7th Nov 2005 07:00
DCC PLC07 November 2005 Interim Results for the Six Months ended 30 September 2005 % change on prior year ---------------------- • Reported Constant currency*Revenue 1,527.5 m +37.5% +39.1% Operating profit** 38.6 m +2.9% +6.7% Profit before exceptional items,amortisation of intangible assets and tax 41.1 m -3.0% +0.3% Adjusted earnings per share** 45.34 cent -4.4% -1.1% Dividend per share 15.54 cent +15.0% Net debt at 30 September 2005 94.7 m * all constant currency figures quoted in this report are based on retranslating current year figures at prior year translation rates** excluding exceptional items and amortisation of intangible assets DCC, the business support services group, today announced its results for thesix months ended 30 September 2005. Commenting on the results, DCC's Chief Executive/Deputy Chairman, Jim Flavin,said: "DCC achieved excellent growth in its Healthcare and Food & Beverage divisions and good growth in its Energy and Environmental divisions. The IT & Entertainment Products division was adversely affected by tough market conditions. The Board expects that the Group will achieve double-digit earnings growth in the seasonally more important second half of the financial year." For reference, please contact: Jim Flavin, Chief Executive/Deputy Chairman Fergal O'Dwyer, Chief Financial Officer Conor Murphy, Investor Relations Manager Tel: +353 1 2799 400Email: [email protected]: www.dcc.ie IFRS DCC adopted International Financial Reporting Standards (IFRS) on 1 April 2005and these Interim Results have been prepared in accordance with IFRS. All prioryear comparatives in this report have been restated under IFRS. A fullrestatement of DCC's results for the year ended 31 March 2005 under IFRS wasissued on 30 September 2005. Results A summary of the results for the six months to 30 September is as follows: % change on prior year ----------------------- •'m Reported Constant currency*Revenue 1,527.5 +37.5% +39.1% -------- ------ ------ Divisional operating profitEnergy 10.7 +1.2% +6.4%IT & Entertainment Products 7.6 -37.0% -34.0%Healthcare 10.1 +48.1% +49.7%Food & Beverage 7.4 +37.9% +44.3%Environmental 2.8 +2.6% +4.7% ------- ------- ------ Group operating profit** 38.6 +2.9% +6.7% Share of profit after tax of associated undertakings 5.7 -20.7% -20.7% Net financing costs (3.2) --------------------------------------Profit before exceptional items,amortisation of intangible assets and tax 41.1 -3.0% +0.3% ---------------------------------------Adjusted EPS (cent) 45.34 -4.4% -1.1% -------------------------------------- * all constant currency figures quoted in this report are based on retranslating current year figures at prior year translation rates** excluding exceptional items and amortisation of intangible assets DCC achieved excellent growth in its Healthcare and Food & Beverage divisionsand good growth in its Energy and Environmental divisions. The IT &Entertainment Products division was adversely affected by tough marketconditions. Group operating profit increased by 2.9% on a reported basis and by6.7% on a constant currency basis. The share of profit after tax of associated undertakings of €5.7m substantiallyrelates to DCC's 49% shareholding in Manor Park Homebuilders. Under IFRS theshare of profits of associated undertakings, which was previously included inoperating profit, is now separately shown net of the associated undertakings'financing costs and tax. The net financing cost for the period increased to €3.2 million (2004: €2.2million). Arising from the decreased contribution from associated undertakings, profitbefore exceptional items, amortisation of intangible assets and tax decreased by3.0% on a reported basis but increased by 0.3% on a constant currency basis. Adjusted earnings per share for the period decreased by 4.4% on a reported basisand by 1.1% on a constant currency basis. Acquisitions and Development Acquisition and development expenditure in the period amounted to €80.3 millionof which €26.7 million related to capital expenditure. DCC's ongoing acquisitionsearch process has resulted in a number of acquisitions at a total committedcost of €53.6 million. The cash impact of acquisitions in the period was €48.1million. On 1 April 2005, DCC Energy acquired the trade, assets and goodwill of BrettFuels, a small UK based oil distributor. Brett Fuels distributes