Annual Report • Mar 31, 2015
Annual Report
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DCC plc Annual Report and Accounts
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DCC is an international sales, marketing, GLVWULEXWLRQDQGEXVLQHVVVXSSRUWVHUYLFHV JURXS7KH*URXSLVRUJDQLVHGDQGPDQDJHG DFURVVIRXUGLYLVLRQVDQGHPSOR\VRYHU people in 14 countries.
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Volumes EQOLWUHV S5.7%
Principal operating locations
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Principal operating locations Britain and Ireland.
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The Group is headquartered in Dublin, Ireland and employs over 10,200 people in 14 countries.
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DCC operates across four separate divisions, DCC Energy, DCC Technology, DCC Healthcare and DCC Environmental.
DCC's objective is to build a growing, sustainable and cash generative business which consistently provides returns on capital employed significantly ahead of its cost of capital.
([DPSOHVRIRXUVWUDWHJ\EHLQJSXWLQWRHHFWDUHVHWRXWLQWKH6WUDWHJ\LQ\$FWLRQ section on pages 18 to 25.
Expanding in the retail service station market
Targeting Oil to LPG conversions
Technology Expanding
Healthcare Improving manufacturing HɝFLHQF\
Inside Annual Report 2015
| i | Highlights of the Year |
|---|---|
| ii | DCC at a Glance |
| 2 | Chairman's Message |
| 4 | Chief Executive's Review |
| 6 | Strategy |
| 8 | Business Model |
| 10 | Risk Report |
| 16 | Key Performance Indicators |
| 18 | Strategy in Action |
| 26 | Operating Reviews |
| 26 | – Energy |
| 34 | – Technology |
| 40 | – Healthcare |
| 48 | – Environmental |
| 54 | Financial Review |
| 62 | Sustainability Report |
| 67 | Senior Management |
| 69 | Chairman's Introduction |
|---|---|
| 70 | Board of Directors |
| 72 | Corporate Governance Statement |
| 77 | Audit Committee Report |
| 82 | Remuneration Report |
| 101 | Nomination and Governance Committee Report |
105 Report of the Directors
| 109 | Statement of Directors' Responsibilities |
|---|---|
| 110 | Report of the Independent Auditors |
| 115 | Financial Statements |
| 189 | Group Directory |
|---|---|
| 193 | Shareholder Information |
| 195 | Corporate Information |
| 196 | Non-GAAP Information |
| 197 | Five Year Review |
| 198 | Index |
Financial Statements
We have now had 21 years of uninterrupted dividend growth since DCC first became a publicly listed company.
ΖQP\ȴUVW\HDUUHSRUWLQJWR\RXDV &KDLUPDQLWLVSOHDVLQJWRUHȵHFWWKDW 2015 marks 21 years since DCC became a publicly listed company and to note that the year to 31 March 2015 continued the track record of growth and development for the business.
Operating results were strong, with SURȴWVXSLQHDFKGLYLVLRQDQGRYHUDOO by 10.5% on a continuing basis. Adjusted earnings per share were up by 9.8% on a continuing basis.
Return on capital employed was 18.9%, DVLJQLȴFDQWLQFUHDVHRQWKHSULRU\HDU &RQYHUVLRQRIRSHUDWLQJSURȴWVWRIUHH FDVKȵRZZDVDQGQHWFDVKDW\HDU end was £30.0 million, with total equity of £987.0 million.
Taking account of committed acquisition expenditure of £554 million, as outlined further below, and the need to be able to take advantage of development opportunities as they arise, the Board has today agreed a share placing of up WRPLOOLRQQHZ2UGLQDU\6KDUHVEHLQJ 5% of share capital, in order to maintain a strong and liquid balance sheet.
7KH%RDUGLVUHFRPPHQGLQJDȴQDO dividend of 55.81 pence per share. This brings the total dividend per share for the year ended 31 March 2015 to 84.54 pence per share, up 10% on the previous year. We have now had 21 years of uninterrupted dividend JURZWKVLQFH'&&ȴUVWEHFDPHDSXEOLFO\ listed company.
Dividend (pence) – years ended 31 March
DCC's core development strategy is to build an international sales, marketing, distribution and support services business of scale that is sustainable and cash generative and which provides our shareholders with returns on capital employed substantially ahead of our cost of capital.
In pursuit of this strategy, there was a record level of committed development expenditure during the year and since the year end of £554 million.
The agreement in principle reached today WRDFTXLUH%XWDJD]6\$6IRUȜPLOOLRQ would be the largest ever acquisition by DCC and a major step forward in the expansion of our LPG business.
The acquisition of Esso Retail France, a French network of unmanned retail petrol stations and the Esso Motorway FRQFHVVLRQVLQ)UDQFHZDVDVLJQLȴFDQW step in furthering our strategy to enter the unmanned petrol station market and more broadly to continue to expand VLJQLȴFDQWO\RXUWUDQVSRUWIXHOVEXVLQHVV both in the UK and more widely.
In Technology, the acquisitions of &DS7HFKLQ6ZHGHQDQG&RPSXWHUV Unlimited, operating primarily in the UK but with operations in France and 6SDLQIXUWKHUH[SDQGLWVJHRJUDSKLF and product footprint.
In Healthcare, the acquisition of Williams Medical Holdings means that DCC Vital now has the most comprehensive sales and distribution network in the British and Irish healthcare markets. Leveraging this expanded market coverage is expected to provide near term synergy opportunities, as well as strengthening the platform for further growth.
We continue to pursue development and consolidation opportunities in each of our core businesses.
There were a number of changes to the Board during the year.
I would like to take the opportunity to pay tribute to my predecessor Michael Buckley, who was Chairman for the past \HDUVDQGDQRQH[HFXWLYH'LUHFWRU IRU\HDUVIRUKLVYHU\VLJQLȴFDQW contribution to DCC and to wish him all the best in the future.
.HYLQ0HOLDZKRKDGEHHQDQRQ executive Director since 2008, passed away suddenly in June last year. I would like to acknowledge the corporate and entrepreneurial expertise as well as the insight and enthusiasm which he brought to DCC.
I would like to welcome David Jukes who joined the Board in March this year and brings considerable international, commercial experience in the business to business trading and chemicals distribution sectors to the Board.
We have continued our active approach to investor communications, which involves direct contact with shareholders DQGZLWKVLJQLȴFDQWORQJWHUPGHEW providers. Further details on this programme is set out in the Governance Report on page 76.
On behalf of the Board, I would like to thank all 10,220 employees of DCC, led by Tommy Breen and his executive team, for their continuing commitment and contribution.
We are well placed for continued growth and achievement of our strategic objectives.
I would like to thank you, our shareholders, for your continued support.
Chairman 18 May 2015
DCC's primary strategic objective is simple and has been consistent for a very long time – "to continue building a growing, sustainable and cash generative business which consistently provides returns on total capital employed VLJQLȴFDQWO\DKHDGRIRXUFRVWRIFDSLWDOȋ We have also measured pretty much everything we do against this objective and believe that if we stay loyal to our values and continue to deliver in line with our primary strategic objective, we will DOVRFRQWLQXHWRFUHDWHVLJQLȴFDQWYDOXH for shareholders over the long term.
I am pleased to say that performance against strategy was very strong in the year to 31 March 2015.
'&&(QHUJ\JUHZLWVSURȴWVE\ (10.3% in a constant currency basis) and EHQHȴWHGIURPWKHFRQWLQXLQJIRFXVRQ RSHUDWLRQDOHɝFLHQFLHVDQGZHOOH[HFXWHG DFTXLVLWLRQVZKLFKZHUHSDUWO\RVHWE\ the impact of the mild winter weather conditions relative to the 10 year average. Excellent progress was achieved in DCC Energy's strategy to expand both its retail and LPG businesses having announced during the year that it had reached agreement to acquire the Esso Retail business in France and today has reached agreement in principle to acquire the %XWDJD]EXVLQHVVLQ)UDQFHIURP6KHOO Together these two acquisitions will VLJQLȴFDQWO\LQFUHDVHWKHVFDOHDQG breadth of our Energy business.
Growth in DCC Technology was more modest at 2.6% (3.7% on a constant currency basis) with growth across the continental European and supply chain services businesses and also into the UK and Ireland reseller customer base being ODUJHO\RVHWE\WKHLPSDFWRIDZHDNHU market for tablets and mobile phones in the UK. Return on capital employed was very strong at 25.5% and good progress was made in the further development of the business through the acquisitions of CapTech and Computers Unlimited, which was completed since year end. In line with strategy, CapTech broadens the geographic reach of the business while Computers Unlimited expands the product range in the UK.
ΖQ'&&+HDOWKFDUHSURȴWJURZWKZDV particularly strong at 30.6% (40.4% excluding Virtus Inc.) and the business has enhanced its market position and VFDOHWKURXJKIXUWKHUEROWRQDFTXLVLWLRQ activity. The acquisition of Williams 0HGLFDO6XSSOLHVKDVJLYHQ'&&9LWDO market leadership in the supply of medical devices, pharmaceuticals and related services to GP surgeries in Britain. Beacon Pharmaceuticals, acquired in the second half, has given further strength to our generic pharma business, particularly in the area of hospital injectable pharmaceuticals. DCC Health & Beauty 6ROXWLRQVJHQHUDWHGH[FHOOHQWRUJDQLF JURZWKDQGDOVREHQHȴWHGIURPWKH integration and full year contribution of UPL, acquired in January 2014.
'&&(QYLURQPHQWDOJUHZLWVSURȴWVE\ 13.2% and drove some improvement in its return on capital employed, despite the impact in the year of sustained weakness in commodity prices. Volumes in the British business grew by 18% and the SURSRUWLRQRIZDVWHGLYHUWHGIURPODQGȴOO increased. In Ireland, the business grew LWVSURȴWVH[SDQGHGLWVUDQJHRIVHUYLFHV DQGGURYHIXUWKHURSHUDWLRQDOHɝFLHQFLHV
DCC's greatest strength is the quality and commitment of the people who work throughout the Group. I would like to thank all of them publicly for all of their HRUWVRQWKH*URXSȇVEHKDOI:HUHPDLQ committed to providing opportunity for development and progression where possible and, to that end, have commenced a process to enhance our talent development programme.
DCC remains ambitious to continue the growth and development of its business. 7KHFRQWLQXHGSURȴWJURZWKDQGFDVK generation last year along with the recent acquisition activity augur well for the future.
The outlook for the year to 31 March 2016 is based on the important assumptions that:
At this very early stage, the Group DQWLFLSDWHVWKDWERWKRSHUDWLQJSURȴWDQG adjusted earnings per share will be very VLJQLȴFDQWO\DKHDGRIWKHSULRU\HDU
The Group strategy has always included maintaining a strong and liquid balance sheet to leave it well placed to take advantage of opportunities as they arise. To that end, the Board has today agreed DSODFLQJRIQHZ2UGLQDU\6KDUHV representing up to 5% of the existing issued share capital of the Group H[FOXGLQJ7UHDVXU\6KDUHV 7KHIXQGV raised from this placing will ensure the *URXSUHWDLQVȴQDQFLDOFDSDFLW\IRU further development while preserving balance sheet strength.
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Chief Executive 18 May 2015
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 209.2 191.2 171.2 142.0 173.1 157.9 139.7 115.9 97.5 84.5 78.4 Adjusted earnings per share (pence) – years ended 31 March
Our objective is to build a growing, sustainable and cash generative business which consistently provides returns on capital employed significantly ahead of its cost of capital.
We will achieve this by focusing on five strategic priorities as illustrated.
Market leading positions
Operational efficiency
Extend our geographic footprint
Financial discipline
Development of entrepreneurial teams
DCC aims to be the number 1 or 2 operator in each of its chosen markets. This is achieved through a consistent focus on increasing market shares organically and via value enhancing acquisitions. We have a long and successful track record of acquisitions which have strengthened our market positions and generated attractive returns on capital invested.
'&&VWULYHVWREHWKHPRVWHɝFLHQW business in each of the sectors in which it operates. We continuously benchmark RXUEXVLQHVVHVDJDLQVWWKRVHVSHFLȴF KPIs which we judge are important indicators in our drive for superior returns on capital in the short, medium and longer term.
The Group maintained or increased market share in the primary markets in which it operates. This was achieved through good organic growth, contributions from acquisitions in the current year, the most VLJQLȴFDQWRIZKLFKZHUH4VWDU'&&(QHUJ\ CapTech (DCC Technology) and Williams Medical and Beacon (DCC Healthcare), and the successful integration of acquisitions completed in prior years. Read more: Strategy in action on p20
During the year the Group successfully completed the integration of acquisitions made in prior years, WKHPRVWVLJQLȴFDQWRIZKLFKZDVWKHLQWHJUDWLRQ of the Vitamex business in DCC Healthcare. Read more: Strategy in action on p25
The Group will continue to pursue growth organically and through value enhancing acquisitions. The acquisitions of Butagaz DQG(VVR6\$)ERWKLQ'&&(QHUJ\DUH expected to complete in June 2015 and LQWKHȴQDOFDOHQGDUTXDUWHURI respectively and are market leading businesses with returns on capital employed well above the Group's cost of capital.
DCC Technology is planning to further integrate its operations and service RHULQJLQFOXGLQJDQXSJUDGHRILWV logistics and IT infrastructure. Read more: Case study on p37
In recent years we have been expanding certain of the Group's businesses into Continental European markets which we believe provide good opportunity for future growth. We will look to further develop our businesses in these markets and to enter new geographic markets on a selective basis in the coming years.
Following a year of modest acquisition expenditure in FY14, the current year saw an increase in activity. '&&(QHUJ\FRPSOHWHGLWVȴUVWVLJQLȴFDQWLQYHVWPHQW into the transport fuels market in Europe through WKHDFTXLVLWLRQRI4VWDUWKHȴIWKODUJHVWSHWURO UHWDLOHULQ6ZHGHQZKLOVW'&&7HFKQRORJ\FRPSOHWHG WKHDFTXLVLWLRQRI&DS7HFK6ZHGHQȇVODUJHVW independent technology distribution business. Read more: Strategy in action on pages 19 and 23
In pursuing our strategic objectives, we will only do so in the context of maintaining relatively low levels of ȴQDQFLDOULVNLQWKH*URXS:HEHOLHYH that this not only provides the greatest likelihood of generating value for shareholders in the long term but also leaves the Group best placed to react quickly to commercial opportunities as they arise.
7KH*URXSȇVȴQDQFLDOSRVLWLRQUHPDLQVYHU\VWURQJ well funded and highly liquid. The Group moved to a modest net cash position of £30 million at 31 March 2015.
The Group will be completing its second major acquisition in the European unmanned petrol station market through WKHDFTXLVLWLRQRI(VVR6\$)LQ)UDQFHΖQ addition, DCC Energy will enter the LPG market in France through the acquisition of Butagaz, a market leader in France. The Group remains disciplined in its approach to acquisition spend and the development strategy remains unchanged.
Undertaking acquisitions to complement organic growth is core to DCC's development strategy. Taking account of the committed development expenditure of £465 million, which it is anticipated will be paid in 2016, DCC's balance sheet strength will be further enhanced by the issue of up to 5% of the existing share capital of the Group by way of a share placing. The funds raised from this placing will provide WKH*URXSZLWKVLJQLȴFDQWFDSDFLW\IRU further development.
Our people are the essential ingredient in our continued success and we are focused on the attraction, motivation and empowerment of the best leadership teams across the Group. Given the diverse market sectors in which we operate, we believe that providing appropriate short and long term incentives to these leaders, based on the performance of the businesses which they manage, is the best way to drive sustained performance and good returns for shareholders. Our devolved management structure demands leaders of the highest calibre, skill and experience.
The Group was successful in retaining the key management teams in businesses acquired during the year. These teams strengthen our talent pool and bring additional industry experience and capability to the Group.
In addition, the Group continues to invest in its talent programme and processes which will be important to support the continued development and retention of high performing employees at Group, divisional and subsidiary levels.
We are engaged with external advisors in developing a more structured Group talent programme which will provide us with a framework to select, assess and develop talent across DCC. We are keeping our short and long term incentive programmes under review to ensure their continued HHFWLYHQHVVLQGULYLQJKLJK performance across the Group.
Our business model is highly cash generative and offers significant growth potential with high levels of profitability and shareholder returns on capital employed significantly ahead of our cost of capital.
What's important to us
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– Continuous focus on safety culture
Integrity – Ethics, honesty and responsibility
Partnerships – Creating sustainable partnerships
Excellence – In everything we do
The common attributes of the businesses we own and operate
Market leadership positions
2SHUDWLRQDOHɝFLHQF\
6WURQJHPSRZHUHG management teams
Financial discipline
Cash generative
How we win
Focus on cash generation and ROCE
Consistent strategic direction
Ability to identify, execute and integrate acquisitions
Talent development and retention
Disciplined capital allocation
Best practice in governance and compliance
Robust risk management
6WURQJVXSSOLHUDQG customer relationships
Devolved management structure
How value is shared with stakeholders
Reinvestment and acquisitions
6DODULHVDQGHPSOR\PHQW
Enhanced customer service and supplier relationships
Taxes
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The Board of DCC is responsible for setting the Group's risk appetite and ensuring that appropriate risk management and internal control systems, designed to identify, manage and mitigate potential material risks to the achievement of the Group's strategic and business objectives, are in place.
The Board has approved a Risk Appetite 6WDWHPHQWVSHFLI\LQJWKHOHYHOVRIULVNWKDW the Group is prepared to accept in key DUHDVRIDFWLYLW\7KLV6WDWHPHQWLQIRUPV the internal controls that are maintained in those areas.
The Board has also approved a Risk Management Policy which sets out delegated responsibilities and procedures for the management of risk across the Group.
7KH5LVN\$SSHWLWH6WDWHPHQWDQGWKH5LVN Management Policy are reviewed at least annually to ensure that they remain current.
7KH%RDUGUHFRJQLVHVWKDWWKHHHFWLYH management of risk requires the involvement of people at every level of the organisation and seeks to encourage this through a culture of open communication in addition to the operation of formal risk management processes.
The risk management framework in place in the Group and the roles and responsibilities of the key elements of the framework are set out below.
The risk management framework has been designed using a 'three lines of GHIHQFHȇPRGHO7KHȴUVWOLQHFRPSULVHV subsidiary and divisional management, ZKRKDYHGD\WRGD\UHVSRQVLELOLW\IRU designing, implementing and maintaining HHFWLYHLQWHUQDOFRQWUROVZLWKLQWKH individual subsidiaries and divisions. The second line comprises Group oversight functions who provide expertise in UHJDUGWRWKHPDQDJHPHQWRIVSHFLȴF risks, in particular health, safety and HQYLURQPHQWDOȆ+6(ȇ DQGFRPSOLDQFH The third line of defence principally comprises Group Internal Audit and also includes the external auditors and specialist third party auditors/regulators.
The detailed roles and responsibilities assigned under the risk management framework are summarised below:
The Board is responsible for determining the *URXSȇV5LVN\$SSHWLWH6WDWHPHQWDQGIRUWKH Risk Management Policy. The Board is also required to report on the annual review of WKHHHFWLYHQHVVRIWKH*URXSȇVULVN management and internal control systems.
The Board reviews a summary risk report at each meeting, which focuses on the Group Risk Register (as detailed on page 11), on VLJQLȴFDQWULVNHYHQWVDQGRQGHYHORSPHQWV in risk management practice.
In addition, recognising that Health, 6DIHW\DQG(QYLURQPHQWDOLVDYHU\
VLJQLȴFDQWULVNDUHDIRUWKH*URXS particularly in the Energy and Environmental divisions, the Board takes particular responsibility for this area through direct quarterly reporting to it by WKH+HDGRI*URXS6XVWDLQDELOLW\ZKRLV UHVSRQVLEOHIRUWKH*URXS+6(IXQFWLRQ
The Audit Committee is responsible for assisting the Board by taking delegated UHVSRQVLELOLW\IRUULVNLGHQWLȴFDWLRQDQG assessment and for reviewing the Group's risk management and internal control systems and making recommendations to the Board thereon.
ΖWIXOȴOVLWVUHVSRQVLELOLWLHVE\UHYLHZLQJ regular reports from Group Internal Audit and from second line providers, in particular the Executive Risk Committee and Group Compliance.
The Chairman of the Audit Committee reports to the Board at each Board meeting on its activities, both in regard to audit matters and risk management.
The Audit Committee also reports to the Board on the detailed work done by management in respect of the annual assessment of the operation of the Group's system of risk management and internal control.
The activities of the Audit Committee are set out in detail in its report on pages 77 to 81.
The Executive Risk Committee is chaired by the Chief Executive and comprises senior divisional and Group management. Its responsibilities are to analyse on a continuous basis the principal risks facing the Group, the controls in place to manage those risks and the related monitoring procedures and to consider any changes in business strategy which impact on the Group's risk environment and material risks and controls.
The Executive Risk Committee maintains the Group Risk Register and the Integrated Assurance Report (as detailed below) and reports on changes to these to the Audit Committee.
The Executive Risk Committee also evaluates all reports prepared by Group ΖQWHUQDO\$XGLW*URXS+6(DQG*URXS Compliance and ensures prompt action is taken to address control weaknesses highlighted by these reports, prior to these reports being considered by the Audit Committee or the Board as appropriate.
7KHVHIXQFWLRQVLQFOXGH*URXS+6(*URXS Compliance and Group Finance, which
FRPSULVHVȴQDQFHWD[DWLRQDQGWUHDVXU\ 7KH*URXS+6(IXQFWLRQKDVLQSODFHD ULVNEDVHG+6(DXGLWSURJUDPPHZKLFK provides independent assurance on the NH+6(PDQDJHPHQWSURFHVVHVDQG controls that are in place in the Group's EXVLQHVVHV7KH*URXS+6(IXQFWLRQDOVR facilitates the exchange of best practice DQGVXSSRUWVGLYLVLRQDO+6(FRPPLWWHHV LQVHWWLQJREMHFWLYHVUHYLHZLQJ+6(ULVN registers and developing appropriate +6(VWDQGDUGV\$VPHQWLRQHGHDUOLHU the Board receives direct reports on the PDQDJHPHQWRI+6(ULVNV
The Group Compliance function is responsible for ensuring that each Group VXEVLGLDU\KDVLGHQWLȴHGLWVPDWHULDO compliance risks, in particular legal and UHJXODWRU\ULVNVDQGPDLQWDLQVHHFWLYH controls in respect of these risks. Controls in this context will include policies, procedures and training. These controls are supported by a clear 'tone from the top' from both the business and the Group.
Each Group subsidiary has a compliance FRRUGLQDWRULQSODFHZKRKDVSDUWLFXODU responsibility for this area within their own business.
The Group Compliance function carries out regular compliance audits in Group subsidiaries to ensure that controls are EHLQJIROORZHGDQGDUHRSHUDWLQJHHFWLYHO\
Group Internal Audit, which incorporates a dedicated IT audit and data analytics function, is responsible for reviewing the risk management and internal control processes and identifying areas for improvement and providing independent and objective assurance on risk matters to senior management and the Audit Committee. Group Internal Audit GHYHORSVDQDQQXDOULVNEDVHGLQWHUQDO audit programme, which is approved by the Audit Committee.
The Group's risk register process is based on a consistent, Group wide approach to WKHLGHQWLȴFDWLRQDQGDVVHVVPHQWRIULVNV and the manner in which they are managed and monitored.
\$ULVNUHJLVWHUWHPSODWHSUHSRSXODWHG with the most relevant risks covering VWUDWHJLFRSHUDWLRQDOȴQDQFLDODQG compliance areas, has been developed. These risk registers are completed at all levels of the Group, with the impact and probability of occurrence for each risk determined and scored at both a gross (before mitigation) and net (after mitigation) basis. A risk scoring matrix is used to ensure a consistent approach is taken when completing the probability and impact assessments. New or emerging risks are added to the risk register as they DUHLGHQWLȴHGDQGWKHWHPSODWHLVIRUPDOO\ reviewed and updated at least annually.
Each subsidiary is required to maintain a risk register, which is reviewed and updated for submission to divisional management twice a year, following formal review and approval by the subsidiary board. Control LPSURYHPHQWVLGHQWLȴHGE\PDQDJHPHQW as part of the risk register process are formally monitored through an online Group audit management system.
6XEVLGLDU\ULVNUHJLVWHUVDUHUHYLHZHGWR update the divisional risk registers, which are approved by the divisional boards and submitted to the Executive Risk Committee twice a year.
The Group Risk Register is maintained by the Executive Risk Committee and is XSGDWHGWRUHȵHFWDQ\VLJQLȴFDQWFKDQJHV noted in the reviews of divisional risk registers. The 'bottom up' risk register process is complemented by the presentation by subsidiary and divisional management of their view of their top ULVNVFODVVLȴHGXQGHUFXUUHQWHPHUJLQJ and fraud related. This provides 'top GRZQȇFRQȴUPDWLRQRIWKHFRPSOHWHG risk registers.
The Group Risk Register is then reviewed and formally approved by the Audit Committee and the Board.
An Integrated Assurance Report ('IAR') is maintained to identify the assurance activities planned for the forthcoming year, across the three lines of defence, which are intended to address the key DQGHPHUJLQJULVNVLGHQWLȴHGE\WKHULVN register process. The IAR is updated and discussed by the Executive Risk Committee before being formally presented to the Audit Committee and Board.
Formal risk reporting timetables and structures are in place across the Group and in particular from the Executive Risk Committee and the second line of defence functions to the Audit Committee and Board, by way of the Governance, Risk and &RPSOLDQFHUHSRUWDQGWKHTXDUWHUO+6( report respectively, and from Group Internal Audit to the Audit Committee.
This facilitates full, comprehensive reporting by the Audit Committee to the Board.
The principal risks and uncertainties which have the potential, in the short to medium term, to have a significant impact upon the Group's strategic objectives are set out below, together with the principal mitigation measures and an indication of the particular strategic priorities to which the risks relate.
These represent the Board's view of the principal risks at this point in time. However, this is not an exhaustive statement of all relevant risks and uncertainties. Matters which are not currently known to the Board or events which the Board considers to be of low likelihood could emerge and give rise to material consequences.
The mitigation measures that are maintained in relation to these risks are designed to provide a reasonable and not an absolute level of protection against the impact of the events in question.
| Risk | Impact | Principal Mitigation Measures | Movement | |
|---|---|---|---|---|
| Health, safety and environmental |
The principal health & safety and environmental risks faced by the Group relate to: – ȴUHH[SORVLRQRUPXOWLSOHYHKLFOHDFFLGHQW resulting in one or more fatalities; – DQLQFLGHQWUHVXOWLQJLQVLJQLȴFDQW environmental damage or compliance breach; – D+6(RUVHFXULW\HYHQWUHTXLULQJWKH activation of our crisis management plan and/or business continuity plans; and – poor product quality control requiring activation of our product recall procedures. 6XFKULVNVPD\JLYHULVHWROHJDOOLDELOLW\ VLJQLȴFDQWFRVWVDQGGDPDJHWRWKH |
All Group subsidiaries operate health, safety DQGHQYLURQPHQWDO+6( PDQDJHPHQW systems appropriate to the nature and scale of their risks. Within the Energy division in particular there is a strong focus on process safety and ongoing communication with the relevant safety authorities. All manufacturing and product processing facilities operate quality management systems, which are subject to regulatory UHYLHZDQGOLFHQFLQJUHTXLUHPHQWV4XDOLW\ assurance processes are in place to ensure ȴQLVKHGSURGXFWVDUHSURGXFHGLQ accordance with regulatory requirements DQGDSSOLFDEOHVSHFLȴFDWLRQV([WHUQDO independent resources are engaged where additional assurance is required. |
||
| Group's reputation. | Emergency response and business continuity plans are also in place to minimise WKHLPSDFWRIDQ\VLJQLȴFDQWLQFLGHQWVWKDW take place. |
|||
| Inspection and auditing processes are LQSODFHLQUHODWLRQWR+6(PDQDJHPHQW systems. These checks are conducted by the subsidiaries in question, by the Group |
providers, as appropriate. Insurance cover is maintained at Group level IRUDOOVLJQLȴFDQWLQVXUDEOHULVNV
+6(IXQFWLRQDQGE\H[WHUQDODVVXUDQFH
Key: Movement in Risk
Development of entrepreneurial
| Risk | Impact | Principal Mitigation Measures | Movement |
|---|---|---|---|
| Legislation and regulation |
DCC's operations across four divisions in fourteen countries must comply with a broad range of legal and regulatory requirements which are subject to changes as well as increasing levels of enforcement. Failure to comply clearly with applicable legal or regulatory obligations could result in enforcement action, legal liabilities, costs and damage to the Group's reputation. |
All Group subsidiaries have recorded their key legal and regulatory obligations and the controls they have in place to ensure those obligations are met. Primary responsibility for compliance rests with subsidiary management, who are supported by the Group Compliance function, which provides detailed support on legal and regulatory issues and conducts compliance audits across the Group. |
|
| Acquisitions/ Change management |
A failure to identify, execute or properly integrate acquisitions, change management programmes or other growth opportunities FRXOGLPSDFWRQSURȴWWDUJHWVDQGLPSHGH the strategic development of the Group. |
Group and divisional management teams engage in a continuous and active review of potential acquisitions. All potential acquisitions are subject to an assessment of their ability to generate a return on capital employed well in excess of the cost of capital DQGWKHLUVWUDWHJLFȴWZLWKLQWKH*URXS The Group conducts a stringent internal evaluation process and external due diligence prior to completing any acquisition. Group and subsidiary management have VLJQLȴFDQWH[SHUWLVHLQDQGH[SHULHQFHRI integrating acquisitions. Performance against original acquisition proposals is formally reported to the Board on an annual basis and account is taken of learnings. Projects and change management programmes are resourced by dedicated DQGDSSURSULDWHO\TXDOLȴHGLQWHUQDO personnel, supported by external expertise. |
|
| Key supplier & customer relationships |
Certain Group subsidiaries derive a VLJQLȴFDQWSDUWRIWKHLUUHYHQXHIURPNH\ suppliers and customers and the loss of any of those relationships would have a material ȴQDQFLDOLPSDFWRQWKDWVXEVLGLDU\ |
The Group as a whole trades with a very broad supplier and customer base. Close commercial relationships exist with all our suppliers and customers and there is a constant focus on providing a value added service to them. |
| Risk | Impact | Principal Mitigation Measures | Movement |
|---|---|---|---|
| Cyber and information security |
Maintaining adequate IT systems and infrastructure to support growth and GHYHORSPHQWPD\EHDHFWHGE\ – accidental exposure or deliberate theft of sensitive information; – loss of service or system availability; – VLJQLȴFDQWV\VWHPFKDQJHVRUXSJUDGHV and – cybercrime. |
Dedicated IT personnel with the appropriate technical expertise are in place in Group subsidiaries to oversee IT security. IT standards and policies have been subject to a comprehensive review and update project over the last three years to ensure they are in line with appropriate best practices. Cybersecurity reviews are performed by a dedicated internal IT audit team and external technical experts to provide independent assurance. Business continuity, IT disaster recovery and crisis management plans are in place and tested. |
|
| Talent management |
The Group's devolved management structure has been fundamental to the Group's success. A failure to attract, retain or develop high quality entrepreneurial management throughout the Group could impact on the attainment of strategic objectives. |
The Group maintains a constant focus on this area with structured succession planning, management development and remuneration programmes, incorporating long and short term incentives, in place. A graduate recruitment programme has also been established. These programmes are reviewed regularly by Group Human Resources, divisional management, the Chief Executive and the Board. |
|
| Crime | The Group is potentially subject to a variety of criminal threats including fraud, particularly in relation to payments, and theft of product. |
The security of the Group's IT and banking systems are subject to both external and internal review and are updated and improved as needed. Other internal controls against fraud are maintained in every subsidiary and are monitored at Group level. 6XLWDEOHFRQWUROVDUHLQSODFHDJDLQVW physical crime such as theft and vandalism. 7KH*URXSDOVRPDLQWDLQVȴGHOLW\LQVXUDQFH in relation to risks in this area. |
|
| Financial and reporting |
The Group is exposed to liquidity, foreign exchange and interest rate risk, as well as ongoing demands for credit. |
7KHURXSȇVȴQDQFLDOSRVLWLRQUHPDLQV VWURQJZLWKVLJQLȴFDQWFDVKUHVRXUFHV and relatively long term debt maturities. There is a continued focus on working capital management, cash generation and managing supplier and customer UHODWLRQVKLSVURXSȴQDQFLDOULVN management is governed by policies and guidelines which are reviewed and approved annually by the Board. |
|
| Key: Impact on Strategic Priorities |
Market leading Operational positions HɝFLHQF\ |
Development Extend our Financial geographic discipline teams footprint |
of entrepreneurial |
Increased risk
| Risk | Impact | Principal Mitigation Measures | Movement |
|---|---|---|---|
| External Factors (including weather) |
External factors outside of the direct LQȵXHQFHRIWKH*URXSLQFOXGLQJHFRQRPLF cycles, technological changes and weather, FDQVLJQLȴFDQWO\LPSDFWRQSHUIRUPDQFH Demand for some of the products sold by the Group, most notably heating products in the Energy division, is directly related to weather conditions. The inherent uncertainty of weather conditions therefore |
The impact of external factors is mitigated WKURXJKDIRFXVRQVWURQJȴQDQFLDO management, a broad spread of products and customers across the divisions and careful geographical expansion. The Energy division continues to expand LWVRSHUDWLRQVLQWKHQRQKHDWLQJVHJPHQWV of the market, primarily in transport fuels (with a particular emphasis on retail petrol |
|
| SUHVHQWVDULVNWRSURȴWVJHQHUDWHGE\ that division. |
stations), in marine and in aviation. | ||
Pricing The Group is exposed to commodity cost price risk in its Energy division, in both its oil distribution and LPG distribution businesses. The ability to maintain margins by recovering these costs on a timely basis may be adversely impacted by external factors including changes to consumer spending, competition and regulations.
Commodity cost price movements are LPPHGLDWHO\UHȵHFWHGLQRLOVDOHVSULFHV and within a short period in LPG sales prices. Approved matching forward contracts and hedges are used where price movement exposures exist.
7KH*URXSHPSOR\VȴQDQFLDODQGQRQȴQDQFLDONH\SHUIRUPDQFHLQGLFDWRUVȆ.3ΖVȇ ZKLFKVLJQLI\SURJUHVVWRZDUGVWKHDFKLHYHPHQWRIRXU strategy. Each division has its own KPIs which are in direct alignment with those of the Group and are included in the divisional operating reviews on pages 26 to 53.
| KPI | 'HȴQLWLRQ | Strategic Linkage |
|---|---|---|
| Return on capital employed ('ROCE') |
52&(LVGHȴQHGDVWKHRSHUDWLQJSURȴW before amortisation and exceptional items expressed as a percentage of the average capital employed. Capital employed represents total equity adjusted for net cash/ debt, goodwill and intangibles previously ZULWWHQRFRQWLQJHQWFRQVLGHUDWLRQDQG equity accounted investments. |
ROCE is the key financial benchmark we use when evaluating both the performance of existing businesses and potential investments. The Group strives to consistently provide returns well in excess of its cost of capital. ROCE is a key component of DCC's executive bonus plans and Long Term Incentive Plan. |
| Growth in operating profit |
0HDVXUHVWKHFKDQJHLQRSHUDWLQJSURȴW before amortisation and exceptional items achieved in the current year compared to RSHUDWLQJSURȴWEHIRUHDPRUWLVDWLRQDQG exceptional items reported in the prior year. |
Operating profit measures the underlying operating performance of the Group's businesses and gives an insight into activity levels, cost management and performance efficiency. |
| Growth in adjusted HDUQLQJVSHUVKDUHȆ(36ȇ |
Measures the change in adjusted EPS achieved in the current year compared to adjusted EPS reported in the prior year. |
(36LVDQLQGXVWU\VWDQGDUGIRUGHWHUPLQLQJ corporate profitability and represents an important metric in determining the generation of superior shareholder returns. It is a key component of DCC's executive bonus plans and Long Term Incentive Plan. |
| Operating cash flow |
Measures cash generated from operations before exceptional items. |
Operating cash flow represents the funds available for reinvestment, acquisitions and dividends, so maintaining a high level of cash generation is key to delivering strong shareholder returns. |
| Committed acquisition expenditure |
Measures cash spent and future contingent consideration amounts for acquisitions committed to during the year. |
The Group constantly seeks to add YDOXHHQKDQFLQJDFTXLVLWLRQVLQRUGHU to provide shareholders with returns on capital in excess of our cost of capital. |
| Health and safety | Lost Time Injury Frequency Rate ('LTIFR') measures the number of lost time injuries per 200,000 hours worked. Lost Time Injury Severity Rate ('LTISR') measures the number of calendar days lost per 200,000 hours worked. |
The safety of our employees and the wider community is central to everything we do. A continually improving occupational and process safety culture is a key element in delivering on our strategic objectives. |
| Gender diversity | Gender diversity measures the percentage split of the workforce between male and female employees. |
The Group benefits from attracting and developing a workforce with diverse skills, qualities and experiences. |
Development of entrepreneurial teams
5 Linked to Directors' Remuneration
| Performance | Comment | FY16 Outlook and Aims |
|---|---|---|
| The ROCE of 18.9% is significantly in excess of our current cost of capital. The increase in ROCE over the prior year reflected improvements across all four divisions and was driven by continued strong working capital management and the increase in the Group's operating profit of 10.5%. |
The achievement of returns on capital employed in excess of the Group's cost of capital will continue to be a key focus in order to ensure the efficient generation of cash to fund organic growth, acquisitions and dividend growth. |
|
2015 v 2014: S10.5% |
Approximately one third of the growth in the eP Group's operating profit was organic and eP operating profit growth was achieved across all four divisions, despite the impact of a weaker H[FKDQJHUDWHIRUWUDQVODWLQJQRQVWHUOLQJ denominated profits. Good growth was recorded in DCC Energy's Retail & Fuel Card business and there was a strong performance in DCC Healthcare, reflecting growth in DCC Health & Beauty and the impact of acquisitions. |
The outlook for FY16 is based on the important assumption that there will be normal winter weather conditions and that WKHDFTXLVLWLRQVRI(VVR6\$)DQG%XWDJD] complete by the end of June 2015 and in the final calendar quarter of 2015 respectively. The Group anticipates that operating profit will be very significantly ahead of the prior year. |
2015 v 2014: S9.8% |
7KHLQFUHDVHLQDGMXVWHG(36ZDVSULPDULO\ S driven by the factors mentioned under the S operating profit KPI. |
7KH*URXSDQWLFLSDWHVWKDWDGMXVWHG(36ZLOO be very significantly ahead of the prior year and is based on the same assumptions as the anticipated growth in operating profit mentioned above. |
| The Group generated excellent operating cash eP flow of £377.8m during the year, driven by eP operating profit from continuing operations of £221.7m and a reduction in working capital of £102.6m. |
Cash generation and working capital management will remain a key focus of the Group. |
|
eP |
The Group had a successful year of eP development activity with committed acquisition expenditure of £554.1m which principally comprised Butagaz (£338m), (VVR6\$)eP :LOOLDPV0HGLFDOeP and Captech (£15m). |
The Group will continue to pursue attractive opportunities in our traditional markets as well as looking to extend our business into selected new geographic markets. We continue to pursue a strong pipeline of opportunities but acquisition targets must meet our demanding criteria and the Group will remain disciplined in its approach to acquisition spend. |
| /7Ζ)5 /7Ζ65 |
The number of injuries from slips, trips, falls and manual handling increased during the year, reversing the historically positive downward trend of LTI performance metrics. All LTIs, regardless of severity, are investigated to determine root causes and to implement effective corrective actions. The emphasis on GD\V near miss reporting, employee engagement and safety leadership activities is continuous GD\V and the key to a return to a positive trend. |
The Group will continue to focus on promoting a strong safety culture across our businesses to raise risk awareness and the identification of improvement opportunities. LTI rates are targeted to decrease back in line with historical trends. |
| )HPDOH0DOHHPSOR\HHV |
On an overall basis, female employees accounted for 33% of the workforce. Within this, 20% of senior management and 30% of Board members were female. |
The Group will continue to focus on actions which will improve the diversity within our workforce and is targeting an improvement in the percentage of female employees. |
6WUDWHJLF5HSRUW
*'&&(QHUJ*
'&&(QHUJ\FRPSOHWHGWKHDFTXLVLWLRQRI4VWDU 5HWDLOWKHȴIWKODUJHVWUHWDLOVHUYLFHVWDWLRQQHWZRUN (325 unmanned retail sites and 311 million litres of WUDQVSRUWIXHOV LQ6ZHGHQLQ0D\ΖQ\$XJXVW 2014, DCC Energy announced that agreement in principle had been reached with Esso for DCC Energy to acquire its Esso Express network and the Esso Motorway network (comprising 274 unmanned retail sites and 48 retail sites respectively and selling approximately 1.9 billion litres of transport fuels) in )UDQFH7RIDFLOLWDWHWKHHɝFLHQWUXQQLQJRIWKH(VVR France network, DCC Energy has set up an operation in Drogheda (just north of Dublin), from where the majority of the key business functions including pricing will be carried out. This facility will be scalable with the ability to run additional retail networks if further acquisitions become available.
DCC Energy's strategy is to expand its retail service station business in Europe by extending its geographic footprint through acquisition. DCC Energy is building positions in new geographies through the development of a hub and spoke structure to facilitate building a larger business without duplication of costs.
Financial Statements
Strategic Report
)ORJDV6ZHGHQZRUNHGZLWK6YHYLD\$%WRFRQYHUWWKHLU asphalt facility at Arlanda airport from burning fuel oil to LPG. We won the contract by demonstrating to the customer the energy and operating savings, along ZLWKWKHHQYLURQPHQWDOEHQHȴWVRI/3*DVDFOHDQHU fuel in comparison to fuel oil. Flogas' engineering WHDPZRUNHGZLWK6YHYLDȇVVLWHPDQDJHPHQWWRLQVWDOO LPG equipment (including a 50 tonne storage tank) and to carry out adjustments to their burner to allow the safe burning of LPG. The outcome is a longer term value added customer relationship for DCC and a reduction in emissions for our customer while delivering competitive pricing.
7KH6YHYLDFRQWUDFWIXUWKHUVWUHQJWKHQVWKH)ORJDV PDUNHWOHDGHUVKLSSRVLWLRQLQ6ZHGHQDQGLWDOVR continues to drive DCC Energy's growth in cleaner energy products.
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Strategic Report
Exertis is focused on expanding its geographic reach in Europe to enable the business to provide DPXOWLFRXQWU\RHULQJWRLWVNH\YHQGRUSDUWQHUV 7KH1RUGLFUHJLRQZDVLGHQWLȴHGDVDQDUHDRILQWHUHVW and a detailed search was undertaken of acquisition FDQGLGDWHVLQWKHUHJLRQ7KLVLGHQWLȴHG&DS7HFKWKH QXPEHUWKUHHGLVWULEXWRURIΖ7SURGXFWVLQ6ZHGHQ as an excellent opportunity in terms of vendor partners, customer base, service levels and the strength of the management team.
ΖQ6HSWHPEHU([HUWLVDFTXLUHG&DS7HFKZKLFK focuses on IT hardware, professional AV and home entertainment products. This acquisition is expected to form the basis for the development of a Pan Nordic IT distribution business and the CapTech management (led by Managing Director, Daniel Johnsson) have stayed on to grow the CapTech business within the wider Exertis business. CapTech has now been rebranded Exertis and the acquisition will strengthen our relationship with some key IT vendors including Acer, Asus, Dell, Microsoft, 1(&DQG6DPVXQJ
The acquisition of CapTech will help Exertis to extend its geographic footprint into the Nordic region. This will help to provide new horizons for growth and access to new customers in the region.
Strategic Report
In June 2012, DCC Healthcare acquired Vitamex, D6ZHGLVKFRQWUDFWWDEOHWPDQXIDFWXUHUZKLFK VXSSOLHVDUDQJHRISURGXFWVWROHDGLQJ6ZHGLVK and international consumer healthcare and health & beauty brand owners. This acquisition allowed DCC Healthcare to extend the breadth of its service RHULQJWREUDQGRZQHUVLQWKHKHDOWK EHDXW\ sector and to expand its European customer base. The business was housed in a seven storey building which was originally a textile factory and was not suitable for further development.
DCC Healthcare has operated a high quality licensed tablet facility in the UK, supplying both leading domestic and international brand owners, for many years. While this facility had capacity, a skilled workforce and development potential, it did not have WKHWHFKQRORJ\WRPDQXIDFWXUHHHUYHVFHQWWDEOHWV After a detailed review of our development options, a decision was taken to invest in the UK facility, adding capacity and the technology to manufacture HHUYHVFHQWWDEOHWV7KH8.IDFLOLW\EHFDPHWKH centre of all DCC Healthcare's tablet manufacturing
and development. Over an 18 month period, DCC Healthcare management developed and executed an integration plan that involved consultation and working with key stakeholders – customers, suppliers, employees and unions – to ensure its delivery. The 6ZHGLVKPDQXIDFWXULQJRSHUDWLRQVZHUHLQWHJUDWHG with minimum disruption to service levels and continues to be supported by a Nordic market focused R&D and business development team based LQ6ZHGHQ
7KHWUDQVIHURIPDQXIDFWXULQJLPSURYHGWKHHɝFLHQF\ of our operating model and delivered a range of EHQHȴWVIRU'&&+HDOWKFDUHΖWFRPELQHGDOOWDEOHWLQJ activities on one site, optimising manufacturing HɝFLHQFLHVDQGEURDGHQLQJLWVVHUYLFHRHULQJ ΖWDOORZHG'&&+HDOWKFDUHWRRHUPRUHFRPSHWLWLYH prices and a greater depth of product development and technical resources to existing and target customers in the Nordic region. This supports both business retention and growth and enables DCC Healthcare to leverage its existing customer base E\RHULQJQHZWHFKQRORJLHV
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Financial Statements
DCC Energy is the leading oil and liquefied petroleum gas ('LPG') sales, marketing and distribution business in Europe. In oil distribution, DCC Energy is the market leader in Britain and 6ZHGHQDQGRQHRIWKHOHDGLQJRLO distribution businesses in Austria, Denmark and Ireland. In LPG, DCC Energy is the market leader in 1RUZD\DQG6ZHGHQMRLQWOHDGHU in the Netherlands and is the strong number two player in both Britain and Ireland. In Retail & Fuel Card, DCC Energy is building strong market positions in Britain, France DQG6ZHGHQ
In the year ended 31 March 2015, DCC Energy sold 10.8 billion litres of product to its customer base of approximately one million customers across 9 countries.
External activities
Results
9ROXPHV EQOLWUHV S5.7%
5HWXUQRQFDSLWDOHPSOR\HG
2SHUDWLQJ3URȴW eP S8.1%
Bayford, Brogan*, Bronberger & Kessler*, Butler Fuels*, Carlton Fuels*, CPL Petroleum, DCC Energi*, Emo Oil*, Energie Direct*, Gulf, Pace Fuelcare, 4VWDU
6FRWWLVK)XHOV
6KHOO6ZHD Texaco, Top Oil*(in Austria).
BP, Diesel Direct, Esso, Fastfuels, Gulf, 6KHOO4VWDU
Flogas*, MacGas*, Benegas*.
* DCC owned brands
Outbound logistics
6WURQJKHDOWKDQGVDIHW\HWKRV delivering potentially hazardous products safely and reliably.
Passionate, experienced and committed team of people.
Customer focused.
4XDOLW\RIVHUYLFHDWFRPSHWLWLYHSULFHV
6FDOHSURYLGHVVHFXULW\RIVXSSO\ and ability to tailor contracts to customers' requirements.
Commercial/Industrial
Retail forecourts
Fuel Card
DCC Energy's oil distribution business sells transport fuels, heating oils and fuel oils to commercial, retail, domestic, agricultural, industrial, aviation and marine customers in Britain, Ireland, 'HQPDUN6ZHGHQ\$XVWULDDQG*HUPDQ\ In Britain, DCC Energy has been a consolidator of the fragmented oil distribution market since 2001. Operating as Certas Energy, the business sells oil under a large portfolio of brands, including Bayford, Brogan, Butler Fuels, Carlton Fuels, CPL Petroleum, Gulf, Pace )XHOFDUH6FRWWLVK)XHOVDQG7H[DFR Outside Britain, DCC Energy sells oil under the leading brands of Emo Oil ΖUHODQG 6ZHD6ZHGHQ '&&(QHUJL 6KHOO'HQPDUN (QHUJLH'LUHFW 6KHOO\$XVWULD 7RS2LO\$XVWULD 7RS2LO Bayern and Bronberger & Kessler (Bavaria, Germany).
DCC Energy has been the consolidator of what was, and continues to be, a highly fragmented oil distribution market in %ULWDLQ'&&(QHUJ\ȴUVWHQWHUHGWKH PDUNHWLQ6HSWHPEHUZLWKWKH DFTXLVLWLRQRI%3ȇVEXVLQHVVLQ6FRWODQG and since then has acquired and integrated 38 businesses including the oil GLVWULEXWLRQEXVLQHVVHVRI6KHOO Chevron Texaco (2008) and Total (2011). DCC Energy has grown to become, by far, the largest oil distributor in Britain. DCC's addressable market in Britain comprises transport fuels and heating oils to commercial, industrial, domestic, agricultural and dealer owned petrol stations with volumes of approximately 30 billion litres. In the year ended 31 March 2015, DCC Energy sold 5.7 billion litres of product giving a market share of approximately 18%.
The total retail petrol station market in Britain is approximately 35 billion litres with 45% of volumes sold through supermarket sites, 25% through company owned and operated stations and 30% through independent dealer owned stations. DCC Energy operates in the independent dealer owned segment of the retail market and is the largest supplier to this segment, based on the 1,600 sites we supply. DCC Energy has a market share of circa 4% of the total market and supplies to approximately 10% of the dealer network.
Emo Oil is one of the leading oil distributors in Ireland with a market share of 9%. DCC's addressable oil market in Ireland is estimated to be 9 billion litres.
'&&ȇV6ZHGLVKRLOGLVWULEXWLRQEXVLQHVV 6ZHD LVWKHPDUNHWOHDGHULQ6ZHGHQ with a share of approximately 16% of the addressable market which is estimated to be 2 billion litres. In Denmark, the addressable oil distribution market is estimated at 2 billion litres of which DCC Energi Danmark has a market share of 12% making it the number two oil distributor. The addressable oil distribution market in Austria is estimated to be 5 billion litres and DCC's subsidiary, Energie Direct, is number two in this market with a share of 12%. With the oil majors continuing to divest of oil distribution assets, DCC Energy is well placed to continue its growth in Continental Europe through acquisitions.
Through the Flogas Group, DCC Energy supplies LPG (propane and butane) in both cylinder and bulk to commercial, domestic, agricultural and industrial customers across six countries in Europe. The product is used for industrial applications, space heating, hot water and cooking, and also as road fuel (autogas). Unlike the oil distribution markets, which remain highly fragmented, the LPG markets across Europe are relatively consolidated and the Flogas Group has a leading position in each market that it operates in.
Britain is Flogas' largest LPG market with an addressable market of approximately 800,000 tonnes. Flogas Britain is the clear number two LPG distributor in Britain with a market share of circa 30%, having focused on organic growth with commercial customers. The business operates from a nationwide infrastructure of 67 depots. In 2015 the business invested further in the assets required for supplying OLTXHȴHGQDWXUDOJDVȆ/1*ȇ DVDQHQHUJ\ solution to large industrial businesses DQGWUXFNȵHHWVΖQDGGLWLRQ)ORJDV%ULWDLQ distributes a wide range of LPG fuel appliances such as mobile heaters and barbecues while the Flogas Renewables team provides customers with products such as biomass boilers, solar panels and heat pumps.
Flogas Ireland, operating in both the Republic of Ireland and Northern Ireland, is the number two LPG distributor and has continued to grow organically to an estimated 40% share of the addressable market of approximately 180,000 tonnes. The business operates from six depots throughout the country including three import facilities. Flogas Ireland has also established a leading position as a distributor of natural gas to the commercial market. In addition, Flogas Ireland markets a range of heaters and barbecues and is currently developing DUHQHZDEOHVRHULQJ
In the Netherlands, where the Flogas Group trades under the Benegas brand, the business has an overall market share of 26% of the addressable market of approximately 330,000 tonnes and is
joint market leader. Operating from one central depot and a number of third party locations, the business delivers to commercial, industrial, agricultural and domestic customers in the Netherlands DQG%HOJLXPDQGLVDOVRDVLJQLȴFDQW player in the sale of LPG for aerosol and autogas use.
ΖQ6ZHGHQDQG1RUZD)ORJDVRSHUDWHV from six third party operated locations which include three key import facilities. Flogas is the market leader in both these markets with 55% and 38% market shares LQ6ZHGHQDQG1RUZD\UHVSHFWLYHO\7KH addressable market is estimated to be DSSUR[LPDWHO\WRQQHVLQ6ZHGHQ and 190,000 tonnes in Norway.
On 18 May 2015, DCC Energy reached DJUHHPHQWLQSULQFLSOHZLWK6KHOOWR DFTXLUH%XWDJD]6\$6Ȇ%XWDJD]ȇ D OHDGLQJOLTXHȴHGSHWUROHXPJDVEXVLQHVV LQ)UDQFHIRUȜPLOOLRQePLOOLRQ This would represent the largest ever acquisition by DCC and a major step forward in the continuing expansion of its LPG business. The French LPG market is the second largest in Western Europe and approximately twice the size of the market in Britain. The acquisition of Butagaz would provide DCC Energy with a substantial presence in the French LPG market, an experienced management team and a high quality sales, marketing and operating infrastructure. Butagaz is the leading LPG brand in France with very high levels of consumer brand recognition. Butagaz has a strong supply base, sourcing LPG from a number of supply points in France and also from %HOJLXP6SDLQDQG*HUPDQ\%XWDJD] transports product by road, rail, sea and SLSHOLQHWRDZHOOLQYHVWHGQHWZRUNRIWHQ EXONGHSRWVDQGVHYHQȴOOLQJSODQWVDFURVV )UDQFHDQGRQHȴOOLQJSODQWLQ&RUVLFD7KH business sells to circa 210,000 small and large bulk customers, while cylinders are stocked at 46 depots nationally and are distributed to some 26,000 retail points of sale, including hypermarkets and independent retailers, which in turn sell WRDSSUR[LPDWHO\IRXUPLOOLRQHQGXVHUV
The acquisition of Butagaz would provide DCC Energy with a substantial presence in the French LPG market, an experienced management team and a high quality sales, marketing and operating infrastructure.
DCC Energy is one of the leading sales and marketing of branded fuel cards businesses in Britain. The business sells approximately 1 billion litres of transport fuels annually and provides its customers with access to the breadth of the British retail petrol station and bunker networks through its portfolio of fuel cards under WKH%3(VVR6KHOO7H[DFRDQG'LHVHO Direct brands. As well as selling fuel cards, which are an essential tool for commercial organisations to manage their transport fuel costs, DCC also provides an innovative range of value added services to help further minimise spend on transport fuels.
ΖQ0D\'&&(QHUJ\PDGHLWVȴUVW VLJQLȴFDQWDFTXLVLWLRQLQWKHUHWDLOSHWURO station market through the acquisition RI4VWDU7KLVDFTXLVLWLRQLVLQOLQHZLWK DCC Energy's stated ambition of building a larger presence in the transport fuels PDUNHW4VWDULVWKHȴIWKODUJHVWSHWURO UHWDLOHULQ6ZHGHQVHOOLQJPLOOLRQOLWUHV RISURGXFWSHUDQQXP4VWDUSURYLGHV national coverage through a network of unmanned forecourts which is complemented by an additional 70 dealer operated petrol stations trading under the Bilisten and Pump brands.
In August 2014 DCC Energy announced that it had reached agreement in principle to acquire Esso's retail petrol station business in France. The business comprises the Esso Express unmanned retail petrol station network (274 sites) and the Esso motorway concessions (48 sites) in France. Following the completion of this acquisition, DCC Energy will have a network of 685 unmanned and manned retail SHWUROVWDWLRQVLQ)UDQFH6ZHGHQ%ULWDLQ and Ireland.
DCC Energy's vision is to be a global leader in the sales, marketing and distribution of fuels and related products and provision of services to energy consumers:
DCC Energy's strategy is to be the leading oil distribution business in Europe by continuing to consolidate existing markets, driving targeted growth, SDUWLFXODUO\LQWKHQRQKHDWLQJGHSHQGHQW segments of the market, expanding into new geographies through acquisition and GULYLQJRUJDQLFSURȴWJURZWK2UJDQLF growth is targeted by leveraging the scale RIWKHEXVLQHVVVHOOLQJGLHUHQWLDWHG SURGXFWVDQGFURVVVHOOLQJDGGRQ products and services such as lubricants and boiler maintenance services to its extensive customer base.
A key element of DCC Energy's expansion involves building a larger presence in the transport fuels segment of the market. DCC Energy intends to pursue this strategy by growing its presence in the retail forecourt sector of the market through expansion of supply to independent dealers, by leveraging its existing scale and supply infrastructure and by developing industry leading propositions for its dealers and retail consumers.
DCC Energy's strategy in Britain is to continue to grow its market share (currently 18%) to in excess of 20% of its addressable market. Key to achieving this target is growth in transport fuels with a particular focus on retail petrol stations and the marine and aviation sectors. DCC Energy is now the largest supplier to independent dealer owned retail petrol stations in Britain, selling to approximately 1,600 sites across the country. The business has been actively rolling out the Gulf brand across this network.
Strategic Report
DCC Energy will further leverage its strong LPG market positions across the Flogas *URXSE\GULYLQJRUJDQLFSURȴWJURZWK on a sector by sector basis. Building on recent success, we will continue to target growth by promoting LPG to industrial and commercial entities looking to switch to more environmentally friendly and competitively priced energy sources. We will also seek to extend into related product areas and into new geographic markets, as the recently agreed acquisition of Butagaz demonstrates.
Operationally, with recent acquisitions now fully integrated, the business will FRQWLQXHWRGHOLYHUIXUWKHUHɝFLHQFLHV through a number of business improvement initiatives across the Flogas Group. These initiatives include the roll out of new Customer Relationship Management ('CRM') systems and telemetry (remote tank reading) on customer tanks to LPSURYHRSHUDWLRQDOHɝFLHQFLHV
7KURXJKWKHDFTXLVLWLRQRIWKH4VWDU IRUHFRXUWQHWZRUNLQ6ZHGHQ'&&(QHUJ\ KDVWDNHQLWVȴUVWPDMRUVWHSLQEXLOGLQJ a retail business across Europe in pursuit of its strategy of capturing a greater share of the consumer margin in the transport sector of the market.
The retail business will be further strengthened with the completion of the acquisition of the Esso retail petrol station business in France which will make DCC Energy one of the leading retailers of diesel and petrol in France and provide a platform for further growth in the French market.
In Fuel Card, DCC Energy is continuing to target high levels of organic growth through its extensive telesales team and by cross selling fuel cards to its broad oil distribution customer base. The Fuel Card business has expanded its customer RHULQJE\SURYLGLQJLQQRYDWLYHSURGXFWV to customers such as 'CO2 Count' and 'Mileage Capture' which provide customers with key information on fuel consumption and emissions to allow them to better manage their businesses.
DCC Energy has a very broad customer base selling directly to approximately 1 million customers across the geographies in which the businesses operate and also has access to a broad range of retail and cylinder consumers. Customers are primarily spread over the commercial, retail, industrial, domestic, agricultural and marine markets. DCC Energy has no material customer dependencies.
Volume split by customer type
As with its customer base, DCC Energy's supplier portfolio is broadly based. 7KHWRSȴYHVXSSOLHUVUHSUHVHQW approximately 50% of total volumes supplied with no one individual supplier accounting for more than 15% of volumes supplied in the current year. The major suppliers to the division are BP, Essar, (VVRΖQHRV0DEDQDIW3KLOLSV6KHOO 6W6WDWRLODQG9DOHUR(QHUJ\'&&(QHUJ\ has, over many years, built long term strategic partnerships with its suppliers and we have continued to strengthen these relationships during the year.
Following completion of the acquisition of Esso's petrol station business in France, DCC Energy will have a network of 685 unmanned and manned retail petrol VWDWLRQVLQ)UDQFH6ZHGHQ Britain and Ireland.
DCC Energy's expanding Fuel Card business provides fuel cards to small DQGPHGLXPHQWHUSULVHVȆ60(Vȇ that enable businesses to reduce administration time and costs associated with the purchase of diesel DQGSHWUROIRUYDQDQGFDUȵHHWV DCC Energy's Fuel Card business is an authorised reseller of major petrol and diesel fuel card brands including 6KHOO%3(VVRDQG7H[DFR
'&&(QHUJ\ȴUVWHQWHUHGWKHIXHOFDUG market in Britain through an acquisition in 2005, which provided DCC Energy with a business selling 150 million litres of fuel to a customer base of 6,400 and ZLWKRSHUDWLQJSURȴWRIDSSUR[LPDWHO\ £2 million. Through a mixture of strong organic and acquisition growth, DCC Energy has consistently grown its Fuel Card business and in the year to March 2015, the business sold approximately 900 million litres to a broad customer base of approximately 50,000 small to medium sized enterprises and achieved RSHUDWLQJSURȴWVRIDSSUR[LPDWHO\ £20 million.
Organic growth has been achieved through developing and expanding fuel card ranges, while building upon DVWURQJSRUWIROLRRIYDOXHDGGHG VHUYLFHV7KHVHLQFOXGHDQLQGXVWU\ OHDGLQJPLOHDJHFDSWXUHRHULQJIRU ȵHHWPDQDJHUVHPLVVLRQVPRQLWRULQJ FDUGSURWHFWLRQDQGXSJUDGHGH6HUYLFHV for online account management. Investment in marketing has included JURXQGEUHDNLQJXVHRIGLJLWDO programmes, including video and smartphone apps, for stronger customer engagement and lead generation. In addition, an expanding sales force has been winning new EXVLQHVVDFFRXQWVZKLOVWDSURDFWLYH retentions department actively seeks to reduce customer churn and retain customer loyalty. The continuing LQYHVWPHQWLQVNLOOHGVWDLVHQKDQFHG by ongoing investment in training and professional development.
6XFFHVVIXOVZLWFKLQJRIFXVWRPHUV from competitors continues alongside impressive customer retention and has contributed to the business achieving 12% market share in Britain. New products, new services and new partnerships are already in development IRUWKHȴQDQFLDO\HDUWKDWZLOO continue to build upon the progress made to date.
