DCC Regulatory News (DCC)

10 Nov 2009 07:00



10 November 2009

Interim Results for the Six Months ended 30 September 2009

RESULTS HIGHLIGHTS
	€		Change on prior year
			Reported	Constant currency†
Revenue	2,808.8m		-11.6%	-4.3%
Operating profit*	56.6m		-6.7%	+0.9%
Profit before net exceptional items, amortisation of intangible assets and tax	51.4m		+1.6%	+9.6%
Adjusted earnings per share*	50.07 cent		-8.7%	-1.4%
Dividend per share	23.74 cent		+5.0%
Free cash flow**	70.5m (2008: €67.7m)
Net debt	87.7m (2008: €193.2m)
† all constant currency figures quoted in this report are based on retranslating 2009/10 figures at prior year translation rates * excluding net exceptionals and amortisation of intangible assets ** after interest and tax payments

DCC, the business support services group, today announced its results for the six months ended 30 September 2009.

Commenting on the results, Tommy Breen, Chief Executive said:

"DCC's operating profit increased by 0.9% on a constant currency basis and profit before exceptional items, amortisation of intangible assets and tax increased by 9.6%, also on a constant currency basis.  This was achieved against a backdrop of difficult economic and trading conditions and a comparative period last year in which the Group achieved exceptionally strong operating profit growth of 30.3% on a constant currency basis.

DCC Energy, DCC's largest division, achieved excellent operating profit growth reflecting the successful integration of a number of recent acquisitions and good cost management. DCC SerCom performed strongly driven by excellent results in both its Retail and Reseller distribution  businesses in Britain.  

Cash generation in the Group was again very strong and helped drive a significant reduction in net finance costs. As anticipated the Group's effective tax rate has increased and adjusted earnings per share declined by 1.4% on a constant currency basis.

While the business environment remains uncertain, the Group now expects that both operating profit and adjusted earnings per share, on a constant currency basis, for the year to 31 March 2010 will be broadly in line with last year, which is a modest improvement in the Group's expectation from the time of the Interim Management Statement on 17 July 2009. However, the impact of the translation into euro of the significant proportion of DCC's profit which is earned in sterling at an average exchange rate of Stg£0.90 = €1 (compared to an average translation rate last year of Stg£0.8262 = €1) would still result in both reported operating profit and reported adjusted earnings per share being in the range of 5% to 10% behind last year, which is in line with market expectations.

DCC's continuing strong financial position, excellent cash generation and strong market positions in its key developmental areas leave the Group well placed to benefit from an increasing number of potential acquisition opportunities. In particular, the scale of DCC's Energy distribution business and its strong relationships with oil majors are providing a growing number of acquisition opportunities, as evidenced by the acquisition of Shell's downstream oil distribution business in Austria, announced today."

For reference, please contact: 

Tommy Breen, Chief Executive Tel: +353 1 2799 400

Fergal O'Dwyer, Chief Financial Officer Email: investorrelations@dcc.ie

Conor Murphy, Investor Relations Manager www.dcc.ie

  Interim Management Report

Results 

A summary of the results for the six months ended 30 September 2009 is as follows:

	€'m		Change on prior year
			Reported		Constant  currency†
Revenue	2,808.8		-11.6%		-4.3%
Operating profit*
DCC Energy	25.2		+11.0%		+22.9%
DCC SerCom	13.7		+1.5%		+8.5%
DCC Healthcare	8.7		-11.7%		-8.0%
DCC Environmental	4.7		-35.7%		-28.9%
DCC Food & Beverage	4.3		-41.2%		-40.6%
Group operating profit*	56.6		-6.7%		+0.9%
Finance costs (net)	(5.2)		-49.1%		-44.2%
Profit before net exceptionals, amortisation of intangible assets and tax	51.4		+1.6%		+9.6%
Exceptional charge	(4.5)
Amortisation of intangible assets	(2.6)
Profit before tax	44.3
Taxation	(9.2)
Profit after tax	35.1
Adjusted earnings per share*	50.07 cent		-8.7%		-1.4%
Dividend per share	23.74 cent		+5.0%
Operating cash flow	102.1m (2008: €110.7m)
Free cash flow**	70.5m (2008: €67.7m)
Net debt at 30 September 2009	87.7m (2008: €193.2m)
† all constant currency figures quoted in this report are based on retranslating 2009/10 figures at prior year translation rates * excluding net exceptionals and amortisation of intangible assets ** after interest and tax payments

Revenue

Group revenue declined by 4.3% on a constant currency basis as a result of lower underlying oil prices compared to the prior year, despite a 15% increase in sales volumes in DCC Energy. Excluding DCC Energy, Group revenue was in line with the prior year on a constant currency basis.

Operating profit performance 

Group operating profit, on a constant currency basis, increased by 0.9%. This was achieved against a backdrop of difficult economic and trading conditions and a comparative period last year in which the Group achieved exceptionally strong operating profit growth of 30.3% on a constant currency basis. DCC Energy, DCC's largest division, achieved excellent operating profit growth reflecting the successful integration of a number of recent acquisitions and good operating cost management. DCC SerCom performed strongly, driven by excellent results in both its Retail and Reseller distribution businesses in Britain. As anticipated, DCC Healthcare, DCC Environmental and DCC Food & Beverage experienced difficult trading conditions and, as a result, operating profit in each of these businesses declined in the period.

The Group's focus on achieving cost efficiencies across all parts of its operations has resulted in operating costs being 7% lower than in the six months to 30 September 2008 (on a constant currency basis and adjusted for the impact of acquisitions).

Approximately 73% of the Group's operating profit in the period was denominated in sterling. The average exchange rate at which sterling profits were translated during the period was Stg£0.8809 = €1, compared to an average translation rate of Stg£0.7930 = €1 for the same period in the prior year, an adverse movement of 10%. The adverse translation impact on Group operating profit was €4.6 million, resulting in an operating profit decline of 6.7% on a reported basis. 

Finance costs (net) 

Net finance costs for the period decreased significantly to €5.2 million (2008: €10.2 million) primarily as a result of lower average net debt levels. The Group's net debt averaged €118 million during the period, significantly lower than the average of €238 million during the six months ended 30 September 2008.

