14th May 2007 07:02
DCC PLC14 May 2007 Preliminary Results for the Year Ended 31 March 2007 • Change on prior year Revenue 4,046.1m +17.7% Operating profit* 143.0m +15.7% Share of associates' profit after tax 11.8m -53.7% Profit before net exceptionals, amortisation of intangible assets and tax 143.9m +1.3% Exceptional profit (net) 24.5m Profit before tax 161.8m +16.6% Adjusted earnings per share * 160.02 cent +1.8% Adjusted earnings per share excluding Manor Park contribution * 143.51 cent +15.8% Dividend per share 49.28 cent +15.0% * excluding net exceptionals and amortisation of intangible assets DCC, the business support services group, today announced its results for theyear ended 31 March 2007. Commenting on the results, DCC's Chief Executive/Deputy Chairman, Jim Flavin,said: "The substantial increase in DCC's sales to €4 billion reflects the growing scale and breadth of DCC which now has operations in 16 countries and just over 6,000 employees. DCC achieved excellent operating profit growth of 15.7% to €143.0 million. The growth momentum achieved in the first half of the year was maintained in the seasonally more significant second half. DCC has budgeted for high single digit operating profit growth for the financial year to 31 March 2008 and is well positioned to augment this growth through continued acquisition activity." For reference, please contact:Jim Flavin, Chief Executive/Deputy Chairman Tel: +353 1 2799 400Fergal O'Dwyer, Chief Financial Officer Email: [email protected] Murphy, Investor Relations Manager Web: www.dcc.ie Results A summary of the results for the year ended 31 March 2007 is as follows: •'m Change on prior year Revenue 4,046.1 +17.7% Operating profit*DCC Energy 60.5 +8.2%DCC SerCom 33.8 +35.3%DCC Healthcare 23.0 +6.0%DCC Food & Beverage 15.1 -2.2%DCC Environmental 10.6 +91.4% ---------Group operating profit 143.0 +15.7%Share of associates' profit after tax 11.8 -53.7%Finance costs (net) (10.9) --------Profit before net exceptionals, amortisation ofintangible assets and tax 143.9 +1.3%Exceptional profit (net) 24.5Amortisation of intangible assets (6.6) --------Profit before tax 161.8 +16.6%Taxation (20.7) --------Profit after tax 141.1 ------- Adjusted EPS* (cent) 160.02 +1.8% Adjusted EPS excluding Manor Park contribution* (cent) 143.51 +15.8% Return on capital employed - excluding intangible assets: 39.7% (43.0% in 2006) - including intangible assets: 18.3% (19.1% in 2006) * excluding net exceptionals and amortisation of intangible assets RevenueThe substantial increase in DCC's sales revenue to €4 billion reflects thegrowing scale and breadth of DCC which now has operations in 16 countries andjust over 6,000 employees. Operating profitDCC achieved excellent growth in operating profit. The growth momentum achievedin the first half of the year was maintained in the seasonally more significantsecond half. A summary of the second half and first half operating profit bydivision is set out hereunder: Second half First half •'m Change •'m ChangeOperating profit*DCC Energy 48.2 +6.7% 12.3 +14.4%DCC SerCom 22.8 +31.0% 11.0 +45.3%DCC Healthcare 13.0 +11.9% 10.0 -0.7%DCC Food & Beverage 7.8 -3.0% 7.3 -1.4%DCC Environmental 6.0 +119.9% 4.6 +64.4% ----- ----Group operating profit 97.8 +15.0% 45.2 +17.1% * excluding net exceptionals and amortisation of intangible assets Share of associates' profit after tax (Manor Park Homebuilders)As expected, the contribution from DCC's 49% owned associate company, Manor ParkHomebuilders, declined due to planning delays which have had a short term impacton its profitability. DCC announced on 14 February 2007 that it had reached agreement with Joe Moran,who owns 51% of the share capital of Manor Park Homebuilders, to seek offers for100% of the share capital and that Goodbody Corporate Finance and IBI CorporateFinance had been jointly appointed to carry out a formal sale process. Thisprocess is ongoing and a further announcement will be made when appropriate. Finance costs (net)Net finance costs for the year increased to €10.9 million (€7.0 million in 2006)due to the increase in interest rates and an increase in the Group's net debtlevels which averaged €233 million during the year compared to €161 million inthe previous year. Exceptional profit (net)As stated in a DCC Stock Exchange Announcement on 9 February 2007, DCC sold asite of approximately 1.5 acres in the Sandyford Industrial Estate, Dublin 18for €40 million. Arising principally from this sale the Group made anexceptional profit on the disposal of