DCC plc

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&

 
 
 
 
DCC IS A VALUE ADDED
SALES & MARKETING AND
SUPPORT SERVICES GROUP.

DCC HAS DELIVERED COMPOUND ANNUAL
GROWTH OF 17.3% IN ADJUSTED EARNINGS
PER SHARE OVER THE PAST 10 YEARS.

% change Reported

% change Constant Currency 

-2.0%

+2.6%

+8.8%

+14.1%

+9.8%

+15.1%

+15.0%

+54.3%

Sales
(continuing activities)
€2.2 billion

Operating profit
(continuing activities)
€120.9 million

Earnings 
(adjusted earnings per share)
121.89 cent

Dividends 
(dividend per share)
32.4 cent

Cash flow
(operating)
€151.9 million

Return on capital employed 
- excluding goodwill
39.8% (42.2%: 2003)

- including goodwill
21.3% (22.0%: 2003)

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B

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GROUP PBIT %

DESCRIPTION

GROWTH RECORD

KEY STATS

GROWTH FOCUS

STRONG BRANDS

Y
G
R
E
N
E

T
I

N
O
I
T
U
B

I

R
T
S
I
D

E
R
A
C
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B

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I

26%

11%

9%

4%

)
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M

I

N
A
H
C
Y
L
P
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12%

I

G
N
D
L
I
U
B
E
M
O
H

(
R
E
H
T
O

38%

DCC MARKETS AND SELLS
liquefied petroleum gas
and oil products to
commercial / industrial,
domestic, catering and
agricultural customers in
Britain and Ireland.

DCC MARKETS AND SELLS 
a broad range of computer
hardware and software
products in Britain, Ireland
and Continental Europe to
computer resellers, high
street retailers, computer
superstores, on-line retailers
and mail order catalogues.

DCC MARKETS AND SELLS
medical, surgical, laboratory,
pharmaceutical, mobility and
rehabilitation products to the
hospital, community care and
laboratory sectors in Ireland and
Britain. DCC is also a leading
provider of contract services to
the nutraceuticals industry in
Britain and Continental Europe.

DCC MARKETS AND SELLS 
food and beverages in Ireland.
This includes healthy foods,
snackfoods, fresh coffee and
wine to a broad range of
catering, convenience store,
food service and multiple
grocer customers.

DCC Environmental provides
specialist waste management
services to the industrial/
commercial sectors including
the treatment of waste oils,
waste chemicals and
contaminated soils and the
marketing of effluent water
treatment chemicals.

DCC’s other activities
principally comprise a 49%
shareholding in a leading
Irish builder of houses,
apartments and related
commercial developments
and a developing supply
chain management business.

50

40

30

20

10

0

35

30

25

20

15

10

5

0

20

15

10

5

0

12

10

8

6

4

2

0

6

5

4

3

2

1

0

15

12

9

6

3

0

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 15.6%

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 29.1%

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 23.1%

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 15.5%

99

00 01 02 03 04

5 Year CAGR 126.3%

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 9.0%

No 1 or 2 in most of
its markets
247,000 customers
93 facilities
642 vehicles

Organic market share
growth in LPG and oil
Consolidation
opportunities in 
oil sector
Acquisitions outside of
Britain and Ireland

Atlas, Cawoods Oil,
Emo, Envirotech, Ergas,
Flogas, Fuel Services,
Scottish Fuels,
Shannon Environmental Services 

(All DCC owned)

Leading player in 
each of its markets
No 1 distributor 
for many brands
15,000 customers
420,000 consignments
annually

Demand growth 
in IT returning 
Improving environment
for acquisitions
Broadening 
product portfolio

Canon, Cisco Systems, Epson,
Fujitsu, HP, IBM, Microsoft,
Oracle, Samsung Electronics,
Sony, StorageTek, Sun
Microsystems, Symantec,
Tivoli, Xbox, Xerox  

No 1 position in Irish
hospital supplies market
Sole distributor in Ireland
for key global brands
2 MHRA approved
nutraceuticals facilities
Nutraceuticals export
sales grew 38% in last
financial year

Growth in community
healthcare
New specialist pharmaceuticals
compounding business
Pursuing acquisition
opportunities in UK hospital
supplies sector
Further organic growth
potential in European
nutraceuticals

CasaCare*, Diagnostica,
DiaMed, DMA*, Fannin
Healthcare*, Fresenius, Kabi,
Grifols, Molnlycke, Oxoid,
Smiths, Stratec Medical 

(*DCC owned) 

No 1 or 2 in key 
market segments
Focus on fast
growing niches
22% of sales are 
of owned brands
Over 7,000 customers
across Ireland

3 EPA/EHS licenced
facilities in Ireland
Leading player in 
Irish environmental
market
Produced 24 million
litres of re-refined oil
products last year

Expanding portfolio of
strong niche brands
Demand growth for
healthy foods
Pursuing acquisition
opportunities in Britain
and Ireland 

Bollinger, Brown Brothers,
Hipp, Jordans, Kelkin*, KP,
Kylemore, Lemons*,
Phileas Fogg, Robinsons,
Robt. Roberts*, Torres

(*DCC owned)  

Growing environmental
services market
Positioned to meet
demand for skill-based
services from industrial
customers
Expansion opportunities
in Britain

Atlas, Envirotech,
Shannon Environmental Services

(All DCC owned) 

Building c. 600
residential units annually
Providing supply chain
management services 
to leading global
technology companies

Building: Substantial land
bank available for future
development
SCM: Trend towards
outsourcing supply chain
solutions

Building:
Manor Park Homebuilders

Supply chain management:
Avid, Canon, IBM, JASC,
Lotus, Lucent, Medtronic,
MapInfo, Microsoft, Nortel
Networks, PalmOne, The
MathWorks

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(
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T
O

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GROUP PBIT %

DESCRIPTION

GROWTH RECORD

KEY STATS

GROWTH FOCUS

STRONG BRANDS

Y
G
R
E
N
E

T
I

N
O
I
T
U
B

I

R
T
S
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26%

11%

9%

4%

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C
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12%

I

G
N
D
L
I
U
B
E
M
O
H

(
R
E
H
T
O

38%

DCC MARKETS AND SELLS
liquefied petroleum gas
and oil products to
commercial / industrial,
domestic, catering and
agricultural customers in
Britain and Ireland.

DCC MARKETS AND SELLS 
a broad range of computer
hardware and software
products in Britain, Ireland
and Continental Europe to
computer resellers, high
street retailers, computer
superstores, on-line retailers
and mail order catalogues.

DCC MARKETS AND SELLS
medical, surgical, laboratory,
pharmaceutical, mobility and
rehabilitation products to the
hospital, community care and
laboratory sectors in Ireland and
Britain. DCC is also a leading
provider of contract services to
the nutraceuticals industry in
Britain and Continental Europe.

DCC MARKETS AND SELLS 
food and beverages in Ireland.
This includes healthy foods,
snackfoods, fresh coffee and
wine to a broad range of
catering, convenience store,
food service and multiple
grocer customers.

DCC Environmental provides
specialist waste management
services to the industrial/
commercial sectors including
the treatment of waste oils,
waste chemicals and
contaminated soils and the
marketing of effluent water
treatment chemicals.

DCC’s other activities
principally comprise a 49%
shareholding in a leading
Irish builder of houses,
apartments and related
commercial developments
and a developing supply
chain management business.

50

40

30

20

10

0

35

30

25

20

15

10

5

0

20

15

10

5

0

12

10

8

6

4

2

0

6

5

4

3

2

1

0

15

12

9

6

3

0

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 15.6%

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 29.1%

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 23.1%

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 15.5%

99

00 01 02 03 04

5 Year CAGR 126.3%

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 9.0%

No 1 or 2 in most of
its markets
247,000 customers
93 facilities
642 vehicles

Organic market share
growth in LPG and oil
Consolidation
opportunities in 
oil sector
Acquisitions outside of
Britain and Ireland

Atlas, Cawoods Oil,
Emo, Envirotech, Ergas,
Flogas, Fuel Services,
Scottish Fuels,
Shannon Environmental Services 

(All DCC owned)

Leading player in 
each of its markets
No 1 distributor 
for many brands
15,000 customers
420,000 consignments
annually

Demand growth 
in IT returning 
Improving environment
for acquisitions
Broadening 
product portfolio

Canon, Cisco Systems, Epson,
Fujitsu, HP, IBM, Microsoft,
Oracle, Samsung Electronics,
Sony, StorageTek, Sun
Microsystems, Symantec,
Tivoli, Xbox, Xerox  

No 1 position in Irish
hospital supplies market
Sole distributor in Ireland
for key global brands
2 MHRA approved
nutraceuticals facilities
Nutraceuticals export
sales grew 38% in last
financial year

Growth in community
healthcare
New specialist pharmaceuticals
compounding business
Pursuing acquisition
opportunities in UK hospital
supplies sector
Further organic growth
potential in European
nutraceuticals

CasaCare*, Diagnostica,
DiaMed, DMA*, Fannin
Healthcare*, Fresenius, Kabi,
Grifols, Molnlycke, Oxoid,
Smiths, Stratec Medical 

(*DCC owned) 

No 1 or 2 in key 
market segments
Focus on fast
growing niches
22% of sales are 
of owned brands
Over 7,000 customers
across Ireland

3 EPA/EHS licenced
facilities in Ireland
Leading player in 
Irish environmental
market
Produced 24 million
litres of re-refined oil
products last year

Expanding portfolio of
strong niche brands
Demand growth for
healthy foods
Pursuing acquisition
opportunities in Britain
and Ireland 

Bollinger, Brown Brothers,
Hipp, Jordans, Kelkin*, KP,
Kylemore, Lemons*,
Phileas Fogg, Robinsons,
Robt. Roberts*, Torres

(*DCC owned)  

Growing environmental
services market
Positioned to meet
demand for skill-based
services from industrial
customers
Expansion opportunities
in Britain

Atlas, Envirotech,
Shannon Environmental Services

(All DCC owned) 

Building c. 600
residential units annually
Providing supply chain
management services 
to leading global
technology companies

Building: Substantial land
bank available for future
development
SCM: Trend towards
outsourcing supply chain
solutions

Building:
Manor Park Homebuilders

Supply chain management:
Avid, Canon, IBM, JASC,
Lotus, Lucent, Medtronic,
MapInfo, Microsoft, Nortel
Networks, PalmOne, The
MathWorks

Y
G
R
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N
E

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R
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T
O

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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B

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BOARD OF
DIRECTORS

Alex Spain
Chairman 
Alex Spain, B Comm., FCA (aged 71),
is non-executive Chairman of DCC and is 
a director of a number of other companies.
He was Managing Partner of KPMG in Ireland
from 1977 to 1984. He is a former President of
the Institute of Chartered Accountants in
Ireland and a former Chairman of the
Financial Services Industry Association in
Ireland. Mr Spain joined the Board and
became Chairman in 1976.

Chairman of the Nomination Committee and
member of the Remuneration Committee.

Jim Flavin 
Chief Executive/Deputy Chairman
Jim Flavin, B Comm., DPA, FCA (aged 61),
founded DCC in 1976 and is Chief
Executive and Deputy Chairman. Prior
to founding DCC, he was head of AIB
Bank’s venture capital unit. Mr Flavin
was non-executive Deputy Chairman of
eircom plc until its acquisition by
Valentia Telecommunications Limited in
November 2001.

Member of the Nomination Committee.

Kevin Murray 
Kevin Murray, BE, FCA (aged 45),
executive Director, joined DCC in 1988,
having previously worked with Shell
Chemicals in London and Arthur Andersen
in Dublin. He is Managing Director of DCC
Energy and of DCC Environmental.
Mr Murray joined the Board in 2000.

Maurice Keane
Maurice Keane, B Comm., M Econ Sc 
(aged 63), non-executive Director, is a
member of the Court of Directors of Bank
of Ireland, having been Chief Executive
until February 2002. He is a director of 
Axis Capital Holdings Limited and is
Chairman of Bristol & West plc, of BUPA
Ireland and of University College Dublin
Foundation Limited. Mr Keane joined the
Board in 2002.

Member of the Audit and Nomination
Committees. Senior Independent Director.

Paddy Gallagher
Paddy Gallagher, BL, DPA (aged 64),
non-executive Director, retired as Head 
of Legal and Pensions Administration 
at Guinness Ireland Group in 2000.
He previously worked with Aer Lingus,
the Irish national airline, and is a former
Chairman of the Irish Association of
Pension Funds. He is a member of the
Committee of Management of Irish
Property Unit Trust and is Chairman 
of the Trustees of the An Post
Superannuation Scheme.
Mr Gallagher joined the Board in 1976.

Chairman of the Audit Committee and
member of the Nomination Committee.

2

Tommy Breen
Tommy Breen, B Sc (Econ),
FCA (aged 45), executive Director,
joined DCC in 1985, having previously
worked with KPMG. He is Managing
Director of DCC SerCom.
Mr Breen joined the Board in 2000.

Morgan Crowe
Morgan Crowe, Dip Eng, MBA (aged 59),
executive Director, joined DCC in 1976,
having previously worked with the 
Boeing Company in Seattle and with 
IBM in Dublin. He is Managing Director 
of DCC Healthcare. Mr Crowe joined 
the Board in 1979.

Tony Barry
Tony Barry, Chartered Engineer (aged 69),
non-executive Director, was a member 
of the Court of Directors of Bank of Ireland
until January 2003 and was Chairman 
of Greencore Group plc until his retirement
in February 2003. He was Chairman 
of CRH plc from 1994 to May 2000,
having previously been Chief Executive.
He is a past President of The Irish Business
and Employers’ Confederation. Mr Barry
joined the Board in 1995.

Chairman of the Remuneration Committee
and member of the Nomination Committee.

Fergal O’Dwyer
Fergal O’Dwyer, FCA (aged 44),
executive Director, joined DCC in 1989,
having previously worked with KPMG 
in Johannesburg and Price Waterhouse 
in Dublin. He was appointed Chief
Financial Officer in 1994. Mr O’Dwyer
joined the Board in 2000.

Bernard Somers
Bernard Somers, B Comm, FCA (aged 55),
non-executive Director, is a non-executive
director of Independent News and Media plc,
Irish Continental Group plc and Ardagh plc and
is Chairman of eTel Group, a central European
telecommunications company. He is a former
director of the Central Bank of Ireland. Mr
Somers is the founder of Somers & Associates,
which has built a substantial practice in
corporate restructuring. He has also been an
investor in and a director of several start-up
companies. Mr Somers joined the Board in 2003.

Member of the Audit and Remuneration
Committees.

3

Senior Group Management

Jim Flavin
Chief Executive/
Deputy Chairman

Tommy Breen
Managing Director,
IT

Morgan Crowe
Managing Director,
Healthcare

Frank Fenn
Managing Director,
Food and Beverage

Kevin Murray
Managing Director,
Energy and Environmental

Fergal O’Dwyer
Chief Financial Officer

4

Ann Keenan
Head of Group Human Resources

Donal Murphy
Head of Group IT

Colman O’Keeffe
Deputy Managing Director,
Energy

Michael Scholefield
Managing Director,
Corporate Finance

Gerard Whyte
Group Secretary,
Compliance Officer,
Head of Enterprise Risk Management

Subsidiary Management

Energy

DCC Energy - Northern Ireland 
and Scotland
Emo Oil
Flogas Ireland
Flogas UK  

IT Distribution

Distrilogie  
Gem Distribution 
Micro Peripherals 
Sharptext

Healthcare

Days Medical Aids/CasaCare
DCC Nutraceuticals  
Fannin Healthcare Group 
Virtus 

Food and Beverage

Broderick Bros 
Kelkin 
Robt. Roberts 

Environmental

Sam Chambers
Gerry Wilson
Pat Mercer 
Paddy Kilmartin

Managing Director 
Acting Managing Director 
Managing Director 
Managing Director 

Patrice Arzillier 
Paul Donnelly 
Anthony Catterson 
Paul White 

Managing Director 
Managing Director 
Managing Director 
Managing Director 

Barry O’Neill
Stephen O’Connor 
Andrew O’Connell 
John Leonard

Managing Director  
Managing Director  
Managing Director  
Managing Director 

Fintan Corrigan
Bernard Rooney
Ken Peare

Managing Director 
Managing Director 
Managing Director 

Atlas Environmental Ireland  
Environmental Technology Manufacturing
Shannon Environmental Services

Declan Ryan 
John O’Regan
Declan Ryan

Managing Director  
Managing Director  
Managing Director  

Supply Chain Management
SerCom Solutions

Kevin Henry

Managing Director  

5

6

“

DCC consistently seeks
to maximise organic
growth opportunities.

”

7

Operating Review

Chairman’s Statement

DCC continued its unbroken record of 
strong earnings growth in the financial 
year to 31 March 2004. United Kingdom
based subsidiaries generated 50% of the
Group’s profits and as a consequence the 
rate of growth in reported profits in euro 
was held back due to the translation of
sterling profits at weaker average sterling
exchange rates to the euro over the past year.
On a constant currency basis, operating 
profit grew by 14.1% while adjusted 
earnings per share grew by 15.1%.

The return on capital employed was

Dividend increase of 15%

Share buybacks

excellent at 39.8% on tangible assets

The Directors are recommending a

During the year, DCC bought back 

and 21.3% on assets inclusive of

final dividend of 20.65 cent per share

2.3 million of its own shares 

acquisition goodwill. DCC’s business

which, when added to the interim

model is focused  on generating long

dividend of 11.75 cent per share, gives

term, quality growth in shareholder

a total dividend of 32.40 cent per

(2.8% of listed share capital) at an
average price per share of €10.70 and
a total cost of €25.0 million. DCC has

value. The Group has achieved

share for the year, a 15% increase over

bought back a total of 8.1% of its

compound annual growth in

the prior year dividend of 28.175 cent

adjusted earnings per share of 17.3%

per share. The dividend is covered 3.8

over the last ten years, while

times by adjusted earnings per share

issued share capital since July 2000 at
an average price per share of €9.81
and a total cost of €71.0 million.

investing sensibly to support future

(3.9 times: 2003). The final dividend

growth and maintaining a strong

will be paid on 14 July 2004 to

DCC may use its strong financial

financial position.

shareholders on the register at the

position to buy back more shares in

close of business on 28 May 2004.

the future.

8

cent

30

25

20

15

10

5

0

0
4

.
2
3

8
1
.
8
2

0
5
.
4
2 2
1

.
1
2

0
6
.
7
6 1
6
.
4
1

9
1

.
2
1

6
1
.
0
1

6
7

.
8

2
8

.
7

95 96 97 98 99 00 01 02 03 04

Dividend per share
Compound annual growth rate:

5 years

10 years

17.2%
17.7%

Board changes

of Ireland. He further strengthens

effective ongoing processes for

Morgan Crowe will retire as

the non-executive Director input to

identifying, evaluating and

Managing Director of DCC

the Board.

Healthcare and from the Board of

managing risks faced by the Group.

A detailed statement, set out on

DCC at the conclusion of the Annual

Acquisition and development

pages 34 to 36, describes how DCC

General Meeting on 8 July 2004,

Acquisition discussions are currently

has complied with all of the

following his 60th birthday.

being pursued with a range of

Principles of Good Governance and

Morgan has made an outstanding

companies in the Energy, IT

Code of Best Practice as set out in

contribution to DCC since joining in

Distribution, Healthcare, Food and

the 1998 Combined Code on

1976 and, in particular, to the

Beverage and Environmental

Corporate Governance. The Board

development of DCC’s healthcare

sectors. DCC maintained a strong

has considered the implications of

division. His commitment and

focus on organic development

the new Combined Code, published

ability have been a great asset to

during the year, making solid

in July 2003, which applies to DCC

DCC. Morgan will become non-

progress in several key areas which

for the financial year commencing

executive Deputy Chairman of DCC

will contribute to the Group’s future

on 1 April 2004 and is implementing

Healthcare following his retirement

and will have some continuing

involvement in selected project

work. His deep knowledge of the

healthcare industry will therefore

growth. Development expenditure
in the year totalled €39.7 million.

appropriate changes and will report

on compliance with its provisions in

Committed acquisition expenditure
amounted to €9.2 million (of which
€1.6 million was deferred) arising

the 2005 Annual Report.

The future

continue to be available to DCC.

from the acquisition of smaller

DCC is commercially and financially

Bernard Somers was co-opted to

Distribution, Healthcare and Food

growth both organically and by

businesses in the Energy, IT

well placed to generate ongoing

DCC’s Board as a non-executive

director on 29 September 2003.

Mr Somers is the founder of Somers

and Beverage divisions. Capital
expenditure was €30.5 million, of
which €17.9 million was in the

& Associates which has built a

Energy division with the balance

substantial practice in corporate

incurred across the other divisions.

restructuring and he has handled

many of the larger restructurings in

Corporate governance

acquisition.

Ireland. Mr Somers is a non-

The Board of DCC recognises the

Alex Spain

executive Director of a number of

importance of high standards of

Chairman

publicly quoted companies and a

corporate governance. The Board is

14 May 2004

former director of the Central Bank

satisfied that the Group has

9

Chief Executive’s Review

Following an excellent second half, in which
DCC achieved constant currency growth in
operating profit of 18.9% (11.8% on a reported
basis), full year constant currency growth was
14.1% (8.8% reported). It is particularly pleasing
to note that constant currency operating profit
growth in IT Distribution was 15.0% in the
second half compared to a decline of 11.6% in
the first half. Organic growth was particularly
strong, accounting for 90% of the growth in
operating profit. DCC generated excellent
operating cash flow of €151.9 million and had 
a net cash position of €62.7 million at the year
end having spent €25.0 million buying back
2.8% of the Company’s listed shares during 
the year.

10

Shareholder value 

enhancing strategies

DCC’s IT Distribution division

Bolt-on acquisitions: DCC has

continued the expansion of its Paris

substantial financial capacity to

Organic growth: DCC consistently

headquartered specialist storage

make acquisitions. Great care is

seeks to maximise organic growth

business into a more broadly based

needed in making acquisitions to

opportunities. The Group earns a

IT infrastructure business which

ensure that they will increase

high return on tangible capital

includes the sale of servers and

shareholder value in the long term.

employed, which was just under

relevant software. New agreements

Public companies are often under

40% in the past year. Consequently,

with HP and Sun to distribute their

market pressure to be seen to be

internally generated capital  

servers were important milestones

acquisitive to help short-term

re-invested in organic growth

in this regard. In Healthcare, we are

market ratings. However, research

opportunities drives high returns 

establishing a new pharmaceutical

over many years has shown that a

for DCC shareholders.

compounding unit in Dublin in

lot of corporate acquisition activity

association with experienced

actually destroys shareholder value

There were many examples of

pharmacists. This will enable DCC

– more often than not the seller,

organic development throughout

Healthcare to leverage existing

rather than the buyer, is the long-

the Group during the year, which

relationships with hospitals for the

term winner.

will enhance future shareholder

timely supply of specialist

returns. Within the Energy division

pharmaceuticals in patient-ready

Larger businesses that are marketed

we have nurtured the development

formats for treatment in such areas

by investment banks through an

of an exciting new Environmental

as oncology, pain control and cystic

auction process quite often sell at

Services business, which has

fibrosis. In the Food and Beverage

valuations that are hard to justify

emerged to become a division in its

division, an important organic

for a buyer. In DCC we prefer to

own right. This division’s reputation

development was a new agreement

concentrate on exclusive one-to-one

for the provision of high quality

with KP to market their products in

negotiations with companies that

environmental services to industrial

Northern Ireland which will build on

can be acquired and integrated with

and Government-related clients

DCC’s successful marketing of KP

existing business units in the Group.

contributed to its success in

products in the Republic of Ireland

winning new business such as soil

over many years.

remediation contracts on a number

of Ireland’s largest transport

infrastructure projects.