Profit before net exceptionals, amortisation of intangible assets and tax

Profit before net exceptionals, amortisation of intangible assets and tax of €51.4 million increased by 9.6% on a constant currency basis (an increase of 1.6% on a reported basis).

Exceptional charge and amortisation of intangible assets

The Group incurred a net exceptional charge before tax of €4.5 million, of which approximately €2.4 million was incurred in relation to restructuring costs as a result of the integration of recently acquired businesses and the implementation of cost reduction programmes across the Group.

The charge for the amortisation of intangible assets decreased to €2.6 million from €3.2 million.

Taxation

As anticipated, the effective tax rate for the Group increased and was 19% compared to 11% for the six months ended 30 September 2008 and 13% for the full year ended 31 March 2009. The increase is primarily due to lower available interest deductions against the Group's taxable profits in the UK.

Adjusted earnings per share 

Adjusted earnings per share decreased by 1.4% on a constant currency basis (a decrease of 8.7% on a reported basis).

Interim dividend increase of 5.0%

The Board has decided to increase the interim dividend by 5.0% to 23.74 cent per share.  This dividend will be paid on 4 December 2009 to shareholders on the register at the close of business on 20 November 2009. 

Cash flow

The free cash flow of €70.5 million generated by the Group for the six months ended 30 September 2009 can be summarised as follows:

	2009 €'m	2009 €'m	2008 €'m	2008 €'m
Operating profit		56.6		60.6
Decrease/(increase) in working capital
DCC Energy	42.9		45.6
DCC SerCom	(25.1)		(8.8)
DCC Healthcare	(2.1)		(9.2)
DCC Environmental	(0.5)		3.0
DCC Food & Beverage	5.7	20.9	(1.5)	29.1
Depreciation and other		24.6		21.0
Operating cash flow		102.1		110.7
Capital expenditure (net)		(19.1)		(29.8)
Interest and tax paid		(12.5)		(13.2)
Free cash flow		70.5		67.7

Working capital days reduced to 10.0 from 11.9 at 31 March 2009 (13.6 at 30 September 2008). This decrease was driven by a reduction in debtor days to 36.8 from 41.3 at 31 March 2009.

Acquisition and Capital Expenditure

Acquisition and capital expenditure amounted to €38.7 million, as follows: 

	Acquisitions	Capex	Total
	€'m	€'m	€'m
DCC Energy	16.6	8.9	25.5
DCC SerCom	2.5	2.5	5.0
DCC Healthcare	0.5	5.7	6.2
DCC Environmental	-	1.7	1.7
DCC Food & Beverage	-	0.3	0.3
Total	19.6	19.1	38.7

On 4 August 2009 DCC Energy expanded its oil distribution business into mainland Europe through the completion of the acquisition (conditionally announced in May 2009) of Shell's oil distribution business in Denmark for a consideration of €14.0 million. The business distributes heating oils and transport fuels to domestic and small commercial and industrial customers throughout that country.

On 1 October 2009 DCC Energy acquired the Bayford Oil distribution business, which operates from 14 locations principally in the North of England, for a consideration of €24.7 million. 

Today, DCC Energy has announced that it has reached conditional agreement for the acquisition of Shell Direct Austria ("SDA"). SDA sells approximately 630 million litres of transport fuels and heating oils to approximately 60,000 customers throughout Austria. The business operates from 18 locations and has a fleet of 55 trucks. DCC's investment in SDA on a cash free/debt free basis, net of an adjustment for working capital, will be €18.3 million.

Capital expenditure of €19.1 million (2008: €29.8 million) includes an amount of €3.9 million in respect of capacity expansion at one of DCC Healthcare's Health & Beauty manufacturing facilities and compares to a depreciation charge of €21.5 million.

 

Financial Strength

DCC's financial position remains very strong. At 30 September 2009 the Group had net debt of €87.7 million and total equity of €744.4 million. DCC has significant cash resources and relatively long term debt maturities.

The Group's strong funding and liquidity position at 30 September 2009 can be summarised as follows:

	€'m	€'m
Cash and short term bank deposits	446.4
Overdrafts	(41.8)
Cash and cash equivalents		404.6
Bank debt repayable within 1 year	(68.4)
US Private Placement debt repayable:
Y/e 31/3/2012	(5.1)
Y/e 31/3/2014	(60.9)
Y/e 31/3/2015	(164.4)
Y/e 31/3/2016	(14.0)
Y/e 31/3/2017	(36.8)
Y/e 31/3/2018	(51.3)
Y/e 31/3/2020	(86.9)
Other debt	(4.5)
Debt		(492.3)
Net debt		(87.7)

 

Approximately 85% of the Group's gross debt has been raised in the US private placement market with long term maturities.

Outlook

While the business environment remains uncertain, the Group now expects that operating profit and adjusted earnings per share, on a constant currency basis, in the year to 31 March 2010 will be broadly in line with last year, which is a modest improvement in the Group's expectation from the time of the Interim Management Statement on 17 July 2009. However, the impact of the translation into euro of the significant proportion of DCC's profit which is earned in sterling at an average exchange rate of Stg£0.90 = €1 (compared to an average translation rate last year of Stg£0.8262 = €1) would still result in both reported operating profit and reported adjusted earnings per share being in the range of 5% to 10% behind last year, which is in line with market expectations.

DCC's continuing strong financial position, excellent cash generation and strong market positions in its key developmental areas leave the Group well placed to benefit from an increasing number of potential acquisition opportunities. In particular, the scale of DCC's Energy distribution business and its strong relationships with oil majors are providing a growing number of acquisition opportunities, as evidenced by the acquisition of Shell's downstream oil distribution business in Austria, announced today."

  Operating review

 

DCC Energy			Change on prior year
	2009	2008	Reported	Constant Currency
Revenue	€1,788.2m	€2,095.8m	-14.7%	-6.3%
Operating profit	€25.2m	€22.8m	+11.0%	+22.9%

DCC Energy's operating profit was 22.9% ahead of the prior year on a constant currency basis. This was an excellent result considering the exceptionally strong first half performance in the prior year when operating profit grew by 82.3% on a constant currency basis.  The business benefited from a strong performance in its LPG activities, a first time contribution and integration benefits from recent acquisitions and good operating cost management.