fixed assets of €33.2 million. The Groupincurred exceptional restructuring costs of €2.1 million and exceptional legaland related costs of €6.6 million, resulting in the net exceptional profit of€24.5 million. TaxationExcluding the tax charge on the net exceptional profit, the effective tax ratefor the Group (excluding associates) was 11.0% compared to 12.1% in the previousyear. Adjusted earnings per share excluding Manor Park contributionAs DCC's 49% shareholding in Manor Park Homebuilders is expected to be sold inthe current financial year, adjusted EPS excluding the contribution from ManorPark Homebuilders has been shown separately to disclose the underlying earningsgrowth of 15.8% achieved in DCC's managed and controlled businesses and jointventures. Financial strengthAt 31 March 2007, DCC had net debt of €100.5 million and total equity of €687.7million. Cash flow from operations was €127.4 million, compared to €142.9million in the prior year. The reduced cash flow was due to increased investmentin working capital of €49.7 million, driven by the strong growth in salesrevenue and by an increase in working capital days to 14.0 days revenue at 31March 2007 compared to 9.5 days revenue at 31 March 2006. DCC's strong financial position leaves the Group well placed to pursue itsorganic and acquisition growth objectives. Acquisitions and developmentAcquisition and capital expenditure in the year amounted to €173.5 million asfollows: Acquisitions Capex Total •'m •'m •'mDCC Energy 51.1 32.8 83.9DCC SerCom 0.7 4.8 5.5DCC Healthcare 17.7 5.8 23.5DCC Food & Beverage - 7.0 7.0DCC Environmental 42.8 10.8 53.6 ----- ---- ----Total 112.3 61.2 173.5 DCC Energy acquired Carlton Fuels, a north of England based oil distributionbusiness in July 2006, making DCC Energy the largest oil distributor in Britain.DCC Energy also acquired a number of smaller oil distributors during the year,including BP's Scottish Islands business, as part of the planned expansion ofits oil distribution business in Britain. DCC Healthcare acquired the remaining 50% of Technopharm Compounding (an IrishMedicines Board licensed compounding facility producing patient-ready dosagepacks of oncology and pain management pharmaceuticals and paediatric nutritionalproducts) in August 2006. DCC Healthcare also expanded its internationalpresence in its mobility and rehab business in March 2007 through theacquisition of 60% of Ausmedic, a small company which is the leading supplier ofphysiotherapy products in Australia and New Zealand. DCC Environmental acquired a 50% shareholding in William Tracey, Scotland'sleading recycling and waste management business in May 2006 and in November 2006acquired 90% of Wastecycle, a rapidly growing, Nottingham based recycling andnon-hazardous waste management business. DCC is actively pursuing further acquisition and development opportunities inall divisions. Share buybackOn 19 June 2006, DCC purchased 1,038,311 of its own shares, being 1.29% of itsissued share capital (excluding Treasury Shares), at a price of €17.90 per shareand at a total cost of €18.8 million including stamp duty and commission. Since July 2000, DCC has bought back a total of 10,247,231 shares, being 11.61%of its current issued share capital, at an average price per share of €11.23 andat a total cost of €116.5 million including stamp duty and commission. Dividend increase of 15%The Directors are recommending a final dividend of 31.41 cent per share which,when added to the interim dividend of 17.87 cent per share, gives a totaldividend of 49.28 cent per share for the year, a 15% increase over the prioryear dividend of 42.85 cent per share. The dividend is covered 3.2 times byadjusted earnings per share (3.7 times in 2006). It is proposed to pay the finaldividend on 26 July 2007 to shareholders on the register at the close ofbusiness on 25 May 2007. LitigationArising from the successful action by DCC's subsidiary, Days Healthcare, againstPihsiang Manufacturing Company Limited (a Taiwanese public company), Donald Wu(its chairman and major shareholder) and his wife Jenny Wu (a director) in theLondon High Court, the defendants are jointly and severally liable to pay theDCC Group Stg£18.9 million (€27.8 million) at 31 March 2007. DCC has not accruedany of this amount due pending the outcome of an appeal by the defendants to theTaiwanese High Court, but has expensed all the litigation costs as exceptionalcosts. As set out in a DCC Stock Exchange Announcement on 7 April 2006, Fyffes plc haslodged an appeal to the Irish