approximately45 million litres of oil products per annum and has been integrated into DCC'soil distribution business in the UK. On 13 June 2005, DCC Healthcare expanded its acute and community care businessthrough the acquisition of Physio-Med Services Limited, a market-leadingsupplier of a broad range of physiotherapy and rehabilitation equipment andconsumables to physiotherapists, occupational therapists, podiatrists,chiropractors and end users. On 15 June 2005, DCC's IT & Entertainment Products division acquired PiltonCompany, a leading distributor of DVDs, computer games and other products to thehome entertainment market in Ireland and with a developing business in Britain.On 6 July 2005, the division expanded its continental European operations intoBelgium, Holland and Luxembourg through the acquisition of a small company, ABComputing. This business is complementary to the division's operations inFrance, Spain and Portugal. The Group is actively pursuing further acquisition opportunities in each of itsdivisions. Financial strength At 30 September 2005, the Group had net debt of €94.7 million and total equityof €503.0 million. In line with normal seasonal trends, working capitalincreased by €32.9 million since 31 March 2005 to €134.2 million, which equatesto 14.0 days sales and compares favourably with 14.4 days at 30 September 2004. DCC's strong financial position leaves the Group well placed to pursue itsorganic and acquisition growth objectives. Interim dividend The Board has decided to increase the interim dividend by 15.0% to 15.54 centper share. This dividend will be paid on 1 December 2005 to shareholders on theregister at the close of business on 18 November 2005. Fyffes litigation The hearing of the Fyffes legal action concluded on 18 July 2005. While no datehas been set, a judgment is anticipated before Christmas. The Board of DCC set out its views on the Fyffes action in a comprehensive StockExchange announcement on 24 January 2002. Outlook The Board expects that the Group will achieve double-digit earnings growth inthe seasonally more important second half of the financial year. Operating review Energy % change------- ----------------------- 2005 2004 Reported Constant currencyRevenue €822.0m €461.7m +78.1% +80.6% Operating profit €10.7m €10.6m +1.2% +6.4% DCC's energy business recorded excellent sales volume growth driven by theacquisitions in the prior year of Shell Direct UK and Dyneley Holdings and bygood organic growth. Revenue growth also reflected the increase in oil productcosts. Despite this increase the gross profit per litre of product sold wassatisfactory. The Shell Direct business performed ahead of expectations but as anticipatedincurred a seasonal loss. This business is well placed for the seasonallyimportant second half. IT & Entertainment Products % change---------------------------- -------------------- 2005 2004 Reported Constant currencyRevenue €448.9m €457.1m -1.8% -0.7% Operating profit €7.6m €12.0m -37.0% -34.0% Operating margin 1.7% 2.6% SerCom Distribution, DCC's IT & Entertainment Products business, wassignificantly impacted by very difficult trading conditions in the secondquarter of the financial year. The business was particularly impacted by a rapiddeterioration, during that period, in the retail trading environment in Britainand a significant decline in demand in the French enterprise market. The profitcontribution from the Irish businesses was in line with expectations. The division achieved good organic sales volume growth, but revenue was impactedby severe product price deflation. This deflation also increased margin pressurein a highly competitive marketplace. Following the recent acquisitions of Pilton Company and AB Computing, DCC isfocused on driving sales growth in IT & Entertainment Products throughleveraging its strong market positions and by capitalising on its enhanced rangeof products across the different geographic markets in which the businessoperates. Focus will also be maintained on margin and cost management. SerCom Solutions, the supply chain management business, has been successfullyrestructured and has returned to profitability. Revenues increased by 21.3% to€54.1m and the business earned a modest operating profit of €0.2m compared to anoperating loss of €1.0m in the first six months of the prior year. Healthcare % change----------- ----------------------- 