingent acquisition consideration

140

 

73

 

(5,114)

Impairment of property, plant and equipment

-

 

(684)

 

(1,164)

Legal and other operating exceptional items

(12)

 

(151)

 

(366)

Net operating exceptional items

(13,126)

 

(4,416)

 

(36,297)

 

 

 

 

 

 

Mark to market of swaps and related debt

(2)

 

1,901

 

10,101

Net exceptional items before taxation

(13,128)

 

(2,515)

 

(26,196)

 

 

 

 

 

 

Tax attributable to net exceptional items

157

 

(386)

 

(1,756)

Net exceptional items after taxation (continuing operations)

(12,971)

 

(2,901)

 

(27,952)

 

 

 

 

 

 

Net profit on disposal of Environmental division (note 8)

29,742

 

-

 

-

 

16,771

 

(2,901)

 

(27,952)

 

 

 

 

 

 

Non-controlling interest share of net exceptional items after taxation

816

 

-

 

3,138

Net exceptional items attributable to owners of the Parent

17,587

 

(2,901)

 

(24,814)

 

 

The Group has focused on the efficiency of its operating infrastructures and sales platforms, particularly in areas where it has been acquisitive in recent years. Restructuring costs amounted to £9.742 million and were principally incurred in the restructuring and integration work resulting from the acquisition of Dansk Fuels and also the implementation of the new national distribution centre in the Technology division's UK business.

 

Acquisition related costs amounted to £3.512 million and include the professional fees and tax costs (such as stamp duty) relating to the evaluation and completion of acquisition opportunities.

 

The Group recorded a net profit on disposal of the Environmental division of £29.742 million, the sale of which was completed in May 2017.

 

There was a net tax credit of £0.157 million and a non-controlling interest credit of £0.816 million in relation to the above net exceptional items.

 

 

7.             Taxation

 

The taxation expense for the interim period is based on management's best estimate of the weighted average tax rate that is expected to be applicable for the full year. The Group's effective tax rate for the period was 18% (six months ended 30 September 2016: 17.5% and year ended 31 March 2017: 17.5%). 

 

8.             Discontinued Operations

 

As announced on 31 May 2017, the Group completed the disposal of the Environmental division. The proceeds on disposal will be used to fund the continued development of DCC's continuing operations. The conditions for the segment to be classified as a discontinued operation were satisfied during the year ended 31 March 2017 and the results of the Environmental segment were presented separately in the 2017 Annual Report as discontinued operations in the Group Income Statement and the assets and liabilities of this segment were classified as an asset held for sale at the balance sheet date. Accordingly, the results for the six months ended 30 September 2016 have been restated.

 

The following table summarises the consideration received, the profit on disposal of discontinued operations and the net cash flow arising on the disposal of this segment:

 

 

 

 

 

Unaudited

 

 

 

 

 

6 months

 

 

 

 

 

ended

 

 

 

 

 

30 Sept.

 

 

 

 

 

2017

Profit on disposal of discontinued operations

 

 

 

 

£'000

 

 

 

 

 

 

Net consideration:

 

 

 

 

 

Net proceeds received

 

 

 

 

164,517

Costs of disposal

 

 

 

 

(4,463)

Total net consideration

 

 

 

 

160,054

 

 

 

 

 

 

Assets and liabilities disposed of:

 

 

 

 

 

Non-current assets

 

 

 

 

145,761

Current assets

 

 

 

 

34,261

Non-current liabilities

 

 

 

 

(4,357)

Current liabilities

 

 

 

 

(40,805)

Net identifiable assets and liabilities disposed of

 

 

 

 

134,860

Recycling of foreign exchange gain previously recognised in foreign currency translation reserve

 

(4,548)

 

 

 

 

 

130,312

 

 

 

 

 

 

Profit on disposal of discontinued operations

 

 

 

 

29,742

 

 

Net cash flow on disposal of discontinued operations:

 

 

 

 

 

Total proceeds received

 

 

 

 

174,321

Cash and cash equivalents disposed of

 

 

 

 

(9,804)

Net cash inflow from disposal of discontinued operations

 

 

 

 

164,517

Disposal costs paid

 