Supreme Court seeking to overturn the decision ofthe Irish High Court in its failed legal action against DCC and others takenunder Part V of the Irish Companies Act, 1990 relating to the sale of shares inFyffes plc by the DCC Group in February 2000. That action was dismissed on thegrounds that the defendants were not in possession of price sensitiveinformation in February 2000 as alleged by Fyffes. The Supreme Court hearing isscheduled to commence on 18 June 2007 and is expected to last for approximatelyfive days. As the appeal is sub judice, it would not be appropriate to make anycomment on the matter at this time. OutlookDCC has budgeted for high single digit operating profit growth for the financialyear to 31 March 2008 and is well positioned to augment this growth throughcontinued acquisition activity. Operating review DCC Energy 2007 2006 Change on prior year Revenue €2,247.9m €1,831.6m +22.7% Operating profit €60.5m €56.0m +8.2% Return on capital employed - excluding intangible assets 50.8% 53.8%- including intangible assets 23.1% 24.5% Allowing for the fact that temperatures in Britain and Ireland during thefinancial year were well above average, DCC Energy's profit growth of 8.2%,although below budget, was an excellent result. DCC Energy sold 3.2bn litres of product, an increase of 9.5% on the prior year,further strengthening its position as the leading oil and LPG distributor inBritain and Ireland. Following the acquisition of Carlton Fuels in July 2006,DCC Energy is now the largest oil distributor in Britain with an approximate 10%market share, having first entered the market in September 2001. While themilder weather reduced demand for heating products, excellent progress was madein winning new national accounts and transport fuels business. The LPG businessalso performed well. DCC's fuel card business had an excellent year. The business was enhanced by theintegration of the fuel card business of Carlton Fuels with DCC's existing fuelcard operations. DCC Energy is budgeting for strong profit growth in the current financial yearand is actively pursuing acquisition opportunities to further strengthen itsposition in the oil distribution market in Britain. DCC SerCom 2007 2006 Change on prior year Revenue €1,218.0m €1,084.6m +12.3% Operating profit €33.8m €25.0m +35.3% Operating margin 2.8% 2.3% Return on capital employed - excluding intangible assets 23.2% 24.4% - including intangible assets 14.3% 14.3% DCC SerCom achieved excellent profit growth in both its businesses, SerComDistribution and SerCom Solutions. SerCom Distribution built on its first half performance to deliver excellentprofit growth for the full year. The business benefited from its growingposition in the consumer and retail markets in Britain and Ireland, particularlywith the Xbox 360 console, and achieved strong organic volume growth in theperiod. During the year, the business successfully introduced a number ofconsumer electronics products and accessories under its own Linx and Exspectbrands, sourced in co-operation with SerCom Solutions. SerCom Distribution's enterprise business in continental Europe benefited fromimproved demand in its markets in France, Iberia and Benelux. The business alsogained market share and broadened its software portfolio in the areas of servervirtualisation and data management. SerCom Solutions achieved an excellent result. The business benefited fromrobust demand from its customer base and made good progress in developing itsprocurement operations in Poland and the US. During the year, SerCom Solutionsfurther strengthened its sourcing capability and now offers a full end-to-endsolution for Far East procurement from its base in China. Following this excellent performance, the current financial year is expected tobe more challenging for DCC SerCom with the result that a modest decline inprofitability in the year to 31 March 2008 is currently expected. However, thebusiness is continuing to develop well in consumer electronics and retailmarkets. Particular focus is being given to growing its own product range underits Linx and Exspect brands, capitalising on DCC SerCom's procurementcapabilities. DCC Healthcare 2007 2006 Change on prior year Revenue €234.3m €211.7m +10.7% Operating profit €23.0m €21.6m +6.0% Operating margin 9.8% 10.2% Return on capital employed - excluding intangible assets 58.4% 60.5% - including intangible assets 15.9% 16.7% DCC Healthcare generated strong profit growth of 11.9% in the second half of theyear, driven by continued strong