DCC Energy sold 2.5 billion litres of product during the period, an increase of 15.1% on the first half of the prior year.  Volumes were 8.4% behind the prior period on an organic basis as the business was impacted by the much milder weather in April compared to 2008, weaker demand due to the difficult economic environment and a more cautious approach by management towards the extension of credit.

The oil distribution business had a satisfactory performance and in Britain continued to benefit from the integration and optimisation of recent acquisitions. The British business has been further strengthened by the acquisition of Bayford Oil which was completed on 1 October 2009.  DCC is the clear market leader in oil distribution in Britain with a market share of approximately 13%.  

On 4 August 2009 DCC completed the acquisition of Shell's oil distribution business in Denmark.  This was an important though modest first step for DCC in developing its oil distribution business in continental Europe.  The business has performed in line with expectations to date. Today, DCC Energy has announced that it has reached conditional agreement for the acquisition of Shell Direct Austria ("SDA"). SDA sells approximately 630 million litres of transport fuels and heating oils to approximately 60,000 customers throughout Austria. The business operates from 18 locations and has a fleet of 55 trucks. DCC's investment in SDA on a cash free/debt free basis, net of an adjustment for working capital, will be €18.3 million.

The LPG distribution business generated excellent operating profit growth benefiting from a more favourable product pricing environment during the period.

The fuel card business had an excellent first half with good organic volume growth and the contribution from the Cooke Fuel Card business which was acquired in January 2009.

As DCC Energy enters the seasonally more significant second half of the year, it now expects to achieve modest constant currency operating profit growth for the full year. 

 

  

DCC SerCom			Change on prior year
	2009	2008	Reported	Constant Currency
Revenue	€665.1m	€694.3m	-4.2%	+1.4%
Operating profit	€13.7m	€13.5m	+1.5%	+8.5%
Operating margin	2.1%	1.9%

DCC SerCom achieved strong constant currency operating profit growth of 8.5%, driven by the performances of the Retail and Reseller distribution businesses in Britain.

DCC SerCom's Retail distribution business had a strong first half achieving excellent operating profit growth. The business performed well in Britain, increasing its share of the games market, increasing business with e-tail customers, broadening its reach into the supermarket customer base and benefiting from ongoing development of its own brand product range. The French business performed well despite a weak consumer market over the summer months. The Irish business, while operating in a very difficult retail environment, has continued to grow its market share.

DCC SerCom's Reseller distribution business had an excellent first half achieving significant operating profit growth. The business performed very well in Britain during the period with strong market share gains. In addition the business has expanded its customer base by providing solutions to the mobile phone sector.

DCC SerCom's Enterprise distribution business had a difficult first half and experienced a decline in operating profit. While market share was maintained, demand for certain enterprise products declined significantly, impacting profitability.

Operating profit declined in DCC SerCom's Supply Chain Management business, reflecting the anticipated change in a major customer's procurement strategy. This was exacerbated by general market conditions which resulted in reduced demand from key customers.

For the year to 31 March 2010, DCC SerCom continues to anticipate that operating profit will be broadly in line with the prior year on a constant currency basis.

  

DCC Healthcare			Change on prior year
	2009	2008	Reported	Constant Currency
Revenue	€163.8m	€172.7m	-5.2%	+1.9%
Operating profit	€8.7m	€9.8m	-11.7%	-8.0%
Operating margin	5.3%	5.7%

In DCC Healthcare, Hospital Supplies & Services and Health & Beauty Solutions performed well, however overall profits were held back by weak trading in its Mobility & Rehab business.

DCC's Hospital Supplies & Services business achieved good operating profit growth in the first half and benefited from cost reductions implemented last year. In Ireland, the trading environment remains challenging as the Health Service Executive's budgetary constraints have reduced demand, resulting in a more competitive market. In Britain, DCC's value added distribution services business grew its sales strongly through a further roll out of its services within key customers. This business is continuing to invest in its operational infrastructure to strengthen its ability to exploit the developing opportunities in this sector.

DCC Health & Beauty Solutions grew its sales and profits in the first half.  Continued good sales and profit growth was generated in the nutraceuticals sector, leveraging the expanded capacity in its facilities and good progress has been made in technological development in the soft gel capsule area.  Operating profit from the beauty sector benefited from the recovery of prior year increases in input costs and improved operational efficiency.

DCC Mobility & Rehab was impacted by weak market demand in Britain, in particular for higher value products. The weaker trading environment also slowed the recovery of margins which had been significantly impacted last year by the devaluation of sterling. By the end of the first half of the financial year, margins were substantially restored to historic levels. As planned, DCC Healthcare closed its German subsidiary in July.

The trading environment for DCC Healthcare remains challenging given that the majority of its revenues derive from public healthcare spending in Ireland and Britain.  However DCC Healthcare is significantly better placed than at this time last year and continues to anticipate a profit recovery in the second half, which would result in strong constant currency operating profit growth for the year ending 31 March 2010.

  

DCC Environmental			Change on prior year
	2009	2008	Reported	Constant Currency
Revenue	€36.0m	€47.3m	-23.8%	-17.7%
Operating profit	€4.7m	€7.3m	-35.7%	-28.9%
Operating margin	13.0%	15.4%

As anticipated, operating profit declined in DCC Environmental as the business continued to be impacted by the slowdown in activity levels which had affected the division in the second half of last year. Operating profit in the British based businesses was modestly behind last year, but the Irish business was severely impacted by a particularly challenging operating environment.

In Britain, whilst economic conditions remain challenging, the impact on the business of the decline in waste volumes has been partially offset by attracting new business and the investment in more efficient recycling technology, which enabled the diversion of a greater proportion of waste from landfill.

In Ireland, the business experienced both a reduction in demand from customers and considerable margin pressure. This is being addressed through a twin approach of ongoing cost reductions and the development of innovative solutions for hazardous waste management.

While trading is more difficult in Ireland than previously anticipated, trading in Britain has been ahead of initial expectations. Although it is expected that operating profit in the second half will be ahead of the same period last year, DCC Environmental continues to anticipate a decline in constant currency operating profit for the year to 31 March 2010.  

 

DCC Food & Beverage			Change on prior year
	2009	2008	Reported	Constant Currency
Revenue	€155.7m	€168.2m	-7.5%	-5.4%
Operating profit	€4.3m	€7.2m	-41.2%	-40.6%
Operating margin	2.7%	4.3%

As anticipated, operating profit in DCC Food & Beverage declined against a backdrop of difficult economic and trading conditions in Ireland which have had a significant impact on the business.

