Annual Report and Accounts 2006 - DCC plc

10chairman’s statement“ Over the past twelve months the robustnessof DCC’s balanced business model has againbeen demonstrated.”OverviewDCC achieved growth in adjustedearnings per share in the year to 31March 2006 of 14.6% to 157.23 cent.Over the past ten years the businesshas achieved compound annualgrowth in adjusted earnings pershare of 17.3%.Dividend increase of 15%The Directors are recommending afinal dividend of 27.31 cent per sharewhich, when added to the interimdividend of 15.54 cent per share,gives a total dividend of 42.85 centfor the year, an increase of 15.0%over the prior year. DCC has grownits dividends at a compound rate of17.2% over the last ten years and15.2% over the last five years. Thedividend is covered 3.7 times byadjusted earnings per share (3.7times in 2005). The final dividendwill be paid on 14 July 2006 toshareholders on the register at theclose of business on 26 May 2006.Acquisitions anddevelopmentAcquisition and developmentexpenditure in the year amountedto €120.8 million, of which €57.9million related to capital expenditure.DCC’s ongoing acquisition searchprocess resulted in the completionof a number of acquisitions at a totalcommitted cost of €62.9 million.The cash impact of acquisitions inthe year was €54.7 million.DCC Energy acquired a number ofsmaller British oil distributors duringthe year, as part of the ongoingplanned expansion of its Britishbased oil business.On 13 June 2005, DCC Healthcareexpanded its acute and communitycare business through the acquisitionof British based Physio-MedServices, a market-leading supplier ofa broad range of physiotherapy andrehabilitation equipment andconsumables to physiotherapists,occupational therapists, podiatrists,chiropractors and end users.On 15 June 2005, DCC SerComacquired Pilton Company, a leadingdistributor of DVDs, computer gamesand other products to the homeentertainment market in Ireland, witha developing business in Britain.On 6 July 2005, DCC SerComexpanded its Continental Europeanoperations into Belgium, Holland andLuxembourg through the acquisitionof the trade, goodwill and certainassets of AB Computing. Thisbusiness is complementary to DCCSerCom’s operations in France,Spain and Portugal.In May 2006, DCC Environmentalacquired a 50% shareholding in theWilliam Tracey group of companies,Scotland’s leading recycling andwaste management business. Theacquisition increases the scaleand technical expertise of DCCEnvironmental and also achieves thedual objective of expanding into thenon-hazardous waste business andentering the British market.The Group is actively pursuingfurther acquisition opportunities inall core areas.