 

 

 

(4,463)

Net cash flow on disposal of discontinued operations:

 

 

 

 

160,054

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table details the results of discontinued operations included in the Group Income Statement for the six months ended 30 September 2017, together with comparative figures:

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

6 months

 

6 months

 

year

 

ended

 

ended

 

ended

 

30 Sept.

 

30 Sept.

 

31 March

 

2017

 

2016

 

2017

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

Revenue

29,602

 

89,258

 

175,232

Cost of sales

(20,285)

 

(61,238)

 

(119,654)

Gross profit

9,317

 

28,020

 

55,578

Operating expenses

(8,337)

 

(17,292)

 

(37,032)

Operating profit before amortisation of intangible assets

980

 

10,728

 

18,546

Amortisation of intangible assets

-

 

(88)

 

(38)

Operating profit

980

 

10,640

 

18,508

Net finance costs

(16)

 

(73)

 

(163)

 

964

 

10,567

 

18,345

Profit on disposal of discontinued operations

29,742

 

-

 

-

 

30,706

 

10,567

 

18,345

Income tax expense

(174)

 

(1,848)

 

(3,185)

Profit from discontinued operations after tax

30,532

 

8,719

 

15,160

 

 

The following table details the cash flow from discontinued operations included in the Group Cash Flow Statement for the six months ended 30 September 2017, together with comparative figures:

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

6 months

 

6 months

 

year

 

ended

 

ended

 

ended

 

30 Sept.

 

30 Sept.

 

31 March

 

2017

 

2016

 

2017

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

Net cash flow from operating activities

(5,599)

 

12,022

 

22,461

Net cash flow from investing activities

(1,331)

 

(2,916)

 

(6,661)

Net cash flow from discontinued operations

(6,930)

 

9,106

 

15,800

 

 

 

9.             Earnings per Ordinary Share

 

 

 

 

 

 

 

   

 

 

 

            6 months ended 30 September 2017

 

        6 months ended 30 September 2016

 

Continuing

Discontinued 

 

 

Continuing

Discontinued 

 

 

operations

operations

Total

 

operations

operations

Total

 

£'000

£'000

£'000

 

£'000

         £'000

£'000

 

 

 

 

 

 

 

 

Profit attributable to owners of the Parent

58,169

30,532

88,701

 

56,869

         8,719

65,588

Amortisation of intangible assets after tax

14,653

-

14,653

 

13,164

              71

13,235

Exceptionals after tax

12,155

(29,742)

(17,587)

 

2,901

                 -

2,901

Adjusted profit after taxation and

non-controlling interests

 

84,977

 

790

 

85,767

 

 

72,934

         8,790

81,724

 

 

Basic earnings per ordinary share

 

 

 

 

 

 

 

                       

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 period, 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.

 

 

            6 months ended 30 September 2017

 

        6 months ended 30 September 2016

 

 

Continuing

Discontinued

 

 

Continuing

Discontinued

 

 

 

operations

operations

Total

 

operations

operations

Total

 

pence

pence

pence

 

pence

pence

pence

 

 

 

 

 

 

 

 

Basic earnings per ordinary share

65.36p

  34.30p

99.66p

 

64.12p

         9.83p

    73.95p

Amortisation of intangible assets after tax

 

16.46p

 

-

 

16.46p

 

 

14.84p

         0.08p

    14.92p

Exceptionals after tax

13.65p

(33.41p)

(19.76p)

 

3.27p

              -

      3.27p

Adjusted basic earnings per

ordinary share

 

95.47p

 

0.89p

 

 96.36p

 

 

82.23p

         9.91p

    92.14p

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares in issue (thousands)

 

 

 

89,007

 

 

 

    88,691

 

 

 

 

 

 

 

 

                     

 

Diluted earnings per ordinary share

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. 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.

 

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.