11

Such bolt-on acquisitions generally

8.1% of the share capital was bought

executive Director of DCC plc and 

add scale to existing businesses,

deepen the management resource

within the business unit, improve

back at an average price per share of
€9.81 and a total cost of €71 million.

as Managing Director of DCC

Healthcare with effect from 8 

July 2004, the date of the

supplier relationships and broaden

Management development

forthcoming AGM.

the customer base. Most

Management development is

importantly, these synergies drive

critically important in driving

The following changes are currently

higher returns on capital invested.

ongoing business success. In DCC it

being implemented:

gets constant attention throughout

The past year has been a quiet year

the Group involving the divisional

Kevin Murray, who since 1996

for the completion of acquisitions

Managing Directors, the Head of

has been a very successful

but acquisition search activity has

Group Human Resources and myself.

Managing Director of DCC’s

continued at a very high level. The

In the past year I have particularly

Energy division and of DCC’s

pipeline of potential bolt-on

focused on the development of the

Food and Beverage division,

acquisitions is encouraging and we

senior management team within the

will become Managing Director

aim to make shareholder value

Group and a number of changes are

of DCC’s Healthcare division in

enhancing acquisitions across all

being made that will enhance the

July and will retain responsibility

divisions in the Group.

strength and depth of this team.

for DCC’s growing Environmental

Services division as Managing

Dividends and share buybacks:

A key driver for these changes is a

Director.

DCC has maintained a very

recognition that we must continue

progressive dividend policy since its

to foster, as a core competence

Tommy Breen, having been

flotation on the stock market in

within DCC, the ability to manage

Managing Director of DCC’s IT

1994. Over that period the dividend

businesses in diverse markets. The

Distribution division since 1996,

has grown at a compound annual

senior management team must have

where he very effectively led the

growth rate of 17.7% per annum. In

the agility, skill and knowledge to

strong growth and market out-

addition we have used our strong

drive growth for DCC in all of its

performance of the division in

financial position to buy back DCC

markets. Another trigger for the

Britain, Ireland and Continental

shares at attractive prices which has

management changes is the

Europe, will become Managing

been shareholder value enhancing.

impending retirement of Morgan

Director of DCC’s Energy division 

Between July 2000 and  March 2004,

Crowe from his position as an

in July.

12

Donal Murphy, Head of Group IT

team, together with the highly

years has worked in an office next

since 1998, will become

experienced and committed

door to mine. I am glad he has

Managing Director of DCC’s IT

operating management teams in

agreed to remain with us as non-

Distribution division in July. He

DCC’s subsidiaries, gives the Group

executive Deputy Chairman of DCC

has led the successful

the capacity and sectoral focus 

Healthcare and to continue to work

development of IT platforms

to exploit its strong commercial 

part-time on selected assignments

across the DCC Group and has

and financial position and to drive

in the development of the

contributed greatly to related

the creation of long-term

healthcare business.

operational issues.

shareholder value.

Looking forward

Frank Fenn has joined DCC as

Morgan Crowe 

We will continue to target organic

Managing Director of DCC’s

After I founded DCC in the early part

and acquisition growth

Food and Beverage division from

of 1976, at that time as a start-up

opportunities, principally in Britain

Diageo, where he was Chief

venture capital company, I set about

and Ireland, that can earn high

Executive of R&A Bailey & Co

recruiting a core executive team.

returns on capital employed and

since 1998. Frank’s experience

DCC got a lucky break when Morgan

generate strong cash flows.

and track record of success in

Crowe applied to join the team.

DCC has the business platforms,

management and marketing

He has been with us for 27 years 

the management capacity and 

equips him well to lead the

of distinguished and committed

the financial strength to 

strategic and operational

service seeking, at all times, to

pursue ambitious organic and

development of the Food and

enhance the interests of DCC

acquisition growth.

Beverage division and to drive

shareholders. His intellect, presence

the growth of its brands.

and straightforward approach have

won him the respect and friendship

DCC’s proven ability to manage

of everyone he has dealt with in

sales and marketing businesses in

DCC. On a personal level I will miss

diverse sectors has been an

him, not just for his wise counsel as

Jim Flavin 

important factor in the Group’s

a senior executive colleague but

Chief Executive/Deputy Chairman

growth. The senior management

also as a trusted friend who for 27 

14 May 2004

13

14

“

DCC has substantial financial
capacity to make acquisitions.
Great care is needed in making
acquisitions to ensure that
they will increase shareholder
value in the long term.

”

15

Operating Review

DCC achieved excellent growth in the
profitability of its Energy, Healthcare,
Environmental and Homebuilding activities.
IT Distribution also achieved excellent
growth in the second half of the financial
year after a challenging first half.
Food and Beverage showed a modest decline.

Tommy Breen 
IT

Morgan Crowe 
Healthcare

Frank Fenn 
Food and Beverage

Kevin Murray 
Energy and Environmental

16

Energy

2004

2003

Sales 
Operating profit
Return on capital employed
- excluding goodwill
- including goodwill 

€841.3m 
€45.8m 

39.4%
21.9% 

€845.0m 
€42.2m 

41.2%
23.1%    

% change
Reported

% change
Constant currency 

-0.4%
+8.4% 

+4.8%
+16.1%  

DCC’s strong growth in the energy

increased by 16% benefiting from

These developments will facilitate

sector continued during the year

the inclusion for the full year of sales

the achievement of further

with operating profit increasing to

of the British Gas LPG business

efficiencies in the coming year.

€45.8 million, a constant currency

acquired in the prior year. The

increase of 16.1%. DCC is now the

integration of British Gas LPG into

DCC’s oil business performed

leading independent marketer of

DCC’s existing LPG business in the

satisfactorily. The business in

LPG and oil products in Britain and

UK has been completed and the

Scotland performed strongly while

Ireland and delivered 2.1 billion litres

planned synergies have been

trading in the Republic of Ireland

of product during the year.

obtained. The combined business

was more challenging. Overall, oil

moved to new headquarters in

sales volumes were in line with the

DCC’s LPG business performed

Syston, Leicestershire in March 2004

prior year.

strongly. LPG sales volumes 

and has completed the upgrade to a

single IT platform.

IT Distribution

2004

2003

Sales 
Operating profit
Operating margin
Return on capital employed
- excluding goodwill
- including goodwill 

€859.4m
€31.3m 
3.6%

41.9%
25.5%

€894.9m 
€32.3m
3.6%

54.7%
30.2%

% change
Reported

% change
Constant currency 

-4.0% 
-3.1%

+2.0%
+3.8%

Following a challenging first half,

DCC’s UK software distribution

The business continues to benefit

excellent constant currency profit

business had a satisfactory

from its position as the leading IT

growth of 15.0% was achieved in the

performance notwithstanding the

distribution business in Ireland and

second half due to strong sales

fact that there were no major new

from its very broad range of

volume growth and good cost

product releases by its

suppliers and customers.

control.

entertainment software vendors

during the year. Lower selling prices

DCC’s Continental European IT

DCC’s UK hardware distribution

of games consoles resulted in an

distribution business, Distrilogie,

business recorded strong sales

increase in the installed base which

generated excellent profit growth,

growth in several key product areas,

should contribute to increased

with improved margins and good

with particular growth in sales of PC

future demand for related software

cost control. The acquisition of a

and multi-function office products.

and accessories.

small French enterprise software

An improved second half benefited

distribution business shortly before

from a moderation in the rate of

DCC’s Irish IT distribution subsidiary

the year end and its integration

product price deflation and strong

had a very good year and delivered

with Distrilogie broadened the

sales volume growth.

strong profit growth despite

product base and strengthened

product price deflation which was

DCC’s market position as a leading

particularly severe in the first half.

enterprise infrastructure distributor.

17

Healthcare

2004

2003

Sales 
Operating profit
Operating margin 
Return on capital employed
- excluding goodwill
- including goodwill 

€149.0m 
€13.6m 
9.1% 

37.0%
12.1% 

€161.6m 
€11.4m 
7.1%  

33.6%
12.4% 

% change
Reported

% change
Constant currency 

-7.8% 
+19.1% 

-4.8% 
+21.2% 

Strong profit growth in DCC’s

business with a particularly strong

Strong organic sales growth drove

healthcare business resulted from

performance in specialist

excellent profit growth in the

improved profitability in all areas of

pharmaceutical products where

nutraceuticals business. The

its activities. Operating margins

Technopharm continued its excellent

upgrading of the licenced packing

improved from 7.1% to 9.1% on

record of rapid growth. A number of

facility in Cheshire was successfully

slightly reduced sales, reflecting

exciting organic developments took

completed. The business continued

good growth in higher margin

place including the establishment of

to broaden its customer base and

business and the discontinuation of

a pharmaceutical compounding

achieved particularly good progress

some activities.

facility in Ireland, the establishment

in Continental Europe with export

Profit growth was strong in the

and the European launch of a new

represent 50% of total nutraceuticals

hospital and community care 

range of mobility and rehabilitation

sales for the year.

of a pharma sales division in Britain

sales from the UK growing by 38% to

products under DCC’s own brands.

Food and Beverage

2004

2003

Sales 
Operating profit
Operating margin
Return on capital employed
- excluding goodwill
- including goodwill 

€170.7m 
€10.9m 
6.4%

42.0%
21.4% 

€185.2m 
€11.8m
6.3%

55.8%
26.3%

% change
Reported

% change
Constant currency 

-7.8%
-7.5%

-7.1% 
-7.9% 

DCC’s food and beverage business

Good sales growth was achieved in a

Also, building upon its successful

was impacted by a slowdown in

number of categories including wine

track record of marketing KP

demand across the Irish grocery and

and certain health food segments.

products in the Republic of Ireland,

food service sectors which

DCC reached agreement during the

contributed to a 7.5% reduction in

DCC expanded its food and beverage

year to market KP products in

operating profit. The reported sales

business in Northern Ireland through

Northern Ireland. DCC now has a

figure for 2004 was also impacted by

the acquisition of Savoury Foods,

sales and distribution reach

comparison with 2003 due to a

which had a well developed van

throughout Ireland in each of the

contract amounting to €19.7 million

sales force, and DWS, a wine

snackfoods, healthy foods, hot and

in 2003 which changed to a

importer and distributor.

cold beverage and wine segments in

commission based contract in 2004.

which it operates.

18

Environmental 

2004

2003

Sales 
Operating profit
Operating margin 
Return on capital employed
excluding goodwill
including goodwill

€24.1m 
€5.0m 
20.9% 

50.8%
19.8%

€19.2m 
€3.2m 
16.8%  

38.2%
14.4%  

% change
Reported

% change
Constant currency 

+25.6% 
+56.7% 

+28.1% 
+63.7% 

Excellent growth in all areas of

The environmental industry

Ireland. DCC now provides a broad

DCC’s environmental business

continues to develop, driven by the

range of services including waste

continued during the year with

increased amount and enforcement

chemical, water and oil treatment,

constant currency sales increasing

of environmental legislation.

soil remediation and emergency

by 28.1% (25.6% on a reported basis)

response to industrial and

to €24.1 million and operating profit

Following the acquisitions in recent

commercial customers from its

increasing by 63.7% (56.7% reported)

years of Envirotech and Shannon

three Environmental Protection

to €5.0 million.

Environmental Services, DCC has

Agency/Environment and Heritage

leading positions in a number of

Service licenced sites in Ireland.

environmental market segments in

Other
(Homebuilding and Supply Chain Management)

2004

2003

Sales 
Operating profit

€153.4m 
€14.3m 

€136.9m
€10.2m 

% change
Reported

% change
Constant currency 

+12.0%
+40.5%

+12.0% 
+40.5% 

Manor Park Homebuilders 

SerCom Solutions, the supply chain

During the second half SerCom

(a 49% owned associate company),

management business, generated a

Solutions announced that it had

which is a leading Irish

small second-half operating profit

entered into a strategic partnership

homebuilding company, contributed

and reported an operating loss for

with Kuehne & Nagel, one of the

operating profit of €15.2 million

the year of €0.9 million (operating

world’s leading logistics companies,

(€9.6 million: 2003). This excellent

profit of €0.6 million: 2003).

to combine their respective

growth in profit was driven by an

The business has continued to

businesses’ capabilities in supply

increase in completed house and

generate good positive cash flow.

chain management and global

apartment sales to 607 from 500 

logistics solutions.

in the prior year.

Note: All constant currency figures

quoted in this report are based on

retranslating current year figures at

prior year translation rates.

19

20

“

DCC has maintained a very
progressive dividend policy
since its flotation on the stock
market in 1994. Over that
period the dividend has grown
at a compound annual growth
rate of 17.7% per annum.

”

21

Financial Review

Fergal O’Dwyer Chief Financial Officer

A constant focus on maximising returns
on capital employed and cash generation
underpin DCC’s financial strategy.

DCC operates detailed and rigorous
operating and financial controls across
the Group. Key performance indicators
are monitored, often on a daily basis,
and operating and financial performance
is measured weekly and monthly against
targets and prior year.

Results are reported and reviewed

performance in the more significant

was organic. Since public listing in

promptly, with immediate follow up

second half was particularly strong

1994 approximately two thirds of

to exploit opportunities or address

with constant currency growth in

DCC’s growth has been organic.

weaknesses. Financial discipline is a

operating profit of 19% compared to

way of life at DCC.

growth of 6% in the first half.

The Group’s operating margin

Turnover grew by 2.6% on a constant

increased to 5.5% from 5.0%;

Results

currency basis (2.0% decline reported)

however, it is important to note that

Continued strong earnings growth,

to €2,198.0 million and operating

this measurement of the overall

cash generation and high returns on

profit increased by 14.1% on a

Group margin is of limited relevance

capital employed were key features

constant currency basis (8.8%

due to the influence of changes in

of DCC’s results for the year ended 31

reported) to a record €120.9 million,

oil product costs on the percentage.

March 2004. As Table 1 shows,

approximately 90% of which growth

22

Table 1: Operating profit from continuing activities

2004 

2003  

Reported  

Constant currency 

Growth

H1

H2
FY
€’m €’m €’m

H1

FY
H2
€’m €’m €’m

H1
% 

H2
%

FY
%

Energy
IT Distribution
Healthcare
Food and Beverage
Environmental
Other

10.7  
11.6 
6.5
5.0
2.3
5.1

35.1   45.8   
19.7
7.1
5.9
2.7
9.2

31.3
13.6
10.9
5.0
14.3

8.9  
13.6
5.0
5.8
1.2
5.3

33.3   42.2   
18.7
6.4
6.0
2.0
4.9

32.3
11.4
11.8
3.2
10.2

+8%  
+5% 
+21% 
-15%
-3% 
+5%
+29% +12% +19%
-14%
-7%
-1%
+88% +37% +57%
-3% +88% +41%

H1
%

H2
%

FY 
%

+25%  +14%  +16%
-12% +15% +4% 
+29% +15% +21% 
-14%
-8% 
-2%
+88% +48% +64% 
-3% +88% +41% 

Total - continuing

41.2

79.7 120.9

39.8

71.3

111.1

+3% +12%

+9%

+6% +19% +14%  

All constant currency figures quoted in this report are based on retranslating current year figures at prior year translation rates.

While changes in oil product costs

the year amounted to €8.2 million.

The defendants are in breach of a

will change percentage operating

Net operating exceptional items of

London High Court order in respect

margins, this has little relevance in

€2.3 million are non-recurring costs

of the non-payment of the damages

the downstream energy market in

incurred on restructuring and

and the interim cost award.

which DCC Energy operates, where

redundancy in a drive for improved

Collection of the amount

profitability is driven by absolute

efficiencies across the Group.

outstanding and interest accruing

contribution per litre (or tonne) of

Non-operating exceptional costs of

thereon at 8% per annum (per Court

product sold and not a percentage

€4.8 million were incurred on the

order) is being vigorously pursued.

margin. Excluding Energy, the

termination of operations associated

Group’s operating margin increased

with the Shoprider distribution

The remaining non-operating

from 4.9% to 5.5%.

contract. These costs relating to

exceptional costs of €1.1 million

legal, restructuring and redundancy

primarily related to the termination

A detailed operating review is set out

costs associated with the breach of a

of SerCom Solutions’ operations in

on pages 16 to 19.

contract to supply powered mobility

Scotland.

products to DCC’s subsidiary Days

Interest

Medical Aids Limited (DMA) by

Taxation

The net interest charge was €4.8

Pihsiang Machinery Manufacturing

The Group’s taxation charge on

million, a decrease of €0.2 million on

Company Limited (a Taiwanese

ordinary activities for the year

the prior year. Development

public company) have been

represents an effective tax rate of

expenditure of €39.7 million was

recognised in these accounts.

12.5%. The effective tax rate reflects,

fully funded by cash flows from

However, damages of Stg£10.2

in part, lower rates of tax in Ireland,

operations. Interest cover was 25.2

million and an interim cost award of

including manufacturing relief at

times (23.0 times: 2003).

Stg£2.0 million – in total Stg£12.2

10.0%. The standard rate of

million (€18.3 million) – against

corporation tax in Ireland is 12.5%

Profit before net exceptional items,

Pihsiang, its Chairman and major

since 1 January 2003. An analysis of

goodwill amortisation and tax rose by

shareholder Mr Donald Wu and his

the taxation charge is contained in

11.2% on a constant currency basis

wife and Director Mrs Jenny Wu

note 11 to the financial statements.

(6.1% reported) to €116.1 million.

following a successful London High

Court action by DMA have not yet

Dividend

Net exceptional items

been recognised in the accounts as

The total dividend for the year of

Operating exceptional items and non-

the amount has not yet been

32.40 cent per share represents an

operating net exceptional items in 

received.

increase of 15% over the previous year.

23

The dividend is covered 3.8 times (3.9

goodwill, significantly ahead of

is principally used to fund

times: 2003) by adjusted earnings

DCC’s cost of capital of

investment in existing operations,

per share.

approximately 7.5%. DCC’s

complementary bolt-on acquisitions,

consistently high returns on capital

dividend payments and selective

Return on capital employed

employed reflect the combination of

share buybacks. DCC’s record of

DCC is committed to creating

strong organic growth and the

excellent cash generation continued

shareholder value through delivering

attractive valuations and excellent

with operating cash flow before

consistent, long term returns in

integration synergies DCC has

exceptional items growing to €151.9

excess of the Company’s cost of

achieved in its bolt-on acquisitions.

million (as detailed in Table 2), an

capital. In the year under review,

DCC again generated excellent

Cash flow

increase of 54.3%. Working capital

decreased by €20.6 million to equate

returns, 39.8% on tangible capital

DCC focuses on operating cash flow

to 11.6 days’ sales at 31 March 2004,

employed and 21.3% on capital

to maximise shareholder value over

which compares favourably with 15.4

employed inclusive of acquisition

the long-term. Operating cash flow

days’ at 31 March 2003.

Table 2: Summary of Cash Flows

Table 3: Working Capital Days

Stocks
Debtors
Creditors 

2004 
Days 
15.8 
46.5 
(50.7) 

2003
Days 
15.8
48.8  
(49.2)  

Net working capital 

11.6  

15.4  

2004 
€’m 

151.9 
(10.7) 
141.2 
- 
1.1    

142.3 

28.1 
14.3 
25.0 
8.9 
24.7  
101.0 
41.3 
1.3
20.1 

62.7 

2003
€’m  

98.5 
(6.0)   
92.5      
14.7  
0.2   
107.4      

34.8  
88.2  
-  
7.8  
21.3   
152.1      
(44.7)  
1.7 
63.1 

20.1 

Inflows        
Operating cash flow  
Exceptional costs 

Disposal proceeds 
Shares issues (net)   

Outflows 
Capital expenditure (net) 
Acquisitions  
Share buyback 
Interest and tax paid
Dividends paid 

Net cash inflow/(outflow) 
Translation adjustment
Opening net cash 

Closing net cash 

24

Table 4: Analysis of Net Cash

Cash and term deposits
Bank and other debt
repayable within one year
Bank and other debt repayable 
after more than one year
Unsecured notes due 2008/11

Net cash

2004
€’m

2003
€’m

320.6     

354.0

(143.7)

(218.4)

(16.6)
(97.6)

62.7 

(21.2)
(94.3)

20.1

Balance sheet

the Board. The Group does not take

rate volatility. However, certain

DCC has a very strong balance sheet
with shareholders’ funds of €469.6

million at 31 March 2004 and net
cash of €62.7 million.

speculative positions but seeks,

natural hedges also exist within the

where considered appropriate, to

Group, as a proportion of both the

hedge underlying trading and

Group’s interest payments and

asset/liability exposures by way of

purchases by certain of its Irish

The composition of net cash at 31

derivative financial instruments

businesses are sterling

March 2004 is analysed in Table 4.

(such as interest rate and currency

denominated.

swaps and forward contracts).

Cash and term deposits are

DCC’s Group Treasury function

Interest rate risk management

analysed in note 22 to the financial

centrally manages the Group’s

The Group borrows at both fixed

statements. An analysis of DCC’s

funding and liquidity requirements.

and floating rates of interest and

debt at 31 March 2004, including

Divisional and subsidiary

utilises interest rate swaps to

currency, interest rates and maturity

management, in conjunction with

manage its exposure to interest rate

periods, is shown in notes 23 to 26

Group Treasury, manage foreign

fluctuations.

to the financial statements.

currency and commodity price

exposures within approved

Credit risk management

In April 2004 DCC completed a 

guidelines. An analysis of the

DCC transacts with a variety of

private placement of debt raising the
equivalent of €212.1 million in 10 and

Group’s hedging positions is

financial institutions for the

contained in note 27(b) to the

purpose of placing deposits and

12 year funding (average maturity

financial statements.

entering into derivative contracts.