sales growth and improved operating margins,which resulted in good profit growth for the full financial year. DCC Healthcare continued to achieve excellent organic growth in intravenouspharmaceuticals and related devices and services in Ireland and Britain, drivenby the success of its compounding service for Irish hospitals, new productintroductions and new agencies. The compounding business benefited from thesuccessful launch of its service under the national contract for paediatricnutrition, won during the year. Sales of medical, surgical and laboratoryproducts to hospitals in Ireland also grew strongly. In mobility and rehab, DCC Healthcare generated excellent organic profit growthin physiotherapy supplies in Britain, further strengthening its leadership inthis market segment. Sales in other product categories in Britain and Germanywere impacted by weak market conditions and supply chain management issues. DCCis continuing to invest in the development of its mobility and rehab business,including the expansion of its international presence through the acquisition inMarch 2007 of 60% of Ausmedic, a small company which is the leading supplier ofphysiotherapy products in Australia and New Zealand. DCC Health and Beauty Solutions (formerly known as DCC Nutraceuticals) is aleading provider of "source to shelf" outsourced solutions to the health andbeauty industry, principally in the areas of nutraceuticals, skin care and haircare. DCC recorded strong organic growth in nutraceuticals in Britain and exportmarkets due to the high quality solutions DCC provides to its customers. DCC Healthcare is budgeting to achieve strong profit growth in the currentfinancial year. DCC Food & Beverage 2007 2006 Change on prior year Revenue €279.5m €276.9m +0.9% Operating profit €15.1m €15.5m -2.2% Operating margin 5.4% 5.6% Return on capital employed - excluding intangible assets 51.9% 55.2%- including intangible assets 18.3% 18.7% DCC Food & Beverage achieved good growth in Ireland. However, this performancewas offset by difficult trading conditions in the British wine market. In Ireland, good growth was achieved in healthfoods, which benefited fromongoing increased investment in the Kelkin brand and new product development.Soft drinks, speciality teas, confectionery and snackfoods also performed well.The frozen and chilled logistics business achieved good growth and has recentlytaken on significant new business. In Britain, the wine market was flat over the last 12 months. This, coupled withincreased margin pressure from major customers, had a negative impact on revenueand margins of Bottle Green, DCC's British based wine business. DCC Food & Beverage is budgeting for continued growth in its Irish businesses,benefiting from trends towards convenience, healthfoods and indulgence impulsefoods along with the increased business won in frozen and chilled logistics. Asyet, there has been no pick-up in the profitability of Bottle Green, but recentevidence of a return to growth in the market as a whole should provide a betterbackground for the business. DCC Environmental 2007 2006 Change on prior year Revenue €66.5m €31.5m +111.3% Operating profit €10.6m €5.5m +91.4% Operating margin 15.9% 17.5% Return on capital employed - excluding intangible assets 38.9% 31.8%- including intangible assets 18.1% 17.4% DCC Environmental achieved excellent profit growth, benefiting from theacquisition of a 50% shareholding in William Tracey in May 2006 and 90% ofWastecycle in November 2006. William Tracey is Scotland's leading recycling and waste management business andWastecycle is a rapidly growing recycling and waste management company based inNottingham. These two acquisitions have significantly increased the scale of DCCEnvironmental and provide a platform for continued development, both organicallyand by acquisition, in the non-hazardous waste sector in Britain. Bothbusinesses have performed ahead of expectations in the period since acquisition. Profit in DCC's Irish environmental business was modestly ahead of the prioryear. An extensive re-branding programme under the enva brand has facilitatedmore effective marketing of its licenced facilities, expertise and broad rangeof environmental services in Ireland. Enva also opened a new water treatment andwaste transfer station facility in Ringaskiddy, Co. Cork, in January 2007. DCC Environmental is budgeting for excellent profit growth in the currentfinancial year based on anticipated strong underlying organic growth and a fullyear's contribution from