 

 

            6 months ended 30 September 2017

 

        6 months ended 30 September 2016

 

 

Continuing

Discontinued

 

 

Continuing

Discontinued

 

 

 

operations

operations

Total

 

operations

operations

Total

 

 

pence

pence

pence

 

pence

pence

pence

 

 

 

 

 

 

 

 

Diluted earnings per ordinary share

65.06p

34.15p

99.21p

 

63.66p

         9.76p

    73.42p

Amortisation of intangible assets after tax

 

16.39p

 

-

 

16.39p

 

 

14.73p

         0.08p

    14.81p

Exceptionals after tax

13.59p

(33.26p)

(19.67p)

 

3.25p

              -

      3.25p

Adjusted diluted earnings per

ordinary share

 

95.04p

 

0.89p

 

 95.93p

 

 

81.64p

         9.84p

    91.48p

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares in issue (dilutive, thousands)

 

 

 

89,410

 

 

 

    89,332

                     

 

The earnings used for the purposes of the continuing diluted earnings per ordinary share calculations were £58.169 million (six months ended 30 September 2016: £56.869 million) and £84.977 million (six months ended 30 September 2016: £72.934 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 £30.532 million (six months ended 30 September 2016: £8.719 million) and £0.790 million (six months ended 30 September 2016: £8.790 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 six months ended 30 September 2017 was 89.410 million (six months ended 30 September 2016: 89.332 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:

 

 

Unaudited

 

Unaudited

 

 6 months

 

6 months

 

ended

 

ended

 

30 Sept.

 

30 Sept.

 

2017

 

2016

 

'000

 

'000

 

 

 

 

Weighted average number of ordinary shares in issue

89,007

 

88,691

Dilutive effect of options and awards

403

 

641

Weighted average number of ordinary shares for diluted earnings per share

89,410

 

89,332

 

 

10.          Dividends

 

 

Unaudited

 

Unaudited

 

Audited

 

 

6 months

 

6 months

 

year

 

 

ended

 

ended

 

ended

 

 

30 Sept.

 

30 Sept.

 

31 March

 

 

2017

 

2016

 

2017

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

Interim - paid 37.17 pence per share on 12 December 2016

                     -

 

                        -

 

32,415

Final - paid 74.63 pence per share on 20 July 2017

   (paid 64.18 pence per share on 21 July 2016)

 

66,376

 

 

55,720

 

 

57,621

 

 

               66,376

                         

55,720

 

90,036

               

 

On 13 November 2017, the Board approved an interim dividend of 40.89 pence per share (£36.473 million).  These condensed interim financial statements do not reflect this dividend payable. 

 

 

 

 

11.          Other Reserves

 

 

 

 

 

 

For the six months ended 30 September 2017

 

 

 

 

 

 

 

 

Foreign

 

 

 

Share based

Cash flow

currency

 

 

 

payment

hedge

translation

Other

 

 

reserve

reserve

reserve

reserves

Total

 

£'000

£'000

£'000

£'000

£'000

 

                   

                   

 

 

 

At 1 April 2017

18,146

(13,581)

105,537

932

111,034

 

 

 

 

 

 

Currency translation:

 

 

 

 

 

- arising in the period

-

-

16,813

-

16,813

- recycled to the Income Statement on disposal

-

-

(4,548)

-

(4,548)

Movements relating to cash flow hedges

-

20,292

-

-

20,292

Movement in deferred tax liability on cash flow hedges                   -

(3,570)

-

-

(3,570)

Share based payment

1,931

-

-

-

1,931

At 30 September 2017

20,077

3,141

117,802

932

141,952

 

 

For the six months ended 30 September 2016

 

 

 

 

 

 

 

Foreign

 

 

 

Share based

Cash flow

currency

 

 

 

payment

hedge

translation

Other

 

 

reserve

reserve

reserve

reserves

Total

 

£'000

£'000

£'000

£'000

£'000

 

                   

                   

 

 

 

At 1 April 2016

14,954

(8,112)

70,887

932

78,661

 

 

 

 

 

 

Currency translation

-

-

35,972

-

35,972

Movements relating to cash flow hedges

-

9,409

-

-

9,409

Movement in deferred tax liability on cash flow hedges                   -

(1,504)

-

-

(1,504)

Share based payment

1,415

-

-

-

1,415

At 30 September 2016

16,369

(207)

106,859

932

123,953

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended 31 March 2017

 

 

 

 

 

 

 

 

Foreign

 

 

 