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DCC Energy's business is a people business at its core. Therefore we are very focused on developing processes and practices that ensure the well being, development and engagement of our people across all areas of the business and to ensure that we have the necessary resources, talent and skills to deliver the service levels expected by our customers in a safe way, every day.
DCC Energy has highly experienced and ambitious management teams with a deep knowledge of the markets in which the businesses operate. As our businesses have grown we have looked to augment the existing management teams with experienced personnel in senior roles and we will continue to develop the management teams as the businesses grow.
DCC Energy currently employs 4,693 people.
Continuous improvement of our safety performance is a key priority and responsibility for all line managers and directors who are supported by experienced health and safety functions in each business. Occupational and process safety (relating to the larger terminals which have the potential for a major accident) is managed through systems and processes which identify, control and monitor health and safety risks. Monthly KPIs are reviewed by the DCC Energy Board which sets annual objectives to drive improvements in near miss reporting, safety awareness, safety competence and overall safety culture.
In the year to March 2013, DCC Energy ODXQFKHG6DIHW)UVWDVDIHW\FXOWXUH initiative focused on improving attitudes and behaviour towards safety and led by the senior management teams. Following the successful adoption in Certas Energy 8.6DIHW)UVWKDVEHHQUROOHGRXWWRDOO companies in the business.
DCC Energy sold 10.8 billion litres of product during the year ended 31 March 2015 and the businesses operate with inherent risks to the environment and people. Ensuring that our businesses maintain rigorous health, safety and environmental standards is one of our core business principles. Having rolled RXWRXU6DIHW)UVWFDPSDLJQDFURVVWKH business, the focus is now on reinforcing the programme through quarterly communications campaigns to ensure we drive continued improvement and maintain momentum.
DCC Energy has a broad customer base across a number of geographies and many of the economies in which the division operates are showing signs of recovery. However, a deterioration in this economic recovery and its impact RQFRQVXPHUVSHQGLQJDQGFRQȴGHQFH is a key risk faced by the business.
\$VLJQLȴFDQWSURSRUWLRQRI'&&(QHUJ\ȇV volumes are generated through the sale of heating dependent products and accordingly, as noted in previous years, the division can be impacted by extreme movements in weather conditions. The development focus has been to reduce the heating dependence of the division WKURXJKWKHGHYHORSPHQWRIWKHQRQ heating segments of the business. The DFTXLVLWLRQRI4VWDULQ6ZHGHQKDVEHHQ a key building block in this strategy, which will continue in the coming year with the completion of the acquisition of Esso's retail petrol station business in France.
DCC Energy has been highly acquisitive over the last number of years and ensuring the smooth integration of these acquisitions is critical to the success of the division. This is achieved through close monitoring of the acquired businesses and ongoing management development.
DCC Energy's approach to sustainability recognises the reality of climate change and the challenges arising from changing weather patterns and more frequent extreme weather events. Government responses to climate change include levies and taxes on carbon emissions, incentives for renewables and energy HɝFLHQF\WHFKQRORJLHVDQGVHWWLQJORQJ term carbon reduction targets. At the same time, the economy relies on energy (primarily from fossil fuels) to function and grow. DCC Energy is committed to assisting our customers reduce their environmental impact. This is being DFKLHYHGWKURXJKRHULQJRXUFXVWRPHUV FOHDQHUPRUHHɝFLHQWIXHOVDQG innovative solutions, enabling customers to monitor their own energy use and quantify carbon emissions.
The potential for oil spills to impact on the environment is a risk that is managed on a daily basis. From domestic deliveries to large storage facilities in coastal locations, a range of controls are in place to minimise the potential of this becoming a reality. Controls include the design and maintenance of vehicles and depots, the LPSOHPHQWDWLRQRIHHFWLYHRSHUDWLRQDO procedures and, critically, the engagement of competent, trained employees who are handling product safely every day.
All spills have the potential to cause local damage so in the event of any spill occurring, immediate action is taken to contain and recover the product to minimise impact to the surroundings. Detailed investigations are completed to identify the root causes of any incidents to identify learning points and opportunities for improvement. 1RVLJQLȴFDQWVSLOOVRFFXUUHGLQWKHSHULRG DCC Energy's businesses have a local footprint in all the markets in which we have a presence. Therefore it is crucial to our long term strategy that we have a high degree of trust within the communities in which we operate. All our businesses operate to the highest standards, invest heavily in infrastructure and training, and HQFRXUDJHRXUVWDWRSDUWLFLSDWHDFWLYHO\ in the communities within which they work.
It was an excellent year for growth and development in DCC Energy. DCC Energy delivered a strong trading performance ZLWKRSHUDWLQJSURȴWDKHDGRIWKH prior year (10.3% ahead on a constant currency basis). The trading performance EHQHȴWHGIURPDFTXLVLWLRQVDQGD FRQWLQXLQJIRFXVRQRSHUDWLRQDOHɝFLHQF\ SDUWO\RVHWE\WKHHHFWRIPLOGZLQWHU weather conditions, relative to the 10 year average, which impacted all geographies in which DCC Energy operates. DCC Energy made excellent progress in its strategy to expand both its retail and LPG businesses by committing to acquire both the Esso Retail and Butagaz businesses in France.
DCC Energy sold 10.8 billion litres of product during the year, an increase of 5.7% over the prior year (1.2% organically).
The Oil Distribution business performed robustly, notwithstanding the impact of the mild winter weather conditions. 7KHEXVLQHVVEHQHȴWHGIURPJRRGFRVW FRQWUROLPSURYHGORJLVWLFVHɝFLHQFLHV and continued growth in the commercial sectors of the market. The business continued its focus on growth in the transport fuels sector and made good progress in supplying retail petrol station, marine and aviation customers.
The LPG business performed well during the year. Good growth was achieved in sales to commercial and industrial customers in the UK and Ireland, while in Benelux the autogas sector performed strongly. Continuing its strategy to expand the LPG business into new markets, DCC reached agreement in principle to acquire Butagaz, which would position DCC Energy as the strong number two in the LPG market in France.
It was an excellent year for growth and development in DCC Energy. DCC Energy delivered a strong trading performance with operating profit 8.1% ahead of the prior year.
DCC Energy made excellent progress in developing its business in Retail & Fuel Card. DCC's Fuel Card business in Britain had an excellent year and recorded very strong organic volume growth. 7KHDFTXLVLWLRQRI4VWDULQ0D\ ZDV'&&ȇVȴUVWPDWHULDODFTXLVLWLRQLQWKH retail petrol station market and positions '&&DVWKHȴIWKODUJHVWUHWDLOHURISHWURO DQGGLHVHOLQ6ZHGHQWKURXJK4VWDUȇV nationwide network of 325 unmanned VLWHV4VWDUKDVSHUIRUPHGLQOLQHZLWK expectations since acquisition. DCC Energy made further progress in the retail sector when it announced in August 2014 that it had reached agreement in principle to acquire Esso's retail petrol station business in France, comprising 274 unmanned Esso Express sites and concessions to operate 48 Esso branded motorway sites.
Following the completion of the Esso Retail acquisition in France, DCC Energy will operate across ten countries in Europe and remains well positioned to grow in those markets and to continue to expand into new geographies.
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DCC Technology is a leading sales, marketing, distribution and supply chain services business providing a broad range of technology products and services to customers in Europe.
DCC Technology – What we do
350+ Global technology brands & manufacturers
DCC Technology's activities External activities
Acer, APC, Apple, Asus, Belkin, Cisco, 'HOO'/LQN(SVRQ)XMLWVXΖ%0 Lenovo, LG, Logitech, Microsoft, Netgear, 1RNLD3ODQWURQLFV5D]HU6DPVXQJ 6DQGLVN6RQ\7RP7RP7RVKLEDDQG Western Digital.
3URDFWLYHVDOHVDQGPDUNHWLQJ approach to a very broad customer base across a number of countries.
Excellent supplier portfolio.
Agile, responsive and service focused.
&RVWHHFWLYHDQGWDLORUHGVROXWLRQVIRU customers and suppliers.
7HFKQLFDOVXSSO\FKDLQDQGYDOXH added services expertise.
Financial strength.
DCC Technology, which trades as Exertis, sells a range of technology products to a very wide customer base of technology retailers, etailers and resellers, primarily LQWKH8.ΖUHODQG)UDQFH6ZHGHQDQG the Netherlands. The products distributed include a broad range of computing products (including tablets and PC's), communications products (including smartphones, feature phones, DFFHVVRULHVDQGXQLȴHGFRPPXQLFDWLRQV servers & storage, audio visual products, printers, peripherals, networking & security products and consumables. In addition, the business sells a diverse range of consumer technology products including games consoles & software, wearable technology, consumer electronics and accessories & peripherals. The business partners with many of the world's leading technology brands.
DCC Technology provides technology brand owners and manufacturers with an exceptionally broad customer reach and proactively markets their products through product and customer focused sales teams. The business provides DUDQJHRIYDOXHDGGHGVHUYLFHVLQWKH reseller and retail channels to both its customers and suppliers, including HQGXVHUIXOȴOPHQWGLJLWDOGLVWULEXWLRQ category management and merchandising, kitting, product customisation and cross supplier bundling, third party logistics and web site development & management.
5HȵHFWLQJWKHJOREDOQDWXUHRIWKH technology supply chain, DCC Technology provides global supply chain services through its dedicated supply chain operations in Western Europe, Poland, &KLQDDQGWKH86\$DQGHPSOR\VVWDWH of the art IT systems and procurement processes. These services include product sourcing & procurement, supplier hubbing, consignment stock SURJUDPPHVVXSSOLHULGHQWLȴFDWLRQ TXDOLȴFDWLRQTXDOLW\DVVXUDQFH compliance and supplier & customer IXOȴOPHQWDQGDUHGHVLJQHGWRHQDEOH its partners to bring technology SURGXFWVWRPDUNHWLQWKHPRVWHɝFLHQW manner possible.
DCC Technology's principal addressable markets are the retail and reseller channels for technology products in WKH8.ΖUHODQG)UDQFH6ZHGHQDQGWKH Netherlands. The value of the technology GLVWULEXWLRQPDUNHWLQWKHVHȴYH WHUULWRULHVLVHVWLPDWHGWREHȜELOOLRQ
During the year, DCC Technology acquired CapTech, the third largest IT distributor LQ6ZHGHQ7KLVDFTXLVLWLRQZLOOIRUP the foundation for the development of a broader based business in the Nordic region.
DCC Technology is now the largest distributor of technology products in the UK & Ireland and the third largest LQ6ZHGHQ7KHEXVLQHVVLVDOVRDOHDGLQJ distributor of technology products in France with a focus on the retail channel. In the Netherlands the business is IRFXVHGRQXQLȴHGFRPPXQLFDWLRQV DCC Technology is the fourth largest distributor of technology products in Europe.
DCC Technology's vision is to become the leading sales, marketing, distribution and supply chain services business for technology products in Europe, delivering DQLQGXVWU\OHDGLQJVHUYLFHRHULQJ ZKLOVWGHOLYHULQJFRQVLVWHQWORQJWHUP SURȴWJURZWKDQGLQGXVWU\OHDGLQJUHWXUQV on capital employed.
DCC Technology's principal medium term strategic objectives are:
DCC Technology is constantly reviewing trends and innovations in technology products and services and is focused on ensuring that the business continues to EHWKHEHVWSRVLWLRQHGWREHQHȴWIURP these areas of future growth.
The business has a very broad customer base, selling to approximately 15,000 customers. The largest customer accounted for approximately 9% of revenues in the year ended 31 March 2015 and the ten largest customers accounted for 39% of total revenues in that year.
DCC Technology seeks to provide an excellent standard of customer service combining an extensive range of services with a commitment to identify the most FRVWHHFWLYHDQGȵH[LEOHVROXWLRQVWRRXU customers' requirements. By constantly focusing on building the breadth of our reseller and retail customer base, we ensure WKDWRXUVHUYLFHRHULQJLVDOZD\VGHYHORSLQJ to adapt to their growing demands, as well as delivering an exceptional route to market for our suppliers.
Our supply chain services customers include IT equipment manufacturers, outsourced equipment manufacturers, consumer electronics companies and telecommunications equipment manufacturers. Customer relationships in this area of our business tend to be long term in nature and several of our customers have been dealing with us for over ten years.
UK & Ireland 79% Continental Europe 14% Supply Chain Services 7%
DCC Technology has a diverse supplier base and partners with hundreds of suppliers including many of the world's leading technology brands, such as Acer, APC, Apple, Asus, Belkin, Cisco, Dell, '/LQN(SVRQ)XMLWVXΖ%0/HQRYR/* Logitech, Microsoft, Netgear, Nokia, 3ODQWURQLFV5D]HU6DPVXQJ6DQGLVN 6RQ\7RP7RP7RVKLEDDQG:HVWHUQ Digital. The largest supplier accounted for 11% of total purchases in the year ended 31 March 2015 and the top ten suppliers represented 58% of total purchases.
The business adopts a proactive DSSURDFKWRWKHLGHQWLȴFDWLRQDQG recruitment of new suppliers and technologies and seeks to position itself as the obvious choice for owners of growing brands to access the retail and reseller channels. In addition, we seek to ensure that we have a position of strategic relevance with our principal vendor partners.
When providing supply chain services to technology manufacturers and brand owners, a core element of the services provided by the business is the LGHQWLȴFDWLRQRIDSSURSULDWHFRPSRQHQW and supply chain partners for the manufacturer or brand owner and carrying out the quality assurance on those suppliers to ensure that they conform to required quality, regulatory and ethical standards.
:LWKWKHDLPRISURPRWLQJORQJWHUP sustainable relationships with each of our VXSSOLHUVDQGGHOLYHULQJDEHVWLQFODVV service, the operating principles we adopt with our suppliers have been formalised and communicated to our suppliers in our 'Code of Practice'.
DCC Technology employs 1,941 people in 11 countries and recognises that they are fundamental to the ongoing success of the business. At all levels, employees are encouraged to adopt a service orientated approach to meeting the demands of suppliers and customers.
At senior management level, our operating businesses are run by some of the best regarded entrepreneurial management teams in the industry. DCC Technology seeks to foster and maintain an entrepreneurial culture, coupled with a commitment to ensuring that the highest ethical standards in business conduct are maintained.
DCC Technology is committed to conducting its business in a sustainable PDQQHUDQGWKLVFRPPLWPHQWLVUHȵHFWHG in how it interacts with customers, suppliers, employees and the communities in which it operates. In common with the rest of the DCC Group, the business has processes to assess and control health and safety risks and aims to provide the best possible working environment for its employees.
DCC Technology is an active participant in the DCC Graduate Programme. The business also operates a wide variety of employee training programmes within individual businesses to promote the RQJRLQJGHYHORSPHQWRIVWD(PSOR\HH training encompasses both personal GHYHORSPHQWDQGWDVNVSHFLȴFWUDLQLQJ in addition to formal training for personnel in areas such as health & safety, risk and compliance. The business undertakes regular employee surveys and responds to the results of these surveys where required.
Exertis in the UK has always maintained a top class logistics capability. The EXVLQHVVKDVH[SHULHQFHGVLJQLȴFDQW volume growth in recent years and this has necessitated an incremental extension of its logistics footprint to the point where the business currently operates from six warehouses. It is now undertaking a project to consolidate its warehousing operations into a single National Distribution Centre ('NDC') in Lancashire. The NDC will have a gross ȵRRUDUHDRIVTXDUHIHHWZLWK an option to build an extra 200,000 square feet) and will have capacity for over 65,000 pallets, representing a 50% increase in current capacity.
This investment is required in order to support the continued strong growth of the business by providing extra capacity. In addition, it is expected to increase HɝFLHQF\E\ORZHULQJWKHRYHUDOOFRVW to serve as well as supporting the LQFUHDVLQJGHPDQGIRUȵH[LEOHGHOLYHU\ VROXWLRQVVXFKDVVLQJOHHQGXVHUIXOȴOPHQW The NDC is expected to come on stream in 2017.
DCC Technology faces a number of strategic, operational, compliance and ȴQDQFLDOULVNV7KHEXVLQHVVZRUNVZLWKD broad range of suppliers and customers with whom we have built excellent trading relationships. However, the business ZRXOGEHVLJQLȴFDQWO\LPSDFWHGE\WKH loss of a small number of key suppliers or customers.
DCC Technology is undertaking a VLJQLȴFDQWSURMHFWWRXSJUDGHLWV8. warehousing and IT system, involving gross capital expenditure of c. £60 million. While this transition will be undertaken on a phased basis to reduce risk, risks remain that the project is not carried out on time, on budget or that the operations of the business are adversely impacted by the project.
The division recently appointed a Head of Legal & Compliance to manage and support the extensive compliance structures already in place to ensure that the increasingly complex regulatory environment is fully understood and complied with on an ongoing basis.
Managing the potential risk of stock obsolescence is a critical success factor in the day to day operations of the business given the diverse product and supplier SRUWIROLR7KHOHQJWKDQGVLJQLȴFDQFHRI our relationships with our suppliers and the existence of formal contractual stock rotation and price protection provisions with the vast majority of our suppliers assist in mitigating this risk.
DCC Technology achieved a satisfactory UHVXOWZLWKRSHUDWLQJSURȴWLQFUHDVLQJE\ 3.7% on a constant currency basis. The business recorded strong growth in its &RQWLQHQWDO(XURSHDQDQG6XSSO\&KDLQ 6HUYLFHVEXVLQHVVHVDQGJRRGJURZWK in its UK & Ireland reseller customer channel. This strong performance was ODUJHO\RVHWE\WKHLPSDFWRIDZHDNHU market for tablets and mobile phones in the UK, following a very strong prior year.
Exertis UK & Ireland achieved strong growth across its UK reseller customer channel driven by sales of technical and specialist products, such as servers, storage, networking and security. This was RVHWE\DGHFOLQHLQVDOHVLQWRWKHUHWDLO channel, primarily driven by lower sales of tablets and smartphones, particularly in the second half. The UK business was impacted by the fall in the overall tablet market, which declined by 17% in 2014, and reduced sales of mobile computing and communications products of one large supplier in the second half of the ȴQDQFLDO\HDU*RRGJURZWKZDVDFKLHYHG in gaming products as the business EHQHȴWHGIURPWKHȴUVWIXOO\HDURIWKH latest generation of gaming consoles, which were launched in advance of Christmas 2013. The Irish business EHQHȴWHGIURPJURZWKLQLWVUHVHOOHU business and good cost control. Exertis UK & Ireland now accounts for 79% of revenue of the division. In May 2015, DCC Technology acquired Computers Unlimited ('CU'), a consumer technology
distributor, operating primarily in the UK but also with operations in France and 6SDLQ7KHEXVLQHVVLVIRFXVHGRQWKH 'Connected Home' and professional design market and distributes a range of products that are complementary to those distributed by Exertis, including design software, printers, accessories and premium audio systems.
Following the successful rebranding of all of the businesses within DCC Technology to Exertis in the prior year, the business is in the process of upgrading its logistics and IT infrastructure in the UK. This SURMHFWZLOODGGVLJQLȴFDQWZDUHKRXVH FDSDFLW\LPSURYHHɝFLHQF\DQGHQDEOH Exertis UK to continue to expand its SURGXFWDQGVHUYLFHRHULQJ
Exertis Continental Europe, which accounts for 14% of divisional revenue, achieved very strong growth. The business made further progress in expanding its geographic coverage, in line with its strategic objectives, by acquiring CapTech, the third ODUJHVWΖ7GLVWULEXWRULQ6ZHGHQ7KLV acquisition will provide the foundation for the development of a more broadly based business in the Nordic region. In France the business generated strong organic JURZWKEHQHȴWWLQJIURPWKHLQWURGXFWLRQ of a number of new suppliers and good cost management.
Exertis UK & Ireland achieved strong growth across its UK reseller customer channel driven by sales of technical and specialist products, such as servers, storage, networking and security.
DCC Technology seeks DCC Technology KPIs to provide an excellent standard of customer service combining an extensive range of services with a commitment to identify the most cost effective and flexible solutions to our customers' requirements.
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DCC Technology has strong market SRVLWLRQVDQGLQGXVWU\OHDGLQJLQWHJUDWHG VHUYLFHRHULQJV7KHLQYHVWPHQWVEHLQJ XQGHUWDNHQZLOOGULYHHɝFLHQFLHVDQG enable further development of its service propositions, leaving the business well SODFHGWRFRQWLQXHWREHQHȴWIURPWKH product innovations of its suppliers and the expansion of sales channels for technology products.
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Strategic Report
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DCC Healthcare is a leading provider of healthcare products and services to the British, Irish and Continental European markets. The business is focused on the sales, marketing and distribution of pharmaceuticals and medical devices to hospitals, pharmacies, GPs and other healthcare providers in Britain and Ireland and on the provision of contract manufacturing and related services to the European health and beauty sector.
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Broad range of own and third party brand/licence pharmaceuticals and medical devices.
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DCC Vital sells, markets and distributes a broad range of own and third party branded pharmaceuticals and medical devices to hospitals, pharmacies, GPs and other healthcare providers in Britain and Ireland.
DCC Vital's pharmaceutical portfolio comprises solid dose, injectable and inhaler products across a range of therapy areas including oncology, beta lactam and other antibiotics, anaesthesia, pain management, haematology, respiratory, addiction and emergency medicine. DCC Vital is the product licence holder for almost half of its pharma revenues. The business works with leading branded, generic and contract manufacturing pharma companies such as Actavis, Cipla, Fresenius Kabi, Grifols, Hikma, Martindale Pharma, Rosemont and Teva. Following on from the acquisitions of Kent Pharma and Neolab in recent years, DCC Vital's pharma portfolio was further strengthened in November with the acquisition of Beacon Pharmaceuticals, a niche pharma business which markets and sells its own licensed and third party pharma products primarily to the hospital sector in the UK. The business has been fully integrated into DCC Vital's existing UK pharma operations.
DCC Vital sells and markets a broad range of medical devices and consumables in areas such as wound care, urology, procedure packs, critical care (anaesthesia, endovascular, cardiology, and IV access), diagnostics, orthopaedics, neurology as well as the full range of consumables and equipment used by GPs. Products are typically single use LQQDWXUH6DOHVRIFDSLWDOHTXLSPHQW represents a small element of total sales and typically relates to generating sales of consumable products, for example the sale (or placing) of diagnostic testing equipment in order to drive sales of the consumable test kits used with the equipment. DCC Vital represents leading medical, surgical and diagnostics brands including BioRad, Carefusion, Diagnostica 6WDJRΖ&80HGLFDO0¸OQO\FNH2PURQ 2[RLG5RFKH6LHPHQVDQG6PLWKV0HGLFDO 6DOHVRIRZQEUDQGPHGLFDOSURGXFWVQRZ account for approximately one third of DCC Vital's medical devices revenues.
DCC Vital is also a leading provider of value added logistics services in Britain, providing innovative stock management and distribution services to hospitals and healthcare brand owners/manufacturers, focused principally on the operating theatre.
DCC Vital has the most comprehensive sales channel coverage in the British and Irish healthcare markets selling into the hospital, retail pharmacy, GP and community care channels. The acquisition RI:LOOLDPV0HGLFDO6XSSOLHVLQ0D\ ZDVDVLJQLȴFDQWIXUWKHUVWHSLQ broadening DCC Vital's market coverage, enabling a holistic approach to addressing WKHUHTXLUHPHQWVRIWKH+HDOWKDQG6RFLDO Care sector. Williams is the market leader in the supply of medical consumables, equipment and services to GPs in Britain and has a growing presence in the developing community healthcare sector. Williams services its customer base of more than 10,000 GP surgeries and other healthcare providers through a highly HHFWLYHWHOHVDOHVDQGHFRPPHUFHEDVHG customer contact centre in Wales in DGGLWLRQWRȴHOGEDVHGHQJLQHHUVDQGNH\ account managers.
'&&9LWDOKDVDȴHOGVDOHVIRUFHRI highly trained sales and marketing professionals who have strong relationships with senior management, clinicians and procurement professionals LQWKHSXEOLFKHDOWKFDUHVHFWRU1+6LQ %ULWDLQDQG+6(LQΖUHODQG PDMRUDQG regional pharmacy wholesale/retail groups and private healthcare providers. Leveraging the strength of its customer and supplier relationships and the breadth and quality of its product portfolio, in tandem with targeted
acquisition activity, DCC Vital has built strong market positions including leadership positions in GP supplies, beta lactam antibiotics, electrodes and diathermy consumables in Britain and hospital supplies in Ireland.
DCC Vital principally operates in sectors of the healthcare market which are government funded. Fiscal budgets in Britain and Ireland have been severely restricted over the last number of years and, in common with the majority of developed economies, the burden of care, particularly to support ageing populations, is growing. Healthcare providers are focused on cost saving opportunities and value for money. Public healthcare policy makers are increasingly focusing on shifting the point of care to WKHPRVWFRVWHHFWLYHORFDWLRQZKLFKLV typically away from expensive acute care settings to primary and community care settings. In addition, healthcare payers and providers are seeking to leverage their procurement scale through increased use of tendering, framework agreements and reference pricing. They are switching to equivalent quality, lower cost medical devices and generic pharmaceuticals as well as outsourcing DFWLYLWLHVGHHPHGWREHQRQFRUH'&& 9LWDOLVYHU\ZHOOSODFHGWREHQHȴWIURP these trends.
Competitors in this market sector include global healthcare companies as well as a large number of smaller pharmaceutical, medical and surgical manufacturers and GLVWULEXWRUV&RPSHWLWRUVLQWKHYDOXH added distribution sector in Britain LQFOXGH1+66XSSO\&KDLQRSHUDWHGE\ DHL Logistics) and Bunzl plc.
7KHDFTXLVLWLRQRI:LOOLDPV0HGLFDO6XSSOLHV in May 2014 was a significant further step in broadening out DCC Vital's market coverage, enabling a holistic approach to addressing WKHUHTXLUHPHQWVRIWKH+HDOWKDQG6RFLDO Care sector.
DCC Health & Beauty 6ROXWLRQVKDVEXLOWD reputation for providing a highly responsive and flexible service to its customers and for assisting customers in rapidly bringing new products from marketing concept WKURXJKWRILQLVKHGVKHOI ready products.
'&&+HDOWK %HDXW\6ROXWLRQVLVRQH of Europe's leading outsourced contract manufacturing service providers to the health and beauty sector with a broad customer base of international and local brand owners, direct sales companies and specialist retailers. DCC Health & %HDXW\6ROXWLRQVȇUDQJHRIRXWVRXUFHG services is focused principally on the areas of nutrition (vitamins and health supplements) and beauty products (skin care, hair care, bath and body). The VHUYLFHRHULQJHQFRPSDVVHVSURGXFW development, formulation, stability and other testing and regulatory compliance, as well as manufacturing and packing. '&&+HDOWK %HDXW\6ROXWLRQVRSHUDWHV four GMP (Good Manufacturing Practice) facilities in Britain, each of which is approved and licenced by the MHRA (Medicines and Healthcare Products Regulatory Agency). The business contract manufactures a wide variety of product formats (tablets, soft gel and hard shell capsules, creams and liquids). '&&+HDOWK %HDXW\6ROXWLRQVKDVEXLOW a reputation for providing a highly UHVSRQVLYHDQGȵH[LEOHVHUYLFHWRLWV customers and for assisting customers in rapidly bringing new products from PDUNHWLQJFRQFHSWWKURXJKWRȴQLVKHG VKHOIUHDG\SURGXFWV7KHEXVLQHVVKDV a strong market share in Britain and 6FDQGLQDYLDDQGLVEXLOGLQJPDUNHWVKDUH in Continental Europe, especially in Benelux, Germany and Poland.
The market background for DCC Health %HDXW\6ROXWLRQVLVYHU\SRVLWLYH Consumer demand for nutrition and beauty products has been robust through the economic downturn with continued demand for product innovation. The trend for health and beauty brand owners to outsource QRQVDOHVDQGPDUNHWLQJDFWLYLWLHV (including product development) and to streamline their supply chains is a critical factor in driving demand in the contract manufacturing sector. There is also a general trend towards increased regulation in the health and beauty sector in Europe and to higher manufacturing standards. These trends are favouring ZHOOIXQGHGFRQWUDFWPDQXIDFWXUHUVOLNH '&&+HDOWK %HDXW\6ROXWLRQVZKLFK has the resources to invest in regulatory expertise and high quality facilities. Our main competitors include Catalent, Aenova, Brunel Healthcare and Ayanda in QXWULWLRQDQG/)%HDXW\DQG6ZDOORZȴHOG in creams/liquids.
Building on expertise and relationships in its Irish business and driven by good organic and acquisitive development in recent years, particularly the acquisition of Kent Pharmaceuticals in 2013, DCC Healthcare established a leading position in generic pharmaceuticals in Britain. Our business markets, sells and distributes a broad range of primarily own licence pharma products across all channels to market in Britain, supported by a strong regulatory and operational infrastructure.
A key element of DCC Healthcare's strategy in the pharma sector has been to identify and acquire complementary EROWRQSURGXFWVDQGEXVLQHVVHV'&& Healthcare had tracked the progress of Beacon Pharmaceuticals ('Beacon'), a niche pharma business, over a number of years. Its focus on own and third party licensed hospital injectables sourced from a range of European manufacturers DQGVROGSULPDULO\WKURXJK1+6FRQWUDFWV ZDVDQH[FHOOHQWVWUDWHJLFȴWZLWK'&& Healthcare's existing British pharma activities, which included growing sales of hospital injectables.
In November 2014, DCC Healthcare acquired Beacon and the strength of DCC's infrastructure meant the business was integrated quickly post acquisition without additional overhead. DCC +HDOWKFDUHQRZKDVDVLJQLȴFDQWO\ enhanced presence in the hospital sector with a more comprehensive SURGXFWRHULQJDQGDODUJHUVXSSOLHU base, making it a more attractive partner IRUERWKWKH1+6DQGPDQXIDFWXUHUV
DCC Healthcare's vision is to build a substantial European healthcare business focused on the sales, marketing and distribution of pharmaceuticals and medical devices and the provision of contract manufacturing and related services for the health and beauty sector. DCC Healthcare seeks to drive continued VWURQJSURȴWJURZWKLQWDQGHPZLWK returns on capital well above the DCC Group's cost of capital.
DCC Vital has a very strong track record of growth, having more than doubled the scale of its business (measured by UHYHQXHVSURȴWVDQGHPSOR\HHV RYHU WKHODVWȴYH\HDUV7KLVZDVDFKLHYHG against a backdrop of challenging market conditions in the public healthcare sector in both Britain and Ireland which reduced organic growth opportunities. Targeted acquisition activity, with strong valuation discipline and integration execution, KDVUHVXOWHGLQDVLJQLȴFDQWH[SDQVLRQ of DCC Vital's market coverage in Britain, a broader product portfolio, particularly in the pharma area, together with strong SURȴWJURZWKDQGUHWXUQVRQFDSLWDO
DCC Vital aims to continue this track record of growth through:
with the general market trend to shift WKHSRLQWRIFDUHWRPRUHFRVWHHFWLYH primary and community care settings; and
– Expanding its market reach into Continental Europe, particularly Northern European markets, both organically and by acquisition.
DCC Vital has a strong regulatory capability in the pharma area including SURGXFWLQOLFHQVLQJTXDOLW\FRQWURO and assurance and pharmacovigilance. This capability, together with strength in product sourcing and the uniformity of European Union product licensing regulations, will open up opportunities for the business to extend its pharma activities into new geographic markets over the coming years. The medical devices market is becoming increasingly SRODULVHGEHWZHHQKLJKWHFKSURGXFWV in specialist therapy areas and value for money commodity products. DCC Vital seeks to attract quality specialist agencies while also selectively launching products under its own brands.
'&&+HDOWK %HDXW\6ROXWLRQVKDV an excellent track record of growth, the vast majority of which has been organically driven. The scale of the EXVLQHVVKDVLQFUHDVHGVLJQLȴFDQWO\ RYHUWKHODVWȴYH\HDUVȂVDOHVKDYH increased by a compound annual growth rate of approximately 20% – such that '&&+HDOWK %HDXW\6ROXWLRQVLVQRZ one of Europe's leading outsourced service providers to the health and beauty sector.
'&&+HDOWK %HDXW\6ROXWLRQVDLPV to continue this track record through:
Our high quality facilities, together with the strength and depth of our business development, product development and technical resources, has enabled '&&+HDOWK %HDXW\6ROXWLRQVWREXLOG a reputation for providing a highly UHVSRQVLYHDQGȵH[LEOHVHUYLFHWRLWV customers and for assisting customers in rapidly bringing new products from PDUNHWLQJFRQFHSWWKURXJKWRȴQLVKHG VKHOIUHDG\SURGXFWV
* Continuing activities
DCC Healthcare's vision is to build a substantial European healthcare business focused on the sales, marketing and distribution of pharmaceuticals and medical devices and the provision of contract manufacturing and related services for the health and beauty sector.
DCC Vital services approximately 15,000 customers across all channels to market in Britain and Ireland (public and private hospitals, procurement groups, retail pharmacies, pharma wholesalers, community healthcare providers and GPs) as well as international distributors. '&&9LWDOKDVVLJQLȴFDQWO\HQKDQFHGLWV market coverage in recent years, in particular through the acquisitions of :LOOLDPV0HGLFDO6XSSOLHVDFTXLUHGLQ May 2014), which provided DCC Vital with comprehensive access to GPs, community healthcare providers and dispensing doctors in Britain, and Kent Pharma (acquired in January 2013) which brought strong relationships with the major retail/ wholesale pharma groups, as well as direct reach to independent pharmacies. DCC Vital's market position in the hospital sector was further enhanced in November 2014 with the acquisition of Beacon Pharmaceuticals.
'&&+HDOWK %HDXW\6ROXWLRQVSULQFLSDOO\ focuses on providing services to a broad customer base of international and local brand owners, direct sales companies and specialist retailers in the areas of nutrition and beauty products. DCC works with leading brand owners such DV/L](DUOH0HUFN2PHJD3KDUPD3= Beauty, Ren and Vitabiotics; direct selling FRPSDQLHVVXFKDV2ULȵDPH1DWXUHȇV Best and Healthspan; specialist health and beauty retailers such as Apotheket, 7KH%RG\6KRS%RRWVDQG+ROODQG Barrett and pharma companies such as Actavis, Alliance Pharma, Astellas 3KDUPDDQG6WDGD'&&+HDOWK %HDXW\ 6ROXWLRQVKDVEHHQLQYHVWLQJWRDFFHOHUDWH the geographic expansion of the customer base and today more than half of the output from our facilities is consumed in international markets outside of Britain.
DCC Healthcare has a broad customer base and its ten largest customers account for approximately 26% of revenue in the year ended 31 March 2015.
DCC Vital works with leading innovative and generic pharma companies like Cipla, Fresenius Kabi, Grifols, Hikma, Martindale Pharma and Rosemont. The business also operates its own specialist manufacturing plant for beta lactam antibiotics in Ireland servicing customers in Britain, Ireland and international markets. DCC Vital represents leading medical, surgical and diagnostics device brands including %LR5DG&DUHIXVLRQ'LDJQRVWLFD6WDJR Ζ&80HGLFDO0¸OQO\FNH2PURQ2[RLG 5RFKH6LHPHQVDQG6PLWKV0HGLFDO
'&&+HDOWK %HDXW\6ROXWLRQVVRXUFHV from high quality raw materials and ingredient suppliers across the globe in order to provide customers with high TXDOLW\DQGFRVWHHFWLYHVROXWLRQV with an increasing focus on sourcing VXVWDLQDELOLW\FHUWLȴHGUDZPDWHULDOV VXFKDVȴVKRLOV
DCC Healthcare's supplier portfolio is broadly based with the top ten suppliers representing approximately 25% of revenue in the year ended 31 March 2015.
DCC Healthcare employs 1,980 people, principally based in Britain and Ireland, led by strong, entrepreneurial management teams. Training and education is critical in the healthcare sector and DCC Healthcare continually invests in ensuring that our people are experts in their respective product or service areas and are fully conversant with the relevant regulatory frameworks within which the business operates. DCC Healthcare continues to EHQHȴWIURPDVWURQJFRPPLWPHQWWRWKH DCC Graduate Programme.
Continuous improvement in our (QYLURQPHQWDO+HDOWK 6DIHW\Ȇ(+6ȇ performance is a key priority within DCC Healthcare. DCC Healthcare is investing to enhance and, where appropriate, VWDQGDUGLVH(+6DQGTXDOLW\V\VWHPV across the business, including rolling out a common safety awareness and culture programme which leverages the VXFFHVVRIWKH6DIHW)UVWSURJUDPPH in DCC Energy.
DCC Healthcare operates in geographic markets where healthcare spending is predominantly funded (directly or indirectly) by governments. Our competitive product portfolio, strength in generics, growing range of value for money own brand SURGXFWVDQGRXWVRXUFHGVHUYLFHRHULQJ is providing new growth opportunities and has helped in mitigating the impact of the economic downturn experienced over the last number of years and the UHVXOWLQJȴVFDOSUHVVXUHVRQJRYHUQPHQWVȇ healthcare budgets. We are committed to working closely with our suppliers DQGFXVWRPHUVWRȴQGLQQRYDWLYH FRVWHHFWLYHVROXWLRQVWRDGGUHVVWKH FKDOOHQJHVRIIXWXUHFDSDFLW\DQGȴQDQFLDO constraints in the acute care sector.
We continually invest in technical and regulatory resources, quality systems, VWDWUDLQLQJDQGIDFLOLWLHVWRHQVXUH quality standards are consistently maintained and the requirements of the relevant regulatory authorities are met or surpassed. All our manufacturing sites are licensed and subject to ongoing regular internal and external third party audit reviews.
DCC Healthcare trades with a very broad supplier and customer base and our constant focus on providing a value added service ensures excellent commercial relationships. Recent acquisitions such DV:LOOLDPV0HGLFDO6XSSOLHVDQG%HDFRQ Pharmaceuticals have introduced new supplier relationships, an extended product portfolio and expanded customer reach. In the case of a very small number of key suppliers, principals and customers, their loss could have a serious operational DQGȴQDQFLDOLPSDFWRQWKHEXVLQHVV
DCC Healthcare continues to be focused on improving the environmental sustainability of its businesses and range of products and services. Many of our customers monitor our progress in this area and are keen to see their business and brands share in the successes we have been able to deliver on the sustainability agenda. In the last year, '&&+HDOWK %HDXW\6ROXWLRQVKDV installed a solar renewable energy system at one of its manufacturing sites generating 225MWh of electricity, which will reduce carbon emissions by 170 tonnes per annum. The capital investment plan for this site provides for the installation of two wind turbines in the coming year which will further HQKDQFHWKHRSHUDWLQJHɝFLHQF\DQG environmental credentials of the site. The business is also progressing a number of other energy management initiatives which are delivering reductions in carbon emissions, energy use and costs. Our contract manufacturing business continues to enhance its procurement capability in the area of sustainable ingredients and now also sources glycerol from sustainable palm oil and has received accreditation on the traceability and VXVWDLQDEOHVRXUFLQJRIFHUWDLQȴVKRLOV
DCC Healthcare had another excellent \HDUJURZLQJLWVRSHUDWLQJSURȴWE\ (40.4% excluding Virtus Inc. which was disposed of in March 2014), approximately one quarter of which was organic. The business also increased its return on FDSLWDOHPSOR\HGDQGVLJQLȴFDQWO\ enhanced its market position and scale WKURXJKIXUWKHUEROWRQDFTXLVLWLRQ activity and the successful integration of recent acquisitions.
DCC Vital recorded strong operating SURȴWJURZWKGULYHQE\DFTXLVLWLRQVPDGH in the current and prior year and good organic growth. Williams Medical , which ZDVDFTXLUHGLQ0D\JUHZLWVSURȴWV in line with expectations. This acquisition has given DCC Vital market leadership in the supply of medical devices, pharmaceuticals and related services to GP surgeries in Britain, as well as a growing business in supplying healthcare providers in the evolving community and domiciliary care sectors. DCC Vital now RHUVFRPSUHKHQVLYHFRYHUDJHDFURVV all sales channels in Britain and is well SRVLWLRQHGWREHQHȴWIURPJRYHUQPHQW health and social care policies which are focused on shifting the point of care to WKHPRVWFRVWHHFWLYHORFDWLRQW\SLFDOO\ away from acute care settings to primary and community care settings.
DCC Vital now offers comprehensive coverage across all sales channels in Britain and is well positioned to benefit from government health and social care policies which are focused on shifting the point of care to the most cost effective location, typically away from acute care settings to primary and community care settings.
DCC Vital recorded particularly good organic growth in hospital injectable pharmaceuticals, an area that was further enhanced by the acquisition of Beacon Pharmaceuticals in November 2014. Good growth was also achieved in medical devices including electrodes, diathermy consumables, anaesthesia products and gloves.
'&&+HDOWK %HDXW\6ROXWLRQVJHQHUDWHG H[FHOOHQWRUJDQLFRSHUDWLQJSURȴWJURZWK driven by integration synergies, margin improvement, good cost control and also EHQHȴWHGIURPDIXOO\HDUFRQWULEXWLRQ from UPL, acquired in January 2014. The business is leveraging its increased market presence in the beauty area and its enhanced capability in the manufacturing of creams and liquids. 7KH6ZHGLVKWDEOHWPDQXIDFWXULQJ operations have now been fully integrated into the larger tablet manufacturing facility in Britain with sales and regulatory SHUVRQQHOUHWDLQHGLQ6ZHGHQWRIRFXV on business development in the Nordic UHJLRQ'&&+HDOWK %HDXW\6ROXWLRQV seeks to focus its resources on developing and manufacturing more complex, higher added value products on behalf of its customers. The business made good progress in this regard during the year which enabled it to improve its sales mix, particularly in nutritional soft gel capsules, and achieve higher margins.
DCC Healthcare remains well placed to continue the strong record of growth and development across its business.
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Financial Statements
DCC Environmental is a leading British and Irish provider of recycling, waste management and resource recovery services to the industrial, commercial, construction and public sectors, RSHUDWLQJLQERWKWKHQRQ hazardous and hazardous segments of the market.
This year DCC Environmental handled approximately 1.9 million tonnes of waste through its twenty one facilities in Britain and Ireland.
Commercial and industrial waste
Construction and demolition waste
DCC Environmental's activities External activities
5HYHQXH eP
S9.9%
2SHUDWLQJSURILW eP S13.2%
Enva*, Wastecycle*, William Tracey*, Oakwood*.
* DCC owned brands
Clear understanding of customers requirements.
Provider of innovative solutions for customers.
Respond quickly to opportunities arising from new regulations.
Absolute focus on recycling/recovery without the distraction of legacy ODQGȴOODVVHWV
DCC Environmental is a market leader LQQRQKD]DUGRXVZDVWHPDQDJHPHQW LQERWK6FRWODQGDQGWKH(DVW0LGODQGV ΖQ6FRWODQGRSHUDWLQJXQGHUWKH:LOOLDP Tracey brand, DCC Environmental operates a comprehensive recycling infrastructure across the central belt, including one of the largest material recycling facilities in Britain in Linwood, close to Glasgow airport. In the East Midlands, operating under the Wastecycle brand, DCC Environmental operates three material recycling facilities in Nottingham and Leicester along with a civic amenity site on behalf of Nottingham City Council. These facilities process waste, collected by both company owned and third party vehicles, into valuable commodities which can be used as a substitute for virgin materials. Both companies produce a fuel, from waste unsuitable for recycling, which is used in Continental European energy from waste facilities and, in addition, in the East Midlands, DCC Environmental has the added capacity to process material into a fuel which is used by the British cement industry.
In hazardous waste management, also operating under the William Tracey brand, DCC Environmental is a market leader LQ6FRWODQGDQGWKHQRUWKRI(QJODQG with three dedicated facilities providing a wide range of treatment solutions for hazardous waste. In addition, operating under the Oakwood Fuels brand, DCC Environmental is a leading national collector of waste oils. These oils are transported to Oakwood's facility in Nottingham, where some are converted into a fuel which can be used as a substitute for heavy fuel oil and the remainder is H[SRUWHGWRUHȴQHULHVLQ&RQWLQHQWDO Europe which process the oils into base oil which can be used to produce lubricating oil.
DCC Environmental is constantly seeking to provide new innovative solutions to waste management, extracting greater value from material historically discarded, and thereby assisting in the development of a more sustainable circular economy. One such example is the treatment of ash from industrial kilns to create valuable products rather than simply sending LWWRODQGȴOO
Overall, the British business handles 1.7 million tonnes of material, the majority RIZKLFKLVFROOHFWHGE\RXURZQȵHHW of 227 vehicles, and 78% of all waste YROXPHVDUHGLYHUWHGIURPODQGȴOO
DCC Environmental is leading the way LQGLYHUWLQJZDVWHIURPODQGȴOODVLWVHQGV fuels produced from waste to Continental European energy from waste plants and British cement kilns. As additional British energy from waste capacity is developed, it is envisaged that the material currently being exported to Continental Europe will be diverted to a new indigenous infrastructure.
The improved economic backdrop has resulted in greater demand for waste services across the spectrum of services provided, particularly from the construction sector. Certain recycling activities, such as the treatment of local authority comingled waste, have seen excess capacity being removed from the market in recent times which has resulted in a more appropriate supply and demand balance. Excess capacity remains a feature of the waste oil collection market although some recent industry consolidation may help to address the issue. Recyclate prices have fallen in line with oil prices which has resulted in less value being derived from recycling.
New waste regulations in England requiring the separate collection of paper, SODVWLFPHWDODQGJODVVFDPHLQWRHHFW from 1 January 2015 following similar requirements being introduced in 6FRWODQGLQWKHSUHYLRXV\HDU7KHVH new regulations have coincided with DCC Environmental introducing new technology which allows for the tracking of material from the point of collection through to sale in local or international markets and also allows customers and regulators alike to understand both the volume and quality of material being produced. In addition the new systems ZLOODOORZIRUDVLJQLȴFDQWLPSURYHPHQWLQ the customer experience through sharing information via dedicated extranets or portals and providing customers with access to recycling rates or service levels.
Operating under the Enva brand, DCC Environmental's Irish business is recognised as Ireland's leading hazardous waste treatment company. Enva operates from six EPA/NIEA licensed sites in both the Republic of Ireland and Northern ΖUHODQGRHULQJWHFKQLFDOO\LQQRYDWLYH solutions to a wide range of waste streams for both multinational and LQGLJHQRXVFOLHQWVΖWKDVDQLQKRXVH infrastructure to treat a broad range of materials including waste oil, contaminated soils, bulk chemicals and contaminated packaging. In cases where it is unable to treat the waste itself, it has relationships with a network of European based companies to provide a range of solutions for hazardous waste which are not available in Ireland. Enva's water treatment division provides specialised chemicals, equipment and professional services to the drinking, industrial and waste water sectors. The division RSHUDWHVDQLQKRXVHPDQXIDFWXULQJ facility as well as a fully accredited laboratory to support these services.
)ROORZLQJDQXPEHURIYHU\GLɝFXOW\HDUV the Irish environmental sector is now HPHUJLQJIURPUHFHVVLRQEHQHȴWLQJ from the recovery evident in the wider economy. DCC Environmental's Irish business is now seeing the impact of the recovery which includes multinational customers announcing major investments in their Irish facilities and DUHWXUQRIFRQȴGHQFHLQWKHLQGLJHQRXV customer base. The business is ensuring that cost competitive gains obtained in recent years are retained and indeed built on and, as part of this process, some support functions are, where appropriate, being more closely aligned with other DCC companies.
The new systems will allow for a significant improvement in the customer experience through sharing information via dedicated extranets or portals and providing customers with access to recycling rates or service levels.
DCC Environmental's strategy is to grow as a leading broadly based waste management and recycling business in Britain and Ireland by positioning itself to take advantage of the trend towards more sustainable waste management, with a particular emphasis on resource recovery and recycling.
DCC Environmental will ensure that it harnesses the opportunities arising from the recovery in the economies it operates in. The strategy includes delivering VXSHULRUYDOXHDGGLQJVHUYLFHVWRDOOLWV customers through a deep understanding of their requirements and the development of innovative solutions. Furthermore, DCC Environmental is aligning its business to support the transition to both a low carbon economy and the emerging circular economy through a focus on resource rather than waste, developing internal climate change expertise and continually improving its recycling capability.
DCC Environmental provides recycling, waste management and resource recovery services to the industrial and commercial, construction and public sectors.
The customer base is quite fragmented, with the ten largest customers accounting for approximately 25% of total revenue in the year ended 31 March 2015. Many of the customers have been with DCC Environmental for a long time, in some cases over 30 years, and the business has developed a clear understanding of their requirements.
Industrial kilns such as those at paper mills and energy from waste plants use lime to ensure emissions meet UHJXODWRU\VWDQGDUGV\$E\SURGXFWRI the process is that an ash is produced which contains a high concentration of lime. Historically this ash was treated DQGWKHQGLVSRVHGRIWRODQGȴOO7UDFH\ have developed a new infrastructure, unique to Britain, which is allowing the lime, a valuable commodity, to be
recovered and used as substitute for virgin lime. In addition, once the lime is extracted, Tracey are now producing concrete blocks from the remaining ash, again reducing society's consumption of virgin material. This represents a good example of the new 'circular economy' in action.
DCC Environmental's management have deep industry knowledge with a number of the former owners of the businesses still with the Group. Each company seeks to develop their employees as illustrated by a policy of promoting from within the organisation wherever possible. Employee engagement is critical and employee surveys are regularly undertaken.
The businesses constantly strive for excellence in health and safety to ensure that a safe place of work is provided to all employees. The businesses seek to empower employees at all levels within the organisation to take a leadership role from a health and safety perspective. In addition the company actively encourages employees to make suggestions on how the businesses can become even safer and near miss reporting is promoted across the business. It was encouraging to see a decline in the number of lost time incidents in the second half of the year FRPSDUHGWRWKHȴUVWKDOI
DCC Environmental currently employs 1,020 people.
6LPLODUWRDOOEXVLQHVVHVZLWKLQWKH*URXS DCC Environmental faces a number of strategic, operational, compliance and ȴQDQFLDOULVNV
Procedures and safety culture programs are in place to ensure that the risk of accidents, in particular, from the interaction of heavy plant and people is kept to an absolute minimum.
\$FRPELQDWLRQRIJURZWKLQSURȴWDELOLW\ and a disciplined approach to investment LQERWKȴ[HGFDSLWDODQGZRUNLQJFDSLWDO are delivering a gradual improvement in returns to more satisfactory and sustainable levels.
DCC Environmental has enhanced alignment between customer charges or rebates to movements in the underlying commodity value to counteract the exposures from negative movements in both recyclate and oil commodity prices.
The environment is at the core of DCC Environmental's strategy in ensuring that the use of precious resources are reduced and reused. An example is the VLJQLȴFDQWLQFUHDVHGXULQJWKH\HDU in the amount of waste lubricating oil WKDW2DNZRRGH[SRUWHGWRUHȴQHULHV in Continental Europe which process the oil into base oil which can be used to produce new lubricating oil.
During the year there have been a number of routine inspections by environmental regulatory agencies. 1RPDMRUQRQFRQIRUPDQFHVZLWK licensing were recorded and all minor QRQFRQIRUPDQFHVRUREVHUYDWLRQV were actioned as a priority. DCC Environmental's 21 sites continue to maintain excellent or good ratings from their respective regulators.
The businesses constantly strive for excellence in health and safety to ensure that a safe place of work is provided to all employees. The business seeks to empower employees at all levels within the organisation to take a leadership role from a health and safety perspective.
DCC Environmental recorded a strong UHVXOWZLWKRSHUDWLQJSURȴWLQFUHDVLQJE\ 13.2% and an improvement in its return on capital employed.
Despite the impact in the year of sustained weakness in commodity prices, the British business performed strongly. Volumes grew by 18% primarily as a result of increased economic activity, particularly in the industrial and construction sectors, and good new business development initiatives. Underlying margins also improved aided by an increase in the proportion of waste GLYHUWHGIURPODQGȴOOWKHPRVWH[SHQVLYH and least environmentally sustainable disposal outlet.
2SHUDWLQJSURȴWDOVRLQFUHDVHGLQΖUHODQG The business successfully expanded its range of services, particularly to the waste water treatment sector. In addition, WKHEXVLQHVVEHQHȴWHGIURPJRRGFRVW management and its continuing focus on RSHUDWLRQDOHɝFLHQF\
Revenue growth
6WUDWHJLFREMHFWLYH Drive for enhanced operational performance
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6WUDWHJLFREMHFWLYH Drive for enhanced operational performance
eP S13.2%
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Grow operating margin
10 year operating profit CAGR
Return on capital employed
6WUDWHJLFREMHFWLYH Deliver superior shareholder returns
6WUDWHJLFREMHFWLYH Deliver superior shareholder returns
*HQHUDWHFDVKȵRZVWRIXQG organic and acquisition growth and dividends
)HUJDO2ȇ'Z\HU &KLHI)LQDQFLDO2ɝFHU We are very pleased with the overall performance of the Group in terms RIRSHUDWLQJSURȴWJURZWKFDVKȵRZ conversion and working capital management, improvements in returns RQFDSLWDOHPSOR\HGDQGWKHVLJQLȴFDQW level of development activity.
The Group's long term track record of strong cash generation has enabled it to pay a growing dividend for the past 21 years and to support its growth and development strategy by making acquisitions and reinvesting in its businesses.
This Financial Review provides an overview RIWKH*URXSȇVȴQDQFLDOSHUIRUPDQFHIRU the year ended 31 March 2015 and of the *URXSȇVȴQDQFLDOSRVLWLRQDWWKDWGDWH
eȇP |
2014 eȇP |
prior year % |
|
|---|---|---|---|
| 5HYHQXHȂFRQWLQXLQJ | 11,044.8 | ||
| 2SHUDWLQJSURȴW | |||
| DCC Energy | 110.5 | +8.1% | |
| DCC Technology | 48.1 | +2.6% | |
| DCC Healthcare | 30.4 | +30.6% | |
| DCC Environmental | 11.7 | +13.2% | |
| *URXSRSHUDWLQJSURȴWȂFRQWLQXLQJ | 200.7 | +10.5% | |
| Discontinued activities – DCC Food & Beverage | 6.6 | ||
| *URXSRSHUDWLQJSURȴW | 207.3 | +10.1% | |
| 6KDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWV | 1.0 | ||
| Finance costs (net) | (21.4) | ||
| 3URȴWEHIRUHH[FHSWLRQDOLWHPVDPRUWLVDWLRQRILQWDQJLEOHDVVHWVDQGWD[ | 186.9 | +6.8% | |
| Amortisation of intangible assets | (20.5) | ||
| Exceptional charge (net) | (15.4) | ||
| 3URȴWEHIRUHWD[ | 151.0 | +8.1% | |
| Taxation | (27.1) | ||
| 1RQFRQWUROOLQJLQWHUHVWV | Ȃ | (2.7) | |
| 1HWHDUQLQJV | 121.2 | +19.1% | |
| \$GMXVWHGHDUQLQJVSHUVKDUHȂWRWDOSHQFH | 191.20 | +9.4% | |
| \$GMXVWHGHDUQLQJVSHUVKDUHȂFRQWLQXLQJSHQFH | 184.09 | +9.8% |
| *URZWK | ||
|---|---|---|
| 2SHUDWLQJSURȴW JURZWK | 11.0% | |
| Volume growth – DCC Energy (%) | 6.1% | |
| Revenue growth – excl. DCC Energy (%) | 22.4% | |
| 2SHUDWLQJSURȴWPDUJLQȂH[FO'&&(QHUJ\ | 3.2% | |
| Adjusted earnings per share growth (%) | 11.7% | |
| 5HWXUQ | ||
| Return on average capital employed (%) | 16.3% | |
| 2SHUDWLQJFDVKȵRZeȇP | 346.9 | |
| Working capital days (days) | (0.6) | |
| Debtor days (days) | 31.4 | |
| )UHHFDVKȵRZEHIRUHLQWHUHVWDQGWD[SD\PHQWV | 277.0 | |
| &RQYHUVLRQRIRSHUDWLQJSURȴWVWRIUHHFDVKȵRZ | 134% | |
| )LQDQFLDO6WUHQJWK/LTXLGLW)LQDQFLDO&DSDFLW\IRU'HYHORSPHQW | ||
| EBIT:net interest (times) | 9.7 | |
| EBITDA:net interest (times) | 12.3 | |
| Cash balances (net of overdrafts) (£'m) | 813.6 | |
| Net cash/(debt) (£'m) | (87.3) | |
| Net debt as a % of total equity (%) | QD | 9.1% |
| Net debt:EBITDA (times) | QD | 0.3 |
* Excluding exceptionals and amortisation of intangible assets
\$OOFRPSDUDWLYHQXPEHUVSUHVHQWHGLQWKLVUHSRUWKDYHEHHQUHVWDWHGWRUHȵHFWWKHLPSDFWRIQHZDFFRXQWLQJUXOHVIRUMRLQWYHQWXUHV
*** Continuing operations i.e. excluding DCC Food & Beverage.
Financial Statements
Change on
Volumes in DCC Energy increased by 5.7% over the prior year and on an organic basis were 1.2% ahead of the prior year. Average temperatures in Britain, DCC Energy's largest market, were in line with the prior year although warmer than the ten year average. Due to the impact of lower oil prices, DCC Energy's revenue declined by 7.5% (5.6% on a constant currency basis).
Revenue from continuing activities, excluding DCC Energy, was up 6.5% (8.4% on a constant currency basis). Approximately a quarter of this growth was organic and was driven by the growth in DCC Technology's Continental (XURSHDQDQG6XSSO\&KDLQDFWLYLWLHVDQG good organic growth in DCC Healthcare.
Overall Group revenue from continuing activities decreased by 4.0% (2.1% on a constant currency basis) to £10.6 billion, UHȵHFWLQJWKHLPSDFWRIORZHURLOSULFHV
*URXSRSHUDWLQJSURȴWIURPFRQWLQXLQJ activities increased by 10.5% to £221.7 million. This growth was impacted by the movement in the rate used for translating WKH*URXSȇVQRQVWHUOLQJGHQRPLQDWHG SURȴWVLQWRVWHUOLQJ7KHDYHUDJHHXUR sterling translation rate for the year ended 31 March 2015 of 0.7890 was 6.5% weaker than the average of 0.8441 in the SULRU\HDU2SHUDWLQJSURȴWJURZWKRQD constant currency basis was 11.9% and approximately one third of this growth was organic.
2SHUDWLQJSURȴWLQ'&&(QHUJ\WKH Group's largest division, was 8.1% ahead of the prior year (10.3% ahead on a constant currency basis). Approximately one third of this growth was organic with WKHEDODQFHIURPDȴUVWWLPHFRQWULEXWLRQ IURP4VWDUWKH6ZHGLVKXQPDQQHG retail business which was acquired in May 2014.
2SHUDWLQJSURȴWLQ'&&7HFKQRORJ\WKH Group's second largest division, was modestly ahead of the prior year (3.7%
ahead on a constant currency basis) with growth from the UK & Ireland reseller FXVWRPHUFKDQQHOWKH6XSSO\&KDLQ business and a strong performance from the Continental European business, which LQFOXGHGDȴUVWWLPHFRQWULEXWLRQIURP CapTech, which was acquired in 6HSWHPEHU7KLVJURZWKZDVODUJHO\ RVHWE\WKHLPSDFWRIDZHDNHUPDUNHW in the UK for tablet and smartphone products, following a particularly strong performance in DCC Technology's UK business in the prior year.
2SHUDWLQJSURȴWLQ'&&+HDOWKFDUHZDV 30.6% ahead of the prior year (40.4% excluding Virtus Inc. which was disposed RILQ0DUFK EHQHȴWWLQJIURPȴUVW time contributions from Williams Medical, acquired in May 2014, and UPL, acquired in January 2014, and also from a very strong organic performance in DCC +HDOWK %HDXW\6ROXWLRQV
2SHUDWLQJSURȴWLQ'&&(QYLURQPHQWDO was 13.2% ahead of the prior year as the recovery in the business continued in Britain and Ireland.
| 2014 | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| H1 | + | )< | H1 | H2 | FY | H1 | H2 | FY | |
| eȇP | eȇP | eȇP | eȇP | eȇP | eȇP | % | % | % | |
| DCC Energy | 4,093.4 | 4,150.3 | 8,243.7 | ||||||
| DCC Technology | 959.2 | 1,304.8 | 2,264.0 | +8.2% | +0.6% | +3.8% | |||
| DCC Healthcare | 195.1 | 211.4 | 406.5 | +21.4% | +18.8% | +20.1% | |||
| DCC Environmental | 64.9 | 65.7 | 130.6 | +13.3% | +6.6% | +9.9% | |||
| 7RWDO | 5,312.6 | 5,732.2 | 11,044.8 | +2.1% | |||||
| Weighting % | 48.1% | 51.9% | 100.0% |
| 2014 | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| H1 | + | )< | H1 | H2 | FY | H1 | H2 | FY | |
| eȇP | eȇP | eȇP | eȇP | eȇP | eȇP | % | % | % | |
| DCC Energy | 33.5 | 77.0 | 110.5 | +13.6% | +8.1% | ||||
| DCC Technology | 14.1 | 34.0 | 48.1 | +7.7% | +0.5% | +2.6% | |||
| DCC Healthcare | 12.6 | 17.8 | 30.4 | +26.7% | +33.3 % | +30.6% | |||
| DCC Environmental | 6.3 | 5.4 | 11.7 | +11.7% | +14.8% | +13.2% | |||
| 7RWDO | 66.5 | 134.2 | 200.7 | +5.4% | +13.0% | +10.5% | |||
| Weighting % | 33.1% | 66.9% | 100.0% |
Although DCC's operating margin on a continuing basis (excluding exceptionals) was 2.1%, compared to 1.8% in 2014, it is important to note that this measurement of the overall Group margin is of limited UHOHYDQFHGXHWRWKHLQȵXHQFHRIFKDQJHV in oil product costs on the percentage. While changes in oil product costs will change percentage operating margins, this has little relevance in the downstream energy market in which DCC Energy RSHUDWHVZKHUHSURȴWDELOLW\LVGULYHQE\ absolute contribution per litre (or tonne) of product sold and not by a percentage margin. Excluding DCC Energy, the operating margin on a continuing basis (excluding exceptionals) for the Group's other divisions was 3.4% compared to 3.2% in 2014.
An analysis of the performance for the ȴUVWKDOIWKHVHFRQGKDOIDQGWKHIXOO\HDU ended 31 March 2015 is set out in Tables 2 and 3.
A detailed review of the operating performance of each of DCC's divisions is set out on pages 26 to 53.