10.3 years) which further strengthens

The Group actively monitors its

the Group’s capital structure and its

Currency risk management

credit exposure to each

capacity to pursue organic and

DCC’s reporting currency and that in

counterparty within guidelines

acquisition growth opportunities in

which its share capital is

approved by the Board.

all of its core business areas.

denominated is the euro. Exposures

The strength of DCC’s business 

to other currencies, principally

Commodity price risk management

model and attractive market

sterling and the US dollar, arise in

Commodity forwards and swaps are

conditions at the time of the

the course of ordinary trading.

frequently used to fully or partly

placement led to the funds being

Trading-related foreign currency

hedge potential price movements in

raised on very good terms.

exposures are generally hedged by

LPG products and oil products to be

using forward contracts to cover

purchased by the Group’s energy

Treasury policy and management

specific or estimated purchases and

businesses in Britain and Ireland.

The principal objective of the

receivables. Over half of the Group’s

All such contracts are entered into

Group’s treasury policy is the

operating profits are sterling

with counterparties approved by the

minimisation of financial risk at

denominated and, where

Board and usually for a period not

reasonable cost. This policy is

appropriate, hedges are put in place

exceeding three months.

reviewed and approved annually by

to minimise the related exchange

25

26

“

We must continue to foster,
as a core competence
within DCC, the ability to
manage businesses in
diverse markets.

”

27

Corporate Social
Responsibility

DCC recognises its corporate responsibilities
to shareholders, employees, customers and
suppliers and to the communities in which 
it operates.

Responsible corporate citizenship is a 
natural extension of DCC’s commitment to
excellence across all areas of its operations.

28

Commitment

DCC’s commitment to Corporate Social Responsibility (CSR) benefits both DCC and its key stakeholders –

communities, customers, employees, the environment and shareholders. Understanding the needs of all stakeholders

strengthens DCC’s ability to take advantage of business opportunities and minimise risks to support enduring,

sustainable competitive advantage and longer term shareholder value enhancement.

Progress

Over the past year DCC has made solid progress towards the development of a best-practice framework to underpin

the Group’s proactive approach to CSR. The framework will embrace each of the following key dimensions of CSR:

Marketplace

Environment, Health and Safety

Community

Workplace

The extent of the progress DCC has made in each of these areas is illustrated on pages 30 and 31.

Plans

Over the coming year DCC plans to progress its strategy to build continued awareness and understanding of the

business implications and benefits of CSR throughout the Group. This is a long-term, evolutionary process, building

on progress made to date and developing more effective systems to benchmark and seek continuous improvement in

CSR performance as part of the overall measurement of business performance.

29

Marketplace

Leinster Society of Chartered

Regular Environment,

Accountants. In addition to winning

Health and Safety audits

Dow Jones STOXX 

Sustainability Index

the overall award, DCC was

DCC’s Enterprise Risk Management

shortlisted for the Society’s 

function carries out scheduled EHS

DCC’s CSR progress was recognised

CSR award.

audits of all DCC subsidiaries

by the Group’s selection for inclusion

ensuring compliance with applicable

in the Dow Jones STOXX

Environment, Health and Safety

legislation, anticipation of future

Sustainability Index (DJSI STOXX)

requirements and dissemination of

during the year.

Proactive approach to

best practice.

Environmental, Health and 

This followed DCC’s previous

Safety management

Respect for the environment

inclusion in another key Socially

All DCC subsidiaries are taking a

DCC continuously seeks ways in

Responsible Investing index, the

systematic and proactive approach

which to exert a positive influence

FTSE4Good. The DJSI STOXX tracks

to Environmental, Health and Safety

on the environments in which its

the performance of the top 20% of

(EHS) management. Formal risk

businesses operate and to minimise

the companies in the Dow Jones

assessments are carried out on an

the Group’s environmental impact.

STOXX 600 Index that lead the field

ongoing basis as a key part of

During the year the Group increased

in terms of sustainability. Investors

policies and procedures documented

the amount of packaging waste

are increasingly diversifying their

in subsidiaries’ EHS management

diverted away from scarce landfill

portfolios by investing in companies

systems. Annual EHS objectives are

facilities to recycling contractors.

that set industry-wide best practices

set and EHS programmes then

Many subsidiaries have programmes

with regard to sustainability.

implemented, monitored and

to recycle bottles, cans and paper

reviewed for effectiveness.

products and employees are

Published Accounts Award

A number of subsidiaries are already

encouraged to limit the need for

DCC’s commitment to best financial

certified to the ISO14001 standard

recycling by reducing the use of

reporting practice contributed to the

for their environmental

office paper at source through

Group’s success in winning the

management systems. This is a

initiatives such as electronic faxing

Published Accounts Award for large

positive recognition against an

and double sided printing.

Irish quoted companies during the

external benchmark.

year. This is the main award for

excellence in financial reporting in

Ireland, presented annually by the

30

Community

DCC is committed to managing its

Strong tradition of communication

business in a fair and equitable

DCC places considerable emphasis

Embracing community initiatives

manner and to providing an

on employee communication.

DCC’s commitment to the

environment that has at its

Strong traditions of open and

community is reflected in the

cornerstone dignity and equality of

regular communication within

Group’s involvement in many local

opportunity for all. The Group is

DCC’s businesses are supported

causes in the communities in which

continuously developing progressive

through regular newsletters,

the Group’s subsidiaries operate.

employment practices to ensure not

employee forums (including the

These include sporting, social and

just full compliance with legal

DCC European Employee Forum),

educational initiatives that are

requirements but to promote best

team briefings, suggestion schemes,

supported through employee

human resources practice.

employee attitude surveys and the

volunteerism and fundraising.

group intranet.

Continuous employee development

Workplace

A variety of initiatives recognise the

Supporting entrepreneurial

importance to the Group’s long-

management

Pursuing best human 

term competitive advantage of

DCC’s business structure affords

resources practice

continuous training and

subsidiary management teams the

People are the key element of DCC’s

development of employees.

flexibility to pursue entrepreneurial

success – their talent, innovation

Through the DCC leadership

growth opportunities using their

and entrepreneurial flair have been

development programme we ensure

industry knowledge and market

essential ingredients in DCC’s

that development plans are in place,

awareness. Group management

consistent strong growth and

in support of our strategic business

supports these opportunities

performance.

objectives, to nurture and develop

through the provision of strategic

the potential of tomorrow’s

guidance, the promotion of best

business leaders.

practice and remuneration

structures that reward the talented,

energised people who drive

business growth.

31

32

“

The senior management team,
together with the highly experienced
and committed operating
management teams in DCC’s
subsidiaries, gives the Group the
capacity and sectoral focus to exploit
its strong commercial and financial
position and to drive the creation of
long-term shareholder value.

”

33

Directors’ Report and 
Financial Statements
2004

Corporate Governance

The Board of DCC recognises the importance 
of high standards of corporate governance.
DCC has complied, during the year ended 
31 March 2004, with all of the Principles of 
Good Governance and Code of Best Practice 
set out in the 1998 Combined Code on 
Corporate Governance.

The Board has considered the implications 
of the new Combined Code, published in July
2003, which applies to DCC for the financial 
year commencing on 1 April 2004 and is
implementing appropriate changes and will
report on compliance with its provisions in 
the 2005 Annual Report.

34

Corporate Governance - continued

The Board of Directors
Role

There is an established procedure for

Directors to take independent

Directors’ Remuneration
The Report of the Remuneration

The Board of DCC is responsible for the

professional advice in the furtherance

Committee is set out on pages 

strategic direction and overall

of their duties if they consider this

39 to 42. 

management of the Group and has a

necessary. All Directors have access to

formal schedule of matters specifically

the advice and services of the Company

reserved to it for decision, which covers

Secretary who is responsible to the

key areas of the Group’s business

Board for ensuring that Board

including approval of financial

procedures are followed and that

statements, budgets (including capital

applicable rules and regulations are

expenditure), acquisitions and

complied with. 

dividends. Certain additional matters

are delegated to Board Committees.  

The Board recognises the need for

Composition

Directors, in particular new Directors, to

be aware of their legal responsibilities

The Board consists of five executive and

as directors and, in addition, the Board

five non-executive Directors and the

ensures that Directors are kept up to

roles of the Chairman and Chief

date on the latest corporate

Executive are separate. Brief

governance guidance and best practice.

biographies of the Directors are set out

There is a formal induction process 

on pages 2 and 3. The Board considers

for new non-executive Directors which

all of the non-executive Directors, Mr.

includes detailed presentations on the

Spain, Mr. Barry, Mr. Gallagher, Mr.

Keane and Mr. Somers to be

Group’s operations. The Board also

gives consideration as to whether 

independent of management and free

new Directors require other training 

of any relationships which could

for their role. 

interfere with the exercise of their

independent judgement. The Board has

Board Committees

appointed Maurice Keane as the Senior

There are three Board Committees with

Independent Director. 

formal terms of reference: the Audit

Committee, the Remuneration

All of the Directors bring independent

Committee and the Nomination

judgement to bear on issues of

Committee. The Audit Committee

strategy, risk, performance, resources,

comprises three non-executive Directors

key appointments and standards. At

and its authority and duties are set out

least one-third of the Directors retire at

under ‘Accountability and Audit’ below.

each Annual General Meeting and all

The Remuneration Committee

of the Directors are subject to re-

election at least every three years.

Board Procedures

comprises three non-executive Directors

and its report is set out on pages 39 to

42. The Nomination Committee, which

comprises four non-executive Directors

The Board holds regular meetings and

and the Chief Executive/Deputy

there is contact as required between

Chairman, is responsible for making

meetings in order to progress the

recommendations to the Board on all

Group’s business. During the year, the

new Board appointments.

Board held seven meetings. The

Directors receive regular and timely

information in a form and quality

appropriate to enable the Board to

discharge its duties.  

Relations with Shareholders
DCC attaches considerable importance

to shareholder communications and has

a well-established investor relations

function. There is regular dialogue with

institutional investors and shareholders

as well as presentations after the

interim and preliminary results. All

announcements including results

announcements are published on the

Company’s web site at www.dcc.ie

immediately after their release by the

Regulatory News Service. The web site

contains additional information for

investors which is regularly updated. 

At the Company’s Annual General

Meeting, the Chief Executive/Deputy

Chairman makes a presentation and

answers questions on the Group’s

business and its performance during

the prior year. The chairmen of the

Audit, Remuneration and Nomination

Committees are also available to

answer questions at the Annual

General Meeting. 

The 2003 Annual Report and Notice of

Annual General Meeting were sent to

shareholders 22 working days before

the meeting and the level of proxy

votes cast on each resolution, and the

numbers for and against, were

announced at the meeting. Similar

arrangements have been made for the

2004 Annual Report and Notice of

Annual General Meeting. The 2004

Annual General Meeting will be held at

11 a.m. on 8 July 2004 at The Four

Seasons Hotel, Simmonscourt Road,

Ballsbridge, Dublin 4, Ireland.

35

Corporate Governance - continued

Accountability and Audit
Audit Committee

The written terms of reference of the

Audit Committee deal clearly with its

Such a system is designed to manage

rather than eliminate the risk of failure

(cid:2)  an independent Enterprise Risk
Management function, which

to achieve business objectives and can

incorporates Internal Audit and

provide only reasonable and not

Group Environmental, Health and

authority and duties which include: 

absolute assurance against material

Safety; and 

(cid:2) reviewing the half-year and annual

misstatement or loss.

financial statements before

submission to the Board, focusing

particularly on any changes in

accounting policies and practices,

major judgmental areas, significant

adjustments resulting from the

audit, the going concern assumption

and compliance with accounting

standards, Stock Exchange and 

legal requirements;

(cid:2) reviewing the scope and results of

the work performed by the Enterprise

Risk Management function

(incorporating Internal Audit);

(cid:2) reviewing reports from the Risk
Committee on internal control;

In accordance with the Turnbull

guidance for directors on internal

control, Internal Control: Guidance for

Directors on the Combined Code, the

Board confirms that there is an ongoing

process for identifying, evaluating and

managing the significant risks faced by

the Group, that it has been in place for

the year under review and up to the

date of approval of the financial

statements and that this process is

regularly reviewed by the Board. 

The key risk management and internal

control procedures, which are

supported by detailed controls and

(cid:2) reviewing the scope and results of

processes, include:

the work performed by the external

(cid:2)  skilled and experienced Group and

auditors;

divisional management;

(cid:2)  a formally constituted Audit

Committee which reviews the

operation of the Risk Committee

and the Enterprise Risk

Management function, liaises with

the external auditors and reviews

the Group’s internal control systems.

The Board has reviewed the

effectiveness of the Group’s system of

internal control. This review took

account of the principal business risks

facing the Group, the controls in place

to manage those risks (including

financial, operational and compliance

controls and risk management) and the

procedures in place to monitor them.

Going Concern

After making enquiries, the Directors

have formed a judgement, at the time

(cid:2)  an organisation structure with

of approving the financial statements,

clearly defined lines of authority 

that there is a reasonable expectation

and accountability;

that the Company and the Group as a

(cid:2) consideration of the appointment of
the external auditors and their fees;

and

(cid:2)  reviewing the nature and extent of
non-audit services provided by the

external auditors.

(cid:2)  a comprehensive system of financial

reporting involving budgeting,

monthly reporting and variance

analysis;

The Chief Executive/Deputy Chairman,

(cid:2)  the operation of approved risk

Chief Financial Officer, Head of

management policies (including

Enterprise Risk Management and

treasury and IT);

representatives of the external auditors

normally attend meetings of the Audit

Committee. The Committee meets 

with the external auditors without

executive management present at 

least once a year.

Internal Control

The Board is responsible for the Group’s

system of internal control and for

reviewing its effectiveness. 

(cid:2)  a Risk Committee, comprising Group
senior management, whose main

responsibilities of the auditors are set

out in their report on pages 44 and 45.

role is to keep under review and

report to the Audit Committee of

the Board on the principal risks

facing the Group, the controls in

place to manage those risks and the

monitoring procedures;

36

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 preparing the financial

statements. The Directors’ responsibility

for preparing the financial statements is

explained on page 43 and the reporting

Report of the Directors for the year ended 31 March 2004

The Directors present their report and

the audited financial statements for the

year ended 31 March 2004.

Principal Activities 
DCC is a value added sales & marketing

and support services group focused on

the energy, IT, healthcare, food and

Dividends
An interim dividend of 11.75 cent per
share, amounting to €9.75 million, was
paid on 1 December 2003. The Directors

Research and Development
Certain Group companies carry out

development work aimed at improving

the quality, competitiveness and range

recommend the payment of a final

of their products.  This expenditure is

dividend of 20.65 cent per share,
amounting to €16.82 million. Subject to
shareholders’ approval at the Annual

not material in relation to the size of

the Group and is written off to the

profit and loss account as it is incurred.

beverage and environmental markets.

General Meeting on 8 July 2004, this

A summary of the Group’s activities is

shareholders on the register on 28 May

set out on pages 16 to 19.

2004. The total dividend for the year

dividend will be paid on 14 July 2004 to

Subsidiary and Associated
Companies
Details of the Company’s principal

operating subsidiaries are set out on

pages 85 to 87. Details of its principal

associated undertakings are set out on

page 62, in note 18 to the financial

statements. A full list of subsidiary and

associated undertakings will be

annexed to the Annual Return of the

ended 31 March 2004 amounts to 32.40
cent per share, a total of €26.57 million.

The balance of profit attributable 

to Group shareholders, which is

retained in the business, amounts 
to €57.8 million.

Share Buybacks and Treasury
Shares
The number of shares held in Treasury

Company to be filed with the Irish

at the beginning of the year was

Registrar of Companies.

Results and Business Review
The profit for the financial year

attributable to Group shareholders
amounted to €84.3 million as set out
in the Consolidated Profit and Loss

Account on page 48. 

4,517,005 (5.12% of the issued share
capital) with a nominal value of €1.129
million. The maximum number of

shares held in Treasury during the year

was 6,790,129 (7.7% of the issued

share capital) with a nominal value of
€1.698 million. 

During the year, the Company

The Chairman’s Statement on pages 8

purchased 2,305,875 of its own shares

and 9, the Chief Executive’s Review on

pages 10 to 13, the Financial Review

on pages 22 to 25 and the Operating

Review on pages 16 to 19 contain a

(2.62% of the issued share capital) with
a nominal value of €0.576 million at a
total cost of €24.986 million. 

review of the development of the

A total of 155,146 shares (0.18% of

Group’s business during the year, of the

state of affairs of the business at 31

March 2004, of recent events and of

likely future developments.

the issued share capital) with a nominal
value of €0.039 million were re-issued
during the year at prices ranging from
€6.22 to €11.25, consequent to the
exercise of share options, leaving a

balance of 6,667,734 shares (7.56% of

the issued share capital) held in

Treasury at 31 March 2004.

37

Report of the Directors for the year ended 31 March 2004 - continued

Substantial Shareholdings
The Company has been advised of the following interests in its share capital as at 14 May 2004:

Bank of Ireland Asset Management Limited*

FMR Corp. and Fidelity International Limited 

and their direct and indirect subsidiaries*

Schroder Investment Management Limited*

First State Investment Management (UK) LImited 

and its associated companies*

Jim Flavin

No. of €0.25
Ordinary Shares

% of Issued

% of Listed

Share Capital

Share Capital

**

9,978,013

11.31%

12.23%

8,554,000

7,760,170

2,610,584

2,456,033

9.70%

8.80%

2.96%

2.78%

10.49%

9.51%

3.20%

3.01%

* Notified as non-beneficial interests.

** Listed Share Capital excludes 6,667,734 shares held as Treasury Shares.

The Company has not been notified of any other interest of 3% or more in its issued share capital.

Directors
The names of the Directors and a short biographical note on each Director appear on pages 2 and 3. 

Bernard Somers was co-opted to the Board on 29 September 2003.  In accordance with Article 83(b) of the Articles of

Association, he retires at the 2004 Annual General Meeting and being eligible, offers himself for re-election.  In accordance

with Article 80 of the Articles of Association, Alex Spain, Jim Flavin and Tony Barry retire by rotation at the 2004 Annual

General Meeting and, being eligible, offer themselves for re-election.  Morgan Crowe will retire from the Board at the

conclusion of the Annual General Meeting on 8 July 2004.

None of the retiring Directors has a service contract with the Company or with any member of the Group with a notice period

in excess of one year or with provisions for predetermined compensation on termination which exceeds one year’s salary and

benefits in kind.

Details of the Directors’ interests in the share capital of the Company are set out in the Report of the Remuneration Committee

on pages 39 to 42.

Health and Safety
It is the policy of the Group to ensure the safety, health and welfare of employees by maintaining a safe working environment

and complying with the provisions and requirements of the Safety, Health and Welfare at Work Act, 1989 and all other

statutory provisions and codes of practice.  Each operating company in the Group has documented and implemented

comprehensive safety policies and procedures which are kept under regular review by company management and by the Group

Environmental, Health and Safety Function.

Political Contributions
There were no political contributions which require to be disclosed under the Electoral Act, 1997.

Events Since the Year End
Senior unsecured loan notes equivalent to €212.1 million were issued on 19 April 2004 in a private placement with US and UK
institutional investors as detailed on page 68 in note 27(c) to the financial statements.

Auditors
The auditors, PricewaterhouseCoopers, will continue in office in accordance with the provisions of Section 160(2) of the

Companies Act, 1963.

Alex Spain, Jim Flavin, Directors

DCC House, Stillorgan,

Blackrock, Co Dublin

14 May 2004

38

Non-Executive Directors’
Remuneration

The remuneration of the non-executive

Directors is determined by the Board.

The fees paid to non-executive

Directors reflect their experience and

ability and the time demands of their

Board and Board Committee duties.

The Company funded a pension for the

Chairman, based on his annual fee. The

funding ceased on 31 March 2004.

Report of the Remuneration Committee

Remuneration Committee
The Remuneration Committee

Directors’ Remuneration
Executive Directors’ Remuneration

comprises three independent non-

The typical elements of the

executive Directors - Tony Barry,

remuneration package for executive

Bernard Somers and Alex Spain.  The

Directors are basic salary, performance

Committee is chaired by Tony Barry.

related remuneration consisting of

The terms of reference of the

and share options, pension benefits

Remuneration Committee are to

and a company car.

performance related annual bonuses

determine the remuneration packages

of the executive Directors and to

Salaries

approve the grant of share options.

The salaries of executive Directors are

The Chief Executive/Deputy Chairman is

reviewed annually on 1 January having

consulted about remuneration

regard to personal performance,

proposals for the other executive

Company performance and competitive

Directors and the Remuneration

market practice.  No fees are payable

Committee is authorised to obtain

to executive Directors.

access to professional advice if 

deemed desirable.

Remuneration Policy
The Company’s remuneration policy

Performance Related Annual Bonuses

Performance related annual bonuses are

payable to the executive Directors. The

performance targets, which are

recognises that employment and

reviewed annually, are tailored to the

remuneration conditions for the Group’s

responsibilities of each executive

senior executives must properly reward

Director and include growth in Group

and motivate them to perform in the

operating profit, growth in divisional

best interests of the shareholders.  In

operating profit, Group and divisional

formulating this policy, the Committee

development and an element related to

has given due regard to the provisions

individual performance and

of the June 1998 Combined Code on

contribution. The bonus potential, as a

Corporate Governance.

Directors’ Service Agreements
Other than for the Chief

Executive/Deputy Chairman, there are no

percentage of basic salary, for each

executive Director is reviewed and set

annually and in the year ended 31

March 2004 ranged from 30% to 50%.

service agreements between any Director

Pension Benefits

of the Company and the Company or

any of its subsidiaries.  The Chief

Executive/Deputy Chairman’s service

agreement provides for one year’s notice

of termination by the Company.

The Company funds pension schemes

which, for executive Directors, aim to

provide, on the basis of actuarial

advice, a pension of two thirds of

pensionable salary at normal retirement

date. Pensionable salary is calculated as

105% of basic salary and does not

include any performance related

bonuses or benefits.

39

Report of the Remuneration Committee - continued

Directors’ Remuneration Details
The table below sets out the details of the remuneration payable in respect of Directors who held office for any part of the
financial year.

Salary 
and Fees1

Bonus 

Benefits 2

Pension 
Contribution3
2003
2004

Total

2004
2003
€’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000

2003

2004

2003

2004

2004

2003

Executive Directors
Jim Flavin
Tommy Breen
Morgan Crowe
Kevin Murray
Fergal O’Dwyer

734
314
334
314
284

726
302
323
302
273

Total for executive Directors

1,980

1,926

Non-executive Directors
Alex Spain
Tony Barry
Paddy Gallagher
Maurice Keane 
Bernard Somers4

Total for non-executive 
Directors

118
49
49
49
24

111
46
46
46
-

289

249

Pension payment in respect of retired Director

Total

220
140
167
140
130

797

-
-
-
-
-

-

36
79
16
119
50

300

-
-
-
-
-

-

35
18
20
18
14

31
20
21
20
15

105

107

-
-
-
-
-

-

-
-
-
-
-

-

155
86
88
86
79

494

27
-
-
-
-

27

117
89
93
89
80

468

28
-
-
-
-

28

1,144
558
609
558
507

910
490
453
530
418

3,376

2,801

145
49
49
49
24

139
46
46
46
-

316

277

10

14

3,702

3,092

Notes
1  Fees are payable only to non-executive Directors and include Chairman’s and Board Committee fees.
2  In the case of the executive Directors, benefits relate principally to the use of a company car.
3  Executive Director pension contributions in the year to 31 March 2004 were made to a defined contribution arrangement

for Jim Flavin and to a defined benefit scheme for the other executive Directors.