Share based

Cash flow

currency

 

 

 

payment

hedge

translation

Other

 

 

reserve

reserve

reserve

reserves

Total

 

£'000

£'000

£'000

£'000

£'000

 

                   

                   

 

 

 

At 1 April 2016

14,954

(8,112)

70,887

932

78,661

 

 

 

 

 

 

Currency translation

-

-

34,650

-

34,650

Movements relating to cash flow hedges

-

(6,803)

-

-

(6,803)

Movement in deferred tax liability on cash flow hedges                   -

1,334

-

-

1,334

Share based payment

3,192

-

-

-

3,192

At 31 March 2017

18,146

(13,581)

105,537

932

111,034

 

 

 

 

 

 

               

 

 

12.          Analysis of Net Debt

 

Unaudited

 

Unaudited

 

Audited

 

30 Sept.

 

30 Sept.

 

31 March

 

2017

 

2016

 

2017

 

£'000

 

£'000

 

£'000

Non-current assets:

 

 

 

 

 

Derivative financial instruments

180,109

 

271,609

 

273,767

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Derivative financial instruments

18,479

 

37,132

 

18,233

Cash and cash equivalents

1,497,061

 

1,138,953

 

1,048,064

 

1,515,540

 

1,176,085

 

    1,066,297

Non-current liabilities:

 

 

 

 

 

Finance leases

(190)

 

(131)

 

            (165)

Derivative financial instruments

(5,610)

 

-

 

            (506)

Unsecured Notes

(1,680,317)

 

(1,384,880)

 

  (1,319,802)

 

(1,686,117)

 

(1,385,011)

 

  (1,320,473)

Current liabilities:

 

 

 

 

 

Bank borrowings

(118,193)

 

(95,151)

 

       (88,041)

Finance leases

(166)

 

(322)

 

            (190)

Derivative financial instruments

(3,511)

 

(2,574)

 

         (5,894)

Unsecured Notes

-

 

(76,801)

 

       (60,214)

 

(121,870)

 

(174,848)

 

     (154,339)

 

 

 

 

 

 

Net debt excluding cash attributable to assets held for sale

(112,338)

 

(112,165)

 

     (134,748)

Cash and short-term deposits attributable to assets held for sale

-

 

-

 

         12,799

 

Net debt including cash attributable to assets held for sale

 

(112,338)

 

 

(112,165)

 

 

(121,949)

 

 

 

 

 

 

In September 2017, the Group successfully completed the drawdown of a new c.£450 million private placement debt issuance.

 

 

13.          Post Employment Benefit Obligations

 

The Group's defined benefit pension schemes' assets were measured at fair value at 30 September 2017. The defined benefit pension schemes' liabilities at 30 September 2017 were updated to reflect material movements in underlying assumptions.

 

The Group's post employment benefit obligations moved from a net deficit of £0.029 million at 31 March 2017 to a net asset of £4.862 million at 30 September 2017. This movement was primarily driven by an actuarial gain on liabilities arising from an increase in the discount rate used to value these liabilities and by contributions in excess of the current service cost.

 

The following actuarial assumptions have been made in determining the Group's retirement benefit obligation for the six months ended 30 September 2017:

 

Unaudited

 

Unaudited

 

Audited

 

6 months

 

6 months

 

year

 

ended

 

ended

 

ended

 

30 Sept.

 

30 Sept.

 

31 March

 

2017

 

2016

 

2017

Discount rate

 

 

 

 

 

- Republic of Ireland

2.10%

 

1.50%

 

2.00%

- United Kingdom

2.70%

 

2.45%

 

2.55%

 

 

14.          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, there were a number of relatively small acquisitions completed by the Group during the period, the largest of which was the acquisition by DCC Technology of 100% of MTR Group Ltd, a UK based provider of second lifecycle solutions for mobile and tablet devices.

 

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 six months ended 30 September 2017.