The compound growth rate in DCC's RSHUDWLQJSURȴWVIURPFRQWLQXLQJ operations over the last 21,15,10 and 5 years is as follows:
| CAGR % | |
|---|---|
| 21 years (i.e. since 1994) | 13.8% |
| 15 years (i.e. since 2000) | 13.4% |
| 10 years (i.e. since 2005) | 13.2% |
| 5 years (i.e. since 2010) | 6.9% |
Ζ)56Joint Arrangements has been DGRSWHGDVUHTXLUHGE\Ζ)56IRUWKH\HDU ended 31 March 2015. Whilst the impact on the comparatives is not material, they have been restated accordingly. Further details are set out in note 4 to WKHȴQDQFLDOVWDWHPHQWV
1HWȴQDQFHFRVWVLQFUHDVHGWRe million (2014: £21.4 million) primarily as a result of the incremental interest cost RIWKHDGGLWLRQDO863ULYDWH3ODFHPHQW GHEWGUDZQGRZQLQWKHȴUVWKDOIRIWKH year. Average net debt during the year of £309 million compared to £366 million in the prior year. Interest was covered WLPHVE\*URXSRSHUDWLQJSURȴW before depreciation and amortisation of intangible assets (12.3 times in 2014).
3URȴWEHIRUHQHWH[FHSWLRQDOLWHPV amortisation of intangible assets and tax increased by 6.8% to £199.6 million.
The Group incurred a net exceptional charge of £10.9 million as follows:
eȇP |
|
|---|---|
| Restructuring costs | |
| Acquisition related costs | |
| Mark to market loss | |
| Net gain on disposals | |
| Gain arising on pension curtailments |
|
| Other | |
| 7RWDO | |
eȇP |
2014 eȇP |
Change on prior year |
|
|---|---|---|---|
| Adjusted earnings | 160.2 | +9.7% | |
| Amortisation of intangible assets after tax | (16.3) | ||
| 1RQWUDGLQJLWHPVDIWHUWD[DQGPLQRULW\LQWHUHVWV | (22.7) | ||
| 3URȴWDWWULEXWDEOHWRVKDUHKROGHUV | 121.2 | +19.1% | |
SHQFH |
2014 pence |
Change on prior year |
|
| \$GMXVWHG(36 | 191.20 | +9.4% | |
| Amortisation of intangible assets after tax | (19.38) | ||
| 1RQWUDGLQJLWHPVDIWHUWD[ | (27.12) | ||
| %DVLF(36 | 144.70 | +18.8% |
The Group's long term track record of strong cash generation has enabled it to pay a growing dividend for the past 21 years and to support its growth and development strategy by making acquisitions and reinvesting in its businesses.
The Group incurred an exceptional charge of £23.9 million mainly in relation to restructuring of existing businesses and is inclusive of a goodwill impairment charge of £5.6 million.
Acquisition costs include the professional and tax costs (such as stamp duty) relating to the evaluation and completion of acquisition opportunities. During the year, acquisition and related costs amounted to £3.5 million.
Most of the Group's debt has been raised LQWKH863ULYDWH3ODFHPHQWPDUNHWDQG swapped, using long term interest, currency and cross currency interest UDWHGHULYDWLYHVWRERWKȴ[HGDQGȵRDWLQJ rate sterling and euro. The level of LQHHFWLYHQHVVFDOFXODWHGXQGHUΖ\$6 RQWKHIDLUYDOXHDQGFDVKȵRZKHGJH UHODWLRQVKLSVUHODWLQJWRȴ[HGUDWHGHEW together with gains or losses arising from marking to market swaps not designated DVKHGJHVRVHWE\IRUHLJQH[FKDQJH translation gains or losses on the related ȴ[HGUDWHGHEWLVFKDUJHGRUFUHGLWHG as an exceptional item. In the year ended 31 March 2015 this amounted to an exceptional charge of £2.2 million.
'XULQJWKHVHFRQGKDOIRIWKHȴQDQFLDO year the Group disposed of its Irish Food & Beverage subsidiaries. The aggregate consideration from these disposals was £55.1 million and the disposals generated an exceptional gain, net of disposal costs, of £8.2 million. The remaining small UK ZLQHGLVWULEXWLRQVXEVLGLDU\ZDVFODVVLȴHG as an asset held for sale at the balance sheet date. The sale of the subsidiary was completed on 28 April 2015.
The restructuring of certain of the Group's pension arrangements gave rise to an exceptional gain of £8.7 million.
The balance of the exceptional items relates to a gain arising from the write back of contingent acquisition consideration no longer payable (£1.1 million) and a gain in relation to the Pihsiang legal claim (£0.9 million) where there was further modest cash recovery.
The charge for the amortisation of acquisition related intangible assets increased to £25.4 million from £20.5 PLOOLRQSULQFLSDOO\UHȵHFWLQJDFTXLVLWLRQV completed in the current and prior year.
3URȴWEHIRUHWD[LQFUHDVHGE\WR £163.3 million.
7KHHHFWLYHWD[UDWHIRUWKH*URXS decreased to 12% compared to 14% in the prior year. The decrease is primarily GXHWRWKHPL[RIWD[DEOH*URXSSURȴWV and a reduction in the UK corporation tax rate.
Reported adjusted earnings per share increased by 9.4% to 209.19 pence. On a continuing basis, adjusted earnings per share increased by 9.8% to 202.22 pence.
The compound annual growth rate in DCC's adjusted earnings per share over the last 21,15,10 and 5 years is as follows:
| CAGR % | |
|---|---|
| 21 years (i.e. since 1994) | 12.2% |
| 15 years (i.e. since 2000) | 11.3% |
| 10 years (i.e. since 2005) | 10.3% |
| 5 years (i.e. since 2010) | 5.8% |
The Board is recommending an increase RILQWKHȴQDOGLYLGHQGWR pence per share, which, when added to the interim dividend of 28.73 pence per share, gives a total dividend for the year of 84.54 pence per share. This represents a 10% increase over the total prior year dividend of 76.85 pence per share. The dividend is covered 2.5 times by adjusted earnings per share (2.5 times in 2014). It is SURSRVHGWRSD\WKHȴQDOGLYLGHQGRQ
23 July 2015 to shareholders on the register at the close of business on 29 May 2015.
Over its 21 years as a listed company, DCC has an unbroken record of dividend growth at a compound annual rate of 14.6%.
The creation of shareholder value through the delivery of consistent, long term returns well in excess of its cost of capital is one of DCC's core strategic aims. Return on capital employed increased from 16.3% to 18.9% driven by the LQFUHDVHLQWKH*URXSȇVRSHUDWLQJSURȴW and strong working capital management. The return on capital employed by division was as follows:
52&( |
2014 ROCE |
|
|---|---|---|
| DCC Energy | 17.5% | |
| DCC Technology | 21.1% | |
| DCC Healthcare | 14.2% | |
| DCC Environmental | 8.6% | |
| Group | 16.3% |
The Group generated excellent operating DQGIUHHFDVKȵRZGXULQJWKH\HDUDV summarised in Table 5.
2SHUDWLQJFDVKȵRZLQZDVe million compared to £346.9 million in the prior year. Working capital reduced by £102.6 million with overall working capital
| 2014 | ||
|---|---|---|
| eȇP | eȇP | |
| 2SHUDWLQJSURȴW | 207.3 | |
| Decrease in working capital | 87.0 | |
| Depreciation and other | 52.6 | |
| 2SHUDWLQJFDVKȵRZ | 346.9 | |
| Capital expenditure (net) | (69.9) | |
| )UHHFDVKȵRZEHIRUHLQWHUHVWDQGWD[SD\PHQWV | 277.0 | |
| Dividend from equity accounted investments | 0.6 | |
| Interest and tax paid | (52.8) | |
| )UHHFDVKȵRZ | 224.8 | |
| Acquisitions | (50.1) | |
| Disposals | 11.1 | |
| Dividends | (62.1) | |
| Exceptional items | (21.1) | |
| 6KDUHLVVXHV | 2.0 | |
| 1HWLQȵRZ | 104.6 | |
| Opening net debt | (186.6) | |
| Translation and other | (5.3) | |
| &ORVLQJQHWFDVKGHEW | (87.3) |
days improving by 4.3 days to a negative 4.9 days sales. Working capital improvements were achieved across each of the Group's divisions with overall Group inventory days reducing from 16.4 days to 11.7 days. DCC Technology VHOHFWLYHO\XVHVVXSSO\FKDLQȴQDQFLQJ VROXWLRQVWRVHOORQDQRQUHFRXUVHEDVLV a portion of the receivables relating to certain larger supply chain/sales and marketing activities. The level of supply FKDLQȴQDQFLQJDW0DUFKZDV £148 million (31 March 2014: £123 million) and this had a positive impact on Group working capital days of 5.4 days (31 March 2014: 4.0 days).
After capital expenditure of £63.3 million ePLOOLRQ IUHHFDVKȵRZ amounted to £314.5 million, an excellent FRQYHUVLRQRIRSHUDWLQJSURȴWVLQWR cash. The conversion rate of operating SURȴWVWRIUHHFDVKȵRZLHRSHUDWLQJ FDVKȵRZOHVVFDSLWDOH[SHQGLWXUHEXW before interest and tax payments) is an important measure as to how the Group's RSHUDWLQJSURȴWVWUDQVODWHLQWRFDVKȵRZ The Group's long term track record of strong cash generation has enabled it to pay a growing dividend for the past 21 years and to support its growth and development strategy by making acquisitions and reinvesting in its businesses.
Including the commitment to acquire Butagaz, committed acquisition and capital expenditure amounted to £617.4 million as follows:
Committed acquisition expenditure amounted to £554.1 million.
'&&(QHUJ\KDVPDGHDELQGLQJRHU WRDFTXLUH%XWDJD]6\$6Ȇ%XWDJD]ȇ DOHDGLQJOLTXHȴHGSHWUROHXPJDV Ȇ/3*ȇ EXVLQHVVLQ)UDQFHIURP6KHOO IRUȜPLOOLRQePLOOLRQ 6KHOOKDV granted exclusivity while it consults with its French Work Councils as required under French law. The acquisition of Butagaz would represent the largest ever acquisition by DCC and a major step forward in the continuing expansion of its LPG business. The French LPG market is the second largest in Western Europe and approximately twice the size of the market in Britain. The acquisition of Butagaz would provide DCC Energy with a substantial presence in the French LPG market, an experienced management team and a high quality sales, marketing and operating infrastructure.
| Acquisitions eȇP |
Capex eȇP |
Total eȇP |
|
|---|---|---|---|
| DCC Energy | 457.7 | 40.7 | 498.4 |
| DCC Technology | 39.7 | 8.0 | 47.7 |
| DCC Healthcare | 54.3 | 5.8 | 60.1 |
| DCC Environmental | – | 8.2 | 8.2 |
| DCC Food & Beverage | 2.4 | 0.6 | 3.0 |
| 7RWDO |
As previously announced on 28 August 2014, DCC reached agreement in principle ZLWK(VVR6RFL«W«\$QRQ\PH)UDQ©DLVH Ȇ(VVR6\$)ȇ WRDFTXLUHWKHDVVHWVWKDW comprise the Esso Express unmanned retail petrol station network and the Esso branded motorway concessions in France. The business to be acquired will have annual volumes of approximately 1.9 billion litres. All of the relevant competition and legal clearances have now been received and the transaction is expected to complete by the end of June 2015, once implementation of the IT and operational infrastructure required to DHFWWKHEXVLQHVVWUDQVIHULVFRPSOHWHG
The total consideration, inclusive of stock in tank at the date of acquisition, will be LQWKHUHJLRQRIȜPLOOLRQePLOOLRQ payable in cash on completion
In March 2015 DCC Energy agreed in principle to combine its Danish oil distribution business with the oil and wood pellet distribution activities of DLG, a leading Danish agricultural business. The transaction is subject to competition clearance and will result in DCC Energy owning 60% of the enlarged entity which will distribute approximately 400 million litres of oil and 180,000 tonnes of wood pellets and will be managed by DCC Energy's existing management team. The cash impact of the transaction will be very modest.
ΖQ6HSWHPEHU'&&7HFKQRORJ\ expanded its European footprint with the acquisition of CapTech Distribution AB, 6ZHGHQȇVODUJHVWLQGHSHQGHQWWHFKQRORJ\ distribution business for an initial enterprise value of £15.7 million. With annual revenue of approximately £140 million, CapTech has a particularly strong market position in IT hardware and AV systems. CapTech partners with many of the world's leading technology manufacturers and brand owners, including Acer, Asus, %HQ4'HOO0LFURVRIW1(&DQG6DPVXQJ and sells to a very broad range of etail, retail and reseller customers.
In May 2015, DCC Technology acquired Computers Unlimited ('CU') for an initial enterprise value of £24.0 million. CU is a consumer technology distributor operating primarily in the UK but also ZLWKRSHUDWLRQVLQ)UDQFHDQG6SDLQ The business has annual revenue of approximately £140 million and is focused on the 'Connected Home' and professional design market. The business distributes a range of products that are complementary to those distributed by Exertis, including design software, printers, accessories and premium audio systems.
As previously announced on 3 June 2014, DCC Healthcare acquired Williams Medical, the market leader in the supply of medical and pharmaceutical products and related services to general practitioners ('GPs') in Britain. The consideration (which was paid in cash at completion) was based on an enterprise value of £45 million. Williams Medical supplies a wide range of own and third party branded products – medical equipment, consumables and pharmaceuticals – to a very broad customer base of approximately 10,000 GP practices and healthcare providers in the community care and domiciliary care sectors. The acquisition of Williams Medical represents DQH[FHOOHQWVWUDWHJLFȴWDQGDQRWKHU material step forward for DCC Healthcare, following the acquisitions of Kent Pharma, Leonhard Lang UK and UPL over the last two years.
In November 2014, DCC Healthcare acquired Beacon Pharmaceuticals Limited in a transaction based on an enterprise value of up to £10 million. Beacon is a niche pharma business which markets and sells its own licensed and third party pharma products primarily to the hospital sector in the UK.
7KHDFTXLVLWLRQRI4VWDUD6ZHGLVK unmanned retail petrol station company, along with its related fuel distribution and fuel card businesses, previously announced on 17 February 2014, was completed on 12 May 2014 for a total consideration of £38.7 million. The consideration for the Esso Retail France, Butagaz, DLG Denmark and CU transactions will not be paid until these transactions complete in the year to 31 March 2016. Accordingly, the cash RXWȵRZRQDFTXLVLWLRQVLQWKH\HDU ended 31 March 2015, inclusive of a net movement in deferred and contingent acquisition consideration of £7.8 million, was £123.5 million.
Net capital expenditure in the year of £63.3 million (2014: £69.9 million) compares to a depreciation charge of £59.7 million (2014: £55.4 million).
In its Interim Results announcement, the Group outlined the progress made by DCC Technology in integrating its UK businesses under the Exertis brand as SDUWRILWVVWUDWHJ\WRRHUDQHQKDQFHG sales proposition to its entire customer base. It also announced the commencement of a program to upgrade its ERP and logistics infrastructure to VXSSRUWIXWXUHJURZWKLQDFRVWHHFWLYH PDQQHU6\$3KDVQRZEHHQVHOHFWHGDV the preferred ERP platform and the implementation of this system will take place on a phased basis over the next two years. In addition, DCC Technology is developing a new purpose built, 450,000 sq.ft. UK national distribution centre, close to the majority of its existing facilities, which will consolidate the activities of most of its seven existing warehouse facilities and provide capacity for further growth. The relocation to the new facility will be conducted on a staged basis and will begin in the year ending 31 March 2017. The capital expenditure relating to these developments is of the order of £55 million, most of which will fall in the year ending 31 March 2016.
Following the completion of these projects, apart from the capacity increases and FRVWHɝFLHQFLHVWKDWVKRXOGEHJHQHUDWHG DVLJQLȴFDQWSURSRUWLRQRIWKLVH[SHQGLWXUH is expected to be recouped from the disposal of the existing facilities owned by DCC Technology and from improvements in working capital.
With the cash impact of acquisitions in the year of £123.5 million and dividend payments of £66.1 million less the proceeds from disposals of £55.1 million, WKHUHZDVDQRYHUDOOQHWLQȵRZRIe million in the year, leaving the Group in a modest net cash position at 31 March 2015 of £30.0 million (31 March 2014: £87.3 million).
DCC's balance sheet remains highly liquid with the Group moving to a modest net cash position of £30 million at 31 March 2015 (average net debt during the year of £309 million). The modest net cash position is before development expenditure committed during the year and since the balance sheet date of £465 million which it is anticipated will be paid in the year ending 31 March 2016. The modest year end net cash position is net of term debt of £1.1 billion with an average maturity of seven years and an average credit spread over euribor/libor of 1.65%.
.H\ȴQDQFLDOUDWLRVDVDW0DUFK DQGWKHSULQFLSDOȴQDQFLDOFRYHQDQWV included in the Group's various lending agreements, are as follows:
\$FWXDO |
2014 Actual |
Lender covenants |
|
|---|---|---|---|
| Net debt: EBITDA |
QD | 0.3 | 3.5 |
| EBITDA: net interest |
12.3 | 3.0 | |
| EBITA: net interest |
9.7 | 3.0 | |
| Total equity (£'m) |
946.3 | 425.0 |
Further analysis of DCC's cash, debt and ȴQDQFLDOLQVWUXPHQWEDODQFHVDW0DUFK 2015 is set out in notes 27 to 30 in the ȴQDQFLDOVWDWHPHQWV
DCC remains ambitious to continue the growth and development of its business. The Group's strategy has always included maintaining a strong and liquid balance sheet to leave it well placed to take advantage of opportunities as they arise. To that end and cognisant that the Group is already committed to development expenditure totalling £465 million, the Board has today agreed a placing of new 2UGLQDU\6KDUHVUHSUHVHQWLQJXSWRRI the existing issued share capital of the *URXSH[FOXGLQJ7UHDVXU\6KDUHV 7KH funds raised from this placing will ensure WKH*URXSUHWDLQVȴQDQFLDOFDSDFLW\IRU further development while preserving the balance sheet strength that has served it well over many years.
*URXSȴQDQFLDOULVNPDQDJHPHQWLV governed by policies and guidelines which are reviewed and approved annually by the Board of Directors. These policies and guidelines primarily cover foreign exchange risk, commodity price risk, credit risk, liquidity risk and interest rate risk. The principal objective of these policies and guidelines is the minimisation RIȴQDQFLDOULVNDWUHDVRQDEOHFRVW 7KH*URXSGRHVQRWWUDGHLQȴQDQFLDO instruments nor does it enter into any leveraged derivative transactions. DCC's Group Treasury function centrally manages the Group's funding and liquidity requirements. Divisional and subsidiary management, in conjunction with Group Treasury, manage foreign exchange and commodity price exposures within approved policies and guidelines. Further detail in relation to the Group's ȴQDQFLDOULVNPDQDJHPHQWDQGLWVGHULYDWLYH ȴQDQFLDOLQVWUXPHQWSRVLWLRQLVFRQWDLQHG LQQRWHWRWKHȴQDQFLDOVWDWHPHQWV
DCC's presentation currency is sterling. Exposures to other currencies, principally HXURDQGWKH86GROODUDULVHLQWKHFRXUVH of ordinary trading.
\$SURSRUWLRQRIWKH*URXSȇVSURȴWVDQG net assets are denominated in euro. The sterling/euro exchange rate strengthened by 12.2% from 0.8282 at 31 March 2014 to 0.7273 at 31 March 2015 and the average sterling/euro exchange rate at which the Group translates its euro denominated RSHUDWLQJSURȴWVVWUHQJWKHQHGE\ from 0.8441 in 2014 to 0.7890 in 2015.
Approximately 16% of the Group's RSHUDWLQJSURȴWIRUWKH\HDUHQGHG 31 March 2015 was denominated in currencies other than sterling, primarily the euro. DCC does not hedge the WUDQVODWLRQH[SRVXUHRQWKHSURȴWVRI QRQVWHUOLQJVXEVLGLDULHVRQWKHEDVLVDQG to the extent that they are not intended to be repatriated. The strengthening of the average translation rate of sterling, referred to above, negatively impacted WKH*URXSȇVUHSRUWHGRSHUDWLQJSURȴW by £3.2 million in the year ended 31 March 2015.
'&&KDVLQYHVWPHQWVLQQRQVWHUOLQJ primarily euro denominated, operations which are cash generative and cash generated from these operations is reinvested in development activities rather than being repatriated into sterling. The Group seeks to manage the resultant foreign currency translation risk through borrowings denominated in or swapped (utilising currency swaps or cross currency interest rate swaps) into the relevant currency, although this KHGJHLVRVHWE\WKHVWURQJRQJRLQJ FDVKȵRZJHQHUDWHGIURPWKH*URXSȇV QRQVWHUOLQJRSHUDWLRQVOHDYLQJ'&&ZLWK DQHWLQYHVWPHQWLQQRQVWHUOLQJDVVHWV The 12.2% strengthening in the value of sterling against the euro during the year ended 31 March 2015, referred to above, was the main element of the translation loss of £15.0 million arising on the WUDQVODWLRQRI'&&ȇVQRQVWHUOLQJ denominated net asset position at 31 March 2015 as set out in the Group 6WDWHPHQWRI&RPSUHKHQVLYHΖQFRPH LQWKHȴQDQFLDOVWDWHPHQWV
Where sales or purchases are invoiced in other than the local currency and there is not a natural hedge with other activities within the Group, DCC generally hedges between 50% and 90% of those transactions for the subsequent two months.
The Group is exposed to commodity cost price risk in its oil distribution and LPG businesses. Market dynamics are such that these commodity cost price PRYHPHQWVDUHLPPHGLDWHO\UHȵHFWHGLQ oil commodity sales prices and, within a short period, in LPG commodity sales prices and in the resale prices of recycled oil products. Fixed price oil supply contracts are occasionally provided to certain customers for periods of less than one year. To manage this exposure, the Group enters into matching forward commodity contracts which are GHVLJQDWHGDVKHGJHVXQGHUΖ\$67KH Group hedges a proportion of its anticipated LPG commodity exposure, with such transactions qualifying as 'highly probable' forecast transactions for Ζ\$6KHGJHDFFRXQWLQJSXUSRVHVΖQ addition, to cover certain customer segments for which it is commercially EHQHȴFLDOWRDYRLGSULFHLQFUHDVHVD proportion of LPG commodity price and related foreign exchange exposure is hedged. All commodity hedging counterparties are approved by the Chief ([HFXWLYHDQG&KLHI)LQDQFLDO2ɝFHUDQG reviewed by the Board.
DCC transacts with a variety of high credit UDWHGȴQDQFLDOLQVWLWXWLRQVIRUWKH purpose of placing deposits and entering into derivative contracts. The Group actively monitors its credit exposure to each counterparty to ensure compliance with limits approved by the Board.
DCC maintains a strong balance sheet ZLWKORQJWHUPGHEWIXQGLQJDQGFDVK balances with deposit maturities up to three months. In addition, the Group maintains both committed and uncommitted credit lines with its relationship banks. DCC borrows at both ȴ[HGDQGȵRDWLQJUDWHVRILQWHUHVW\$W 31 March 2015, 83% of the Group's drawn ȴ[HGUDWHERUURZLQJVZHUHVZDSSHGWR ȵRDWLQJLQWHUHVWUDWHVXVLQJLQWHUHVWUDWH and cross currency interest rate swaps which qualify for fair value hedge DFFRXQWLQJXQGHUΖ\$67KH*URXS mitigates interest rate risk on its borrowings by matching, to the extent possible, the maturity of its cash balances with the interest rate reset periods on the swaps related to its borrowings.
DCC's senior management team are committed to interacting with the LQWHUQDWLRQDOȴQDQFLDOFRPPXQLW\WR ensure a full understanding of DCC's strategic plans and its performance against those plans. During the year, the executive management presented at six capital market conferences, conducted LQVWLWXWLRQDOLQYHVWRURQHRQRQHDQG group meetings and presented to 17 EURNLQJȴUPV
On 4 June 2015, a Capital Markets Day will WDNHSODFHLQWKH/RQGRQ6WRFN([FKDQJH which will be attended by the Chairman DQGDQXPEHURIWKHQRQH[HFXWLYH Directors. Most of DCC's top shareholders as well as various brokers, analysts and fund managers will be present at this Capital Markets Day. The previous Investor Day was held in June 2013.
The Company's shares traded in the range £30.33 to £41.96 during the year. The share price at 31 March 2015 was £40.23 (31 March 2014: £32.60) giving a market capitalisation of £3.4 billion (2014: £2.7 billion).
DCC's objective is build a sustainable business and a key element in achieving this objective is to ensure that our businesses operate responsibly and meet increasing societal expectations. By doing so we will enhance our reputation with stakeholders and protect the value we create over the longer term.
At a DCC Group level, there are four areas which are material to the sustainability of our businesses: our people, health & safety, ethics and compliance and the environment. Further details on each of these areas are provided below. Individual subsidiaries also have additional business VSHFLȴFDUHDVZKLFKDUHNH\WRWKHLU ongoing sustainability, for example relationships with customers, suppliers, regulators and local communities, procurement of raw materials and supply chain integrity. Further information on these areas is included in the Operating Reviews and on subsidiary websites.
6LQFH'&&KDVEHHQUHSRUWLQJ on sustainability in line with the GRI3 Reporting Guidelines. In 2013, the new version of these guidelines (G4) was issued. We are reviewing our approach to sustainability reporting to take account of this globally accepted standard and also the Integrated Reporting standard developed by the International Integrated Reporting Council ('IIRC'), a coalition of regulators, investors, companies, standard setters, the accounting profession and NGOs. Ultimately, as sustainability continues to be embedded in standard management processes – strategy, planning, risk and performance measurement – its reporting will become further integrated into the Annual Report.
7KLV6XVWDLQDELOLW\5HSRUWIROORZVWKH VDPHUHSRUWLQJF\FOHDQGȴVFDO\HDUDV the Annual Report, to 31 March 2015, and includes all Group subsidiaries. Joint ventures are not included in the LTI or carbon emissions data. There are no VLJQLȴFDQWFKDQJHVIURPSUHYLRXV reporting periods in the scope, boundary or measurement methods applied in this Report and there is no restatement of GDWDIURPWKH6XVWDLQDELOLW\5HSRUW
At 31 March 2015, DCC employed 10,220 people, broadly in line with last year, despite the sale of a number of businesses within the Food & Beverage division, as we continue to successfully extend our geographic footprint, particularly into Continental Europe, ZKLFKLVUHȵHFWHGLQDQRYHUDOOLQFUHDVH of 19% during the year in employee numbers in this geographic area.
DCC employment by division
DCC recognises the variety of characteristics which make individuals XQLTXHDQGZHHPEUDFHWKHEHQHȴWVRI a workforce with diverse skills, qualities and experience. The DCC Group policy statement on diversity and equal opportunities applies across the Group and our individual companies continue to focus on ways to increase the diversity of our workforce. In line with our commitment to create an inclusive workplace, all recruitment, selection and promotion decisions are made on individual merit.
In support of our ambitious growth plans, we reported last year that we were revising our approach to the development of talent across DCC. We have now embarked upon a talent initiative, in conjunction with external DGYLVRUVWKHȴUVWSKDVHRIZKLFKZLOO provide us with a framework to select, assess and develop talent, which we plan to use to implement assessment and development programmes across the DCC Group.
The talent development programme is complemented by the DCC Graduate 3URJUDPPHZKLFKZDVFRPPHQFHGȴYH years ago with the objective of creating a pipeline of high potential, emerging talent. 7KLVWZR\HDUSURJUDPPHRHUVRXU graduates an exceptional opportunity to participate in three placements across WKUHHGLHUHQWLQGXVWU\VHFWRUVDQG XVXDOO\LQDWOHDVWWZRGLHUHQWJHRJUDSKLHV The streams we hire into are business IT, business management, logistics, marketing and sales & marketing.
2QFRPSOHWLRQRIWKHȴIWKUHFUXLWPHQW cycle this year, we hired 15 graduates who ZLOOMRLQXVLQ6HSWHPEHU7KLVZLOO bring the number of graduates hired since the programme began in 2010 to 52. We have retained over 85% of the graduates who have completed the programme and they are now working in permanent roles in a variety of functions in a number of our businesses.
The DCC Graduate Programme is GLHUHQWLDWHGE\WKHFRQWHQWDQGSDFH of the placements which ensure that graduates work on complex, critical and demanding projects. This, along with the diverse industry nature of the placements and regular learning modules, provide VLJQLȴFDQWO\DFFHOHUDWHGGHYHORSPHQW Our business leaders are delighted with the real contribution the graduates are making and by their clearly demonstrable development.
Across the DCC Group, subsidiaries support charities and local communities E\GLUHFWȴQDQFLDOFRQWULEXWLRQV fundraising or the provision of particular skills and training. At a corporate level, '&&SOFFRQWLQXHVWRVXSSRUW6RFLDO (QWUHSUHQHXUVΖUHODQGȆ6(Ζȇ DQLQGHSHQGHQW QRQSURȴWRUJDQLVDWLRQZKLFKLGHQWLȴHV and supports social entrepreneurs in growing their ideas from concept to reality, on a national scale.
7KH'&&*URXS+HDOWK 6DIHW\3ROLF\ sets out the Board's commitment to continually improving management systems and safety cultures – viewed as positive drivers of business performance. The policy is reinforced in our Business Conduct Guidelines.
Each Group business maintains appropriate health, safety and environmental management systems and, in some instances, these are accredited to international standards VXFKDV2+6\$6ZKHUHWKHUH
is a strong business case to do so. Risk control measures – technical, procedural and behavioural – are implemented and PRQLWRUHGWRFRQȴUPWKHLUHHFWLYHQHVV and to identify improvement opportunities.
Within the Energy and Environmental divisions, formal governance structures DUHLQSODFHWRRYHUVHH+6(SHUIRUPDQFH and establish high level objectives and targets for the operating businesses. Communication of best practice, learning from events and the development of technical and safety standards is achieved through regular cross subsidiary meetings, OHYHUDJLQJWKHGHSWKRI+6(H[SHUWLVHDQG experience within the Group.
Process safety management is a key focus ZLWKLQWKH(QHUJ\GLYLVLRQUHȵHFWLQJWKH hazardous nature of the products we store and distribute. Process safety performance indicators are used to monitor the integrity of the safety critical assets, technology, competence and procedures that are in place to prevent a major accident occurring.
At Group level, two Lost Time Injury ('LTI') metrics are reported monthly by all businesses – Lost Time Injury Frequency 5DWHȆ/7Ζ)5ȇ DQG/RVW7LPHΖQMXU\6HYHULW\ 5DWHȆ/7Ζ65ȇ
per 200,000 hours worked (LTIFR)
Number of calendar days lost per 200,000 hours worked (LTISR)
After a number of years of improving performance, both LTI rates increased in WKHUHSRUWHGSHULRG6OLSVWULSVDQGIDOOV and manual handling continue to be the primary causes of LTIs and while the majority result in minor injuries, each one is investigated to identify root causes in order WRLPSOHPHQWHHFWLYHFRUUHFWLYHDFWLRQV Implementing safe systems of work and the development of personal risk awareness in a supportive safety culture are a constant focus of attention. We will redouble our HRUWVWRSURJUHVVWRZDUGVRXUXOWLPDWH objective of an injury free workplace for all employees and contractors.
7KHZDVWHLQGXVWU\IDFHVVLJQLȴFDQW occupational health and safety challenges. During the year, all of the businesses within the Environmental division began a programme of safety leadership training and employee engagement, with routine safety conversations and safety forums. Early feedback from these initiatives is positive and they have generated innovative safety improvements which are shared across the Group.
In the Energy and Environmental divisions, ZKLFKKDYHKLJKHU+6(ULVNSURȴOHVVSHFLȴF metrics and targets, for example, in relation to driving performance, spills, near miss reporting, process safety indicators, are in place and reviewed at monthly management meetings.
+6(DXGLWVDUHFRPSOHWHGE\WKH*URXS +6(IXQFWLRQXVLQJWKHΖQWHUQDWLRQDO 6DIHW\5DWLQJ6\VWHPȆΖ656ȇ DXGLWWRRO GHYHORSHGE\'19*/ZKRVSHFLDOLVH in business assurance across a number of industry sectors. Audits are risk based and systematically challenge the LQGLYLGXDO+6(SURFHVVHVDQGFRQWUROVLQ the subsidiary management systems. Audit results are reviewed with divisional management and presented to the Audit Committee and Board.
6DIHW)UVWLVWKHEUDQGXVHGDFURVV the Energy division to communicate key safety behaviours and golden rules. Regular interventions on particular themes, for example safe driving, risk awareness and manual handling, raise awareness and encourage safety communication at all levels within the organisation. Following a review of the 6DIHW)UVWFRQFHSW'&&+HDOWKFDUH subsidiaries have committed to implementing it within their businesses. Work is being completed to align the 6DIHW)UVWWRROVDQGPDWHULDOZLWKWKH VSHFLȴFVDIHW\ULVNDUHDVZLWKLQ'&&9LWDO DQG'&&+HDOWK %HDXW\6ROXWLRQV
DCC seeks to achieve the highest standards of business ethics and compliance in all our activities. Ensuring that these standards are met is the responsibility of the leadership team in
each business in the Group. They are supported in this regard by a central Group Compliance function and, in our Energy and Technology divisions, by dedicated compliance personnel.
The key message of our Compliance Programme is that managers and employees across the Group should be 'Doing the Right Thing' at all times. This means not merely following the laws and policies that apply to their work, but also exercising good judgement to ensure that their actions are seen as fair and reasonable.
Our Group Business Conduct Guidelines, which are available on our website, set out the standards that are expected of employees across the Group in a range RIDUHDVLQFOXGLQJFRQȵLFWVRILQWHUHVW bribery and corruption and dealings with customers and suppliers.
During the year we revised and updated WKH*XLGHOLQHVWRUHȵHFWGHYHORSPHQWV in the Group and in good compliance practice. These revised Guidelines were distributed to employees across the Group, supported by training and other suitable internal communications. As was the case previously, the new Guidelines are available in all of the principal languages used by our employees.
Over 90% of employees in management, FRPPHUFLDOVDOHVȴQDQFHDQGUHODWHG roles across the Group have completed detailed online training on the Guidelines. Employees in other roles received EULHȴQJVWDLORUHGWRWKHLUUROHV
The Group also maintains detailed policies on a range of relevant areas, complementing the general requirements set out in the Business Conduct Guidelines. The areas covered by more detailed policies include health and VDIHW\DQWLEULEHU\DQGFRUUXSWLRQ competition law, data protection, IT security, diversity and equal opportunities and share dealing. Depending on the nature of their role, employees of Group subsidiaries receive more detailed training on those policies. Having reviewed and updated our Business Conduct Guidelines during 2014, we will be refreshing our other policies during the present year to ensure WKH\DFFXUDWHO\UHȵHFWWKHDFWLYLWLHVRIWKH Group, current regulatory requirements and best practice.
Employees across the Group are encouraged to raise a concern if any of our activities are being undertaken in a manner that may not be legal or ethical. Concerns can be raised with a member of management in the business where the employee works, with the Head of Group Compliance or externally WR6DIH&DOODWKLUGSDUW\IDFLOLW\ZKLFKLV independent of DCC and available in multiple languages and on a 24 hour basis. Our internal policies make clear that retaliation against any employee who raises a concern is prohibited.
The Audit Committee has oversight responsibility for the whistleblowing policy and how it operates.
Following an application made in late 2014, DCC was recognised by Ethisphere as one of the World's Most Ethical &RPSDQLHVIRU7KLVFHUWLȴFDWLRQ UHȵHFWVRXUFRPPLWPHQWWRKLJK standards of business conduct and how that commitment is translated into practice through our compliance policies and procedures.
Operating in a range of industries, our businesses are subject to a number RIGLHUHQWHQYLURQPHQWDOOHJLVODWLYH requirements covering waste, release to the environment and permitting.
Producer responsibility for waste packaging and waste electronic and electrical equipment is regulated in all EU member states and DCC businesses meet their obligations through membership of national compliance schemes.
The impact of spills and uncontrolled releases to the soil or groundwater is a particular concern to the oil businesses, both bulk and retail. Controls to maintain asset integrity, monitor tank levels and deliver products safely are in place to minimise both the likelihood and magnitude of spills. Where failures occur, swift clean up and remediation measures are implemented and lessons learnt are applied to prevent reoccurrence.
Businesses within the Environmental division operate under the strict conditions set out in their waste management licences and are subject to routine compliance inspections by the national regulators. All DCC Environmental businesses have FRPSUHKHQVLYHΖ62FHUWLȴHG environmental management systems to ensure robust controls are in place to minimise negative impacts on the environment.
The global challenge of climate change continues to drive policy and legislation at both EU and national level. Member states have implemented various mechanisms to support the achievement of targets including direct carbon taxes, levies on operational carbon emissions, subsidies for generation of renewable energy and the requirement for energy providers to SDUWIXQGLQYHVWPHQWLQHQHUJ\HɝFLHQF\ projects in domestic markets.
ΖQWKH8.WKH(QHUJ\6DYLQJV2SSRUWXQLW\ 6FKHPHȆ(626ȇ KDVEHHQLQWURGXFHGWR meet the requirements of Article 8(4) of WKH(8(QHUJ(ɝFLHQF\'LUHFWLYH aimed at raising awareness of energy use in larger companies. For DCC's UK EXVLQHVVHVHQHUJ\HɝFLHQF\DXGLWVZLOO be undertaken in 2015 to address over 90% of total energy consumption (electricity, natural gas, heating fuels DQGWUDQVSRUWIXHOV &RQȴUPDWLRQRI
FRPSOLDQFHZLWK(626UHTXLUHPHQWV will be submitted to the Environment Agency in advance of the December 2015 deadline.
All subsidiaries report energy use data on at least a quarterly basis to DCC's cloud based IT platform. Energy data is converted to carbon emissions using conversion factors from DEFRA in the UK and in line with the international Greenhouse Gas Protocol. This information is used to comply with mandatory reporting requirements, for example, the UK Carbon Reduction Commitment 6FKHPHDQGZLWKYROXQWDU\UHSRUWLQJWR the CDP, a global initiative, funded by the investment community, which encourages companies to publicly report their carbon emissions and the steps they are taking to address the challenge of climate change. DCC has been responding to the CDP since 2010 and DCC's disclosure to the &OLPDWH&KDQJH4XHVWLRQQDLUH VFRUHGSXWWLQJLWLQWKHWRSȴYH of Irish reporting companies.
In absolute terms, DCC carbon emissions increased marginally over the prior year to 128,000 tonnes CO2 e. Increases in emissions from acquisitions during the period, full year contributions from earlier acquisitions and additional processing FDSDELOLWLHVZHUHRVHWE\WKHGLYHVWPHQW of some businesses and a milder winter, which reduced the need for heating of ZDUHKRXVHVDQGRɝFHV6XEVLGLDULHV FRQWLQXHWRLQYHVWLQHQHUJ\HɝFLHQF\ projects, including real time energy use PRQLWRULQJHQHUJ\HɝFLHQWWHFKQRORJLHV consolidation of warehousing, vehicle engine monitoring and behavioural change. These initiatives result in both lower costs and lower carbon emissions.
In relative terms the carbon intensity of DCC businesses has decreased by 25% on a per £ revenue basis against a baseline of FY2011.
DCC Environmental
DCC Food & Beverage
ΖQFOXGHV'&&+HDG2ɝFHHPLVVLRQV (104 tonnes CO2 e)
We have been engaged by the directors of DCC plc ('DCC') to perform an independent assurance engagement in respect of selected aspects of DCC's sustainability SHUIRUPDQFHGLVFORVHGLQLWV6XVWDLQDELOLW\ Report for the year ended 31 March 2015 (the Report).
We planned and performed our work, summarised below, to obtain the evidence we considered necessary to reach our assurance conclusions on the carbon emissions data.
The carbon emissions data for the year ended 31 March 2015 marked with the symbol † presented in the Report (the carbon emissions data).
The scope of our work was restricted to the carbon emissions data for the year ended 31 March 2015 and does not extend to information in respect of earlier periods or to any other information in the Report.
DCC's Reporting Criteria (http://www.dcc.ie/~/media/Files/D/ '&&&RUSSGIVFDUERQ/7ΖUHSRUWLQJ FULWHULDDSGI VHWRXWKRZWKHFDUERQ emissions data is measured, recorded and reported.
Limited Assurance.
There is not yet an established practice for evaluating and measuring sustainability performance information. 7KHUDQJHRIGLHUHQWEXWDFFHSWDEOH techniques used can result in materially GLHUHQWUHSRUWLQJRXWFRPHVZKLFKPD\ DHFWFRPSDUDELOLW\ZLWKRWKHU organisations. It is therefore important to read and understand the Reporting Criteria at http://www.dcc.ie/~/media/ )LOHV''&&&RUSSGIVFDUERQ/7Ζ UHSRUWLQJFULWHULDDSGIWKDW'&&KDVXVHG to evaluate and measure the carbon emissions data.
We performed the following activities:
As a result of our procedures nothing has come to our attention that indicates that the carbon emissions data for the year ended 31 March 2015 is not prepared in all material respects with the Reporting Criteria.
The directors of DCC are responsible for:
We are responsible for:
This report, including our conclusions, has been prepared solely for the directors of DCC as a body in accordance with the agreement between us, to assist the directors in reporting DCC's sustainability performance and activities. We permit this report to be disclosed in the Annual Report for the year ended 31 March 2015, to enable the directors to show they have addressed their governance responsibilities by obtaining an independent assurance report in connection with the carbon emissions data. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the directors as a body and DCC plc for our work or this report except where terms are expressly agreed between us in writing.
Chartered Accountants Dublin, Ireland 18 May 2015
Notes
| Chief Executive | Tommy Breen |
|---|---|
| &KLHI)LQDQFLDO2ɝFHU | Fergal O'Dwyer |
| &RPSDQ\6HFUHWDU\ +HDGRI(QWHUSULVH5LVN0DQDJHPHQW | Ger Whyte |
| Managing Director, DCC Corporate Finance | 0LFKDHO6FKROHȴHOG |
| Head of Group HR | Ann Keenan |
| &KLHIΖQIRUPDWLRQ2ɝFHU | 3HWHU4XLQQ |
| Head of Group Finance | Kevin Lucey |
| Head of Group Accounting | Gavin O'Hara |
| Head of Group Compliance | Darragh Byrne |
| Head of Internal Audit | 6WHSKHQ-RKQVWRQ |
| +HDGRI*URXS6XVWDLQDELOLW\ | John Barcroft |
| Head of Group Tax | Yvonne Divilly |
| Head of Group Treasury | Niall Kelly |
| DCC Energy | |
| Managing Director | Donal Murphy |
| Managing Director, Retail & Fuel Card | Eddie O'Brien |
| Managing Director, LPG | Henry Cubbon |
| Finance Director | Conor Murphy |
| Managing Director, Development and Oil Europe | Clive Fitzharris |
| %XON2LO | |
| Managing Director, Certas Energy UK | Eddie O'Brien (Acting) |
| Managing Director, Oil Ireland | Tom Walsh |
| Managing Director, DCC Energi Danmark | Christian Heise |
| Managing Director, Energie Direct (Austria & Bavaria) | +DQV3HWHU+LQWHUPD\HU |
| 0DQDJLQJ'LUHFWRU6ZHD(QHUJL | Magnus Nyfjäll |
| 5HWDLO )XHO&DUG | |
| 0DQDJLQJ'LUHFWRU4VWDU5HWDLO | Maria Hadd |
| 0DQDJLQJ'LUHFWRU)XHO&DUG6HUYLFHV | 6WHYH&KHVZRUWK |
| 0DQDJLQJ'LUHFWRU&DUG1HWZRUN6ROXWLRQV | Ben Jordan |
| /3* | |
| Managing Director, Flogas Britain | Lee Gannon |
| Managing Director, Flogas Ireland | John Rooney |
| 0DQDJLQJ'LUHFWRU)ORJDV6FDQGLQDYLD | Jan Wahlqvist |
| Managing Director, Benegas | Bauke van Kalsbeek |
| DCC Technology | |
| Managing Director | Niall Ennis |
| Finance & Development Director | 6WHSKHQ&DVH\ |
| Managing Director, Exertis UK & Ireland | *HUU\2ȇ.HHH |
| Managing Director, Exertis Continental Europe | Patrice Arzillier |
| DCC Healthcare | |
| Managing Director | Conor Costigan |
| Finance & Development Director | Redmond McEvoy |
| Managing Director, DCC Vital | Harry Keenan |
| 0DQDJLQJ'LUHFWRU'&&+HDOWK %HDXW\6ROXWLRQV | 6WHSKHQ2ȇ&RQQRU |
| DCC Environmental | |
| Finance & Development Director | Thomas Davy |
| Managing Director, DCC Environmental Britain and William Tracey | Michael Tracey |
| Managing Director, Wastecycle | Paul Needham |
| Managing Director, Oakwood | John MacNamara |
| Managing Director, Enva Ireland | Tom Walsh |
As Chairman, one of my primary responsibilities is to uphold and promote high standards of integrity, probity and corporate governance.
On behalf of the Board of DCC, I am happy to report full compliance with the 2012 version of the UK Corporate Governance Code ('the 2012 Code'), which applied to DCC for the year ended 31 March 2015. We believe that we have a strong governance framework, that we maintain robust structures, processes and procedures to support the principles of good corporate governance and that they are well applied.
A revised version of the Code was issued by the Financial Reporting Council on 17 September 2014 ('the 2014 Code') and DSSOLHVWRȴQDQFLDOSHULRGVEHJLQQLQJ after 1 October 2014 – in DCC's case for WKHȴQDQFLDO\HDUWR0DUFK7KH Nomination and Governance Committee and the Board have reviewed the new requirements in the 2014 Code and are VDWLVȴHGWKDW'&&ZLOOEHDEOHWRFRPSO\ fully with these requirements.
The Irish Companies Act 2014 is due to be commenced on 1 June 2015 and will DHFWDOOΖULVKUHJLVWHUHGFRPSDQLHV The new Act consolidates all existing Irish company law provisions and introduces VRPHVLJQLȴFDQWDPHQGPHQWV\$VD result, we will be putting a resolution to the shareholders at the Annual General Meeting in respect of proposed changes
to the Memorandum and Articles of Association of the Company to align them with the requirements of the new Act. An explanation of the proposed changes is set out in the Chairman's Letter and Notice of Annual General Meeting.
The Board has a formal Board Diversity Policy in place and sees increasing diversity at Board level as important to achieving DCC's business objectives. On an ongoing basis, we seek to ensure we have the right balance of skills, experience and diversity on the Board.
David Jukes joined the Board as a non-executive Director on 31 March 2015. David has extensive experience of doing business at senior management and board levels. A successful divisional CEO, he has a strong international and commercial track record in the business to business trading and chemicals distribution sectors.
We are also conscious of the merits of gender diversity on the Board, which currently comprises 30% female Directors. I would highlight that the Women on Boards Davies Review Annual Report 2015 ranks DCC at thirteenth in the FTSE 250 companies for its level of female Board representation.
In 2015, the performance evaluation of the Board, its Committees and individual 'LUHFWRUVZDVH[WHUQDOO\GHȴQHGDQG conducted by the ICSA, in accordance with the requirement under the Code to have it externally facilitated every three years. I am pleased to report that the results of this independent review were positive. A number of actions were agreed which will be implemented during the current year. More information on this process can be found on page 75 of this report.
As part of their ongoing training and development, the non-executive Directors made a number of site visits to Group subsidiaries during the year ended March 2015. I personally review Directors' training needs with each Director individually to ensure that those needs are matched with appropriate internal presentations and external events.
There are seven non-executive Directors and three executive Directors on our Board. We recently conducted our annual review of the independence of non-H[HFXWLYH'LUHFWRUV7KH%RDUGLVVDWLVȴHG that each of the non-executive Directors is independent. As noted in the Code, the test is not appropriate to myself, but I did IXOȴOWKHLQGHSHQGHQFHUHTXLUHPHQWVXSWR the date of my appointment as Chairman. In accordance with the Code and our practice, all of the Directors will be presenting themselves for re-election at the forthcoming Annual General Meeting. Further detail on the independence of nonexecutive Directors is set out on page 73.
The intention at Board meetings is to achieve an appropriate balance between strategic, operational, regulatory and other matters. I regularly monitor the amount of time devoted to each category of business to ensure that we maintain the required balance.
Our Board Committees have continued to SHUIRUPHHFWLYHO\<RXZLOOȴQGRQSDJHV 77 to 104 a detailed report introduced by the Chairman of each Committee, setting out its membership and an overview of its activities during the year.
John Moloney
Chairman
John Moloney BAgrSc, MBA
Non-executive Chairman; Chairman, Nomination and Governance Committee; Member, Remuneration Committee \$JH Nationality: Irish
Mr. Moloney joined the Board in February 2009. He was appointed non-executive Chairman in September 2014, following Michael Buckley's retirement as a non-executive Director and Chairman of the Company.
Mr. Moloney has extensive top management and board level experience internationally and domestically in the dairy, meat and nutritionals sectors, covering processing, marketing and distribution.
Tommy Breen BSc (Econ), FCA Chief Executive \$JH
Nationality: Irish
Fergal O'Dwyer FCA Chief Financial Officer Age: 55
Nationality: Irish
Donal Murphy B Comm, BFS, MBA Managing Director – DCC Energy Age: 49 Nationality: Irish
Non-executive Deputy Chairman and Senior Independent Director; Member, Remuneration Committee; Member, Nomination and Governance Committee \$JH
Mr. Byrne joined the Board and was appointed Deputy Chairman and Senior Independent Director in January 2009.
Mr. Breen joined the Board in February 2000.
Mr. Breen has worked across a broad range of sectors and businesses during his 29 years with the DCC Group. During this time he has gained significant experience of growing businesses organically and by acquisition.
Mr. O'Dwyer joined the Board in February 2000.
He has worked in DCC in senior management positions for over 25 years and during that time he has worked closely with all of the Group's material operating companies on a range of financial management, treasury and strategic and development matters.
Mr. Murphy joined the Board LQ'HFHPEHU
Mr. Murphy has extensive experience in managing DCC businesses in a number of industry sectors and in leading the acquisition and integration of numerous businesses, particularly in the Energy sector.
Mr. Byrne has practised at the top of the legal profession. His international commercial experience at board and advisory level ranges across the food, healthcare and environmental sectors.
He is a former Group Managing Director of Glanbia plc prior to which he worked with the Department of Agriculture, Food and Forestry as well as in the meat industry in Ireland. He is a former council member of the Irish Business and Employers Confederation.
+HMRLQHG'&&LQKDYLQJ previously worked with KPMG, and has held a number of senior management positions within the Group, including Managing Director of the Energy, Technology and Environmental divisions. He was appointed Chief Operating Officer of DCC in 0DUFKDQGVXEVHTXHQWO\ became Group Managing Director in July 2007. He was appointed Chief Executive in 0D\
Mr. O'Dwyer joined DCC in DQGZDVDSSRLQWHG&KLHI Financial Officer in 1994, having worked in that role in the lead up to DCC's flotation in that year. Prior to joining DCC, he previously worked with KPMG and Price Waterhouse in audit and corporate finance.
He joined DCC as Head of *URXSΖ7LQKDYLQJ previously worked with Allied Irish Banks plc. He was Managing Director of DCC Technology from 2004 WRZKHQKHZDV appointed Managing Director of DCC Energy.
Following 27 years of practice as a barrister, he was Attorney General of Ireland from 1997 to 1999. Mr. Byrne served as the first EU Commissioner for Health and Consumer Protection from 1999 to 2004. Following this, he served as Special Envoy of the Director-General of the World Health Organisation advising on the International Health Regulations. He has previously been a member of the boards of public and private companies, including Kingspan Group plc, The National Concert Hall (Chairman) and Irish Life & Permanent plc. He is the immediate past chair of the National Treasury Management Agency Advisory Committee and is Chancellor Emeritus of Dublin City
Chairman of Coillte Teo (the Irish State Forestry Company) and a non-executive director of Greencore Group plc, Smurfit Kappa plc and a number of private companies. A non-executive director of Essentra plc.
No external director appointments.
No external director appointments.
A member of the Kikkoman International Advisory Board. Chair of the European Alliance for Personalised Medicine in Brussels and a Council Member of the Royal College of Physicians of Ireland.
Róisín Brennan BCL, FCA Non-executive Director; Member, Audit Committee
Age: 50 Nationality: Irish
Non-executive Director; Member, Audit Committee \$JH Nationality: British
David Jukes Pamela Kirby BSc, PhD Non-executive Director; Member, Remuneration
Committee \$JH Nationality: British
Jane Lodge BSc, FCA
Non-executive Director; Chairman, Audit Committee \$JH Nationality: British
Leslie Van De Walle
Non-executive Director; Chairman, Remuneration Committee; Member, Audit Committee; Member, Nomination and Governance Committee Age: 59 Nationality: French
Ms. Brennan joined the Board in September 2005.
Mr. Jukes joined the Board in March 2015.
Dr. Kirby joined the Board in September 2013.
Ms. Lodge joined the Board in October 2012.
Mr. Van de Walle joined the Board in November 2010.
Ms. Brennan has over 20 years' experience advising companies on mergers and acquisitions, takeovers, disposals, fundraisings and initial public offerings.
Mr. Jukes is a successful divisional CEO with a strong international and commercial track record in the Business to Business and Chemicals Distribution sectors.
Dr. Kirby has extensive knowledge of the international healthcare sector, having worked in the pharmaceutical industry for more than twenty five years. Dr. Kirby serves on the board of a FTSE 100 company and is the chairman of a company listed on the NASDAQ stock exchange.
Ms. Lodge, as a senior audit partner for 25 years, has extensive experience with multinational manufacturing companies and her strategic work with Deloitte has given her a substantial international business perspective. She has very strong and recent financial skills to bring to the Audit Committee.
Mr. Van de Walle has a very wide range of international senior management business experience, as well as experience as a non-executive director, in the oil and gas sector, in the food and drinks industry, in manufacturing, in building materials and in the insurance sector.
She is a former Chief Executive of IBI Corporate Finance where she worked from 1990 until 2011. She is a former non-executive director of The Irish Takeover Panel.
From July 2009 to January 2011, Mr. Jukes served as Vice President, Sales and Marketing Univar EMEA and from 2002 to 2009 as Chief Executive of Distrupol Europe, Univar UK, Ireland and the Nordics. Prior to joining Univar, Mr. Jukes was Senior Vice President of Global Sales, Marketing and Industry Relations for Omnexus, a plastics industry consortium e-commerce platform and VP Business Development for Ellis & Everard Plc.
She held senior UK and global management positions in AstraZeneca PLC and in F. Hoffman-La Roche Ltd., where she was Director of Global Strategic Marketing. Dr. Kirby is also a former CEO of Quintiles Transnational Corporation in the USA, the leading global provider of biopharmaceutical development and commercial outsourcing services. She was also previously a non-executive director of Novo Nordisk A/S, Informa plc and Smith and Nephew plc.
Until 2011, Ms. Lodge was a senior audit partner with Deloitte, where she spent over 25 years advising global manufacturing companies. She was also the Deloitte partner in charge of the firm's UK manufacturing industry sector, where she was responsible for strategy and marketing, and was a member of the Deloitte Global Manufacturing Executive. She was a member of the CBI Manufacturing Council until 2011. While at Deloitte, she served a term on the Board of Partners of Deloitte UK and also co-chaired a global team of partners to review the strategy of the Global Deloitte Firm.
He is a former non-executive director of Aviva plc and former Chief Executive Officer of Rexam plc. He previously held a number of senior executive roles in Royal Dutch Shell plc, including Executive Vice President of Retail for Oil Products and Head of Oil Products, Shell Europe. He has also held a number of senior management positions with Cadbury Schweppes plc and United Biscuits plc where he was CEO. He was also a non-executive director of Aegis Group plc from 2003 to 2009.
A non-executive director of Coillte Teo (the Irish State Forestry Company) and of UTV Media plc.
President of Univar EMEA. Non-executive Chairman
of Scynexis Inc and a non-executive director of Victrex plc, Hikma Pharmaceuticals plc and Reckitt Benckiser Group plc. A non-executive director of Devro plc and of Costain Group PLC and a director of a number of private companies. Non-executive Chairman of SIG plc and of Robert Walters plc and a non-executive director of Cape plc.
Governance
This statement describes DCC's governance principles and practices.
For the financial year ended 31 March 2015, DCC's corporate governance practices were subject to the 2012 version of the UK Corporate Governance Code, which was issued by the FRC in September 2012 ('the 2012 Code').
This statement details how DCC has applied the principles and complied with the provisions set out in the 2012 Code. We can confirm full compliance with the 2012 Code.
A revised version of the Code was issued by the FRC on 17 September 2014 ('the 2014 Code') and applies to financial periods beginning after 1 October 2014 – LQ'&&ȇVFDVHIRUWKHILQDQFLDO\HDUWR0DUFK
We have identified the new requirements emanating from the 2014 Code, with the objective of ensuring that DCC will be fully compliant with the 2014 Code for the financial \HDUWR0DUFK
Copies of both versions of the Code can be obtained from the FRC's website, www.frc.org.uk.
The Board of DCC comprises the non-executive Chairman, six other non-executive Directors and three executive Directors, including the Chief Executive. It is collectively responsible for the long term success of the Group. Its role is to provide leadership, to oversee management and to ensure that the Company provides its stakeholders with a balanced and understandable assessment of the Group's current position and prospects.
The Board's leadership responsibilities, in the interest of delivering long term value to shareholders, involve working with management to set corporate values and to develop strategy, including deciding which risks it is prepared to take in pursuing its strategic objectives. Its oversight responsibilities involve it in constructively challenging the management team in relation to operational aspects of the business, including approval of budgets, and probing whether risk management and internal controls are sound. It also is responsible for ensuring that accurate, timely and understandable information is provided about the Group to shareholders, debt providers and regulators.
The Board has delegated responsibility for management of the Group to the Chief Executive and his executive management team. The main areas where decisions remain with the Board are summarised on page 73.
The Board has delegated some of its responsibilities to Committees of the Board. The composition and activities of these Committees are detailed in their individual reports on pages 77 to 104. The Board receives reports at its meetings from the Chairmen of each of the Committees on their current activities.
A clear division of responsibility exists between the Chairman, who is nonexecutive, and the Chief Executive. Each of their responsibilities have been set out in writing and have been approved by the Board.
There is an established procedure for Directors to take independent professional advice in the furtherance of their duties, if they consider this necessary.
The Schedule of Matters Reserved for the Board has been reviewed during the year to ensure it meets with current best practice, in particular guidance as issued by the UK Institute of Chartered Secretaries and Administrators ('ICSA').
The schedule includes the matters set out below:
The Chairman's primary responsibility is to lead the Board, to ensure that it has DFRPPRQSXUSRVHLVHHFWLYHDVD group and at individual Director level and that it upholds and promotes high standards of integrity, probity and corporate governance.
The Chairman is the link between the Board and the Company. He is VSHFLȴFDOO\UHVSRQVLEOHIRUHVWDEOLVKLQJ DQGPDLQWDLQLQJDQHHFWLYHZRUNLQJ relationship with the Chief Executive, IRUHQVXULQJHHFWLYHDQGDSSURSULDWH communications with shareholders and for ensuring that members of the Board develop and maintain an understanding of the views of shareholders.
%HIRUHWKHEHJLQQLQJRIWKHȴQDQFLDO year, having consulted with the other Directors and the Company Secretary, the Chairman sets a schedule of Board and Committee meetings to be held in the following two years, which includes the key agenda items for each meeting. Further details on these agenda items are outlined under 'Board Meetings' on page 74.
The duties of the Deputy Chairman (who is also the Senior Independent Director) are set out in writing and formally approved by the Board. The Deputy Chairman chairs meetings of the Board if the Chairman is unavailable or is FRQȵLFWHGLQUHODWLRQWRDQ\DJHQGDLWHP He also leads the annual Board evaluation of the performance of the Chairman.
The Senior Independent Director is available to shareholders who may have concerns that cannot be addressed through the Chairman or Chief Executive.
The Directors have access to the advice and services of the Company Secretary, whose responsibilities include ensuring that Board procedures are followed, assisting the Chairman in relation to corporate governance matters and ensuring compliance by the Company with its legal and regulatory requirements.
The Nomination and Governance Committee formally agrees criteria for new non-executive Director appointments, including experience of the industry sectors and geographies in which the Group operates and professional background, and has regard to the need for a balance in relation to diversity, including gender. The detailed appointment process is set out in the Nomination and Governance Committee Report on page 103.
Following appointment by the Board, all Directors are, in accordance with the Articles of Association, subject to re-election at the following Annual General Meeting ('AGM'). In accordance ZLWKRXUSUDFWLFHVLQFHDQGWKH provisions of the Code, all Directors submit to re-election at each AGM.
The expectation is that non-executive Directors would serve for a term of six years and may also be invited to serve an additional period thereafter, generally not extending beyond nine years in total. After three years' service, and again after six years' service, each non-executive Director's performance is reviewed by the Nomination and Governance Committee, with a view to recommending to the Board whether a further period of service is appropriate, subject to the usual annual approval by shareholders at the AGM.
The terms and conditions of appointment of non-executive Directors are set out in their letters of appointment, which are available for inspection at the Company's UHJLVWHUHGRɝFHGXULQJQRUPDORɝFH hours and at the AGM of the Company.
Details of the length of tenure of each Director on the Board is set out in the Nomination and Governance Committee Report on page 102.
New non-executive Directors undertake a structured induction process which includes a series of meetings with Group and divisional management, detailed divisional presentations, visits to key VXEVLGLDU\ORFDWLRQVDQGDEULHȴQJZLWK the external auditor.
The Chairman invites external experts to attend certain Board meetings to address the Board on developments in corporate governance, risk management and executive remuneration and on relevant industry and sectoral matters.
The Chairman and Company Secretary review Directors' training needs, in conjunction with individual Directors, and match those needs with appropriate external seminars and speakers. The Chairman also discusses individual training and development requirements for each Director as part of the annual evaluation process and Directors are encouraged to undertake appropriate training on relevant matters. In addition, a non-executive Director electronic library is available which is regularly updated with relevant publications and changes in legislation.
Non-executive Directors are expected to meet individually during the year, outside of Board meetings, with members of senior management throughout the Group and to visit a number of subsidiaries to familiarise themselves with the business in more detail than is possible during Board meetings.