2005 2004 Reported Constant currencyRevenue €101.6m €77.3m +31.5% +32.8% Operating profit €10.1m €6.8m +48.1% +49.7% Operating margin 9.9% 8.8% DCC's healthcare business generated excellent sales and profit growth. Good profit growth was achieved in acute and community care products, driven bythe acquisition of Physio-Med Services and continued excellent growth in salesof intravenous pharmaceutical products and related devices. To accelerate the growth of DCC Group own branded acute and community careproducts, DCC Healthcare has opened a procurement and quality control office inShenzhen, China. DCC Healthcare's contract services business to the health & beauty sectorachieved excellent organic and acquisition growth. The acquisition of LalehamHealthcare in December 2004 has significantly expanded the breadth of DCC'scontract services in this sector and is opening up new growth opportunities. Food & Beverage % change---------------- ---------------------- 2005 2004 Reported Constant currencyRevenue €139.7m €101.9m +37.1% +37.7% Operating profit €7.4m €5.4m +37.9% +44.3% Operating margin 5.3% 5.3% DCC's Food & Beverage business achieved excellent sales and profit growth due toorganic growth and acquisition activity in the first half of the prior year. Wine, snackfoods, frozen and chilled logistics and Kylemore each made anincreased profit contribution. In healthfoods, marketing investment in theKelkin brand and new Kelkin product development for launch in the second halfcaused a small reduction in its profit contribution. Environmental % change-------------- ---------------------- 2005 2004 Reported Constant currencyRevenue €15.3m €13.3m +15.1% +15.7% Operating profit €2.8m €2.8m +2.6% +4.7% Operating margin 18.5% 20.8% DCC's Environmental business achieved good sales growth. Operating profitsincreased at a lower rate due to a change in sales mix. Associated undertakings % change----------------------- ---------------------- 2005 2004 Reported Constant currencyShare of profit after tax ofassociated undertakings €5.5m €7.1m -20.7% -20.7% DCC's principal associated undertaking is Manor Park Homebuilders. As had beenanticipated, DCC's share of Manor Park Homebuilders' profit after tax declinedin the first half due to the phasing of sales in the current financial year. Note: All constant currency figures quoted in this report are based on retranslating current year figures at prior year translation rates. This announcement and further information on DCC is available on the web at www.dcc.ie There will be a presentation of these results to analysts and investors/fund managers in Dublin at 8:45 GMT today. The slides for this presentation can be downloaded from DCC's website www.dcc.ie. A dial-in facility will be available for this meeting: Ireland: (01) 2421074 International: +44 208 974 7916 Passcode: C 369549 GROUP INCOME STATEMENTfor the six months ended 30 September 2005 Unaudited 6 months ended Unaudited 6 months ended Audited year ended 30 September 2005 30 September 2004 31 March 2005 ---------------------------------- ---------------------------------- --------------------------------- Pre Exceptionals Pre net Net Pre net Net exceptionals (note 5) Total exceptionals exceptionals Total exceptionals exceptionals Total Notes •'000 •'000 •'000 •'000 •'000 •'000 •'000 •'000 •'000 Revenue 3 1,527,500 1,527,500 1,111,178 1,111,178 2,644,728 2,644,728 Cost of sales (1,313,596) (1,313,596) (929,954) (929,954) (2,258,200) (2,258,200) Gross profit 213,904 213,904 181,224 181,224 386,528 386,528 Operating costs (175,289) (4,187) (179,476) (143,694) (1,376) (145,070) (274,715) (15,967) (290,682) Operating profitbefore amortisationof intangibleassets 38,615 (4,187) 34,428 37,530 (1,376) 36,154 111,813 (15,967) 95,846Amortisationof intangibleassets (2,153) (2,153) (145) (145) (1,261) (1,261) Operatingprofit 4 36,462 (4,187) 32,275 37,385 (1,376) 36,009 110,552 (15,967) 94,585 Finance costs(net) (3,133) (1,145) (4,278) (2,233) (2,572) (4,805) (5,694) (4,809) (10,503) Share of associatesprofit aftertax 5,660 5,660 7,134 7,134 16,807 16,807 Profit before tax 38,989 (5,332) 33,657 42,286 (3,948) 38,338 121,665 (20,776) 100,889 Income taxexpense (3,548) (4,074) (12,107) Profit aftertax for thefinancial period 30,109 34,264 88,782 Profitattributable to:Equity holdersof the Company 29,197 33,822 87,760 Minorityinterests 912 