Consumers are spending less and seeking cheaper product offerings and this has been exacerbated by the weakness in the sterling exchange rate which has led to increased cross border shopping and the sourcing of product by a major retailer directly from Britain. These factors have led to an increasingly competitive trading environment, impacting both volumes and margin.

Cost reduction initiatives are being implemented across all areas but to date these have only partly mitigated the impact of reduced sales and lower margins. 

DCC Food & Beverage anticipates a continuation of the difficult trading environment in the second half and a consequent decline in operating profit for the year to 31 March 2010. 

  

Forward-looking statements

This announcement contains some forward-looking statements that represent DCC's expectations for its business, based on current expectations about future events, which by their nature involve risks and uncertainties. DCC believes that its expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve risk and uncertainty, which are in some cases beyond DCC's control, actual results or performance may differ materially from those expressed or implied by such forward-looking information.

Principal Risks and Uncertainties

The Board is responsible for the Group's risk management systems, which are designed to identify, manage and mitigate potential material risks to the achievement of the Group's strategic and business objectives. Details of the principal strategic, operational, compliance and financial risks facing the Group are set out on pages 46 to 47 of the 2009 Annual Report. These risks continue to be the principal risks and uncertainties facing the Group for the remaining six months of the financial year.

Presentation of results and dial-in facility

There will be a presentation of these results to analysts and investors/fund managers in Dublin at 8:45 am today. The slides for this presentation can be downloaded from DCC's website, www.dcc.ie. A dial-in facility will be available for this meeting:

Ireland: +1890 924780

International: +44 20 8974 7940

Passcode: 167 628

 

 

This announcement and further information on DCC is available at www.dcc.ie

Group Income Statement

		Unaudited 6 months ended				Unaudited 6 months ended				Audited year ended
		30 September 2009				30 September 2008				31 March 2009
		Pre exceptionals	Exceptionals (note 5)	Total		Pre exceptionals	Exceptionals	Total		Pre exceptionals	Exceptionals	Total
	Notes	€'000	€'000	€'000		€'000	€'000	€'000		€'000	€'000	€'000
Revenue	4	2,808,794	-	2,808,794		3,178,330	-	3,178,330		6,400,126	-	6,400,126
Cost of sales		(2,522,068)	-	(2,522,068)		(2,877,456)	-	(2,877,456)		(5,735,419)	-	(5,735,419)
Gross profit		286,726	-	286,726		300,874	-	300,874		664,707	-	664,707
Administration expenses		(114,487)	-	(114,487)		(122,184)	-	(122,184)		(244,227)	-	(244,227)
Selling and distribution expenses		(118,208)	-	(118,208)		(120,089)	-	(120,089)		(252,307)	-	(252,307)
Other operating income		4,832	827	5,659		5,427	4,945	10,372		14,320	6,176	20,496
Other operating expenses		(2,293)	(3,272)	(5,565)		(3,424)	(3,775)	(7,199)		(2,097)	(26,015)	(28,112)
Operating profit before amortisation of intangible assets		56,570	(2,445)	54,125		60,604	1,170	61,774		180,396	(19,839)	160,557
Amortisation of intangible assets		(2,552)	-	(2,552)		(3,245)	-	(3,245)		(5,719)	-	(5,719)
Operating profit	4	54,018	(2,445)	51,573		57,359	1,170	58,529		174,677	(19,839)	154,838
Finance costs		(9,203)	(2,034)	(11,237)		(21,519)	-	(21,519)		(41,262)	-	(41,262)
Finance income		4,019	-	4,019		11,328	-	11,328		20,152	3,919	24,071
Share of associates' (loss)/profit after tax		(32)	-	(32)		127	-	127		168	-	168
Profit before tax		48,802	(4,479)	44,323		47,295	1,170	48,465		153,735	(15,920)	137,815
Income tax expense		(9,253)	-	(9,253)		(4,918)	-	(4,918)		(19,436)	(1,500)	(20,936)
Profit after tax for  the financial period		39,549	(4,479)	35,070		42,377	1,170	43,547		134,299	(17,420)	116,879
Profit attributable to:
Equity holders of the Company				34,633				43,161				116,314
Minority interest				437				386				565
Profit after tax for the financial period				35,070				43,547				116,879
Earnings per ordinary share
Basic	6			42.13c				53.06c				142.36c
Diluted	6			41.91c				52.49c				141.36c
Adjusted earnings per ordinary share
Basic	6			50.07c				54.84c				169.13c
Diluted	6			49.80c				54.25c				167.93c

Group Statement of Comprehensive Income

		Unaudited		Unaudited		Audited
		6 months		6 months		year
		ended		ended		ended
		30 Sept.		30 Sept.		31 March
		2009		2008		2009
		€'000		€'000		€'000
Profit for the period		35,070		43,547		116,879
Other comprehensive income:
Currency translation effects		11,528		(994)		(85,812)
Group defined benefit pension obligations:
- actuarial gain/(loss)		1,360		(4,071)		(9,517)
- movement in deferred tax asset		393		589		911
Gains/(losses) relating to cash flow hedges		1,207		(356)		(1,600)
Movement in deferred tax liability on cash flow hedges		(152)		40		204
Other comprehensive income/(expense) for the period, net of tax		14,336		(4,792)		(95,814)
Total comprehensive income for the period		49,406		38,755		21,065
Attributable to:
Equity holders of the Company		48,969		38,369		20,500
Minority interest		437		386		565
		49,406		38,755		21,065