All Directors are encouraged to avail of opportunities to hear the views of and meet with the Group's shareholders and analysts. The section on 'Relations ZLWK6KDUHKROGHUVȇRQSDJHJLYHV further information on opportunities for Directors to meet with the Group's shareholders.
The Board has carried out its annual evaluation of the independence of each of its non-executive Directors, taking account of the relevant provisions of the Code, namely whether the Directors are independent in character and judgment and free from relationships or circumstances which are likely to DHFWRUFRXOGDSSHDUWRDHFW the Directors' judgment.
7KH%RDUGLVVDWLVȴHGWKDWHDFKRIWKH FXUUHQWQRQH[HFXWLYH'LUHFWRUVIXOȴOVWKH independence requirements of the Code.
In relation to Róisín Brennan, who has now served as a Director for nine and a half years, the Board is entirely VDWLVȴHGWKDWVKHFRQWLQXHVWREHIXOO\ independent in the discharge of her responsibilities as a Director.
John Moloney has been Chairman of the Company since September 2014. On his appointment as Chairman, Mr Moloney met the independence criteria as set out in the Code. Thereafter, as noted in the Code, the test of independence is not appropriate in relation to the Chairman.
While Mr Moloney holds several other directorships outside of the DCC Group, WKH%RDUGLVVDWLVȴHGWKDWWKHVHGRQRW interfere with the discharge of his duties to DCC.
A schedule of Board and Committee meetings is circulated to the Board for the following two years, which includes the key agenda items for each meeting. Board papers are circulated electronically in the week preceding the meeting. During the year ended 31 March 2015, the Board held thirteen meetings. Individual attendance at these meetings and attendance at Committee meetings is set out in the table opposite. There is regular contact as required between meetings in order to progress the Group's business.
The key recurrent Board agenda themes are divided into normal business (which LQFOXGHVEXGJHWVȴQDQFLDOVWDWHPHQWV investor relations, human resources and governance, risk and compliance) and developmental issues (which include strategy, acquisitions, sectoral and divisional reviews, succession planning, management talent development and Directors' education). The Board also conducts a detailed review of postacquisition business performance.
One and a half days of a two day Board meeting each December are devoted exclusively to strategy and three year plans. During the year under review, the Board devoted substantial time outside its December meeting to strategic development issues, including in Energy DQRYHUDOOVWUDWHJ\XSGDWHDQGVSHFLȴF reviews of the Fuel Card and the Retail operations, in Technology an overall VWUDWHJ\XSGDWHDQGDVSHFLȴFUHYLHZ of the French businesses and in +HDOWKFDUHDVSHFLȴFUHYLHZRIWKH DCC Vital businesses and new product development in DCC Health & Beauty.
| Board | Audit Committee | Remuneration Committee |
Nomination and Governance Committee |
|||||
|---|---|---|---|---|---|---|---|---|
| Director | A | B | A | B | A | B | A | B |
| John Moloney1 | 13 | 13 | 2 | 2 | 5 | 5 | ||
| Tommy Breen | 13 | 13 | – | – | – | – | – | – |
| Róisín Brennan2 | 13 | 13 | 4 | 4 | 3 | 3 | 2 | 2 |
| David Byrne | 13 | 13 | – | – | 7 | |||
| David Jukes3 | 1 | 1 | – | – | – | – | – | – |
| Pamela Kirby4 | 13 | 12 | – | – | 5 | 5 | – | – |
| Jane Lodge | 13 | 13 | – | – | – | – | ||
| Donal Murphy | 13 | 13 | – | – | – | – | – | – |
| Fergal O'Dwyer | 13 | 13 | – | – | – | – | – | – |
| Leslie Van De Walle | 13 | 13 | ||||||
| Michael Buckley5 | – | – | 3 | 3 | 4 | 4 | ||
| Kevin Melia | 4 | 3 | 2 | 2 | – | – | – | – |
Column A indicates the number of meetings held during the period the Director was a member of the Board and/or Committee.
Column B indicates the number of meetings attended during the period the Director was a member of the Board and/or Committee.
7KH%RDUGVFKHGXOHLQFOXGHVDVLJQLȴFDQW agenda item on succession planning and management talent development. Against a template agreed by the Chief Executive and the Nomination and Governance Committee, the Chief Executive brings a detailed plan for review by that Committee. At an immediately subsequent Board meeting the plan is presented to the Board, discussed and approved.
The non-executive Directors meet a number of times each year without executives being present.
The primary function of the Audit Committee is to assist the Board in IXOȴOOLQJLWVȴQDQFLDODQGULVNRYHUVLJKW responsibilities. Further details of the activities of the Audit Committee are VHWRXWLQLWV5HSRUWRQSDJHVWR
The Remuneration Committee is responsible for determining the Remuneration Policy and conditions of employment for executive Directors and senior management. Further details of the activities of the Remuneration Committee are set out in the Remuneration 5HSRUWRQSDJHVWR
The Nomination and Governance Committee is responsible for considering the size, composition and structure of the Board and succession planning requirements and for monitoring the Company's compliance with corporate governance, legal and best practice requirements. Further details of the activities of the Nomination and Governance Committee are set out in its Report on pages 101 to 104.
The Chief Executive has day to day management responsibility for the running of the Group's operations and for the implementation of Group strategy and policies agreed by the Board. The Chief Executive also has a key role in the process for the setting and review of strategy. The Chief Executive instils the Company's culture and standards, which include appropriate corporate governance throughout the Group. In executing his responsibilities, the Chief Executive is supported by the &KLHI)LQDQFLDO2ɝFHUDQGWKH&RPSDQ\ Secretary, who, together with the Chief Executive, are responsible for ensuring that high quality information is provided WRWKH%RDUGRQWKH*URXSȇVȴQDQFLDODQG strategic performance.
The executive Directors support the Chief Executive in devising and executing strategy and in overseeing the operational performance of the whole business.
The responsibilities of the Executive Risk Committee are set out in the Risk Report on page 11.
The Senior Management Group reports to the Chief Executive at weekly management meetings.
The Sustainability Committee is responsible for monitoring developments in corporate sustainability and identifying how these can be used to augment and strengthen our businesses.
It had been the Company's practice since 2009 to put the Remuneration Report to an advisory, non-binding shareholder vote at the AGM.
At the 2014 AGM, two separate advisory, non-binding resolutions on the Remuneration Policy and on the Annual Report on Remuneration were put to shareholders.
At the 2015 AGM, the Annual Report on Remuneration will be put to an advisory, non-binding shareholder vote. As the Remuneration Policy remains unchanged, it will not be put to a shareholder vote.
Details of the Directors' interests in DCC shares are set out in the Remuneration Report on pages 97 to 99.
The Board has adopted the DCC Share Dealing Policy which applies to dealings in DCC shares by the Directors and Company Secretary of DCC, directors of all Group companies and all DCC Head 2ɝFHHPSOR\HHV7KH3ROLF\LVEDVHG on the Model Code, as set out in the Listing Rules of the UK Listing Authority. Under the Policy, Directors and relevant executives are required to obtain clearance from the Chairman or Chief Executive before dealing in DCC shares and are prohibited from dealing in the shares during prohibited periods as GHȴQHGE\WKH/LVWLQJ5XOHV
ΖQDGGLWLRQWKH3ROLF\VSHFLȴHVSUHIHUUHG periods for share dealing by Directors and relevant executives, being the four 21 day periods following the updating of the market on the Group's trading position through the preliminary results
announcement in May, the Interim Management Statement in July (at the AGM), the interim results announcement in November and the Interim Management Statement in January/February.
The Board is responsible for the Group's system of risk management and internal control. It is designed to manage rather than eliminate the risk of failure to achieve business objectives and provides reasonable but not absolute assurance against material misstatement or loss. Details in relation to the Group's risk management structures are set out in the Risk Report on page 10.
The Board has delegated responsibility for the ongoing monitoring of the HHFWLYHQHVVRIWKLVV\VWHPWRWKH\$XGLW Committee. Details in relation to the Audit Committee's work in this regard are set out LQWKH\$XGLW&RPPLWWHH5HSRUWRQSDJH
In accordance with the FRC guidance for directors on internal control published in October 2005, 'Internal Control: Revised Guidance for Directors on the Combined Code' which applies to DCC for the year HQGHG0DUFKWKH%RDUGFRQȴUPV that there is an ongoing process for identifying, evaluating and managing any VLJQLȴFDQWULVNVIDFHGE\WKH*URXSWKDW it has been in place for the year under review and up to the date of approval of WKHȴQDQFLDOVWDWHPHQWVDQGWKDWWKLV process is regularly reviewed by the Board.
The Board receives reports at each meeting from the Chairman of the Audit Committee on its activities and in addition has considered a report from the Audit Committee on the conduct of and the ȴQGLQJVDQGDJUHHGDFWLRQVIURPWKH annual assessment of risk management and internal control.
Further details on this annual assessment are set out in the Audit Committee Report RQSDJH
Revised guidance, entitled 'Guidance on Risk Management, Internal Control and Related Financial and Business Reporting' was issued by the FRC in September 2014 and applies to accounting periods beginning on or after 1 October 2014. We have considered this revised Guidance in the planning of risk management activities LQWKHȴQDQFLDO\HDUWR0DUFK
7KHFRQVROLGDWHGȴQDQFLDOVWDWHPHQWV are prepared subject to the oversight DQGFRQWURORIWKH&KLHI)LQDQFLDO2ɝFHU ensuring correct data is captured from Group locations and all required information for disclosure in the FRQVROLGDWHGȴQDQFLDOVWDWHPHQWVLV provided. A control framework has been put in place around the recording of appropriate eliminations and other DGMXVWPHQWV7KHFRQVROLGDWHGȴQDQFLDO statements are reviewed by the Audit Committee and approved by the Board.
The Board conducts an annual evaluation of its own performance, that of each of its principal committees, the Audit, Remuneration and Nomination and Governance Committees, and that of Committee Chairmen and individual Directors.
In 2015, the entire performance HYDOXDWLRQSURFHVVZDVH[WHUQDOO\GHȴQHG and conducted by the ICSA, in accordance with the requirement, under Provision %RIWKH&RGHWRKDYHLWH[WHUQDOO\ facilitated every three years.
The various phases of the external performance evaluation process which commenced in early March and concluded in May 2015 are set out below:
'&&SOFɄ\$QQXDO5HSRUWDQG\$FFRXQWV 75
All action items arising from the 2014 evaluation were substantially completed during the year ended 31 March 2015.
DCC recognises the importance of communications with shareholders. Presentations are made to both existing and prospective institutional shareholders, principally after the release of the interim and annual results. DCC issues an Interim Management Statement twice yearly, typically in January/February and July. Major DFTXLVLWLRQVDUHDOVRQRWLȴHGWRWKHPDUNHW and the Company's website www.dcc.ie provides the full text of all press releases. The website also contains annual and interim reports and incorporates audio and slide show investor presentations.
The Board is kept informed of the views of shareholders through the executive Directors' attendance at investor presentations and results presentations. Furthermore, relevant feedback from such meetings, investor relations reports and brokers notes are provided to the entire Board on a regular basis.
On 4 June 2015, a Capital Markets Day will take place in the London Stock Exchange which will be attended by the Chairman and a number of the non-executive Directors. Most of DCC's top shareholders as well as various brokers, analysts and fund managers will be present at this Capital Markets Day. The previous Investor Day was held in June 2013.
The Company Secretary engages annually with proxy advisors in advance of the AGM.
The Company's AGM provides shareholders with the opportunity to question the Chairman, the Committee Chairmen and the Board. Further details on the Company's AGM is set out in the 5HSRUWRIWKH'LUHFWRUVRQSDJH
DCC's Business Conduct Guidelines set out the Group's commitment to the highest standards of integrity and compliance. They have been circulated to employees across the Group and are also available on the Company's website www.dcc.ie. Further detail on this is provided in the 6XVWDLQDELOLW\5HSRUWRQSDJH
For the purposes of the European &RPPXQLWLHV'LUHFWLYH(& Regulations 2009, details of substantial shareholdings in the Company and details in relation to the purchase of the Company's own shares are set out in the Report of the Directors on pages 105 to 107.
The Company's business activities, WRJHWKHUZLWKWKHIDFWRUVOLNHO\WRDHFW its future development, performance and position are set out in the Chief Executive's Review on pages 4 to 5. 7KHȴQDQFLDOSRVLWLRQRIWKH&RPSDQ\ LWVFDVKȵRZVOLTXLGLW\SRVLWLRQDQG borrowing facilities are described in the )LQDQFLDO5HYLHZRQSDJHVWR
ΖQDGGLWLRQQRWHWRWKHȴQDQFLDO statements include the Company's objectives, policies and processes for PDQDJLQJLWVFDSLWDOLWVȴQDQFLDOULVN management objectives, details of its ȴQDQFLDOLQVWUXPHQWVDQGKHGJLQJ activities and its exposures to credit risk and liquidity risk. The Company has FRQVLGHUDEOHȴQDQFLDOUHVRXUFHVDQGD broad spread of businesses with a large number of customers and suppliers across GLHUHQWJHRJUDSKLFDUHDVDQGLQGXVWULHV
Having assessed the relevant business risks, the Directors believe that the Company is well placed to manage its business risks successfully. The Directors have a reasonable expectation that the Company, and the Group as a whole, have adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in SUHSDULQJWKHȴQDQFLDOVWDWHPHQWV
DCC has complied, throughout the year ended 31 March 2015, with the provisions set out in the 2012 Code.
The Audit Committee comprises four independent non-executive Directors, Jane Lodge (Chairman), Róisín Brennan, David Jukes (joined 31 March 2015) and Leslie Van de Walle. The members of the Committee have significant financial and business experience. Further biographical details regarding the members of the Audit Committee are set out on pages 70 to 71.
As Chairman of DCC's Audit Committee, I am pleased to present the report of the Committee for the year ended 31 March 2015 which has been prepared by the Committee and approved by the Board.
The responsibilities of the Audit Committee are summarised in the table RQSDJHDQGDUHVHWRXWLQIXOOLQLWV Terms of Reference, which are available on the DCC website www.dcc.ie.
This report details how the Audit Committee has met its responsibilities under its Terms of Reference and under the 2012 UK Corporate Governance Code ('the 2012 Code') and the Guidance on Audit Committees, which applied to '&&ȇVȴQDQFLDO\HDUHQGHG0DUFK
In particular, the Audit Committee has concluded and has advised the Board accordingly that the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's
performance, business model and strategy. The work done in this regard LVVHWRXWRQSDJH
This report also sets out, at page 79, WKHVLJQLȴFDQWLVVXHVWKH\$XGLW&RPPLWWHH KDVFRQVLGHUHGLQUHODWLRQWRWKHȴQDQFLDO statements and how these issues were addressed.
During the year, the Committee engaged in a formal tender process for the H[WHUQDODXGLWRIWKH*URXSȇVȴQDQFLDO statements in respect of the year to 0DUFK)ROORZLQJWKHFRQFOXVLRQ of this process, the Board approved the appointment of KPMG as auditors to the company. This appointment will be put to shareholders for their approval at the 2015 Annual General Meeting. Full details of the tender process are set out on SDJHVWR7KHDXGLWRIWKH Annual Report and Accounts will therefore be the last external audit to be conducted by PricewaterhouseCoopers ('PwC'). I would like to record my thanks to 3Z&DQGWKHLUSDUWQHUVDQGVWDIRUWKHLU many years of excellent service to DCC.
One of the Audit Committee's key responsibilities is to review the Company's internal control and risk management systems. Further details in regard to WKHVHPDWWHUVDUHVHWRXWRQSDJH
In September 2014, the FRC issued a revised UK Corporate Governance Code ('the 2014 Code') and new guidance entitled 'Guidance on Risk Management, Internal Control and Related Financial and Business Reporting', both of which ZLOODSSO\WR'&&ȇVȴQDQFLDO\HDUWR 0DUFK
The Committee has reviewed the 2014 Code and the new Guidance and is VDWLVȴHGWKDW'&&ZLOOEHIXOO\FRPSOLDQW ZLWKWKHPIRUWKHȴQDQFLDO\HDUWR 0DUFK
The Board, the Audit Committee and Group management are fully committed WRFRQWLQXRXVLPSURYHPHQWRIȴQDQFLDO and risk management within the Group.
On behalf of the Audit Committee
Chairman, Audit Committee 0D\
The 2012 Code requires that the Board should present a fair, balanced and understandable assessment of the Company's position and prospects DQGVSHFLȴFDOO\WKDWWKH\FRQVLGHU that the annual report and accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's performance, business model and strategy.
At the request of the Board, the Committee considered whether the 2015 Annual Report and Accounts met the requirements.
The Committee considered and discussed with management the established and documented process put in place by management for the preparation of the 2015 Annual Report and Accounts, in particular timetable, co-ordination and review activities. The Committee also noted the formal process undertaken by the external auditors. This enabled the Committee, and then the Board, to conclude that the Annual Report, taken as a whole, is fair, balanced and understandable and that it provides the necessary information for shareholders to assess performance, business model and strategy.
In regard to the Annual Report and Accounts, the Committee assesses whether suitable accounting policies have been adopted and whether management has made appropriate estimates and judgements. The Committee obtains support from the external auditors in making these assessments.
The Committee pays particular attention to matters it considers to be important by virtue of their impact on the Group's results and particularly those which involve a relatively higher level of complexity, judgement or estimation by management. The table on page 79 VHWVRXWWKHVLJQLȴFDQWLVVXHVFRQVLGHUHG by the Committee in relation to the ȴQDQFLDOVWDWHPHQWVIRUWKH\HDU ended 31 March 2015.
0DQDJHPHQWFRQȴUPHGWRWKH&RPPLWWHH that they were not aware of any material PLVVWDWHPHQWVLQWKHȴQDQFLDOVWDWHPHQWV DQG3Z&FRQȴUPHGWKDWWKH\KDGIRXQG no material misstatement in the course of their work.
The Audit Committee has been delegated responsibility by the Board for the ongoing PRQLWRULQJRIWKHHHFWLYHQHVVRIWKH Group's system of risk management and internal control.
The Audit Committee receives a report at each meeting on the activities of the Group Internal Audit function, including internal audits, IT audits and special investigations. Reports are also received from the Risk Committee and the Enterprise Risk Management and Group Compliance functions. Further details on the Group's risk management framework are set out in the Risk Report on page 10.
The Chairman of the Audit Committee reports to the Board at each meeting on the Committee's activities in regard to the Group's risk management and internal control systems. The Board also receives a summary risk report, prepared by the Head of Enterprise Risk Management, at each Board meeting and receives a report on Health, Safety and Environmental matters on a quarterly basis.
The Audit Committee conducts, on behalf of the Board, the annual assessment of the operation of the Group's system of risk management and internal control. This assessment was based on a detailed review carried out by Enterprise Risk Management and Group Internal Audit, utilising the risk register process described in the Risk Report on page 10. This review took account of the principal business risks facing the Group, the controls in place to manage those risks LQFOXGLQJȴQDQFLDORSHUDWLRQDODQG compliance controls) and the procedures in place to monitor them. Where areas IRULPSURYHPHQWKDYHEHHQLGHQWLȴHG the necessary actions in respect of the relevant control procedures have been or are being taken.
The Chairman of the Audit Committee has reported to the Board on the conduct RIDQGWKHȴQGLQJVDQGDJUHHGDFWLRQV from this annual assessment of risk management and internal control.
| Goodwill | \$VVHWRXWLQQRWHWRWKHURXSȴQDQFLDOVWDWHPHQWVWKHURXSKDGJRRGZLOORIePLOOLRQDVDW0DUFK In order to satisfy itself that this balance was appropriately stated, the Committee considered the impairment reviews carried out by management. Impairment reviews are carried out annually using the carrying values of subsidiaries at 31 December and the latest three year plan information. |
|---|---|
| In performing their impairment reviews, management determined the recoverable amount of each cash generating XQLWȆ&8ȇ DQGFRPSDUHGWKLVWRWKHFDUU\LQJDPRXQW7KHUHFRYHUDEOHDPRXQWRIHDFK&8LVGHȴQHGDVWKHKLJKHU RILWVIDLUYDOXHOHVVFRVWVWRVHOODQGLWVYDOXHLQXVH0DQDJHPHQWXVHVWKHSUHVHQWYDOXHRIIXWXUHFDVKȵRZVWR determine the value in use. In calculating the value in use, management judgement is required in forecasting cash ȵRZVRI&*8ȇVLQGHWHUPLQLQJWKHORQJWHUPJURZWKUDWHDQGVHOHFWLQJDQDSSURSULDWHGLVFRXQWUDWH |
|
| 0DQDJHPHQWUHSRUWHGWRWKH&RPPLWWHHWKDWIXWXUHFDVKȵRZVRIHDFK&8KDGEHHQHVWLPDWHGEDVHGRQWKHPRVW XSWRGDWHEXVLQHVVIRUHFDVWVDQGGLVFRXQWHGXVLQJGLVFRXQWUDWHVWKDWUHȵHFWHGWKHURXSȇVHVWLPDWHGEHIRUHWD[ average cost of capital. Sensitivity analysis was considered on the discount rate and the long term growth rate. The Committee constructively challenged management's key assumptions to understand their impact on the CGU's UHFRYHUDEOHDPRXQWV7KH&RPPLWWHHZDVVDWLVȴHGWKDWWKHVLJQLȴFDQWDVVXPSWLRQVXVHGIRUGHWHUPLQLQJWKH UHFRYHUDEOHDPRXQWKDGEHHQDSSURSULDWHO\VFUXWLQLVHGFKDOOHQJHGDQGZHUHVXɝFLHQWO\UREXVW\$ePLOOLRQ impairment charge was made against the carrying value of goodwill relating to a small subsidiary in the Healthcare division. The Committee agreed with management's results that all of the Group's other CGU's displayed an excess of value in use over their carrying values. |
|
| Exceptional Items |
During the year, the Committee considered a detailed paper prepared by management in respect of the Group's DFFRXQWLQJSROLF\LQUHODWLRQWRH[FHSWLRQDOLWHPV)ROORZLQJGLVFXVVLRQWKH&RPPLWWHHFRQȴUPHGWKHDSSURSULDWHQHVV RIWKHDFFRXQWLQJSROLF\ZKLFKLVVHWRXWRQSDJH7KH&RPPLWWHHKDVFRQFOXGHGWKDWWKHLWHPVGLVFORVHGLQWKH *URXSȴQDQFLDOVWDWHPHQWVDVH[FHSWLRQDOFRPSOLHGZLWKWKHDFFRXQWLQJSROLF\ |
| Other Matters | In addition, the Committee has considered a number of other judgements which have been made by management LQFOXGLQJUHYHQXHUHFRJQLWLRQȴQDQFLDOLQVWUXPHQWVEXVLQHVVFRPELQDWLRQVDQGFRQWLQJHQWFRQVLGHUDWLRQ provisioning for impairment of trade receivables and inventories and tax provisioning. |
| Going Concern | 7KH\$XGLW&RPPLWWHHFRQVLGHUHGDUHSRUWRQ*RLQJ&RQFHUQSUHVHQWHGE\WKH&KLHI)LQDQFLDO2ɝFHU |
| This report took account of the Guidance on Going Concern and Liquidity Risk for directors of listed companies (2009), ZKLFKDSSOLHVIRU'&&ȇVȴQDQFLDO\HDUHQGHG0DUFKWKHEXGJHWDQDO\VLVWKHERUURZLQJ UHTXLUHPHQWVRIWKH*URXSOLDELOLW\PDQDJHPHQWFRQWLQJHQWOLDELOLWLHVDQGȴQDQFLDOULVNPDQDJHPHQW |
The Audit Committee oversees the relationship with the external auditor including approval of the external auditor's fee proposals.
PricewaterhouseCoopers ('PwC') were the external auditors for the Company and they conducted the audit in respect of the year ended 31 March 2015. KPMG have been appointed as the external auditor IRUWKH\HDUWR0DUFKIROORZLQJ a formal external audit tender process, which is detailed below.
The Audit Committee reviewed the full PwC external audit plan at the meeting held in October 2014 and reviewed a brief update at the meeting in March 2015, prior to the commencement of the audit. Following the audit, the Audit Committee met with PwC to review the ȴQGLQJVIURPWKHDXGLWRIWKH*URXS ȴQDQFLDOVWDWHPHQWV
The Audit Committee reviews the HHFWLYHQHVVRIWKHH[WHUQDODXGLW process. As part of this process, audit HHFWLYHQHVVTXHVWLRQQDLUHVDUH
completed by Group and subsidiary ȴQDQFHH[HFXWLYHVDQGWKHUHVSRQVHVDUH summarised by management in a report to the Audit Committee. Based on its consideration of this report and its own interaction with PwC, in the form of reports and meetings, the Audit Committee concludes on the HHFWLYHQHVVRIWKHH[WHUQDODXGLW process and reports its conclusions to the Board.
The Audit Committee meets with the external auditors on a regular basis without the presence of management.
In accordance with its Terms of Reference, the Audit Committee is required to make a recommendation to the Board on the appointment, reappointment and removal of the external auditor.
As noted in last year's Audit Committee Report, the Audit Committee was keeping developments at EU level in regard to audit tenure under close review. Taking account of these developments, a decision was taken in mid-2014 to commence a formal
external audit tender process to select a new external auditor for the year to 0DUFK
A request for proposal was sent to three PDLQH[WHUQDODXGLWȴUPVLQ-DQXDU\ It was agreed, in light of the rules emerging from the EU, that PwC would not be invited to take part in the tender process.
Detailed tender proposals were received IURPWKHWKUHHȴUPVLQ)HEUXDU\ (DFKRIWKHVHȴUPVWKHQPDGHGHWDLOHG presentations to an executive committee FRPSULVLQJWKH&KLHI)LQDQFLDO2ɝFHUWKH Company Secretary, the Head of Group Accounting and the Head of Internal Audit.
Following consultation with the Audit Committee in regard to the outcome of these presentations, it was agreed WRLQYLWHWZRRIWKHȴUPVWRPDNHȴQDO presentations to the Audit Committee in March 2015. These presentations were also attended by the Chairman of the Board, the Chief Executive and the members of the executive committee noted above.
)ROORZLQJWKHȴQDOSUHVHQWDWLRQVDQG further discussion, the Audit Committee decided to recommend to the Board that KPMG be appointed as the external auditors. The Board accepted this recommendation and appointed KPMG as the external auditor for the year to 0DUFK7KLVDSSRLQWPHQWZLOOEH put to shareholders for their approval at the 2015 Annual General Meeting.
3Z&KDYHFRQȴUPHGWKDWWKHUHDUH no matters in connection with their resignation as auditors which need to be brought to the attention of shareholders.
The Audit Committee has a process in place to ensure that the independence of the audit is not compromised, which includes monitoring the nature and extent of services provided by the external auditor through its annual review of fees paid to the external auditor for audit and non-audit work and seeking FRQȴUPDWLRQIURPWKHH[WHUQDODXGLWRU that they are in compliance with relevant ethical and professional guidance and that, in their professional judgment, they are independent from the Group.
The Audit Committee has approved a policy on the employment of employees or former employees of the external auditor. This policy provides that the Chief Executive will consult with the Chairman of the Audit Committee prior to the appointment to a senior ȴQDQFLDOUHSRUWLQJSRVLWLRQWRDVHQLRU PDQDJHPHQWUROHRUWRD&RPSDQ\RɝFHU role of any employee or former employee of the external auditor, where such a person was a member of the external audit team in the previous two years.
Audit vs Non-Audit Fees
The Audit Committee has approved a policy on the engagement of the external auditor to provide non-audit services, which provides that the external auditor is permitted to provide non-audit services that are not, or are not perceived to be, LQFRQȵLFWZLWKDXGLWRULQGHSHQGHQFH
providing they have the skill, competence and integrity to carry out the work and are considered to be the most appropriate to undertake such work in the best interests of the DCC Group. The policy also provides that any non-audit work which would result in the aggregate of non-audit fees paid to the external auditor exceeding 50% of annual audit fees must be approved in advance by the Chief Executive and the Chairman of the Audit Committee. Details of the amounts paid to the external auditor during the year for non-audit services are set out in note 7 on page 141. A summary RIDXGLWDQGQRQDXGLWIHHVRYHUWKHȴYH year period from 2011 to 2015 inclusive is set out in the table below.
The Audit Committee approves the annual work programme for the Group Internal Audit function, ensures that it is adequately resourced and has appropriate standing within the Group.
External Quality Assessments ('EQA') by independent external consultants are FRQGXFWHGDWOHDVWHYHU\ȴYH\HDUVWR FRQȴUPFRPSOLDQFHE\WKH*URXSΖQWHUQDO Audit function with the International Professional Performance Framework of the Institute of Internal Auditors. The most recent EQA review was successfully completed by KPMG in 2011 and the next EQA review is planned for late 2015. An internal review against the same standards is completed on an annual basis.
Group Internal Audit uses the market leading audit management system, Teammate, to prepare workpapers and audit reports and to record and monitor progress with respect to corrective action plans. The Teammate system is used as a central platform for all related assurance activities including the recording and monitoring of corrective actions arising from Group HSE, Group Compliance, external audit and management self-assessment reviews.
Audit £'000 Non-audit £'000
The COBIT ('Control Objectives for Information and related Technology') based IT standards framework previously developed by Group Internal Audit and Group IT continues to be used to underpin the integration of new acquisitions.
The Group Internal Audit function incorporates a dedicated IT audit team, which has been further resourced to ensure greater use of data analytics throughout the audit process.
The Audit Committee receives regular reports from Group Internal Audit, which LQFOXGHVVXPPDULHVRIWKHNH\ȴQGLQJV of each audit in the period.
The Audit Committee ensures co-ordination between Group Internal Audit and the external auditor, with four meetings per annum held to maximise WKHEHQHȴWVIURPFOHDUFRPPXQLFDWLRQ and co-ordinated activities.
The Head of Internal Audit has direct access to the Chairman of the Audit Committee and the Audit Committee meets with the Head of Internal Audit on a regular basis without the presence of management.
The Audit Committee is responsible for ensuring that the Group maintains suitable whistleblowing arrangements for its employees. The Committee reviewed those arrangements during the year to ensure that they continue to meet the needs of the Group as it grows and develops into new geographies.
Composition
The Audit Committee comprises four independent non-executive Directors, Jane Lodge (Chairman), Róisín Brennan, David Jukes (joined 31 March 2015) and Leslie Van de Walle. Each member's length of tenure at 31 March 2015 is set out in WKHWDEOHRQSDJH%LRJUDSKLFDOGHWDLOV for these Directors are set out on pages WR7KH%RDUGLVVDWLVȴHGWKDW-DQH /RGJHKDVUHFHQWDQGUHOHYDQWȴQDQFLDO experience, as required by the Code, and that the members of the Audit Committee have an excellent mix of skills DQGH[SHUWLVHLQFRPPHUFLDOȴQDQFLDO and audit matters arising from the senior positions they hold or held in other organisations.
The Committee met six times during the year ended 31 March 2015 and there was full attendance by all members of the Committee (excluding David Jukes, who only joined on 31 March 2015).
The Chief Executive, Chief Financial 2ɝFHU+HDGRI(QWHUSULVH5LVN Management, Head of Internal Audit, Head of Group Sustainability, Head of Group Compliance, Chief Information 2ɝFHURWKHU'LUHFWRUVDQGH[HFXWLYHV and representatives of the external auditor are invited to attend all or part of any meeting. The Company Secretary is the secretary to the Audit Committee.
The Committee also meets separately a number of times each year with the external auditor and with the Head of Internal Audit, without other executive management being present.
As detailed on page 75, the Board conducts an annual evaluation of its own performance and that of its Committees, Committee Chairmen and individual Directors. In 2015, this process was
externally facilitated by the ICSA, in accordance with the requirement, under 3URYLVLRQ%RIWKH&RGHWRKDYHLW externally facilitated every three years.
The conclusion from this process was that the performance of the Committee and of the Chairman of the Committee was satisfactory and that no changes were necessary to the Committee's Terms of Reference.
The Chairman of the Audit Committee reports to the Board at each meeting on the activities of the Committee.
The Chairman of the Audit Committee attends the Annual General Meeting to answer questions on the report on the Committee's activities and matters within the scope of the Committee's responsibilities.
The Remuneration Committee comprises three independent non-executive Directors, Leslie Van de Walle (Chairman), David Byrne and Pam Kirby and the Chairman of the Board, John Moloney. The members of the Committee have significant financial and business experience, including in the area of executive remuneration. Further biographical details regarding the members of the Remuneration Committee are set out on pages 70 to 71.
As Chairman of DCC's Remuneration Committee, I am pleased to present the Remuneration Report for the year ended 31 March 2015 which has been prepared by the Committee and approved by the Board.
The responsibilities of the Remuneration Committee are summarised in the table RQSDJHDQGDUHVHWRXWLQIXOOLQLWV Terms of Reference, which are available on the DCC website www.dcc.ie.
DCC's Remuneration Policy seeks to incentivise executive Directors and other senior Group executives to create shareholder value and consequently their remuneration is weighted towards performance related elements with targets incentivising delivery of strategy over the short and long term. The full Remuneration Policy, which was approved by shareholders at the 2014 Annual General Meeting and remains unchanged, LVVHWRXWRQSDJHVWR
DCC achieved a very strong result in the year to 31 March 2015, with operating SURȴWJURZWKLQHDFKRIWKHIRXUGLYLVLRQV DQGRYHUDOO*URXSRSHUDWLQJSURȴWIURP continuing activities being 10.5% ahead of the prior year (11.9% on a constant currency basis). Adjusted earnings per VKDUHJUHZE\RQDFRQWLQXLQJEDVLV and it is proposed that the dividend for the year will be increased by 10%.
Return on capital employed, a key metric IRU'&&LQFUHDVHGWRIURP in the prior year, and is again substantially in excess of the Group's cost of capital.
DCC has generated a total shareholder UHWXUQRIRYHUWKHODVWȴYH\HDUV DQGRYHUWKHODVWWHQ\HDUVDV GHPRQVWUDWHGLQWKHFKDUWVRQSDJH
The bonuses earned by the executive Directors in respect of the year ended 31 March 2015 are set out on page 93. 7KH\SULPDULO\UHȵHFWWKHJURZWKRI in Group adjusted earnings per share in the year and achievement of a range of developmental and personal objectives. The bonuses earned represent DSSUR[LPDWHO\RIWKHERQXVSRWHQWLDO for the year for the executive Directors.
At the 2014 Annual General Meeting, shareholders approved a series of amendments to the DCC plc Long Term Incentive Plan 2009 ('LTIP') relating to the quantum of awards, the performance conditions, the vesting period and threshold vesting levels. Full details of the amendments were set out in the Remuneration Report in the 2014 Annual Report.
The awards made to the executive Directors in November 2014, as set RXWRQSDJHZHUHPDGHXQGHUWKH amended LTIP.
In December 2014, the Remuneration Committee determined that 59.4% of the share options granted in November 2011 under the LTIP had vested, based on performance under the TSR and EPS conditions (this was the same as the estimated vesting of 59.4% included in last year's Report). Further details on this vesting are set out on page 95.
The extent of vesting of the share options granted in November 2012 will be determined by the Remuneration Committee in December 2015. It is currently estimated that 100% of the share options granted will vest.
Further details in relation to the LTIP DUHVHWRXWRQSDJH
In last year's report, I noted that in October 2013, the Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013 WKHȆ8.5HJXODWLRQVȇ FDPHLQWRHHFWLQ the UK. While DCC, as an Irish incorporated company, is not subject to these regulatory requirements, we recognised that they represented best practice in remuneration reporting and, given our listing on the London Stock Exchange, we substantially applied the UK Regulations to the 2014 Remuneration Report on a voluntary basis and have adopted the same approach in respect of this year's Report.
At the 2014 Annual General Meeting, separate resolutions on the Remuneration Policy and on the Annual Report on Remuneration were put to shareholders, on an advisory rather than on a binding basis. Both resolutions were passed by shareholders. The results of the votes are summarised in the chart below and set out in detail in the table on page 100.
The Annual Report on Remuneration, as set out on pages 92 to 99, will be put to an advisory vote by shareholders at the 2015 Annual General Meeting. As the Remuneration Policy remains unchanged since last year, it is not required, in accordance with the UK Regulations, to be put to shareholders at the 2015 Annual General Meeting.
It is our intention to operate in line with the approved Policy. We welcome and will consider any shareholder feedback on the Remuneration Policy and Annual Report on Remuneration.
ΖDPVDWLVȴHGWKDWWKH5HPXQHUDWLRQ Committee has implemented the Group's existing remuneration policy in the year ended 31 March 2015 in a manner that SURSHUO\UHȵHFWVWKHSHUIRUPDQFHRI the Group in the year.
On behalf of the Remuneration Committee.
Chairman, Remuneration Committee 0D\
DCC's TSR Vs the FTSE 350 since 1 April 2005
2005 2006 2011 2012 2013 2014 2015 2007 2008 2009 2010
% For % Against
The charts above show the growth of a hypothetical €100 holding in DCC plc shares since 1 April 2010 and 1 April 2005 respectively, relative to the FTSE 350 index.
| Remuneration Policy 2014 |
1.1 | 98.9 |
|---|---|---|
| Remuneration Report 2014 |
0.8 | 99.2 |
| Remuneration Report 2013 |
1.4 | 98.6 |
| Remuneration Report 2012 |
0.1 | 99.9 |
| Remuneration Report 2011 |
0.2 | 99.8 |
| Remuneration Report 2010 |
0.1 | 99.9 |
| Remuneration | ||
| Report 2009 | 0.1 | 99.9 |
Role and Responsibilities
DCC's Remuneration Policy ('the Policy'), which was approved by shareholders at the 2014 Annual General Meeting, was set out in full in the 2014 Annual Report and is reproduced below, subject only to the updating of the Scenarios Charts on page 90 and page and other minor references.
As an Irish incorporated company, DCC is not required to comply with the UK legislation which requires UK companies to submit their remuneration policies to a binding shareholder vote. However, we recognise the need for our remuneration policies, practices and reporting WRUHȵHFWEHVWFRUSRUDWHJRYHUQDQFHSUDFWLFHDQGWKHUHIRUHZHVXEPLWWHGWKH3ROLF\WRDQDGYLVRU\QRQELQGLQJYRWHDWWKH\$QQXDO General Meeting.
As the Remuneration Policy remains unchanged since last year, it is not required, in accordance with the UK Regulations, to be put to shareholders at the 2015 Annual General Meeting. The Company intends to operate its remuneration arrangements in line with the approved Remuneration Policy.
The Policy is designed and managed to support a high performance and entrepreneurial culture, taking into account competitive market positioning.
The Board seeks to align the interests of executive Directors and other senior Group executives with those of shareholders, within the framework set out in the UK Corporate Governance Code. Central to this policy is the Group's belief in long-term, performance based incentivisation and the encouragement of share ownership.
7KHEDVLFSROLF\REMHFWLYHLVWRKDYHRYHUDOOUHPXQHUDWLRQUHȵHFWSHUIRUPDQFHDQGFRQWULEXWLRQZKLOHKDYLQJEDVLFSD\UDWHVDQGWKHVKRUW term element of incentive payments at the median of a market capitalisation comparator group.
The Remuneration Committee seeks to ensure:
DCC's strategy of fostering entrepreneurship requires well designed incentive plans that reward the creation of shareholder value through organic and acquisitive growth while maintaining high returns on capital employed, strong cash generation and a focus on good risk management. The typical elements of the remuneration package for executive Directors and other senior Group executives are base pay, SHQVLRQDQGRWKHUEHQHȴWVDQQXDOSHUIRUPDQFHUHODWHGERQXVHVDQGSDUWLFLSDWLRQLQORQJWHUPSHUIRUPDQFHSODQVZKLFKSURPRWHWKH creation of sustainable shareholder value.
The Remuneration Committee takes external advice from remuneration consultants on market practice to ensure that remuneration structures continue to support the key remuneration policy objectives.
7KHSULPDU\FRPSDUDWRUJURXSIRUEHQFKPDUNLQJLVDJURXSRI)76(FRPSDQLHVRIZKRPKDYHPDUNHWFDSLWDOLVDWLRQVMXVWEHORZ DCC's and 30 of whom have market capitalisations just above DCC's (the 'market capitalisation comparator group').
The Remuneration Committee also considers it useful to use a set of other comparators as secondary references to ensure rigorous and comprehensive benchmarking, being the FTSE 250 and a group of Irish listed industrial companies which can be taken to be broadly comparable to DCC.
Key elements of pay of executive Directors and other senior Group management under the Policy are set out in the table below:
| Element and link to strategy | Operation | Maximum Opportunity | |
|---|---|---|---|
| Base Salary | |||
| Attract and retain skilled and experienced senior |
Base salaries are reviewed annually on 1 April. | No prescribed maximum base salary or maximum annual increase. |
|
| executives. | The factors taken into account include: – Role and experience – Company performance – Personal performance – Competitive market practice – Benchmarking, principally against the 'market capitalisation comparator group'. When setting pay policy, account is taken of movements in pay generally across the Group. |
General intention that any increases will be in line with the general increase across the Group. Increases may be higher in certain circumstances such as changes in role DQGUHVSRQVLELOLW\RUVLJQLȴFDQWFKDQJHV in market practice. |
|
| %HQHȴWV | |||
| To provide market competitive EHQHȴWV |
%HQHȴWVLQFOXGHWKHXVHRIDFRPSDQ\FDUOLIHGLVDELOLW\ cover, club subscriptions or cash equivalent. |
No maximum level has been set as payments depend on individual Director circumstances. |
|
| Annual Bonus | |||
| To reward the achievement of annual performance targets. |
Bonus payments to executive Directors and other senior Group executives are based upon meeting pre-determined targets for a number of key measures, including Group |
The maximum bonus potential, as a percentage of base salary, for the executive Directors is as follows: |
|
| HDUQLQJVDQGGLYLVLRQDORSHUDWLQJSURȴWDQGRYHUDOO contribution and attainment of personal objectives. The |
Executive Director % of Base Salary |
||
| contribution and personal targets are focused on areas such as delivery on strategy, organisational development, risk management and talent development/succession planning. |
Tommy Breen 120% |
||
| Donal Murphy 100% |
|||
| Fergal O'Dwyer 100% |
|||
| The measures, their weighting and the targets are reviewed on an annual basis. The current measures for the executive Directors, and their weighting, are set out on page 92. The targets are considered FRPPHUFLDOO\FRQȴGHQWLDODQGZLOOQRWEHGLVFORVHGRQD prospective basis, but may be disclosed retrospectively. |
The maximum bonus potential, as a percentage of base salary, for other senior Group executives ranges between 40% DQGRIEDVHVDODU\ |
||
| In regard to Mr. Breen, any actual bonus earned in excess of 100% of salary, once the appropriate tax and social security deductions have been made, will be invested in DCC shares which will be made available to him after three years, or on his employment terminating if earlier, together with accrued dividends. |
|||
| Bonus levels are determined by the Committee after the year end based on actual performance achieved. The Committee FDQDSSO\DSSURSULDWHGLVFUHWLRQLQVSHFLȴFFLUFXPVWDQFHV in respect of determining the bonuses to be awarded. In particular, the Committee has the discretion to reduce bonuses in the event that a predetermined target return on capital employed is not achieved. |
|||
| A formal clawback policy is in place for the executive Directors and other senior Group, divisional and subsidiary management, under which bonuses are subject to clawback for a period of WKUHH\HDUVLQWKHHYHQWRIDPDWHULDOUHVWDWHPHQWRIȴQDQFLDO VWDWHPHQWVRURWKHUVSHFLȴHGHYHQWV)XUWKHUGHWDLOVRQ FODZEDFNSROLF\DUHVHWRXWRQSDJH |
|||
| The Committee has discretion in relation to bonus payments to joiners and leavers. |
| Element and link to strategy | Operation | Maximum Opportunity | |
|---|---|---|---|
| Long Term Incentive Plan ('LTIP') | |||
| To align the interests of executives with those of the Group's shareholders and to UHȵHFWWKH*URXSȇVFXOWXUHRI long term performance based incentivisation. |
The LTIP provides for the Remuneration Committee to grant nominal cost options to acquire shares to Group employees, including executive Directors. 7KHYHVWLQJSHULRGLVQRUPDOO\ȴYH\HDUVIURPWKHGDWHRI grant, with the extent of vesting being determined over the ȴUVWWKUHH\HDUVEDVHGRQWKHSHUIRUPDQFHFRQGLWLRQVVHW out below. |
The market value of the shares subject to the options granted in any period of 12 months may not, at the date of the grant, exceed 200% of base pay. |
|
| In addition to the detailed performance conditions, an award ZLOOQRWYHVWXQOHVVWKH5HPXQHUDWLRQ&RPPLWWHHLVVDWLVȴHG WKDWWKH&RPSDQ\ȇVXQGHUO\LQJȴQDQFLDOSHUIRUPDQFHKDV shown a sustained improvement in the three year period since the award date. |
|||
| The extent of vesting for awards granted to participants will be determined by the Remuneration Committee, in its absolute discretion, based on the performance conditions set out below. |
|||
| Return on Capital Employed ('ROCE'): Up to 40% of an award will vest depending on ROCE achieved in excess of the Group's Weighted Average Cost of Capital ('WACC') over a three year period with the Remuneration Committee to set a range for threshold and maximum vesting at the time of each award in the light of GHYHORSPHQWDFWLYLW\LQFOXGLQJDQ\VLJQLȴFDQWFRUSRUDWH transactions, and three year plans for the Group. |
|||
| Percentage excess over WACC | % of total award vesting | ||
| Below % set as threshold | 0% | ||
| At % set as threshold | 10% | ||
| Between % set as threshold | 10%-40% | ||
| and % set as maximum | pro rata | ||
| Above % set as maximum | 40% | ||
| The range set will be disclosed in the Annual Report on Remuneration. The calculation of ROCE will be consistent with the Group |
|||
| ȴQDQFLDOVWDWHPHQWV | |||
Up to 40% of an award will vest depending on EPS growth over a three year period starting on 1 April in the year in which the award is granted compared with the change in the UK Retail Price Index ('RPI') as follows:
| of annualised change in RPI | % of total award vesting |
|---|---|
| Less than 3% | 0% |
| At 3% | 10% |
| ȂVSHFLȴHGPD[LPXP | 10%-40% pro rata |
| \$ERYHVSHFLȴHGPD[LPXP | 40% |
7KHLQWHQWLRQLVWKDWWKHVSHFLȴHGPD[LPXPSHUFHQWDJH (level of excess over RPI) will be set at the time of each award LQWKHOLJKWRIGHYHORSPHQWDFWLYLW\LQFOXGLQJDQ\VLJQLȴFDQW corporate transactions, and three year plans for the Group and prevailing business and economic circumstances. The range set will be disclosed in the Annual Report on Remuneration.
Up to 20% of an award will vest depending on TSR performance over a three year period, starting on 1 April in the year in which the award is granted, compared with the FTSE 350 Index (the 'Index').
| TSR | % of total award vesting |
|---|---|
| Below the Index | 0% |
| At the Index | 5% |
| %HWZHHQWKHΖQGH[DQGSD out-performance |
5%-20% pro rata |
| \$ERYHSDRXWSHUIRUPDQFH of the Index |
20% |
No re-testing of the performance conditions is permitted.
The performance conditions and their relative weighting may EHPRGLȴHGE\WKH5HPXQHUDWLRQ&RPPLWWHHLQDFFRUGDQFH with the Rules of the LTIP, provided that they remain no less challenging and are aligned with the interests of the Company's shareholders.
In the case of participants other than the executive Directors, the Remuneration Committee will have discretion WRXWLOLVHDGGLWLRQDOVSHFLȴFGLYLVLRQDO52&(DQGSURȴW growth performance conditions, provided that they remain no less challenging and are aligned with the interests of the Company's shareholders. These additional conditions will not account for more than 20% of vesting, with a corresponding reduction in the percentage of vesting dependent on the ROCE performance condition.
A formal clawback policy is in place, under which awards are subject to clawback in the event of a material restatement RIȴQDQFLDOVWDWHPHQWVRURWKHUVSHFLȴHGHYHQWV)XUWKHU GHWDLOVRQWKLVFODZEDFNSROLF\DUHVHWRXWRQSDJH
| Element and link to strategy | Operation | Maximum Opportunity |
|---|---|---|
| Pension | ||
| To reward sustained contribution. |
A small number of senior Group executives, including the H[HFXWLYH'LUHFWRUVDUHSDUWLFLSDQWVLQDGHȴQHGEHQHȴW pension scheme. 2WKHUVHQLRU*URXSH[HFXWLYHVSDUWLFLSDWHLQDGHȴQHG contribution pension scheme. The pension scheme gives the Company full discretion to pay appropriate pension levels and the Company reviews market and benchmarking data for pension contributions for each employee group. |
'HȴQHGEHQHȴWSHQVLRQVDUHSURYLGHG through an Irish Revenue approved UHWLUHPHQWEHQHȴWVFKHPHXSWRSHQVLRQ caps, as introduced by the Irish Finance Act DQGDPHQGHGE\VXEVHTXHQW\$FWV VHHSDJH \$OORIWKHH[HFXWLYHVDHFWHG have elected to cease accruing pension EHQHȴWVDWWKHFDSDQGWRUHFHLYHDWD[DEOH non-pensionable cash allowance in lieu of SHQVLRQEHQHȴWVIRUHJRQH\$OOFDVK allowances have been calculated based on independent actuarial advice, approved by the Remuneration Committee, as the equivalent of the reduction in liability of the Company arising from the pension |
| EHQHȴWVIRUHJRQH 7KH&RPSDQ\FRQWULEXWHVWRDGHȴQHG contribution pension scheme for other VHQLRU*URXSH[HFXWLYHVDWUDWHVUHȵHFWLQJ their seniority and experience. The FRQWULEXWLRQOHYHOVDOVRUHȵHFWPDUNHW benchmarking data. Pensionable salary is calculated as 105% of base salary and does not include any SHUIRUPDQFHUHODWHGERQXVHVRUEHQHȴWV |
Subject to the achievement of the applicable performance conditions, executive Directors are eligible to receive payment from any award made prior to the approval and implementation of the Remuneration Policy detailed in this report.
Bonus payments made to executives may be subject to clawback for a period of three years from payment in certain circumstances including:
The LTIP allows for the giving of discretion to the Remuneration Committee to reduce or impose further conditions on awards prior to vesting in the circumstances as outlined above.
In determining the remuneration package for a new executive Director, the Remuneration Committee would be guided by the principle of RHULQJVXFKUHPXQHUDWLRQDVLVUHTXLUHGWRDWWUDFWUHWDLQDQGPRWLYDWHDFDQGLGDWHZLWKWKHSDUWLFXODUVNLOOVDQGH[SHULHQFHUHTXLUHGIRU a role, if it considers this to be in the best interests of the Company and the shareholders. The Remuneration Committee will generally set a remuneration package which is in accordance with the terms of the approved Remuneration Policy in force at the time of the appointment, though the Committee may make payments outside of the Policy if required in the particular circumstances and if in the best interests of the Company and the shareholders. Any such payments which relate to the buyout of variable pay (bonuses or awards) from a previous employer will be based on matching the estimated fair value of that variable pay and will take account of the performance conditions and the time until vesting of that variable pay.
2WKHUWKDQLQVXFKEX\RXWVLWXDWLRQVLWLVWKH&RPSDQ\ȇVSROLF\QRWWRRHUDQ\DGGLWLRQDOERQXVHVRUDZDUGVRQUHFUXLWPHQW
For an internal appointment, any variable pay element awarded in respect of the prior role and any other ongoing remuneration obligations existing prior to appointment would be honoured.
:KLOHWKH5HPXQHUDWLRQ&RPPLWWHHȇVVSHFLȴFRYHUVLJKWRILQGLYLGXDOH[HFXWLYHUHPXQHUDWLRQSDFNDJHVH[WHQGVRQO\WRWKHH[HFXWLYH Directors and a number of senior Group executives, it aims to create a broad policy framework, to be applied by management to senior executives throughout the Group, through its oversight of remuneration structures for other Group and subsidiary senior management DQGRIDQ\PDMRUFKDQJHVLQHPSOR\HHEHQHȴWVVWUXFWXUHVWKURXJKRXWWKH*URXS
'&&HPSOR\VDSSUR[LPDWHO\SHRSOHLQFRXQWULHV5HPXQHUDWLRQDUUDQJHPHQWVDFURVVWKH*URXSGLHUGHSHQGLQJRQWKHVSHFLȴF role being undertaken, the industry in which the business operates, the level of seniority and responsibilities, the location of the role and local market practice.
Although the Remuneration Committee does not consult with employees on the Directors Remuneration Policy, it does consider remuneration arrangements and trends across the broader employee population when determining the Policy.
7KH&RPPLWWHHHQJDJHVLQGLDORJXHZLWKPDMRUVKDUHKROGHUVRQUHPXQHUDWLRQPDWWHUVSDUWLFXODUO\LQUHODWLRQWRSODQQHGVLJQLȴFDQW changes in policy. The Committee also takes into account the views of shareholder organisations and proxy voting agencies.
As set out in last year's Annual Report, the Remuneration Committee undertook a detailed consultation process in regard to the then proposed changes to the LTIP.
The Committee acknowledges that shareholders have a right to have a 'say on pay' by putting the Remuneration Policy and the Annual Report on Remuneration to advisory votes at the Annual General Meeting.
The provisions on exit in respect of each of the elements of pay are as follows:
([LWSD\PHQWVDUHPDGHRQO\LQUHVSHFWRIEDVHVDODU\H[FOXGLQJEHQHȴWVIRUWKHUHOHYDQWQRWLFHSHULRG)RUWKH&KLHI([HFXWLYHWKHQRWLFH period is 12 months and for the other executive Directors the notice period is 3 months. In all cases, the notice period applies to both the Company and the executive.
The Remuneration Committee can apply appropriate discretion in respect of determining the bonuses to be awarded based on actual SHUIRUPDQFHDFKLHYHGDQGWKHSHULRGRIHPSOR\PHQWGXULQJWKHȴQDQFLDO\HDU
To the extent that a share award or option has vested on the participant's cessation date, the participant may exercise the share award or RSWLRQGXULQJDVSHFLȴHGSHULRGIROORZLQJVXFKGDWHEXWLQQRHYHQWPD\WKHVKDUHDZDUGRURSWLRQEHH[HUFLVHGODWHUWKDQWKHH[SLU\GDWH DVVSHFLȴHGLQWKHDZDUGFHUWLȴFDWH
In general, a share award or option that has not vested on the participant's cessation date immediately lapses.
The Committee would normally exercise its discretion when dealing with a participant who ceases to be an employee by reason of certain exceptional circumstances e.g. death, injury or disability, redundancy, retirement or any other exceptional circumstances. In such circumstances, any share award or option that has not already vested on the participant's cessation date would be eligible for vesting on a date determined by the Remuneration Committee. The number of shares, if any, in respect of which the share award or option vests would be determined by the Remuneration Committee.
In the event that a participant ceases to be an employee by reason of a termination of his employment for serious misconduct, each share award and option held by the participant, whether or not vested, will automatically lapse immediately upon the service of notice of such termination, unless the Committee in its sole discretion determines otherwise.
7KHUXOHVRIWKH&RPSDQ\ȇVGHȴQHGEHQHȴWSHQVLRQVFKHPHRIZKLFKWKHH[HFXWLYH'LUHFWRUVDUHPHPEHUVFRQWDLQGHWDLOHGSURYLVLRQV in respect of termination of employment.
With the exception of Tommy Breen, Chief Executive, who has a service agreement with a notice period of twelve months, none of the other Directors has a service contract with the Company or with any member of the Group. Mr. Breen's service contract provides that either he or the Company can terminate his employment by giving 12 months' notice in writing. The Company may, at its sole discretion, require that Mr. Breen, instead of working out the period of notice, cease employment immediately in which case he would receive compensation in the form of base salary only in respect of the notice period. The service contract also provides for summary termination (i.e. without notice) in a number of circumstances, including material breach or grave misconduct. The service contract does not include any provisions for FRPSHQVDWLRQIRUORVVRIRɝFHRWKHUWKDQWKHQRWLFHSHULRGSURYLVLRQVVHWRXWDERYH
Mr. O'Dwyer and Mr. Murphy have letters of appointment which provide for three months' notice periods.
DCC's remuneration policy has at its core recognition that the spirit of ownership and entrepreneurship is essential to the creation of long term high performance and that share ownership is important in aligning the interests of executive Directors and other senior Group executives with those of shareholders.
\$VHWRIVKDUHRZQHUVKLSJXLGHOLQHVLVLQSODFHHHFWLYHIURP\$SULOXQGHUZKLFKWKH&KLHI([HFXWLYHRWKHUH[HFXWLYH'LUHFWRUVDQG RWKHUVHQLRU*URXSH[HFXWLYHVDUHHQFRXUDJHGWREXLOGRYHUDȴYH\HDUSHULRGDVKDUHKROGLQJLQWKH&RPSDQ\ZLWKDYDOXDWLRQUHODWLYHWR base salary as follows:
| Executive | Share ownership guideline |
|---|---|
| Chief Executive | 3 times annual base salary |
| Other executive Directors | 2 times annual base salary |
| Senior Group executives | 1 times annual base salary |
The position of the executive Directors and senior Group executives under the Share Ownership Guidelines is reviewed annually by the Remuneration Committee. The position of the executive Directors as at 31 March 2015 is set out in the Annual Report on Remuneration on page 99.
The current value and composition of the executive Directors' remuneration packages at minimum, median and maximum performance are VHWRXWLQWKHFKDUWVEHORZ\$VDOORIWKH'LUHFWRUVDUHSDLGLQHXURWKH5HPXQHUDWLRQ&RPPLWWHHFRQVLGHUVLWDSSURSULDWHWKDWWKHȴJXUHV disclosed in this report continue to be presented in euro.
Notes:
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| Element and link to strategy | Operation | Maximum Opportunity |
|---|---|---|
| Fees | ||
| The fees paid to non-executive Directors UHȵHFWWKHLUH[SHULHQFHDQGDELOLW\DQGWKH time demands of their Board and Board |
The remuneration of the Chairman is determined by the Remuneration Committee for approval by the Board. The Chairman |
No prescribed maximum annual increase. In accordance with the Articles of Association, |
| committee duties. | absents himself from the Committee meeting while this matter is being considered. |
shareholders set the maximum aggregate ordinary remuneration (basic fees, excluding |
| A basic non-executive Director fee is paid | fees for committee membership and | |
| for Board membership. Additional fees are paid to the members and the Chairmen of Board Committees, to the Chairman |
The remuneration of the other non executive Directors is determined by the Chairman and the Chief Executive |
FKDLUPDQIHHV 7KHFXUUHQWOLPLWRIȜ was set at the 2014 Annual General Meeting. |
| and to the Deputy Chairman/Senior Independent Director. |
for approval by the Board. | Non-executives Directors do not participate in the Company's LTIP and do not receive |
| The fees are reviewed annually, taking account of any changes in responsibilities and benchmarking advice from external remuneration consultants on the level of fees in a range of comparable Irish and UK companies. |
DQ\SHQVLRQEHQHȴWVIURPWKH&RPSDQ\ | |
The terms and conditions of appointment of non-executive Directors are set out in their letters of appointment, which are available for LQVSHFWLRQDWWKH&RPSDQ\ȇVUHJLVWHUHGRɝFHGXULQJQRUPDORɝFHKRXUVDQGDWWKH\$QQXDO*HQHUDO0HHWLQJRIWKH&RPSDQ\
7KLVVHFWLRQRIWKH5HPXQHUDWLRQ5HSRUWVHWVRXWKRZ'&&ȇV5HPXQHUDWLRQ3ROLF\DVGHVFULEHGRQSDJHVWRZLOORSHUDWHLQWKH\HDUWR 0DUFKJLYHVGHWDLOVRIUHPXQHUDWLRQRXWFRPHVIRUWKH\HDUHQGHG0DUFKDQGH[SODLQVKRZWKH5HPXQHUDWLRQ&RPPLWWHHZRUNV
7KHVDODULHVRIWKHH[HFXWLYH'LUHFWRUVIRUWKH\HDUWR0DUFKWRJHWKHUZLWKFRPSDUDWLYHȴJXUHVDUHDVIROORZV
| Executive Director | <hduwr 0DUFK €</hduwr |
<hduwr March 2015 €</hduwr |
|---|---|---|
| Tommy Breen | 737,000 | 715,000 |
| Donal Murphy | 440,000 | 420,000 |
| Fergal O'Dwyer | 452,500 | 440,000 |
The increases in salaries for the executive Directors over recent years are shown in the table below:
| ΖQFUHDVHLQ <hdu< th=""></hdu<> | |||||
|---|---|---|---|---|---|
| Executive Director | 2014/2015 | 2013/2014 | 2012/2013 | 2011/2012 | |
| Tommy Breen | 3.1% | 2.1% | 0.0% | 0.0% | 0.0% |
| Donal Murphy | 2.4% | 2.5% | 0.0% | 0.0% | |
| Fergal O'Dwyer | 2.3% | 7.5% | 0.0% | 0.0% |
7KHLQFUHDVHVLQVDODULHVIRUWKHH[HFXWLYH'LUHFWRUVIRUWKH\HDUWR0DUFKUHȵHFW&RPSDQ\DQGSHUVRQDOSHUIRUPDQFHDQG benchmarking against market practice.
ΖQ0U0XUSK\ȇVFDVHKLVLQFUHDVHUHȵHFWVWKHJURZWKLQWKHVFDOHDQGEUHDGWKRIWKH(QHUJ\GLYLVLRQIRUZKLFKKHKDVUHVSRQVLELOLW\
7KHLQFUHDVHLQ0U%UHHQȇVVDODU\LQZDVWKHȴUVWLQFUHDVHLQKLVVDODU\VLQFH-XQHZKHQKHEHFDPH&KLHI([HFXWLYH
The increase in Mr. O'Dwyer's salary in 2013/2014 followed a benchmarking exercise which showed his salary was positioned towards the lower quartile of the primary comparator group.