4  In respect of the year ended 31 March 2004, remuneration for Bernard Somers is included only for the period from the date

of his appointment to the Board, on 29 September 2003, to 31 March 2004.

Directors’ Defined Benefit Pensions
The table below sets out the increase in the accrued pension benefits to which Directors have become entitled during the year
ended 31 March 2004 and the transfer value of the increase in accrued benefit, under the Company’s defined benefit pension
scheme:

Increase in 
accrued pension 
benefit (excl inflation) 
during the year

Transfer value
equivalent to the 
increase in accrued
pension benefit

Accumulated
accrued pension
benefit at year end

€’000

€’000

€’000

10
11
7
7

35

6

74
191
52
46

363

87

107
206
92
77

482

65

Executive Directors
Tommy Breen 
Morgan Crowe
Kevin Murray
Fergal O’Dwyer

Total

Non-executive Chairman
Alex Spain

The transfer value has been calculated on the basis of actuarial advice in accordance with Actuarial Guidance Note GN11.  
The transfer value represents a liability of a pension scheme operated by the Company and not a sum paid to or due to the
Director noted. 

40

Report of the Remuneration Committee - continued

Share Options

with guidelines published by the

Second tier options may normally be

DCC plc 1998 Employee Share
Option Scheme
Executive Directors and other senior

executives participate in the DCC plc

institutional investment associations.

exercised only if the growth in the

The Scheme provides for the grant of

adjusted earnings per share over a

both basic and second tier options, in

period of at least five years is such as

each case up to a maximum of 5% of

would place the Company in the top

the Company’s issued share capital.

quartile of companies on the ISEQ index

1998 Employee Share Option Scheme,

Basic tier options may not normally be

in terms of comparison of growth in

which was approved by shareholders in

exercised earlier than three years from

adjusted earnings per share and if there

1998.  The Scheme encourages

identification with shareholders’

the date of grant and second tier

has been growth in the adjusted

options not earlier than five years from

earnings per share of the Company

interests by enabling management to

the date of grant. 

build, over time, a shareholding in the

equivalent to the increase in the

Consumer Price Index plus 10%,

Company which is material to their net

Basic tier options may normally be

compound, per annum in that period.

worth. 

exercised only if there has been growth

in the adjusted earnings per share of

Directors are encouraged to hold their

The percentage of share capital which

the Company equivalent to the increase

options beyond the earliest exercise date.

can be issued under the Scheme, the

in the Consumer Price Index plus 2%,

phasing of the grant of options and the

compound, per annum over a period of

The following are details of share options

limit on the value of options which may

at least three years following the date

granted to Directors under the DCC plc

be granted to any individual comply 

of grant.

1998 Employee Share Option Scheme:

At 31 March
2003

Granted in 
year

At 31 March
2004

Weighted Average
Exercise Price 
€

Normal Exercise
Period

Executive Directors
Jim Flavin
Basic Tier
Second Tier

Tommy Breen
Basic Tier
Second Tier

Morgan Crowe
Basic Tier
Second Tier

Kevin Murray
Basic Tier
Second Tier

Fergal O’Dwyer
Basic Tier
Second Tier

350,000
395,000

165,000
190,000

100,000
100,000

165,000
190,000

140,000
165,000

-
-

-
-

-
-

-
-

-
-

350,000
395,000

165,000
190,000

100,000
100,000

165,000
190,000

140,000
165,000

7.8140
8.1063

June 2001 – Nov 2011
June 2003 – Nov 2012

8.4193
8.6786

June 2001 – Nov 2012
June 2003 – Nov 2012

7.0019
7.0045

June 2001 – Nov 2009
June 2003 – Nov 2009

8.4193
8.6786

June 2001 – Nov 2012
June 2003 – Nov 2012

8.0878
8.4366

June 2001 – Nov 2012
June 2003 – Nov 2012

No options were exercised by or allowed to lapse by Directors under the DCC plc 1998 Employee Share Option Scheme 
during the year.

41

Report of the Remuneration Committee - continued

DCC Sharesave Scheme
The Group established the DCC Sharesave Scheme in 2000.  On 15 June 2001, options were granted under the Scheme to
those Group employees, including executive Directors, who entered into associated savings contracts.  The maximum number
of options which could have been granted to any individual under the Scheme at that date, in accordance with relevant
legislation and subject to the level and term of the savings contract, was 2,383.  The options were granted at an option price
of €8.79 per share, which represented a discount of 20% to the market price as permitted by the rules of the Scheme.  These
options are exercisable between June 2004 and February 2007. 

The following are details of the share options granted to executive Directors under the Scheme:

Jim Flavin
Tommy Breen
Morgan Crowe
Kevin Murray
Fergal O’Dwyer

No. of Ordinary Shares
At 31 March 2004 and 2003
2,383
2,383
1,372
2,383
2,383

The market price of DCC shares on 31 March 2004 was €12.15 and the range during the year was €9.79 to €12.25.

Additional information in relation to the DCC plc 1998 Employee Share Option Scheme and the DCC Sharesave Scheme
appears in note 32 on page 75 of the financial statements. 

Directors’ and Company Secretary’s Interests
The interests of the Directors and the Company Secretary (including their respective family interests) in the share capital of DCC
plc at 31 March 2004, together with their interests at 31 March 2003, were:

Alex Spain
Jim Flavin
Tony Barry
Tommy Breen
Morgan Crowe
Paddy Gallagher
Maurice Keane
Kevin Murray
Fergal O’Dwyer
Bernard Somers

No. of Ordinary Shares

At 31 March 2004

At 31 March 2003

20,634
2,456,033
17,000
211,512
807,640
5,040
5,000
212,306
212,506
-

20,634
2,456,033
12,000
211,512
807,640
5,040
5,000
212,306
212,506
-*

Gerard Whyte (Secretary)

124,667

124,667

* at date of appointment - 29 September 2003

All of the above interests were beneficially owned.  There were no changes in the interests of the Directors and the Company
Secretary between 31 March 2004 and 14 May 2004.

Apart from the interests disclosed above, the Directors and the Company Secretary had no interests in the share capital or loan
stock of the Company or any other Group undertaking at 31 March 2004.

The Company’s Register of Directors Interests (which is open to inspection) contains full details of Directors’ shareholdings and
share options.

42

Statement of Directors’ Responsibilities

The following statement, which should

going concern basis, the Company has

to 2003 and the European

be read in conjunction with the

used appropriate accounting policies,

Communities (Companies: Group

statement of auditors’ responsibilities

consistently applied and supported by

Accounts) Regulations, 1992.  The

set out within their report on pages 44

reasonable and prudent judgements

Directors have a general duty to act in

and 45, is made with a view to

and estimates, and that all accounting

the best interests of the Company and

distinguishing for shareholders the

standards which they consider

must, therefore, take such steps as are

respective responsibilities of the

applicable have been followed (subject

reasonably open to them to safeguard

Directors and of the auditors in relation

to any explanations or material

the assets of the Group and to prevent

to the financial statements.

departures disclosed in the notes to the

and detect fraud and other

financial statements).

irregularities.

The Directors are required by company

law to ensure that the Company

The Directors are required to take all

prepares financial statements for each

reasonable steps to secure compliance

Books of Account
The measures taken with regard to

financial year which give a true and fair

by the Company with its obligations in

keeping proper books of account

view of the state of affairs of the

relation to the preparation and

include the use of systems and

Company and the Group and of the

maintenance of proper books of

procedures appropriate to the business

profit or loss of the Group for that year.

account and financial statements which

and the employment of competent and

disclose with reasonable accuracy at

reliable persons. The books of account

Following discussions with the auditors,

any time the financial position of the

are kept at DCC House, Stillorgan,

the Directors consider that in preparing

Company and to enable them to

Blackrock, Co. Dublin.

the financial statements on pages 46 to

ensure that the financial statements

80, which have been prepared on the

comply with the Companies Acts, 1963

43

Report of the Independent Auditors for the year ended 31 March 2004

To the Members of DCC plc
We have audited the financial

our audit and whether the Company

balance sheet is in agreement with the 

Basis of audit opinion
We conducted our audit in accordance

statements on pages 46 to 80 and the

books of account.  We also report to

with Auditing Standards issued by the

detailed information on directors’

you our opinion as to:

emoluments, pensions and interests in

shares and share options on pages 39

to 42. The financial statements have

been prepared under the historical cost

convention and the accounting policies

set out in the statement of accounting

policies on pages 46 and 47.

Respective responsibilities of
directors and auditors
The directors’ responsibilities for

preparing the annual report and the

financial statements in accordance with

applicable Irish law and accounting

standards generally accepted in Ireland

are set out on page 43 in the statement

(cid:2)  whether the Company has kept

proper books of account;

(cid:2)  whether the directors’ report is
consistent with the financial

statements; and

(cid:2)  whether at the balance sheet date
there existed a financial situation

Auditing Practices Board. An audit

includes examination, on a test basis, of

evidence relevant to the amounts and

disclosures in the financial statements.

It also includes an assessment of the

significant estimates and judgements

made by the directors in the preparation

of the financial statements, and of

whether the accounting policies are

which may require the Company to

appropriate to the Company’s

convene an extraordinary general

circumstances, consistently applied and

meeting; such a financial situation

adequately disclosed.

may exist if the net assets of the

Company, as stated in the Company

We planned and performed our audit so

balance sheet, are not more than half

as to obtain all the information and

of its called-up share capital.

of directors’ responsibilities.

We also report to you if, in our opinion,

Our responsibility is to audit the

Listing Rules regarding directors’

financial statements in accordance with

remuneration and transactions is not

information specified by law or the

relevant legal and regulatory

disclosed.

requirements, auditing standards issued

by the Auditing Practices Board

We read the other information

applicable in Ireland and the Listing

contained in the Annual Report and

Rules of the Irish Stock Exchange. This

consider the implications for our report

report, including the opinion, has been

if we become aware of any apparent

prepared for and only for the

misstatements or material

Company’s members as a body in

inconsistencies with the financial

accordance with Section 193 of the

statements. The other information

explanations which we considered

necessary in order to provide us with

sufficient evidence to give reasonable

assurance that the financial statements

are free from material misstatement,

whether caused by fraud or other

irregularity or error. In forming our

opinion, we also evaluated the overall

adequacy of the presentation of

information in the financial statements.

Opinion
In our opinion, the financial statements

give a true and fair view of the state of

affairs of the Company and the Group

Companies Act 1990 and for no other

comprises only the directors’ report, the

at 31 March 2004 and of the profit and

purpose.  We do not, in giving this

chairman’s statement, the chief

opinion, accept or assume responsibility

executive’s review, the operating review,

for any other purpose or to any other

the corporate social responsibility

cash flows of the Group for the year

then ended and have been properly

prepared in accordance with the

person to whom this report is shown or

statement, the financial review and the

Companies Acts, 1963 to 2003, and the

into whose hands it may come save

corporate governance statement.

where expressly agreed by our prior

consent in writing. 

We review whether the statement on

page 36 reflects the Company’s

We report to you our opinion as to

compliance with the seven provisions of

whether the financial statements give a

the Combined Code specified for our

European Communities (Companies:

Group Accounts) Regulations, 1992.

We have obtained all the information

and explanations we consider necessary

for the purposes of our audit.  In our

opinion, proper books of account have

true and fair view and are properly

review by the Listing Rules, and we

been kept by the Company. The

prepared in accordance with Irish

report if it does not.  We are not

Company balance sheet is in agreement

statute comprising the Companies Acts,

required to consider whether the

with the books of account.

1963 to 2003, and the European

Communities (Companies: Group

board’s statements on internal control

cover all risks and controls or to form an

Accounts) Regulations, 1992.  We state

opinion on the effectiveness of the

whether we have obtained all the

Company’s or Group’s corporate

information and explanations we

governance procedures or its risk and

consider necessary for the purposes of

control procedures.

44

Report of the Independent Auditors - continued

In our opinion, the information given in

the Report of the Directors on pages 37

and 38  is consistent with the financial

statements.

The net assets of the Company, as

stated in the balance sheet on page 51,

are more than half of the amount of its

called up share capital and, in our

opinion, on that basis there did not

exist at 31 March 2004 a financial

situation which, under Section 40(1) 

of the Companies (Amendment) Act,

1983, would require the convening 

of an extraordinary general meeting of

the Company.

PricewaterhouseCoopers

Chartered Accountants and Registered Auditors

Dublin

14 May 2004

45

Accounting Policies

Accounting Convention
The financial statements have been

that undertaking is included in the

determination of the profit or loss on

Turnover
Turnover comprises the invoiced value,

prepared under the historical cost

disposal.

convention and in accordance with

including excise duty and excluding

value added tax, of goods supplied and

applicable accounting standards. The

In the case of interests acquired by the

services rendered.

currency used in these financial

Group in associated undertakings,

statements is the euro, denoted by the
symbol €.

Basis of Preparation
The financial statements have been

prepared in accordance with accounting

standards generally accepted in Ireland

and Irish statute comprising the

Companies Acts, 1963 to 2003.

Accounting standards generally

accepted in Ireland in preparing

financial statements giving a true and

fair view are those published by the

Institute of Chartered Accountants in

Ireland and issued by the Accounting

Standards Board.  

goodwill is capitalised as part of their

carrying value and amortised over its

expected useful economic life.  In the

case  of similar interests acquired by

associated undertakings of the Group,

the accounting treatment followed in

respect of goodwill is that adopted by

the associated undertakings.

The useful economic life of capitalised

goodwill arising on acquisitions since 1

April 1998 is estimated to be 20 years.

Subsidiaries
Subsidiaries are included in the

Company balance sheet at cost less

Stocks
Stocks are valued at the lower of cost

and net realisable value.

Cost is determined on a first in first out

basis and in the case of raw materials,

bought-in goods and expense stocks

comprises purchase price plus transport

and handling costs less trade discounts

and subsidies.  Cost, in the case of

products manufactured by the Group,

consists of direct material and labour

costs together with the relevant

production overheads based on normal

levels of activity.

provision for any impairment in value.

Net realisable value represents the

Basis of Consolidation
The consolidated financial statements

include the Company and all its

subsidiaries. 

Associated Undertakings
Associated undertakings are companies

other than subsidiaries in which the

estimated selling price less costs to

completion and appropriate selling and

distribution costs.

Group holds, on a long-term basis, a

Provision is made, where necessary, for

The results of subsidiary and associated

participating interest in the voting

slow moving, obsolete and defective

undertakings acquired or disposed of

equity share capital and exercises

stocks.

during the year are included in the

significant influence.

consolidated profit and loss account

from the date of their acquisition or up

Associated undertakings are included in

Tangible Fixed Assets
Tangible fixed assets are stated at cost

to the date of their disposal.

the Company balance sheet at cost less

less accumulated depreciation.

provision for any impairment in value.

Goodwill
Goodwill comprises the excess of

consideration paid to acquire new

Income from associated undertakings

Depreciation is provided on a straight

included in the Company profit and loss

line basis at the rates stated below,

account comprises dividends received

which are estimated to reduce the

businesses over the fair value of the

and receivable.

identifiable net assets acquired.

assets to their residual level values by

the end of their expected working lives:

Goodwill arising on the acquisition of

subsidiaries prior to 1 April 1998 was

eliminated from the balance sheet

The appropriate share of results of

associated undertakings is included in

Annual Rate

the consolidated profit and loss account

Freehold and long term

by way of the equity method of

leasehold buildings 

2%

through reserves in the year in which it

accounting.   Associated undertakings

Plant and machinery 

5 - 331/3%

arose.  Goodwill arising on the

are stated in the consolidated balance

Cylinders

acquisition of subsidiaries since 1 April

sheet at cost plus the attributable

Motor vehicles

1998 is capitalised on the balance sheet

portion of their retained reserves from

Fixtures, fittings & 

62/3%

10 - 331/3%

and amortised on a straight line basis

over its estimated useful economic life.

On disposal of an undertaking acquired

prior to 1 April 1998, goodwill

the date of acquisition less goodwill

office equipment

10 - 331/3% 

amortised.  Provision is made, where

appropriate, where the Directors

Land is not depreciated.

consider there has been an impairment

eliminated against reserves in respect of

in value.

46

Accounting Policies - continued 

Leased Assets
Tangible fixed assets, acquired under a

Foreign Currencies
Assets and liabilities denominated in

lease which transfers substantially all of

foreign currencies are translated into

As part of exchange rate risk

management, foreign currency swap

agreements are used to convert US

the risks and rewards of ownership to

euro at the exchange rates ruling at the

dollar borrowings into euro and sterling

the Group, are capitalised as fixed

balance sheet date or at contracted

borrowings.  Gains and losses on these

assets.  Amounts payable under such

rates, where appropriate.

leases (finance leases), net of finance

charges, are shown as short, medium

The trading results of overseas

or long term lease obligations, as

subsidiaries are translated into euro at

appropriate.  Finance charges on

the average rate of exchange for the

finance leases are charged to the profit

year.

and loss account over the term of the

lease on an actuarial basis.

Profits and losses arising on

The annual rentals under operating

during the year are included in the

transactions in foreign currencies

derivatives are deferred and are

recognised on the maturity of the

underlying debt, together with the

matching loss or gain on the debt.

Interest rate swap agreements and

similar contracts are used to manage

interest rate exposures. Amounts

payable or receivable in respect of

these derivatives are recognised as

leases are charged to the profit and

profit and loss account at the exchange

adjustments to interest expense over

loss account as incurred.

rate ruling on the date of the

the period of the contracts.

transactions.

Deferred Consideration
Where acquisitions involve further

payments which are deferred or

Exchange differences arising from a re-

translation of the opening net

Liquid Resources
Liquid Resources comprise short term

deposits which are readily disposable

contingent on levels of performance

investment in subsidiary and associated

stores of value. These deposits are

achieved in the years following the

undertakings are dealt with in the

typically placed on money markets for

acquisition, a discounted deferred

acquisition creditor is accrued.

Statement of Total Recognised Gains

periods of up to six months.

and Losses net of differences on related

Notional interest is charged to the

currency borrowings.

profit and loss account over the

relevant period by reference to the

period of deferral, current interest rates

and the amount of the likely payments.

Derivative Financial
Instruments
The Group is a party to derivative

financial instruments (derivatives),

Deferred Taxation 
Deferred tax is recognised in respect of

primarily to manage its exposure to

fluctuations in foreign currency

all timing differences that have

exchange rates and interest rates and

originated but not reversed at the

to manage its exposure to changes in

balance sheet date where transactions

the prices of certain commodity

or events that result in an obligation to

products.

pay more tax in the future or a right to

pay less tax in the future have occurred

Gains and losses on derivative contracts

Capital Grants
Capital grants received and receivable

by the Group are credited to capital

grants and are amortised to the profit

and loss account on a straight line basis

over the expected useful lives of the

assets to which they relate.

Pension Costs
Pension costs are accounted for on the

basis of charging the expected cost of

providing pensions over the period

during which the Group benefits from

the employees’ services.  The effect of

at the balance sheet date.

used to hedge foreign exchange and

variations from regular cost are spread

commodity price trading exposures are

over the expected average remaining

Timing differences are temporary

recognised in the profit and loss

differences between profit as computed

account when the hedged transactions

for taxation purposes and profit as

occur.

stated in the financial statements which

arise because certain items of income

and expenditure in the financial

statements are dealt with in different

periods for taxation purposes.

service lives of the members in the

schemes. The basis of contributions are

determined on the advice of

independent qualified actuaries.

The disclosures required under the

transitional arrangements of Financial

Reporting Standard 17 ‘Retirement

Benefits’ are shown in note 31(b).  

47

Consolidated Profit and Loss Account for the year ended 31 March 2004

Notes

2004
€’000

2003
€’000

Turnover
Group turnover
Share of turnover of associated undertakings

Total turnover - continuing activities
Discontinued activities

Total turnover

Group turnover
Continuing activities 
Acquisitions

Cost of sales

Gross profit
Net operating costs before operating exceptional items and goodwill amortisation
Operating profit before operating exceptional items and 
goodwill amortisation 
- parent and subsidiary undertakings
Share of operating profit before goodwill amortisation
- associated undertakings
Operating profit before operating exceptional items and 
goodwill amortisation
Continuing activities 
Acquisitions

Discontinued activities

Operating exceptional items
Goodwill amortisation

Operating profit
Non-operating net exceptional items
Net interest payable and similar charges
- parent and subsidiary undertakings
Share of net interest payable and similar charges
- associated undertakings

Profit on ordinary activities before taxation
Taxation

Profit after taxation
Minority interests

Profit for the financial year attributable to Group shareholders
Dividends paid
Dividends proposed

Profit retained for the year

Earnings per ordinary share - basic (cent)

Earnings per ordinary share - diluted (cent)

Adjusted earnings per ordinary share - basic (cent)

Adjusted earnings per ordinary share - diluted (cent)

Alex Spain, Jim Flavin, Directors

1
1

1

1
2

2
2

1

1

7
6

2
7

8

9

10
11

12

13
14
14

35

15

15

15

15

2,074,465
123,500

2,197,965
-

2,111,066
131,818

2,242,884
29,490

2,197,965

2,272,374

2,051,441
23,024

2,063,783
47,283

2,074,465
(1,739,395)

2,111,066
(1,776,929)

335,070
(233,395)

334,137
(237,514)

101,675

96,623

19,201

17,709

120,876
120,708
168

120,876
-

120,876
(2,288)
(8,282)

110,306
(5,897)

114,332
105,928
5,165

111,093
3,239

114,332
(2,898)
(7,340)

104,094
(1,756)

(3,693)

(3,766)

(1,109)

99,607
(14,509)

85,098
(771)

84,327
(9,748)
(16,824)

57,755

101.98c

100.42c

121.89c

120.03c

(1,204)

97,368
(15,311)

82,057
(1,248)

80,809
(8,542)
(15,017)

57,250

96.66c

95.50c

111.00c

109.67c

48

Statement of Total Recognised Gains and Losses 
for the year ended 31 March 2004

Profit for the financial year
Exchange adjustments - associated companies
Exchange adjustments - subsidiaries

Total recognised gains for the financial year

2004
€’000

84,327
(210)
6,652

90,769

2003
€’000

80,809
(1,761)
(17,871)

61,177

Note of Historical Cost Profits and Losses
for the year ended 31 March 2004

There is no difference between the profit on ordinary activities before taxation and the profit retained for the year on an
historical cost basis and the amounts shown in the consolidated profit and loss account on page 48.