 

 

 

 

 

 

 

 

 

             6 months

           6 months

 

 

 

 

                  ended

                 ended

 

 

 

 

               30 Sept.

               30 Sept.

 

 

 

 

2017

2016

 

 

 

 

£'000

£'000

 

Assets

 

 

 

 

 

Non-current assets

 

 

 

 

 

Property, plant and equipment

 

 

6,695

(2,100)

 

Equity accounted investments

 

 

157

1,762

 

Total non-current assets

 

 

6,852

(338)

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

Inventories

 

 

2,880

1,324

 

Trade and other receivables

 

 

2,307

3,724

 

Total current assets

 

 

5,187

5,048

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

Deferred income tax liabilities

 

 

(45)

(13)

 

Total non-current liabilities

 

 

(45)

(13)

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

 

 

(2,826)

2,445

 

Provisions for liabilities and charges

 

 

-

(5,043)

 

Current income tax liability

 

 

(599)

8,479

 

Acquisition related liabilities

 

 

-

(9,717)

 

Total current liabilities

 

 

(3,425)

(3,836)

 

 

 

 

 

 

 

Identifiable net assets acquired

 

 

8,569

861

 

Intangible assets - goodwill

 

 

18,918

6,798

 

Total consideration

 

 

27,487

7,659

 

 

 

 

 

 

 

Satisfied by:

 

 

 

 

 

Cash

 

 

13,111

8,813

 

Cash and cash equivalents acquired

 

 

(108)

(2,204)

 

Net cash outflow

 

 

13,003

6,609

 

Acquisition related liabilities

 

 

14,484

1,050

 

Total consideration

 

 

27,487

7,659

 

 

Reconciliation to Group Cash Flow Statement:

 

 

 

 

Net cash outflow on acquisitions completed during the period

 

13,003

6,609

Pre-completion deposits paid (Esso Norway and Shell Hong Kong & Macau)

 

31,310

-

Total outflow as reported in the Group Cash Flow Statement

 

44,313

6,609

 

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. 

 

There were no adjustments made to the carrying amounts of assets and liabilities acquired in arriving at their fair values. The initial assignment of fair values to identifiable net assets acquired has been performed on a provisional basis in respect of a number of the business combinations above given the timing of closure of these transactions.  Any amendments to these fair values within the twelve month timeframe from the date of acquisition will be disclosable in the Group's condensed interim financial statements for the six months ending 30 September 2018 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.

 

Acquisition related costs included in other operating expenses in the Group Income Statement amounted to £3.512 million (six months ended 30 September 2016: £1.374 million).

 

No contingent liabilities were recognised on the acquisitions completed during the financial period or the prior financial years.

 

The gross contractual value of trade and other receivables as at the respective dates of acquisition amounted to £2.315 million.  The fair value of these receivables is £2.307 million (all of which is expected to be recoverable).

 

None of the goodwill recognised in respect of acquisitions completed during the period is expected to be deductible for tax purposes.

 

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 period range from £8.0 million to £37.5 million.

 

The post-acquisition impact of sales and profit after tax of acquisitions completed during the period was not material. The revenue and profit of the Group determined in accordance with IFRS for the period ended 30 September 2017 would not have been materially different from that reported in the Income Statement, had the acquisition date for all business combinations been the beginning of the period.

 

 

15.          Seasonality of Operations

 

The Group's operations are significantly second-half weighted primarily due to a portion of the demand for DCC's LPG and Retail & Oil products being weather dependent and seasonal buying patterns in DCC Technology.

 

 

16.          Related Party Transactions

 

There have been no related party transactions or changes in the nature and scale of the related party transactions described in the 2017 Annual Report that could have had a material impact on the financial position or performance of the Group in the six months ended 30 September 2017.

 

 

17.          Events after the Balance Sheet Date

 

Esso Retail Norway

On 25 October 2017, DCC announced it had completed the acquisition of Esso's retail petrol station network in Norway. Details of the acquisition were set out in DCC's Stock Exchange Announcement on 7 February 2017. The total consideration was approximately NOK 2.43 billion (c. £235 million), plus the value of stock in tank at the date of acquisition, and was paid in cash on completion. An initial assignment of fair values to identifiable net assets acquired has not been completed given the timing of the closure of the transaction.