7KHPD[LPXPERQXVSRWHQWLDOIRUWKHH[HFXWLYH'LUHFWRUVIRUWKH\HDUWR0DUFKLVVHWRXWLQWKHWDEOHEHORZ7KHVHDUHXQFKDQJHG from those which applied for the year ended 31 March 2015.
| Executive Director | Maximum bonus potential |
|---|---|
| Tommy Breen | 120% of salary |
| Donal Murphy | 100% of salary |
| Fergal O'Dwyer | 100% of salary |
The Committee has set performance targets for the year which will determine the extent of payment of bonuses to the executive Directors, as follows:
| Executive Director | Performance Targets |
|---|---|
| Tommy Breen | 70% based on growth in Group adjusted earnings per share and 30% based on overall contribution and attainment of personal objectives. |
| Donal Murphy | EDVHGRQJURZWKLQ*URXSDGMXVWHGHDUQLQJVSHUVKDUHEDVHGRQJURZWKLQ'&&(QHUJ\RSHUDWLQJSURȴW and 40% based on overall contribution and attainment of personal objectives. |
| Fergal O'Dwyer | 70% based on growth in Group adjusted earnings per share and 30% based on overall contribution and attainment of personal objectives. |
Bonuses for other senior Group executives are based upon meeting pre-determined targets which relate to Group earnings, divisional RSHUDWLQJSURȴWDQGRYHUDOOFRQWULEXWLRQDQGDWWDLQPHQWRISHUVRQDOREMHFWLYHV
*URZWKLQ*URXSDGMXVWHGHDUQLQJVSHUVKDUHDQGLQGLYLVLRQDORSHUDWLQJSURȴWLVPHDVXUHGDJDLQVWSUHGHWHUPLQHGUDQJHVZLWK]HUR payment below threshold up to full payment at the maximum of the range. The Committee considers that information on the ranges LVFRPPHUFLDOO\FRQȴGHQWLDODQGWKHUHIRUHLWLVQRWEHLQJGLVFORVHGRQDSURVSHFWLYHEDVLVEXWWRWKHH[WHQWQRORQJHUFRPPHUFLDOO\ FRQȴGHQWLDOPD\EHGLVFORVHGUHWURVSHFWLYHO\
The Committee will keep the performance targets under review in light of acquisition and other development activity during the year WR0DUFKZLWKSDUWLFXODUUHIHUHQFHWRWKHDJUHHPHQWUHDFKHGRQ0D\WRDFTXLUH%XWDJD]6\$6
1RFKDQJHVDUHSURSRVHGWRWKHEHQHȴWVSD\DEOHWRWKHH[HFXWLYH'LUHFWRUVIRUWKH\HDUWR0DUFK%HQHȴWVLQFOXGHWKHXVHRI a company car, life/disability cover and club subscriptions or cash equivalent.
1RFKDQJHVDUHSURSRVHGWRUHWLUHPHQWEHQHȴWVSD\DEOHWRWKHH[HFXWLYH'LUHFWRUVIRUWKH\HDUWR0DUFK\$VQRWHGRQSDJH DVPDOOQXPEHURIVHQLRU*URXSH[HFXWLYHVLQFOXGLQJWKHH[HFXWLYH'LUHFWRUVDUHSDUWLFLSDQWVLQDGHȴQHGEHQHȴWSHQVLRQVFKHPH
7KHΖULVK)LQDQFH\$FWHVWDEOLVKHGDFDSRQSHQVLRQDVVHWVE\LQWURGXFLQJDSHQDOW\WD[FKDUJHRQSHQVLRQDVVHWVLQH[FHVVRIWKH higher of €5 million or the value of individual accrued pension entitlements as at 7 December 2005. The Irish Finance Act 2011 reduced these thresholds to the higher of €2.3 million or the value of individual accrued pension entitlements as at 7 December 2010. As a result of this change the Remuneration Committee decided that the executive Directors and the other senior Group executives, who are members RIWKHGHȴQHGEHQHȴWVFKHPHZRXOGKDYHWKHRSWLRQRIFRQWLQXLQJWRDFFUXHSHQVLRQEHQHȴWVDVSUHYLRXVO\RUWRFDSWKHLUEHQHȴWVLQOLQH ZLWKWKHOLPLWV\$OORIWKHH[HFXWLYH'LUHFWRUVDQGWKHRWKHUVHQLRU*URXSH[HFXWLYHVZKRDUHPHPEHUVRIWKHGHȴQHGEHQHȴWVFKHPH HOHFWHGWRFDSWKHLUEHQHȴWVDQGUHFHLYHDWD[DEOHQRQSHQVLRQDEOHFDVKDOORZDQFHLQOLHXRISHQVLRQEHQHȴWVIRUHJRQH
2WKHUVHQLRU*URXSH[HFXWLYHVSDUWLFLSDWHLQDGHȴQHGFRQWULEXWLRQSHQVLRQVFKHPH
)ROORZLQJDGHWDLOHGUHYLHZGXULQJWKHODVWȴQDQFLDO\HDURIUHPXQHUDWLRQVWUXFWXUHVLQSODFHLQ'&&DVHULHVRIDPHQGPHQWVZHUHPDGHWR the LTIP, full details of which are set out in last year's Remuneration Report. These amendments were approved by shareholders at the 2014 Annual General Meeting.
'HWDLOVRIWKH/7Ζ3DVDPHQGHGDUHVHWRXWLQWKH5HPXQHUDWLRQ3ROLF\5HSRUWRQSDJH\$ZDUGVWREHPDGHLQWKH\HDUWR0DUFK will be in accordance with the amended LTIP.
For the purposes of the ROCE performance condition, the Remuneration Committee has set a ROCE range for threshold and maximum YHVWLQJRIWRIRUDZDUGVWREHPDGHLQWKH\HDUWR0DUFK
For the purposes of the EPS performance condition, the Remuneration Committee has set EPS growth equal to UK RPI plus 7% per annum FRPSRXQGIRUPD[LPXPYHVWLQJRIDZDUGVWREHPDGHLQWKH\HDUWR0DUFK
Both the ROCE Range and the EPS Range will be kept under review by the Committee in light of acquisition and other development activity LQWKH\HDUWR0DUFKZLWKSDUWLFXODUUHIHUHQFHWRWKHDJUHHPHQWUHDFKHGRQ0D\WRDFTXLUH%XWDJD]6\$6
The table below sets out the details of the remuneration payable to the executive Directors for the year ended 31 March 2015.
| Salary | Bonus | %HQHȴWV | Retirement %HQHȴW([SHQVH |
LTIP | Audited Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2015 €'000 |
2014 €'000 |
2015 €'000 |
2014 €'000 |
2015 €'000 |
2014 €'000 |
2015 €'000 |
2014 €'000 |
2015 €'000 |
2014 €'000 |
2015 €'000 |
2014 €'000 |
|
| Executive Directors |
||||||||||||
| Tommy Breen | 715 | 700 | 532 | 88 | 468 | 2,050 | 1,253 | 3,853 | ||||
| Donal Murphy | 420 | 410 | 284 | 33 | 32 | 122 | 102 | 976 | 597 | 1,835 | 1,503 | |
| Fergal O'Dwyer | 440 | 430 | 273 | 33 | 33 | 323 | 254 | 976 | 597 | 2,045 | 1,720 | |
| 1,575 | 1,540 | 1,089 | 1,533 | 154 | 150 | 913 | 721 | 4,002 | 2,447 | 7,733 |
There were no payments made to former Directors during the year ended 31 March 2015.
The salaries of the Executive Directors for the year ended 31 March 2015 represented increases over the prior year as shown in the table below:
| Salary | % Increase | |
|---|---|---|
| Tommy Breen | €715,000 | 2.1% |
| Donal Murphy | €420,000 | 2.4% |
| Fergal O'Dwyer | €440,000 | 2.3% |
7KHVDODULHVRIRWKHUVHQLRU*URXSH[HFXWLYHVLQFUHDVHGE\RYHUDOOGXULQJWKH\HDUZLWKLQGLYLGXDOLQFUHDVHVUHȵHFWLQJGHYHORSPHQW in roles and responsibilities.
7KHJURZWKLQ*URXSDGMXVWHGHDUQLQJVSHUVKDUHLQWKH\HDUHQGHG0DUFKRQDFRQWLQXLQJEDVLVZDV
7KH5HPXQHUDWLRQ&RPPLWWHHQRWHGWKDWRSHUDWLQJSURȴWJURZWKRIZDVDFKLHYHGLQ'&&(QHUJ\DKHDGRQDFRQVWDQWFXUUHQF\ EDVLV GHVSLWHWKHHHFWRIPLOGZLQWHUZHDWKHUFRQGLWLRQV
The Committee concluded that there had been very strong achievement of the targets set in respect of overall contribution and attainment of personal objectives, in particular with regard to delivery on strategy, acquisitions and organisational development.
The resultant bonus payout levels for the year ended 31 March 2015 were as follows:
| Tommy Breen % of Salary |
Donal Murphy % of Salary |
Fergal O'Dwyer % of Salary |
||||
|---|---|---|---|---|---|---|
| Component | Max % | Payout % | Max % | Payout % | Max % | Payout % |
| Group EPS | 20.0 | 9.1 | 70.0 | 32.0 | ||
| '&&(QHUJ\2SHUDWLQJ3URȴW | 40.0 | |||||
| Contribution / Personal | 40.0 | 40.0 | 30.0 | 30.0 | ||
| 120.0 | 74.4 | 100.0 | 100.0 |
0U%UHHQȇVERQXVLQUHVSHFWRIWKH\HDUHQGHG0DUFKDPRXQWHGWRRIVDODU\0U%UHHQȇVERQXVLQUHVSHFWRIWKHSUHYLRXV year ended 31 March 2014 amounted to 109.3% of salary, of which 9.3%, net of tax and social security deductions, was invested in DCC shares, which will be made available to him after three years, or on his employment terminating if earlier, together with accrued dividends.
%HQHȴWVLQFOXGHWKHXVHRIDFRPSDQ\FDUOLIHGLVDELOLW\FRYHUFOXEVXEVFULSWLRQVRUFDVKHTXLYDOHQW
\$VRXWOLQHGRQSDJHWKHH[HFXWLYH'LUHFWRUVKDYHHOHFWHGWRFHDVHDFFUXLQJSHQVLRQEHQHȴWVDWWKHSHQVLRQFDSDQGWRUHFHLYHDWD[DEOH QRQSHQVLRQDEOHFDVKDOORZDQFHLQOLHXRISHQVLRQEHQHȴWVIRUHJRQH\$OOFDVKDOORZDQFHVKDYHEHHQFDOFXODWHGEDVHGRQLQGHSHQGHQW actuarial advice approved by the Remuneration Committee as the equivalent of the reduction in liability of the Company arising from the SHQVLRQEHQHȴWVIRUHJRQH5HWLUHPHQW%HQHȴWV([SHQVHFRPSULVHVDQDPRXQWRIȜIRU7RPP\%UHHQEHLQJDFDVKDOORZDQFHRI ȜOHVVWKHYDOXHRIDUHYHUVDORISUHYLRXVO\IXQGHGEHQHȴWVRIȜDFDVKDOORZDQFHRIȜIRU'RQDO0XUSK\DQGDFDVK allowance of €323,000 for Fergal O'Dwyer.
7KHWDEOHEHORZVHWVRXWWKHFKDQJHLQWKHDFFUXHGSHQVLRQEHQHȴWVWRZKLFKH[HFXWLYH'LUHFWRUVKDYHEHFRPHHQWLWOHGGXULQJWKH\HDU HQGHG0DUFKDQGWKHWUDQVIHUYDOXHRIWKHFKDQJHLQDFFUXHGEHQHȴWXQGHUWKH&RPSDQ\ȇVGHȴQHGEHQHȴWSHQVLRQVFKHPH
| &KDQJHLQDFFUXHGSHQVLRQEHQHȴW H[FOLQȵDWLRQ GXULQJWKH\HDU1 €'000 |
Transfer value equivalent to the change LQDFFUXHGSHQVLRQEHQHȴW1 €'000 |
7RWDODFFUXHGSHQVLRQEHQHȴWDW year end2 €'000 |
|
|---|---|---|---|
| Tommy Breen | (10) | (217) | |
| Donal Murphy | – | – | 115 |
| Fergal O'Dwyer | – | – | |
| Total | (10) | (217) |
7KHSHQVLRQVRIWKHH[HFXWLYH'LUHFWRUVKDYHEHHQFDSSHGLQOLQHZLWKWKHSURYLVLRQVRIWKHΖULVK)LQDQFH\$FWVDVGHWDLOHGRQSDJH
The values of the LTIP as shown in the table on page 93 for 2015 and 2014 related to awards made in November 2012 and November 2011 respectively. Both of these awards were made under the LTIP prior to being amended in 2014. The vesting criteria which applied to the 2012 and 2011 awards are summarised below.
RIVKDUHVYHVWGHSHQGLQJRQ765SHUIRUPDQFHRYHUDWKUHH\HDUSHULRGVWDUWLQJRQ\$SULOLQWKH\HDULQZKLFKWKHDZDUGLVJUDQWHG FRPSDUHGZLWKWKH765RIDGHVLJQDWHGSHHUJURXSZKLFKFRPSULVHVWKH)76(RQWKHȴUVWGD\RIWKHSHUIRUPDQFHSHULRGH[FOXGLQJ ȴQDQFLDOVHUYLFHVW\SHFRPSDQLHVDQGDVPDOOQXPEHURIRWKHUFRPSDQLHVWKDWDUHQRWFRPSDUDEOHWRWKH&RPSDQ\DVGHWHUPLQHGE\WKH Remuneration Committee.
| TSR rank | % of total award vesting |
|---|---|
| Below median | 0% |
| Median | 25% |
| Median – 75th percentile | SURUDWD |
| Above 75th percentile |
40% of shares vest depending on EPS growth over a three year period starting on 1 April in the year in which the award is granted compared with the change in the Irish Consumer Price Index ('CPI').
| EPS growth in excess of CPI | % of total award vesting |
|---|---|
| Below 3% | 0% |
| 3% | 15% |
| 3%-7% | 15%-40% pro rata |
| Above 7% | 40% |
The LTIP awards granted in November 2012 will vest in December 2015. The extent of vesting will be determined by the Committee, WDNLQJDFFRXQWRIDQDQDO\VLVWREHFRQGXFWHGE\7RZHUV:DWVRQDQGZLOOEHEDVHGRQ765SHUIRUPDQFHRIWKHWRWDODZDUG DQG(36 performance (40% of the total award) over the three year period ended 31 March 2015. The Group's TSR performance is expected to give ULVHWRDYHVWLQJRIRIWKHWRWDODZDUG7KH(36SHUIRUPDQFHFRQGLWLRQLVH[SHFWHGWRJLYHULVHWRDYHVWLQJRIRIWKHWRWDODZDUG Consequently, 100% of the 2012 awards are expected to vest. The value of the LTIP for the year ended 31 March 2015 is estimated using WKHQXPEHURIRSWLRQVH[SHFWHGWRYHVWLQ1RYHPEHUDQGWKHVKDUHSULFHDW0DUFKRIȜe
7KH/7Ζ3DZDUGVJUDQWHGLQ1RYHPEHUYHVWHGLQ'HFHPEHU7KHH[WHQWRIYHVWLQJZDVEDVHGRQ765SHUIRUPDQFHRIWKH total award) and EPS performance (40% of the total award) over the three year period ended 31 March 2014. An analysis was conducted E\7RZHUV:DWVRQWRPHDVXUHWKHOHYHORI'&&ȇV765SHUIRUPDQFHUHODWLYHWRWKH)76(SHHUJURXSRYHUDPRQWKSHULRGWR0DUFK 7KHUHVXOWUDQNHG'&&DWWKHUGSHUFHQWLOHLQWKHPHGLDQWRXSSHUTXDUWLOHLQ765SHUIRUPDQFHZKLFKJDYHULVHWRDYHVWLQJRI of the total award. DCC's adjusted EPS increased by 4.1% annualised over the three year period. CPI increased by an annualised 1.0% over the VDPHSHULRG%DVHGRQWKHH[FHVVRIDQQXDOLVHGWKLVJDYHULVHWRDYHVWLQJRIRIWKHWRWDODZDUG&RQVHTXHQWO\WKH5HPXQHUDWLRQ Committee determined that 59.43% of the 2011 awards had vested. The value of the LTIP for the year ended 31 March 2014 is based on the QXPEHURIRSWLRQVZKLFKYHVWHGLQ'HFHPEHUDQGWKHVKDUHSULFHDWWKHGDWHRIYHVWLQJRIȜe 7KHVHȴQDOYDOXHVIRU GLHUIURPWKRVHLQWKH\$QQXDO5HSRUWZKLFKZHUHEDVHGXSRQHVWLPDWHGYHVWLQJRIDQGWKHVKDUHSULFHDVDW0DUFK
The extent of vesting of awards made under the LTIP since its introduction in 2009 is set out in the table below.
The charts below show the total remuneration for the Chief Executive for the six years from 1 April 2009 to 31 March 2015 and map the total remuneration against the six year trend in EPS and TSR, using a base of 100 for 2010 for comparator purposes.
Total remuneration paid to the Chief Executive for the years 2010 to 2015 inclusive. Further details in relation to remuneration paid in 2015 and 2014 is set out on page 93.
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The percentage change in elements of remuneration for the Chief Executive between the year ended 31 March 2015 and the year ended 31 March 2014 is as follows:
| Salary | +2.1% |
|---|---|
| %HQHȴWV | |
| Bonus | -30.5% |
7KHFRPELQHGSHUFHQWDJHFKDQJHZDV7KHUHZDVDLQFUHDVHLQWKHWRWDODYHUDJHHPSOR\PHQWFRVWVLQUHVSHFWRIHPSOR\HHV in the Group as a whole between the year ended 31 March 2015 and 31 March 2014.
The table below sets out the amount paid in remuneration to all employees of the Group compared to dividends to shareholders, for 2015 and 2014.
([HFXWLYH'LUHFWRUVPD\DFFHSWH[WHUQDOQRQH[HFXWLYHGLUHFWRUVKLSVZLWKWKHSULRUDSSURYDORIWKH%RDUG7KH%RDUGUHFRJQLVHVWKHEHQHȴWV that such appointments can bring both to the Company and to the Director in terms of broadening their knowledge and experience.
The fees received for such roles may be retained by the executive Directors. Tommy Breen took up the position of non-executive director RI(VVHQWUDSOFRQ\$SULODQGZLOOUHWDLQWKHDQQXDOIHHRIe
The remuneration paid to non-executive Directors for the year ended 31 March 2015 is set out in the table below. Non-executive Directors are paid a basic fee. Additional fees are paid to the members and the Chairmen of Board Committees, to the Chairman and to the Deputy Chairman/Senior Independent Director.
The remuneration of the Chairman is determined by the Remuneration Committee for approval by the Board. The Chairman absents himself from the Committee meeting while this matter is being considered. The remuneration of the other non-executive Directors is determined by the Chairman and the Chief Executive for approval by the Board.
The fees are reviewed annually, taking account of any changes in responsibilities and benchmarking advice from external remuneration consultants on the level of fees in a range of comparable Irish and UK companies.
| Basic Fee | Committee Chair and Membership Fees |
Chairman / Deputy Chairman / Senior Independent Director Fees |
Audited Total | |||||
|---|---|---|---|---|---|---|---|---|
| 2015 €'000 |
2014 €'000 |
2015 €'000 |
2014 €'000 |
2015 €'000 |
2014 €'000 |
2015 €'000 |
2014 €'000 |
|
| Non–executive Directors | ||||||||
| John Moloney1 | 60 | 8 | 76 | – | 144 | |||
| Róisín Brennan | 60 | 8 | – | – | 68 | |||
| David Byrne | 60 | 8 | 35 | 35 | 103 | 103 | ||
| David Jukes2 | – | – | – | – | – | – | – | – |
| Pamela Kirby3 | 60 | 35 | 5 | – | – | – | 65 | 35 |
| Jane Lodge | 60 | 20 | 20 | – | – | 80 | ||
| Leslie Van de Walle | 60 | 24 | 24 | – | – | 84 | ||
| Michael Buckley4 | 30 | 2 | 61 | 122 | 93 | 190 | ||
| Kevin Melia5 | 15 | 2 | – | – | 17 | |||
| 405 | 455 | 77 | 172 | 157 | 654 | |||
| Ex gratia pension to dependant of retired Director |
10 | 10 | ||||||
| Total | 664 |
Notes
7KHQRQH[HFXWLYH'LUHFWRUIHHVWUXFWXUHIRUWKH\HDUWR0DUFKLVVHWRXWEHORZ €
| Chairman (to include basic and committee fees) | 225,000 |
|---|---|
| Basic Fee | |
| Committee Fees: | |
| Audit | |
| Nomination and Governance | 3,000 |
| Remuneration | 5,000 |
| Additional Fees: | |
| Audit Committee Chairman | 12,000 |
| Remuneration Committee Chairman | 7,500 |
| Deputy Chairman Fee | 23,000 |
| Senior Independent Director Fee | 12,000 |
7KHEDVLFIHHIRUQRQH[HFXWLYH'LUHFWRUVLQFUHDVHGWRȜIURPȜZLWKHHFWIURP\$SULO
| Total Directors' Remuneration | Audited Total | |
|---|---|---|
| 2015 €'m |
2014 €'m |
|
| Executive Directors | ||
| Base Salary | 1,575 | 1,540 |
| Bonus | 1,089 | 1,533 |
| %HQHȴWV | 154 | 150 |
| 5HWLUHPHQW%HQHȴWV([SHQVH | 913 | 721 |
| LTIP | 4,002 | 2,447 |
| Total executive Directors' remuneration | 7,733 | |
| Non-executive Directors | ||
| Fees | 654 | |
| Total non-executive Directors' remuneration | 654 | |
| Ex gratia payment to dependant of retired Director | 10 | 10 |
| Total Directors' remuneration | 8,397 | 7,097 |
The interests of the Directors and the Company Secretary (including their respective family interests) in the share capital of DCC plc at 31 March 2015 (together with their interests at 31 March 2014) are set out below:
| No. of Ordinary Shares At 31 March |
No. of Ordinary Shares At 31 March |
|
|---|---|---|
| Directors | 2015 | 2014 |
| John Moloney | 2,000 | 2,000 |
| Tommy Breen | 250,744 | 250,000 |
| Róisín Brennan | – | – |
| David Byrne | 1,200 | 1,200 |
| David Jukes1 | – | – |
| Pam Kirby | 2,500 | 2,500 |
| Jane Lodge | 3,000 | 3,000 |
| Donal Murphy | 90,913 | |
| Fergal O'Dwyer | 240,389 | |
| Leslie Van de Walle | 670 | |
| Company Secretary | ||
| Gerard Whyte | 145,000 | 144,400 |
\$OORIWKHDERYHLQWHUHVWVZHUHEHQHȴFLDOO\RZQHG\$SDUWIURPWKHLQWHUHVWVGLVFORVHGDERYHWKH'LUHFWRUVDQGWKH&RPSDQ\6HFUHWDU\KDG no interests in the share capital or loan stock of the Company or any other Group undertaking at 31 March 2015.
7KHUHZHUHQRFKDQJHVLQWKHDERYH'LUHFWRUVDQG6HFUHWDU\ȇVLQWHUHVWVEHWZHHQ0DUFKDQG0D\
The shareholdings held by the executive Directors are substantially in excess of the share ownership guidelines in place, which are set out on page 90 of this report.
The Company's Register of Directors Interests (which is open to inspection) contains full details of Directors' shareholdings and share options.
Details of the executive Directors' and the Company Secretary's awards, in the form of nominal cost options, under the DCC plc Long Term Incentive Plan 2009 are set out in the table below:
| Number of options | Market | ||||||
|---|---|---|---|---|---|---|---|
| At 31 March 2014 |
Granted in year |
Lapsed in year |
\$W0DUFK |
Performance period | Earliest exercise date | price on award |
|
| Executive Directors | |||||||
| Tommy Breen | – | – | 1 April 2009 – 31 March 2012 | 20 August 2012 | Ȝ | ||
| – | – | 1 April 2010 – 31 March 2013 | 15 November 2013 | €21.25 | |||
| – | (19,474) | 1 April 2011 – 31 March 2014 | 15 November 2014 | €17.50 | |||
| 37,070 | – | – | 1 April 2012 – 31 March 2015 | 12 November 2015 | Ȝ | ||
| – | – | \$SULOȂ0DUFK | 1RYHPEHU | e | |||
| – | – | 1 April 2014 – 31 March 2017 | 12 November 2019 | e | |||
| Donal Murphy | – | – | 1 April 2009 – 31 March 2012 | 20 August 2012 | Ȝ | ||
| – | – | 1 April 2010 – 31 March 2013 | 15 November 2013 | €21.25 | |||
| – | (9,273) | 1 April 2011 – 31 March 2014 | 15 November 2014 | €17.50 | |||
| – | – | 1 April 2012 – 31 March 2015 | 12 November 2015 | Ȝ | |||
| 12,059 | – | – | \$SULOȂ0DUFK | 1RYHPEHU | e | ||
| – | – | 1 April 2014 – 31 March 2017 | 12 November 2019 | e | |||
| Fergal O'Dwyer | – | – | 1 April 2009 – 31 March 2012 | 20 August 2012 | Ȝ | ||
| – | – | 1 April 2010 – 31 March 2013 | 15 November 2013 | €21.25 | |||
| – | (9,273) | 1 April 2011 – 31 March 2014 | 15 November 2014 | €17.50 | |||
| – | – | 1 April 2012 – 31 March 2015 | 12 November 2015 | Ȝ | |||
| – | – | \$SULOȂ0DUFK | 1RYHPEHU | e | |||
| – | – | 1 April 2014 – 31 March 2017 | 12 November 2019 | e | |||
| Company Secretary | |||||||
| Gerard Whyte | – | – | 1 April 2009 – 31 March 2012 | 20 August 2012 | Ȝ | ||
| – | – | 1 April 2010 – 31 March 2013 | 15 November 2013 | €21.25 | |||
| 10,500 | – | 1 April 2011 – 31 March 2014 | 15 November 2014 | €17.50 | |||
| – | – | 1 April 2012 – 31 March 2015 | 12 November 2015 | Ȝ | |||
| 5,559 | – | – | \$SULOȂ0DUFK | 1RYHPEHU | e | ||
| – | – | 1 April 2014 – 31 March 2017 | 12 November 2019 | e | |||
The LTIP awards which were granted in November 2014 will vest in November 2019. The extent of vesting will be based on ROCE (40% of the WRWDODZDUG (36RIWKHWRWDODZDUG DQG765RIWKHWRWDODZDUG )XOOGHWDLOVRIWKHVHSHUIRUPDQFHFRQGLWLRQVLQFOXGLQJVSHFLȴF WDUJHWVZHUHVHWRXWLQWKH\$QQXDO5HSRUWRQ5HPXQHUDWLRQRQSDJHVDQGRIWKH\$QQXDO5HSRUW
'HWDLOVDVDW0DUFKRIWKHH[HFXWLYH'LUHFWRUVȇDQGWKH&RPSDQ\6HFUHWDU\ȇVRSWLRQVWRVXEVFULEHIRUVKDUHVXQGHUWKH'&&SOF Employee Share Option Scheme are set out in the table below.
| Number of options | Options exercised in year | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| At 31 March 2014 |
Exercised in year |
Lapsed in year |
At 31 March 2015 |
Weighted average option price at 31 March 2015 € |
Normal Exercise Period |
Exercise price € |
Market price at date of exercise e |
||
| Executive Directors | |||||||||
| Tommy Breen Basic Tier |
100,000 | (15,000) | – | Ȝ | 'HFȂ0D\ | Ȝ | e | ||
| Donal Murphy Basic Tier |
45,000 | (15,000) | – | 30,000 | €19.52 | -XOȂ0D\ | Ȝ | e | |
| Fergal O'Dwyer Basic Tier |
72,500 | (15,000) | – | 57,500 | €19.27 | 'HFȂ0D\ | Ȝ | e | |
| Company Secretary | |||||||||
| Gerard Whyte Basic Tier |
45,000 | (10,000) | – | 35,000 | Ȝ | 'HFȂ0D\ | Ȝ | e |
([HFXWLYH'LUHFWRUVDQGRWKHUVHQLRUH[HFXWLYHVSDUWLFLSDWHGLQWKH'&&SOF(PSOR\HH6KDUH2SWLRQ6FKHPH7KHWHQ\HDUSHULRG GXULQJZKLFKVKDUHRSWLRQVFRXOGEHJUDQWHGXQGHUWKLV6FKHPHH[SLUHGLQ-XQH2YHUWKHOLIHRIWKH6FKHPHWKHWRWDOQXPEHURIEDVLF and second tier options granted, net of options lapsed, amounted to 7.1% of issued share capital, of which 0.7% is currently outstanding. %DVLFWLHURSWLRQVPD\QRWQRUPDOO\EHH[HUFLVHGHDUOLHUWKDQWKUHH\HDUVIURPWKHGDWHRIJUDQWDQGVHFRQGWLHURSWLRQVQRWHDUOLHUWKDQȴYH years from the date of grant. Basic tier options may normally be exercised only if there has been growth in the adjusted earnings per share of the Company equivalent to the increase in the Consumer Price Index plus 2%, compound, per annum over a period of at least three years following the date of grant. Second tier options may normally be exercised only if the growth in the adjusted earnings per share over a SHULRGRIDWOHDVWȴYH\HDUVLVVXFKDVZRXOGSODFHWKH&RPSDQ\LQWKHWRSTXDUWLOHRIFRPSDQLHVRQWKHΖ6(4LQGH[LQWHUPVRIFRPSDULVRQ of growth in adjusted earnings per share and if there has been growth in the adjusted earnings per share of the Company equivalent to the increase in the Consumer Price Index plus 10%, compound, per annum in that period.
7KHPDUNHWSULFHRI'&&VKDUHVRQ0DUFKZDVeDQGWKHUDQJHGXULQJWKH\HDUZDVeWRe
\$GGLWLRQDOLQIRUPDWLRQLQUHODWLRQWRWKH'&&SOF/RQJ7HUPΖQFHQWLYH3ODQDQGWKH'&&SOF(PSOR\HH6KDUH2SWLRQ6FKHPH appears in note 10 on pages 142 to 144.
The shareholdings held by the executive Directors as at 31 March 2015, as shown below, are substantially in excess of the guidelines set out on page 90.
| Executive | Number of shares held as at 31 March 2015 |
Shareholding as a multiple of base salary for the year ended 31 March 2015 |
Share ownership guideline |
|---|---|---|---|
| Tommy Breen | 250,744 | 19.4 | 3.0 |
| Donal Murphy | 90,913 | 12.0 | 2.0 |
| Fergal O'Dwyer | 30.2 | 2.0 |
The shareholdings in the table comprise only the shares held by the executive Directors. Unvested and unexercised share options are not LQFOXGHG7KHVKDUHKROGLQJVDUHFDOFXODWHGEDVHGRQWKHVKDUHSULFHDW0DUFKRIeȜ
The Remuneration Committee comprises three independent non-executive Directors, Leslie Van de Walle (Chairman), David Byrne and Pam .LUE\DQGWKH&KDLUPDQRIWKH%RDUG-RKQ0RORQH\7KHPHPEHUVRIWKH&RPPLWWHHKDYHVLJQLȴFDQWȴQDQFLDODQGEXVLQHVVH[SHULHQFH including in the area of executive remuneration. Each member's length of tenure at 31 March 2015 is set out in the table below. Further biographical details regarding the members of the Remuneration Committee are set out on pages 70 to 71.
The Committee met six times during the year ended 31 March 2015 and there was full attendance by all members of the Committee, subject to one meeting which David Byrne could not attend. The main agenda items included remuneration policy and the operation of the DCC plc Long Term Incentive Plan 2009, remuneration trends and market practice, the remuneration packages of the Chairman, the Chief Executive, the other executive Directors and certain senior Group executives, pension matters, grants of share options under the Company's LTIP and approval of this report.
The Chief Executive and the Head of Group Human Resources may be invited to attend meetings of the Committee, except when their own remuneration is being discussed. No Director is involved in consideration of his or her own remuneration. The Company Secretary acts as secretary to the Remuneration Committee.
As detailed on page 75, the Board conducts an annual evaluation of its own performance and that of its Committees, Committee Chairmen and individual Directors. In 2015, this process was externally facilitated by the ICSA, in accordance with the Code. The conclusion from this process was that the performance of the Committee and of the Chairman of the Committee were satisfactory and that no changes were necessary to the Committee's Terms of Reference.
The Chairman of the Remuneration Committee reports to the Board at each meeting on the activities of the Committee.
The Chairman of the Remuneration Committee attends the Annual General Meeting to answer questions on the report on the Committees' activities and matters within the scope of the Committee's responsibilities.
The Remuneration Committee seeks independent advice when necessary from external consultants. Towers Watson acts as independent remuneration advisors to the Committee and during the year provided advice in relation to market trends, competitive positioning and developments in remuneration policy and practice. Towers Watson is a signatory to the Remuneration Consultants Group Code of Conduct and any advice was provided in accordance with this code. In light of this, and the level and nature of the service received, the Committee UHPDLQVVDWLVȴHGWKDWWKHDGYLFHLVLQGHHGREMHFWLYHDQGLQGHSHQGHQW
In the year to 31 March 2015, Towers Watson received fees of €53,000 in respect of advice provided to the Committee in regard to executive Director remuneration. Towers Watson also provided services to the Group on benchmarking, incentive design, Directors Remuneration Report and in relation to the LTIP.
ΖQWKH\HDUWR0DUFK0HUFHUUHFHLYHGIHHVRIȜDVSHQVLRQDGYLVRUVWRWKH&RPPLWWHH0HUFHUDOVRSURYLGHVVSHFLȴFDGYLFHRQ pension practice and developments and act as actuaries and pension advisors to a number of companies in the Group.
The table below shows the voting outcome at the 2014 AGM in relation to the 2014 Annual Report on Remuneration, the Remuneration Policy and the Amendments to the LTIP.
| Vote | Total votes cast | Total votes for | Total votes against | Total abstentions |
|---|---|---|---|---|
| Advisory vote on 2014 Annual Report on Remuneration | (99.17%) |
510,137 |
7,953 | |
| Advisory vote on 2014 Remuneration Policy | (1.07%) |
|||
| Binding vote on Amendments to the LTIP |
The Nomination and Governance Committee comprises John Moloney (Chairman) and two independent nonexecutive Directors, David Byrne and Leslie Van de Walle. Further biographical details regarding the members of the Nomination and Governance Committee are set out on pages 70 to 71.
As Chairman of DCC's Nomination and Governance Committee, I am pleased to present the report of the Committee for the year ended 31 March 2015 which has been prepared by the Committee and approved by the Board.
The responsibilities of the Committee are summarised in the table on page 102 and are set out in full in its Terms of Reference, which are available on the DCC website www.dcc.ie.
The Nomination and Governance Committee is responsible for keeping Board composition under constant review, including the skills, knowledge and experience required, taking account of the Group's businesses, strategic direction and diversity objectives. The Committee has overseen the development of an excellent balance of background and experience on our Board as vacancies have arisen in recent years.
In this context, the Committee undertook a formal process which led to the recommendation to the Board that David Jukes be appointed as a new non-executive Director of the Company in March 2015.
The Committee also engaged in a process in relation to the appointment of a new Chairman, following which I was appointed Chairman Designate in June 2014. I took up the position of Chairman in September 2014 following the retirement of Michael Buckley, my predecessor as Chairman of the Board and Chairman of this Committee.
The Committee is conscious of the merits of gender diversity on the Board, which currently comprises 30% female Directors. As I noted in my introduction to the Governance section, the Women on Boards Davies Review Annual Report 2015 ranks DCC at thirteenth in the FTSE 250 companies for its level of female Board representation.
The Committee is also responsible for reviewing corporate governance developments and in particular has reviewed the changes to the UK Corporate Governance Code issued in September 2014 ('the 2014 Code'). This applies to ȴQDQFLDOSHULRGVEHJLQQLQJDIWHU 1 October 2014 – in DCC's case for the ȴQDQFLDO\HDUWR0DUFK
:HFRQȴUPIXOOFRPSOLDQFHZLWKWKH UK Corporate Governance Code ('the Code') for the year ended 31 March 2015 and we KDYHLGHQWLȴHGWKHQHZUHTXLUHPHQWV emanating from the 2014 Code, with the objective of ensuring that DCC will be fully compliant with the 2014 Code for the ȴQDQFLDO\HDUWR0DUFK
On behalf of the Nomination and Governance Committee
Chairman, Nomination and Governance Committee 0D\
The length of tenure of the Directors on the Board and on the Nomination and Governance Committee is set out below. The length of tenure of members of other Board Committees is dealt with in the individual Committee reports.
* David Jukes joined the Board on 31 March 2015.
At each of its meetings during the year, the Nomination and Governance Committee considered the composition of the Board to ensure the Board had the appropriate combination of skills, knowledge and experience.
ΖQHDUO\WKH&RPPLWWHHLGHQWLȴHGDQHHGIRUDQHZQRQH[HFXWLYH'LUHFWRUZLWKH[SHULHQFHLQWKHGLVWULEXWLRQVHFWRULQWHUQDWLRQDOO\ at senior management and Board level, as well as a track record of business development internationally.
\$QH[WHUQDOSURIHVVLRQDOVHDUFKȴUP1RUPDQ%URDGEHQWZKRDOVRSURYLGHVHQLRUH[HFXWLYHVHDUFKDQGUHFUXLWPHQWVHUYLFHVWRWKH &RPSDQ\ZDVHPSOR\HGWRFDUU\RXWDZLGHUDQJLQJLQWHUQDWLRQDOVHDUFK7KHVHDUFKȴUPSURGXFHGDORQJOLVWRISRVVLEOHFDQGLGDWHV which was reviewed by the Chairman, who undertook preliminary interviews with a number of candidates. A short list was then drawn up, reviewed with and approved by the Committee. Those on the short list were interviewed by the Chairman and by a number of the executive and non-executive Directors. When David Jukes emerged as the preferred candidate, he further met on an individual basis with the executive Directors and most of the non-executive Directors, before a formal proposal was made to the Board. This culminated in David being appointed to the Board on 31 March 2015.
7KH&RPPLWWHHUHPDLQVIRFXVHGRQWKHLGHQWLȴFDWLRQRISRWHQWLDOQHZQRQH[HFXWLYH'LUHFWRUFDQGLGDWHVLQWKHFRQWH[WRI%RDUGVXFFHVVLRQ and renewal.
As noted in the introduction, John Moloney was appointed Chairman Designate in June 2014 and took up the position of Chairman of the Board in September 2014 following the retirement of Michael Buckley. As part of the process to appoint a new Chairman, the Committee gave detailed consideration to the requirements of the role and to John Moloney's previous executive and non-executive director H[SHULHQFHDQGFXUUHQWFRPPLWPHQWVDQGZDVVDWLVȴHGWKDWKHZDVWKHPRVWVXLWDEOHSHUVRQIRUWKHUROH
In accordance with the Code, Michael Buckley did not chair the Committee when it was dealing with the appointment of his successor as Chairman.
The Company did not use an external search consultancy or open advertising in relation to the appointment of the new Chairman as it was not deemed necessary.
During the year, John Moloney, David Byrne and Róisín Brennan each completed terms as non-executive Directors. After detailed consideration, including of performance and independence, the Committee recommended to the Board and the Board requested that they serve additional terms.
As noted in the Corporate Governance Statement on page 73, particular regard was taken of the fact that Róisín Brennan has served on the Board for nine and a half years.
Board diversity was a regular agenda item at Committee meetings during the year. A Board Diversity Policy, developed by the Committee and approved by the Board in 2013, is available on the Company's website www.dcc.ie.
A Group Diversity and Equal Opportunities Policy Statement, developed by Group Human Resources, has also been implemented in Group subsidiaries.
In reviewing the composition of the Board and giving consideration to the appointment of new non-executive Directors, the Committee WDNHVLQWRDFFRXQWWKHEHQHȴWVRIJHQGHUGLYHUVLW\GLYHUVLW\RIEXVLQHVVEDFNJURXQGDQGGLYHUVLW\RIJHRJUDSKLFDOORFDWLRQ
The composition of the Board in terms of gender and geographic location as at 31 March 2015 is illustrated below.
The Committee has particular regard to the leadership needs of the organisation and gives full consideration to succession planning for Directors and senior management, in particular the Chairman and Chief Executive, taking into account Group strategy, as well as the challenges and opportunities facing the Group and the skills and expertise required. A detailed succession management plan, prepared by the Chief Executive, is considered by the Committee on an annual basis and presented to the Board for approval.
The Committee also has oversight of Group management talent development programmes and reviews these with the Chief Executive before they are presented to the Board.
7KH&RPPLWWHHDGYLVHVWKH%RDUGRQVLJQLȴFDQWGHYHORSPHQWVLQWKHODZDQGSUDFWLFHRIFRUSRUDWHJRYHUQDQFHDQGPRQLWRUVWKH&RPSDQ\ȇV compliance with corporate governance best practice, with particular reference to the UK Corporate Governance Code. The Committee recommends any necessary action required to be adopted and implemented by the Board in respect of the Code, with particular reference to any revisions to the Code.
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The Nomination and Governance Committee reviewed and approved the Corporate Governance Statement in the Annual Report and other material being made public in respect of the Company's corporate governance.
The terms and conditions of appointment of non-executive Directors are set out in their letters of appointment, and include expected time commitment in respect of Board and Committee meetings, boardroom development training and visits to Group subsidiaries. The letters of DSSRLQWPHQWDUHDYDLODEOHIRULQVSHFWLRQDWWKH&RPSDQ\ȇVUHJLVWHUHGRɝFHGXULQJQRUPDORɝFHKRXUVDQGDWWKH\$QQXDO*HQHUDO0HHWLQJ of the Company.
The Nomination and Governance Committee comprises John Moloney (Chairman) and two independent non-executive Directors, David Byrne and Leslie Van De Walle. Each member's length of tenure at 31 March 2015 is set out in the table on page 102. Further biographical details regarding the members of the Nomination and Governance Committee are set out on pages 70 to 71.
The Nomination and Governance Committee met eight times during the year ended 31 March 2015 and there was full attendance by all members of the Committee.
The Chief Executive, other executives and external advisers are invited to attend all or part of any meeting. The Company Secretary is the secretary to the Nomination and Governance Committee.
As detailed on page 75, the Board conducts an annual evaluation of its own performance and that of its Committees, Committee Chairmen and individual Directors. In 2015, this process was externally facilitated by the ICSA, in accordance with the Code. The conclusion from this process was that the performance of the Committee and of the Chairman of the Committee was satisfactory and that no changes were necessary to the Committee's Terms of Reference.
The Chairman of the Nomination and Governance Committee reports to the Board at each meeting on the activities of the Committee.
The Chairman of the Nomination and Governance Committee attends the Annual General Meeting to answer questions on the report on the Committees' activities and matters within the scope of the Committee's responsibilities.
7KH'LUHFWRUVRI'&&SOFSUHVHQWWKHLUUHSRUWDQGWKHDXGLWHGȴQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK
5HYHQXHIRUWKH\HDUDPRXQWHGWRePLOOLRQePLOOLRQ 7KHSURȴWIRUWKH\HDUDWWULEXWDEOHWRRZQHUVRIWKH3DUHQW DPRXQWHGWRePLOOLRQePLOOLRQ \$GMXVWHGHDUQLQJVSHUVKDUHDPRXQWHGWRSHQFHSHQFH )XUWKHUGHWDLOV of the results for the year are set out in the Group Income Statement on page 115.
7KH&KDLUPDQȇV0HVVDJHRQSDJHVWRWKH&KLHI([HFXWLYHȇV5HYLHZRQSDJHVWRWKH2SHUDWLQJ5HYLHZVRQSDJHVWRDQGWKH )LQDQFLDO5HYLHZRQSDJHVWRFRQWDLQDUHYLHZRIWKHGHYHORSPHQWDQGSHUIRUPDQFHRIWKH*URXSȇVEXVLQHVVGXULQJWKH\HDURIWKH VWDWHRIDDLUVRIWKHEXVLQHVVDW0DUFKRIUHFHQWHYHQWVDQGRIOLNHO\IXWXUHGHYHORSPHQWVΖQIRUPDWLRQLQUHVSHFWRIHYHQWV VLQFHWKH\HDUHQGDVUHTXLUHGE\WKH&RPSDQLHV\$PHQGPHQW \$FWLVLQFOXGHGLQWKHVHVHFWLRQVDQGLQQRWHRQSDJH
\$QLQWHULPGLYLGHQGRISHQFHSHUVKDUHDPRXQWLQJWRePLOOLRQZDVSDLGRQ1RYHPEHU7KH'LUHFWRUVUHFRPPHQGWKH SD\PHQWRIDȴQDOGLYLGHQGRISHQFHSHUVKDUHDPRXQWLQJWRePLOOLRQEDVHGRQWKHQXPEHURIVKDUHVLQLVVXHDW0D\ Subject to shareholders' approval at the Annual General Meeting on 17 July 2015, this dividend will be paid on 23 July 2015 to shareholders RQWKHUHJLVWHURQ0D\7KHWRWDOGLYLGHQGIRUWKH\HDUHQGHG0DUFKDPRXQWVWRSHQFHSHUVKDUHDWRWDORIe million. This represents an increase of 10% on the prior year's total dividend per share.
7KHSURȴWDWWULEXWDEOHWRRZQHUVRIWKH3DUHQWZKLFKKDVEHHQWUDQVIHUUHGWRUHVHUYHVDQGWKHGLYLGHQGVSDLGGXULQJWKH\HDUHQGHG 31 March 2015 are shown in note 40 on page 173.
'&&ȇVDXWKRULVHGVKDUHFDSLWDOLVRUGLQDU\VKDUHVRIȜHDFKRIZKLFKVKDUHVH[FOXGLQJWUHDVXU\VKDUHV DQG 4,211,270 treasury shares were in issue at 31 March 2015. All of these shares are of the same class. With the exception of treasury shares which have no voting rights and no entitlement to dividends, they all carry equal voting rights and rank for dividends.
7KHQXPEHURIVKDUHVKHOGDVWUHDVXU\VKDUHVDWWKHEHJLQQLQJRIWKH\HDUDQGWKHPD[LPXPQXPEHUKHOGGXULQJWKH\HDU ZDV (4.95% of the issued share capital) with a nominal value of €1.092 million.
\$WRWDORIVKDUHVRIWKHLVVXHGVKDUHFDSLWDO ZLWKDQRPLQDOYDOXHRIȜPLOOLRQZHUHUHLVVXHGGXULQJWKH\HDUDWSULFHV UDQJLQJIURPȜWRȜFRQVHTXHQWWRWKHH[HUFLVHRIVKDUHRSWLRQVXQGHUWKH'&&SOF(PSOR\HH6KDUH2SWLRQ6FKHPHDQGWKH DCC plc Long Term Incentive Plan 2009, leaving a balance held as treasury shares at 31 March 2015 of 4,211,270 shares (4.77% of the issued share capital) with a nominal value of €1.053 million.
\$WWKH\$QQXDO*HQHUDO0HHWLQJKHOGRQ-XO\WKH&RPSDQ\ZDVJUDQWHGDXWKRULW\WRSXUFKDVHXSWRRILWVRZQVKDUHV RIWKHLVVXHGVKDUHFDSLWDO ZLWKDQRPLQDOYDOXHRIȜPLOOLRQ7KLVDXWKRULW\KDVQRWEHHQH[HUFLVHGDQGZLOOH[SLUHRQ-XO\ the date of the next Annual General Meeting of the Company. A special resolution will be proposed at the Annual General Meeting to renew this authority.
At each Annual General Meeting, in addition to the authority to buy back shares referred to above, the Directors seek authority to exercise all the powers of the Company to allot shares up to an aggregate amount of €7,352,400, representing approximately one third of the issued share capital of the Company.
The Directors also seek authority to allot shares for cash, other than strictly pro-rata to existing shareholdings. This proposed authority is OLPLWHGWRWKHDOORWPHQWRIVKDUHVLQVSHFLȴFFLUFXPVWDQFHVUHODWLQJWRULJKWVLVVXHVDQGRWKHULVVXHVXSWRDSSUR[LPDWHO\RIWKHLVVXHG share capital of the Company.
Details of the share capital of the Company are set out in note 37 on page 171 and are deemed to form part of this Report.
Under Irish company law (Regulation 37 of the European Communities (Companies: Group Accounts) Regulations 1992, as amended), DCC is required to give a description of the principal risks and uncertainties facing the Group. These are addressed in the Risk Report on pages 10 to 15.
The names of the Directors and a short biographical note on each Director appear on pages 70 to 71.
In accordance with the UK Corporate Governance Code, all Directors submit to re-election at each Annual General Meeting.
With the exception of Tommy Breen, who has a service agreement with a notice period of twelve months, none of the other Directors has a service contract with the Company or with any member of the Group.
'HWDLOVRIWKH'LUHFWRUVȇLQWHUHVWVLQWKHVKDUHFDSLWDORIWKH&RPSDQ\DUHVHWRXWLQWKH5HPXQHUDWLRQ5HSRUWRQSDJHVWR
7KH&RUSRUDWH*RYHUQDQFH6WDWHPHQWRQSDJHVWRVHWVRXWWKH&RPSDQ\ȇVDSSOLDQFHRIWKHSULQFLSOHVDQGFRPSOLDQFHZLWKWKH provisions of the UK Corporate Governance Code, the Group's system of risk management and internal control and the adoption of WKHJRLQJFRQFHUQEDVLVLQSUHSDULQJWKHȴQDQFLDOVWDWHPHQWV7KH&RUSRUDWH*RYHUQDQFH6WDWHPHQWVKDOOEHWUHDWHGDVIRUPLQJSDUW of this Report.
DCC plc is fully compliant with the 2012 version of the UK Corporate Governance Code, which applied to the Company for the year ended 31 March 2015.
)RUWKHSXUSRVHVRIWKH(XURSHDQ&RPPXQLWLHV7DNHRYHU%LGV'LUHFWLYH(& 5HJXODWLRQVGHWDLOVFRQFHUQLQJWKH appointment and the re-election of Directors and the amendment of the Company's Articles of Association are set out in the Corporate Governance Statement.
7KH&RPSDQ\ȇV\$QQXDO*HQHUDO0HHWLQJȆ\$*0ȇ DRUGVVKDUHKROGHUVWKHRSSRUWXQLW\WRTXHVWLRQWKH&KDLUPDQWKH%RDUGDQGWKH Chairmen of the Audit, Remuneration and Nomination and Governance Committees. The Chief Executive presents at the AGM on the Group's business and its performance during the prior year and answers questions from shareholders.
Notice of the AGM, the Form of Proxy and the Annual Report are sent to shareholders at least 20 working days before the AGM. At the AGM, resolutions are voted on by a show of hands of those shareholders attending, in person or by proxy. After each resolution has been dealt with, details are given of the level of proxy votes cast on each resolution and the numbers for, against and withheld.
If validly requested, resolutions can be voted by way of a poll. In a poll, the votes of shareholders present and voting at the AGM are added to the proxy votes received in advance of the AGM and the total number of votes for, against and withheld for each resolution are announced.
All other general meetings are called Extraordinary General Meetings ('EGM'). An EGM called for the passing of a special resolution must be FDOOHGE\DWOHDVWWZHQW\RQHFOHDUGD\VȇQRWLFH3URYLGHGVKDUHKROGHUVKDYHSDVVHGDVSHFLDOUHVROXWLRQWRWKDWHHFWDWWKHLPPHGLDWHO\ preceding AGM and the Company continues to allow shareholders to vote by electronic means, an EGM to consider an ordinary resolution may be called at fourteen clear days' notice.
A quorum for an AGM or an EGM of the Company is constituted by three shareholders, present in person, by proxy or by a duly authorised representative in the case of a corporate member. The passing of resolutions at a general meeting, other than special resolutions, requires a simple majority. To be passed, a special resolution requires a majority of at least 75% of the votes cast.
Shareholders have the right to attend, speak, ask questions and vote at general meetings. In accordance with Irish company law, the &RPSDQ\VSHFLȴHVUHFRUGGDWHVIRUJHQHUDOPHHWLQJVE\ZKLFKGDWHVKDUHKROGHUVPXVWEHUHJLVWHUHGLQWKH5HJLVWHURI0HPEHUVRIWKH &RPSDQ\WREHHQWLWOHGWRDWWHQG5HFRUGGDWHVDUHVSHFLȴHGLQWKHQRWHVWRWKH1RWLFHFRQYHQLQJWKHPHHWLQJ
Shareholders may exercise their right to vote by appointing a proxy/proxies, by electronic means or in writing, to vote on some or all of their shares. The requirements for the receipt of valid proxy forms are set out in the notes to the Notice convening the meeting.
A shareholder or a group of shareholders, holding at least 5% of the issued share capital of the Company, has the right to requisition a general meeting. A shareholder or a group of shareholders, holding at least 3% of the issued share capital, has the right to put an item on the agenda of an AGM or to table a draft resolution for an item on the agenda of a general meeting.
The 2015 AGM will be held at 11.00 a.m. on 17 July 2015 at the InterContinental Hotel, Simmonscourt Road, Ballsbridge, Dublin 4, Ireland.
The Company's Memorandum and Articles of Association sets out the objects and powers of the Company. The Articles of Association detail the rights attaching to shares, the method by which the Company's shares can be purchased or re-issued, the provisions which apply to the holding of and voting at general meetings and the rules relating to the Directors, including their appointment, retirement, re-election, duties and powers.
The Company's Articles of Association may be amended by a special resolution passed by the shareholders at an AGM or EGM of the Company.
A copy of the Memorandum and Articles of Association can be obtained from the Company's website www.dcc.ie.
The Notice of the 2015 AGM sets out details of a resolution to be put to shareholders at the AGM in regard to changes to the Memorandum and Articles of Association of the Company to align them with the requirements of the new Irish Companies Act 2014.
As required by the Transparency Rules published by the Central Bank of Ireland under Section 22 of the Investment Funds, Companies DQG0LVFHOODQHRXV3URYLVLRQV\$FWWKHIROORZLQJVHFWLRQVRIWKH\$QQXDO5HSRUWVKDOOEHWUHDWHGDVIRUPLQJSDUWRIWKLV5HSRUWWKH &KDLUPDQȇV0HVVDJHRQSDJHVWRWKH&KLHI([HFXWLYHȇV5HYLHZRQSDJHVWRWKH2SHUDWLQJ5HYLHZVRQSDJHVWRWKH)LQDQFLDO 5HYLHZRQSDJHVWRWKH3ULQFLSDO5LVNVDQG8QFHUWDLQWLHVRQSDJHVWRWKHHDUQLQJVSHURUGLQDU\VKDUHLQQRWHRQSDJH WKH.H\3HUIRUPDQFHΖQGLFDWRUVRQSDJHDQGWKHGHULYDWLYHȴQDQFLDOLQVWUXPHQWVLQQRWHRQSDJH
7KH&RPSDQ\KDVEHHQQRWLȴHGRIWKHIROORZLQJVKDUHKROGLQJVRIRUPRUHLQWKHLVVXHGVKDUHFDSLWDOH[FOXGLQJWUHDVXU\VKDUHV RIWKH &RPSDQ\DVDW0DUFKDQG0D\ As at 31 March 2015 \$VDW0D\
| No. of €0.25 Ordinary Shares |
% of Issued Share Capital (excluding treasury shares) |
No. of €0.25 Ordinary Shares |
% of Issued Share Capital (excluding treasury shares) |
||
|---|---|---|---|---|---|
| FMR LLC and FIL Limited on behalf of its direct and indirect subsidiaries* | 11,012,773 | 13.11% | |||
| Invesco* | 5.32% | 5.24% | |||
| Blackrock* | 4.34% | ||||
| Setanta Asset Management* | 3.95% | ||||
| Mawer Investment Management* | 3.90% | 3,277,427 | 3.90% | ||
| Jim Flavin | 3.13% | 3.13% |
* notified as non-beneficial interests
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Certain Group companies are involved in ongoing development work aimed at improving the quality, competitiveness, technology and range of their products.
There were no political contributions which require to be disclosed under the Electoral Act, 1997.
The Directors are responsible for ensuring that proper books and accounting records, as outlined in Section 202 of the Companies Act, 1990, are kept by the Company. The Directors believe that they have complied with this requirement by providing adequate resources to maintain proper books and accounting records throughout the Group including the appointment of personnel with appropriate TXDOLȴFDWLRQVH[SHULHQFHDQGH[SHUWLVH7KHERRNVDQGDFFRXQWLQJUHFRUGVRIWKH&RPSDQ\DUHPDLQWDLQHGDWWKH&RPSDQ\ȇVUHJLVWHUHG RɝFH'&&+RXVH/HRSDUGVWRZQ5RDG)R[URFN'XEOLQΖUHODQG
7KH&RPSDQ\KDVFHUWDLQȴQDQFLQJIDFLOLWLHVZKLFKPD\UHTXLUHUHSD\PHQWLQWKHHYHQWWKDWDFKDQJHLQFRQWURORFFXUVZLWKUHVSHFWWRWKH Company. In addition, the Company's long term incentive plans contain change of control provisions which can allow for the acceleration of the exercise of share options or awards in the event that a change of control occurs with respect to the Company.
A formal external audit tender process has now been completed by the Audit Committee on behalf of the Board and KPMG have been VHOHFWHGE\WKH%RDUGDVWKHQHZVWDWXWRU\DXGLWRUVLQUHVSHFWRIWKHȴQDQFLDO\HDUWR0DUFK\$VKDUHKROGHUUHVROXWLRQDWWKH\$*0 is required for the appointment of new statutory auditors and the Board is recommending that KPMG be appointed.
3ULFHZDWHUKRXVH&RRSHUVLQWHQGWRUHVLJQDVVWDWXWRU\DXGLWRUVZLWKHHFWIURP-XQHDQGKDYHFRQȴUPHGLQDFFRUGDQFHZLWK 6HFWLRQRIWKH&RPSDQLHV\$FWWKDWWKHUHDUHQRFLUFXPVWDQFHVFRQQHFWHGZLWKWKHLUUHVLJQDWLRQZKLFKVKRXOGEHEURXJKWWRWKH attention of members or creditors of the Company.