49

Consolidated Balance Sheet as at 31 March 2004

Notes

16
17
18

20
21
22

23
28

14

23
23

2004
€’000

129,566
212,252
53,780

395,598

110,577
330,385
320,616

761,578

143,732
362,688
36,077
16,824

559,321

2003
€’000

132,044
209,432
40,330

381,806

103,030
321,650
353,986

778,666

218,419
334,997
29,291
15,017

597,724

202,257

180,942

597,855

562,748

16,555
97,612
6,799

21,250
94,258
11,887

120,966

127,395

29

2,084

1,157

123,050

128,552

32
33
34
35

36
37
38

22,035
124,438
1,400
321,739

469,612
4,081
1,112

474,805

22,035
124,444
1,400
281,400

429,279
3,632
1,285

434,196

597,855

562,748

Fixed Assets
Intangible assets - goodwill
Tangible fixed assets
Financial assets - associated undertakings

Current Assets
Stocks
Debtors
Cash and term deposits

Creditors:  Amounts falling due within one year
Bank and other debt
Trade and other creditors
Corporation tax
Proposed dividend

Net Current Assets

Total Assets less Current Liabilities

Financed by:

Creditors:  Amounts falling due after more than one year
Bank and other debt
Unsecured Notes due 2008/11
Deferred acquisition consideration

Provisions for Liabilities and Charges

Capital and Reserves
Called up equity share capital
Share premium account
Other reserves
Profit and loss

Equity Shareholders’ Funds
Equity minority interests
Capital grants

Alex Spain, Jim Flavin, Directors

50

Company Balance Sheet as at 31 March 2004

Fixed Assets
Tangible fixed assets
Financial assets 
- associated undertakings
- subsidiary undertakings

Current Assets
Debtors
Cash and term deposits

Creditors:  Amounts falling due within one year
Bank and other debt
Trade and other creditors
Proposed dividend

Net Current Assets

Total Assets less Current Liabilities

Financed by:

Creditors: Amounts falling due after more than one year
Amounts owed to subsidiary undertakings
Deferred acquisition consideration

Provisions for Liabilities and Charges

Capital and Reserves
Called up equity share capital
Share premium account
Other reserves
Profit and loss

Equity Shareholders’ Funds

Alex Spain, Jim Flavin, Directors

Notes

17

18
19

21
22

23
28
14

2004
€’000

983

1,300
145,814

148,097

291,088
367

291,455

-
15,669
16,824

32,493

2003
€’000

1,055

1,300
106,653

109,008

280,457
333

280,790

4,067
6,536
15,017

25,620

258,962

255,170

407,059

364,178

187,711
2,016

189,727

178,188
4,350

182,538

29

827

552

190,554

183,090

32
33
34
35

22,035
124,438
344
69,688

216,505

22,035
124,444
344
34,265

181,088

407,059

364,178

51

Consolidated Cash Flow Statement for the year ended 31 March 2004

Cash flow from operating activities
Returns on investments and servicing of finance
Taxation paid
Capital expenditure
Acquisitions and disposals
Equity dividends paid

Cash inflow/(outflow) before management of
liquid resources and financing
Increase in liquid resources
Financing

(Decrease)/increase in cash for the year 

Notes

40
41

41
41

42
41

42

2004
€’000

141,246
(3,609)
(5,295)
(28,092)
(14,460)
(24,765)

65,025
(27,105)
(90,239)

2003
€’000

92,467
(4,864)
(2,923)
(34,832)
(73,483)
(21,258)

(44,893)
(61,222)
143,819

(52,319)

37,704

Reconciliation of Net Cash Flow to Movement in Net Cash 
for the year ended 31 March 2004

(Decrease)/increase in cash for the year
Increase in liquid resources
Net loans repaid/(drawn down)
Capital element of finance lease payments

Changes in net cash resulting from cash flow
Exchange movements

Net inflow/(outflow) in the year
Net cash at start of year

Net cash at end of year

Notes

42
42
42
42

42

42

42

2004
€’000

(52,319)
27,105
61,551
4,976

41,313
1,345

42,658
20,059

2003
€’000

37,704
61,222
(145,836)
2,248

(44,662)
1,648

(43,014)
63,073

62,717

20,059

52

Notes to the Financial Statements for the year ended 31 March 2004

1. Segmental Information

(a) Segmental Analysis by Class of Business
An analysis by class of business of turnover, profit before taxation and net assets is set out below:

Turnover
€’000

841,344
859,441
148,961
170,665
24,131
153,423

2,197,965

2004
Profit
Before
Taxation
€’000

45,791
31,274
13,595
10,876
5,044
14,296

120,876
-
(8,282)
(8,185)
(4,802)

(i) Summary 

Energy
IT Distribution
Healthcare
Food and Beverage
Environmental 
Other

Continuing activities
Discontinued activities
Goodwill amortisation
Net exceptional items (note 7)
Interest (net)
Net cash
Amounts due in respect of acquisitions
Investments
Capitalised goodwill - subsidiaries
Capitalised goodwill - associates
Minority interests
Proposed dividend

Net
Assets
€’000

105,434
78,949
37,129
27,634
10,239
43,230

302,615

62,717
(11,477)
100
129,566
6,996
(4,081)
(16,824)

Turnover
€’000

845,032
894,897
161,647
185,159
19,215
136,934

2,242,884
29,490

2003
Profit
Before
Taxation
€’000

42,239
32,289
11,415
11,756
3,219
10,175

111,093
3,239
(7,340)
(4,654)
(4,970)

Net
Assets
€’000

127,042
70,503
36,407
24,099
9,623
37,354

305,028

20,059
(18,833)
2,370
132,044
7,260
(3,632)
(15,017)

2,197,965

99,607

469,612

2,272,374

97,368

429,279

(ii) Split between Subsidiary Undertakings and Associated Undertakings

Subsidiary

2004
Associated
Undertakings Undertakings
€’000

€’000

2003
Associated 
Total Undertakings Undertakings
€’000
€’000
€’000

Subsidiary

Total
€’000

Turnover
- continuing
- discontinued activities

Operating profit before       
goodwill amortisation
- continuing
- discontinued activities

Goodwill amortisation

Operating profit
Net exceptional items (note 7)
Interest (net)

2,074,465
-

123,500
-

2,197,965
-

2,111,066
-

131,818
29,490

2,242,884
29,490

2,074,465

123,500

2,197,965

2,111,066

161,308

2,272,374

101,675
-

101,675
(7,794)

19,201
-

19,201
(488)

93,881
18,713
(8,185)                  -
(1,109)
(3,693)

120,876
-

120,876
(8,282)

112,594
(8,185)
(4,802)

96,623
-

96,623
(6,794)

14,470
3,239

17,709
(546)

89,829
(4,492)         
(3,766)

17,163
(162)
(1,204)

111,093
3,239

114,332
(7,340)

106,992
(4,654)
(4,970)

Profit before taxation

82,003

17,604

99,607

81,571

15,797

97,368

Net assets (including 
capitalised goodwill)

415,832

53,780

469,612

388,949

40,330

429,279

53

Notes to the Financial Statements for the year ended 31 March 2004

1. Segmental Information - continued

(iii) Other 
Other, which includes Homebuilding and Supply Chain Management, is analysed as follows:

2004
Profit
Before
Taxation
€’000

15,188
(892)

14,296

Turnover
€’000

65,406
88,017

153,423

Net
Assets
€’000

29,018
14,212

43,230

Turnover
€’000

47,016
89,918

136,934

2003
Profit
Before
Taxation
€’000

9,588
587

10,175

Net
Assets
€’000

20,273
17,081

37,354

Homebuilding
Supply Chain Management Services

(iv) Acquisitions 
Acquisitions in the year contributed turnover of €23.024 million (2003: €47.283 million), operating profit before goodwill
amortisation of €0.168 million (2003: €5.165 million) and profit before taxation of €87,000 (2003: €4.878 million).

(b) Segmental Analysis by Geographical Area
An analysis by geographical area of turnover, profit before taxation and net assets is set out below:

(i) Summary

Turnover
by Origin
€’000

700,036
1,374,429

2,074,465
123,500
2,197,965

2004
Profit
Before
Taxation
€’000

39,473
62,202

101,675
19,201
120,876
-
(8,282)
(8,185)
(4,802)

Turnover
by Origin
€’000

719,503
1,391,563

2,111,066
131,818
2,242,884
29,490

2003
Profit
Before
Taxation
€’000

38,983
57,640

96,623
14,470
111,093
3,239
(7,340)
(4,654)
(4,970)

Net
Assets
€’000

62,414
193,417

255,831
46,784
302,615

62,717
(11,477)
100
129,566
6,996
(4,081)
(16,824)

Net
Assets
€’000

76,037
195,921

271,958
33,070
305,028

20,059
(18,833)
2,370
132,044
7,260
(3,632)
(15,017)

2,197,965

99,607

469,612

2,272,374

97,368

429,279

Ireland
Rest of the World

Associated undertakings
Continuing activities
Discontinued activities
Goodwill amortisation
Net exceptional items (note 7)
Interest (net)
Net cash
Amounts due in respect of acquisitions 
Investments
Capitalised goodwill - subsidiaries
Capitalised goodwill - associates
Minority interests
Proposed dividend

(ii) Turnover by Destination – Continuing Activities

Ireland
United Kingdom
Rest of Europe
USA
Other
Share of associated undertakings

54

2004
€’000

2003
€’000

682,055
1,226,136
153,011
10,256
3,007
123,500

711,905
1,222,464
159,750
13,450
3,497
131,818

2,197,965

2,242,884

Notes to the Financial Statements for the year ended 31 March 2004

2. Cost of Sales and Net Operating Costs

Continuing

Continuing

2004

2003

Activities Acquisitions
€’000

€’000

Total
€’000

Activities Acquisitions
€’000

€’000

Total
€’000

(1,718,370)

(21,025)

(1,739,395)

(1,745,385)

(31,544)

(1,776,929)

333,071

1,999

335,070

318,398

15,739

334,137

(120,270)
(113,421)
(17)

(233,708)
2,144

(231,564)
(2,288)
(7,720)

(1,093)
(738)
-

(1,831)
-

(1,831)
-
(74)

(121,363)
(114,159)
(17)

(235,539)
2,144

(233,395)
(2,288)
(7,794)

(113,924)
(117,014)
(78)

(231,016)
4,076

(226,940)
(2,898)
(6,527)

(6,801)
(3,787)

-

(10,588)
14

(10,574)
-
(267)

(120,725)
(120,801)
(78)

(241,604)
4,090

(237,514)
(2,898)
(6,794)

Cost of sales

Gross profit

Operating costs
Distribution
Administrative
Other operating expenses

Other operating income 

Operating exceptional items
Goodwill amortisation

Net operating costs

(241,572)

(1,905)

(243,477)

(236,365)

(10,841)

(247,206)

Operating profit
- parent and subsidiaries
- associated undertakings (note 1(a))

91,499
18,713

,94
-

91,593
18,713

110,212

,  94

110,306

82,033
17,163

99,196

4,898
-

4,898

86,931
17,163

104,094

3. Acquisitions
The profit on ordinary activities before taxation arising from acquisitions represents the aggregate of net incremental profit
resulting from the acquisition of subsidiaries and associated undertakings in the relevant financial year.

4. Employee Information
The average weekly number of persons (including executive Directors) employed by subsidiaries of the Group during the year
analysed by class of business was:

2004
Number

2003
Number

Energy
IT Distribution
Healthcare
Food and Beverage
Environmental 
Supply Chain Management Services

The staff costs for the above were:

Wages and salaries
Social welfare costs
Pension costs

1,414
773
685
350
141
405

3,768

2004
€’000

124,540
13,621
7,242

145,403

5.  Directors’ Emoluments and Interests
Directors’ emoluments and interests are given in the Report of the Remuneration Committee on pages 39 to 42.

1,259
803
776
302
107
438

3,685

2003
€’000

125,274
13,239
6,199

144,712

55

Notes to the Financial Statements for the year ended 31 March 2004

6.  Goodwill Amortisation

Amortisation of capitalised goodwill arising on the acquisition        

of subsidiaries after 1 April 1998 (note 16)

Amortisation of goodwill included in the carrying value of

associated undertakings (note 18)

7. Net Exceptional Items 

Operating exceptional items

Reorganisation and restructuring costs - subsidiary undertakings
Net gains on disposals of interests in subsidiary undertakings
and associated undertakings and investments 

Non-operating net exceptional items

Net exceptional items

2004
€’000

2003
€’000

7,794

6,794

488
8,282

546
7,340

2004
€’000

2003
€’000

2,288

2,898

6,343

6,079

(446)

5,897

(4,323)

1,756

8,185

4,654

Operating exceptional items and non-operating net exceptional items in the year amounted to €8.185 million.
The net operating exceptional items of €2.288 million are non-recurring costs incurred on restructuring and redundancy, in a
drive for improved efficiencies across the Group.
Non-operating exceptional costs of €4.827 million were incurred on the termination of operations associated with the Shoprider
distribution contract. These costs relating to legal, restructuring and redundancy costs associated with the breach of a contract to
supply powered mobility products to DCC’s subsidiary Days Medical Aids Limited (DMA) by Pihsiang Machinery Manufacturing
Company Limited (a Taiwanese public company) have been recognised in these accounts.  However, damages of Stg£10.2
million and an interim cost award of Stg£2.0 million – in total Stg£12.2 million (€18.3 million) – against Pihsiang, its Chairman
and major shareholder Mr Donald Wu and his wife and Director Mrs Jenny Wu following a successful London High Court action
by DMA have not yet been recognised in the accounts as the amount has not yet been received.  The defendants are in breach
of a London High Court order in respect of the non-payment of the damages and the interim cost award. Collection of the
amount outstanding and interest accruing thereon at 8% per annum (per Court order) is being vigorously pursued. 
The remaining non-operating exceptional costs of €1.070 million primarily related to the termination of SerCom Solutions’
operations in Scotland.

8. Net Interest Payable and Similar Charges - Parent and Subsidiary Undertakings

Interest receivable and similar income
Interest on cash and term deposits
Other interest and similar income receivable

Interest payable and similar charges
On bank loans, overdrafts and Unsecured Notes 2008/11
- repayable within 5 years, not by instalments
- repayable within 5 years, by instalments
- repayable wholly or partly in more than 5 years
On loan notes 
- repayable within 5 years, not by instalments
On finance leases
Other interest

Notional interest on deferred consideration

2004
€’000
8,534
33

8,567

(10,454)
-
(315)

(29)
(1,143)
(319)

(12,260)
-

(12,260)

2003
€’000
13,358
145

13,503

(6,424)
(28)
(8,733)

(113)
(1,439)
(412)

(17,149)
(120)

(17,269)

(3,693)

(3,766)

9. Share of Net Interest Payable and Similar Charges - Associated Undertakings
This comprises the Group’s share of the net interest payable and similar charges of its associated undertakings.

56

Notes to the Financial Statements for the year ended 31 March 2004

10. Profit on Ordinary Activities Before Taxation
Profit on ordinary activities before taxation is stated after charging/(crediting):

Auditors’ remuneration - audit fees
Revenue grants 
Amortisation of capital grants
Operating leases
- land and buildings
- plant and machinery
- motor vehicles
Depreciation
- owned assets
- leased assets

2004
€’000

2003
€’000

804
-
(173)

4,144
138
2,174

25,926
3,475

795
(55)
(285)

3,639
29
1,183

24,986
4,509

Fees paid to the auditors, PricewaterhouseCoopers, for non-audit services amounted to €1.257 million (2003: €1.028 million).

11. Taxation

Current Tax
Irish Corporation Tax principally at 12.5% (2003: 15.125%)
Less manufacturing relief
United Kingdom Corporation Tax at 30%
Other overseas tax
(Over)/under provision in respect of prior years

Total current taxation 

Deferred Tax
Irish at 12.5%
United Kingdom at 30%
Other overseas deferred tax
Under/(over) provision in respect of prior years

Total deferred tax

Total subsidiary undertakings tax charge
Associated undertakings

Manufacturing relief is scheduled to expire in the year 2010.

Effective tax rate
Profit on ordinary activities before taxation
Goodwill amortisation (note 6)
Net exceptional items (note 7)

Taxation as a percentage of profit before goodwill amortisation,
net exceptional items and taxation 

The following table relates the applicable Republic of Ireland 
statutory tax rate to the effective tax rate of the Group:

Irish Corporation Tax rate
Manufacturing relief
Higher rates of tax on overseas earnings
(Over)/under provision in respect of prior years
Other timing differences
Adjustments for earnings taxed at lower rates and other

2004
€’000

5,636
(533)
7,207
339
(619)

2003
€’000

6,516
(964)
6,743
727
2,897

12,030

15,919

519
(1,158)
339
67

(233)

11,797
2,712

14,509

2004
€’000

99,607
8,282
8,185

167
(2,175)
-
(3,218)

(5,226)

10,693
4,618

15,311

2003
€’000

97,368
7,340
4,654

116,074

109,362

12.5%

14.0%

2004
%

12.5
(0.5)
11.0
(0.6)
(0.3)
(9.6)

12.5

2003
%

15.1
(1.0)
9.5
3.0
(5.4)
(7.2)

14.0

57

Notes to the Financial Statements for the year ended 31 March 2004

12. Minority Interests

Subsidiary undertakings
Associated undertakings

2004
€’000

341
430

771

2003
€’000

513
735

1,248

13. Profit for the Financial Year Attributable to Group Shareholders
As permitted by Section 3(2) of the Companies (Amendment) Act, 1986, a separate profit and loss account for the holding
company has not been included in these financial statements.  The profit for the financial year attributable to DCC shareholders
dealt with in the financial statements of the holding company amounted to €85.853 million (2003: €48.009 million).

14. Dividends

Per Ordinary Share
Interim dividend of 11.75 cent per share (2003: 10.217 cent per share)
Dividend attaching to shares bought-back

Proposed final dividend of 20.65 cent per share (2003: 17.958 cent per share)

2004
€’000

9,823
(75)

9,748
16,824
26,572

2003
€’000

8,542
-

8,542
15,017
23,559

The reduction in the interim dividend paid during the year ended 31 March 2004 of €75,000 relates to the dividend not
required to be paid on 644,077 ordinary shares bought back by the Company on 12 November 2003.

15. Earnings per Ordinary Share and Adjusted Earnings per Ordinary Share

Profit after taxation and minority interests
Net exceptional items (note 7)
Goodwill amortisation (note 6)

Adjusted profit after taxation and minority interests

Basic earnings per ordinary share

Basic earnings per ordinary share 
Net exceptional items (note 7)
Goodwill amortisation (note 6)

Adjusted basic earnings per ordinary share 

Weighted average number of shares in issue during the year (’000)

Diluted earnings per ordinary share 

Diluted earnings per ordinary share 
Net exceptional items (note 7)
Goodwill amortisation (note 6)

Adjusted diluted earnings per ordinary share 

2004
€’000

84,327
8,185
8,282

100,794

cent
101.98
9.90
10.01

2003
€’000

80,809
4,654
7,340

92,803

cent
96.66
5.57
8.77

121.89

111.00

82,690

83,603

cent
100.42
9.75
9.86

120.03

cent
95.50
5.50
8.67

109.67

Diluted weighted average number of ordinary shares (’000)

83,974

84,617

The adjusted figures for basic earnings per ordinary share and diluted earnings per ordinary share are intended to demonstrate
the results of the Group after eliminating the impact of goodwill amortisation and net exceptional items.

58

Notes to the Financial Statements for the year ended 31 March 2004

15. Earnings per Ordinary Share and Adjusted Earnings per Ordinary Share - continued

The weighted average number of ordinary shares used in calculating the diluted earnings per share for the year ended 
31 March 2004 was 83.974 million (2003: 84.617 million).  A reconciliation of the weighted average number of ordinary
shares used for the purposes of calculating the diluted earnings per share amounts is as follows:

Weighted average number of shares in issue used for the 

calculation of basic earnings per share amounts
Dilutive effect of options and partly paid shares 
Dilutive effect of shares potentially issuable under deferred

contingent consideration arrangements

Weighted average number of shares in issue used for the 

calculation of diluted earnings per share 

2004
’000

82,690
1,240

2003
’000

83,603
949

44

65

83,974

84,617

The earnings used for the purpose of the diluted earnings per share calculations were €84.327 million (2003: €80.809 million)
and €100.794 million (2003: €92.803 million) for the purposes of the adjusted diluted earnings per share calculation.

16. Intangible Assets - Goodwill 

Group

The movement in goodwill arising on the acquisition of subsidiaries is as follows:

Cost
At 1 April
Additions (note 39)
Disposals
Other movements

At 31 March

Amortisation
At 1 April
Amortisation for the year (note 6)

At 31 March

Net Book Value
At 31 March

2004
€’000

151,868
7,881
(265)
(2,300)

157,184

2003
€’000

131,362
20,506
-
-

151,868

19,824
7,794

27,618

13,030
6,794

19,824

129,566

132,044

59

Notes to the Financial Statements for the year ended 31 March 2004

17. Tangible Fixed Assets

(a)    Group

Freehold &
long term
leasehold land
& buildings
€’000

Plant & 
machinery &
cylinders
€’000

Fixtures &
fittings
& office
equipment
€’000

78,177
-
4,583
,225
(1,795)
1,086

82,276

11,917
-
1,607
-
(263)
,140

13,401

68,875

66,260

243,103
,141
12,809
,166
(1,718)
5,956

260,457

145,562
,    2
13,245
,131
(1,652)
3,431

160,719

99,738

97,541

44,629
17
4,860
(391)
(2,225)
,720

47,610

26,002
-
6,250
(131)
(1,744)
,526

30,903

16,707

18,627

Motor
vehicles
€’000

56,329
,588
8,281
-
(4,945)
1,517

61,770

29,325
,7
8,299
-
(3,661)
,868

34,838

26,932

27,004

Total
€’000

422,238
,746
30,533
-
(10,683)
9,279

452,113

212,806
9
29,401
-
(7,320)
4,965

239,861

212,252

209,432

Cost
At 1 April 2003
Acquisitions (note 39)
Additions
Reclassifications
Disposals
Exchange adjustments

At 31 March 2004

Depreciation
At 1 April 2003
Acquisitions (note 39)
Charge for year
Reclassifications
Disposals 
Exchange adjustments

At 31 March 2004

Net Book Value
At 31 March 2004

At 31 March 2003

The net book value of tangible fixed assets includes an amount of €7.121 million (2003: €9.972 million) in respect of assets
held under finance leases.  