 

Retail West

On 7 November 2017, DCC LPG announced that it had reached agreement with NGL Energy Partners LP ('NGL') to acquire its Retail West LPG division, Hicksgas LLC ('Retail West'), based on an enterprise value of US$200 million (c. £152 million). The transaction is expected to complete on 31 March 2018, following receipt of customary regulatory consents and separation from NGL.

  

 

18.          Board Approval

This report was approved by the Board of Directors of DCC plc on 13 November 2017.

 

 

19.          Distribution of Interim Report

 

This report and further information on DCC is available at the Company's website www.dcc.ie.  A printed copy is available to the public at the Company's registered office at DCC House, Leopardstown Road, Foxrock, Dublin 18, Ireland.

 

Statement of Directors' Responsibilities

 

We confirm that to the best of our knowledge:

 

·     the condensed set of interim financial statements for the six months ended 30 September 2017 have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU; and

 

·     the interim management report includes a fair review of the information required by:

‒ Regulation 8(2) of the Transparency (Directive 2004/109/EC) Regulations 2007, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

‒ Regulation 8(3) of the Transparency (Directive 2004/109/EC) Regulations 2007, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

 

 

 

On behalf of the Board

 

 

John Moloney                                                                             Donal Murphy

Chairman                                                                                    Chief Executive

 

13 November 2017

 

 

 

 

Supplementary Financial Information

 

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.

 

 

6 months ended

6 months ended

 

Year ended

 

30 Sept.

30 Sept.

31 March

 

2017

2016

2017

 

£'000

£'000

£'000

Operating profit

88,845

84,501

269,578

Net operating exceptional items

13,126

4,416

36,297

Amortisation of intangible assets

20,527

18,178

39,130

Adjusted operating profit ('EBITA') - continuing

122,498

107,095

345,005

Adjusted operating profit ('EBITA') - discontinued

980

10,728

18,546

Adjusted operating profit ('EBITA')

123,478

117,823

363,551

 

 

Net interest

Definition

The Group defines net interest as the net total of finance costs and finance income before interest related exceptional items as presented in the Group Income Statement.

 

 

6 months ended

6 months ended

 

Year ended

 

30 Sept.

30 Sept.

31 March

 

2017

2016

2017

 

£'000

£'000

£'000

Finance costs before exceptional items

(34,508)

(35,676)

(72,910)

Finance income before exceptional items

18,832

19,163

40,973

Net interest - continuing

(15,676)

(16,513)

(31,937)

Net interest - discontinued

(16)

(73)

(163)

Net interest

(15,692)

(16,586)

(32,100)

 

 

  

 

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.

 

 

 

6 months ended

6 months ended

 

 

30 Sept.

30 Sept.

 

 

2017

2016

Calculation: Revenue - continuing, constant currency

 

£'000

£'000

Revenue - continuing

 

6,449,472

5,507,286

Currency impact

 

(215,145)

-

Revenue - continuing, constant currency

 

6,234,327

5,507,286

 

 

 

 

6 months ended

6 months ended

 

 

30 Sept.

30 Sept.

 

 

2017

2016

Calculation: Adjusted operating profit - continuing, constant currency

 

£'000

£'000

Adjusted operating profit - continuing

 

122,498

107,095

Currency impact

 

(5,066)

-

Adjusted operating profit - continuing, constant currency

 

117,432

107,095

 

 

 

 

6 months ended

6 months ended

 

 

30 Sept.

30 Sept.

 

 

2017

2016

Calculation: Adjusted earnings per share (pence) - continuing, constant currency

 

£'000

£'000

Adjusted earnings - continuing

 

84,977

72,934

Currency impact

 

(3,385)

-

Adjusted earnings - continuing, constant currency

 

81,592

72,934

Weighted average number of ordinary shares ('000)

 

89,007

88,691

Adjusted earnings per share (pence) - continuing, constant currency

 

91.67p

82.23p

         
  

 

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.