442 1,022 Profit aftertax for thefinancial period 30,109 34,264 88,782 Earnings perordinary share- basic 6 36.35c 42.31c 109.68c Dilutedearnings perordinary share- basic 6 35.49c 41.43c 107.16c Dividend perordinary share(cent) 7 15.54c 13.51c 37.26c Group Balance Sheetas at 30 September 2005 Unaudited Unaudited Audited 30 Sept. 30 Sept. 31 March 2005 2004 2005 Note •'000 •'000 •'000ASSETSNon-current assetsProperty, plant and equipment 263,458 230,392 254,791Intangible assets 246,207 172,148 208,053Investment in associates 57,304 41,513 51,384Derivative financial instruments 9,086 - -Deferred income tax assets 7,518 6,763 6,957 583,573 450,816 521,185Current assetsInventories 142,521 126,886 124,049Trade and other receivables 436,714 346,799 410,190Derivative financial instruments 519 - -Cash and cash equivalents 287,817 325,488 353,304 867,571 799,173 887,543 Total assets 1,451,144 1,249,989 1,408,728 EQUITYCapital and reserves attributable to the Company's equity holdersEquity share capital 22,045 22,035 22,042Share premium account 124,528 124,438 124,506Other reserves 2,432 1,400 1,400Other reserves - shares to be issued 1,400 901 1,552Cash flow hedge reserve 182 - -Foreign currency translation reserves (1,144) (7,492) (5,565)Retained earnings 349,094 300,626 343,936 Minority interests 4,453 4,168 4,348 Total equity 502,990 446,076 492,219 LIABILITIESNon-current liabilitiesInterest-bearing loans and borrowings 309,042 322,870 316,644Derivative financial instruments 19,306 - -Deferred income tax liabilities 10,762 3,893 9,996Retirement benefit obligations 27,753 23,434 25,380Deferred acquisition consideration 16,316 9,549 10,839Capital grants 914 1,039 958 Total non-current liabilities 384,093 360,785 363,817 Current liabilitiesInterest-bearing loans and borrowings 63,568 28,642 45,553Derivative financial instruments 184 - -Trade and other payables 455,445 371,756 462,866Current income tax liabilities 37,816 36,701 37,189Deferred acquisition consideration 7,048 6,029 7,084 Total current liabilities 564,061 443,128 552,692 Total liabilities 948,154 803,913 916,509 Total equity and liabilities 1,451,144 1,249,989 1,408,728 Net debt 8 (94,678) (26,024) (8,893) Group Cash Flow Statementfor the six months ended 30 September 2005 Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2005 2004 2005 •'000 •'000 •'000Cash flows from operating activitiesGroup operating profit before exceptionalitems 36,462 37,385 110,552Depreciation 16,785 15,888 32,867Share-based payments expense 880 352 1,003Amortisation of intangible assets 2,153 145 1,261Increase in working capital (32,884) (39,489) (24,678)Profit on disposal of property, plant andequipment (420) (745) (2,050)Amortisation of capital grants (44) (73) (155)Dividends received from associates 581 428 1,354Other (2,513) (1,502) (3,758)Cash generated from operations 21,000 12,389 116,396Exceptional items (11,727) (521) (6,560)Interest paid (9,417) (5,951) (15,627)Income tax paid (3,403) (3,922) (9,289)Net cash flow from operating activities (3,547) 1,995 84,920 Cash flows from investing activitiesInflowsProceeds from disposal of fixed assets 4,637 1,665 7,875Interest received 7,096 5,211 12,833 11,733 6,876 20,708OutflowsPurchase of property, plant and equipment (27,620) (18,521) (43,647)Acquisition of subsidiaries (45,295) (32,706) (77,288)Purchase of minority interests (506) (6) (905)Deferred acquisition consideration paid (2,272) (3,902) (2,955) (75,693) (55,135) (124,795)Net cash outflow from investing activities (63,960) (48,259) (104,087) Cash flows from financing activitiesInflowsProceeds from issue of shares 586 3,842 6,858Increase in interest-bearing loans andborrowings 35,666 213,244 213,244Increase in finance lease liabilities - 186 - 36,252 217,272 220,102OutflowsShare buyback - (26,762) (26,762)Repayment of interest-bearing loans andborrowings - (86,458) (88,918)Repayment of finance lease liabilities - - (5,062)Dividends paid to equity holders of theCompany (19,073) (16,401) (27,212)Dividends paid to minority interests (147) (122) (176) (19,220) (129,743) (148,130) Net cash inflow from financing activities 17,032 87,529 71,972 Change in cash and cash equivalents (50,475) 41,265 52,805Translation adjustment 2,766 (7,596) (10,074)Cash and cash equivalents at beginning ofperiod 314,397 271,666 271,666Cash and cash equivalents at end of period 266,688 305,335 314,397 