  Group Balance Sheet

		Unaudited		Unaudited		Audited
		30 Sept.		30 Sept.		31 March
		2009		2008		2009
	Notes	€'000		€'000		€'000
ASSETS
Non-current assets
Property, plant and equipment		319,875		352,820		319,301
Intangible assets		466,161		459,637		443,188
Investments in associates		2,176		2,611		2,208
Deferred income tax assets		7,224		9,567		9,435
Derivative financial instruments		81,778		31,942		128,313
		877,214		856,577		902,445
Current assets
Inventories		219,354		246,999		208,759
Trade and other receivables		646,976		898,480		672,782
Derivative financial instruments		1,036		438		322
Cash and cash equivalents		446,428		408,332		426,789
		1,313,794		1,554,249		1,308,652
Total assets		2,191,008		2,410,826		2,211,097
EQUITY
Capital and reserves attributable to equity holders of the Company
Equity share capital		22,057		22,057		22,057
Share premium account		124,687		124,687		124,687
Other reserves - share options		8,518		7,597		7,807
Cash flow hedge reserve		(119)		(94)		(1,174)
Foreign currency translation reserve		(141,508)		(68,218)		(153,036)
Other reserves		1,400		1,400		1,400
Retained earnings		725,469		669,733		720,909
		740,504		757,162		722,650
Minority interest		3,914		3,442		3,581
Total equity		744,418		760,604		726,231
LIABILITIES
Non-current liabilities
Borrowings		470,914		375,737		525,405
Derivative financial instruments		31,603		28,766		17,372
Deferred income tax liabilities		14,327		11,058		15,827
Retirement benefit obligations	10	28,431		24,811		29,498
Provisions for liabilities and charges		4,813		5,262		5,309
Deferred acquisition consideration		12,830		13,531		15,057
Government grants		2,061		1,849		1,995
Total non-current liabilities		564,979		461,014		610,463
Current liabilities
Trade and other payables		694,683		885,947		696,294
Current income tax liabilities		60,603		54,799		54,948
Borrowings		113,236		217,242		101,657
Derivative financial instruments		1,199		12,216		1,660
Provisions for liabilities and charges		7,147		8,133		13,754
Deferred acquisition consideration		4,743		10,871		6,090
Total current liabilities		881,611		1,189,208		874,403
Total liabilities		1,446,590		1,650,222		1,484,866
Total equity and liabilities		2,191,008		2,410,826		2,211,097
Net debt	9	(87,710)		(193,249)		(90,670)

  Group Statement of Changes in Equity

For the six months ended 30 September 2009		Equity	Share		Other	Equity
		share	premium	Retained	reserves	interest	Minority	Total
		capital	account	earnings	(note 8)	of parent	interest	equity
		€'000	€'000	€'000	€'000	€'000	€'000	€'000
At beginning of period		22,057	124,687	720,909	(145,003)	722,650	3,581	726,231
Profit for the period		-	-	34,633	-	34,633	437	35,070
Currency translation		-	-	-	11,528	11,528	-	11,528
Group defined benefit pension obligations:
- actuarial gain		-	-	1,360	-	1,360	-	1,360
- movement in deferred tax asset		-	-	393	-	393	-	393
Gains relating to cash flow hedges		-	-	-	1,207	1,207	-	1,207
Movement in deferred tax liability on cash flow hedges		-	-	-	(152)	(152)	-	(152)
Total comprehensive income		-	-	36,386	12,583	48,969	437	49,406
Re-issue of treasury shares (net of expenses)		-	-	831	-	831	-	831
Share based payment		-	-	-	711	711	-	711
Dividends		-	-	(32,657)	-	(32,657)	-	(32,657)
Other movements in minority interest		-	-	-	-	-	(104)	(104)
At end of period		22,057	124,687	725,469	(131,709)	740,504	3,914	744,418

For the six months ended 30 September 2008		Equity	Share		Other	Equity
		share	premium	Retained	reserves	interest	Minority	Total
		capital	account	earnings	(note 8)	of parent	interest	equity
		€'000	€'000	€'000	€'000	€'000	€'000	€'000
At beginning of period		22,057	124,687	650,871	(58,951)	738,664	3,771	742,435
Profit for the period		-	-	43,161	-	43,161	386	43,547
Currency translation		-	-	-	(994)	(994)	-	(994)
Group defined benefit pension obligations:
- actuarial loss		-	-	(4,071)	-	(4,071)	-	(4,071)
- movement in deferred tax asset		-	-	589	-	589	-	589
Losses relating to cash flow hedges		-	-	-	(356)	(356)	-	(356)
Movement in deferred tax liability on cash flow hedges		-	-	-	40	40	-	40
Total comprehensive income/(expense)		-	-	39,679	(1,310)	38,369	386	38,755
Re-issue of treasury shares (net of expenses)		-	-	8,556	-	8,556	-	8,556
Share based payment		-	-	-	946	946	-	946
Dividends		-	-	(29,373)	-	(29,373)	-	(29,373)
Other movements in minority interest		-	-	-	-	-	(715)	(715)
At end of period		22,057	124,687	669,733	(59,315)	757,162	3,442	760,604

  Group Cash Flow Statement

		Unaudited		Unaudited		Audited
		6 months		6 months		Year
		ended		ended		Ended
		30 Sept.		30 Sept.		31 March
		2009		2008		2009
		€'000		€'000		€'000
Cash flows from operating activities
Profit for the period		35,070		43,547		116,879
Add back non-operating (income)/expense
- Tax		9,253		4,918		20,936
- Share of loss/(profit) from associates		32		(127)		(168)
- Net operating exceptionals		2,445		(1,170)		19,839
- Net finance costs		7,218		10,191		17,191
Group operating profit before exceptionals		54,018		57,359		174,677
Share-based payments expense		711		946		1,156
Depreciation		21,468		22,529		45,409
Amortisation of intangible assets		2,552		3,245		5,719
Profit on disposal of property, plant and equipment		(88)		(162)		(719)
Amortisation of government grants		(129)		(91)		(830)
Other		2,666		(2,244)		(539)
Decrease in working capital		20,919		29,120		80,001
Cash generated from operations		102,117		110,702		304,874
Exceptionals		(7,820)		(48,614)		(60,940)
Interest paid		(10,087)		(19,788)		(38,274)
Income tax paid		(4,473)		(4,772)		(14,147)
Net cash flows from operating activities		79,737		37,528		191,513
Investing activities
Inflows
Proceeds from disposal of property, plant and equipment		1,676		865		5,484
Government grants received		70		-		1,130
Proceeds on disposal of associate		-		8,481		8,481
Interest received		2,051		11,404		16,417
		3,797		20,750		31,512
Outflows
Purchase of property, plant and equipment		(20,838)		(30,684)		(56,970)
Acquisition of subsidiaries		(19,621)		(63,395)		(89,725)
Deferred acquisition consideration paid		(4,073)		(11,685)		(11,987)
		(44,532)		(105,764)		(158,682)
Net cash flows from investing activities		(40,735)		(85,014)		(127,170)
Financing activities
Inflows
Re-issue of treasury shares		831		8,556		10,267
Increase in interest-bearing loans and borrowings		21,693		-		84,348
Increase in finance lease liabilities		131		-		-
		22,655		8,556		94,615
Outflows
Repayment of interest-bearing loans and borrowings		(1,680)		(6,387)		(92,938)
Repayment of finance lease liabilities		(453)		(521)		(1,129)
Dividends paid to equity holders of the Company		(32,657)		(29,373)		(47,937)
Dividends paid to minority interests		(245)		(735)		(766)
		(35,035)		(37,016)		(142,770)
Net cash flows from financing activities		(12,380)		(28,460)		(48,155)
Change in cash and cash equivalents		26,622		(75,946)		16,188
Translation adjustment		2,513		(718)		(36,717)
Cash and cash equivalents at beginning of period		375,517		396,046		396,046
Cash and cash equivalents at end of period		404,652		319,382		375,517
Cash and cash equivalents consists of:
Cash and short term bank deposits		446,428		408,332		426,789
Overdrafts		(41,776)		(88,950)		(51,272)
		404,652		319,382		375,517