Fixtures &
fittings & office
equipment
€’000

1,607
,  65
(384)

1,288

1,102
,162
(351)

,913

,375

,505

Motor
vehicles
€’000

1,138
,304
(272)

1,170

Total
€’000

2,745
,369
(656)

2,458

,588
,225
(251)                 

1,690
, 387
(602)

,562

,608

,550

1,475

,983

1,055

(b)   Company

Cost
At 1 April 2003
Additions
Disposals

At 31 March 2004

Depreciation
At 1 April 2003
Charge for year
Disposals

At 31 March 2004

Net Book Value
At 31 March 2004

At 31 March 2003 

60

Notes to the Financial Statements for the year ended 31 March 2004

18. Financial Assets - Associated Undertakings

(a)  Group

At 1 April 
Additions
Disposals
Retained profits less dividends
Exchange adjustments
Amortisation of goodwill (note 6)

At 31 March

The carrying value of associated undertakings is analysed as follows:

Interest in net assets
Share of post acquisition reserves

Goodwill (net of amortisation)

2004
€’000

40,330
,484
-
13,664
(210)
(488)

53,780

2004
€’000

4,739
42,045

46,784
6,996

53,780

2003
€’000

38,976
,112
(7,766)
11,315
(1,761)
(546)

40,330

2003
€’000

4,656
28,414

33,070
7,260

40,330

At 31 March 2004 the Group’s aggregate share of its associated undertakings’ fixed assets, current assets, liabilities due within
one year and liabilities due after more than one year was as follows:

Fixed assets
Current assets
Liabilities due within one year
Liabilities due after more than one year and minority interests

The movement in goodwill in associated undertakings is as follows:

Cost
At 1 April
Additions
Disposals

At 31 March

Amortisation
At 1 April
Amortisation for the year
Disposals

At 31 March

Net Book Value
At 31 March

2004
€’000

13,565
65,732
(14,007)
(18,506)

46,784

2003
€’000

12,738
63,030
(17,951)
(24,747)

33,070

2004
€’000

2003
€’000

9,890
224
-

10,114

2,630
488
-

3,118

10,583
-
(693)

9,890

2,341
546
(257)

2,630

6,996

7,260

61

Notes to the Financial Statements for the year ended 31 March 2004

18. Financial Assets - Associated Undertakings - continued

Details of the Group’s principal associated undertakings at 31 March 2004 are set out below.  All of these companies are
incorporated and operate in Ireland.

Name and Registered Office

Nature of Business  

% Shareholding

Food

KP (Ireland) Limited,
79 Broomhill Road, Tallaght, 
Dublin 24, Ireland.

Manufacture of snack foods.

Kylemore Foods Holdings Limited,
DCC House, Stillorgan, Blackrock,
Co. Dublin, Ireland.

Holding company for the Kylemore group of
companies whose principal activities are the operation
of restaurants and par bake bread manufacture.

Millais Investments Limited,
Kinsale Road, Cork, Ireland.

Holding company for Allied Foods Limited,
a distributor of frozen and chilled foods.

* The Group holds 50% of the voting share capital of Millais Investments Limited.

Other Activities

Manor Park Homebuilders Limited,
The Gables, Torquay Road, Foxrock, 
Dublin 18, Ireland.

Residential homebuilding  
and property development.

(b)  Company

At 31 March

19. Financial Assets - Subsidiary Undertakings

Company

At 1 April
Additions
Disposals

At 31 March

50.0%

50.0%

51.5%*

49.0%

2004
€’000

2003
€’000

1,300

1,300

2004
€’000

106,653
53,116
(13,955)

145,814

2003
€’000

101,178
5,475
-

106,653

The Group’s principal operating subsidiary undertakings are shown on pages 85 to 87. All of these subsidiaries are wholly
owned except Broderick Bros. Limited (88.8%), Virtus Limited (51.0%), Distrilogie SA (97.5%) where put and call options exist
to acquire the remaining 2.5%, DCC Environmental Limited (94.3%) where put and call options exist to acquire the remaining
5.7% and Fannin Limited (96.6%) where put and call options exist to acquire the remaining 3.4%.

The Group’s principal overseas holding company subsidiaries are DCC Limited, a company operating, incorporated and
registered in England and Wales and DCC International Holdings B.V., a company operating, incorporated and registered in the
Netherlands.  The registered office of DCC Limited is at Days Medical Aids Limited, Litchard Industrial Estate, Bridgend, Mid
Glamorgan CF31 2AL, Wales.  The registered office of DCC International Holdings B.V. is Drentestraat 24, 1083 HK
Amsterdam, the Netherlands.

62

Notes to the Financial Statements for the year ended 31 March 2004

20. Stocks

Group

Raw materials and consumables
Work in progress
Finished goods and goods for resale

2004
€’000

3,591
1,049
105,937

110,577

2003
€’000

3,951
916
98,163

103,030

The replacement cost of stocks is not considered to be materially different from the amounts shown above.

21. Debtors

Amounts falling due within one year:
Trade debtors
Amounts owed by subsidiary undertakings
Corporation tax recoverable
Deferred tax asset (note 29)
Value added tax recoverable
Prepayments and accrued income
Other debtors 

Amounts falling due after more than one year:
Amounts owed by subsidiary undertakings
Investments
Prepayments and other debtors 

22. Cash and Term Deposits

Cash in hand and at bank
Term deposits

2004
€’000

290,084
-
-
4,527
1,517
17,160
1,877

315,165

-
100
15,120

15,220

Group

Company

2003
€’000

280,153
-
-
3,021
5,109
14,704
1,163

304,150

-
2,370
15,130

17,500

2004
€’000

-
2,019
5
-
-
1,390
-

3,414

2003
€’000

-
2,050
4
-
-
1,448
-

3,502

278,233
-
9,441

287,674

268,676
-
8,279

276,955

330,385

321,650

291,088

280,457

Group

Company

2004
€’000

115,198
205,418

320,616

2003
€’000

181,397
172,589

353,986

2004
€’000

-
367

367

2003
€’000

-
333

333

For the purposes of the consolidated cash flow statement, cash in hand and at bank comprises cash on demand.  
The movements in cash in hand and at bank and term deposits are set out in note 42.

63

Notes to the Financial Statements for the year ended 31 March 2004

23. Bank and Other Debt

Bank loans and overdrafts (note 24) 
Loan notes (note 25) 
Obligations under finance leases (note 26) 

Unsecured Notes due 2008/11 (note 24) 

Bank and other loans and leases:         
- repayable within one year 
- repayable after more than one year 
Unsecured Notes due 2008/11 

Group    

Company   

2004
€’000

137,446
827
22,014

160,287
97,612

257,899

143,732
16,555
97,612

257,899

2003  
€’000  

2004
€’000

211,111  
2,287  
26,271  

239,669  
94,258  

333,927  

218,419  
21,250  
94,258  

333,927  

-
-
-

-
-

-

-
-
-

-

2003   
€’000     

3,997  
70  
-   

4,067  
-   

4,067     

4,067  
-  
-   

4,067  

In September 1996, the Group raised US$100 million of senior unsecured notes in a private placement with US institutional
investors.  Of this amount US$92.5 million is due in 2008 and US$7.5 million is due in 2011.  The funds have been swapped to
sterling at a margin over Libor.

24. Bank Loans, Overdrafts and Unsecured Notes due 2008/11

Repayable as follows:         
Within one year  
Between two and five years 
After five years 

The above amounts are further analysed as follows:  
Wholly repayable within one year 
Repayable other than by instalments:         
-  between two and five years 
-  after five years  

25. Loan Notes

Group    

Company   

2004
€’000

2003  
€’000  

2004
€’000

2003   
€’000  

137,446
90,291
7,321

235,058

211,111  
-  
94,258  

305,369  

137,446

211,111  

90,291
7,321

-  
94,258  

235,058

305,369  

-
-
-

-

-

-
-

-

3,997

-  
-  

3,997  

3,997

-  
-  

3,997  

Group    

Company   

2004
€’000

2003  
€’000  

2004
€’000

2003   
€’000  

The loan notes are repayable as follows:         

Within one year 

827

2,287  

-

70  

The above loan notes are unsecured and €0.827 million (2003: €2.287 million) are supported by bank guarantees.  The
company and certain of its subsidiaries have guaranteed the obligations of the relevant banks in respect of the loan notes
which are in turn guaranteed by the banks.

64

Notes to the Financial Statements for the year ended 31 March 2004

26. Finance Leases
The net finance lease obligations to which the Group is committed are: 

Within one year  

Between one and two years 
Between two and five years 

2004
€’000

2003   
€’000     

5,459  

5,021     

5,960  
10,595  
16,555  

5,316
15,934  
21,250     

22,014  

26,271  

27. Derivative and Other Financial Instruments
The Group’s treasury activities are designed to finance its operations and to reduce or eliminate the financial risks arising from
those operations.

A number of the Group’s operating and financial revenues and costs are exposed to movements in the financial and
commodity markets which are outside of the Group’s control.  In particular, interest rates can fluctuate, affecting the cost of
borrowings, and commodity price movements can impact on the cost of certain raw materials purchased.

Furthermore, foreign exchange movements can impact on the cost of products sourced and revenues generated from overseas
markets and can also impact on the translation of the results and net operating assets or operating liabilities of the Group’s
overseas operations save to the extent that they are hedged by borrowings or deposits in the same currency.  In order to
reduce exposures in relation to the Group’s revenues and costs, the Group uses various derivative financial instruments to
hedge its positions going forward.

All transactions in derivatives (which are mainly interest rate and currency swaps, forward foreign exchange and commodity
contracts) are designed to manage risks without engaging in speculative transactions.

(a) Interest Rate Risk Profile of Financial Assets and Financial Liabilities

The following table analyses the currency and interest rate composition of the Group’s gross cash and debt portfolio, as stated
on the balance sheet, after taking cross currency and interest rate swaps into account:

2004 
€ equivalent  

2003
€ equivalent

Financial  
Assets  
€’000
-  
67,959  

Financial   
Liabilities  
€’000
-  
(91,964)  

Net
€’000
-  
(24,005) 

Financial  
Assets  
€’000
-  
62,534 

Financial     
Liabilities  
€’000 
-  
(11,207)   

Net   
€’000     

-  
51,327  

67,959 

(91,964)  

(24,005) 

62,534  

(11,207)  

51,327     

91,605 
153,670  

(91,605)  
(74,330)  

245,275 

(165,935)  

-
79,340

79,340

88,457 
198,057  

(88,457)  
(234,242)  

-  
(36,185)  

286,514  

(322,699)  

(36,185)    

-  
7,382 

7,382  

-  
-  

-  

-
7,382 

7,382

-  
4,938  

4,938  

- 
(21)  

(21)  

-  
4,917  

4,917     

320,616  

(257,899)  

62,717 

353,986  

(333,927)  

20,059 

€ Fixed 
€ Floating 
€ Total 

Stg£ Fixed 
Stg£ Floating 

Stg£ Total 

US$ Fixed 
US$ Floating 

US$ Total 

Total 

65

Notes to the Financial Statements for the year ended 31 March 2004

27. Derivative and Other Financial Instruments - continued

The Group’s deferred acquisition consideration of €11.477 million (2003: €18.833 million), as stated on the balance sheet,
consists of €9.859 million of € floating rate financial liabilities (2003: €18.833 million of € floating rate financial liabilities)
and €1.618 million of Stg£ floating rate financial liabilities (2003: Nil) payable as follows:

Within one year 
Between one and two years 
Between two and five years

2004
€’000

4,678
3,391
3,408

2003     
€’000     

6,946
6,507
5,380  

11,477

18,833  

The Group’s floating rate financial assets and financial liabilities primarily bear interest rates based on:
(cid:2)  1-6 month Euribor

(cid:2)  1-6 month Sterling Libor

(cid:2)  0-1 month US$ Libor

Details of the fixed interest rates and corresponding time periods for the Group’s fixed rate financial assets and financial
liabilities, after taking interest rate swaps into account, are as follows:

2004
Weighted average interest rate %

2003   
Weighted average interest rate %   

Fixed rate 
financial assets 
n/a 
8.0% 

Fixed rate
financial liabilities
n/a
8.8%

Fixed rate 
financial assets 
n/a 
8.0% 

Fixed rate   

financial liabilities        

n/a  

8.8%       

2004
Weighted average period for which
rate is fixed

2003   
Weighted average period for which
rate is fixed   

Fixed rate 
financial assets 
n/a 
4.5 years 

Fixed rate
financial liabilities
n/a
4.5 years

Fixed rate 
financial assets 
n/a 
5.5 years 

Fixed rate   

financial liabilities         

n/a  
5.5 years  

€

Stg£ 

€

Stg£ 

The maturity profile of the Group’s financial liabilities is set out in notes 24 to 26 and can be summarised as follows:

2004
€’000

143,732
5,960
100,886
7,321

257,899

2003   
€’000     

218,419
5,316
15,934  
94,258  

333,927  

Within one year 
Between one and two years 
Between two and five years 
After five years 

66

Notes to the Financial Statements for the year ended 31 March 2004

27. Derivative and Other Financial Instruments - continued

(b) Gains and Losses on Hedges

The Group enters into forward foreign exchange contracts to eliminate the currency exposures that arise on revenues and costs
denominated in foreign currencies.  The Group also enters into commodity contracts in order to eliminate the exposure to price
movements of oil and LPG.  Changes in the fair value of instruments used as hedges are not recognised in the financial
statements until the hedged position matures.  An analysis of these unrecognised gains and losses is as follows:

At 1 April 
Portion recognised in current year 
Arising in current year 

At 31 March 

Gains  
€’000  

6,398  
(4,658)  
116  

1,856  

2004
Losses  
€’000  

(1,188)  
1,161 

(536)  

(563)  

Total 
€’000 

5,210
(3,497)  
(420) 

1,293  

Gains    
€’000     

1,673  
(1,462)  
6,187     

2003   
Losses  
€’000  

(847)  
,321  
(662)  

Total   
€’000     

,826  
(1,141)  
5,525  

6,398  

(1,188)  

5,210    

Of which, expected to be recognised:               
- within one year 
- after one year 

1,856 
-  

1,856  

(563)  
-  

(563)  

1,293 
- 

1,293 

4,658  
1,740  

6,398  

(1,161)  
(27)  

(1,188)  

3,497    
1,713   

5,210  

The above table does not include cross currency interest rate swaps where unrecognised gains or losses on the swaps are
matched by equal and opposite gains or losses in the fair value of the Unsecured Notes 2008/11 or the Unsecured Notes
2014/16 as described in the accounting policy for derivative financial instruments and detailed in note 27(c).

(c) Fair Value of Financial Instruments

The carrying amounts and estimated fair values of the financial assets and financial liabilities of the Group are as follows:

Assets:       
Cash and short term deposits 

Liabilities:         
Deferred acquisition consideration 
Short term debt 
Medium and long term debt 
Unsecured Notes due 2008/11 

Derivative financial instruments:         
Commodity swaps 
Forward foreign exchange contracts 
Interest rate contracts 

2004 

2003   

Carrying  
amount  
€’000  

Fair 
value 
€’000 

Carrying  
amount  
€’000  

Fair   
value   
€’000

320,616   

320,616 

353,986  

353,986    

(11,477)  
(143,732)  
(16,555) 
(97,612) 

(11,477) 
(143,732) 
(16,555)  
(97,612) 

(18,833)  
(218,419)  
(21,250)  
(94,258)  

(18,833)  
(218,419)  
(21,250)  
(94,258)   

-  
-  
-  
51,240  

12
1,281 
-
52,533 

-  
-  
-           

1,226  

(560)  
5,770  
-   
6,436  

67

Notes to the Financial Statements for the year ended 31 March 2004

27.  Derivative and Other Financial Instruments - continued

The following methods and assumptions were used by the Group in estimating its fair value disclosures for financial
instruments:

(cid:2)  Cash, short term deposits and short term debt:
The carrying amount reported in the balance sheet generally approximates to fair value because of the short maturity of these
instruments.

(cid:2)  Deferred acquisition consideration:
The carrying amount reported in the balance sheet generally approximates to fair value because the future amounts payable
are discounted back to their present value.

(cid:2)  Medium and long term debt:
The carrying amount reported in the balance sheet approximates to fair value because interest rates on these instruments
frequently reset to short term market rates.

(cid:2)  Unsecured Notes due 2008/11:
The fair value of the Group’s Unsecured Notes due 2008/11 is shown net of the gain or loss on the sterling cross currency
interest rate swap used to hedge these loan notes (note 23). At 31 March 2004, the cross currency interest rate swap had a
fair value equating to a loss of €1.855 million (2003: gain of €15.323 million) and the fair value of the Unsecured Notes
2008/11 was higher (2003: lower) than the book value by the same amount.

(cid:2)  Unsecured Notes due 2014/16:
On 19 February 2004, the Group committed to the issuance of US$200.0 million and Stg£30.0 million senior unsecured notes
in a private placement with US and UK institutional investors.  Of these amounts, US$157.0 million and Stg£30.0 million are
due in 2014 and US$43.0 million is due in 2016 (together the “Unsecured Notes 2014/16”). The Unsecured Notes 2014/16
were subsequently issued on 19 April 2004 with funding equivalent to €212.1 million drawn down on that date.

On 19 February 2004, the Group entered into currency and interest rate swaps with the effect that (i) the dollar denominated
funds were swapped to euro at a margin over six month Euribor and (ii) the sterling denominated funds were swapped to a
margin over six month sterling Libor.  At 31 March 2004, the currency and interest rate swaps had a fair value equating to a
gain of €2.306 million and the fair value of the Unsecured Notes 2014/16 was lower by the same amount.

(cid:2)  Commodity and forward foreign exchange contracts:
The fair value of these instruments is based on the estimated replacement cost of equivalent instruments at the balance sheet date.

(cid:2)  Interest rate contracts:
The fair value of these instruments is based on the estimated replacement cost of equivalent instruments at the balance sheet
date.  The Group uses interest rate contracts to swap floating rate assets and liabilities into fixed rate assets and liabilities.  The
fair value of the interest rate contracts attributable to financial assets is offset by the fair value of the interest rate contracts
attributable to financial liabilities.

(d) Undrawn Borrowing Facilities
While the Group had various bank borrowing facilities available at 31 March 2004, it had no undrawn committed bank
facilities. As detailed in note 27(c), the Group issued Unsecured Notes 2014/16 on 19 April 2004 pursuant to commitments
entered into on 19 February 2004.

(e) Short Term Debtors and Creditors
Short term debtors and creditors are not included in the above disclosures of financial assets and financial liabilities.

(f) Currency Exposures
At 31 March 2004, after taking into account the effects of forward foreign exchange contracts, the Group had no material
currency exposures in relation to revenues and costs denominated in foreign currencies.

(g) Treasury Policy
The Group’s treasury policy and management of derivatives and financial instruments is discussed in the financial review on
pages 22 to 25.

68

Notes to the Financial Statements for the year ended 31 March 2004

28. Trade and Other Creditors

Amounts falling due within one year:
Trade creditors 
Other creditors and accruals 
Deferred acquisition consideration 
PAYE and National Insurance  
Value added tax 
Capital grants (note 38) 
Interest payable 
Amounts due in respect of fixed assets 
Amounts due to subsidiary undertakings 
Amounts due to associated undertakings 

29.  Provisions for Liabilities and Charges

(a)  Group

Group

Company

2004
€’000

297,501
35,588
4,678
3,799
12,951
129
1,617
566
-
5,859

362,688

2003
€’000

265,905  
38,308  
6,946  
3,039  
12,161  
128 
1,355 
2,117  
-  
5,038  

334,997  

2004
€’000

-
1,836
1,885
268
619
-
-
-
11,061
-

15,669

2003
€’000

72  
1,423  
3,924  
231  
110  
-  
-  
-  
776  

-    

6,536  

2004
Pension 
Deferred  and similar 
taxation   obligations   
(note 31)  
(note 30)  
€’000  

€’000       

(1,875)  
(233) 
(346) 

(2,454)  

(4,527)  
2,073  

(2,454)  

11  
-  
-  

11  

-  
11  

11  

Total  
€’000 

(1,864)
(233) 
(346) 

(2,443)

(4,527)
2,084  

(2,443) 

At 1 April  
Credited to profit and loss account 
Exchange adjustments and other 

At 31 March 

Disclosed as:
Deferred tax asset (note 21) 
Provisions for liabilities and charges 

(b)  Company

At 1 April 
Charged to profit and loss account 

At 31 March            

2003     
Pension     
and similar     

Deferred  
taxation   obligations  
(note 31)  
(note 30)  
€’000  
€’000  

2,773  
(5,226)  
,578   

(1,875)  

(3,021)  
1,146   

(1,875)  

Total   
€’000     

2,816  
(5,258)  
,578  

(1,864)    

43  
(32)  
-  

11  

- 
11   

11  

(3,021)  
1,157  

(1,864)  

2004
€’000

552
275

827

2003   
€’000     

4  
548  

552  

69

Notes to the Financial Statements for the year ended 31 March 2004

30. Deferred Taxation

The net deferred taxation (asset)/liability provided in the financial statements is analysed as follows:

(a) Group

Tax effect of timing differences due to:       
Excess of accelerated capital allowances over depreciation
Other short term timing differences 

(b) Company

Tax effect of timing differences due to:     
Excess of accelerated capital allowances over depreciation 
Other short term timing differences 

2004
€’000

,361
(2,815)

(2,454)

2004
€’000

4
823

827

2003   
€’000     

(2,158)

,283   

(1,875)  

2003   
€’000 

4 
548  

552  

31. Pension and Similar Obligations
The Group has continued to account for pensions in accordance with SSAP 24 and the relevant disclosures are given in note (a)
below.  Financial Reporting Standard 17 - Retirement Benefits (FRS 17) was issued by the Accounting Standards Board in
November 2000 and represents a significant change in the method of accounting for pension costs compared with the
previous rules as set out in SSAP 24. Full implementation of the new accounting rules prescribed by FRS 17 has been deferred
by the Accounting Standards Board.  The Group has elected to avail of transitional provisions outlined in the standard which,
for 2004, permit the use of the SSAP 24 regulations for determining pension cost but require the additional disclosure of the
impact of the adoption of FRS 17 as at 31 March 2004, as shown in note (b).

(a) SSAP 24 Disclosures 

The Group operates defined benefit and defined contribution schemes in the parent and subsidiary undertakings.  The pension
scheme assets are held in separate trustee administered funds.

Total pension costs for the year amounted to €7.242 million (2003: €6.199 million) of which €4.152 million (2003: €3.409
million) was paid in respect of defined benefit schemes.

The pension costs relating to the Group’s defined benefit schemes are assessed in accordance with the advice of independent
qualified actuaries.  Either the attained age or the projected unit benefits method are used to assess pension costs.  The most
recent actuarial valuations range from 1 September 2000 to 1 April 2003.