the acquisitions completed last year. Associates 2007 2006 Change on prior yearShare of associates' profit aftertax €11.8m €25.5m -53.7% DCC's principal associate is Manor Park Homebuilders in which it holds a 49%shareholding. As expected, the contribution from Manor Park declined due toplanning delays which have had a short term impact on its profitability. Annual Report and Annual General MeetingDCC's 2007 Annual Report is expected to be posted to shareholders on 15 June2007. The Company's Annual General Meeting will be held at 11:00 am on Friday 20July 2007 in The Four Seasons Hotel, Simmonscourt Road, Ballsbridge, Dublin 4,Ireland. Forward-looking statementsThis announcement contains some forward-looking statements that represent DCC'sexpectations for its business, based on current expectations about futureevents, which by their nature involve risks and uncertainties. DCC believes thatits expectations and assumptions with respect to these forward-lookingstatements are reasonable. However, because they involve risk and uncertainty,which are in some cases beyond DCC's control, actual results or performance maydiffer materially from those expressed or implied by such forward-lookinginformation. This announcement and further information on DCC is available on the web atwww.dcc.ie There will be a presentation of these results to analysts and investors/fundmanagers in Dublin at 8:45 am today. The slides for this presentation can bedownloaded from DCC's website www.dcc.ie. A dial-in facility will be availablefor this meeting: Ireland: +353 1 2421 074 International: +44 20 8974 7940 Passcode: 816 269 89 Group Income Statementfor the year ended 31 March 2007 2007 2006 ---------------------------------------------- ---------------------------------------- Pre net Net exceptionals Pre net Net exceptionals (note 5) Total exceptionals exceptionals Total Notes •'000 •'000 •'000 •'000 •'000 •'000 Revenue 3 4,046,118 - 4,046,118 3,436,292 - 3,436,292 Cost of sales (3,544,403) - (3,544,403) (2,992,240) - (2,992,240)Gross profit 501,715 - 501,715 444,052 - 444,052 Operating costs (358,721) 24,516 (334,205) (320,457) 2,841 (317,616) Operating profitbefore amortisation of intangible assets 142,994 24,516 167,510 123,595 2,841 126,436 Amortisationof intangible assets (6,660) - (6,660) (4,956) - (4,956) Operating profit 4 136,334 24,516 160,850 118,639 2,841 121,480 Finance costs (31,338) - (31,338) (22,947) (1,145) (24,092)Finance income 20,488 - 20,488 15,906 - 15,906 Share of associatesprofit after tax 11,800 - 11,800 25,474 - 25,474 Profit before tax 137,284 24,516 161,800 137,072 1,696 138,768 Income tax expense (12,995) (7,700) (20,695) (13,479) - (13,479) Profit after tax for the year 124,289 16,816 141,105 123,593 1,696 125,289 Profit attributable to:Equity holders of the Company 140,186 123,764Minority interests 919 1,525 Profit after tax for the year 141,105 125,289 Earnings per ordinary share - basic 6 174.59c 153.92c Diluted earnings perordinary share - basic 6 170.83c 150.46c Group Balance Sheetas at 31 March 2007 2007 2006 Note •'000 •'000ASSETSNon-current assetsProperty, plant and equipment 319,621 267,494Intangible assets 321,369 248,475Investments in associates 90,332 76,789Deferred income tax assets 8,305 4,596Derivative financial instruments 3,091 8,989 -------- ------- 742,718 606,343 -------- ------- Current assetsInventories 177,450 138,734Trade and other receivables 597,257 522,143Derivative financial instruments 51 144Cash and cash equivalents 337,079 345,280 -------- ------- 1,111,837 1,006,301 -------- ------- Total assets 1,854,555 1,612,644 -------- ------- EQUITYCapital and reserves attributable to equity holders of the CompanyEquity share capital 22,057 22,057Share premium account 124,687 124,687Other reserves 1,400 1,400Other reserves - share options 4,807 3,392Cash flow hedge reserve (117) 20Foreign currency translation reserves (2,914) (10,344)Retained earnings 531,994 439,477 -------- ------- 681,914 580,689Minority interests 5,816 4,714 -------- -------Total equity 687,730 585,403 -------- ------- LIABILITIESNon-current liabilitiesBorrowings 268,579 292,793Derivative financial instruments 45,944 27,077Deferred income tax liabilities 14,748 10,718Retirement benefit obligations 16,372 20,679Provisions for liabilities and charges 6,122 -Deferred acquisition consideration 18,523 18,808Capital grants 2,393 1,991 -------- -------Total non-current liabilities 372,681 372,066 -------- ------- Current liabilitiesTrade and other payables 601,404 