 

 

6 months ended

6 months ended

 

Year ended

 

30 Sept.

30 Sept.

31 March

 

2017

2016

2017

 

£'000

£'000

£'000

Adjusted operating profit

123,478

117,823

363,551

Net interest

(15,692)

(16,586)

(32,100)

Earnings before taxation

107,786

101,237

331,451

 

Income tax expense

 

13,196

 

11,223

 

45,869

Income tax relating to exceptional items

157

(386)

(1,756)

Deferred tax attaching to amortisation of intangible assets

5,874

5,014

10,674

Income tax expense before exceptionals and deferred tax attaching to amortisation of intangible assets - continuing

 

19,227

 

15,851

 

54,787

Income tax expense before exceptionals and deferred tax attaching to amortisation of intangible assets - discontinued

 

174

 

1,865

 

3,217

Total income tax expense before exceptionals and deferred tax attaching to amortisation of intangible assets

 

19,401

 

17,716

 

58,004

Effective tax rate (%)

18.0%

17.5%

17.5%

 

 

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.

 

 

6 months ended

6 months ended

 

Year ended

 

30 Sept.

30 Sept.

31 March

 

2017

2016

2017

 

£'000

£'000

£'000

Purchase of property, plant and equipment

71,592

65,878

143,698

Proceeds from disposal of property, plant and equipment

(2,525)

(6,076)

(12,315)

Net capital expenditure

69,067

59,802

131,383

 

 

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 net capital expenditure.

 

 

6 months ended

6 months ended

 

Year ended

 

30 Sept.

30 Sept.

31 March

 

2017

2016

2017

 

£'000

£'000

£'000

Cash generated from operations before exceptionals

83,975

141,039

546,870

Net capital expenditure

(69,067)

(59,802)

(131,383)

Free cash flow

14,908

81,237

415,487

 

 

 

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, income tax paid, dividends received from equity accounted investments and interest received.

 

 

6 months ended

6 months ended

 

Year ended

 

30 Sept.

30 Sept.

31 March

 

2017

2016

2017

 

£'000

£'000

£'000

Free cash flow

14,908

81,237

415,487

Interest paid

(32,457)

(33,313)

(70,108)

Income tax paid

(35,905)

(28,122)

(62,180)

Dividends received from equity accounted investments

1,317

121

125

Interest received

19,001

19,191

40,966

Free cash flow (after interest and tax payments)

(33,136)

39,114

324,290

 

 

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 period.

 

 

6 months ended

6 months ended

 

Year ended

 

30 Sept.

30 Sept.

31 March

 

2017

2016

2017

 

£'000

£'000

£'000

Net cash outflow on acquisitions during the period

44,313

6,609

203,327

Net cash outflow on acquisitions which were committed to in the previous period

(31,310)

(6,609)

(34,372)

Acquisition related liabilities arising on acquisitions during the period

14,484

1,050

41,041

Acquisition related liabilities which were committed to in the previous period

-

(1,050)

(14,082)

Amounts committed in the current period

152,672

180,515

358,000

Committed acquisition expenditure

180,159

180,515

553,914

         

 

 

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 current government grants).

 

 

As at

As at

As at

 

30 Sept.

30 Sept.

31 March

 

2017

2016

2017

 

£'000

£'000

£'000

Inventories

548,903

435,716

456,395

Inventories (asset classified as held for sale)

-

-

1,922

Trade and other receivables

1,204,122

997,017

1,222,597

Trade and other receivables (asset classified as held for sale)

-

-

33,264

Interest receivable (included in trade and other receivables)

(59)

(151)

(223)

Trade and other payables

(1,831,926)

(1,536,255)

(1,820,517)

Trade and other payables (asset classified as held for sale)

-

-

(35,741)

Interest payable (included in trade and other payables)

5,268

5,342

4,534

Amounts due in respect of property, plant and equipment (included in trade and other payables)

 

4,093

 

228

 

6,349

Government grants (included in trade and other payables)

9

83

9

Net working capital

(69,590)

(98,020)

(131,411)

 

  

 

Working capital (days)

Definition

Working capital days measures how long it takes in days for the Group to convert working capital into revenue.

 

 

As at

As at

As at

 

30 Sept.

30 Sept.

31 March

 

2017

2016

2017

 

£'000

£'000

£'000

Net working capital

(69,590)

(98,020)

(131,411)

September/March revenue

1,219,059

1,014,498

1,223,575

Working capital (days)

     (1.7 days)

     (2.9 days)

     (3.3 days)

 

                                                                                                                         

 


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