The assumptions which have the most significant effect on the results of the actuarial valuations are those relating to the rates
of return on investments and the rates of increase in remuneration and pensions.  It was assumed that the rates of return on
investments would, on average, exceed annual remuneration increases by 2% and pension increases by 3% per annum.

At the dates of the most recent actuarial valuations, the market value of the assets of the Group’s defined benefit schemes
totalled €45.350 million (2003: €40.435 million).

After allowing for expected future increases in earnings and pension payments, the actuarial values of the various schemes’
assets were sufficient to cover between 68% and 116% (Group weighted average cover: 81%) of the benefits that had
accrued to the members of the individual schemes.  Any actuarial deficits are being spread over the average remaining service
lives of current employees.

At 31 March 2004, €200,000 (2003: €30,000) was included in creditors in respect of pension liabilities and €10.719 million
(2003: €8.981 million) was included in debtors in respect of pension prepayments.

In general, actuarial valuations are not available for public inspection, although the results of valuations are advised to the
members of the various pension schemes.

70

Notes to the Financial Statements for the year ended 31 March 2004

31. Pension and Similar Obligations - continued

(b)  Financial Reporting Standard 17 ‘Retirement Benefits’ Disclosures

The Group operates eight defined benefit schemes in the Republic of Ireland and three in the UK.  Full actuarial valuations
were carried out between 1 September 2000 and 1 April 2003 and updated to 31 March 2004 for Financial Reporting
Standard 17 disclosure purposes by a qualified independent actuary.  

The main financial assumptions used in the valuations were:

Irish Schemes          

2004 

2003            

2002       

Rate of increase in salaries            
Rate of increase in pensions in payment                     
Discount rate                                                                 
Inflation assumption         

4.00%
2.25% - 5.00%
5.25% 
2.25% 

4.00%             

2.25% - 5.00%   

5.50%              
2.25%              

4.00%  
2.00% - 5.00%  
6.00%  
2.25%  

UK Schemes 

2004

2003            

2002       

Rate of increase in salaries            
Rate of increase in pensions in payment              
Discount rate                                                            
Inflation assumption            

3.75%  
2.75% - 4.00% 
5.60% 
2.75%

3.75%        

2.25% - 4.00%   

4.00%  
2.25% - 4.00%  
6.25%  
2.25%  

5.25%             
2.25%             

The expected long term rates of return on the assets of the schemes were as follows:

Irish Schemes

Equities 
Bonds 
Property 
Cash 

UK Schemes  

Equities 
Bonds 
Property 
Cash 

2004

7.50%
4.50% 
5.50% 
3.00%  

2004    

7.50%  
4.50%
5.50% 
3.00% 

2003            

2002       

7.75%  
4.75%  
5.75%  
4.00%  

8.50%  
5.50%  
7.00%  
4.00%  

2003            

2002       

7.50%          
5.00% 
6.00%  
4.00%  

8.50%  
5.50% 
7.00%  
4.00%  

71

Notes to the Financial Statements for the year ended 31 March 2004

31. Pension and Similar Obligations - continued

The market value of the assets of the schemes were as follows:

RoI       

€’000  

29,020  
7,502  
2,145  
7,580  

46,247  
(58,035) 

(11,788)  

RoI  
€’000  
19,777  
7,753  
2,045  
6,383  

35,958  
(49,614)  

(13,656)  

RoI  
€’000  
26,966  
7,488  
2,419  
1,165  

38,038  
(40,317)  

(2,279)  

2004
UK  
€’000  

6,504  
1,161  
9  
159  

7,833  
(13,036)  

(5,203) 

2003       

UK 
€’000  
4,633  
998  
9  
167  

5,807  
(10,531)    

(4,724)  

2002       
UK  
€’000  
7,061  
848  
79  
364  

8,352  
(9,237)    

(885)  

Total   
€’000     

35,524 
8,663  
2,154  
7,739  

54,080 
(71,071)  

(16,991)  

2,124  

(14,867) 

Total    
€’000     
24,410  
8,751  
2,054  
6,550  

41,765  
(60,145)   

(18,380)  

2,573  

(15,807)  

Total    
€’000     
34,027  
8,336  
2,498  
1,529  

46,390  
(49,554)  

(3,164)  

443  

(2,721)  

Equities 
Bonds 
Property 
Cash 

Total market value at 31 March 2004
Present value of scheme liabilities

Related deferred tax asset   

Net pension funding deficit at 31 March 2004  

Equities 
Bonds 
Property 
Cash 

Total market value at 31 March 2003
Present value of scheme liabilities 

Related deferred tax asset     

Net pension funding deficit at 31 March 2003    

Equities 
Bonds 
Property 
Cash 

Total market value at 31 March 2002 
Present value of scheme liabilities 

Related deferred tax asset     

Net pension funding deficit at 31 March 2002   

72

Notes to the Financial Statements for the year ended 31 March 2004

31.  Pension and Similar Obligations - continued

If FRS 17 had been adopted in the financial statements, the Group’s shareholders’ funds and profit and loss reserve would be
as follows:

2004

2003

2002  

€’000 

€’000

€’000 

€’000  

€’000 

€’000

469,612
(14,867)

429,279   
(15,807)  

391,430  
(2,721)  

(10,538)  
1,317

(8,951)   
1,119   

(4,104)   
,216   

(9,221)   

(7,832)   

(3,888)  

445,524

405,640   

384,821    

(10,538)
1,317

321,739
(14,867)  

(9,221)

297,651

281,400   
(15,807)  

243,565  
(2,721)  

(8,951)  
1,119   

(4,104)   
,216   

(7,832)   

(3,888)  

257,761   

236,956  

Shareholders’ Funds 
Group shareholders’ funds excluding

pension deficit 

Net pension funding deficit  
Net pension prepayment
Related deferred tax asset 

Net pension prepayment 

Group shareholders’ funds including

pension deficit and pension prepayment

Profit and Loss Reserve          
Profit and loss reserve excluding 

pension deficit  

Net pension funding deficit 
Net pension prepayment 
Related deferred tax asset 

Net pension prepayment  

Profit and loss reserve including pension

deficit and pension prepayment  

Impact of FRS 17 on reported profit 

The following is a pro-forma indication of the impact on the Group profit and loss account if the Group had implemented FRS
17 in full in relation to its defined benefit pension schemes:

2004

Total net   Incremental       

SSAP 24       pension
cost under
pension
FRS 17
expense
€’000 
€’000

profit  

impact of
FRS 17
€’000

SSAP 24
pension
expense
€’000

2003       

Total net
pension
cost under
FRS 17
€’000

Incremental

profit  
impact of   
FRS 17
€’000

Impact on Group operating profit             
Pension cost/current service cost
Past service cost (benefit enhancements)

(4,152) 
-  

Total operating charge 

(4,152)  

(2,355)  
(30) 

(2,385)  

1,797

(30) 

1,767 

(3,409)  

- 

(3,409)  

(2,160)  
(141)  

(2,301)  

1,249  
(141)  

1,108    

Impact on other finance income            
Expected return on pension scheme assets
Interest on pension scheme liabilities 

Net return

-  
-  

-  

2,848  
(3,303)  

(455) 

2,848 
(3,303) 

(455)   

-  
-  

-  

3,643  
(2,971)  

,672  

3,643  
(2,971)  

,672    

Total net impact on reported profits

(4,152)  

(2,840)  

1,312 

(3,409)  

(1,629)   

1,780  

73

Notes to the Financial Statements for the year ended 31 March 2004

31. Pension and Similar Obligations - continued

Statement of total recognised gains and losses 

Actual return less expected return on pension scheme assets      
Experience gains and losses arising on the scheme liabilities
Changes in assumptions underlying the present value of the scheme liabilities

2004 
€’000

5,362
(3,424) 
(2,764)

2003     
€’000     

(13,394)  
(3,005)  
(5,869)    

Actuarial loss recognised in the statement of total recognised gains and losses 

(826) 

(22,268)    

Movement in deficit during the year 

Deficit in scheme at 1 April  
Movement in year:     
Current service cost 
Past service cost 
Contributions paid 
Other finance (expense)/income 
Actuarial loss 
Exchange 

Deficit in scheme at 31 March 

Experience gains and losses  

Difference between the expected and actual return on scheme assets 
Percentage of scheme assets 

Experience gains and losses on scheme liabilities 
Percentage of the present value of the scheme liabilities 

Total recognised in statement of total recognised gains and losses 
Percentage of the present value of the scheme liabilities 

2004
€’000

2003   
€’000     

(18,380) 

(3,164)    

(2,355) 
(30)
5,237 
(455) 
(826)
(182) 

(2,160)  
(141)  
8,275  
,672  
(22,268)  
,406  

(16,991)

(18,380)  

2004
€’000

5,362
10%

2003   
€’000     

(13,394)  

(32%)     

(3,424)
5%

(3,005)  

5%     

(826)  
1%

(22,268)  
37%  

74

Notes to the Financial Statements for the year ended 31 March 2004

32. Called up Equity Share Capital

Group and Company

Authorised     
152,368,568 ordinary shares of €0.25 each 

Issued
88,139,404 ordinary shares  (including 6,667,734 ordinary shares held as Treasury Shares) 
of €0.25 each, fully paid (2003: 88,139,404 ordinary shares (including 4,517,005 ordinary shares 
held as Treasury Shares) of €0.25 each, fully paid) 

90,000 ordinary shares of €0.25 each, €0.0025 paid  (2003: 90,000 ordinary shares 
of €0.25 each, €0.0025 paid) 

2004
€’000 

2003   
€’000  

38,092

38,092     

22,035

22,035     

-
22,035

-   
22,035  

Movements during year   

Ordinary shares of €0.25 each  

At 31 March 2004 and 31 March 2003 

No of shares  

(’000)

€’000

88,229  

22,035  

During the year the Group purchased 2,305,875 of its own ordinary shares of €0.25 each at a total cost of €24.986 million.
These shares are held as Treasury Shares and they are not included in the calculation of earnings per share from the date they
were purchased by the Group.

Under the DCC plc 1998 Employee Share Option Scheme, Group employees hold basic tier options to subscribe for 2,456,500 ordinary
shares and second tier options to subscribe for 2,647,584 ordinary shares.  The number of shares in respect of which basic tier and
second tier options may be granted under this Scheme may not exceed 5% of the total number of shares in issue in each case.

Under the DCC Sharesave Scheme, Group employees hold options to subscribe for 528,746 ordinary shares.  These options are
exercisable between June 2004 and February 2007.

Under the terminated DCC Employee Partly Paid Share Scheme, at 31 March 2004, 90,000 shares (2003: 90,000 shares)
remain partly paid.

All shares, whether fully or partly paid, carry equal voting rights and rank for dividends to the extent to which the total amount
payable on each share is paid up.

33. Share Premium Account

Group and Company 

At 1 April 
Premium on issue of shares 
Share issue expenses

At 31 March 

2004
€’000

2003   
€’000     

124,444
-
(6)

124,438

124,431  
13  
-  

124,444  

75

Notes to the Financial Statements for the year ended 31 March 2004

34. Other Reserves

(a)  Group 

Capital      

Conversion        Other

Reserve Fund  
€’000  

Reserves     
€’000  

Total
€’000  

At 31 March 2004 and 31 March 2003 

344  

1,056  

1,400  

(b)  Company     

At 31 March 2004 and 31 March 2003 

35. Profit and Loss

(a) Group

At 1 April  
Profit retained for the year 
Share buybacks (inclusive of costs)  
Re-issue of Treasury Shares (net of expenses) 
Exchange adjustments - associated undertakings 
Exchange adjustments - subsidiaries 

At 31 March  

Capital   

Conversion     
Reserve Fund     
€’000     

344 

2004
€’000

2003   
€’000     

281,400
57,755
(24,986)
1,128
(210)
6,652

243,565  
57,250  
-  
,217  
(1,761)  
(17,871)  

321,739

281,400  

In accordance with the Group’s accounting policy, goodwill arising on the acquisition of subsidiaries prior to 1 April 1998,
eliminated from the balance sheet through reserves, amounts to €100.079 million.  

(b)  Company     

At 1 April  
Profit retained 
Share buybacks (inclusive of costs)  
Re-issue of Treasury Shares (net of expenses) 

At 31 March 

2004 
€’000
34,265
59,281
(24,986) 
1,128

2003   
€’000     
9,598  
24,450  
-  
,217  

69,688

34,265  

The cost to the Group of €67.133 million to acquire the 6,667,734 shares held in Treasury has been deducted from the Group
and Company Profit and Loss Reserves.  These shares were acquired at prices ranging from €9.25 to €10.80 each between 
28 July 2000 and 27 November 2003.

36. Reconciliation of Movements in Equity Shareholders’ Funds

Group 

Profit for the financial year 
Dividends 

Equity share capital issued (net of expenses) 
Share buybacks (inclusive of costs) 
Exchange adjustments - associated undertakings 
Exchange adjustments - subsidiaries

Net movement in shareholders’ funds 
Opening equity shareholders’ funds  

Closing equity shareholders’ funds 

76

2004
€’000

2003   
€’000     

84,327
(26,572)

57,755
1,122
(24,986) 
(210) 

6,652

40,333
429,279

469,612

80,809  
(23,559)   

57,250  
,231  
-  
(1,761)  
(17,871)  

37,849    

391,430  

429,279  

Notes to the Financial Statements for the year ended 31 March 2004

37. Equity Minority Interests

Group 

At 1 April 
Acquisition of minority interest in subsidiary undertakings 
Share of profit for the financial year (note 12) 
Dividends to minorities 
Exchange and other adjustments 

At 31 March 

38. Capital Grants

Group 

At 1 April 
Received in year 
Acquisitions
Amortisation in year 
Exchange and other adjustments 

At 31 March 

Disclosed as due within one year (note 28) 

2004
€’000

3,632
-
341
(151)
259

4,081

2004
€’000

1,413
-
-
(173)
1

1,241

(129)

1,112

2003   
€’000     

4,010  
(200)  
513  
(764)  
73  

3,632  

2003   
€’000     

1,255  
69  
380  
(285)  
(6)  

1,413  

(128)   

1,285  

39. Acquisitions of Subsidiary Undertakings

The principal acquisitions completed during the year were DWS (a wine and spirits wholesaler), Savoury Foods (a foods
distributor), Varcity (IT software distributor) and a number of small oil and LPG distributors. 

A summary of the effect of acquisitions is as follows:

Tangible fixed assets   
Stocks   
Debtors   
Creditors   

Net assets acquired   
Goodwill   

Cost   

Satisfied by:     
Cash (note 41(c))   
Deferred consideration  

The fair value of the net assets acquired equalled the book value of net assets acquired.

Fair value of
subsidiary
undertakings
at acquisition

€’000     

,737
1,512
5
(1,215)

,

1,039
7,881

8,920

7,302
1,618

8,920

77

Notes to the Financial Statements for the year ended 31 March 2004

40. Reconciliation of Operating Profit to Net Cash Inflow from Operating Activities

Operating profit before goodwill amortisation 
Operating profit of associated undertakings 
Dividends received from associated undertakings 
Depreciation of tangible fixed assets 
Amortisation of capital grants 
Profit on sale of tangible fixed assets 
(Increase)/decrease in stocks 
(Increase)/decrease in debtors
Increase/(decrease) in creditors 
Other

Operating cash flow before exceptional costs 
Exceptional redundancy and restructuring costs 

Cash flow from operating activities 

2004
€’000

2003   
€’000     

120,876
(19,201)
3,094
29,401
(173)
(879) 
(3,905) 
(539) 

25,050
(1,808) 

151,916
(10,670) 

141,246

114,332  
(17,709)  
1,317  
29,495  
(285)  
(1,285)  
4,346  
2,658 
(32,744)  
(1,642)  

98,483  
(6,016) 

92,467  

41. Analysis of Cashflows for Headings netted in the Consolidated Cash Flow Statement

2004
€’000

2003   
€’000  

8,540
(11,998) 
(151) 

13,594  
(17,694)  
(764)  

(3,609)  

(4,864)     

(32,084)  
3,992  
-

(39,166)  
4,265  
, 69  

(28,092)  

(34,832)    

(7,302)

(484)  
-
- 
- 
(6,674)

(79,834)  
(112)  
(320)  
1,126  
13,606  
(7,949)  

(14,460) 

(73,483)    

1,122
(24,986) 
(4,976)
(61,551) 
,152 

,231 
-  
(2,248)
145,836  
-   

(90,239)  

143,819  

(a)  Returns on investments and servicing of finance          
Interest received and similar receipts 
Interest paid and similar payments 
Dividends paid to minority interests 

Net cash outflow from returns on investments and servicing of finance 

(b) Capital expenditure          
Expenditure on tangible fixed assets 
Proceeds on sale of tangible fixed assets 
Grants received

Net cash outflow from capital expenditure

(c) Acquisitions and disposals          
Purchase of subsidiary undertakings (net of debt acquired) (note 39) 
Investment in associated undertakings (note 18) 
Purchase of minority interests  
Sale of subsidiary 
Sale of associated undertakings  
Payment of deferred consideration in respect of acquisitions

Net cash outflow from acquisitions and disposals 

(d)  Financing          
Issues of share capital (including share premium) 
Share buybacks 
Capital element of finance lease payments  
Loans (repaid)/drawn down 
Investment by minorities 

Net cash outflow from financing

78

Notes to the Financial Statements for the year ended 31 March 2004

42. Analysis of Movement in Net Funds

Cash in hand and at bank 
Overdrafts 

Term deposits 
Bank loans and loan notes 
Unsecured Notes 2008/11 
Finance leases 

Total 

43. Capital Commitments

Group       

Capital expenditure that has been contracted for but has

not been provided for in the financial statements 

Capital expenditure that has been authorised by the Directors

but has not yet been contracted for 

44. Operating Lease Commitments

At      

1 April  
2003  
€’000  

Cash     Exchange  
Flow   Movements  
€’000          €’000  

At   
31 March    
2004   
€’000     

181,397  
(64,392)  

117,005  
172,589  
(149,006)  
(94,258)  
(26,271)  

(68,545)  
16,226  

(52,319)  
27,105  
61,551  
-  
4,976  

2,346  
(3,619)  

(1,273)  
5,724  
,967  
(3,354)  
(719)  

115,198
(51,785)

63,413
205,418
(86,488)
(97,612)
(22,014)

20,059  

41,313  

1,345  

62,717

2004   
€’000 

2003     
€’000     

3,732

1,545  

28,758

21,680  

At 31 March 2004 the Group had annual commitments under operating leases expiring as follows:

2004

Land & 
buildings  
€’000  

Other  
€’000  

Total
€’000 

Land &
buildings  
€’000  

2003   

Other  
€’000  

Expiring within one year
Expiring between two and five years 
Expiring after five years 

436  
1,109  
3,331         

4,876  

752  
1,743  
-  

2,495  

1,188  
2,852  
3,331  

7,371 

82  
556  

2,670           

374       
696    
-    

3,308  

1,070    

Total    

€’000 

456 
1,252 
2,670   

4,378  

45. Contingent Liabilities

(a) Bank and Other Loans
The Company and certain subsidiaries have given guarantees of up to €256.036 million (2003: €331.115 million) in respect of
borrowings by the Company and other Group undertakings.

(b) Other
Included in trade creditors is an amount of approximately €8.616 million (2003: €9.435 million) due to creditors who have
reserved title to goods supplied.  Since the extent to which these creditors are effectively secured at any time depends on a
number of conditions, the validity of some of which is not readily determinable, it is not possible to indicate how much of the
above amount was effectively secured by reservation of title.  However, the amount referred to above is matched in terms of
net book value of fixed assets and stocks of raw materials in the possession of the Group which were supplied subject to
reservation of title and accordingly the creditors referred to could be regarded as effectively secured to the extent of at least
this amount.

Pursuant to the provisions of Section 17, Companies (Amendment) Act, 1986, the Company has guaranteed the liabilities of
Alvabay Limited, Atlas Oil Refining Company Limited, Classic Fuel & Oil Limited, DCC Healthcare Limited, DCC SerCom Limited,
Emo Oil Limited and Flogas Ireland Limited, and, as a result, these companies will be exempted from the filing provisions of
Section 7, Companies (Amendment) Act, 1986.

79

Notes to the Financial Statements for the year ended 31 March 2004

46. Reporting Currency
The primary currency used in these financial statements is the euro which is denoted by the symbol €.  The exchange rates
used in translating sterling balance sheets and profit and loss account amounts were as follows:

Balance sheet (closing rate)  
Profit and loss (average rate)*  

* Average exchange rates adjusted for the impact of profit and loss hedges.  

2004
€1=Stg£
0.666
0.647

2003    
€1=Stg£     
0.690 
0.593  

47. Transactions with Related Parties
On 9 June 2003, the Company acquired 0.3% of the share capital of SerCom Distribution Limited through the acquisition of
shares from the management of that company at a cost of €1.012 million.  Put and call options exist over the remaining
shares exercisable in 2004.

On 8 September 2003, the Company increased its shareholding in Envirotech to 80.0% by acquiring 10.0% of the issued share
capital from the minority shareholders in Envirotech.  The consideration amounted to €1.108 million and was satisfied in cash.
The remaining 20.0% shareholding was transferred as consideration for a 5.7% shareholding in DCC Environmental Limited
and is subject to put and call options up to 2005.  

The Company increased its shareholding in TechnoPharm to 100.0% through the acquisition of 16.7% of the issued share
capital from minority shareholders on 31 October 2003.  The total value of the consideration amounted to €4.507 million
which was satisfied in cash.  

48. Approval of Financial Statements
The financial statements were approved by the Board of Directors on 14 May 2004.

80

81

82

“

DCC has the business
platforms, the management
capacity and the financial
strength to pursue
ambitious organic and
acquisition growth.