543,913Current income tax liabilities 50,849 36,697Borrowings 125,978 67,151Derivative financial instruments 236 73Provisions for liabilities and charges 4,807 3,785Deferred acquisition consideration 10,870 3,556 -------- -------Total current liabilities 794,144 655,175 -------- ------- Total liabilities 1,166,825 1,027,241 -------- ------- Total equity and liabilities 1,854,555 1,612,644 -------- ------- Net debt included above 8 (100,516) (32,681) -------- ------- Group Cash Flow Statementfor the year ended 31 March 2007 2007 2006 Note •'000 •'000Cash flows from operating activitiesGroup operating profit before exceptionals 136,334 118,639Depreciation 39,461 34,142Share-based payments expense 1,415 1,840Amortisation of intangible assets 6,660 4,956Increase in working capital (49,656) (11,162)Profit on disposal of property, plant andequipment (1,362) (1,295)Amortisation of capital grants (276) (112)Dividends received from associates 268 1,028Other (5,423) (5,114) ------- -------Cash generated from operations 127,421 142,922Exceptionals (4,916) (15,377)Interest paid (29,331) (20,573)Income tax paid (10,058) (12,157) ------- -------Net cash flows from operating activities 83,116 94,815 ------- ------- Investing activitiesInflowsProceeds from disposal of property, plant andequipment 44,394 11,223Interest received 20,211 13,650Capital grants received - 1,174 ------- ------- 64,605 26,047 ------- -------OutflowsPurchase of property, plant and equipment (60,651) (57,652)Acquisition of subsidiaries (100,213) (48,625)Purchase of minority interests (1,276) (506)Deferred acquisition consideration paid (4,176) (5,580) ------- ------- (166,316) (112,363) ------- -------Net cash flows from investing activities (101,711) (86,316) ------- ------- Financing activitiesInflowsProceeds from issue of shares 6,098 3,344Increase in finance lease liabilities 3,545 -Increase in interest-bearing loans and borrowings 56,303 36,624 ------- ------- 65,946 39,968 ------- -------OutflowsShare buyback (18,818) -Repayment of interest-bearing loans andborrowings (1,240) (663)Repayment of finance lease liabilities (4,801) (5,973)Dividends paid to equity holders of the Company 7 (36,381) (31,568)Dividends paid to minority interests (38) (201) ------- ------- (61,278) (38,405) ------- -------Net cash flows from financing activities 4,668 1,563 ------- ------- Change in cash and cash equivalents (13,927) 10,062Translation adjustment 4,196 (4,541)Cash and cash equivalents at beginning of year 319,918 314,397 ------- -------Cash and cash equivalents at end of year 310,187 319,918 ------- -------Cash and cash equivalents consists of:Cash at bank and short term deposits 337,079 345,280Overdrafts (26,892) (25,362) ------- ------- 310,187 319,918 ------- ------- Group Statement of Recognised Income and Expensefor the year ended 31 March 2007 2007 2006 •'000 •'000Items of income/(expense) recognised directly withinequity:Currency translation 7,430 (4,779)Group defined benefit pension schemes:- actuarial gain 1,576 1,779- movement in deferred tax asset (169) 82Deferred tax on share based payment 25 25(Losses)/gains relating to cash flow hedges (net) (159) 23Movement in deferred tax liability on cash flowhedges 22 (3) ------- -------Net income/(expense) recognised directly withinequity 8,725 (2,873) Group profit for the year 141,105 125,289 ------- ------- Total recognised income and expense for the year 149,830 122,416 ------- -------Attributable to:Equity holders of the Company 148,911 120,891Minority interests 919 1,525 ------- ------- Total recognised income and expense for the year 149,830 122,416 ------- ------- Group Statement of Changes in Equityfor the year ended 31 March 2007 2007 2006 •'000 •'000 At beginning of year 585,403 490,530 Issues of share capital 6,098 3,344Share based payment 1,415 1,840Share buyback (18,818) -Dividends (36,381) (31,568)Movement in minority interest 1,102 366Total recognised income and expense for the yearattributable to equity holders 148,911 120,891 -------- -------- At end of year 687,730 585,403 -------- -------- Notes to the Preliminary Resultsfor the year ended 31 March 2007 1. International Financial Reporting Standards Basis of Preparation The financial information presented in this preliminary announcement has beenprepared in accordance with EU endorsed International Financial ReportingStandards (IFRS), IFRIC interpretations and the Companies Acts 1963 to 2006applicable to companies reporting under IFRS. Statutory accounts The accounts in this preliminary announcement