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John Moloney Tommy Breen 1RQH[HFXWLYH&KDLUPDQ &KLHI([HFXWLYH
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Overview
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Goodwill impairment assessment
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ΖQWKHSHULRGVLQFH\HDUHQGWKH*URXS KDVHQWHUHGLQWRDQDJUHHPHQWLQSULQFLSOH WRDFTXLUHRI%XWDJD]D)UHQFK/3* business. The Group has disclosed the IDLUYDOXHRIFRQVLGHUDWLRQDQGWKHLQLWLDO DVVHVVPHQWRIWKHDVVHWVDFTXLUHGDVSDUWRI WKHDFTXLVLWLRQLQUHVSHFWRIWKLVFRPPLWPHQW
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| Area of focus | How our audit addressed the area of focus |
|---|---|
| Revenue recognition The Group has a number of different divisions with different revenue recognition |
We evaluated the relevant IT systems and tested the internal controls over the completeness, accuracy and timing of revenue recognised in the financial statements. |
| policies. We focused on the terms of sale arrangements within each of the Group's divisions, including the timing of transfer of risk and rewards and the nature of discount |
We read the relevant customer terms of sale and agreements and tested the accounting for consistency with those terms of sale for the Group's businesses. Our work included consideration of the accounting for and presentation of rebate and discount arrangements. |
| and rebate arrangements. | We also tested journal entries posted to revenue accounts focusing on unusual or irregular items. |
| Financial instruments accounting - presentation, valuation and disclosure The Group manages its treasury function |
We tested the fair values ascribed to treasury instruments, including derivatives by reference to observable foreign exchange rates, interest rates or broker prices. |
| and engages in financial risk management using a variety of tools including derivative |
As set out in note 29 derivatives are valued in accordance with level 2 of the fair value hierarchy. |
| instruments to hedge exposure to interest rate, commodity and currency risks. In addition the Group actively manages corporate debt and during the year it issued new Private Placement debt. |
We tested the year-end reconciliation process and we independently obtained third party confirmations of year-end balances. We tested the assessment of hedge ineffectiveness by evaluation of hedging processes and procedures, consideration of hedging documentation and independent valuation of the treasury instruments at year-end and considered the classification of hedge ineffectiveness within exceptional items in accordance with the Group's accounting policy. |
| We focused on the accounting for financial instruments given the extent of the movement in US Dollar, Sterling and Euro exchange rates and the decrease in oil prices during the year. |
We obtained an understanding of the Group's Private Placement debt agreements and evaluated the related disclosures in note 30 of the Group financial statements. |
| We considered the disclosure of financial instruments (note 47) and of key financial risks (note 2). |
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| Overall Group materiality | £8.5 million (31 March 2014: £8.5 million). |
|---|---|
| How we determined it | This represents circa. 5% of profit before tax and exceptional items. |
| Rationale for benchmark applied | In our professional judgement, this benchmark is the best measure of recurring financial performance. |
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| 2015 | Restated 2014 | ||||||
|---|---|---|---|---|---|---|---|
| Note | Pre exceptionals £'000 |
Exceptionals (note 11) £'000 |
Total £'000 |
3UH exceptionals eȇ |
Exceptionals QRWH eȇ |
Total eȇ |
|
| Continuing operations | |||||||
| Revenue Cost of sales |
5 | 10,606,080 (9,781,910) |
– – |
10,606,080 | (9,781,910) |
– – |
|
| *URVVSURȴW | 824,170 | – | 824,170 | – | |||
| \$GPLQLVWUDWLRQH[SHQVHV | (262,923) | – | (262,923) | – | |||
| 6HOOLQJDQGGLVWULEXWLRQH[SHQVHV | (350,978) | – | (350,978) | – | |||
| 2WKHURSHUDWLQJLQFRPH | 6 | 19,657 | 3,798 | 23,455 | |||
| Other operating expenses | 6 | (8,210) | (23,602) | (31,812) | |||
| 2SHUDWLQJSURȴWEHIRUHDPRUWLVDWLRQ | |||||||
| of intangible assets | 5 | 221,716 | (19,804) | 201,912 | |||
| \$PRUWLVDWLRQRILQWDQJLEOHDVVHWV | 5 | (24,057) | – | (24,057) | – | ||
| 2SHUDWLQJSURȴW | 197,659 | (19,804) | 177,855 | ||||
| )LQDQFHFRVWV | 12 | (60,216) | (2,191) | (62,407) | |||
| )LQDQFHLQFRPH | 12 | 31,288 | – | 31,288 | – | ||
| 6KDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVȇ | |||||||
| SURȴWDIWHUWD[ | 14 | 402 | – | 402 | – | ||
| 3URȴWEHIRUHWD[IURPFRQWLQXLQJ | |||||||
| operations | 169,133 | (21,995) | 147,138 | ||||
| 3URȴWIRUWKHȴQDQFLDO\HDUIURP | |||||||
| discontinued operations | 16 | 5,088 | 11,079 | 16,167 | |||
| 3URȴWEHIRUHWD[ | 174,221 | (10,916) | 163,305 | ||||
| ΖQFRPHWD[H[SHQVH | 15 | (18,881) | – | (18,881) | |||
| 3URȴWDIWHUWD[IRUWKHȴQDQFLDO\HDU | 155,340 | (10,916) | 144,424 | ||||
| 3URȴWDWWULEXWDEOHWR | |||||||
| 2ZQHUVRIWKH3DUHQW | 144,427 | ||||||
| Non-controlling interests | (3) | ||||||
| 144,424 | |||||||
| 3URȴWDIWHUWD[IRUWKHȴQDQFLDO\HDUFRPSULVHV 3URȴWDIWHUWD[IURPFRQWLQXLQJRSHUDWLRQV |
128,661 | ||||||
| 3URȴWDIWHUWD[IURPGLVFRQWLQXHGRSHUDWLRQV | 15,763 | ||||||
| 144,424 | |||||||
| Earnings per ordinary share %DVLFȂFRQWLQXLQJRSHUDWLRQV |
153.20p | 144.02p | |||||
| %DVLFȂGLVFRQWLQXHGRSHUDWLRQV | 19 | 18.77p | S |
||||
| %DVLF | 19 | 171.97p | S |
||||
| 19 | |||||||
| Diluted – continuing operations | 19 | 152.10p | S |
||||
| Diluted – discontinued operations | 19 | 18.63p | S |
||||
| Diluted | 19 | 170.73p | S |
| Note | 2015 £'000 |
2014 eȇ |
|
|---|---|---|---|
| *URXSSURȴWIRUWKHȴQDQFLDO\HDU | 144,424 | ||
| 2WKHUFRPSUHKHQVLYHLQFRPH | |||
| ΖWHPVWKDWPD\EHUHFODVVLȴHGVXEVHTXHQWO\WRSURȴWRUORVV | |||
| &XUUHQF\WUDQVODWLRQ | |||
| ȂDULVLQJLQWKH\HDU | (15,007) | ||
| ȂUHF\FOHGWRWKHΖQFRPH6WDWHPHQWRQGLVSRVDO | (2,721) | ||
| 0RYHPHQWVUHODWLQJWRFDVKȵRZKHGJHV | (6,942) | ||
| 0RYHPHQWLQGHIHUUHGWD[OLDELOLW\RQFDVKȵRZKHGJHV | 324 | ||
| (24,346) | |||
| ΖWHPVWKDWZLOOQRWEHUHFODVVLȴHGWRSURȴWRUORVV | |||
| *URXSGHȴQHGEHQHȴWSHQVLRQREOLJDWLRQV | |||
| ȂUHPHDVXUHPHQWV | 33 | (19,302) | |
| ȂPRYHPHQWLQGHIHUUHGWD[DVVHW | 2,187 | ||
| (17,115) | |||
| 2WKHUFRPSUHKHQVLYHLQFRPHIRUWKHȴQDQFLDO\HDUQHWRIWD[ | (41,461) | ||
| 7RWDOFRPSUHKHQVLYHLQFRPHIRUWKHȴQDQFLDO\HDU | 102,963 | ||
| \$WWULEXWDEOHWR | |||
| 2ZQHUVRIWKH3DUHQW | 103,555 | ||
| Non-controlling interests | (592) | ||
| 102,963 | |||
| \$WWULEXWDEOHWR | |||
| Continuing operations | 103,378 | ||
| Discontinued operations | (415) | ||
| 102,963 | |||
| Restated | |||
|---|---|---|---|
| Note | 2015 £'000 |
2014 eȇ |
|
| ASSETS Non-current assets |
|||
| 3URSHUW\SODQWDQGHTXLSPHQW | 20 | 464,689 | |
| Intangible assets | 21 | 759,179 | |
| (TXLW\DFFRXQWHGLQYHVWPHQWV | 22 | 4,963 | |
| 'HIHUUHGLQFRPHWD[DVVHWV | 32 | 9,380 | |
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV | 29 | 233,150 | |
| 1,471,361 | |||
| Current assets | |||
| ΖQYHQWRULHV | 24 | 320,655 | |
| 7UDGHDQGRWKHUUHFHLYDEOHV | 25 | 847,274 | |
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV | 29 | 5,395 | |
| &DVKDQGFDVKHTXLYDOHQWV | 28 1,260,942 | ||
| 2,434,266 | |||
| \$VVHWVFODVVLȴHGDVKHOGIRUVDOH | 16 | 12,196 | – |
| 2,446,462 | |||
| Total assets | 3,917,823 | ||
| EQUITY Capital and reserves attributable to owners of the Parent |
|||
| 6KDUHFDSLWDO | 14,688 | ||
| 6KDUHSUHPLXP | 37 | 83,032 | |
| 6KDUHEDVHGSD\PHQWUHVHUYH | 38 39 |
12,756 | |
| &DVKȵRZKHGJHUHVHUYH | 39 | (10,462) | |
| )RUHLJQFXUUHQF\WUDQVODWLRQUHVHUYH | 39 | 32,683 | |
| 2WKHUUHVHUYHV | 39 | 932 | |
| Retained earnings | 40 | 849,119 | |
| Equity attributable to owners of the Parent | 982,748 | ||
| Non-controlling interests | 41 | 4,245 | |
| Total equity | 986,993 | ||
| LIABILITIES Non-current liabilities |
|||
| %RUURZLQJV | 30 1,314,386 | ||
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV | 29 | 92 | |
| 'HIHUUHGLQFRPHWD[OLDELOLWLHV | 32 | 30,533 | |
| 3RVWHPSOR\PHQWEHQHȴWREOLJDWLRQV | 33 | 10,230 | |
| 3URYLVLRQVIRUOLDELOLWLHVDQGFKDUJHV | 35 | 29,016 | |
| &RQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQ | 34 | 40,149 | |
| *RYHUQPHQWJUDQWV | 36 | 1,272 | |
| 1,425,678 | |||
| Current liabilities | |||
| 7UDGHDQGRWKHUSD\DEOHV | 26 | 1,312,136 | |
| &XUUHQWLQFRPHWD[OLDELOLWLHV | 16,095 | ||
| %RUURZLQJV | 30 | 149,472 | |
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV | 29 | 7,902 | |
| 3URYLVLRQVIRUOLDELOLWLHVDQGFKDUJHV | 35 | 8,096 | |
| &RQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQ | 34 | 3,235 | |
| 1,496,936 | |||
| /LDELOLWLHVDVVRFLDWHGZLWKDVVHWVFODVVLȴHGDVKHOGIRUVDOH | 16 | 8,216 | – |
| 1,505,152 | |||
| Total liabilities | 2,930,830 | ||
| Total equity and liabilities | 3,917,823 |
| Attributable to owners of the Parent | |||||||
|---|---|---|---|---|---|---|---|
| Share capital £'000 |
Share premium £'000 |
Retained earnings £'000 |
Other reserves (note 39) £'000 |
Total £'000 |
Non controlling interests £'000 |
Total equity £'000 |
|
| At 1 April 2014 | 14,688 | 83,032 | 786,158 | 57,540 | 941,418 | 4,837 | 946,255 |
| 3URȴWIRUWKHȴQDQFLDO\HDU | – | – | 144,427 | – | 144,427 | (3) | 144,424 |
| 2WKHUFRPSUHKHQVLYHLQFRPH | |||||||
| &XUUHQF\WUDQVODWLRQ | |||||||
| ȂDULVLQJLQWKH\HDU | – | – | – | (14,418) | (14,418) | (589) | (15,007) |
| ȂUHF\FOHGWRWKHΖQFRPH6WDWHPHQWRQGLVSRVDO | – | – | – | (2,721) | (2,721) | – | (2,721) |
| *URXSGHȴQHGEHQHȴWSHQVLRQREOLJDWLRQV | |||||||
| ȂUHPHDVXUHPHQWV | – | – | (19,302) | – | (19,302) | – | (19,302) |
| ȂPRYHPHQWLQGHIHUUHGWD[DVVHW | – | – | 2,187 | – | 2,187 | – | 2,187 |
| 0RYHPHQWVUHODWLQJWRFDVKȵRZKHGJHV | – | – | – | (6,942) | (6,942) | – | (6,942) |
| 0RYHPHQWLQGHIHUUHGWD[OLDELOLW\RQFDVKȵRZKHGJHV | – | – | – | 324 | 324 | – | 324 |
| Total comprehensive income | – | – | 127,312 | (23,757) | 103,555 | (592) | 102,963 |
| 5HLVVXHRIWUHDVXU\VKDUHV | – | – | 1,699 | – | 1,699 | – | 1,699 |
| 6KDUHEDVHGSD\PHQW | – | – | – | 2,126 | 2,126 | – | 2,126 |
| 'LYLGHQGV | – | – | (66,050) | – | (66,050) | – | (66,050) |
| At 31 March 2015 | 14,688 | 83,032 | 849,119 | 35,909 | 982,748 | 4,245 | 986,993 |
)RUWKH\HDUHQGHG0DUFK
| \$WWULEXWDEOHWRRZQHUVRIWKH3DUHQW | |||||||
|---|---|---|---|---|---|---|---|
| 6KDUH capital eȇ |
6KDUH SUHPLXP eȇ |
Retained earnings eȇ |
Other UHVHUYHV QRWH eȇ |
Total eȇ |
Non controlling interests eȇ |
Total HTXLW\ eȇ |
|
| \$W\$SULO | |||||||
| 3URȴWIRUWKHȴQDQFLDO\HDU | – | – | – |
2WKHUFRPSUHKHQVLYHLQFRPH
| &XUUHQF\WUDQVODWLRQ | ||||||
|---|---|---|---|---|---|---|
| ȂDULVLQJLQWKH\HDU | – | – | – | |||
| ȂUHF\FOHGWRWKHΖQFRPH6WDWHPHQWRQGLVSRVDO | – | – | – | – |
||
| *URXSGHȴQHGEHQHȴWSHQVLRQREOLJDWLRQV | ||||||
| ȂUHPHDVXUHPHQWV | – | – | – | – |
||
| ȂPRYHPHQWLQGHIHUUHGWD[DVVHW | – | – | – | – |
||
| 0RYHPHQWVUHODWLQJWRFDVKȵRZKHGJHV | – | – | – | – |
||
| 0RYHPHQWLQGHIHUUHGWD[OLDELOLW\RQFDVKȵRZKHGJHV | – | – | – | – |
||
| 7RWDOFRPSUHKHQVLYHLQFRPH | – | – | ||||
| 5HLVVXHRIWUHDVXU\VKDUHV | – | – | – | – |
||
| 6KDUHEDVHGSD\PHQW | – | – | – | – |
||
| 'LYLGHQGV | – | – | – | |||
| \$W0DUFK |
| Restated | |||
|---|---|---|---|
| Note | 2015 £'000 |
2014 eȇ |
|
| Operating activities | |||
| &DVKJHQHUDWHGIURPRSHUDWLRQVEHIRUHH[FHSWLRQDOV | 42 | 377,818 | |
| Exceptionals | (16,454) | ||
| &DVKJHQHUDWHGIURPRSHUDWLRQV | 361,364 | ||
| Interest paid | (59,678) | ||
| ΖQFRPHWD[SDLG | (32,361) | ||
| 1HWFDVKȵRZVIURPRSHUDWLQJDFWLYLWLHV | 269,325 | ||
| Investing activities | |||
| ΖQȵRZV | |||
| 3URFHHGVIURPGLVSRVDORISURSHUW\SODQWDQGHTXLSPHQW | 16,054 | ||
| *RYHUQPHQWJUDQWVUHFHLYHG | 36 | 52 | 100 |
| 'LYLGHQGVUHFHLYHGIURPHTXLW\DFFRXQWHGLQYHVWPHQWV | 828 | ||
| 'LVSRVDOVRIVXEVLGLDULHVDQGHTXLW\DFFRXQWHGLQYHVWPHQWV | 16 | 55,090 | |
| ΖQWHUHVWUHFHLYHG | 31,222 | ||
| 103,246 | |||
| 2XWȵRZV | |||
| 3XUFKDVHRISURSHUW\SODQWDQGHTXLSPHQW | (79,401) | ||
| \$FTXLVLWLRQRIVXEVLGLDULHV | 46 | (107,223) | |
| &RQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQSDLG | (16,326) | ||
| (202,950) | |||
| 1HWFDVKȵRZVIURPLQYHVWLQJDFWLYLWLHV | (99,704) | ||
| Financing activities | |||
| ΖQȵRZV | |||
| 5HLVVXHRIWUHDVXU\VKDUHV | 1,699 | ||
| ΖQFUHDVHLQLQWHUHVWEHDULQJORDQVDQGERUURZLQJV | 448,989 | ||
| 1HWFDVKLQȵRZRQGHULYDWLYHȴQDQFLDOLQVWUXPHQWV | – | ||
| ΖQFUHDVHLQȴQDQFHOHDVHOLDELOLWLHV | – | ||
| 450,688 | |||
| 2XWȵRZV | |||
| 5HSD\PHQWRILQWHUHVWEHDULQJORDQVDQGERUURZLQJV | (169,631) | ||
| 5HSD\PHQWRIȴQDQFHOHDVHOLDELOLWLHV | (486) | ||
| 1HWFDVKRXWȵRZRQGHULYDWLYHȴQDQFLDOLQVWUXPHQWV | (9,832) | – | |
| 'LYLGHQGVSDLGWRRZQHUVRIWKH3DUHQW | 18 | (66,050) | |
| 'LYLGHQGVSDLGWRQRQFRQWUROOLQJLQWHUHVWV | 41 | – | |
| (245,999) | |||
| 1HWFDVKȵRZVIURPȴQDQFLQJDFWLYLWLHV | 204,689 | ||
| &KDQJHLQFDVKDQGFDVKHTXLYDOHQWV | 374,310 | ||
| 7UDQVODWLRQDGMXVWPHQW | (58,206) | ||
| &DVKDQGFDVKHTXLYDOHQWVDWEHJLQQLQJRI\HDU | 813,561 | ||
| Cash and cash equivalents at end of year | 31 | 1,129,665 | |
| &DVKDQGFDVKHTXLYDOHQWVFRQVLVWVRI | |||
| &DVKDQGVKRUWWHUPEDQNGHSRVLWV | 28 1,260,942 | ||
| 2YHUGUDIWV | 31 | (133,629) | |
| &DVKDQGVKRUWWHUPGHSRVLWVDWWULEXWDEOHWRDVVHWVKHOGIRUVDOH | 16 | 2,352 | – |
1,129,665
| Note | 2015 £'000 |
2014 eȇ |
|
|---|---|---|---|
| 3URȴWIRUWKHȴQDQFLDO\HDU | 17 | 127,185 | |
| 2WKHUFRPSUHKHQVLYHLQFRPH | |||
| ΖWHPVWKDWPD\EHUHFODVVLȴHGVXEVHTXHQWO\WRSURȴWRUORVV | |||
| &XUUHQF\WUDQVODWLRQHHFWV | (24,962) | ||
| 2WKHUFRPSUHKHQVLYHLQFRPHIRUWKHȴQDQFLDO\HDUQHWRIWD[ | (24,962) | ||
| 7RWDOFRPSUHKHQVLYHLQFRPHIRUWKHȴQDQFLDO\HDU | 102,223 | ||
| \$WWULEXWDEOHWR | |||
| 2ZQHUVRIWKH3DUHQW | 102,223 |
| 2015 | 2014 | ||
|---|---|---|---|
| Note | £'000 | eȇ | |
| ASSETS | |||
| Non-current assets | |||
| ΖQYHVWPHQWVLQVXEVLGLDU\XQGHUWDNLQJV | 23 | 122,792 | |
| 122,792 | |||
| Current assets | |||
| 7UDGHDQGRWKHUUHFHLYDEOHV | 25 | 258,033 | |
| &DVKDQGFDVKHTXLYDOHQWV | 28 | 617 | |
| 258,650 | |||
| Total assets | 381,442 | ||
| EQUITY | |||
| Capital and reserves attributable to owners of the Parent | |||
| 6KDUHFDSLWDO | 37 | 14,688 | |
| 6KDUHSUHPLXP | 38 | 83,032 | |
| 2WKHUUHVHUYHV | 39 | 34,839 | |
| Retained earnings | 40 | 69,865 | |
| Total equity | 202,424 | ||
| LIABILITIES | |||
| Non-current liabilities | |||
| \$PRXQWVGXHWRVXEVLGLDU\XQGHUWDNLQJV | 14,128 | ||
| 14,128 | |||
| Current liabilities | |||
| 7UDGHDQGRWKHUSD\DEOHV | 26 | 164,890 | |
| 164,890 | |||
| Total liabilities | 179,018 | ||
| Total equity and liabilities | 381,442 |
| Other | ||||||||
|---|---|---|---|---|---|---|---|---|
| Share | Share | Retained | reserves | Total | ||||
| capital | premium | earnings | (note 39) | equity | ||||
| £'000 | £'000 | £'000 | £'000 | £'000 | ||||
| At 1 April 2014 | 14,688 | 83,032 | 7,031 | 59,801 | 164,552 | |||
| 3URȴWIRUWKHȴQDQFLDO\HDU | – | – | 127,185 | – | 127,185 | |||
| 2WKHUFRPSUHKHQVLYHLQFRPH | ||||||||
| &XUUHQF\WUDQVODWLRQ | – | – | – | (24,962) | (24,962) | |||
| Total comprehensive income | – | – | 127,185 | (24,962) | 102,223 | |||
| 5HLVVXHRIWUHDVXU\VKDUHV | – | – | 1,699 | – | 1,699 | |||
| 'LYLGHQGV | – | – | (66,050) | – | (66,050) | |||
| At 31 March 2015 | 14,688 | 83,032 | 69,865 | 34,839 | 202,424 | |||
| )RUWKH\HDUHQGHG0DUFK | ||||||||
| Other | ||||||||
| 6KDUH | 6KDUH | Retained | 5HVHUYHV | Total | ||||
| capital eȇ |
SUHPLXP eȇ |
earnings eȇ |
QRWH eȇ |
HTXLW\ eȇ |
|
|---|---|---|---|---|---|
| \$W\$SULO | |||||
| 3URȴWIRUWKHȴQDQFLDO\HDU | – | – | – | ||
| 2WKHUFRPSUHKHQVLYHLQFRPH | |||||
| &XUUHQF\WUDQVODWLRQ | – | – | – | ||
| 7RWDOFRPSUHKHQVLYHLQFRPH | – | – | |||
| 5HLVVXHRIWUHDVXU\VKDUHV | – | – | – | ||
| 'LYLGHQGV | – | – | – | ||
| \$W0DUFK |
| Note | 2015 £'000 |
2014 eȇ |
|
|---|---|---|---|
| Operating activities | |||
| &DVKJHQHUDWHGIURPRSHUDWLRQV | 42 | (94,544) | |
| Interest paid | (3,210) | ||
| 1HWFDVKȵRZVIURPRSHUDWLQJDFWLYLWLHV | (97,754) | ||
| Investing activities | |||
| ΖQȵRZV | |||
| ΖQWHUHVWUHFHLYHG | 10,371 | ||
| 3URFHHGVRQGLVSRVDO | 37,775 | – | |
| 'LYLGHQGVUHFHLYHGIURPVXEVLGLDULHV | 115,716 | 14 | |
| 163,862 | |||
| 2XWȵRZV | |||
| \$FTXLVLWLRQRIVXEVLGLDULHV | (3,945) | ||
| (3,945) | |||
| 1HWFDVKȵRZVIURPLQYHVWLQJDFWLYLWLHV | 159,917 | ||
| Financing activities | |||
| ΖQȵRZV | |||
| 5HLVVXHRIWUHDVXU\VKDUHV | 1,699 | ||
| 1,699 | |||
| 2XWȵRZV | |||
| 'LYLGHQGVSDLGWRRZQHUVRIWKH3DUHQW | 18 | (66,050) | |
| (66,050) | |||
| 1HWFDVKȵRZVIURPȴQDQFLQJDFWLYLWLHV | (64,351) | ||
| &KDQJHLQFDVKDQGFDVKHTXLYDOHQWV | (2,188) | ||
| 7UDQVODWLRQDGMXVWPHQW | (194) | ||
| &DVKDQGFDVKHTXLYDOHQWVDWEHJLQQLQJRI\HDU | 2,999 | ||
| Cash and cash equivalents at end of year | 617 | ||
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| eȇ | eȇ | eȇ | |
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| Year ended 31 March 2015 | |||||
|---|---|---|---|---|---|
| DCC Energy £'000 |
DCC Technology £'000 |
DCC Healthcare £'000 |
DCC Environmental £'000 |
Total £'000 |
|
| Segment revenue | 7,624,082 | 2,350,284 | 488,114 | 143,600 | 10,606,080 |
| Operating profit* | 119,392 | 49,341 | 39,689 | 13,294 | 221,716 |
| Amortisation of intangible assets | (14, 334) | (2,794) | (6, 143) | (786) | (24, 057) |
| Net operating exceptionals (note 11) | (7, 137) | (11, 101) | (1, 161) | (405) | (19, 804) |
| Operating profit | 97,921 | 35,446 | 32,385 | 12,103 | 177,855 |
| Finance costs | (62, 407) | ||||
| Finance income | 31,288 | ||||
| Share of equity accounted investments' profit after tax | 402 | ||||
| Profit before income tax | 147,138 | ||||
| Income tax expense | (18, 477) | ||||
| Profit for the year | 128,661 |
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|---|---|---|---|---|---|---|
| DCC Energy £'000 |
DCC Technology £'000 |
DCC Healthcare £'000 |
DCC Environmental £'000 |
Discontinued operations £'000 |
Total £'000 |
|
| Segment assets | 1,295,081 | 575,816 | 348,753 | 172,147 | – | 2,391,797 |
| Reconciliation to total assets as reported in the Group Balance Sheet | ||||||
| (TXLW\DFFRXQWHGLQYHVWPHQWV | 4,963 | |||||
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWVFXUUHQWDQGQRQFXUUHQW | 238,545 | |||||
| 'HIHUUHGLQFRPHWD[DVVHWV | 9,380 | |||||
| &DVKDQGFDVKHTXLYDOHQWV | 1,260,942 | |||||
| \$VVHWVFODVVLȴHGDVKHOGIRUVDOH | 12,196 | |||||
| Total assets as reported in the Group Balance Sheet | 3,917,823 | |||||
| Segment liabilities | 789,025 | 429,028 | 102,878 | 38,523 | – | 1,359,454 |
| Reconciliation to total liabilities as reported in the Group Balance Sheet | ||||||
| ΖQWHUHVWEHDULQJORDQVDQGERUURZLQJVFXUUHQWDQGQRQFXUUHQW | 1,463,858 | |||||
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWVFXUUHQWDQGQRQFXUUHQW | 7,994 | |||||
| ΖQFRPHWD[OLDELOLWLHVFXUUHQWDQGGHIHUUHG | 46,628 | |||||
| &RQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQFXUUHQWDQGQRQFXUUHQW | 43,384 | |||||
| *RYHUQPHQWJUDQWVFXUUHQWDQGQRQFXUUHQW | 1,296 | |||||
| /LDELOLWLHVDVVRFLDWHGZLWKDVVHWVFODVVLȴHGDVKHOGIRUVDOH | 8,216 | |||||
| Total liabilities as reported in the Group Balance Sheet | 2,930,830 |
| \$VDW0DUFKUHVWDWHG | ||||||
|---|---|---|---|---|---|---|
| DCC (QHUJ\ eȇ |
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|
| 6HJPHQWDVVHWV | ||||||
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| ΖQWHUHVWEHDULQJORDQVDQGERUURZLQJVFXUUHQWDQGQRQFXUUHQW | ||||||
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWVFXUUHQWDQGQRQFXUUHQW | ||||||
| ΖQFRPHWD[OLDELOLWLHVFXUUHQWDQGGHIHUUHG | ||||||
| &RQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQFXUUHQWDQGQRQFXUUHQW | ||||||
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| 7RWDOOLDELOLWLHVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW |
| Year ended 31 March 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|
| DCC Energy £'000 |
DCC Technology £'000 |
DCC Healthcare £'000 |
DCC Environmental £'000 |
Discontinued operations £'000 |
Total £'000 |
|||
| Capital expenditure – additions | 49,648 | 8,653 | 7,241 | 9,062 | 722 | 75,326 | ||
| &DSLWDOH[SHQGLWXUHȂEXVLQHVVFRPELQDWLRQV | 26,594 | 736 | 2,916 | – | 22 | 30,268 | ||
| Depreciation | 39,759 | 4,859 | 6,412 | 7,558 | 1,122 | 59,710 | ||
| 7RWDOFRQVLGHUDWLRQȂEXVLQHVVFRPELQDWLRQV | 43,365 | 15,645 | 54,337 | – | 2,365 | 115,712 | ||
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34,582 | 1,587 | 53,303 | – | 2,156 | 91,628 | ||
| ΖPSDLUPHQWRIJRRGZLOOQRWH | – | – | 5,637 | – | – | 5,637 |
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| Year ended 31 March | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| UK | Republic of Ireland | Rest of the World | Total | ||||||
| 2015 £'000 |
Restated 2014 eȇ |
2015 £'000 |
Restated 2014 eȇ |
2015 £'000 |
Restated 2014 eȇ |
2015 £'000 |
Restated 2014 eȇ |
||
| Income Statement items | |||||||||
| 5HYHQXH | 8,023,403 | 717,077 | 1,865,600 | 10,606,080 | |||||
| 2SHUDWLQJSURȴW | 170,014 | 17,671 | 34,031 | 221,716 | |||||
| \$PRUWLVDWLRQRILQWDQJLEOHDVVHWV Net operating exceptionals |
(15,200) (12,822) |
(1,164) (5,222) |
(7,693) (1,760) |
(24,057) (19,804) |
|||||
| 6HJPHQWUHVXOW | 141,992 | 11,285 | 24,578 | 177,855 | |||||
| Balance Sheet items | |||||||||
| 6HJPHQWDVVHWV | 1,759,724 | 213,479 | 418,594 | 2,391,797 | |||||
| 6HJPHQWOLDELOLWLHV | 974,137 | 114,892 | 270,425 | 1,359,454 | |||||
| Other segment information | |||||||||
| Non-current assets** | 951,649 | 120,238 | 156,944 | 1,228,831 | |||||
| Capital expenditure – additions | 52,078 | 12,325 | 10,923 | 75,326 | |||||
| Capital expenditure ȂEXVLQHVVFRPELQDWLRQV |
2,921 | 22 | 27,325 | 30,268 | |||||
| Depreciation | 43,003 | 9,115 | 7,592 | 59,710 | |||||
| Total consideration ȂEXVLQHVVFRPELQDWLRQV |
55,791 | 2,372 | 57,549 | 115,712 | |||||
| ΖQWDQJLEOHDVVHWVDFTXLUHG | 54,434 | 2,163 | 35,031 | 91,628 | |||||
| ΖPSDLUPHQWRIJRRGZLOO | – | 5,637 | – | – | 5,637 |
2SHUDWLQJSURȴWEHIRUHDPRUWLVDWLRQRILQWDQJLEOHDVVHWVDQGQHWRSHUDWLQJH[FHSWLRQDOV
1RQFXUUHQWDVVHWVFRPSULVHLQWDQJLEOHDVVHWVSURSHUW\SODQWDQGHTXLSPHQWDQGHTXLW\DFFRXQWHGLQYHVWPHQWV
5HYHQXHDQGRSHUDWLQJSURȴWDUHGHULYHGDOPRVWHQWLUHO\IURPWKHVDOHRIJRRGVDQGDUHGLVFORVHGEDVHGRQWKHORFDWLRQRIWKHHQWLW\ SURGXFLQJWKHJRRGV7KHUHDUHQRPDWHULDOGHSHQGHQFLHVRUFRQFHQWUDWLRQVRQLQGLYLGXDOFXVWRPHUVZKLFKZRXOGZDUUDQWGLVFORVXUH XQGHUΖ)567KH%DODQFH6KHHWDQGRWKHUVHJPHQWLQIRUPDWLRQSUHVHQWHGDERYHDUHGLVFORVHGEDVHGRQWKHORFDWLRQRIWKHDVVHWV
2WKHURSHUDWLQJLQFRPHDQGH[SHQVHFRPSULVHWKHIROORZLQJFUHGLWVFKDUJHV
| 2015 | Restated 2014 |
|
|---|---|---|
| £'000 | eȇ | |
| 2WKHURSHUDWLQJLQFRPH | ||
| )DLUYDOXHJDLQVRQQRQKHGJHDFFRXQWHGGHULYDWLYHȴQDQFLDOLQVWUXPHQWVȂFRPPRGLWLHV | 663 | 44 |
| )DLUYDOXHJDLQVRQQRQKHGJHDFFRXQWHGGHULYDWLYHȴQDQFLDOLQVWUXPHQWVȂIRUZDUGH[FKDQJHFRQWUDFWV | 2,463 | |
| Throughput | 5,432 | |
| +DXODJH | 1,941 | |
| 5HQWDOLQFRPH | 5,479 | |
| 2WKHURSHUDWLQJLQFRPH | 3,679 | |
| 19,657 | ||
| 2WKHURSHUDWLQJLQFRPHLQFOXGHGLQQHWH[FHSWLRQDOLWHPVQRWH | 3,798 | |
| 7RWDORWKHURSHUDWLQJLQFRPH | 23,455 | |
| Other operating expenses | ||
| ([SHQVLQJRIHPSOR\HHVKDUHRSWLRQVQRWH | (2,126) |
| )DLUYDOXHORVVHVRQQRQKHGJHDFFRXQWHGGHULYDWLYHȴQDQFLDOLQVWUXPHQWVȂFRPPRGLWLHV | (425) | |
|---|---|---|
| )DLUYDOXHORVVHVRQQRQKHGJHDFFRXQWHGGHULYDWLYHȴQDQFLDOLQVWUXPHQWVȂIRUZDUGH[FKDQJHFRQWUDFWV | (2,727) | |
| Other operating expenses | (2,932) | |
| (8,210) | ||
| 2WKHURSHUDWLQJH[SHQVHVLQFOXGHGLQQHWH[FHSWLRQDOLWHPVQRWH | (23,602) | |
| Total other operating expenses | (31,812) | |
*URXSSURȴWIRUWKH\HDUKDVEHHQDUULYHGDWDIWHUFKDUJLQJFUHGLWLQJ WKHIROORZLQJDPRXQWVZKLFKLQFOXGHDPRXQWVUHODWLQJWR GLVFRQWLQXHGRSHUDWLRQV
| Continuing operations 2015 £'000 |
Discontinued operations 2015 £'000 |
Total 2015 £'000 |
Continuing operations 2014 eȇ |
Discontinued operations 2014 eȇ |
Total 2014 eȇ |
|
|---|---|---|---|---|---|---|
| 'HSUHFLDWLRQQRWH | 58,588 | 1,122 | 59,710 | |||
| \$PRUWLVDWLRQRILQWDQJLEOHDVVHWVQRWH | 24,057 | 1,288 | 25,345 | |||
| ΖPSDLUPHQWRIJRRGZLOO | 5,637 | – | 5,637 | |||
| ΖPSDLUPHQWRISURSHUW\SODQWDQGHTXLSPHQW | 1,508 | – | 1,508 | – | ||
| 3URȴWRQVDOHRISURSHUW\SODQWDQGHTXLSPHQW | (3,252) | (4) | (3,256) | |||
| \$PRUWLVDWLRQRIJRYHUQPHQWJUDQWVQRWH | (358) | – | (358) | – | ||
| )RUHLJQH[FKDQJHORVVJDLQ | 987 | (128) | 859 | 11 | ||
| Operating lease rentals | ||||||
| – land and buildings | 16,145 | 193 | 16,338 | |||
| ȂSODQWDQGPDFKLQHU\ | 471 | 162 | 633 | |||
| ȂPRWRUYHKLFOHV | 11,281 | 252 | 11,533 | |||
| 27,897 | 607 | 28,504 |
'XULQJWKH\HDUWKH*URXSREWDLQHGWKHIROORZLQJVHUYLFHVIURPWKH*URXSȇVDXGLWRUV3ULFHZDWHUKRXVH&RRSHUV LQFOXGLQJDPRXQWVUHODWLQJ WRGLVFRQWLQXHGRSHUDWLRQV
| 6WDWXWRU\DXGLWRU | ||
|---|---|---|
| Audit fees | 621 | |
| 7D[FRPSOLDQFHDQGDGYLVRU\VHUYLFHV | 249 | |
| 2WKHUQRQDXGLWVHUYLFHV | 31 | 4 |
| 901 | ||
| 2WKHU3ULFHZDWHUKRXVH&RRSHUVQHWZRUNȴUPV | ||
| Audit fees | 986 | |
| 7D[FRPSOLDQFHDQGDGYLVRU\VHUYLFHV | 356 | |
| 2WKHUQRQDXGLWVHUYLFHV | 112 | |
| 1,454 |
7KHDXGLWIHHIRUWKH3DUHQW&RPSDQ\LVee 7KLVDPRXQWLVSDLGWR3ULFHZDWHUKRXVH&RRSHUVΖUHODQGWKHVWDWXWRU\DXGLWRU
'LUHFWRUVȇHPROXPHQWVZKLFKDUHLQFOXGHGLQRSHUDWLQJFRVWV DQGLQWHUHVWVDUHSUHVHQWHGLQWKH5HPXQHUDWLRQ5HSRUWRQSDJHVWR
7KHDYHUDJHZHHNO\QXPEHURISHUVRQVLQFOXGLQJH[HFXWLYH'LUHFWRUV HPSOR\HGE\WKH*URXSLQFRQWLQXLQJDQGGLVFRQWLQXHGRSHUDWLRQV GXULQJWKH\HDUDQDO\VHGE\FODVVRIEXVLQHVVZDV
| 2015 | Restated 2014 |
|
|---|---|---|
| Number | 1XPEHU | |
| '&&(QHUJ\ | 4,698 | |
| '&&7HFKQRORJ\ | 1,767 | |
| '&&+HDOWKFDUH | 1,963 | |
| '&&(QYLURQPHQWDO | 1,019 | |
| Continuing operations | 9,447 | |
| 'LVFRQWLQXHGRSHUDWLRQV'&&)RRG %HYHUDJH | 309 | |
| 9,756 |
7KHHPSOR\HHEHQHȴWH[SHQVHH[FOXGLQJWHUPLQDWLRQSD\PHQWVȂQRWH IRUWKHDERYHZHUH
| 2015 | Restated 2014 |
|
|---|---|---|
| £'000 | eȇ | |
| Wages and salaries | 326,427 | |
| 6RFLDOZHOIDUHFRVWV | 37,696 | |
| 6KDUHEDVHGSD\PHQWH[SHQVHQRWH | 2,126 | |
| 3HQVLRQFRVWVȂGHȴQHGFRQWULEXWLRQSODQV | 11,173 | |
| 3HQVLRQFRVWVȂGHȴQHGEHQHȴWSODQVQRWH | 394 | |
| 377,816 | ||
| 7KHHPSOR\HHEHQHȴWH[SHQVHLVDQDO\VHGDV |
| Continuing operations | 362,799 | |
|---|---|---|
| Discontinued operations | 15,017 | |
| 377,816 |
2014 eȇ
2015 £'000
7KH*URXSȇVHPSOR\HHVKDUHRSWLRQVDQGDZDUGVDUHHTXLW\VHWWOHGVKDUHEDVHGSD\PHQWVDVGHȴQHGLQΖ)56Share-based Payment. The Ζ)56UHTXLUHVWKDWDUHFRJQLVHGYDOXDWLRQPHWKRGRORJ\EHHPSOR\HGWRGHWHUPLQHWKHIDLUYDOXHRIVKDUHRSWLRQVJUDQWHG7KHH[SHQVHUHSRUWHG LQWKHΖQFRPH6WDWHPHQWRIePLOOLRQePLOOLRQ KDVEHHQDUULYHGDWE\DSSO\LQJD0RQWH&DUORVLPXODWLRQWHFKQLTXHIRUVKDUH DZDUGVLVVXHGXQGHUWKH'&&SOF/RQJ7HUPΖQFHQWLYH3ODQDQGDELQRPLDOPRGHOZKLFKLVDODWWLFHRSWLRQSULFLQJPRGHOIRURSWLRQV LVVXHGXQGHUWKH'&&SOF(PSOR\HH6KDUH2SWLRQ6FKHPH
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| Minimum duration |
Number of share |
Expense in Income Statement |
||||
|---|---|---|---|---|---|---|
| Date of grant | Grant price |
οf vesting period |
awards/ options granted |
Weighted average fair value |
2015 £'000 |
2014 £'000 |
| DCC plc Long Term Incentive Plan 2009 | ||||||
| 20 August 2009 | €15.63 | 3 years | 255,406 | €8.97 | (10) | |
| 15 November 2010 | €21.25 | 3 years | 212,525 | €12.00 | (9) | (62) |
| 15 November 2011 | €17.50 | 3 years | 252,697 | €9.17 | 299 | 270 |
| 12 November 2012 | €22.66 | 3 years | 215,489 | €12.09 | 619 | 731 |
| 12 November 2013 | £28.54 | 3 years | 153,430 | £14.42 | 651 | 246 |
| 12 November 2014 | £34.56 | 5 years | 192,407 | £26.96 | 576 | |
| Total expense | 2,126 | 1,185 |
DCC plc Long Term Incentive Plan 2009
\$W0DUFKXQGHUWKH'&&SOF/RQJ7HUPΖQFHQWLYH3ODQ*URXSHPSOR\HHVKROGDZDUGVWRVXEVFULEHIRURUGLQDU\VKDUHV
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| Number of share awards |
2015 | 2014 Number of share awards |
|---|---|---|
| At 1 April 742,574 |
733,414 | |
| Granted 192,407 |
153,430 | |
| Exercised (28, 026) |
(15,941) | |
| Expired (114, 806) |
(128, 329) | |
| At 31 March 792,149 |
742,574 |
7KHZHLJKWHGDYHUDJHVKDUHSULFHDWWKHGDWHVRIH[HUFLVHIRUVKDUHDZDUGVH[HUFLVHGGXULQJWKH\HDUXQGHUWKH'&&SOF/RQJ7HUPΖQFHQWLYH 3ODQZDVee 7KHVKDUHDZDUGVRXWVWDQGLQJDWWKH\HDUHQGKDYHDZHLJKWHGDYHUDJHUHPDLQLQJFRQWUDFWXDOOLIHRI \HDUV\HDUV
7KHZHLJKWHGDYHUDJHIDLUYDOXHVDVVLJQHGWRVKDUHDZDUGVJUDQWHGXQGHUWKH'&&SOF/RQJ7HUPΖQFHQWLYH3ODQZKLFKZHUHFRPSXWHG LQDFFRUGDQFHZLWKWKH0RQWH&DUORYDOXDWLRQPHWKRGRORJ\ZHUHDVIROORZV
| *UDQWHGGXULQJWKH\HDUHQGHG0DUFK | £26.96 |
|---|---|
| *UDQWHGGXULQJWKH\HDUHQGHG0DUFK | e |
7KHIDLUYDOXHVRIVKDUHDZDUGVJUDQWHGXQGHUWKH'&&SOF/RQJ7HUPΖQFHQWLYH3ODQZHUHGHWHUPLQHGWDNLQJDFFRXQWRISHHUJURXS WRWDOVKDUHUHWXUQYRODWLOLWLHVDQGFRUUHODWLRQVWRJHWKHUZLWKWKHIROORZLQJDVVXPSWLRQV
| 2015 | 2014 |
|---|---|
| 1.90 | |
| 2.5 | |
| 21.0 | |
| 6.0 | |
| £34.56 | e |
7KHH[SHFWHGYRODWLOLW\LVEDVHGRQKLVWRULFYRODWLOLW\RYHUWKHSDVW\HDUV7KHH[SHFWHGOLIHLVWKHDYHUDJHH[SHFWHGSHULRGWRH[HUFLVH 7KHULVNIUHHUDWHRIUHWXUQLVWKH\LHOGRQJRYHUQPHQWERQGVRIDWHUPFRQVLVWHQWZLWKWKHDVVXPHGRSWLRQOLIH
| Date of grant | Date of expiry | 2015 Number of share awards |
2014 1XPEHURI share DZDUGV |
|---|---|---|---|
| 20 August 2009 | \$XJXVW | 41,988 | |
| 1RYHPEHU | 1RYHPEHU | 56,200 | |
| 1RYHPEHU | 1RYHPEHU | 148,106 | |
| 1RYHPEHU | 1RYHPEHU | 206,398 | |
| 1RYHPEHU | 1RYHPEHU | 147,050 | |
| 1RYHPEHU | 1RYHPEHU | 192,407 | – |
| 7RWDORXWVWDQGLQJDW0DUFK | 792,149 |
\$VDW0DUFKRIWKHRXWVWDQGLQJVKDUHDZDUGVXQGHUWKH'&&SOF/RQJ7HUPΖQFHQWLYH3ODQZHUHH[HUFLVDEOH
\$W0DUFKXQGHUWKH'&&SOF(PSOR\HH6KDUH2SWLRQ6FKHPH*URXSHPSOR\HHVKROGEDVLFWLHURSWLRQVWRVXEVFULEHIRU RUGLQDU\VKDUHV
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\$VXPPDU\RIDFWLYLW\XQGHUWKH'&&SOF(PSOR\HH6KDUH2SWLRQ6FKHPHRYHUWKH\HDULVDVIROORZV
| 2015 | 2014 | ||||
|---|---|---|---|---|---|
| Average exercise price in € per share |
Options | \$YHUDJH exercise price in € per share |
Options | ||
| At 1 April | 17.96 | 804,250 | |||
| Exercised | 16.60 | (127,400) | |||
| Expired | 13.72 | (89,500) | |||
| \$W0DUFK | 18.90 | 587,350 | |||
| 7RWDOH[HUFLVDEOHDW0DUFK | 18.90 | 587,350 |
7KHZHLJKWHGDYHUDJHVKDUHSULFHDWWKHGDWHVRIH[HUFLVHIRUVKDUHRSWLRQVH[HUFLVHGGXULQJWKH\HDUXQGHUWKH'&&SOF(PSOR\HH 6KDUH2SWLRQ6FKHPHZDVee 7KHVKDUHRSWLRQVRXWVWDQGLQJDWWKH\HDUHQGKDYHDZHLJKWHGDYHUDJHUHPDLQLQJ FRQWUDFWXDOOLIHRI\HDUV\HDUV
Analysis of closing balance – outstanding at end of year
| 2015 | 2014 | ||||
|---|---|---|---|---|---|
| Date of grant | Date of expiry | Exercise price per share |
Options | Exercise price per share |
Options |
| 0D\ | 0D\ | €12.75 | – | Ȝ | |
| 1RYHPEHU | 1RYHPEHU | €15.65 | – | Ȝ | |
| 'HFHPEHU | 'HFHPEHU | €16.70 | 63,350 | Ȝ | |
| -XQH | -XQH | €18.05 | 91,000 | Ȝ | |
| -XO\ | -XO\ | €23.35 | 204,000 | Ȝ | |
| 'HFHPEHU | 'HFHPEHU | €19.50 | 12,500 | Ȝ | |
| 0D\ | 0D\ | €15.68 | 216,500 | Ȝ | |
| 7RWDORXWVWDQGLQJDW0DUFK | 587,350 |
Analysis of closing balance – exercisable at end of year
| 2015 | 2014 | ||||
|---|---|---|---|---|---|
| Date of grant | Date of expiry | Exercise price per share |
Options | Exercise price per share |
Options |
| 0D\ | 0D\ | €12.75 | – | Ȝ | |
| 1RYHPEHU | 1RYHPEHU | €15.65 | – | Ȝ | |
| 'HFHPEHU | 'HFHPEHU | €16.70 | 63,350 | Ȝ | |
| -XQH | -XQH | €18.05 | 91,000 | Ȝ | |
| -XO\ | -XO\ | €23.35 | 204,000 | Ȝ | |
| 'HFHPEHU | 'HFHPEHU | €19.50 | 12,500 | Ȝ | |
| 0D\ | 0D\ | €15.68 | 216,500 | Ȝ | |
| 7RWDOH[HUFLVDEOHDW0DUFK | 587,350 |
| Restated | |||
|---|---|---|---|
| 2015 £'000 |
2014 eȇ |
||
| Restructuring costs | (15,027) | ||
| ΖPSDLUPHQWRIJRRGZLOO | (5,637) | ||
| \$FTXLVLWLRQDQGUHODWHGFRVWV | (3,396) | ||
| ΖPSDLUPHQWRISURSHUW\SODQWDQGHTXLSPHQW | (1,508) | ||
| \$GMXVWPHQWVWRFRQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQ | 415 | ||
| *DLQDULVLQJIURP7DLZDQHVHOHJDOFODLP | 894 | ||
| 1HWSURȴWRQGLVSRVDORI9LUWXVΖQF | – | ||
| 5HVWUXFWXULQJRI*URXSGHȴQHGEHQHȴWSHQVLRQVFKHPHV | 6,381 | ||
| /HJDODQGRWKHURSHUDWLQJH[FHSWLRQDOLWHPV | (1,926) | ||
| 1HWRSHUDWLQJH[FHSWLRQDOLWHPV | (19,804) | ||
| 0DUNWRPDUNHWRIVZDSVDQGUHODWHGGHEWQRWH | (2,191) | ||
| 1HWH[FHSWLRQDOLWHPVEHIRUHWD[DWLRQ | (21,995) | ||
| 7D[RQ7DLZDQHVHOHJDOFODLP | – | ||
| 1HWH[FHSWLRQDOLWHPVDIWHUWD[DWLRQFRQWLQXLQJDFWLYLWLHV | (21,995) | ||
| 1HWSURȴWRQGLVSRVDORI)RRG %HYHUDJHGLYLVLRQQRWH | 8,214 | – | |
| 2WKHUQHWH[FHSWLRQDOLWHPVUHODWLQJWRGLVFRQWLQXHGRSHUDWLRQV | 2,865 | ||
| (10,916) | |||
| 1RQFRQWUROOLQJLQWHUHVWVKDUHRISURȴWRQGLVSRVDORIVXEVLGLDU\ | – | ||
| 1HWH[FHSWLRQDOLWHPVDWWULEXWDEOHWRRZQHUVRIWKH3DUHQW | (10,916) |
7KHDQDO\VLVRIWKHQHWRSHUDWLQJH[FHSWLRQDOLWHPVRIePLOOLRQePLOOLRQ LVDVIROORZV
([FHSWLRQDORSHUDWLQJLQFRPH 3,798 Exceptional operating expense (23,602)
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(19,804)
| 2015 £'000 |
Restated 2014 eȇ |
|
|---|---|---|
| Finance costs | ||
| 2QEDQNORDQVRYHUGUDIWVDQG8QVHFXUHG1RWHV | ||
| ȂUHSD\DEOHZLWKLQ\HDUVQRWE\LQVWDOPHQWV | (23,567) | |
| ȂUHSD\DEOHZLWKLQ\HDUVE\LQVWDOPHQWV | (10) | |
| ȂUHSD\DEOHZKROO\RUSDUWO\LQPRUHWKDQ\HDUV | (31,061) | |
| 2QȴQDQFHOHDVHV | (118) | |
| )DFLOLW\IHHV | (1,632) | |
| Other interest | (3,512) | |
| (59,900) | ||
| 2WKHUȴQDQFHFRVWV | ||
| 1HWLQWHUHVWRQGHȴQHGEHQHȴWSHQVLRQVFKHPHOLDELOLWLHVQRWH | (316) | |
| 0DUNWRPDUNHWRIVZDSVDQGUHODWHGGHEW QRWH | (2,191) | |
| (62,407) | ||
| Finance income | ||
| ΖQWHUHVWRQFDVKDQGWHUPGHSRVLWV | 3,441 | |
| 1HWLQFRPHRQLQWHUHVWUDWHDQGFXUUHQF\VZDSV | 27,844 | |
| 2WKHULQFRPH | 3 | |
| 31,288 | ||
| 1HWȴQDQFHFRVW | (31,119) | |
| 0DUNWRPDUNHWRIVZDSVDQGUHODWHGGHEW | ||
| ΖQWHUHVWUDWHVZDSVGHVLJQDWHGDVIDLUYDOXHKHGJHV | 9,377 | |
| &URVVFXUUHQF\LQWHUHVWUDWHVZDSVGHVLJQDWHGDVIDLUYDOXHKHGJHV | 177,282 | |
| \$GMXVWHGKHGJHGȴ[HGUDWHGHEW | (189,431) | |
| 0DUNWRPDUNHWRIVZDSVGHVLJQDWHGDVIDLUYDOXHKHGJHVDQGUHODWHGGHEW | (2,772) | |
| &XUUHQF\PRYHPHQWVRQȴ[HGUDWHGHEWQRWGHVLJQDWHGDVKHGJHG | (6,927) | |
| &XUUHQF\VZDSVQRWGHVLJQDWHGDVKHGJHV | 6,820 | |
| 0DUNWRPDUNHWRIXQGHVLJQDWHGVZDSVDQGUHODWHGGHEW | (107) | |
| 0RYHPHQWRQFURVVFXUUHQF\LQWHUHVWUDWHVZDSVGHVLJQDWHGDVFDVKȵRZKHGJHV | 37,819 | |
| 7UDQVIHUUHGWRFDVKȵRZKHGJHUHVHUYH | (37,131) | |
| 688 | ||
| 7RWDOPDUNWRPDUNHWRIVZDSVDQGUHODWHGGHEW | (2,191) |
7KHH[FKDQJHUDWHVXVHGLQWUDQVODWLQJQRQVWHUOLQJΖQFRPH6WDWHPHQWDQG%DODQFH6KHHWDPRXQWVLQWRVWHUOLQJZHUHDVIROORZV
| Average rate | Closing rate | |||
|---|---|---|---|---|
| 2015 Stg£1= |
2014 6WJe |
2015 Stg£1= |
2014 6WJe |
|
| Euro | 1.2674 | 1.3749 | ||
| 'DQLVK.URQH | 9.4577 | 10.2705 | ||
| 6ZHGLVK.URQD | 11.6866 | 12.7734 | ||
| 1RUZHJLDQ.URQH | 10.7266 | 11.9669 |
7KH*URXSȇVVKDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVȇLHMRLQWYHQWXUHVDQGDVVRFLDWHV SURȴWDIWHUWD[LVHTXLW\DFFRXQWHGDQGSUHVHQWHGDV DVLQJOHOLQHLWHPLQWKH*URXSΖQFRPH6WDWHPHQW7KHSURȴWDIWHUWD[JHQHUDWHGE\WKH*URXSȇVHTXLW\DFFRXQWHGLQYHVWPHQWVLVDQDO\VHGDV IROORZVXQGHUWKHSULQFLSDO*URXSΖQFRPH6WDWHPHQWFDSWLRQV
| Restated | ||||||
|---|---|---|---|---|---|---|
| Joint | -RLQW | Restated | ||||
| ventures | Associates | Total | YHQWXUHV | Associates | Total | |
| 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | |
| £'000 | £'000 | £'000 | eȇ | eȇ | eȇ | |
| *URXSVKDUHRI | ||||||
| 5HYHQXH | 21,373 | 3,140 | 24,513 | |||
| 2SHUDWLQJSURȴW | 661 | 24 | 685 | 40 | ||
| )LQDQFHFRVWVQHW | – | – | – | – | – | – |
| 3URȴWEHIRUHWD[ | 661 | 24 | 685 | 40 | ||
| ΖQFRPHWD[H[SHQVH | (196) | – | (196) | |||
| 3URȴWDIWHUWD[ | 465 | 24 | 489 | |||
| 7KHSURȴWDIWHUWD[LVDQDO\VHGDV | ||||||
| Continuing operations | 378 | 24 | 402 | |||
| Discontinued operations | 87 | – | 87 | – | ||
| 3URȴWDIWHUWD[ | 465 | 24 | 489 |
| Restated | ||
|---|---|---|
| 2015 | 2014 | |
| £'000 | eȇ | |
| &XUUHQWWD[DWLRQ | ||
| ΖULVKFRUSRUDWLRQWD[DW | 1,741 | |
| ([FHSWLRQDOWD[DWLRQFKDUJHQRWH | – | |
| 8QLWHG.LQJGRPFRUSRUDWLRQWD[DW | 17,897 | |
| 2WKHURYHUVHDVWD[ | 4,548 | |
| 2YHUSURYLVLRQLQUHVSHFWRISULRU\HDUV | (5,359) | – |
| Total current taxation | 18,827 | |
| 'HIHUUHGWD[ | ||
| ΖULVKDW | (4,589) | |
| 8QLWHG.LQJGRPDW | 814 | |
| 2WKHURYHUVHDVGHIHUUHGWD[ | 1,638 | |
| 8QGHURYHU SURYLVLRQLQUHVSHFWRISULRU\HDUV | 2,191 | |
| Total deferred tax | 54 |
| 7KHWRWDOLQFRPHWD[H[SHQVHIRUWKHȴQDQFLDO\HDULVDQDO\VHGDVIROORZV | |
|---|---|
| Continuing operations | 18,477 | |
|---|---|---|
| Discontinued operations | 404 | |
| 7RWDOLQFRPHWD[H[SHQVH | 18,881 |
(ii) Deferred tax recognised in Other Comprehensive Income
| Restated | ||
|---|---|---|
| 2015 £'000 |
2014 eȇ |
|
| 'HȴQHGEHQHȴWSHQVLRQREOLJDWLRQVFRQWLQXLQJRSHUDWLRQV | (1,777) | |
| 'HȴQHGEHQHȴWSHQVLRQREOLJDWLRQVGLVFRQWLQXHGRSHUDWLRQV | (410) | |
| (2,187) | ||
| &DVKȵRZKHGJHV | (324) | |
| (2,511) | ||
| LLL 5HFRQFLOLDWLRQRIHHFWLYHWD[UDWH | ||
| 3URȴWRQRUGLQDU\DFWLYLWLHVEHIRUHWD[DWLRQ | 163,305 | |
| \$GGEDFNVKDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVȇSURȴWDIWHUWD[ | (402) | |
| \$GGEDFNDPRUWLVDWLRQRILQWDQJLEOHDVVHWV | 25,345 | |
| 188,248 | ||
| \$WWKHVWDQGDUGUDWHRIFRUSRUDWLRQWD[LQΖUHODQGRI | 23,531 | |
| \$GMXVWPHQWVLQUHVSHFWRISULRU\HDUV | (2,997) | |
| (HFWRIHDUQLQJVWD[HGDWKLJKHUUDWHV | 8,349 | |
| 2WKHUGLHUHQFHV | (4,994) | |
| ΖQFRPHWD[H[SHQVH | 23,889 | |
| Tax on exceptional gain | – | |
| 'HIHUUHGWD[DWWDFKLQJWRDPRUWLVDWLRQRILQWDQJLEOHDVVHWV | (5,008) | |
| 7RWDOLQFRPHWD[H[SHQVH | 18,881 | |
| 2015 % |
2014 |
|
| ΖQFRPHWD[H[SHQVHDVDSHUFHQWDJHRISURȴWEHIRUHVKDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVȇSURȴWDIWHUWD[ DPRUWLVDWLRQRILQWDQJLEOHDVVHWVDQGQHWH[FHSWLRQDOV |
12.0% | |
| ΖPSDFWRIVKDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVȇSURȴWDIWHUWD[DPRUWLVDWLRQRILQWDQJLEOHDVVHWVDQGQHW exceptionals |
(0.4%) | |
| 7RWDOLQFRPHWD[H[SHQVHDVDSHUFHQWDJHRISURȴWEHIRUHWD[ | 11.6% |
LY )DFWRUVWKDWPD\DHFWIXWXUHWD[UDWHVDQGRWKHUGLVFORVXUHV
1RVLJQLȴFDQWFKDQJHLVH[SHFWHGWRWKHVWDQGDUGUDWHRIFRUSRUDWLRQWD[LQWKH5HSXEOLFRIΖUHODQGZKLFKLVFXUUHQWO\7KHVWDQGDUG UDWHRIFRUSRUDWLRQWD[LQWKH8.UHGXFHGIURPWRZLWKHHFWIURP\$SULO7KH8.WD[UDWHUHGXFHVWRZLWKHHFWIURP \$SULODQGDFFRXQWKDVEHHQWDNHQRIWKLVFKDQJHLQWKHVHȴQDQFLDOVWDWHPHQWV
7KH*URXSKDVQRWSURYLGHGGHIHUUHGWD[LQUHODWLRQWRWHPSRUDU\GLHUHQFHVDSSOLFDEOHWRLQYHVWPHQWVLQVXEVLGLDULHVRQWKHEDVLVWKDWWKH *URXSFDQFRQWUROWKHWLPLQJDQGUHDOLVDWLRQRIWKHVHWHPSRUDU\GLHUHQFHVDQGLWLVSUREDEOHWKDWWKHWHPSRUDU\GLHUHQFHZLOOQRWUHYHUVH LQWKHIRUHVHHDEOHIXWXUH1RSURYLVLRQKDVEHHQUHFRJQLVHGLQUHVSHFWRIGHIHUUHGWD[UHODWLQJWRXQUHPLWWHGHDUQLQJVRIVXEVLGLDULHVDV WKHUHLVQRFRPPLWPHQWWRUHPLWHDUQLQJV
Net Result from Discontinued Operations
\$VDQQRXQFHGRQ)HEUXDU\WKH*URXSFRPSOHWHGWKHGLVSRVDORIWKH5REHUWV5REHUWVLQFOXGLQJ)LQGODWHU:LQH 6SLULWV DQG.HONLQ EXVLQHVVHVΖQDGGLWLRQWKH*URXSGLVSRVHGRIWKHWUDGHDQGDVVHWVRI\$OOLHG)RRGVDVDQQRXQFHGRQ1RYHPEHUDQGWKHGLVSRVDO RI%RWWOH*UHHQ/LPLWHGZDVFRPSOHWHGRQ\$SULO7KHVHEXVLQHVVHVUHSUHVHQWHGWKH*URXSȇV)RRG %HYHUDJHGLYLVLRQ
7KHIROORZLQJWDEOHVXPPDULVHVWKHFRQVLGHUDWLRQUHFHLYHGWKHSURȴWRQGLVSRVDORIGLVFRQWLQXHGRSHUDWLRQVDQGWKHQHWFDVKȵRZDULVLQJ RQWKHGLVSRVDORIWKHVHEXVLQHVVHV
| 2015 |
|---|
| £'000 |
| 1HWFRQVLGHUDWLRQ | |
|---|---|
| 1HWSURFHHGVUHFHLYHG | 55,090 |
| Costs of disposal | (4,326) |
| Total net consideration | 50,764 |
| 3URSHUW\SODQWDQGHTXLSPHQW | 16,737 |
|---|---|
| Intangible assets | 17,573 |
| (TXLW\DFFRXQWHGLQYHVWPHQWV | 627 |
| Net deferred tax asset | 383 |
| ΖQYHQWRULHV | 16,192 |
| 7UDGHDQGRWKHUUHFHLYDEOHV | 21,439 |
| 3RVWHPSOR\PHQWEHQHȴWREOLJDWLRQV | (8,782) |
| &RQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQ | (79) |
| 7UDGHDQGRWKHUSD\DEOHV | (19,017) |
| Other current liabilities | (552) |
| 1HWLGHQWLȴDEOHDVVHWVDQGOLDELOLWLHVGLVSRVHGRI | 44,521 |
| 5HF\FOLQJRIIRUHLJQH[FKDQJHJDLQSUHYLRXVO\UHFRJQLVHGLQIRUHLJQFXUUHQF\WUDQVODWLRQUHVHUYH | (2,721) |
| 1RQFDVKLPSDLUPHQWORVVDULVLQJRQDVVHWVKHOGIRUVDOH | 750 |
| 42,550 | |
| 3URȴWRQGLVSRVDORIGLVFRQWLQXHGRSHUDWLRQVDIWHUWD[ | 8,214 |
| 1HWFDVKIORZIURPGLVSRVDORIGLVFRQWLQXHGRSHUDWLRQV | |
| 7RWDOSURFHHGVUHFHLYHG | 55,176 |
| &DVKDQGFDVKHTXLYDOHQWVGLVSRVHGRI | (86) |
| Net cash inflow from disposal of discontinued operations | 55,090 |
| Disposal costs paid | (2,431) |
| 52,659 |
7KHFRQGLWLRQVIRUWKHEXVLQHVVHVGLVSRVHGRIGXULQJWKH\HDU5REHUW5REHUWV.HONLQDQGWKHWUDGHDQGDVVHWVRI\$OOLHG)RRGV DQGDIWHU \HDUHQG%RWWOH*UHHQ/LPLWHG WREHFODVVLȴHGDVGLVFRQWLQXHGRSHUDWLRQVZHUHIXOȴOOHGLQWKHVHFRQGKDOIRIWKHFXUUHQWȴQDQFLDO\HDUDQG FRQVHTXHQWO\WKHUHVXOWVRIWKHVHEXVLQHVVHVZKLFKUHSUHVHQWHGWKH*URXSȇV)RRG %HYHUDJHGLYLVLRQDUHSUHVHQWHGVHSDUDWHO\DV GLVFRQWLQXHGRSHUDWLRQVLQWKH*URXSΖQFRPH6WDWHPHQWDQG*URXS&DVK)ORZ6WDWHPHQW
7KHIROORZLQJWDEOHGHWDLOVWKHUHVXOWVRIGLVFRQWLQXHGRSHUDWLRQVLQFOXGHGLQWKH*URXSΖQFRPH6WDWHPHQW
| 2015 £'000 |
2014 eȇ |
|
|---|---|---|
| Revenue | 143,360 | |
| Cost of sales | (111,314) | |
| *URVVSURȴW | 32,046 | |
| Operating expenses | (25,563) | |
| 2SHUDWLQJSURȴWEHIRUHDPRUWLVDWLRQRILQWDQJLEOHDVVHWVDQGH[FHSWLRQDOLWHPV | 6,483 | |
| \$PRUWLVDWLRQRILQWDQJLEOHDVVHWV | (1,288) | |
| 2SHUDWLQJSURȴW | 5,195 | |
| 1HWȴQDQFHFRVWV | (194) | |
| 6KDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVȇSURȴWDIWHUWD[ | 87 | |
| 3URȴWEHIRUHH[FHSWLRQDOLWHPVDQGWD[ | 5,088 | |
| ([FHSWLRQDOLWHPV | 2,865 | |
| 3URȴWRQGLVSRVDORIGLVFRQWLQXHGRSHUDWLRQV | 8,214 | – |
| 3URȴWEHIRUHWD[ | 16,167 | |
| ΖQFRPHWD[H[SHQVH | (404) | |
| 3URȴWIURPGLVFRQWLQXHGRSHUDWLRQVDIWHUWD[ | 15,763 |
7KHSURȴWIRUWKH\HDUIURPGLVFRQWLQXHGRSHUDWLRQVLVIXOO\DWWULEXWDEOHWRWKHHTXLW\KROGHUVRIWKH&RPSDQ\
| 7KHIROORZLQJWDEOHGHWDLOVWKHFDVKȵRZVIURPGLVFRQWLQXHGRSHUDWLRQVLQFOXGHGLQWKH*URXS&DVK)ORZ6WDWHPHQW | 2015 £'000 |
2014 eȇ |
|---|---|---|
| 1HWFDVKȵRZVIURPRSHUDWLQJDFWLYLWLHV | (1,756) | |
| 1HWFDVKȵRZVIURPLQYHVWLQJDFWLYLWLHV | 4,674 | |
| 1HWFDVKȵRZVIURPȴQDQFLQJDFWLYLWLHV | – | – |
| 1HWFDVKȵRZVIURPGLVFRQWLQXHGRSHUDWLRQV | 2,918 | |
)ROORZLQJWKHGLVSRVDORIDQXPEHURIVXEVLGLDULHVIURPWKH)RRG %HYHUDJHGLYLVLRQGXULQJWKH\HDUWKH%RDUGFRPPLWWHGWRVHOOLQJWKH GLYLVLRQȇVUHPDLQLQJVPDOO8.ZLQHGLVWULEXWLRQVXEVLGLDU\%RWWOH*UHHQ/LPLWHGDQGDFFRUGLQJO\WKHDVVHWVDQGOLDELOLWLHVRIWKLVEXVLQHVV DUHFODVVLȴHGDVDQDVVHWKHOGIRUVDOHDWWKHEDODQFHVKHHWGDWHDQGWKHWUDGLQJUHVXOWLVWUHDWHGDVDGLVFRQWLQXHGRSHUDWLRQ7KHVDOHRIWKLV UHPDLQLQJVXEVLGLDU\ZDVFRPSOHWHGRQ\$SULO7KHIDLUYDOXHOHVVFRVWVWRVHOORIWKHPDMRUFODVVHVRIDVVHWVDQGOLDELOLWLHVKHOGIRU
| £'000 | |
|---|---|
| 2015 | |
| VDOHDVDW0DUFKDUHDVIROORZV |
| Assets | |
|---|---|
| 3URSHUW\SODQWDQGHTXLSPHQWQRWH | 647 |
| 'HIHUUHGLQFRPHWD[DVVHWVQRWH | 48 |
| ΖQYHQWRULHVQRWH | 2,537 |
| 7UDGHDQGRWKHUUHFHLYDEOHVQRWH | 6,612 |
| &DVKDQGFDVKHTXLYDOHQWVQRWH | 2,352 |
| \$VVHWVFODVVLȴHGDVKHOGIRUVDOH | 12,196 |
Liabilities
| (7,863) |
|---|
| (103) |
| (250) |
| (8,216) |
| 3,980 |
0DQDJHPHQWHVWLPDWHVKDYHEHHQXVHGWRGHWHUPLQHIDLUYDOXHOHVVFRVWVWRVHOORIWKHDVVHWKHOGIRUVDOH7KHIDLUYDOXHKDVEHHQGHWHUPLQHG DVOHYHORQWKHIDLUYDOXHKLHUDUFK\7KHIDLUYDOXHRIWKHDVVHWKHOGIRUVDOHLVEDVHGRQH[SHFWHGFDVKȵRZVDULVLQJRQWKHVDOH
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| Dividends paid per Ordinary Share are as follows: | 2015 £'000 |
2014 £'000 |
|---|---|---|
| Final – paid 50.73 pence per share on 24 July 2014 (2014: paid 56.20 cent per share on 25 July 2013) |
41.927 | 39.721 |
| Interim - paid 28.73 pence per share on 28 November 2014 (2014: paid 26.12 pence per share on 29 November 2013) |
24.123 | 22.167 |
| 66,050 | 61,888 |
7KH'LUHFWRUVDUHSURSRVLQJDȴQDOGLYLGHQGLQUHVSHFWRIWKH\HDUHQGHG0DUFKRISHQFHSHURUGLQDU\VKDUHePLOOLRQ EDVHGRQWKHQXPEHURIRUGLQDU\VKDUHVLQLVVXHDW0D\ 7KLVSURSRVHGGLYLGHQGLVVXEMHFWWRDSSURYDOE\WKHVKDUHKROGHUVDWWKH \$QQXDO*HQHUDO0HHWLQJ
ΖQWHULPDQGȴQDOGLYLGHQGVGHFODUHGSUHYLRXVO\LQHXURKDYHEHHQWUDQVODWHGWRVWHUOLQJXVLQJWKHUHOHYDQWDYHUDJHVWHUOLQJHXURH[FKDQJH rate for the period.