  Notes to the Group Condensed Interim Financial Statements 

for the six months ended 30 September 2009

 

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 2009 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 EU.

The preparation of the interim financial statements requires management to make judgments, 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 2009 and the comparative figures for the six months ended 30 September 2008 are unaudited and have not been reviewed by the Auditors. The summary financial statements for the year ended 31 March 2009 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 Annual Report for the financial year ended 31 March 2009 and are described in those financial statements on pages 64 to 72.

The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 1 April 2009:

IFRS 8 Operating Segments. This standard replaces IAS 14 and uses a 'management approach' under which segment information is presented on the same basis as that used for internal reporting purposes. Adoption of IFRS 8 has not resulted in any changes to the basis of segmentation or to the basis of measurement of operating profit employed in compiling the consolidated financial statements in respect of the year ended 31 March 2009. See note 4 for further segment information.

IAS 1 Presentation of Financial Statements. This standard requires information in the financial statements to be aggregated on the basis of shared characteristics and to introduce a statement of comprehensive income which sets out all items of income and expense (that is, all non-owner changes in equity). Entities have a choice as to whether they present comprehensive income within a single statement or in two statements. The Group has elected to present two statements; an Income Statement and a Statement of Comprehensive Income. These Group Condensed Interim Financial Statements have been prepared under the revised disclosure requirements of IAS 1.

The following interpretations or amended standards are mandatory for the first time for the financial year beginning 1 April 2009 but do not have any significant impact on the Group Condensed Interim Financial Statements:

IFRS 2 (Amendment) Share-based Payments;

IAS 23 (Revised) Borrowing Costs;

IAS 32 (Amendment) Financial Instruments: Presentation;

IAS 39 (Amendment) Financial Instruments: Recognition and Measurement;

IFRIC 13 Customer Loyalty Programmes;

IFRIC 15 Agreements for the Construction of Real Estate;

IFRIC 16 Hedges of a Net Investment in a Foreign Operation.

3. Reporting Currency

The Group's financial statements are prepared in euro denoted by the symbol €. The exchange rates used in translating sterling Balance Sheets and Income Statement amounts were as follows:

	6 months  ended		6 months  ended		Year  ended
	30 Sept.  2009		30 Sept.  2008		31 March  2009
	€1=Stg£		€1=Stg£		€1=Stg£
Balance Sheet (closing rate)	0.910		0.796		0.930
Income Statement (average rate)	0.881		0.793		0.826

4. Segmental Reporting

For management purposes, the Group is primarily organised into five main operating segments: DCC Energy, DCC SerCom, DCC Healthcare, DCC Environmental and DCC Food & Beverage.

DCC Energy markets and sells oil products for commercial/industrial, transport and domestic use in Britain, Ireland and Continental Europe. DCC Energy markets and sells liquefied petroleum gas for similar uses in Britain and Ireland. DCC Energy also includes a fuel card services business. DCC SerCom markets and sells a broad range of IT and consumer electronic products in Britain, Ireland and Continental Europe to computer resellers, high street retailers, computer superstores, on-line retailers and mail order companies. DCC SerCom also includes a supply chain management business. DCC Healthcare markets and sells medical, surgical, laboratory and intravenous pharmaceutical products and provides related value added services to the acute care, community care and scientific sectors in Ireland and Britain. DCC Healthcare is also a leading provider of outsourced services to the health and beauty industry in Europe.  DCC Healthcare also markets and sells rehabilitation and physiotherapy products to the acute care and community care markets in Britain, Ireland, Australia and export markets. DCC Environmental provides a broad range of waste management and recycling services to the industrial, commercial, construction and public sectors in Britain and Ireland. DCC Food & Beverage markets and sells food and beverages in Ireland and wine in Britain. These include healthy foods, snackfoods, fresh coffee and wine to a broad range of catering, convenience store, food service and multiple grocer customers. DCC Food & Beverage is also a leading provider of frozen food distribution in Ireland. 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 below. The consolidated total assets of the Group as at 30 September 2009 of €2.191 billion were not materially different from the equivalent figure at 31 March 2009 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.
By operating segment
	Unaudited six months ended 30 September 2009
	DCC Energy		DCC SerCom		DCC Healthcare		DCC Environmental			DCC Food & Beverage			Unallocated						Total
	€'000		€'000		€'000		€'000			€'000			€'000						€'000
Segment revenue	1,788,243		665,093		163,748		36,002			155,708			-						2,808,794
Operating profit*	25,236		13,729		8,671		4,683			4,251			-						56,570
Amortisation of intangible assets	(1,792)		(146)		(151)		(334)			(129)			-						(2,552)
Net operating exceptionals	(2,364)		(122)		309		-			(268)			-						(2,445)
Operating profit	21,080		13,461		8,829		4,349			3,854			-						51,573
	Unaudited six months ended 30 September 2008
	DCC Energy		DCC SerCom		DCC Healthcare		DCC Environmental		DCC Food & Beverage			Unallocated					Total
	€'000		€'000		€'000		€'000		€'000			€'000					€'000
Segment revenue	2,095,809		694,256		172,743		47,274		168,248			-					3,178,330
Operating profit*	22,736		13,523		9,823		7,288		7,234			-					60,604
Amortisation of intangible assets	(1,231)		(828)		(458)		(376)		(352)			-					(3,245)
Net operating exceptionals	(3,283)		(335)		(157)		-		-			4,945					1,170
Operating profit	18,222		12,360		9,208		6,912		6,882			4,945					58,529
* Operating profit before amortisation of intangible assets and net operating exceptionals