are not the statutory accounts ofthe Company, a copy of which is required to be annexed to the Company's annualreturn to the Companies Registration Office. A copy of the statutory accounts inrespect of the year ended 31 March 2007 will be annexed to the Company's annualreturn for 2007. The auditors of the Company have made a report, without anyqualification on their audit, on the statutory accounts of the Company inrespect of the year ended 31 March 2006 and the Directors approved the statutoryaccounts of the Company in respect of the year ended 31 March 2007 on 11 May2007. A copy of the statutory accounts of the Company in respect of the yearended 31 March 2006 has been annexed to the Company's annual return for 2006 tothe Companies Registration Office. 2. Reporting Currency The Group's financial statements are prepared in euro denoted by the symbol •.The exchange rates used in translating sterling balance sheet and incomestatement amounts were as follows: 2007 2006 €1=Stg£ €1=Stg£ Balance sheet (closing rate) 0.680 0.697Income statement (average rate) 0.680 0.682 3. Revenue 2007 2006 •'000 •'000 DCC Energy 2,247,858 1,831,608DCC SerCom 1,218,047 1,084,606DCC Healthcare 234,276 211,701DCC Food & Beverage 279,471 276,917DCC Environmental 66,466 31,460 -------- -------- Revenue 4,046,118 3,436,292 -------- -------- Of which acquisitions contributed 411,207 119,348 -------- -------- 4. Operating Profit 2007 2006 •'000 •'000 DCC Energy 60,538 55,965DCC SerCom 33,842 25,015DCC Healthcare 22,942 21,636DCC Food & Beverage 15,123 15,467DCC Environmental 10,549 5,512 -------- -------- 142,994 123,595 Amortisation of intangible assets (6,660) (4,956)Exceptional profit (net) 24,516 2,841 -------- -------- Operating profit 160,850 121,480 -------- -------- Of which acquisitions contributed 10,586 8,121 -------- -------- 5. Exceptional Profit (net) As stated in a DCC Stock Exchange Announcement on 9 February 2007, DCC sold asite of approximately 1.5 acres in the Sandyford Industrial Estate, Dublin 18for €40 million. Arising principally from this sale the Group made anexceptional profit on the disposal of property, plant and equipment of €33.2million. The Group incurred exceptional restructuring costs of €2.1 million andexceptional legal and related costs of €6.6 million, resulting in the netexceptional profit of €24.5 million. 6. Earnings per Ordinary Share and Adjusted Earnings per Ordinary Share 2007 2006 •'000 •'000 Profit after taxation and minority interests 140,186 123,764Amortisation of intangible assets (net of tax) 5,119 4,361Net exceptionals (net of tax of €7.7 million) (16,816) (1,696) -------- -------- Adjusted profit after taxation and minority interests 128,489 126,429 -------- -------- Basic earnings per ordinary share cent cent Basic earnings per ordinary share 174.59c 153.92c Adjusted basic earnings per ordinary share* 160.02c 157.23c Weighted average number of ordinary shares in issue during the period ('000) 80,294 80,408 Diluted earnings per ordinary share cent cent Diluted earnings per ordinary share 170.83c 150.46c Adjusted diluted earnings per ordinary share* 156.58c 153.70c Diluted weighted average number of ordinary shares ('000) 82,061 82,255 *adjusted to exclude amortisation of intangible assets and exceptionals net oftax. 7. Dividends 2007 2006 •'000 •'000Interim 2006/2007 dividend of 17.87 cent per share (2005/2006: 15.54 cent per share) 14,337 12,495Final 2005/2006 dividend of 27.31 cent per share (2004/2005: 23.75 cent per share) 22,044 19,073 -------- -------- 36,381 31,568 -------- -------- On 11 May 2007, the Board proposed a final 2006/2007 dividend of 31.41 cent pershare. The financial statements for the year ended 31 March 2007 do not reflectthis dividend payable. 8. Analysis of Net Debt 2007 2006 •'000 •'000Non-current assets:Derivative financial instruments 3,091 8,989 -------- -------- Current assets:Derivative financial instruments 51 144Cash and cash equivalents 337,079 345,280 -------- -------- 337,130 345,424 -------- --------Non-current liabilities:Borrowings (3,117) (6,327)Derivative financial instruments (45,944) (27,077)Unsecured Notes due 2008 to 2016 (265,462) (286,466) -------- -------- (314,523) (319,870) -------- --------Current liabilities:Borrowings (125,978) (67,151)Derivative financial instruments (236) (73) -------- -------- (126,214) (67,224) -------- -------- Net debt (100,516) (32,681) -------- -------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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