Cash and cash equivalents consists of:Cash at bank and short term deposits 287,817 325,488 353,304Overdrafts (21,129) (20,153) (38,907) 266,688 305,335 314,397 Group Statement of Recognised Income and Expensefor the six months ended 30 September 2005 Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2005 2004 2005 •'000 •'000 •'000 Items of income/(expense) recognised directlywithin equity:Currency translation 4,421 (7,492) (5,565)Group defined benefit pension schemes:- actuarial loss (4,257) (4,938) (7,742)- deferred tax asset 406 750 796Gains relating to cash flow hedges (net) 182 - -Deferred tax recognised through equity 13 - -Net income/(expense) recognised directlywithin equity 765 (11,680) (12,511) Group profit for the financial period 30,109 34,264 88,782 Total recognised income and expense for theperiod 30,874 22,584 76,271 Attributable to:Equity holders of the Company 29,962 22,142 75,249Minority interests 912 442 1,022 Total recognised income and expense for theperiod 30,874 22,584 76,271 Group Statement of Changes in Equityfor the six months ended 30 September 2005 Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2005 2004 2005 •'000 •'000 •'000 At beginning of period 492,219 462,816 462,816Impact of adoption of IAS 32 and 39 (1,689) - - At beginning of period as adjusted 490,530 462,816 462,816 Issue of share capital 586 3,842 6,858Share based payment 880 352 1,003Share buyback - (26,762) (26,762)Dividends (19,073) (16,401) (27,212)Movement in minority interest 297 87 397Business combinations (192) - (130)Total recognised income and expense for theperiod attributable to equity holders 29,962 22,142 75,249 At end of period 502,990 446,076 492,219 Notes to the Interim Resultsfor the six months ended 30 September 2005 1. International Financial Reporting Standards Basis of Preparation The financial information presented in this Interim Report has been prepared inaccordance with the Group's accounting policies under International FinancialReporting Standards (IFRS). The transition date for implementation of IFRS bythe Group was 1 April 2004. The financial statements for the six months ended 30September 2004 and for the year ended 31 March 2005, which were prepared inaccordance with accounting policies generally accepted in the Republic ofIreland, have been restated under IFRS with effect from the transition date. TheGroup has availed of the exemption under the transition rules of IFRS 1 not torestate the comparative information under IAS 32 and IAS 39. Comparativeinformation on financial instruments for the six months ended 30 September 2004and for the year ended 31 March 2005 is presented on the existing Irish GAAPbasis. Note 9 details the impact of adoption of IAS 32 and IAS 39 on theConsolidated Balance Sheet as at 1 April 2005. Full details of the accounting policies adopted by the Group on implementationof IFRS, and of the impact on the reported results and balance sheet of theGroup on transition to IFRS, were published on 30 September 2005 and areavailable on the Group's website www.dcc.ie. Approved IFRS The interim financial information has been prepared in accordance with therecognition and measurement principles of IFRS and International FinancialReporting Interpretations Committee (IFRIC) interpretations expected to beapplicable at 31 March 2006. The majority of the IASs/IFRSs have been approvedby the European Commission. However, a number of IASs/IFRSs remain to beapproved at the date of publication of this document, and failure to approvethese outstanding standards in time for financial reporting for the year ending31 March 2006 could lead to changes in the basis of accounting or in the basisof presentation of certain financial information from that adopted for thepurposes of this Interim Report. In particular, the Directors have assumed thatthe European Commission will endorse the Amendment to IAS 19 Employee Benefits,Actuarial Gains and Losses, Group Plans and Disclosures issued by the IASB inDecember 2004. Furthermore, the financial information provided in this document is subject tothe issuance by the International Accounting Standards Board of additionalinterpretations prior to the end of the financial year to 31 March 2006 whichmay require changes to the financial information contained in this document forthe full year to 31 March 2005, prior to its inclusion as comparative data