”

83

Group Directory
Shareholder Information
Corporate Information
Index

84

Group Directory

Energy
DCC Energy Limited
DCC House,
Stillorgan,
Blackrock, Co. Dublin, Ireland

DCC Energy Limited
Airport Road West,
Sydenham,
Belfast BT3 9ED, Northern Ireland

Emo Oil Limited
Clonminam Industrial Estate,
Portlaoise, Co. Laois, Ireland

Holding and divisional 
management company

Marketing and distribution 
of petroleum products

Marketing and distribution 
of petroleum products

Flogas UK Limited
81 Raynsway,
Syston, Leicester LE7 1PF, England 

Processing and distribution 
of liquified petroleum gas

Flogas Ireland Limited
Dublin Road,
Drogheda, Co. Louth, Ireland

Scottish Fuels
Callendar Boulevarde,
Callendar Business Park,
Falkirk FK1 1XR, Scotland

IT Distribution 
DCC SerCom Limited
DCC House,
Stillorgan,
Blackrock, Co. Dublin, Ireland

Distrilogie SA
12, Rue des Frères Caudron,
78147 Vélizy Cedex, France 

Manufacture and distribution 
of liquified petroleum gas

Marketing and distribution 
of petroleum products

Holding and divisional 
management company

Distribution of computer 
storage products

Gem Distribution Limited
St. George House,
Parkway, Harlow Business Park,
Harlow, Essex CM19 5QF, England 

Micro Peripherals Limited
Shorten Brook Way,
Altham Business Park, Altham,
Accrington, Lancashire BB5 5YJ, England

SerCom Distribution Limited
DCC House,
Stillorgan,
Blackrock, Co. Dublin, Ireland

Sharptext Limited
M50 Business Park,
Ballymount Road Upper,
Dublin 12, Ireland

Distribution of computer software

Distribution of computer products

Holding and divisional 
management company

Distribution of computer products 
and office equipment

Tel: + 353 1 2799 400
Fax: + 353 1 2831 017
email: energy@dcc.ie
www.dcc.ie

Tel: + 44 28 9073 2611
Fax: + 44 28 9073 2020
email: enquiries@emooil.com
www.emooil.com

Tel: + 353 502 747 00
Fax: + 353 502 747 75
email: info@emo.ie
www.emo.ie

Tel: + 44 116 2649000
Fax: + 44 116 2649001
email: info@flogas.co.uk
www.flogas.co.uk

Tel: + 353 41 9831 041
Fax: + 353 41 9834 652
email: info@flogas.ie
www.flogas.ie

Tel: + 44 1324 408 000
Fax: + 44 1324 408 109
email: info@scottishfuels.net
www.scottishfuels.com

Tel: + 353 1 2799 400
Fax: + 353 1 2831 017
email: sercom@dcc.ie
www.dcc.ie

Tel: + 33 1 34 58 47 00
Fax: + 33 1 34 58 47 27
email: info@distrilogie.com
www.distrilogie.com

Tel: + 44 1279 822 800
Fax: + 44 1279 416 228
email: info@gem.co.uk
www.gem.co.uk

Tel: + 44 1282 776 776
Fax: + 44 1282 770 001
email: info@micro-p.com
www.micro-p.com 

Tel: + 353 1 2799 400
Fax: + 353 1 2831 017
email: sercom@dcc.ie
www.sercomdistribution.com

Tel: + 353 1 4087 171
Fax: + 353 1 4193 111
email: sharptext@sharptext.com
www.sharptext.com 

Company Name & Head Office Address

Principal Activity

Tel/Fax/Email/Web

85

Group Directory - continued

Healthcare 
CasaCare GmbH & Co KG
Gewerbestraße 13,
32584 Löhne, Germany

Days Medical Aids Limited
Litchard Industrial Estate,
Bridgend,
Mid Glamorgan CF31 2AL, Wales

DCC Healthcare Limited
DCC House,
Stillorgan,
Blackrock, Co. Dublin, Ireland

EuroCaps Limited
Crown Business Park,
Dukestown,
Tredegar, Gwent NP22 4EF, Wales

Fannin Limited
Blackthorn Rd.,
Sandyford Industrial Estate,
Foxrock, Dublin 18, Ireland

TechnoPharm Limited
Pharmapark,
Chapelizod,
Dublin 20, Ireland

Manufacture and distribution 
of rehabilitation and mobility products

Manufacture and distribution 
of rehabilitation and mobility products

Holding and divisional 
management company

Contract manufacture 
of soft gel capsule nutraceuticals

Distribution of medical and 
scientific equipment and consumables

Distribution of pharmaceutical 
products and medical devices 

Thompson and Capper Limited
9-12 Hardwick Road,
Astmoor Industrial Estate,
Runcorn, Cheshire WA7 1PH, England

Contract manufacture and packing
of tablet and hard gel 
capsule nutraceuticals

Virtus Limited
Adamstown,
Lucan,
Co. Dublin, Ireland

Manufacture and distribution 
of pneumatic healthcare appliances

Tel: + 49 5731 786 50
Fax: + 49 5731 786 520
email: sales@casacare.de
www.casacare.de

Tel: + 44 1656 657 495
Fax: + 44 1656 767 178
email: sales@daysmedical.com
www.daysmedical.com

Tel: + 353 1 2799 400
Fax: + 353 1 2831 017
email: healthcare@dcc.ie
www.dcc.ie

Tel: + 44 1495 308 900
Fax: + 44 1495 308 990
email: enquiries@softgels.co.uk
www.softgels.co.uk

Tel: + 353 1 294 4500
Fax: + 353 1 295 3818
email: info@fanninhealthcare.com
www.fanninhealthcare.com

Tel: + 353 1 626 5006
Fax: + 353 1 626 5071
email: info@technopharm.com
www.technopharm.com

Tel: +44 1928 573734 
Fax: +44 1928 580694
email: enquiries@tablets2buy.com
www.tablets2buy.com

Tel: + 353 1 628 0571
Fax: + 353 1 628 0572
email: info@virtus.ie
www.virtus.ie

Company Name & Head Office Address

Principal Activity

Tel/Fax/Email/Web

86

Group Directory - continued

Manufacture, distribution and 
service of food equipment

Tel: + 353 1 4291 500
Fax: + 353 1 4509 570
email: info@broderickbros.ie

Food and Beverage
Broderick Bros. Limited
Cloverhill Industrial Estate,
Clondalkin,
Dublin 22, Ireland

DCC Foods Limited
DCC House,
Stillorgan,
Blackrock, Co. Dublin, Ireland

Kelkin Limited
Unit 1,
Crosslands Industrial Park,
Ballymount Cross,
Dublin 12, Ireland

Robt. Roberts Limited
79 Broomhill Road,
Tallaght,
Dublin 24, Ireland

Environmental 
Atlas Environmental Ireland Limited
Clonminam Industrial Estate,
Portlaoise,
Co. Laois, Ireland

DCC Environmental Limited
DCC House,
Stillorgan,
Blackrock, Co. Dublin, Ireland

Environmental Technology
Manufacturing Limited
Ballycurreen Industrial Estate,
Kinsale Road,
Cork, Ireland 

Holding and divisional 
management company

Marketing and distribution 
of branded healthfood products

Distribution of food and beverages

Waste treatment / 
remediation and oil reprocessing

Holding and divisional 
management company

Manufacture and distribution 
of water treatment chemicals

Tel: + 353 1 2799 400
Fax: + 353 1 2831 017
email: foods@dcc.ie
www.dcc.ie

Tel: + 353 1 4600 400
Fax: + 353 1 4600 411
email: info@kelkin.ie
www.kelkin.ie

Tel: + 353 1 4047 300
Fax: + 353 1 4599 369
email: info@robt-roberts.ie
www.robt-roberts.ie

Tel: + 353 502 786 00
Fax: + 353 502 747 57
email: info@atlasireland.ie
www.atlasireland.ie

Tel: + 353 1 2799 400
Fax: + 353 1 2831 017
email: environmental@dcc.ie
www.dcc.ie

Tel + 353 21 496 2554
Fax: + 353 21 496 2345
email: info@envirotech.ie
www.envirotech.ie

Tel: + 353 61 707 400
Fax: + 353 61 707 401
email: info@ses-shannon.ie 

Shannon Environmental Services Limited Waste treatment
Smithstown Industrial Estate,
Shannon,
Co. Clare, Ireland

Supply Chain Management
SerCom Solutions Limited
Cloverhill Industrial Estate,
Clondalkin,
Dublin 22, Ireland

Provision of supply chain services 

Tel: + 353 1 405 6500
Fax: + 353 1 405 6555
email:sales@sercomsolutions.com
www.sercomsolutions.com

Company Name & Head Office Address

Principal Activity

Tel/Fax/Email/Web

87

Shareholder Information

Shareholder Analysis at 14 May 2004

Range of shares held
Over 250,000        
100,001 – 250,000
10,001 – 100,000
Less than 10,000

Total 

Number of shares*  % of shares
81.4 
5.8 
7.4 1
5.4 

66,390,634 
4,725,247 
6,019,960 
4,425,829 

Number of accounts % of accounts  
1.3  
43 
0.9  
30 
71 
5.1  
92.7  
3,119 

81,561,670 

100.0 

3,363 

100.0  

* Excludes 6,667,734 shares held as Treasury Shares.

Share Price Data – closing prices (€)
Year ended 31 March 2004 
Year ended 31 March 2003 

High 
12.25 
13.25 

Low 
9.79 
9.10 

31 March 
12.15  
9.75  

The market capitalisation of DCC plc at
31 March 2004 was €991 million (2003:
€816 million) and at 14 May 2004 was
€1,011 million (€12.40 per share).

Share Listings
DCC’s shares are traded on the Irish
Stock Exchange and the London Stock
Exchange. DCC’s shares are quoted on
the official lists of both the Irish Stock
Exchange and the UK Listing Authority.

ISIN: IE0002424939
ISE Xetra: DCC
Bloomberg: DCC ID, DCC LN
Reuters: DCC.I, DCC.L

Website - www.dcc.ie
DCC’s website provides comprehensive
corporate and financial information to
the investment community and other
interested parties. It incorporates a
variety of useful features which enable
users to access, analyse and download
current and archived financial data and
annual reports, register for news and
other announcements and view
interactive audio and slideshow
investor presentations.

Investor Relations
For investor enquiries please contact:

Kieran Conlon,
Investor Relations Manager,
DCC plc, DCC House, Brewery Road,
Stillorgan, Blackrock, Co Dublin, Ireland.
+ 353 1 2799 400   
Tel:
+ 353 1 2799 418
Fax:
investorrelations@dcc.ie
email:

Registrar
Administrative enquiries about the
holding of DCC shares should be
directed in the first instance to the
Company’s Registrar:

Computershare Investor Services
(Ireland) Limited, Heron House,
Corrig Road, Sandyford Industrial
Estate, Dublin 18, Ireland.
Tel:
Fax:
email: web.queries@computershare.ie

+ 353 1 216 3100 
+ 353 1 216 3151

Annual General Meeting
The Annual General Meeting will be
held at The Four Seasons Hotel,
Simmonscourt Road, Ballsbridge,
Dublin 4, Ireland on Thursday 8 July
2004 at 11.00 a.m. The Notice of
Meeting together with an explanatory
letter from the Chairman and a proxy
card accompany this Report.

Financial Calendar
Preliminary results announced  
17 May 2004  
Ex-dividend date for the final dividend
26 May 2004  
Record date for the final dividend
28 May 2004  
Annual Report posted
3 June 2004  
Annual General Meeting 
8 July 2004  
Proposed payment date for 
final dividend 
14 July 2004  
Interim results announced 
early November 2004  
Payment date for the interim dividend
early December 2004 

Amalgamation of Accounts
Shareholders who receive duplicate
sets of Company mailings owing to
multiple accounts in their names
should write to the Company’s
Registrar to have their accounts
amalgamated.

Dividends 
Shareholders are offered the option of
having dividends paid in euro or
pounds sterling. Shareholders may
also elect to receive dividend payments
either by cheque or by electronic funds
transfer directly into their bank
accounts. Shareholders should contact
the Company’s Registrar for details.

Dividend Withholding Tax (“DWT”)
The Company is obliged to deduct tax at
the standard rate of income tax in
Ireland (currently 20%), from dividends
paid to its shareholders, unless a
particular shareholder is entitled to an
exemption from DWT and has
completed and returned to the
Company’s Registrar a declaration form
claiming entitlement to the particular
exemption. Exemption from DWT may
be available to shareholders resident in
another EU Member State or in a
country with which the Republic of
Ireland has a double taxation
agreement in place and non-individual
shareholders resident in Ireland (e.g.
companies, pension funds, charities etc.).

An explanatory leaflet entitled
“Dividend Withholding Tax – General
Information Leaflet” has been
published by the Irish Revenue
Commissioners and can be obtained by
contacting the Company’s Registrar at
the above address. This leaflet can also
be downloaded from the Irish Revenue
Commissioners web site at
www.revenue.ie/pdf/dwtinfv3.pdf
Declaration forms for claiming an
exemption are available from the
Company’s Registrar.

CREST
DCC is a member of the CREST share
settlement system. Shareholders may
continue to hold paper share
certificates or hold their shares in
electronic form.

88

Corporate Information

Solicitors

Auditors

Registrar 

William Fry Solicitors
Fitzwilton House
Wilton Place
Dublin 2
Ireland

PricewaterhouseCoopers
Chartered Accountants
& Registered Auditors
George’s Quay
Dublin 2
Ireland

Computershare Investor Services
(Ireland) Limited
Heron House
Corrig Road
Sandyford Industrial Estate
Dublin 18
Ireland

Stockbrokers

Registered and Head Office

Bankers

DCC House
Stillorgan
Blackrock
Co. Dublin
Ireland

Davy Stockbrokers
49 Dawson Street
Dublin 2
Ireland

Cazenove
20 Moorgate
London EC2R 6DA
England

ABN AMRO Bank
Allied Irish Banks
Bank of Ireland
BNP Paribas
Deutsche Bank
IIB Bank
KBC Bank
Royal Bank of Scotland
Ulster Bank

89

Index

Accounting Convention
Accounting Policies
Acquisitions and Development
Acquisitions of Subsidiary Undertakings  
Amalgamation of Accounts
Annual General Meeting
Approval of Financial Statements 
Associated Undertakings
Audit Committee
Auditors’ Report

Bank and Other Debt
Board Changes
Board Committees

Capital Commitments 
Capital Grants 
Cash and Term Deposits
Chairman’s Statement
Chief Executive’s Review
Commodity Price Risk Management
Company Balance Sheet
Consolidated Balance Sheet
Consolidated Cash Flow Statement
Consolidated Profit and Loss Account
Contingent Liabilities 
Corporate Governance
Corporate Information
Corporate Social Responsibility
Cost of Sales and Net Operating Costs
Creditors, Trade and Other 
Credit Risk Management
CREST
Currency Risk Management

Page

46
46
9
77
88
88
80
61
36
44

64
9
35

79
77
63
8
10
25
51
50
52
48
79
34
89
28
55
69
25
88
25

90

Debtors 
Deferred Tax 
Depreciation
Derivative Financial Instruments 
Directors’ and Company Secretary’s Interests
Directors of the Company
Directors’ Remuneration
Directors’ Report
Directors’ Share Options
Dividend Cover
Dividends 
Dividend Withholding Tax

Earnings Per Share
Employee Information 
Employees and Management
Environment, health and safety
Events Since the Year End
Exceptional Items 

Page

63
57, 70
60
65
42
2
39
37
41
24
58, 88
88

58
55
31
30
38
56

Fair Value of Financial Instruments
Finance Leases 
Financial Assets 
Financial Calendar
Financial Review
Financial Snapshot
Five Year Summary 
and Key Ratios 
Fixed Assets 
Forward Contracts - currency and commodity

67
65
61
88
22
Inside Back Cover 

Inside Back Cover 
60
67

Index - continued

Going Concern
Goodwill 
Group at a Glance
Group Directory

Health and Safety

Page

36
56, 59
Inside Front Cover
85

Interest Payable & Similar Charges 
Interest Rate Risk Management
Internal Control
Investor Relations

Minority Interests 

Net Cash
Note of Historical Cost Profits and Losses
Notes to the Financial Statements

Operating Cash Flow
Operating Lease Commitments 
Operating Reviews 
Energy
IT Distribution 
Healthcare
Food and Beverage
Environmental
Other

38

56
25, 65
36
88

58, 77

79
49
53

78
79

17
17
18
18
19
19

Pension and Similar Obligations 
Pensions - Directors
Private Placement
Provisions for Liabilities and Charges 

70
39
38, 64
69

Reconciliation of Movements in Equity
Shareholders’ Funds 
Reconciliation of Net Cash Flow to
Movement in Net Cash
Reconciliation of Operating Profit to Net Cash 
Inflow from Operating Activities
Registrar
Related Party Transactions 
Remuneration Committee Report
Reporting Currency 
Reserves 
Return on Capital Employed (ROCE)

Page

76

52

78
88
80
39
80
76
24

53

Segmental Information 
Senior Group and Subsidiary Company
4, 5
Management
8
Share Buybacks
75
Share Capital 
88
Share Listings
75
Share Premium 
88
Share Price Data
88
Shareholder Information
76
Shareholders’ Funds 
Statement of Directors’ Responsibilities
43
Statement of Total Recognised Gains and Losses 49
63
Stocks 
62
Subsidiary Undertakings 
38
Substantial Shareholdings

Taxation 
Treasury Policy and Management

Undrawn Bank Borrowing Facilities

Website

57
25

68

88

91

Operating profit from
continuing activities (€’m)

50

40

30

20

10

0

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 15.6%

ENERGY 

35

30

25

20

15

10

5

0

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 29.1%

IT DISTRIBUTION

20

15

10

5

0

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 23.1%

HEALTHCARE

12

10

8

6

4

2

0

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 15.5%

FOOD AND BEVERAGE

6

5

4

3

2

1

0

99

00 01 02 03 04

5 Year CAGR 126.3%

ENVIRONMENTAL

15

12

9

6

3

0

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 9.0%

OTHER 
(HOMEBUILDING AND 
SUPPLY CHAIN MANAGEMENT)

2004

3

2

1

Geographical analysis 
of operating profit from 
continuing activities:

1 UK 
2 Rep of Ireland
3 Other 

2004
50%
47%
3%

Market sector analysis of
operating profit from 
continuing activities

Compound annual growth rate:

5 years

10 years

Continuing Reported
16.3% 13.7%
17.8% 16.1%

Growth   

Reported

Constant
currency*

+8.4%
-3.1%
+19.1%
-7.5%
+56.7%

+16.1%
+3.8%
+21.2%
-7.9%
+63.7%

2004
€’m

45.8
31.3
13.6
10.9
5.0

14.3

+40.5%

+40.5%

Energy
IT Distribution
Healthcare
Food and Beverage
Environmental
Other (Homebuilding and 
Supply Chain Management)

Total

120.9

+8.8%

+14.1%

*  All constant currency figures quoted in this report are based on retranslating current

year figures at prior year translation rates

Adjusted earnings per share

Compound annual growth rate:

5 years

10 years

16.3%
17.3%

€'m
120

100

80

60

40

20

0

cent
120

100

80

60

40

20

0

Operating profit from
continuing activities (€’m)

50

40

30

20

10

0

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 15.6%

ENERGY 

35

30

25

20

15

10

5

0

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 29.1%

IT DISTRIBUTION

20

15

10

5

0

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 23.1%

HEALTHCARE

12

10

8

6

4

2

0

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 15.5%

FOOD AND BEVERAGE

6

5

4

3

2

1

0

99

00 01 02 03 04

5 Year CAGR 126.3%

ENVIRONMENTAL

15

12

9

6

3

0

95 96 97 98 99

00 01 02 03 04

10 Year CAGR 9.0%

OTHER 
(HOMEBUILDING AND 
SUPPLY CHAIN MANAGEMENT)

2004

3

2

1

Geographical analysis 
of operating profit from 
continuing activities:

1 UK 
2 Rep of Ireland
3 Other 

2004
50%
47%
3%

Market sector analysis of
operating profit from 
continuing activities

Compound annual growth rate:

5 years

10 years

Continuing Reported
16.3% 13.7%
17.8% 16.1%

Growth   

Reported

Constant
currency*

+8.4%
-3.1%
+19.1%
-7.5%
+56.7%

+16.1%
+3.8%
+21.2%
-7.9%
+63.7%

2004
€’m

45.8
31.3
13.6
10.9
5.0

14.3

+40.5%

+40.5%

Energy
IT Distribution
Healthcare
Food and Beverage
Environmental
Other (Homebuilding and 
Supply Chain Management)

Total

120.9

+8.8%

+14.1%

*  All constant currency figures quoted in this report are based on retranslating current

year figures at prior year translation rates

Adjusted earnings per share

Compound annual growth rate:

5 years

10 years

16.3%
17.3%

€'m
120

100

80

60

40

20

0

cent
120

100

80

60

40

20

0

Financial Snapshot
5 Year Summary

Profit & Loss Account
Year ended 31 March

Turnover
Operating profit before operating

exceptional items

Operating exceptional items
Operating profit
Net interest payable
Profit on ordinary activities before goodwill

amortisation, non-operating net
exceptional items and tax

Goodwill amortisation
Non-operating net exceptional items
Profit before taxation
Taxation
Minority interests
Profit attributable to Group shareholders

Earnings per share
-   Basic (cent)
-   Basic adjusted (cent)

Dividend per share (cent)

Dividend cover (times)

Interest cover (times)

Consolidated Balance Sheet
As at 31 March

Tangible fixed assets
Associated undertakings
Goodwill

Net current assets
Net cash

Shareholders' funds
Minority interests
Other long term creditors/provisions

Movement in working capital
Capital expenditure
Acquisitions
Development expenditure

Operating cash flow

2000
€’m

2001
€’m

2002
€’m

2003
€’m

2004
€’m

1,527.0

1,870.1

2,048.9

2,272.4

2,198.0

77.7
-
77.7
(6.4)

71.3
(3.5)
71.4 
139.2
(18.7)
(0.7)
119.8

137.39
68.80

17.60

3.9

12.1

2000
€’m

123.1
34.6
75.6
233.3
30.6
89.2
353.1

329.1
3.3
20.7
353.1

(15.8)
29.0
39.1
52.3

96.3

91.7
-
91.7
(4.4)

87.3
(4.9)
-
82.4
(13.1)
(1.2)
68.1

78.98
84.69

21.12

4.0

20.8

2001
€’m

135.2
38.5
84.5
258.2
31.1
83.2
372.5

353.7
3.5
15.3
372.5

19.9 
34.1
20.2
74.2

83.4

102.7
-
102.7
(5.0)

97.7
(5.7)
(1.1)
90.9
(13.7)
(0.9)
76.3

90.26
98.30

24.50

4.0

20.5

2002
€’m

159.2
39.0
118.3
316.5
38.7
63.1
418.3

391.4
4.0
22.9
418.3

(6.9)
37.3
65.6
96.0

120.3

114.3
(2.9)
111.4
(5.0)

106.4
(7.3)
(1.7)
97.4
(15.3)
(1.3)
80.8

120.9
(2.3)
118.6
(4.8)

113.8
(8.3)
(5.9)
99.6
(14.5)
(0.8)
84.3

96.66
111.00

101.98
121.89

28.18

32.40

3.9

23.0

2003
€’m

209.4
40.3
132.1
381.8
45.3
20.1
447.2

429.3
3.6
14.3
447.2

25.7
40.7
80.3
146.7

98.5

3.8

25.2

2004
€’m

212.3
53.8
129.6
395.7
25.3
62.7
483.7

469.6
4.1
10.0
483.7

(20.6)
30.5
9.2
19.1

151.9

Return on tangible capital employed (%)
Return on total capital employed (%)

40.6%
20.9%

48.1%
23.7%

46.3%
23.1%

42.2%
22.0%

39.8%
21.3%

Average number of employees

2,933 

3,056 

3,361

3,685 

3,768 

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