 

Audited year ended 31 March 2009

	DCC Energy		DCC SerCom		DCC Healthcare		DCC Environmental		DCC Food & Beverage		Unallocated			Total
	€'000		€'000		€'000		€'000		€'000		€'000			€'000
Segment revenue	4,130,842		1,551,316		331,223		81,772		304,973		-			6,400,126
Operating profit*	100,694		40,138		17,300		10,224		12,040		-			180,396
Amortisation of intangible assets	(2,830)		(882)		(704)		(807)		(496)		-			(5,719)
Net operating exceptionals	(5,803)		(2,768)		(6,077)		(467)		(3,974)		(750)			(19,839)
Operating profit/(loss)	92,061		36,488		10,519		8,950		7,570		(750)			154,838
* Operating profit before amortisation of intangible assets and net operating exceptionals

(b) By geography

 

Unaudited six months ended 30 September 2009

 

Unaudited six months ended 30 September 2008

							Republic of Ireland		UK		Rest of World		Total
							€’000		€’000		€’000		€’000
Segment revenue							532,492		2,395,188		250,650		3,178,330
Operating profit*							20,225		35,115		5,264		60,604
Amortisation of intangible assets							(1,164)		(1,990)		(91)		(3,245)
Net operating exceptionals							(597)		(3,145)		4,912		1,170
Operating profit							18,464		29,980		10,085		58,529

 

Audited year ended 31 March 2009

							Republic of Ireland		UK		Rest of World		Total
							€’000		€’000		€’000		€’000
Segment revenue							1,004,169		4,819,165		576,792		6,400,126
Operating profit*							44,277		121,580		14,539		180,396
Amortisation of intangible assets							(1,741)		(3,887)		(91)		(5,719)
Net operating exceptionals							(4,867)		(11,145)		(3,827)		(19,839)
Operating profit							37,669		106,548		10,621		154,838

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

 

5. Exceptional Items

	Unaudited		Unaudited		Audited
	6 months		6 months		year
	ended		ended		ended
	30 Sept.		30 Sept.		31 March
	2009		2008		2009
	€’000		€’000		€’000
Restructuring and other costs	(2,445)		(3,775)		(13,045)
Legal fees	-		-		(1,491)
Profit on disposal of associate	-		4,945		6,176
Closure of Days Healthcare Germany	-		-		(9,046)
Impairment of goodwill	-		-		(2,433)
	(2,445)		1,170		(19,839)
Mark to market (losses)/gains (included in interest)	(2,034)		-		3,919
Net exceptional items before taxation	(4,479)		1,170		(15,920)
Exceptional deferred taxation charge	-		-		(1,500)
Net exceptional items after taxation	(4,479)		1,170		(17,420)

 

 

The Group incurred a net exceptional charge before tax of €4.479 million, of which €2.445 million was incurred in relation to restructuring costs as a result of the integration of recently acquired businesses and the implementation of cost reduction programmes across the Group.

Most of the Group's debt has been raised in the US Private Placement debt market and swapped, using long term interest, currency and cross currency derivatives to floating rate sterling and euro. After 'marking to market' swaps designated as fair value hedges and the related fixed rate debt, the Group incurred a mark to market ineffectiveness loss of €2.034 million which partially reverses the mark to market gain included in exceptional items in the year to 31 March 2009 of €3.919 million.

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
	2009		2008		2009
	€'000		€'000		€'000
Profit attributable to equity holders of the Company	34,633		43,161		116,314
Amortisation of intangible assets after tax	2,042		2,618		4,448
Exceptionals after tax	4,479		(1,170)		17,420
Adjusted profit after taxation and minority interests	41,154		44,609		138,182
Basic earnings per ordinary share	cent		cent		cent
Basic earnings per ordinary share	42.13c		53.06c		142.36c
Adjusted basic earnings per ordinary share	50.07c		54.84c		169.13c
Weighted average number of ordinary shares in  issue (thousands)	82,196		81,346		81,704
Diluted earnings per ordinary share	cent		cent		cent
Diluted earnings per ordinary share	41.91c		52.49c		141.36c
Adjusted diluted earnings per ordinary share	49.80c		54.25c		167.93c
Diluted weighted average number of ordinary shares in issue (thousands)	82,645		82,230		82,284

The adjusted figures for earnings per share are intended to demonstrate the results of the Group after eliminating the impact of amortisation of intangible assets and net exceptionals.

 

 

7. Dividends

		Unaudited		Unaudited		Audited
		6 months		6 months		Year
		ended		ended		Ended
		30 Sept.		30 Sept.		31 March
		2009		2008		2009
		€'000		€'000		€'000
Interim - paid 22.61 cent per share on 5 December 2008		-		-		18,564
Final - paid 39.73 cent per share on 23 July 2009 (paid 36.12 cent per share on 24 July 2008)		32,657		29,373		29,373
		32,657		29,373		47,937

On 9 November 2009, the Board approved an interim dividend of 23.74 cent per share (2008/2009 interim dividend: 22.61 cent per share). These condensed consolidated interim financial statements do not reflect this dividend payable.