| Continuing operations 2015 £'000 |
Discontinued operations (note 16) 2015 £'000 |
Total 2015 £'000 |
Continuing operations 2014 £'000 |
Discontinued operations (note 16) 2014 £'000 |
Total 2014 £'000 |
|
|---|---|---|---|---|---|---|
| Profit attributable to owners of the Parent | 128,664 | 15,763 | 144,427 | 120,660 | 574 | 121,234 |
| Amortisation of intangible assets after tax | 19,171 | 1,166 | 20,337 | 15,572 | 665 | 16,237 |
| Exceptionals after tax (note 11) | 21,995 | (11, 079) | 10,916 | 18,000 | 4,721 | 22,721 |
| Adjusted profit after taxation and non-controlling interests |
169,830 | 5,850 | 175,680 | 154,232 | 5,960 | 160,192 |
| Basic earnings per ordinary share | Continuing operations 2015 pence |
Discontinued operations 2015 pence |
Total 2015 pence |
Continuing operations 2014 pence |
Discontinued operations 2014 pence |
Total 2014 pence |
| Basic earnings per ordinary share | 153.20p | 18.77p | 171.97p | 144.02p | 0.68 p | 144.70p |
| Amortisation of intangible assets after tax | 22.83p | 1.39 p | 24.22p | 18.59p | 0.79 p | 19.38p |
| Exceptionals after tax | 26.19p | (13.19p) | 13.00p | 21.48p | 5.64p | 27.12p |
| Adjusted basic earnings per ordinary share | 202.22p | 6.97p | 209.19p | 184.09p | 7.11 p | 191.20p |
| Weighted average number of ordinary shares in issue (thousands) |
83,983 | 83,781 |
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| Diluted earnings per ordinary share | Continuing operations 2015 pence |
Discontinued operations 2015 pence |
Total 2015 pence |
Continuing operations 2014 pence |
Discontinued operations 2014 pence |
Total 2014 pence |
|---|---|---|---|---|---|---|
| %DVLFHDUQLQJVSHURUGLQDU\VKDUH | 152.10p | 18.63p | 170.73p | S | S | S |
| \$PRUWLVDWLRQRILQWDQJLEOHDVVHWVDIWHUWD[ | 22.66p | 1.38p | 24.04p | S | S | S |
| Exceptionals after tax | 26.00p | (13.10p) | 12.90p | S | S | S |
| \$GMXVWHGEDVLFHDUQLQJVSHURUGLQDU\VKDUH | 200.76p | 6.91p | 207.67p | S | S | 190.14p |
| :HLJKWHGDYHUDJHQXPEHURIRUGLQDU\VKDUHV |
LQLVVXHWKRXVDQGV 84,594
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| 2015 '000 |
2014 Ȇ |
|
|---|---|---|
| :HLJKWHGDYHUDJHQXPEHURIRUGLQDU\VKDUHVLQLVVXH | 83,983 | |
| 'LOXWLYHHHFWRIRSWLRQVDQGDZDUGV | 611 | |
| :HLJKWHGDYHUDJHQXPEHURIRUGLQDU\VKDUHVIRUGLOXWHGHDUQLQJVSHUVKDUH | 84,594 |
'LOXWHGHDUQLQJVSHUVKDUHLVFDOFXODWHGE\DGMXVWLQJWKHZHLJKWHGDYHUDJHQXPEHURIRUGLQDU\VKDUHVRXWVWDQGLQJWRDVVXPHFRQYHUVLRQ RIDOOGLOXWLYHSRWHQWLDORUGLQDU\VKDUHV6KDUHRSWLRQVDQGDZDUGVDUHWKH&RPSDQ\ȇVRQO\FDWHJRU\RIGLOXWLYHSRWHQWLDORUGLQDU\VKDUHV
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| Group | Land & buildings £'000 |
Plant & machinery & cylinders £'000 |
Fixtures & ȴWWLQJV RɝFH equipment £'000 |
Motor vehicles £'000 |
Total £'000 |
|||||
|---|---|---|---|---|---|---|---|---|---|---|
| Year ended 31 March 2015 | ||||||||||
| 2SHQLQJQHWERRNDPRXQWUHVWDWHG | 152,394 | 208,986 | 32,654 | 70,830 | 464,864 | |||||
| ([FKDQJHGLHUHQFHV | (4,717) | (7,144) | (1,343) | (1,165) | (14,369) | |||||
| \$ULVLQJRQDFTXLVLWLRQQRWH | 3,983 | 22,980 | 2,204 | 1,101 | 30,268 | |||||
| 'LVSRVDORIVXEVLGLDULHVQRWH | (13,323) | (1,757) | (919) | (738) | (16,737) | |||||
| Additions | 9,483 | 43,762 | 12,609 | 9,472 | 75,326 | |||||
| Disposals | (1,216) | (1,325) | (517) | (9,740) | (12,798) | |||||
| Depreciation charge | (3,762) | (31,499) | (12,226) | (12,223) | (59,710) | |||||
| ΖPSDLUPHQWFKDUJHQRWH | (425) | (588) | (495) | – | (1,508) | |||||
| \$VVHWVFODVVLȴHGDVKHOGIRUVDOHQRWH | (606) | – | (41) | – | (647) | |||||
| 5HFODVVLȴFDWLRQV | (494) | (4,499) | 2,444 | 2,549 | – | |||||
| &ORVLQJQHWERRNDPRXQW | 141,317 | 228,916 | 34,370 | 60,086 | 464,689 | |||||
| At 31 March 2015 | ||||||||||
| Cost | 172,651 | 577,166 | 109,975 | 148,884 1,008,676 | ||||||
| \$FFXPXODWHGGHSUHFLDWLRQDQGLPSDLUPHQWORVVHV | (31,334) | (348,250) | (75,605) | (88,798) | (543,987) | |||||
| 1HWERRNDPRXQW | 141,317 | 228,916 | 34,370 | 60,086 | 464,689 | |||||
| <hduhqghg0dufkuhvwdwhg< td=""> | </hduhqghg0dufkuhvwdwhg<> | |||||||||
| 2SHQLQJQHWERRNDPRXQW | ||||||||||
| ([FKDQJHGLHUHQFHV | ||||||||||
| \$ULVLQJRQDFTXLVLWLRQ | 449 | |||||||||
| Disposal of subsidiaries | – | |||||||||
| Additions | ||||||||||
| Disposals | ||||||||||
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| ΖPSDLUPHQWFKDUJHQRWH | – | – | – | |||||||
| 5HFODVVLȴFDWLRQV | – | |||||||||
| &ORVLQJQHWERRNDPRXQW | ||||||||||
| \$W0DUFKUHVWDWHG | ||||||||||
| Cost | ||||||||||
| \$FFXPXODWHGGHSUHFLDWLRQDQGLPSDLUPHQWORVVHV | ||||||||||
| 1HWERRNDPRXQW |
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| 2015 £'000 |
2014 eȇ |
|---|---|
| 477 | |
| 305 | |
| 29 | |
| 811 | |
| Customer related |
Brand related |
|||||||
|---|---|---|---|---|---|---|---|---|
| Group | Goodwill £'000 |
intangibles £'000 |
intangibles £'000 |
Total £'000 |
||||
| Year ended 31 March 2015 | ||||||||
| 2SHQLQJQHWERRNDPRXQWUHVWDWHG | 688,439 | 54,077 | – | 742,516 | ||||
| ([FKDQJHGLHUHQFHV | (23,779) | (2,215) | (416) | (26,410) | ||||
| \$ULVLQJRQDFTXLVLWLRQQRWH | 67,715 | 18,484 | 5,429 | 91,628 | ||||
| 'LVSRVDORIVXEVLGLDULHVQRWH | (13,510) | (4,063) | – | (17,573) | ||||
| ΖPSDLUPHQWFKDUJHQRWH | (5,637) | – | – | (5,637) | ||||
| \$PRUWLVDWLRQFKDUJH | – | (24,802) | (543) | (25,345) | ||||
| &ORVLQJQHWERRNDPRXQW | 713,228 | 41,481 | 4,470 | 759,179 | ||||
| At 31 March 2015 | ||||||||
| Cost | 752,745 | 142,508 | 5,013 | 900,266 | ||||
| \$FFXPXODWHGDPRUWLVDWLRQDQGLPSDLUPHQWORVVHV | (39,517) | (101,027) | (543) | (141,087) | ||||
| 1HWERRNDPRXQW | 713,228 | 41,481 | 4,470 | 759,179 | ||||
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| Cash-generating units | Goodwill (£'000) | |||
|---|---|---|---|---|
| 2015 number |
Restated 2014 QXPEHU |
2015 £'000 |
Restated 2014 eȇ |
|
| '&&(QHUJ\ | 12 | 12 | 419,136 | |
| '&&7HFKQRORJ\ | 7 | 62,603 | ||
| '&&+HDOWKFDUH | 4 | 4 | 154,121 | |
| '&&(QYLURQPHQWDO | 4 | 4 | 77,368 | |
| Discontinued operations | – | 4 | – | |
| 27 | 29 | 713,228 |
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| 2015 £'000 |
2014 eȇ |
|
|---|---|---|
| &HUWDV(QHUJ\8.*URXS | 252,735 | |
| '&&9LWDO*URXS | 135,209 |
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| Increase in discount rate | SHUFHQWDJHSRLQWV |
|---|---|
| 5HGXFWLRQLQORQJWHUPJURZWKUDWH | 0.4 percentage points |
| 5HGXFWLRQLQFDVKȵRZ |
| 2015 £'000 |
Restated 2014 eȇ |
|
|---|---|---|
| At 1 April | 6,124 | |
| 6KDUHRISURȴWDIWHUWD[ | 489 | |
| 'LYLGHQGVUHFHLYHG | (828) | |
| 'LVSRVDORIHTXLW\DFFRXQWHGLQYHVWPHQWVQRWH | (627) | – |
| Exchange and other | (195) | |
| \$W0DUFK | 4,963 |
ΖQYHVWPHQWVLQDVVRFLDWHVDQGMRLQWYHQWXUHVDW0DUFKLQFOXGHJRRGZLOORIePLOOLRQePLOOLRQ
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| Non current assets £'000 |
Current assets £'000 |
Non current liabilities £'000 |
Current liabilities £'000 |
Net assets £'000 |
|
|---|---|---|---|---|---|
| As at 31 March 2015 | |||||
| -RLQWYHQWXUHV | 5,081 | 2,573 | – | (3,356) | 4,298 |
| Associates | 338 | 420 | – | (93) | 665 |
| Total | 5,419 | 2,993 | – | (3,449) | 4,963 |
| \$VDW0DUFKUHVWDWHG | |||||
| -RLQWYHQWXUHV | |||||
| Associates | |||||
| Total | |||||
'HWDLOVRIWKH*URXSȇVMRLQWYHQWXUHVDQGDVVRFLDWHVDUHDVIROORZV
| 1DPHDQG5HJLVWHUHG2ɝFH | Nature of Business | Financial Year End | % Shareholding | Relevant Share Capital |
|---|---|---|---|---|
| -RLQWYHQWXUHV .6*'LQLQJ/LPLWHG 0F.HH\$YHQXH )LQJODV 'XEOLQΖUHODQG |
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|
| \$VVRFLDWHV /HH2LO&RUN /LPLWHG &ORQPLQDPΖQGXVWULDO(VWDWH3RUWODRLVH &R/DRLVΖUHODQG |
6DOHDQGGLVWULEXWLRQRIRLO products. |
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| Company | 2015 £'000 |
2014 eȇ |
|---|---|---|
| At 1 April | 142,692 | |
| Additions | 3,945 | |
| Disposals | (6,675) | – |
| Exchange | (17,170) | |
| \$W0DUFK | 122,792 |
'HWDLOVRIWKH*URXSȇVSULQFLSDORSHUDWLQJVXEVLGLDULHVDUHVKRZQRQSDJHVWR1RQZKROO\RZQHGVXEVLGLDULHVSULQFLSDOO\FRPSULVHV '&&(QYLURQPHQWDO%ULWDLQ/LPLWHG ZKLFKRZQVRI:DVWHF\FOH/LPLWHG2DNZRRG)XHOV/LPLWHGDQG:LOOLDP7UDFH\/LPLWHG ZKHUHSXWDQGFDOORSWLRQVH[LVWWRDFTXLUHWKHUHPDLQLQJ
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| Group | 2015 £'000 |
Restated 2014 eȇ |
|---|---|---|
| 5DZPDWHULDOV | 16,149 | |
| :RUNLQSURJUHVV | 1,974 | |
| )LQLVKHGJRRGV | 302,532 | |
| 320,655 |
| Group | 2015 £'000 |
Restated 2014 eȇ |
|---|---|---|
| 7UDGHUHFHLYDEOHV | 774,546 | |
| 3URYLVLRQIRULPSDLUPHQWRIWUDGHUHFHLYDEOHVQRWH | (15,103) | |
| 3UHSD\PHQWVDQGDFFUXHGLQFRPH | 58,333 | |
| 9DOXHDGGHGWD[UHFRYHUDEOH | 8,818 | |
| Other debtors | 20,680 | |
| 847,274 | ||
| Company | 2015 £'000 |
2014 eȇ |
| \$PRXQWVRZHGE\VXEVLGLDU\XQGHUWDNLQJV | 258,033 |
| Restated | |
|---|---|
| 2015 Group £'000 |
2014 eȇ |
| 1,095,648 7UDGHSD\DEOHV |
|
| Other creditors and accruals 140,709 |
|
| 3\$<(DQG1DWLRQDOΖQVXUDQFH 10,328 |
|
| 57,846 9DOXHDGGHGWD[ |
|
| 24 *RYHUQPHQWJUDQWVQRWH |
20 |
| ΖQWHUHVWSD\DEOH 4,469 |
|
| \$PRXQWVGXHLQUHVSHFWRISURSHUW\SODQWDQGHTXLSPHQW 3,112 |
|
| 1,312,136 | |
| 2015 Company £'000 |
2014 eȇ |
| \$PRXQWVGXHWRVXEVLGLDU\XQGHUWDNLQJV 164,448 |
|
| Other creditors and accruals 442 |
|
| 164,890 |
| Group £'000 |
£'000 | £'000 | ||||
|---|---|---|---|---|---|---|
| Year ended 31 March 2015 | ||||||
| 501,408 \$W\$SULOUHVWDWHG |
957,821 | (1,489,054) | (29,825) | |||
| 7UDQVODWLRQDGMXVWPHQW (10,979) |
(38,393) | 48,317 | (1,055) | |||
| \$ULVLQJRQDFTXLVLWLRQQRWH 20,878 |
49,138 | (56,834) | 13,182 | |||
| (16,192) 'LVSRVDORIVXEVLGLDULHVQRWH |
(21,439) | 19,017 | (18,614) | |||
| (2,538) ([FHSWLRQDOLWHPVLQWHUHVWDFFUXDOVDQGRWKHU |
(2,582) | 1,067 | (4,053) | |||
| 'HFUHDVH LQFUHDVHLQZRUNLQJFDSLWDOQRWH (169,385) |
(90,659) | 157,488 | (102,556) | |||
| \$VVHWVDQGOLDELOLWLHVFODVVLȴHGDVKHOGIRUVDOHQRWH (2,537) |
(6,612) | 7,863 | (1,286) | |||
| \$W0DUFK 320,655 |
847,274 | (1,312,136) | (144,207) | |||
| <hduhqghg0dufkuhvwdwhg< td=""> | </hduhqghg0dufkuhvwdwhg<> | |||||
| \$W\$SULO |
||||||
| 7UDQVODWLRQDGMXVWPHQW |
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| \$ULVLQJRQDFTXLVLWLRQ |
||||||
| Disposal of subsidiaries |
||||||
| ([FHSWLRQDOLWHPVLQWHUHVWDFFUXDOVDQGRWKHU – |
||||||
| ΖQFUHDVHGHFUHDVH LQZRUNLQJFDSLWDOQRWH |
||||||
| \$W0DUFK |
| Company | Trade and other receivables £'000 |
Trade and other payables £'000 |
Total £'000 |
|||
|---|---|---|---|---|---|---|
| Year ended 31 March 2015 | ||||||
| At 1 April 2014 | 335,662 | (316,801) | 18,861 | |||
| 7UDQVODWLRQDGMXVWPHQW | (37,777) | 30,179 | (7,598) | |||
| 'LYLGHQGVUHFHLYHG | (28,405) | – | (28,405) | |||
| 'HFUHDVH LQFUHDVHLQZRUNLQJFDSLWDOQRWH | (11,447) | 107,604 | 96,157 | |||
| \$W0DUFK | 258,033 | (179,018) | 79,015 | |||
| <hduhqghg0dufk< td=""> | </hduhqghg0dufk<> | |||||
| \$W\$SULO | ||||||
| 7UDQVODWLRQDGMXVWPHQW | ||||||
| 'LYLGHQGVUHFHLYDEOH | – | |||||
| 'HFUHDVHLQZRUNLQJFDSLWDOQRWH | ||||||
| \$W0DUFK |
| Group | 2015 £'000 |
Restated 2014 eȇ |
|---|---|---|
| &DVKDWEDQNDQGLQKDQG | 251,592 | |
| 6KRUWWHUPEDQNGHSRVLWV | 1,009,350 | |
| 1,260,942 |
&DVKDWEDQNHDUQVLQWHUHVWDWȵRDWLQJUDWHVEDVHGRQGDLO\EDQNGHSRVLWUDWHV7KHVKRUWWHUPGHSRVLWVDUHIRUSHULRGVXSWRWKUHHPRQWKV DQGHDUQLQWHUHVWDWWKHUHVSHFWLYHVKRUWWHUPGHSRVLWUDWHV
&DVKDQGFDVKHTXLYDOHQWVLQFOXGHWKHIROORZLQJIRUWKHSXUSRVHVRIWKH*URXS&DVK)ORZ6WDWHPHQW
| 2015 £'000 |
Restated 2014 eȇ |
|
|---|---|---|
| &DVKDQGVKRUWWHUPEDQNGHSRVLWV | 1,260,942 | |
| %DQNRYHUGUDIWV | (133,629) | |
| &DVKDQGVKRUWWHUPEDQNGHSRVLWVDWWULEXWDEOHWRDVVHWVKHOGIRUVDOHQRWH | 2,352 | – |
| 1,129,665 |
%DQNRYHUGUDIWVDUHLQFOXGHGZLWKLQFXUUHQWERUURZLQJVQRWH LQWKH*URXS%DODQFH6KHHW
| Company | 2015 £'000 |
2014 eȇ |
|---|---|---|
| &DVKDWEDQNDQGLQKDQG | 617 |
| Group | 2015 £'000 |
2014 eȇ |
|---|---|---|
| Non-current assets | ||
| &URVVFXUUHQF\LQWHUHVWUDWHVZDSVȂIDLUYDOXHKHGJHV | 187,033 | |
| &URVVFXUUHQF\LQWHUHVWUDWHVZDSVȂFDVKȵRZKHGJHV | 26,561 | – |
| ΖQWHUHVWUDWHVZDSVȂIDLUYDOXHKHGJHV | 17,018 | |
| &XUUHQF\VZDSVȂQRWGHVLJQDWHGDVKHGJHV | 2,538 | – |
| 233,150 | ||
| Current assets | ||
| &URVVFXUUHQF\LQWHUHVWUDWHVZDSVȂIDLUYDOXHKHGJHV | 2,610 | |
| ΖQWHUHVWUDWHVZDSVȂIDLUYDOXHKHGJHV | – | |
| )RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVȂFDVKȵRZKHGJHV | 2,026 | |
| )RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVȂIDLUYDOXHKHGJHV | 48 | 2 |
| )RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVȂQRWGHVLJQDWHGDVKHGJHV | 39 | |
| &RPPRGLW\IRUZDUGFRQWUDFWVȂFDVKȵRZKHGJHV | 672 | 20 |
| &RPPRGLW\IRUZDUGFRQWUDFWVȂIDLUYDOXHKHGJHV | – | |
| &RPPRGLW\IRUZDUGFRQWUDFWVȂQRWGHVLJQDWHGDVKHGJHV | – | |
| 5,395 | ||
| Total assets | 238,545 | |
| Non-current liabilities | ||
| &URVVFXUUHQF\LQWHUHVWUDWHVZDSVȂIDLUYDOXHKHGJHV | – | |
| &URVVFXUUHQF\LQWHUHVWUDWHVZDSVȂFDVKȵRZKHGJHV | (92) | |
| &XUUHQF\VZDSVȂQRWGHVLJQDWHGDVKHGJHV | – | |
| (92) | ||
| Current liabilities | ||
| &URVVFXUUHQF\LQWHUHVWUDWHVZDSVȂIDLUYDOXHKHGJHV | – | |
| &XUUHQF\VZDSVȂQRWGHVLJQDWHGDVKHGJHV | – | |
| )RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVȂFDVKȵRZKHGJHV | (933) | |
| )RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVȂIDLUYDOXHKHGJHV | – | |
| )RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVȂQRWGHVLJQDWHGDVKHGJHV | (208) | |
| &RPPRGLW\IRUZDUGFRQWUDFWVȂFDVKȵRZKHGJHV | (6,501) | |
| &RPPRGLW\IRUZDUGFRQWUDFWVȂIDLUYDOXHKHGJHV | (225) | |
| &RPPRGLW\IRUZDUGFRQWUDFWVȂQRWGHVLJQDWHGDVKHGJHV | (35) | |
| (7,902) | ||
| Total liabilities | (7,994) | |
| 1HWDVVHWOLDELOLW\ DULVLQJRQGHULYDWLYHȴQDQFLDOLQVWUXPHQWV | 230,551 |
7KHIXOOIDLUYDOXHRIDKHGJLQJGHULYDWLYHLVFODVVLȴHGDVDQRQFXUUHQWDVVHWRUOLDELOLW\LIWKHUHPDLQLQJPDWXULW\RIWKHKHGJHGLWHPLVPRUH WKDQWZHOYHPRQWKVDQGDVDFXUUHQWDVVHWRUOLDELOLW\LIWKHPDWXULW\RIWKHKHGJHGLWHPLVOHVVWKDQWZHOYHPRQWKV
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| Group | 2015 £'000 |
2014 eȇ |
|---|---|---|
| Non-current | ||
| )LQDQFHOHDVHV | 213 | |
| 8QVHFXUHG1RWHV | 1,314,173 | |
| 1,314,386 | ||
| Current | ||
| %DQNERUURZLQJV | 133,629 | |
| )LQDQFHOHDVHV | 357 | |
| 8QVHFXUHG1RWHV | 15,486 | |
| 149,472 | ||
| Total borrowings | 1,463,858 |
6HFXUHGRQVSHFLȴFSODQWDQGHTXLSPHQW
7KHPDWXULW\RIQRQFXUUHQWERUURZLQJVLVDVIROORZV
| 2015 £'000 |
2014 eȇ |
|
|---|---|---|
| %HWZHHQDQG\HDUV | 99,759 | |
| %HWZHHQDQG\HDUV | 303,562 | |
| 2YHU\HDUV | 911,065 | |
| 1,314,386 |
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| 2015 | 2014 |
|---|---|
| Average maturity** 7.1 years |
7.8 years |
| Average fixed interest rates** | |
| $-$ US\$ denominated* 4.78% |
4.76% |
| - sterling denominated* 4.91% |
4.91% |
| $-$ euro denominated* 3.49% |
3.49% |
| Average floating rate including swaps | |
| - sterling denominated 2.10% |
1.94% |
| - euro denominated 1.84% |
1.84% |
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FRPSDUDWLYHVLQFOXGHWKH1RWHVDQGH[FOXGHWKHSRUWLRQRIWKH1RWHVUHSDLGRQ\$SULO86PLOOLRQDQGePLOOLRQ
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| Restated | Fair value adjustment | |||||
|---|---|---|---|---|---|---|
| At 1 April 2014 £'000 |
&DVKȵRZ £'000 |
Income Statement £'000 |
Cash Flow Hedge Reserve £'000 |
Translation adjustment £'000 |
At 31 March 2015 £'000 |
|
| &DVKDQGVKRUWWHUPEDQNGHSRVLWV | 962,139 | 360,591 | – | – | (59,436) | 1,263,294 |
| 2YHUGUDIWV | (148,578) | 13,719 | – | – | 1,230 | (133,629) |
| 813,561 | 374,310 | – | – | (58,206) | 1,129,665 | |
| )LQDQFHOHDVHV | (1,120) | 486 | – | – | 64 | (570) |
| 8QVHFXUHG1RWHV | (892,859) | (279,358) | (196,358) | – | 38,916 | (1,329,659) |
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWVQHW | (6,874) | 8,098 | 194,167 | 37,131 | (1,971) | 230,551 |
| *URXSQHWGHEW FDVKLQFOXGLQJFDVK DWWULEXWDEOHWRDVVHWVFODVVLȴHGDVKHOGIRUVDOH |
(87,292) | 103,536 | (2,191) | 37,131 | (21,197) | 29,987 |
| *URXSQHWGHEW FDVKH[FOXGLQJFDVK DWWULEXWDEOHWRDVVHWVFODVVLȴHGDVKHOGIRUVDOH |
(89,763) | 103,655 | (2,191) | 37,131 | (21,197) | 27,635 |
7KHUHFRQFLOLDWLRQRIRSHQLQJWRFORVLQJQHWGHEWIRUWKH\HDUHQGHG0DUFKUHVWDWHG LVDVIROORZV
| Restated | )DLUYDOXHDGMXVWPHQW | Restated | ||||
|---|---|---|---|---|---|---|
| At 1 \$SULO eȇ |
&DVKȵRZ eȇ |
ΖQFRPH 6WDWHPHQW eȇ |
&DVK)ORZ +HGJH5HVHUYH eȇ |
Translation DGMXVWPHQW eȇ |
\$W 0DUFK eȇ |
|
| &DVKDQGVKRUWWHUPEDQNGHSRVLWV | – | – | ||||
| 2YHUGUDIWV | – | – | ||||
| – | – | |||||
| )LQDQFHOHDVHV | – | – | ||||
| 8QVHFXUHG1RWHV | – | |||||
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWVQHW | 144 | |||||
| Group net debt |
7KHFXUUHQF\SURȴOHRIQHWGHEWDW0DUFKLVDVIROORZV
| Euro £'000 |
Sterling £'000 |
US Dollar £'000 |
Swedish Krona £'000 |
Other £'000 |
Total £'000 |
|
|---|---|---|---|---|---|---|
| &DVKDQGFDVKHTXLYDOHQWV | 414,859 | 803,136 | 9,049 | 20,128 | 16,122 | 1,263,294 |
| %RUURZLQJV | (722,902) | (740,644) | – | (312) | – | (1,463,858) |
| 'HULYDWLYHV | 138,285 | 95,656 | (3,390) | – | – | 230,551 |
| (169,758) | 158,148 | 5,659 | 19,816 | 16,122 | 29,987 |
7KHFXUUHQF\SURȴOHRIQHWGHEWDW0DUFKUHVWDWHG LVDVIROORZV
| Euro eȇ |
6WHUOLQJ eȇ |
86'ROODU eȇ |
6ZHGLVK.URQD eȇ |
Other eȇ |
Total eȇ |
|
|---|---|---|---|---|---|---|
| &DVKDQGFDVKHTXLYDOHQWV | ||||||
| %RUURZLQJV | – | |||||
| 'HULYDWLYHV | – | – | ||||
&DVKDQGFDVKHTXLYDOHQWVDW0DUFKDQG0DUFKKDYHPDWXULW\SHULRGVXSWRWKUHHPRQWKVQRWH
%DQNERUURZLQJVDUHDWȵRDWLQJLQWHUHVWUDWHVIRUSHULRGVOHVVWKDQVL[PRQWKVZKLOHWKH*URXSȇV8QVHFXUHG1RWHVGXHWRKDYH EHHQVZDSSHGWRDFRPELQDWLRQRIȴ[HGUDWHVDQGȵRDWLQJUDWHVZKLFKUHVHWRQDTXDUWHUO\RUVHPLDQQXDOEDVLVQRWH 7KHPDMRULW\RI ȴQDQFHOHDVHVDUHDWȴ[HGUDWHV
7KHIROORZLQJLVDQDQDO\VLVRIWKHPRYHPHQWLQWKHPDMRUFDWHJRULHVRIGHIHUUHGWD[OLDELOLWLHVDVVHWV UHFRJQLVHGE\WKH*URXSIRUWKH\HDU HQGHG0DUFK
| Property plant and equipment £'000 |
Intangible assets £'000 |
Tax losses and credits £'000 |
Retirement EHQHȴW obligations £'000 |
Short term temporary GLHUHQFHV and other GLHUHQFHV £'000 |
Total £'000 |
|
|---|---|---|---|---|---|---|
| \$W\$SULOUHVWDWHG | 9,590 | 14,438 | (3,009) | (2,420) | (2,332) | 16,267 |
| &RQVROLGDWHGΖQFRPH6WDWHPHQWPRYHPHQW | 2,433 | (5,156) | (257) | 1,725 | 1,309 | 54 |
| 5HFRJQLVHGLQ2WKHU&RPSUHKHQVLYHΖQFRPH | – | – | – | (2,187) | (324) | (2,511) |
| \$ULVLQJRQDFTXLVLWLRQ | 3,028 | 4,382 | – | – | 616 | 8,026 |
| 'HIHUUHGWD[RQGLVSRVDOVQRWH | (218) | (277) | – | 875 | 3 | 383 |
| Deferred tax attributable to asset held for sale | ||||||
| QRWH | 10 | – | – | – | 38 | 48 |
| ([FKDQJHGLHUHQFHVDQGRWKHU | (446) | (996) | 287 | 170 | (129) | (1,114) |
| \$W0DUFK | 14,397 | 12,391 | (2,979) | (1,837) | (819) | 21,153 |
| \$QDO\VHGDV | ||||||
| Deferred tax asset | (1,265) | – | (2,979) | (1,944) | (3,192) | (9,380) |
| 'HIHUUHGWD[OLDELOLW\ | 15,662 | 12,391 | – | 107 | 2,373 | 30,533 |
| 14,397 | 12,391 | (2,979) | (1,837) | (819) | 21,153 | |
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| 3URSHUW\ plant and HTXLSPHQW eȇ |
Intangible assets eȇ |
Tax losses and credits eȇ |
5HWLUHPHQW EHQHȴW obligations eȇ |
6KRUWWHUP WHPSRUDU\ GLHUHQFHV and other GLHUHQFHV eȇ |
Total eȇ |
|
|---|---|---|---|---|---|---|
| \$W\$SULOUHVWDWHG | ||||||
| &RQVROLGDWHGΖQFRPH6WDWHPHQWPRYHPHQW | ||||||
| 5HFRJQLVHGLQ2WKHU&RPSUHKHQVLYHΖQFRPH | – | – | – | |||
| \$ULVLQJRQDFTXLVLWLRQ | – | – | – | |||
| ([FKDQJHGLHUHQFHVDQGRWKHU | ||||||
| \$W0DUFK | ||||||
| \$QDO\VHGDV | ||||||
| Deferred tax asset | – | |||||
| 'HIHUUHGWD[OLDELOLW\ | – | |||||
'HIHUUHGWD[DVVHWVDQGOLDELOLWLHVUHTXLUHPDQDJHPHQWMXGJHPHQWLQGHWHUPLQLQJWKHDPRXQWVWREHUHFRJQLVHGΖQSDUWLFXODUVLJQLȴFDQW MXGJHPHQWLVXVHGZKHQDVVHVVLQJWKHH[WHQWWRZKLFKGHIHUUHGWD[DVVHWVVKRXOGEHUHFRJQLVHGZLWKFRQVLGHUDWLRQJLYHQWRWKHWLPLQJDQG OHYHORIIXWXUHWD[DEOHLQFRPHLQWKHUHOHYDQWMXULVGLFWLRQ7KHPDMRULW\RIWKHQHWGHIHUUHGWD[DVVHWDW0DUFKRIePLOOLRQLV H[SHFWHGWREHVHWWOHGUHFRYHUHGPRUHWKDQWZHOYHPRQWKVDIWHUWKHEDODQFHVKHHWGDWH
'HIHUUHGLQFRPHWD[DVVHWVDQGOLDELOLWLHVDUHRVHWZKHQWKHUHLVDOHJDOO\HQIRUFHDEOHULJKWWRRVHWFXUUHQWWD[DVVHWVDJDLQVWFXUUHQWWD[ OLDELOLWLHVDQGZKHQWKHGHIHUUHGLQFRPHWD[HVUHODWHWRWKHVDPHȴVFDODXWKRULW\'HIHUUHGLQFRPHWD[KDVQRWEHHQUHFRJQLVHGIRUZLWKKROGLQJ DQGRWKHUWD[HVWKDWPD\EHSD\DEOHRQWKHXQUHPLWWHGHDUQLQJVRIFHUWDLQVXEVLGLDULHVDVWKHWLPLQJRIWKHUHYHUVDORIWKHVHWHPSRUDU\ GLHUHQFHVLVFRQWUROOHGE\WKH*URXSDQGLWLVSUREDEOHWKDWWKHVHWHPSRUDU\GLHUHQFHVZLOOQRWUHYHUVHLQWKHIRUHVHHDEOHIXWXUH
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| 2015 | 2014 | |
|---|---|---|
| Republic of Ireland schemes | ||
| Rate of increase in salaries | $n/a*$ | $2.00\% - 3.00\%$ |
| Rate of increase in pensions in payment | $1.25\% - 2.50\%$ | 2.50% |
| Discount rate | 1.50% | 3.40% |
| Inflation assumption | 1.60% | 2.00% |
7KHUHLVQRIXWXUHVHUYLFHDFFUXDOIRUWKHΖULVKVFKHPHVVRVDODU\LQȵDWLRQLVQRWDSSOLFDEOH
| Rate of increase in salaries | 3.10% | 350% |
|---|---|---|
| Rate of increase in pensions in payment | 1.55% – 3.10% | 175% – 350% |
| Discount rate | 3.35% | 450% |
| Inflation assumption | 3.10% | 350% |
7KHSRVWUHWLUHPHQWPRUWDOLW\DVVXPSWLRQVHPSOR\HGLQGHWHUPLQLQJWKHSUHVHQWYDOXHRIVFKHPHOLDELOLWLHVXQGHUΖ\$6DUHVHWEDVHGRQ DGYLFHIURPSXEOLVKHGVWDWLVWLFVDQGH[SHULHQFHLQERWKJHRJUDSKLFUHJLRQVDQGDUHLQDFFRUGDQFHZLWKWKHXQGHUO\LQJIXQGLQJYDOXDWLRQVb 7KHPRUWDOLW\DVVXPSWLRQVGLVFORVHGIRUȆFXUUHQWUHWLUHHVȇUHODWHWRDVVXPSWLRQVEDVHGRQORQJHYLW\LQ\HDUVIROORZLQJUHWLUHPHQWDWWKH EDODQFHVKHHWGDWHZLWKȆIXWXUHUHWLUHHVȇEHLQJWKDWUHODWLQJWRDQHPSOR\HHUHWLULQJLQ\HDUVWLPH7KHPRUWDOLW\DVVXPSWLRQVDUHDVIROORZV
| 2015 | 2014 | |
|---|---|---|
| Current retirees | ||
| 0DOH | 24.1 | |
| )HPDOH | 25.9 | |
| Future retirees | ||
| 0DOH | 26.9 | |
| )HPDOH | 28.9 |
7KH*URXSGRHVQRWRSHUDWHDQ\SRVWHPSOR\PHQWPHGLFDOEHQHȴWVFKHPHV
7KHQHWSHQVLRQOLDELOLW\UHFRJQLVHGLQWKH%DODQFH6KHHWLVDQDO\VHGDVIROORZV
| 2015 | |||||
|---|---|---|---|---|---|
| ROI £'000 |
UK £'000 |
Total £'000 |
|||
| (TXLWLHV | 22,673 | 10,000 | 32,673 | ||
| %RQGV | 31,848 | 13,840 | 45,688 | ||
| 3URSHUW\ | 870 | 1,145 | 2,015 | ||
| Cash | 3,269 | 1,518 | 4,787 | ||
| 7RWDOIDLUYDOXHDW0DUFK | 58,660 | 26,503 | 85,163 | ||
| 3UHVHQWYDOXHRIVFKHPHOLDELOLWLHV | (66,056) | (29,337) | (95,393) | ||
| 1HWSHQVLRQOLDELOLW\DW0DUFK | (7,396) | (2,834) | (10,230) | ||
| 2014 | ||||
|---|---|---|---|---|
| ROI eȇ |
8. eȇ |
Total eȇ |
||
| (TXLWLHV | ||||
| %RQGV | ||||
| 3URSHUW\ | ||||
| Cash | ||||
| 7RWDOIDLUYDOXHDW0DUFK | ||||
| 3UHVHQWYDOXHRIVFKHPHOLDELOLWLHV | ||||
| 1HWSHQVLRQOLDELOLW\DW0DUFK |
7KHDPRXQWVUHFRJQLVHGLQWKH*URXSΖQFRPH6WDWHPHQWLQUHVSHFWRIGHȴQHGEHQHȴWSHQVLRQVFKHPHVDUHDVIROORZV
| 2015 £'000 |
2014 eȇ |
|
|---|---|---|
| &XUUHQWVHUYLFHFRVW | (677) | |
| 3DVWVHUYLFHFUHGLW | 326 | |
| \$GPLQLVWUDWLRQH[SHQVHV | (43) | |
| 7RWDOLQFOXGHGLQHPSOR\HHEHQHȴWH[SHQVHVQRWH | (394) | |
| 7KHDPRXQWVLQFOXGHGLQHPSOR\HHEHQHȴWH[SHQVHLVDQDO\VHGDV | ||
| Continuing operations | (72) | |
| Discontinued operations | (322) | |
| (394) | ||
| ([FHSWLRQDOSDVWVHUYLFHFUHGLW | 5,922 | – |
| ([FHSWLRQDOFXUWDLOPHQWDQGVHWWOHPHQWJDLQV | 2,823 | |
| 7RWDOLQFOXGHGLQH[FHSWLRQDOLWHPV | 8,745 | |
| 7KHQHWH[FHSWLRQDOLWHPLVDQDO\VHGDV | ||
| &RQWLQXLQJRSHUDWLRQVQRWH | 6,381 | |
| Discontinued operations | 2,364 | – |
| 8,745 | ||
| ΖQWHUHVWFRVWRQVFKHPHOLDELOLWLHV | (3,875) | |
| ΖQWHUHVWLQFRPHRQVFKHPHDVVHWV | 3,439 | |
| 1HWLQWHUHVWH[SHQVHLQFOXGHGLQȴQDQFHFRVWV | (436) | |
| 7KHQHWLQWHUHVWH[SHQVHLVDQDO\VHGDV | ||
| &RQWLQXLQJRSHUDWLRQVQRWH | (316) | |
| Discontinued operations | (120) | |
| (436) |
%DVHGRQWKHDVVXPSWLRQVHPSOR\HGIRUWKHYDOXDWLRQRIDVVHWVDQGOLDELOLWLHVDW0DUFKWKHQHWFKDUJHLQWKH*URXSΖQFRPH6WDWHPHQW LQWKH\HDUHQGLQJ0DUFKH[FOXGLQJWKHH[FHSWLRQDOLWHPDERYH LVH[SHFWHGWREHEURDGO\LQOLQHZLWKWKHFXUUHQW\HDUȴJXUHV
5HPHDVXUHPHQWVUHFRJQLVHGLQ2WKHU&RPSUHKHQVLYHΖQFRPHDUHDVIROORZV
| 2015 £'000 |
2014 eȇ |
|
|---|---|---|
| 5HWXUQRQVFKHPHDVVHWVH[FOXGLQJLQWHUHVWLQFRPH | 17,895 | |
| ([SHULHQFHYDULDWLRQV | 1,300 | |
| \$FWXDULDOORVVIURPFKDQJHVLQGHPRJUDSKLFDVVXPSWLRQV | (1,282) | – |
| \$FWXDULDOORVVIURPFKDQJHVLQȴQDQFLDODVVXPSWLRQV | (37,215) | |
| 7RWDOLQFOXGHGLQ2WKHU&RPSUHKHQVLYHΖQFRPH | (19,302) |
&XPXODWLYHO\VLQFHWUDQVLWLRQWRΖ)56RQ\$SULOePLOOLRQKDVEHHQUHFRJQLVHGDVDFKDUJHLQWKH*URXS6WDWHPHQWRI &RPSUHKHQVLYHΖQFRPH
7KHPRYHPHQWLQWKHIDLUYDOXHRISODQDVVHWVLVDVIROORZV
| 2015 £'000 |
2014 eȇ |
|---|---|
| At 1 April 103,922 |
|
| ΖQWHUHVWLQFRPHRQVFKHPHDVVHWV 3,439 |
|
| 5HPHDVXUHPHQWV | |
| ȂUHWXUQRQVFKHPHDVVHWVH[FOXGLQJLQWHUHVWLQFRPH 17,895 |
|
| 7,189 &RQWULEXWLRQVE\HPSOR\HUV |
|
| 184 &RQWULEXWLRQVE\PHPEHUV |
|
| \$GPLQLVWUDWLRQH[SHQVHV (43) |
|
| %HQHȴWVSDLG (2,295) |
|
| Disposal of subsidiaries (36,249) |
– |
| Exchange (8,879) |
|
| \$W0DUFK 85,163 |
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| 2015 £'000 |
2014 eȇ |
|
|---|---|---|
| At 1 April | 119,955 | |
| &XUUHQWVHUYLFHFRVW | 677 | |
| 3DVWVHUYLFHFUHGLW | (326) | |
| Interest cost | 3,875 | |
| 5HPHDVXUHPHQWV | ||
| ȂH[SHULHQFHYDULDWLRQV | (1,300) | |
| ȂDFWXDULDOORVVIURPFKDQJHVLQGHPRJUDSKLFDVVXPSWLRQV | 1,282 | – |
| ȂDFWXDULDOORVVIURPFKDQJHVLQȴQDQFLDODVVXPSWLRQV | 37,215 | |
| &RQWULEXWLRQVE\PHPEHUV | 184 | |
| %HQHȴWVSDLG | (2,295) | |
| ([FHSWLRQDOSDVWVHUYLFHFUHGLWDQGFXUWDLOPHQWJDLQV | (8,745) | |
| Disposal of subsidiaries | (45,031) | – |
| Exchange | (10,098) | |
| \$W0DUFK | 95,393 |
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(PSOR\HUFRQWULEXWLRQVIRUWKHIRUWKFRPLQJȴQDQFLDO\HDUDUHHVWLPDWHGDWePLOOLRQ7KHGLHUHQFHEHWZHHQWKHDFWXDOHPSOR\HU FRQWULEXWLRQVSDLGLQWKHFXUUHQW\HDURIePLOOLRQDQGWKHH[SHFWDWLRQRIePLOOLRQLQFOXGHGLQWKH\$QQXDO5HSRUWZDVSULPDULO\ GXHWRWKHWLPLQJRIFRQWULEXWLRQVLQFHUWDLQRIWKH*URXSȇVSHQVLRQVFKHPHVZKLFKFRXOGQRWKDYHEHHQDQWLFLSDWHGDWWKHWLPHRI SUHSDUDWLRQRIWKHȴQDQFLDOVWDWHPHQWV
7KHUHDUHLQKHUHQWXQFHUWDLQWLHVVXUURXQGLQJWKHȴQDQFLDODVVXPSWLRQVDGRSWHGLQFDOFXODWLQJWKHDFWXDULDOYDOXDWLRQRIWKH*URXSȇV GHȴQHGEHQHȴWSHQVLRQVFKHPHV7KHIROORZLQJWDEOHDQDO\VHVIRUWKH*URXSȇVΖULVKDQG8.SHQVLRQVFKHPHVWKHHVWLPDWHGLPSDFW RQSODQOLDELOLWLHVUHVXOWLQJIURPFKDQJHVWRNH\DFWXDULDODVVXPSWLRQVZKLOVWKROGLQJDOORWKHUDVVXPSWLRQVFRQVWDQW
| Assumption | Change in assumption | Impact on Irish plan liabilities | Impact on UK plan liabilities |
|---|---|---|---|
| Discount rate | ΖQFUHDVHGHFUHDVHE\ | 'HFUHDVHLQFUHDVHE\ | 'HFUHDVHLQFUHDVHE\ |
| 3ULFHLQȵDWLRQ | ΖQFUHDVHGHFUHDVHE\ | ΖQFUHDVHGHFUHDVHE\ | ΖQFUHDVHGHFUHDVHE\ |
| 0RUWDOLW\ | ΖQFUHDVHGHFUHDVHE\RQH\HDU | ΖQFUHDVHGHFUHDVHE\ | ΖQFUHDVHGHFUHDVHE\ |
Split of scheme assets
| UK | Republic of Ireland | Total | ||||
|---|---|---|---|---|---|---|
| 2015 £'000 |
2014 eȇ |
2015 £'000 |
2014 eȇ |
2015 £'000 |
2014 eȇ |
|
| ΖQYHVWPHQWVTXRWHGLQDFWLYHPDUNHWV | ||||||
| (TXLW\LQVWUXPHQWV | ||||||
| ȂGHYHORSHGPDUNHWV | 9,499 | 21,200 | 30,699 | |||
| ȂHPHUJLQJPDUNHWV | 501 | 1,473 | 1,974 | |||
| 'HEWLQVWUXPHQWV | ||||||
| ȂQRQJRYHUQPHQWGHEWLQVWUXPHQWV | 5,709 | 17,281 | 22,990 | |||
| ȂJRYHUQPHQWGHEWLQVWUXPHQWV | 8,131 | 14,567 | 22,698 | |||
| &DVKDQGFDVKHTXLYDOHQWV | 1,518 | 3,269 | 4,787 | |||
| 8QTXRWHGLQYHVWPHQWV | ||||||
| 3URSHUW\ | 1,145 | 870 | 2,015 | |||
| 26,503 | 58,660 | 85,163 |
Group
7KH*URXSȇVFRQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQRIePLOOLRQePLOOLRQ DVVWDWHGRQWKH%DODQFH6KHHWFRQVLVWVRI ePLOOLRQRIVWHUOLQJȵRDWLQJUDWHȴQDQFLDOOLDELOLWLHVePLOOLRQ ePLOOLRQRIHXURȵRDWLQJUDWHȴQDQFLDOOLDELOLWLHV ePLOOLRQ DQGePLOOLRQRIVZHGLVKNURQDȵRDWLQJUDWHȴQDQFLDOOLDELOLWLHVePLOOLRQ SD\DEOHDVIROORZV
| 2015 £'000 |
2014 eȇ |
|
|---|---|---|
| :LWKLQRQH\HDU | 3,235 | |
| %HWZHHQRQHDQGWZR\HDUV | 8,394 | |
| %HWZHHQWZRDQGȴYH\HDUV | 31,755 | |
| 43,384 | ||
| \$QDO\VHGDV | ||
| Non-current liabilities | 40,149 | |
| Current liabilities | 3,235 | |
| 43,384 |
7KHPRYHPHQWLQWKH*URXSȇVFRQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQLVDVIROORZV
| 2015 £'000 |
2014 eȇ |
|
|---|---|---|
| At 1 April | 53,323 | |
| \$ULVLQJRQDFTXLVLWLRQ | 8,489 | |
| 'LVSRVDORIVXEVLGLDULHVQRWH | (79) | – |
| \$GMXVWPHQWVWRFRQWLQJHQWFRQVLGHUDWLRQDGMXVWPHQWWRJRRGZLOO | – | |
| \$GMXVWPHQWVWRFRQWLQJHQWFRQVLGHUDWLRQUHFRJQLVHGLQWKHΖQFRPH6WDWHPHQW | (1,056) | |
| 3DLGGXULQJWKH\HDU | (16,326) | |
| Exchange and other | (967) | |
| \$W0DUFK | 43,384 |
7KHUHFRQFLOLDWLRQRIWKHPRYHPHQWLQSURYLVLRQVIRUOLDELOLWLHVDQGFKDUJHVIRUWKH\HDUHQGHG0DUFKLVDVIROORZV
| and redundancy £'000 |
and remediation £'000 |
Insurance and other £'000 |
Total £'000 |
|---|---|---|---|
| 13,265 | 9,609 | 8,068 | 30,942 |
| (460) | (391) | 3,118 | 2,267 |
| (503) | (904) | (2,071) | (3,478) |
| – | 10,829 | – | 10,829 |
| – | – | (250) | (250) |
| (1,653) | (1,147) | (398) | (3,198) |
| 10,649 | 17,996 | 8,467 | 37,112 |
| Non–current liabilities | 4,979 | 17,821 | 6,216 | 29,016 |
|---|---|---|---|---|
| Current liabilities | 5,670 | 175 | 2,251 | 8,096 |
| 10,649 | 17,996 | 8,467 | 37,112 |
7KHUHFRQFLOLDWLRQRIWKHPRYHPHQWLQSURYLVLRQVIRUOLDELOLWLHVDQGFKDUJHVIRUWKH\HDUHQGHG0DUFKUHVWDWHG LVDVIROORZV
| 5DWLRQDOLVDWLRQ | ||||
|---|---|---|---|---|
| restructuring | (QYLURQPHQWDO | |||
| and UHGXQGDQF\ |
and UHPHGLDWLRQ |
Insurance and other |
Total | |
| Group | eȇ | eȇ | eȇ | eȇ |
| \$W\$SULOUHVWDWHG | ||||
| 3URYLGHGGXULQJWKH\HDU | ||||
| 8WLOLVHGGXULQJWKH\HDU | ||||
| \$ULVLQJRQDFTXLVLWLRQ | – | – | ||
| Exchange and other | ||||
| \$W0DUFK | ||||
| \$QDO\VHGDV | ||||
| Non-current liabilities | ||||
| Current liabilities | 440 | |||
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7KH*URXSRSHUDWHVDOHYHORIVHOILQVXUDQFHIRUPRWRUOLDELOLW\DQGSXEOLFDQGSURGXFWVOLDELOLW\8QGHUWKHVHDUUDQJHPHQWVWKH*URXS UHWDLQVFHUWDLQLQVXUDQFHH[SRVXUHXSWRSUHGHWHUPLQHGVHOILQVXUDQFHWKUHVKROGV7KLVSURYLVLRQUHȵHFWVDQHVWLPDWLRQRIFODLPVWKDWDUH FODVVLȴHGDVLQFXUUHGEXWQRWUHSRUWHGDQGDOVRWKHRXWVWDQGLQJORVVUHVHUYH\$VLJQLȴFDQWHOHPHQWRIWKHSURYLVLRQLVVXEMHFWWRH[WHUQDO DVVHVVPHQWV7KHXWLOLVDWLRQRIWKHSURYLVLRQLVGHSHQGHQWRQWKHWLPLQJRIVHWWOHPHQWRIWKHRXWVWDQGLQJFODLPV+LVWRULFDOO\WKHDYHUDJH WLPHIRUVHWWOHPHQWRIRXWVWDQGLQJFODLPVUDQJHVIURP\HDUVIURPWKHGDWHRIWKHFODLP
| Group | 2015 £'000 |
2014 eȇ |
|---|---|---|
| At 1 April | 1,343 | |
| \$PRUWLVDWLRQLQ\HDU | (358) | |
| \$ULVLQJRQDFTXLVLWLRQQRWH | 281 | – |
| 5HFHLYHGLQ\HDU | 52 | 100 |
| ([FKDQJHDQGRWKHUDGMXVWPHQWV | (22) | |
| \$W0DUFK | 1,296 | |
| 'LVFORVHGDVGXHZLWKLQRQH\HDUQRWH | (24) | |
| 1,272 |
*RYHUQPHQWJUDQWVUHODWHWRFDSLWDOJUDQWVUHFHLYHGDQGDUHDPRUWLVHGWRWKHΖQFRPH6WDWHPHQWRYHUWKHHVWLPDWHGXVHIXOOLYHVRIWKH related capital assets.
| Group and Company | 2015 £'000 |
2014 eȇ |
|---|---|---|
| Authorised | ||
| RUGLQDU\VKDUHVRIȜHDFK | 25,365 | |
| Issued | ||
| RUGLQDU\VKDUHVLQFOXGLQJRUGLQDU\VKDUHVKHOGDVWUHDVXU\VKDUHV RIȜHDFK |
IXOO\SDLGRUGLQDU\VKDUHVLQFOXGLQJRUGLQDU\VKDUHVKHOGDVWUHDVXU\VKDUHV RIȜHDFKIXOO\bSDLG 14,688
\$VDW0DUFKWKHWRWDODXWKRULVHGQXPEHURIRUGLQDU\VKDUHVLVVKDUHVVKDUHV ZLWKDSDUYDOXHRI ȜSHUVKDUHȜSHUVKDUH
'XULQJWKH\HDUWKH&RPSDQ\UHLVVXHGWUHDVXU\VKDUHVIRUDFRQVLGHUDWLRQQHWRIH[SHQVHV RIePLOOLRQ
\$OOVKDUHVZKHWKHUIXOO\RUSDUWO\SDLGFDUU\HTXDOYRWLQJULJKWVDQGUDQNIRUGLYLGHQGVWRWKHH[WHQWWRZKLFKWKHWRWDODPRXQWSD\DEOH on each share is paid up.
'HWDLOVRIVKDUHRSWLRQVDQGDZDUGVJUDQWHGXQGHUWKH&RPSDQ\ȇVVKDUHRSWLRQDQGDZDUGVFKHPHVDQGWKHWHUPVDWWDFKLQJWKHUHWR DUHSURYLGHGLQQRWHWRWKHȴQDQFLDOVWDWHPHQWVDQGLQWKH5HPXQHUDWLRQ5HSRUWRQSDJHVWR
7KH'LUHFWRUVPD\LQWKHLUDEVROXWHGLVFUHWLRQDQGZLWKRXWJLYLQJDQ\UHDVRQUHIXVHWRUHJLVWHUWKHWUDQVIHURIDVKDUHRUDQ\UHQXQFLDWLRQ RIDQ\DOORWPHQWPDGHLQUHVSHFWRIDVKDUHZKLFKLVQRWIXOO\SDLGRUDQ\WUDQVIHURIDVKDUHWRDPLQRURUDSHUVRQRIXQVRXQGPLQG
7KH'LUHFWRUVPD\DOVRUHIXVHWRUHJLVWHUDQ\WUDQVIHUZKHWKHURUQRWLWLVLQUHVSHFWRIDIXOO\SDLGVKDUH XQOHVVL LWLVORGJHGDWWKH &RPSDQ\ȇV5HJLVWHUHG2ɝFHRUDWVXFKRWKHUSODFHDVWKH'LUHFWRUVPD\DSSRLQWDQGLVDFFRPSDQLHGE\WKHFHUWLȴFDWHIRUWKHVKDUHVWR ZKLFKLWUHODWHVDQGVXFKRWKHUHYLGHQFHDVWKH'LUHFWRUVPD\UHDVRQDEO\UHTXLUHWRVKRZWKHULJKWRIWKHWUDQVIHURUWRPDNHWKHWUDQVIHU VDYHZKHUHWKHWUDQVIHURULVD6WRFN([FKDQJH1RPLQHHLL LWLVLQUHVSHFWRIRQO\RQHFODVVRIVKDUHVDQGLLL LWLVLQIDYRXURIQRWPRUHWKDQ four transferees.