inthe published consolidated financial statements for the year ending 31 March2006 under IFRS. Joint Ventures During the period the Group undertook a review to ascertain whether certainassociated undertakings may be more correctly treated as joint ventures. Theresult of this review was that the Group's 50% shareholdings in Kylemore FoodsHoldings Limited and KP (Ireland) Limited are both required under IAS 31Interests in Joint Ventures to be treated as joint ventures. In line with thebenchmark methodology contained in IAS 31, the Group has opted to applyproportionate consolidation in accounting for its interests in joint ventureundertakings. Comparative amounts have been regrouped and restated, wherenecessary, on the same basis as the amounts for the current period. Thereclassification of certain associated undertakings as joint ventures has no neteffect on total equity, retained earnings or adjusted earnings per share for thecurrent and comparative periods. 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 profit andloss amounts were as follows: 6 months ended 6 months ended Year ended 30 Sept. 2005 30 Sept. 2004 31 March 2005 €1=Stg£ €1=Stg£ €1=Stg£ Balance sheet (closing rate) 0.683 0.687 0.689Profit and loss (average rate)* 0.682 0.637 0.672 * The average exchange rates for the six months to 30 September 2004 and for the year ended 31 March 2005 have been adjusted for the impact of forward foreign exchange contracts entered into to hedge sterling profits for those periods. 3. Revenue Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2005 2004 2005 •'000 •'000 •'000 Energy 822,026 461,661 1,240,551IT & Entertainment Products 448,890 457,070 983,483Healthcare 101,605 77,280 162,279Food & Beverage 139,701 101,888 232,635Environmental 15,278 13,279 25,780 Revenue 1,527,500 1,111,178 2,644,728 Of which acquisitions contributed 51,785 40,383 312,253 4. Operating Profit Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2005 2004 2005 •'000 •'000 •'000 Energy 10,734 10,607 51,806IT & Entertainment Products 7,550 11,977 26,292Healthcare 10,072 6,800 15,441Food & Beverage 7,428 5,387 12,827Environmental 2,831 2,759 5,447 38,615 37,530 111,813 Amortisation of intangible assets (2,153) (145) (1,261)Operating exceptional items (4,187) (1,376) (15,967) Operating profit 32,275 36,009 94,585 Of which acquisitions contributed 2,451 1,656 9,596 5. Exceptional Items Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2005 2004 2005 •'000 •'000 •'000 Litigation and restructuring costs 4,187 1,376 15,967Foreign exchange losses on intercompanyfinancing loans 1,145 2,572 4,809 ------------------------------------ 5,332 3,948 20,776 Litigation costs totalled €4.187 million and relate to legal costs beingincurred in relation to the Pihsiang and Fyffes legal cases. Certain intercompany loans had been treated under Irish GAAP as part of netinvestment in foreign operations and foreign exchange gains or losses arising onthese loans had been recognised directly in reserves. On transition from IrishGAAP, certain of these loans between fellow subsidiaries do not qualify underIFRS as part of net investment in foreign operations and therefore gains orlosses on these loans must be recognised in the Income Statement. The financial impact of the above is a charge to the Income Statement of €1.145million for the six months ended 30 September 2005 (six months ended 30September 2004: charge of €2.572 million) in respect of foreign exchange lossesand the amounts are included in exceptional items. The majority of the intercompany balances which gave rise to these accountingcharges (previously taken to reserves) were eliminated during the year ended 31March 2005 and the half year ended 30 September 2005 so as to eliminateaccounting volatility from 30 September 2005 onwards. 6. Earnings per Ordinary Share and Adjusted Earnings per Ordinary Share Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2005 2004 2005 •'000 •'000 •'000 Profit after taxation and minority interests 29,197 33,822 87,760Amortisation of intangible assets 2,153 145 1,261Tax credit on amortisation of intangibleassets (258) - -Exceptional items 5,332 3,948 20,776 Adjusted profit after taxation and minorityinterests 36,424 37,915 109,797 Basic earnings per ordinary share cent cent cent Basic earnings per ordinary share 36.35c 42.31c 109.68c Adjusted basic earnings per ordinary share* 45.34c 47.43c 137.22c Weighted average number of ordinary shares in issue during the period ('000) 80,327 79,932 80,018 Diluted earnings per ordinary share cent cent cent Diluted earnings per ordinary share 35.49c 41.43c 107.16c Adjusted diluted earnings per ordinary share* 44.28c 46.44c 134.07c Diluted weighted average number of ordinaryshares ('000) 82,258 81,635 81,898 *adjusted to exclude amortisation of intangible assets and exceptional items. 