8. Other Reserves

For the six months ended 30 September 2009			Foreign
		Cash flow	currency		Total
	Share	hedge	translation	Other	other
	options	reserve	reserve	reserves	reserves
	€'000	€'000	€'000	€'000	€'000
At beginning of period	7,807	(1,174)	(153,036)	1,400	(145,003)
Currency translation	-	-	11,528	-	11,528
Gains relating to cash flow hedges	-	1,207	-	-	1,207
Movement in deferred tax liability on cash flow hedges -		(152)	-	-	(152)
Share based payment	711	-	-	-	711
At end of period	8,518	(119)	(141,508)	1,400	(131,709)

For the six months ended 30 September 2008			Foreign
		Cash flow	currency		Total
	Share	hedge	translation	Other	other
	options	reserve	reserve	reserves	reserves
	€'000	€'000	€'000	€'000	€'000
At beginning of period	6,651	222	(67,224)	1,400	(58,951)
Currency translation	-	-	(994)	-	(994)
Losses relating to cash flow hedges	-	(356)	-	-	(356)
Movement in deferred tax liability on cash flow hedges -		40	-	-	40
Share based payment	946	-	-	-	946
At end of period	7,597	(94)	(68,218)	1,400	(59,315)

  

9. Analysis of Net Debt

	Unaudited		Unaudited		Audited
	30 Sept.		30 Sept.		31 March
	2009		2008		2009
	€'000		€'000		€'000
Non-current assets:
Derivative financial instruments	81,778		31,942		128,313
Current assets:
Derivative financial instruments	1,036		438		322
Cash and cash equivalents	446,428		408,332		426,789
	447,464		408,770		427,111
Non-current liabilities:
Borrowings	(1,279)		(2,969)		(1,828)
Derivative financial instruments	(31,603)		(28,766)		(17,372)
Unsecured Notes due 2011 to 2019	(469,635)		(372,768)		(523,577)
	(502,517)		(404,503)		(542,777)
Current liabilities:
Borrowings	(113,236)		(152,733)		(101,657)
Derivative financial instruments	(1,199)		(12,216)		(1,660)
Unsecured Notes due 2008	-		(64,509)		-
	(114,435)		(229,458)		(103,317)
Net debt (including Group share of joint ventures' net cash)	(87,710)		(193,249)		(90,670)
Group share of joint ventures' net cash	3,568		7,293		1,977

10. Retirement Benefit Obligations

The Group's defined benefit pension schemes' assets were measured at fair value at 30 September 2009. The defined benefit pension schemes' liabilities at 30 September 2009 have been updated to reflect material movements in the discount rate from the 31 March 2009 position.

The deficit on the Group's retirement benefit obligations decreased from €29.498 million at 31 March 2009 to €28.431 million at 30 September 2009. The decrease in the deficit was primarily driven by asset returns being significantly greater than those expected. This was partially offset by an actuarial loss on liabilities which was driven by the reduction in the discount rate used to value liabilities.

11. Changes in Estimates and Assumptions

The following actuarial assumptions have been made in determining the Group's retirement benefit obligation for the six months ended 30 September 2009: 

	Unaudited		Unaudited		Audited
	6 months		6 months		year
	ended		ended		ended
	30 Sept.		30 Sept.		31 March
	2009		2008		2009
Discount rate
- Republic of Ireland	5.75%		6.00%		5.95%
- UK	5.50%		6.05%		6.90%

 

12. Business Combinations

The principal acquisition completed by the Group during the six months ended 30 September 2009 was the acquisition of the trade, assets and goodwill of Shell Denmark's oil distributor business announced on 4 August 2009. 

Identifiable net assets acquired (excluding net cash acquired) were as follows:

	Unaudited
	30 Sept.
	2009
	€'000
Assets
Non-current assets
Property, plant and equipment	224
Intangible assets - goodwill	12,994
Intangible assets - other intangible assets	7,578
Total non-current assets	20,796
Current assets
Inventories	266
Trade and other receivables	656
Total current assets	922
Equity
Minority interest	(118)
Total equity	(118)
Liabilities
Non-current liabilities
Deferred income tax liabilities	(1,895)
Total non-current liabilities	(1,895)
Current liabilities
Trade and other payables	(84)
Total current liabilities	(84)
Total consideration (enterprise value)	19,621
Satisfied by:
Cash	20,126
Net cash acquired	(505)
Total consideration	19,621

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 material adjustments made to the carrying amounts of the assets and liabilities acquired, determined in accordance with IFRS, before completion of the combinations during the financial period.

The initial assignments of fair values to identifiable net assets acquired have been performed on a provisional basis given the timing of closure of these acquisitions, with any amendments to these fair values to be finalised within a twelve month timeframe from the dates of acquisition. There were no adjustments processed during the six months ended 30 September 2009 to the fair value of business combinations completed during the preceding twelve months.

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.

The acquisitions during the year contributed €19.755 million to revenues and €0.643 million to operating profit before amortisation of intangible assets and net operating exceptionals. Had all the business combinations effected during the period occurred at the beginning of the period, total Group revenue for the six months ended 30 September 2009 would be €2,843.048 million and total Group operating profit before amortisation of intangible assets and net operating exceptionals would be €57.795 million.

  

 

13. Seasonality of Operations The Group's operations are significantly second-half weighted primarily due to the demand for a significant proportion of DCC Energy's products being weather dependent and seasonal buying patterns in SerCom Distribution.

14. Related Party Transactions

There have been no related party transactions or changes in related party transactions other than those described in the Annual Report in respect of the year ended 31 March 2009 that could have a material impact on the financial position or performance of the Group in the six months ended 30 September 2009.

15. Events after the Balance Sheet Date

On 1 October 2009, the Group announced the acquisition of Bayford Oil Limited, a long established oil distribution business operating from 14 locations, principally in the North of England. The cash consideration for the business (net of average cash acquired) was €24.7 million (Stg£22.5 million) inclusive of assets acquired of €2.1 million (Stg£1.9 million). 

On 10 November 2009, the Group announced the acquisition of Shell Direct Austria GmbH ('SDA'), a leading fuel distribution business in Austria. DCC's investment in SDA on a cash free/debt free basis, net of an adjustment for working capital at the date of completion, will be €18.3 million. SDA's net tangible operating assets at completion are expected to be approximately €2.1 million. The transaction is subject to completion clearance from the European Commission and is expected to complete in January 2010.

16. Distribution of Interim Report

This report and further information on DCC is available at the Company's website www.dcc.ie. This report is being distributed to shareholders and will be available to the public at the Company's registered office at DCC House, Stillorgan, Blackrock, Co. Dublin, Ireland.

   Statement of Directors' Responsibilities

We confirm that to the best of our knowledge:

1. the condensed set of interim financial statements have been prepared in accordance with IAS  34 Interim Financial Reporting as adopted by the EU;

2. 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

Michael Buckley Tommy Breen

Chairman Chief Executive 

 

 

10 November 2009

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