ΖIDWDQ\WLPHWKH'LUHFWRUVGHWHUPLQHWKDWDȆ6SHFLȴHG(YHQWȇDVGHȴQHGLQWKH\$UWLFOHVRI\$VVRFLDWLRQRI'&&SOFKDVRFFXUUHGLQUHODWLRQ WRDQ\VKDUHRUVKDUHVWKH'LUHFWRUVPD\VHUYHDQRWLFHWRVXFKHHFWRQWKHKROGHURUKROGHUVWKHUHRI8SRQWKHH[SLU\RIGD\VIURP WKHVHUYLFHRIDQ\VXFKQRWLFHIRUVRORQJDVVXFKQRWLFHVKDOOUHPDLQLQIRUFHQRKROGHURUKROGHUVRIWKHVKDUHRUVKDUHVVSHFLȴHGLQVXFK QRWLFHVKDOOEHHQWLWOHGWRDWWHQGVSHDNRUYRWHHLWKHUSHUVRQDOO\E\UHSUHVHQWDWLYHRUE\SUR[\DWDQ\JHQHUDOPHHWLQJRIWKH&RPSDQ\RU DWDQ\VHSDUDWHJHQHUDOPHHWLQJRIWKHKROGHUVRIWKHFODVVRIVKDUHVFRQFHUQHGRUWRH[HUFLVHDQ\RWKHUULJKWFRQIHUUHGE\PHPEHUVKLS LQUHODWLRQWRDQ\VXFKPHHWLQJ7KH'LUHFWRUVVKDOOZKHUHWKHVSHFLȴHGVKDUHVUHSUHVHQWQRWOHVVWKDQSHUFHQWRIWKHFODVVRIVKDUHV FRQFHUQHGEHHQWLWOHGWRZLWKKROGSD\PHQWRIDQ\GLYLGHQGRURWKHUDPRXQWSD\DEOHLQFOXGLQJVKDUHVLVVXDEOHLQOLHXRIGLYLGHQGV LQ UHVSHFWRIWKHVSHFLȴHGVKDUHVDQGRUWRUHIXVHWRUHJLVWHUDQ\WUDQVIHURIWKHVSHFLȴHGVKDUHVRUDQ\UHQXQFLDWLRQRIDQ\DOORWPHQWRIQHZ VKDUHVRUGHEHQWXUHVPDGHLQUHVSHFWWKHUHRIXQOHVVVXFKWUDQVIHURUUHQXQFLDWLRQLVVKRZQWRWKHVDWLVIDFWLRQRIWKH'LUHFWRUVWREHDQ DUPȇVOHQJWKWUDQVIHURUDUHQXQFLDWLRQWRDQRWKHUEHQHȴFLDORZQHUXQFRQQHFWHGZLWKWKHKROGHURUDQ\SHUVRQDSSHDULQJWRKDYHDQ LQWHUHVWLQWKHVSHFLȴHGVKDUHV
| Group and Company | 2015 £'000 |
2014 eȇ |
|---|---|---|
| \$W0DUFK | 83,032 |
6KDUHSUHPLXPRIePLOOLRQUHODWHVWRWKHVKDUHSUHPLXPDULVLQJRQWKHLVVXHRIVKDUHV
| Group | Share based payment reserve1 £'000 |
&DVKȵRZ hedge reserve2 £'000 |
Foreign currency translation reserve3 £'000 |
Other reserves4 £'000 |
Total £'000 |
|---|---|---|---|---|---|
| \$W\$SULO | |||||
| &XUUHQF\WUDQVODWLRQ | |||||
| ȂDULVLQJLQWKH\HDU | – | – | – | ||
| ȂUHF\FOHGWRWKHΖQFRPH6WDWHPHQWRQGLVSRVDO | – | – | – | ||
| &DVKȵRZKHGJHV | |||||
| ȂIDLUYDOXHORVVLQ\HDUȂSULYDWHSODFHPHQWGHEW | – | – | – | ||
| ȂIDLUYDOXHORVVLQ\HDUȂRWKHU | – | – | – | ||
| ȂWD[RQIDLUYDOXHQHWORVVHV | – | – | – | ||
| – transfers to sales | – | – | – | ||
| – transfers to cost of sales | – | – | – | ||
| – transfers to operating expenses | – | – | – | ||
| – tax on transfers | – | – | – | ||
| 6KDUHEDVHGSD\PHQW | – | – | – | ||
| \$W0DUFK | 10,630 | (3,844) | 49,822 | 932 | 57,540 |
| &XUUHQF\WUDQVODWLRQ | |||||
| ȂDULVLQJLQWKH\HDU | – | – | (14,418) | – | (14,418) |
| ȂUHF\FOHGWRWKHΖQFRPH6WDWHPHQWRQGLVSRVDO | – | – | (2,721) | – | (2,721) |
| &DVKȵRZKHGJHV | |||||
| ȂIDLUYDOXHJDLQLQ\HDUȂSULYDWHSODFHPHQWGHEW | – | 37,131 | – | – | 37,131 |
| ȂIDLUYDOXHORVVLQ\HDUȂRWKHU | – | (15,901) | – | – | (15,901) |
| ȂWD[RQIDLUYDOXHQHWJDLQV | – | (2,633) | – | – | (2,633) |
| – transfers to sales | – | 4,893 | – | – | 4,893 |
| – transfers to cost of sales | – | 7,889 | – | – | 7,889 |
| – transfers to operating expenses | – | (40,954) | – | – | (40,954) |
| – tax on transfers | – | 2,957 | – | – | 2,957 |
| 6KDUHEDVHGSD\PHQW | 2,126 | – | – | – | 2,126 |
| \$W0DUFK | 12,756 | (10,462) | 32,683 | 932 | 35,909 |
| Company | Foreign currency translation reserve5 £'000 |
Other reserves6 £'000 |
Total £'000 |
|---|---|---|---|
| \$W\$SULO | 229 | ||
| &XUUHQF\WUDQVODWLRQ | – | ||
| \$W0DUFK | 59,572 | 229 | 59,801 |
| &XUUHQF\WUDQVODWLRQ | (24,962) | – | (24,962) |
| \$W0DUFK | 34,610 | 229 | 34,839 |
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7KH*URXSȇVIRUHLJQFXUUHQF\WUDQVODWLRQUHVHUYHUHSUHVHQWVDOOIRUHLJQH[FKDQJHGLHUHQFHVIURP\$SULODULVLQJIURPWKHWUDQVODWLRQRIWKHQHWDVVHWVRIWKH *URXSȇVQRQVWHUOLQJGHQRPLQDWHGRSHUDWLRQVLQFOXGLQJWKHWUDQVODWLRQRIWKHSURȴWVDQGORVVHVRIVXFKRSHUDWLRQVIURPWKHDYHUDJHUDWHIRUWKH\HDUWRWKHFORVLQJ rate at the balance sheet date.
7KH*URXSȇVRWKHUUHVHUYHVFRPSULVHDFDSLWDOFRQYHUVLRQUHVHUYHIXQGDQGDQXQUHDOLVHGJDLQRQWKHGLVSRVDORIDQDVVRFLDWH
7KH&RPSDQ\ȇVIRUHLJQFXUUHQF\WUDQVODWLRQUHVHUYHUHSUHVHQWVDOOIRUHLJQH[FKDQJHGLHUHQFHVIURP\$SULODULVLQJIURPWKHWUDQVODWLRQRIWKHQHWDVVHWVRIWKH &RPSDQ\ȇVHXURGHQRPLQDWHGRSHUDWLRQVLQWRVWHUOLQJWKHSUHVHQWDWLRQFXUUHQF\ LQFOXGLQJWKHWUDQVODWLRQRIWKHSURȴWVDQGORVVHVRIWKH&RPSDQ\IURPWKHDYHUDJH UDWHIRUWKH\HDUWRWKHFORVLQJUDWHDWWKHEDODQFHVKHHWGDWH
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| Group | 2015 £'000 |
2014 eȇ |
|---|---|---|
| At 1 April | 786,158 | |
| 1HWLQFRPHUHFRJQLVHGLQΖQFRPH6WDWHPHQW | 144,427 | |
| 1HWLQFRPHUHFRJQLVHGLQ2WKHU&RPSUHKHQVLYHΖQFRPH | ||
| ȂUHPHDVXUHPHQWVRIGHȴQHGEHQHȴWSHQVLRQREOLJDWLRQV | (19,302) | |
| ȂGHIHUUHGWD[RQUHPHDVXUHPHQWV | 2,187 | |
| 5HLVVXHRIWUHDVXU\VKDUHVQHWRIH[SHQVHV | 1,699 | |
| 'LYLGHQGV | (66,050) | |
| \$W0DUFK | 849,119 | |
| Company | 2015 £'000 |
2014 eȇ |
| At 1 April | 7,031 | |
| 7RWDOFRPSUHKHQVLYHLQFRPHIRUWKHȴQDQFLDO\HDU | 127,185 | |
| 5HLVVXHRIWUHDVXU\VKDUHVQHWRIH[SHQVHV | 1,699 |
7KHFRVWWRWKH*URXSDQGWKH&RPSDQ\RIȜPLOOLRQWRDFTXLUHWKHVKDUHVKHOGLQ7UHDVXU\KDVEHHQGHGXFWHGIURPWKH *URXSDQG&RPSDQ\5HWDLQHG(DUQLQJV7KHVHVKDUHVZHUHDFTXLUHGDWSULFHVUDQJLQJIURPȜWRȜHDFKDYHUDJHȜ EHWZHHQ 1RYHPEHUDQG-XQHDQGDUHSULPDULO\KHOGWRVDWLVI\H[HUFLVHVXQGHUWKH*URXSȇVVKDUHRSWLRQVDQGDZDUGVVFKHPHV
'LYLGHQGV (66,050) \$W0DUFK 69,865
| Group | 2015 £'000 |
2014 eȇ |
|---|---|---|
| At 1 April | 4,837 | |
| 6KDUHRIORVV SURȴWIRUWKHȴQDQFLDO\HDU | (3) | |
| 'LYLGHQGVWRQRQFRQWUROOLQJLQWHUHVWV | – | |
| Exchange | (589) | |
| \$W0DUFK | 4,245 |
| Restated | ||
|---|---|---|
| Group | 2015 £'000 |
2014 eȇ |
| 3URȴWIRUWKHȴQDQFLDO\HDU | 144,424 | |
| \$GGEDFNQRQRSHUDWLQJH[SHQVHVLQFRPH | ||
| ȂWD[QRWH | 18,881 | |
| ȂVKDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVȇSURȴW | (489) | |
| – net operating exceptionals | 8,725 | |
| ȂQHWȴQDQFHFRVWV | 31,313 | |
| 2SHUDWLQJSURȴWEHIRUHH[FHSWLRQDOV | 202,854 | |
| ȂVKDUHEDVHGSD\PHQWVH[SHQVHQRWH | 2,126 | |
| ȂGHSUHFLDWLRQQRWH | 59,710 | |
| ȂDPRUWLVDWLRQRILQWDQJLEOHDVVHWVQRWH | 25,345 | |
| ȂSURȴWRQGLVSRVDORISURSHUW\SODQWDQGHTXLSPHQW | (3,256) | |
| ȂDPRUWLVDWLRQRIJRYHUQPHQWJUDQWVQRWH | (358) | |
| ȂRWKHUSULPDULO\SHQVLRQSD\PHQWV | (11,159) | |
| &KDQJHVLQZRUNLQJFDSLWDOH[FOXGLQJWKHHHFWVRIDFTXLVLWLRQDQGH[FKDQJHGLHUHQFHVRQFRQVROLGDWLRQ | ||
| ȂLQYHQWRULHVQRWH | 169,385 | |
| ȂWUDGHDQGRWKHUUHFHLYDEOHVQRWH | 90,659 | |
| ȂWUDGHDQGRWKHUSD\DEOHVQRWH | (157,488) | |
| &DVKJHQHUDWHGIURPRSHUDWLRQVEHIRUHH[FHSWLRQDOV | 377,818 | |
| Company | 2015 £'000 |
2014 eȇ |
| 3URȴWIRUWKHȴQDQFLDO\HDU | 127,185 | |
| \$GGEDFNQRQRSHUDWLQJLQFRPH | ||
| – net operating exceptionals | (31,100) | – |
| ȂQHWȴQDQFHLQFRPH | (7,160) | |
| ȂGLYLGHQGLQFRPH | (87,312) | |
| 2SHUDWLQJSURȴW | 1,613 | |
| &KDQJHVLQZRUNLQJFDSLWDO | ||
| ȂWUDGHDQGRWKHUUHFHLYDEOHVQRWH | 11,447 | |
| ȂWUDGHDQGRWKHUSD\DEOHVQRWH | (107,604) | |
| Cash generated from operations | (94,544) | |
7KH&RPSDQ\DQGFHUWDLQVXEVLGLDULHVKDYHJLYHQJXDUDQWHHVRIePLOOLRQePLOOLRQ LQUHVSHFWRIERUURZLQJVDQG RWKHUREOLJDWLRQVDULVLQJLQWKHRUGLQDU\FRXUVHRIEXVLQHVVRIWKH&RPSDQ\DQGRWKHU*URXSXQGHUWDNLQJV
3XUVXDQWWRWKHSURYLVLRQVRI6HFWLRQ&RPSDQLHV\$PHQGPHQW \$FWWKH&RPSDQ\KDVJXDUDQWHHGWKHOLDELOLWLHVRIWKHIROORZLQJ VXEVLGLDULHV\$OYDED\/LPLWHG'&&%XVLQHVV([SDQVLRQ)XQG/LPLWHG'&&(QHUJ\/LPLWHG'&&)LQDQFH/LPLWHG'&&)DFLOLWLHV/LPLWHG '&&)LQDQFH 7UHDVXU\/LPLWHG'&&+HDOWKFDUH/LPLWHG'&&0DQDJHPHQW6HUYLFHV/LPLWHG'&&1RPLQHHV/LPLWHG'&&7HFKQRORJ\ /LPLWHG'&&7HFKQRORJ+ROGLQJV /LPLWHG'&&7UHDVXU\ΖUHODQG/LPLWHG'&&7UHDVXU\6ROXWLRQV/LPLWHG(PR2LO/LPLWHG(QHUJ\ 3URFXUHPHQW/LPLWHG(QHUJ\3URFXUHPHQWΖUHODQG/LPLWHG([HUWLVΖUHODQG/LPLWHG)DQQLQ/LPLWHG)ORJDVΖUHODQG/LPLWHG*UHDW*DV 3HWUROHXPΖUHODQG /LPLWHG+HOHFRQLD/LPLWHG6HU&RP+ROGLQJV /LPLWHGDQG6KDQQRQ(QYLURQPHQWDO+ROGLQJV/LPLWHG\$VDUHVXOW WKHVHFRPSDQLHVZLOOEHH[HPSWHGIURPWKHȴOLQJSURYLVLRQVRI6HFWLRQ&RPSDQLHV\$PHQGPHQW \$FW
| Group | 2015 £'000 |
2014 eȇ |
|---|---|---|
| &DSLWDOH[SHQGLWXUHRQSURSHUW\SODQWDQGHTXLSPHQWWKDWKDVEHHQFRQWUDFWHGIRUEXWKDVQRWEHHQ SURYLGHGIRULQWKHȴQDQFLDOVWDWHPHQWV |
9,613 | |
| &DSLWDOH[SHQGLWXUHRQSURSHUW\SODQWDQGHTXLSPHQWWKDWKDVEHHQDXWKRULVHGE\WKH'LUHFWRUVEXWKDV QRW\HWEHHQFRQWUDFWHGIRU |
132,821 | |
| 142,434 |
Operating leases
)XWXUHPLQLPXPUHQWDOVSD\DEOHXQGHUQRQFDQFHOODEOHRSHUDWLQJOHDVHVDW0DUFKDUHDVIROORZV
| 2015 £'000 |
2014 eȇ |
|
|---|---|---|
| :LWKLQRQH\HDU | 23,073 | |
| \$IWHURQH\HDUEXWQRWPRUHWKDQȴYH\HDUV | 60,129 | |
| 0RUHWKDQȴYH\HDUV | 80,929 | |
| 164,131 |
7KH*URXSOHDVHVDQXPEHURISURSHUWLHVXQGHURSHUDWLQJOHDVHV7KHOHDVHVW\SLFDOO\UXQIRUDSHULRGRIWR\HDUV5HQWVDUHJHQHUDOO\ UHYLHZHGHYHU\ȴYH\HDUV
'XULQJWKH\HDUHQGHG0DUFKePLOOLRQePLOOLRQ ZDVUHFRJQLVHGDVDQH[SHQVHLQWKHΖQFRPH6WDWHPHQWLQ respect of operating leases.
)XWXUHPLQLPXPOHDVHSD\PHQWVXQGHUȴQDQFHOHDVHVWRJHWKHUZLWKWKHSUHVHQWYDOXHRIWKHQHWPLQLPXPOHDVHSD\PHQWVDUHDVIROORZV
| 2015 | 2014 | |||
|---|---|---|---|---|
| Minimum payments £'000 |
Present value of payments £'000 |
0LQLPXP SD\PHQWV eȇ |
3UHVHQW YDOXHRI SD\PHQWV eȇ |
|
| :LWKLQRQH\HDU | 359 | 357 | ||
| \$IWHURQH\HDUEXWQRWPRUHWKDQȴYH\HDUV | 216 | 213 | ||
| 575 | 570 | |||
| /HVVDPRXQWVDOORFDWHGWRIXWXUHȴQDQFHFRVWV | (5) | – | – | |
| 3UHVHQWYDOXHRIPLQLPXPOHDVHSD\PHQWV | 570 | 570 |
\$NH\VWUDWHJ\RIWKH*URXSLVWRFUHDWHDQGVXVWDLQPDUNHWOHDGHUVKLSSRVLWLRQVWKURXJKEROWRQDFTXLVLWLRQVLQPDUNHWVLWFXUUHQWO\RSHUDWHV LQWRJHWKHUZLWKH[WHQGLQJWKH*URXSȇVIRRWSULQWLQWRQHZJHRJUDSKLFPDUNHWVΖQOLQHZLWKWKLVVWUDWHJ\WKHSULQFLSDODFTXLVLWLRQVFRPSOHWHG E\WKH*URXSGXULQJWKH\HDUWRJHWKHUZLWKSHUFHQWDJHVDFTXLUHGZHUHDVIROORZV
7KHFDUU\LQJDPRXQWVRIWKHDVVHWVDQGOLDELOLWLHVDFTXLUHGH[FOXGLQJQHWFDVKGHEWDFTXLUHG GHWHUPLQHGLQDFFRUGDQFHZLWKΖ)56EHIRUH FRPSOHWLRQRIWKHEXVLQHVVFRPELQDWLRQVWRJHWKHUZLWKWKHIDLUYDOXHDGMXVWPHQWVPDGHWRWKRVHFDUU\LQJYDOXHVZHUHDVIROORZV
| 2015 | 2015 | 2015 | 2015 | |
|---|---|---|---|---|
| £'000 Williams |
£'000 Qstar |
£'000 Others |
£'000 Total |
|
| Assets | ||||
| Non-current assets | ||||
| 3URSHUW\SODQWDQGHTXLSPHQWQRWH | 2,598 | 26,152 | 1,518 | 30,268 |
| ΖQWDQJLEOHDVVHWVȂRWKHULQWDQJLEOHDVVHWVQRWH | 11,827 | 6,983 | 5,103 | 23,913 |
| 'HIHUUHGLQFRPHWD[DVVHWV | 2 | – | – | 2 |
| Total non-current assets | 14,427 | 33,135 | 6,621 | 54,183 |
| Current assets | ||||
| ΖQYHQWRULHVQRWH | 2,536 | 5,603 | 12,739 | 20,878 |
| 7UDGHDQGRWKHUUHFHLYDEOHVQRWH | 6,816 | 27,815 | 14,507 | 49,138 |
| Total current assets | 9,352 | 33,418 | 27,246 | 70,016 |
| Liabilities | ||||
| Non-current liabilities | ||||
| 'HIHUUHGLQFRPHWD[OLDELOLWLHV | (2,365) | (4,879) | (784) | (8,028) |
| 3URYLVLRQVIRUOLDELOLWLHVDQGFKDUJHV | – | (10,829) | – | (10,829) |
| *RYHUQPHQWJUDQWV | (281) | – | – | (281) |
| Total non-current liabilities | (2,646) | (15,708) | (784) | (19,138) |
| Current liabilities | ||||
| 7UDGHDQGRWKHUSD\DEOHVQRWH | (8,686) | (35,520) | (12,628) | (56,834) |
| &XUUHQWLQFRPHWD[DVVHWOLDELOLW\ | 183 | – | (413) | (230) |
| Total current liabilities | (8,503) | (35,520) | (13,041) | (57,064) |
| ΖGHQWLȴDEOHQHWDVVHWVDFTXLUHG | 12,630 | 15,325 | 20,042 | 47,997 |
| ΖQWDQJLEOHDVVHWVȂJRRGZLOOQRWH | 31,819 | 23,370 | 12,526 | 67,715 |
| Total consideration (enterprise value) | 44,449 | 38,695 | 32,568 | 115,712 |
| 6DWLVȴHGE\ | ||||
| Cash | 47,926 | 36,402 | 17,410 | 101,738 |
| 'HEWDFTXLUHG | – | – | 9,246 | 9,246 |
| &DVKDQGFDVKHTXLYDOHQWVDFTXLUHG | (3,477) | – | (284) | (3,761) |
| 1HWFDVKRXWȵRZ | 44,449 | 36,402 | 26,372 | 107,223 |
| &RQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQ | – | 2,293 | 6,196 | 8,489 |
| Total consideration | 44,449 | 38,695 | 32,568 | 115,712 |
7KHDFTXLVLWLRQVRI:LOOLDPVDQG4VWDUKDYHEHHQGHHPHGWREHVXEVWDQWLDOWUDQVDFWLRQVDQGVHSDUDWHGLVFORVXUHRIWKHIDLUYDOXHVRIWKH LGHQWLȴDEOHDVVHWVDQGOLDELOLWLHVKDVWKHUHIRUHEHHQPDGH1RQHRIWKHUHPDLQLQJEXVLQHVVFRPELQDWLRQVFRPSOHWHGGXULQJWKHSHULRGZHUH FRQVLGHUHGVXɝFLHQWO\PDWHULDOWRZDUUDQWVHSDUDWHGLVFORVXUHRIWKHIDLUYDOXHVDWWULEXWDEOHWRWKRVHFRPELQDWLRQV7KHFDUU\LQJDPRXQWV RIWKHDVVHWVDQGOLDELOLWLHVDFTXLUHGGHWHUPLQHGLQDFFRUGDQFHZLWKΖ)56EHIRUHFRPSOHWLRQRIWKHFRPELQDWLRQWRJHWKHUZLWKWKH DGMXVWPHQWVPDGHWRWKRVHFDUU\LQJYDOXHVGLVFORVHGDERYHZHUHDVIROORZV
| Williams | Book value £'000 |
Fair value adjustments £'000 |
Fair value £'000 |
|---|---|---|---|
| 1RQFXUUHQWDVVHWVH[FOXGLQJJRRGZLOO | 2,600 | 11,827 | 14,427 |
| Current assets | 9,352 | – | 9,352 |
| Non-current liabilities | (281) | (2,365) | (2,646) |
| Current liabilities | (8,503) | – | (8,503) |
| ΖGHQWLȴDEOHQHWDVVHWVDFTXLUHG | 3,168 | 9,462 | 12,630 |
| *RRGZLOODULVLQJRQDFTXLVLWLRQ | 41,281 | (9,462) | 31,819 |
| 7RWDOFRQVLGHUDWLRQHQWHUSULVHYDOXH | 44,449 | – | 44,449 |
| Qstar | Book value £'000 |
Fair value adjustments £'000 |
Fair value £'000 |
|---|---|---|---|
| 1RQFXUUHQWDVVHWVH[FOXGLQJJRRGZLOO | 26,152 | 6,983 | 33,135 |
| Current assets | 33,418 | – | 33,418 |
| Non-current liabilities | (14,172) | (1,536) | (15,708) |
| Current liabilities | (35,520) | – | (35,520) |
| ΖGHQWLȴDEOHQHWDVVHWVDFTXLUHG | 9,878 | 5,447 | 15,325 |
| *RRGZLOODULVLQJRQDFTXLVLWLRQ | 28,817 | (5,447) | 23,370 |
| 7RWDOFRQVLGHUDWLRQHQWHUSULVHYDOXH | 38,695 | – | 38,695 |
| Others | Book value £'000 |
Fair value adjustments £'000 |
Fair value £'000 |
|---|---|---|---|
| 1RQFXUUHQWDVVHWVH[FOXGLQJJRRGZLOO | 1,518 | 5,103 | 6,621 |
| Current assets | 27,246 | – | 27,246 |
| Non-current liabilities | (303) | (481) | (784) |
| Current liabilities | (13,041) | – | (13,041) |
| ΖGHQWLȴDEOHQHWDVVHWVDFTXLUHG | 15,420 | 4,622 | 20,042 |
| *RRGZLOODULVLQJRQDFTXLVLWLRQ | 17,148 | (4,622) | 12,526 |
| 7RWDOFRQVLGHUDWLRQHQWHUSULVHYDOXH | 32,568 | – | 32,568 |
| Total | Book value £'000 |
Fair value adjustments £'000 |
Fair value £'000 |
|---|---|---|---|
| 1RQFXUUHQWDVVHWVH[FOXGLQJJRRGZLOO | 30,270 | 23,913 | 54,183 |
| Current assets | 70,016 | – | 70,016 |
| Non-current liabilities | (14,756) | (4,382) | (19,138) |
| Current liabilities | (57,064) | – | (57,064) |
| ΖGHQWLȴDEOHQHWDVVHWVDFTXLUHG | 28,466 | 19,531 | 47,997 |
| *RRGZLOODULVLQJRQDFTXLVLWLRQ | 87,246 | (19,531) | 67,715 |
| 7RWDOFRQVLGHUDWLRQHQWHUSULVHYDOXH | 115,712 | – | 115,712 |
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| 2015 | |
|---|---|
| £'000 | |
| Revenue | 397,257 |
| Cost of sales | (343, 176) |
| Gross profit | 54,081 |
| Operating costs | (38, 741) |
| Operating profit | 15,340 |
| Finance costs (net) | 8 |
| Profit before tax | 15,348 |
| Income tax expense | (2,684) |
| Profit for the financial year | 12,664 |
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2015
| £'000 | |
|---|---|
| Revenue | 10,658,071 |
| Profit for the financial year | 145,324 |
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| Group | 2015 £'000 |
Restated 2014 £'000 |
|---|---|---|
| Capital and reserves attributable to the owners of the Parent | 982.748 | 941,418 |
| Net (cash)/debt (note 31) | (29, 987) | 87,292 |
| Contingent acquisition consideration (note 34) | 43.384 | 53,323 |
| At 31 March | 996.145 | 1,082,033 |
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| Group | 2015 £'000 |
2014 eȇ |
|---|---|---|
| /HVVWKDQPRQWKRYHUGXH | 42,986 | |
| ȂPRQWKVRYHUGXH | 10,447 | |
| ȂPRQWKVRYHUGXH | 2,899 | |
| 2YHUPRQWKVRYHUGXH | 1,437 | |
| 57,769 |
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| Restated | ||
|---|---|---|
| 2015 | 2014 | |
| Group | £'000 | eȇ |
| At 1 April | 17,222 | |
| 3URYLVLRQIRULPSDLUPHQWUHFRJQLVHGLQWKH\HDU | 4,635 | |
| 6XEVHTXHQWUHFRYHU\RIDPRXQWVSUHYLRXVO\SURYLGHGIRU | (1,523) | |
| \$PRXQWVZULWWHQRGXULQJWKH\HDU | (3,929) | |
| \$ULVLQJRQDFTXLVLWLRQ | 45 | |
| Exchange | (1,069) | |
| Disposal of subsidiaries | (248) | – |
| 3URYLVLRQIRULPSDLUPHQWRIWUDGHUHFHLYDEOHVDWWULEXWDEOHWRDVVHWVKHOGIRUVDOH | (30) | – |
| \$W0DUFK | 15,103 |
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| Group As at 31 March 2015 |
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Between 2 and 5 years £'000 |
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Total £'000 |
|---|---|---|---|---|---|
| )LQDQFLDOOLDELOLWLHVȂFDVKRXWȵRZV | |||||
| 7UDGHDQGRWKHUSD\DEOHV | (1,312,136) | – | – | – | (1,312,136) |
| ΖQWHUHVWEHDULQJORDQVDQGERUURZLQJV | (149,196) | (95,150) | (267,058) | (875,415) | (1,386,819) |
| ΖQWHUHVWSD\PHQWVRQLQWHUHVWEHDULQJORDQVDQGERUURZLQJV | (61,480) | (56,590) | (146,062) | (138,989) | (403,121) |
| &RQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQ | (3,235) | (8,394) | (31,755) | – | (43,384) |
| &URVVFXUUHQF\VZDSVȂJURVVFDVKRXWȵRZV | (34,439) | (91,054) | (257,247) | (697,976) | (1,080,716) |
| 2WKHUGHULYDWLYHȴQDQFLDOLQVWUXPHQWV | (5,117) | – | – | – | (5,117) |
| (1,565,603) | (251,188) | (702,122) | (1,712,380) | (4,231,293) | |
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWVȂFDVKLQȵRZV | |||||
| ΖQWHUHVWUDWHVZDSVȂQHWFDVKLQȵRZV | 4,080 | 4,061 | 7,449 | 8,418 | 24,008 |
| &URVVFXUUHQF\VZDSVȂJURVVFDVKLQȵRZV | 66,573 | 129,713 | 372,261 | 864,604 | 1,433,151 |
| 70,653 | 133,774 | 379,710 | 873,022 | 1,457,159 | |
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| Company As at 31 March 2015 |
Less than 1 year £'000 |
Between 1 and 2 years £'000 |
Between 2 and 5 years £'000 |
Over 5 years £'000 |
Total £'000 |
|---|---|---|---|---|---|
| )LQDQFLDOOLDELOLWLHVȂFDVKRXWȵRZV | |||||
| 7UDGHDQGRWKHUSD\DEOHV | 164,890 | – | 14,128 | – | 179,018 |
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| )LQDQFLDOOLDELOLWLHVȂFDVKRXWȵRZV | |||||
| 7UDGHDQGRWKHUSD\DEOHV | – | – |
7KH&RPSDQ\KDVVXɝFLHQWFDVKUHVRXUFHVDQGOLTXLGDVVHWVWRHQDEOHLWWRPHHWLWVWUDGHDQGRWKHUSD\DEOHV
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Sensitivity of interest charges to interest rate movements
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7KHIDLUYDOXHVRIERUURZLQJVQRQHRIZKLFKDUHOLVWHG DQGGHULYDWLYHȴQDQFLDOLQVWUXPHQWVDUHPHDVXUHGE\GLVFRXQWLQJFDVKȵRZVDW SUHYDLOLQJLQWHUHVWDQGH[FKDQJHUDWHV7KHIDLUYDOXHVRIH[SHFWHGIXWXUHSD\PHQWVXQGHUFRQWLQJHQWFRQVLGHUDWLRQDUUDQJHPHQWVDUH GHWHUPLQHGE\DSSO\LQJDULVNDGMXVWHGGLVFRXQWUDWHWRWKHIXWXUHSD\PHQWVZKLFKDUHEDVHGRQIRUHFDVWHGRSHUDWLQJSURȴWVRIWKH DFTXLUHGHQWLW\RYHUWKHUHOHYDQWSHULRG7KHFDUU\LQJYDOXHRIQRQLQWHUHVWEHDULQJȴQDQFLDODVVHWVDQGȴQDQFLDOOLDELOLWLHVDQGFDVKDQG FDVKHTXLYDOHQWVDSSUR[LPDWHVWKHLUIDLUYDOXHVODUJHO\GXHWRWKHLUVKRUWWHUPPDWXULWLHV7KHIROORZLQJLVDFRPSDULVRQE\FDWHJRU\RIERRN YDOXHVDQGIDLUYDOXHVRIWKH*URXSȇVDQG&RPSDQ\ȇVȴQDQFLDODVVHWVDQGȴQDQFLDOOLDELOLWLHV
| 2015 | 2014 (restated) | |||
|---|---|---|---|---|
| Group | Book value £'000 |
Fair value £'000 |
Book value £'000 |
Fair value £'000 |
| Financial assets | ||||
| Derivative financial instruments | 238,545 | 238,545 | 57,461 | 57,461 |
| Trade and other receivables | 847,274 | 847.274 | 957,821 | 957,821 |
| Cash and cash equivalents | 1,260,942 | 1,260,942 | 962,139 | 962,139 |
| 2,346,761 | 2,346,761 | 1,977,421 | 1,977,421 | |
| Financial liabilities | ||||
| Borrowings | 1,463,858 | 1,439,781 | 1,042,557 | 1,068,642 |
| Derivative financial instruments | 7,994 | 7,994 | 64,335 | 64,335 |
| Contingent acquisition consideration | 43,384 | 43,384 | 53,323 | 53,323 |
| Trade and other payables | 1,312,136 | 1,312,136 | 1,489,054 | 1,489,054 |
| 2,827,372 | 2,803,295 | 2,649,269 | 2,675,354 |
| 2015 | 2014 | |||
|---|---|---|---|---|
| Company | Book value £'000 |
Fair value £'000 |
%RRNYDOXH eȇ |
)DLUYDOXH eȇ |
| Financial assets | ||||
| 7UDGHDQGRWKHUUHFHLYDEOHV | 258,033 | 258,033 | ||
| &DVKDQGFDVKHTXLYDOHQWV | 617 | 617 | ||
| 258,650 | 258,650 | |||
| Financial liabilities | ||||
| 7UDGHDQGRWKHUSD\DEOHV | 179,018 | 179,018 | ||
| 179,018 | 179,018 | |||
7KH*URXSKDVDGRSWHGWKHIROORZLQJIDLUYDOXHPHDVXUHPHQWKLHUDUFK\LQUHODWLRQWRLWVȴQDQFLDODVVHWVDQGȴQDQFLDOOLDELOLWLHVWKDWDUH FDUULHGLQWKH%DODQFH6KHHWDWIDLUYDOXHDVDWWKH\HDUHQG
– /HYHOTXRWHGSULFHVXQDGMXVWHG LQDFWLYHPDUNHWVIRULGHQWLFDODVVHWVRUOLDELOLWLHV
– /HYHOLQSXWVRWKHUWKDQTXRWHGSULFHVLQFOXGHGZLWKLQOHYHOWKDWDUHREVHUYDEOHIRUWKHDVVHWRUOLDELOLW\HLWKHUGLUHFWO\DVSULFHV RU LQGLUHFWO\GHULYHGIURPSULFHV DQG
– /HYHOLQSXWVIRUWKHDVVHWRUOLDELOLW\WKDWDUHQRWEDVHGRQREVHUYDEOHPDUNHWGDWDXQREVHUYDEOHLQSXWV
| Group Fair value measurement as at 31 March 2015 |
Level 1 £'000 |
Level 2 £'000 |
Level 3 £'000 |
Total £'000 |
|---|---|---|---|---|
| Financial assets | ||||
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWVQRWH | – | 238,545 | – | 238,545 |
| – | 238,545 | – | 238,545 | |
| Financial liabilities | ||||
| &RQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQ | – | – | 43,384 | 43,384 |
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWVQRWH | – | 7,994 | – | 7,994 |
| – | 7,994 | 43,384 | 51,378 | |
| Group )DLUYDOXHPHDVXUHPHQWDVDW0DUFK |
/HYHO eȇ |
/HYHO eȇ |
/HYHO eȇ |
Total eȇ |
| )LQDQFLDODVVHWV | ||||
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV | – | – | ||
| – | – | |||
| )LQDQFLDOOLDELOLWLHV | ||||
| &RQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQ | – | – | ||
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV | – | – | ||
| – |
7KHVSHFLȴFYDOXDWLRQWHFKQLTXHVXVHGWRYDOXHȴQDQFLDOLQVWUXPHQWVWKDWDUHFDUULHGDWIDLUYDOXHXVLQJOHYHOYDOXDWLRQWHFKQLTXHVDUH
– 7KHIDLUYDOXHRILQWHUHVWUDWHFXUUHQF\DQGFURVVFXUUHQF\LQWHUHVWUDWHVZDSVLVFDOFXODWHGDVWKHSUHVHQWYDOXHRIWKHHVWLPDWHGIXWXUH FDVKȵRZVEDVHGRQREVHUYDEOH\LHOGFXUYHV
– 7KHIDLUYDOXHRIIRUZDUGIRUHLJQH[FKDQJHFRQWUDFWVLVGHWHUPLQHGXVLQJTXRWHGIRUZDUGH[FKDQJHUDWHVDWWKHEDODQFHVKHHWGDWHZLWK WKHUHVXOWLQJYDOXHGLVFRXQWHGEDFNWRSUHVHQWYDOXH
– 7KHIDLUYDOXHRIIRUZDUGFRPPRGLW\FRQWUDFWVLVGHWHUPLQHGXVLQJTXRWHGIRUZDUGFRPPRGLW\SULFHVDWWKHEDODQFHVKHHWGDWHZLWKWKH UHVXOWLQJYDOXHGLVFRXQWHGEDFNWRSUHVHQWYDOXH
Level 3 fair value measurement:
7KHVSHFLȴFYDOXDWLRQWHFKQLTXHVXVHGWRYDOXHFRQWLQJHQWFRQVLGHUDWLRQWKDWLVFDUULHGDWIDLUYDOXHXVLQJOHYHOYDOXDWLRQWHFKQLTXHVDUH – 7KHH[SHFWHGIXWXUHSD\PHQWVDUHGHWHUPLQHGE\IRUHFDVWLQJWKHDFTXLUHHȇVUHOHYDQWEDVLVIRUWKHFRQWLQJHQWFRQVLGHUDWLRQ
7KHHVWLPDWHGIDLUYDOXHRIFRQWLQJHQWFRQVLGHUDWLRQZRXOGLQFUHDVHGHFUHDVH LI(%Ζ7'\$(%Ζ7JURZWKZDVKLJKHUORZHU RULIWKHULVNDGMXVWHG GLVFRXQWUDWHZDVORZHUKLJKHU
\$VDW0DUFKDQG0DUFKWKH&RPSDQ\KDGQRȴQDQFLDODVVHWVRUȴQDQFLDOOLDELOLWLHVZKLFKZHUHFDUULHGDWIDLUYDOXH
(i) Financial assets
7KHIROORZLQJȴQDQFLDODVVHWVDUHVXEMHFWWRRVHWWLQJHQIRUFHDEOHPDVWHUQHWWLQJDUUDQJHPHQWVRUVLPLODUDJUHHPHQWV
| Group As at 31 March 2015 |
Gross amounts | Net amounts of | Related amounts not set RLQWKH%DODQFH6KHHW |
||||
|---|---|---|---|---|---|---|---|
| Gross amounts of recognised ȴQDQFLDODVVHWV £'000 |
of recognised ȴQDQFLDOOLDELOLWLHV VHWRLQWKH Balance Sheet £'000 |
ȴQDQFLDODVVHWV presented in the Balance Sheet £'000 |
Financial liabilities £'000 |
Cash collateral received £'000 |
Net amount £'000 |
||
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV | 235,760 | – | 235,760 | (92) | – | 235,668 | |
| &DVKDQGFDVKHTXLYDOHQWV | 199,362 | – | 199,362 | (85,227) | – | 114,135 | |
| 435,122 | – | 435,122 | (85,319) | – | 349,803 |
| *URVVDPRXQWV of recognised |
1HWDPRXQWVRI | 5HODWHGDPRXQWVQRWVHW RLQWKH%DODQFH6KHHW |
|||||
|---|---|---|---|---|---|---|---|
| Group \$VDW0DUFK |
*URVVDPRXQWV of recognised ȴQDQFLDODVVHWV eȇ |
ȴQDQFLDOOLDELOLWLHV VHWRLQWKH %DODQFH6KHHW eȇ |
ȴQDQFLDODVVHWV presented in the %DODQFH6KHHW eȇ |
)LQDQFLDO liabilities eȇ |
Cash collateral UHFHLYHG eȇ |
1HWDPRXQW eȇ |
|
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV | – | – | |||||
| &DVKDQGFDVKHTXLYDOHQWV | – | – | |||||
| – | – |
7KHIROORZLQJȴQDQFLDOOLDELOLWLHVDUHVXEMHFWWRRVHWWLQJHQIRUFHDEOHPDVWHUQHWWLQJDUUDQJHPHQWVRUVLPLODUDJUHHPHQWV
| Gross amounts | Related amounts not set RLQWKH%DODQFH6KHHW |
||||
|---|---|---|---|---|---|
| Gross amounts of recognised ȴQDQFLDOOLDELOLWLHV £'000 |
ȴQDQFLDODVVHWV VHWRLQWKH Balance Sheet £'000 |
ȴQDQFLDOOLDELOLWLHV presented in the Balance Sheet £'000 |
Financial assets £'000 |
Cash collateral provided £'000 |
Net amount £'000 |
| 92 | – | 92 | (92) | – | – |
| 85,227 | – | 85,227 | (85,227) | – | – |
| 85,319 | – | 85,319 | (85,319) | – | – |
| of recognised | Net amounts of |
| Group \$VDW0DUFK |
*URVVDPRXQWV of recognised |
1HWDPRXQWVRI | 5HODWHGDPRXQWVQRWVHW RLQWKH%DODQFH6KHHW |
||||
|---|---|---|---|---|---|---|---|
| *URVVDPRXQWV ȴQDQFLDODVVHWV of recognised VHWRLQWKH ȴQDQFLDOOLDELOLWLHV %DODQFH6KHHW eȇ eȇ |
ȴQDQFLDOOLDELOLWLHV presented in the %DODQFH6KHHW eȇ |
)LQDQFLDO assets eȇ |
Cash collateral SURYLGHG eȇ |
1HWDPRXQW eȇ |
|||
| 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV | – | – | |||||
| %DQNERUURZLQJV | – | – | – | ||||
| – | – |
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6DOHVWRDQGSXUFKDVHVIURPWRJHWKHUZLWKRXWVWDQGLQJSD\DEOHVDQGUHFHLYDEOHVWRDQGIURPVXEVLGLDULHVDUHHOLPLQDWHGLQWKHSUHSDUDWLRQ RIWKHFRQVROLGDWHGȴQDQFLDOVWDWHPHQWV
)RUWKHSXUSRVHVRIWKHGLVFORVXUHUHTXLUHPHQWVXQGHUΖ\$6WKHWHUPȆNH\PDQDJHPHQWSHUVRQQHOȇLHWKRVHSHUVRQVKDYLQJDXWKRULW\ DQGUHVSRQVLELOLW\IRUSODQQLQJGLUHFWLQJDQGFRQWUROOLQJWKHDFWLYLWLHVRIWKH&RPSDQ\ FRPSULVHVWKH%RDUGRI'LUHFWRUVZKLFKPDQDJHV WKHEXVLQHVVDQGDDLUVRIWKH&RPSDQ.H\PDQDJHPHQWUHPXQHUDWLRQDPRXQWHGWR
| 2015 £'000 |
2014 eȇ |
|
|---|---|---|
| 6KRUWWHUPEHQHȴWV | 2,224 | |
| 3RVWHPSOR\PHQWEHQHȴWV | 720 | |
| 6KDUHEDVHGSD\PHQWFDOFXODWHGLQDFFRUGDQFHZLWKWKHSULQFLSOHVGLVFORVHGLQQRWH | 791 | 404 |
| \$W0DUFK | 3,735 |
7KH&RPSDQ\ȇVΖQFRPH6WDWHPHQWLQFOXGHVGLYLGHQGVRIePLOOLRQIURPLWVVXEVLGLDULHV'&&0DQDJHPHQW6HUYLFHV/LPLWHGe PLOOLRQ '&&)RRG %HYHUDJH/LPLWHGePLOOLRQ 7HFKQRSKDUP/LPLWHGePLOOLRQ DQG'&&%XVLQHVV([SDQVLRQ)XQG/LPLWHG ePLOOLRQ 'HWDLOVRIORDQEDODQFHVWRIURPVXEVLGLDULHVDUHSURYLGHGLQWKH&RPSDQ\%DODQFH6KHHWRQSDJHLQQRWHȆ7UDGHDQG 2WKHU5HFHLYDEOHVȇDQGLQQRWHȆ7UDGHDQG2WKHU3D\DEOHVȇ
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7KHFRQVLGHUDWLRQIRUWKHVKDUHFDSLWDORI%XWDJD]ZRXOGXOWLPDWHO\EHGHWHUPLQHGRQWKHEDVLVRIDFRPSOHWLRQEDODQFHVKHHW%DVHGRQ %XWDJD]ȇVDXGLWHGEDODQFHVKHHWDW'HFHPEHUWKHFRQVLGHUDWLRQDIWHUDGMXVWLQJIRUQHWGHEWOLNHLWHPVZRXOGEHȜPLOOLRQ ePLOOLRQ SD\DEOHLQFDVKDWFRPSOHWLRQ%DVHGRQWKH'HFHPEHUEDODQFHVKHHWWKHHVWLPDWHGFDUU\LQJDPRXQWVRIWKHDVVHWV DQGOLDELOLWLHVRI%XWDJD]GHWHUPLQHGLQDFFRUGDQFHZLWKΖ)56EHIRUHFRPSOHWLRQRIWKHFRPELQDWLRQDUHDVIROORZV
| Butagaz | Book value £'000 |
|---|---|
| 1RQFXUUHQWDVVHWVH[FOXGLQJJRRGZLOO | 306,087 |
| Current assets | 186,633 |
| Non-current liabilities | (237,018) |
| Current liabilities | (115,581) |
| ΖGHQWLȴDEOHQHWDVVHWVDFTXLUHG | 140,121 |
| *RRGZLOODULVLQJRQDFTXLVLWLRQ | 153,709 |
| 7RWDOFRQVLGHUDWLRQHQWHUSULVHYDOXH | 293,830 |
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ΖQ0D\'&&7HFKQRORJ\DFTXLUHG&RPSXWHUV8QOLPLWHGȆ&8ȇ IRUDQLQLWLDOHQWHUSULVHYDOXHRIePLOOLRQ&8LVDFRQVXPHU WHFKQRORJ\GLVWULEXWRURSHUDWLQJSULPDULO\LQWKH8.EXWDOVRZLWKRSHUDWLRQVLQ)UDQFHDQG6SDLQ7KHLQLWLDODVVLJQPHQWRIIDLUYDOXHVWR LGHQWLȴDEOHQHWDVVHWVDFTXLUHGKDVEHHQSHUIRUPHGRQDSURYLVLRQDOEDVLVJLYHQWKHWLPLQJRIFORVXUHRIWKHWUDQVDFWLRQ7KHFDUU\LQJ DPRXQWVRIWKHDVVHWVDQGOLDELOLWLHVDFTXLUHGGHWHUPLQHGLQDFFRUGDQFHZLWKΖ)56EHIRUHFRPSOHWLRQRIWKHFRPELQDWLRQWRJHWKHUZLWK WKHDGMXVWPHQWVPDGHWRWKRVHFDUU\LQJYDOXHVZHUHDVIROORZV
| Book value £'000 |
Fair value adjustments £'000 |
Fair value £'000 |
|
|---|---|---|---|
| 1RQFXUUHQWDVVHWVH[FOXGLQJJRRGZLOO | 869 | 2,153 | 3,022 |
| Current assets | 29,628 | – | 29,628 |
| Non-current liabilities | – | (431) | (431) |
| Current liabilities | (14,481) | – | (14,481) |
| ΖGHQWLȴDEOHQHWDVVHWVDFTXLUHG | 16,016 | 1,722 | 17,738 |
| *RRGZLOODULVLQJRQDFTXLVLWLRQ | 7,984 | (1,722) | 6,262 |
| 7RWDOFRQVLGHUDWLRQHQWHUSULVHYDOXH | 24,000 | – | 24,000 |
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| Company name & address | Principal activity | Contact details |
|---|---|---|
| DCC Energy Limited DCC House, Leopardstown Road, Foxrock, Dublin 18 Ireland |
Holding and divisional management company |
Tel: +353 1 2799 400 Fax: +353 1 2831 017 Email: [email protected] www.dcc.ie |
| Oil | ||
| Certas Energy UK Limited 302 Bridgewater Place, Birchwood Park, Warrington WA3 6XG, England |
Procurement, sales, marketing and distribution of petroleum and lubricant products |
Tel: +44 1925 858 500 Fax: +44 1925 858 501 Email: [email protected] www.certasenergy.co.uk |
| Emo Oil Limited Clonminam Industrial Estate, Portlaoise, Co. Laois, Ireland |
Procurement, sales, marketing and distribution of petroleum products |
Tel: +353 578 674 700 Fax: +353 578 674 775 Email: [email protected] www.emo.ie |
| DCC Energy Limited Airport Road West, Sydenham, Belfast BT3 9ED, Northern Ireland |
Procurement, sales, marketing and distribution of petroleum products |
Tel: +44 28 9045 6789 Fax: +44 28 9045 7371 Email: [email protected] www.emooil.com |
| DCC Energi Danmark A/S Naerum Hovedgade 8, 2850 Naerum, Denmark |
Procurement, sales, marketing and distribution of petroleum products and natural gas |
Tel: +45 7010 2010 Fax: +45 4558 0190 Email: [email protected] www.dccenergi.dk |
| Energie Direct MineralölhandelsgesmbH Alte Poststraße 400, A-8055 Graz, Austria |
Procurement, sales, marketing and distribution of petroleum products |
Tel: +43 316 210 Fax: +43 316 210 2110 Email: [email protected] www.energiedirect.at |
| Swea Energi AB Storgatan 35, 434 32 Kungsbacka, Sweden |
Procurement, sales, marketing and distribution of petroleum products |
Tel: +46 300 687000 Fax: +46 300 687050 Email: [email protected] www.sweaenergi.se |
| Qstar Försäljning AB Spårgatan 5, Box 633, 601 14 Norrköping, Sweden |
Procurement, sales and marketing of petroleum products |
Tel: +46 11 280 000 Fax: +46 11 280 029 Email: [email protected] www.qstar.se |
| Fuel Card Services Limited Alexandra House, Lawnswood Business Park, Redvers Close, Leeds LS16 6QY, England |
Sale and administration of petroleum products through the use of fuel cards |
Tel: +44 113 384 6264 Fax: +44 844 870 9827 Email: [email protected] www.fuelcardservices.com |
| LPG | ||
| Flogas Britain Limited 81 Rayns Way, Syston, Leicester LE7 1PF, England |
Procurement, sales, marketing and GLVWULEXWLRQRIOLTXHȴHGSHWUROHXPJDV |
Tel: +44 116 2649 000 Fax: +44 116 2649 001 (PDLOHQTXLULHV#ȵRJDVFRXN ZZZȵRJDVFRXN |
| Flogas Ireland Limited Knockbrack House, Matthews Lane, Donore Road, Drogheda, Co. Louth, Ireland |
Procurement, sales, marketing and GLVWULEXWLRQRIOLTXHȴHGSHWUROHXP gas and natural gas |
Tel: +353 41 9831 041 Fax: +353 41 9834 652 (PDLOLQIR#ȵRJDVLH ZZZȵRJDVLH |
\$IXOOOLVWRIVXEVLGLDULHVDQGDVVRFLDWHVZLOOEHDQQH[HGWRWKH\$QQXDO5HWXUQRIWKH&RPSDQ\WREHȴOHGZLWKWKHΖULVK5HJLVWUDURI&RPSDQLHV
| Company name & address | Principal activity | Contact details |
|---|---|---|
| Benegas BV Zuiderzeestraatweg 1, 3882NC, Putten, The Netherlands |
Procurement, sales, marketing and GLVWULEXWLRQRIOLTXHȴHGSHWUROHXPJDV |
Tel: +31 3417 23300 Fax: +31 3413 60216 Email: [email protected] www.benegas.nl |
| Flogas Sverige AB Brännkyrkagatan 63, 11822 Stockholm, Sweden |
Procurement, sales, marketing and GLVWULEXWLRQRIOLTXHȴHGSHWUROHXPJDV |
Tel: +46 08 6750080 (PDLOLQIR#ȵRJDVVH ZZZȵRJDVVH |
| Flogas Norge AS Nydalsveien 153, 3 etg, 0484 Oslo, Norway |
Procurement, sales, marketing and GLVWULEXWLRQRIOLTXHȴHGSHWUROHXPJDV |
Tel: +47 90248000 (PDLOLQIR#ȵRJDVQR ZZZȵRJDVQR |
| DCC Technology | ||
|---|---|---|
| Company name & address | Principal activity | Contact details |
| DCC Technology Limited DCC House, Leopardstown Road, Foxrock, Dublin 18 Ireland |
Holding and divisional management company |
Tel: +353 1 2799 400 Fax: +353 1 2831 017 Email: [email protected] www.dcc.ie |
| Exertis (UK) Ltd Shorten Brook Way, Altham Business Park, Altham, Accrington, Lancashire BB5 5YJ, England |
Sales, marketing and distribution of technology products |
Tel: +44 1282 776 776 Fax: +44 1282 770 001 Email: [email protected] www.exertis.co.uk |
| Exertis Ireland Limited M50 Business Park, Ballymount Road Upper, Dublin 12, Ireland |
Sales, marketing and distribution of technology products |
Tel: +353 1 4087 171 Fax: +353 1 4193 111 Email: [email protected] www.exertis.ie |
| Exertis Supply Chain Services Limited M50 Business Park, Ballymount Road Upper, Dublin 12, Ireland |
Provision of supply chain management and outsourced procurement services |
Tel: +353 1 4056 500 Fax: +353 1 4056 555 Email: [email protected] www.exertissupplychain.com |
| Exertis Banque Magnetique SAS 3DULV1RUG3DUFGHV5HȵHWV 99 Avenue de la Pyramide, 95700, Roissy en France, France |
Sales, marketing and distribution of technology peripherals and accessories |
Tel: +33 1 49 90 93 93 Fax: +33 1 49 90 94 94 Email: [email protected] www.exertisbanquemagnetique.fr |
| Exertis Comtrade SAS 300 rue du Président Salvador Allende, 92700 Colombes, France |
Sales, marketing and distribution of technology peripherals and accessories |
Tel: +33 1 56 47 04 70 Fax: +33 1 56 470 471 Email: [email protected] www.exertiscomtrade.fr |
| Exertis CapTech AB Ekonomivagen 11 436 33 Askim Sweden |
Sales, marketing and distribution of technology products |
Tel: +46 31 450400 Fax: +46 31 450401 Email: [email protected] www.exertis.se |
| Company name & address | Principal activity | Contact details |
|---|---|---|
| DCC Healthcare Limited DCC House, Leopardstown Road, Foxrock, Dublin 18 Ireland |
Holding and divisional management company |
Tel: +353 1 2799 400 Fax: +353 1 2831 017 Email: [email protected] www.dcc.ie |
| DCC Vital | ||
| DCC Vital Limited Fannin House, South County Business Park, Leopardstown, Dublin 18, Ireland |
Holding company for the operations of the DCC Vital group of companies |
Tel: +353 1 2907 000 Fax: +353 1 2954 777 Email: [email protected] www.dccvital.com |
| Fannin Limited Fannin House, South County Business Park, Leopardstown, Dublin 18, Ireland |
Sales, marketing, distribution and other services to healthcare providers and medical and pharma brand owners/ manufacturers |
Tel: +353 1 2907 000 Fax: +353 1 2954 777 Email: [email protected] www.fannin.eu |
| Fannin (UK) Limited 42-46 Booth Drive, Park Farm South, Wellingborough, Northamptonshire, NN8 6GT, England |
Sales, marketing, distribution and other services to healthcare providers and medical and pharma brand owners/ manufacturers |
Tel: +44 1530 514 566 Fax: +44 1635 550 050 Email: [email protected] www.fannin.eu |
| Kent Pharmaceuticals Limited Joshna House, Crowbridge Road, Orbital Park, Ashford, Kent TN24 0GR, England |
Sales marketing and distribution of a broad range of pharmaceuticals to hospital and community pharmacies in Britain |
Tel: +44 845 437 5565 Fax: +44 845 437 5567 Email: [email protected] www.kentpharm.co.uk |
| Athlone Laboratories Limited Ballymurray, Co. Roscommon, Ireland |
Manufacture and supply of oral beta – lactam antibiotics for the British, Irish and international markets |
Tel: +353 9066 61109 Fax: +353 9066 61921 www.athlone-laboratories.com |
| Williams Medical Services Ltd Craiglas House The Maerdy Industrial Estate Rhymney, Gwent, NP22 5PY, Wales |
Sales marketing and distribution of a broad range of medical supplies and services to UK healthcare market, primarily GPs and primary care organisations |
Tel: +44 (0) 1685 844739 Fax: +44 (0) 1685 844725 Email: [email protected] www.wms.co.uk |
| Squadron Medical Limited Greaves Close, 0DUNKDP9DOH&KHVWHUȴHOG Derbyshire, S44 5FB, England |
Provision of value-added distribution services to healthcare providers and brand owners/manufacturers |
Tel: +44 1246 822 822 Fax: +44 1246 820 410 Email: [email protected] www.squadronmedical.co.uk |
| The TPS Healthcare Group Limited 27-35 Napier Place, Wardpark, North Cumbernauld, Glasgow G68 0LL, Scotland |
Provision of value-added distribution services to healthcare providers and brand owners/manufacturers |
Tel: +44 1236 739 668 Fax: +44 1236 738 376 Email: [email protected] www.tpshealthcare.com |
| Health & Beauty Solutions | ||
| DCC Health & Beauty Solutions 9-12 Hardwick Road, Astmoor Industrial Estate, Runcorn, Cheshire WA7 1PH, England |
Outsourced solutions for the health and beauty industry |
Tel: +44 1928 573 734 Fax: +44 1928 580 694 Email: [email protected] www.dcchealthandbeauty.com |
| Thompson & Capper Limited 9-12 Hardwick Road, Astmoor Industrial Estate, Runcorn, Cheshire WA7 1PH, England |
Development, contract manufacture and packing of tablet and hard gel capsule nutraceuticals |
Tel: +44 1928 573 734 Fax: +44 1928 580 694 Email: [email protected] www.thompsonandcapper.com |
| Company name & address | Principal activity | Contact details |
|---|---|---|
| EuroCaps Limited Crown Business Park, Dukestown, Tredegar, Gwent NP22 4EF, Wales |
Development and contract manufacture of soft gel capsule nutraceuticals |
Tel: +44 1495 308 900 Fax: +44 1495 308 990 Email: [email protected] www.eurocaps.co.uk |
| Laleham Healthcare Limited Sycamore Park, Mill Lane, Alton, Hampshire GU34 2PR, England |
Development, contract manufacture and packing of liquids and creams for the beauty and consumer healthcare sectors |
Tel: +44 1420 566 500 Fax: +44 1420 566 566 Email: [email protected] www.laleham.com |
| Vitamex Manufacturing AB Box 715, SE-601 16 Norrköping, Sweden |
Development, contract manufacture and packing of tablet and hard gel capsule nutraceuticals |
Tel: +46 11 23 00 00 Fax: +46 11 18 79 45 Email: [email protected] www.vitamex.se |
| Company name & address | Principal activity | Contact details |
|---|---|---|
| DCC Environmental Limited DCC House, Leopardstown Road, Foxrock, Dublin 18 Ireland |
Holding and divisional management company |
Tel: +353 1 2799 400 Fax: +353 1 2831 017 Email: [email protected] www.dcc.ie |
| William Tracey Limited 49 Burnbrae Road, Linwood Industrial Estate, Linwood, Renfrewshire, PA3 3BD, Scotland |
Recycling and waste management | Tel: +44 1505 321 000 Fax: +44 1505 335 555 Email: [email protected] www.williamtraceygroup.com |
| Wastecycle Limited Enviro Building, Private Road No. 4, Colwick Industrial Estate, Nottingham NG4 2JT, England |
Recycling and waste management | Tel: +44 115 9403 111 Fax: +44 115 940 4141 Email: [email protected] www.wastecycle.co.uk |
| Oakwood Fuels Limited Brailwood Road, Bilsthorpe, Newark Nottinghamshire, NG22 8UA, England |
Specialist waste treatment/management services |
Tel: +44 1623 871 964 Fax: +44 1623 871 905 Email: [email protected] www.oakwoodfuels.co.uk |
| Enva Ireland Limited Clonminam Industrial Estate, Portlaoise, Co. Laois, Ireland |
Specialist waste treatment/management services |
Tel: +353 578 678 600 Fax: +353 578 678 699 Email: [email protected] www.enva.com |
| Joint Venture | |||
|---|---|---|---|
| Company name & address | Principal activity | Contact details | |
| KSG* McKee Avenue, Finglas, Dublin 11, Ireland |
Restaurant and hospitality service provider |
Tel: +353 1 814 0600 Fax: +353 1 814 0601 Email: [email protected] www.ksg.ie |
*50% owned joint venture
| Share Price Data | 2015 £ |
2014 £ |
|---|---|---|
| Share price at 18 May | 43.90 | |
| Market capitalisation at 18 May | 3,688m | 2,604m |
| Share price at 31 March | 40.23 | |
| Market capitalisation at 31 March | 3,380m | 2,734m |
| 6KDUHSULFHPRYHPHQWGXULQJWKH\HDU Ȃ+LJK – Low |
41.96 30.33 |
| Geographic division1 | Number of shares2 |
% of shares |
|---|---|---|
| UK | 26,479,877 | 31.5 |
| North America | 25,870,719 | 30.8 |
| Europe/Asia | 6,502,765 | 7.7 |
| Ireland | 4,591,465 | 5.5 |
| Retail3 | 20,573,308 | 24.5 |
| Total | 84,018,134 | 100.0 |
| Range of shares held | Number of accounts |
% of accounts |
Number of shares2 |
% of shares |
|---|---|---|---|---|
| Over 250,000 | 65 | 2.14 | 64,067,516 | 76.2 |
| 100,001 – 250,000 | 58 | 1.91 | 9,247,693 | 11.0 |
| 10,000 – 100,000 | 230 | 7.59 | 7,780,591 | 9.3 |
| Less than 10,000 | 2,679 | 88.36 | 2,922,334 | 3.5 |
| Total | 3,032 | 100.0 | 84,018,134 | 100.0 |
Notes:
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2 Excludes 4,211,270 shares held as Treasury Shares
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| Final results announced for 2015 | 0D\ |
|---|---|
| ([GLYLGHQGGDWHIRUWKHȴQDOGLYLGHQG | 28 May 2015 |
| 5HFRUGGDWHIRUWKHȴQDOGLYLGHQG | 0D\ |
| ΖQWHULP0DQDJHPHQW6WDWHPHQW | 17 July 2015 |
| \$QQXDO*HQHUDO0HHWLQJ | 17 July 2015 |
| 3URSRVHGSD\PHQWGDWHIRUȴQDOGLYLGHQG | 23 July 2015 |
| ΖQWHULPUHVXOWVWREHDQQRXQFHG | 10 November 2015 |
| Proposed payment date for the interim dividend | December 2015 |
| ΖQWHULP0DQDJHPHQW6WDWHPHQW | February 2016 |
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| Group Income Statement Year ended 31 March |
Restated 2011 £'m |
Restated 2012 £'m |
Restated 2013 £'m |
Restated 2014 £'m |
2015 £'m |
|---|---|---|---|---|---|
| Revenue | |||||
| 2SHUDWLQJSURȴWEHIRUHH[FHSWLRQDOLWHPVDQGDPRUWLVDWLRQRILQWDQJLEOHDVVHWV | |||||
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| 2SHUDWLQJSURȴW | |||||
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| ΖQFRPHWD[H[SHQVH | |||||
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| 'LYLGHQGFRYHUWLPHV | |||||
| ΖQWHUHVWFRYHUWLPHV | |||||
| * excludes exceptional items | |||||
| Group Balance Sheet As at 31 March |
2011 £'m |
2012 £'m |
2013 £'m |
2014 £'m |
2015 £'m |
| Non-current and current assets | |||||
| Property, plant and equipment | |||||
| ΖQWDQJLEOHDVVHWV | |||||
| Equity accounted investments | |||||
| &DVKGHULYDWLYHV | |||||
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| Total assets | |||||
| Equity | |||||
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| Total liabilities | |||||
| Total equity and liabilities | |||||
| 1HWGHEW FDVKLQFOXGHGDERYH | |||||
| Group Cash Flow Year ended 31 March |
2011 £'m |
2012 £'m |
2013 £'m |
2014 £'m |
2015 £'m |
| 2SHUDWLQJFDVKȵRZ | |||||
| Capital expenditure | |||||
| Acquisitions | |||||
| Other Information | 2011 | 2012 | 2013 | 2014 | 2015 |
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| Company Secretary | 73 | *RLQJ&RQFHUQ | ||
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| ΖQFRPH7D[ | Remuneration Policy Report | 84 | ||||
| ΖQFRPH7D[([SHQVH | Remuneration Report | 82 | ||||
| ΖQGHSHQGHQFHRI1RQ([HFXWLYH'LUHFWRUV | Report of the Directors | 105 | ||||
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Tel: + 353 1 279 9400 Fax: + 353 1 283 1017 Email: [email protected]
www.dcc.ie
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