7. Dividends Unaudited Unaudited Audited 6 months 6 months year ended ended ended 30 Sept. 30 Sept. 31 March 2005 2004 2005 •'000 •'000 •'000Interim dividend 2004/2005 of 13.51cent per share - - 10,802Proposed final dividend 2004/2005of 23.75 cent per share (2003/2004: 20.65 cent per share) 19,070 16,824 16,824Additional dividend/dividendattaching to shares bought-back 3 (423) (414) ---------------------------------------- 19,073 16,401 27,212 On 4 November 2005, the Board approved an interim dividend of 15.54 cent pershare (2004/2005 interim dividend: 13.51 cent per share). These interim accountsdo not reflect this dividend payable. 8. Analysis of Net Debt Unaudited Unaudited Audited 30 Sept. 30 Sept. 31 March 2005 2004 2005 •'000 •'000 •'000Non-current assets:Derivative financial instruments 9,086 - - Current assets:Derivative financial instruments 519 - -Cash and term deposits 287,817 325,488 353,304 ------------------------------------- 288,336 325,488 353,304 Non-current liabilities:Interest-bearing loans and borrowings (11,568) (17,434) (11,550)Derivative financial instruments (19,306) - -Unsecured Notes due 2008 to 2016 (297,474) (305,436) (305,094) ------------------------------------- (328,348) (322,870) (316,644) Current liabilities:Interest-bearing loans and borrowings (63,568) (28,642) (45,553)Derivative financial instruments (184) - - ------------------------------------ (63,752) (28,642) (45,553) Net debt (94,678) (26,024) (8,893) Including Group share of joint ventures'net debt (563) (1,149) (701) Note:The comparative financial information at 30 September 2004 and 31 March 2005have been restated on an IFRS basis, with the exception of IAS 32 and IAS 39which were implemented from 1 April 2005. This impacts the comparison of Groupnet debt which, on a comparable basis, was €93.606 million at 30 September 2005. 9. Impact of Adoption of IAS 32 & 39 - Financial Instruments As permitted under IFRS 1, the Group applied hedge accounting in accordance withIrish GAAP for the year ended 31 March 2005 and adopted IAS 32 and IAS 39 from 1April 2005. The effect of adopting IAS 32 and IAS 39 on the balance sheet of theGroup at 1 April 2005 is shown in the table below: IFRS Effect of IFRS 31 March adoption of 1 April 2005 IAS 32 & 39 2005 •'000 •'000 •'000 Non-current assets 521,185 9,006 530,191Current assets 887,543 - 887,543 Total assets 1,408,728 9,006 1,417,734 Equity 492,219 (1,689) 490,530 Non-current liabilities 363,817 10,695 374,512Current liabilities 552,692 - 552,692Total liabilities 916,509 10,695 927,204 Total equity and liabilities 1,408,728 9,006 1,417,734 Included within non-current assets and non-current liabilities are €8.776million and €8.934 million respectively in relation to the fair value ofinterest rate contracts entered into by the Group to swap floating rate assetsand liabilities into fixed rate assets and liabilities. The balance of €0.158million is included within equity and deferred tax. The Group uses cross currency interest rate swaps, interest rate swaps andcurrency swaps to hedge interest rate and currency risks in relation to theGroup's Unsecured Notes due 2008/11 and 2014/16. The Group's non-currentliabilities have been increased by €29.816 million to reflect the fair value ofthese derivatives and reduced by €28.055 million to reflect the adjustment ofthe carrying amount of the Group's Unsecured Notes due 2008/11 and 2014/16 inaccordance with fair value hedge accounting rules. The balance of €1.761 millionhas been included within equity and deferred tax. 10. Distribution of Interim Report This announcement and further information on DCC is available at the Company'swebsite www.dcc.ie. A printed copy of this report is being posted toshareholders and will be available to the public at the Company's registeredoffice at DCC House, Stillorgan, Blackrock, Co. Dublin, Ireland. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
DCC