Annual Report and Accounts 2006 - DCC plc

17Performance for the year to 31 March 2006Change on prior year2006 2005 Reported ConstantcurrencyRevenue €1,831.6m €1,240.6m +47.6% +47.7%Operating profit €56.0m €51.8m +8.0% +9.4%Return on capital employed- excluding intangible assets 53.8% 53.4%- including intangible assets 24.5% 25.3%DCC Energy achieved excellent profitgrowth in the year. The businessdelivered 2.9 billion litres of fuelproducts, a volume increase of19.0% over the prior year.The LPG business performedsatisfactorily against a challengingbackground of significantly increasingproduct costs.The oil business generated stronggrowth benefiting from the successfulintegration of the acquisitions in theprior year of Shell Direct UK andDyneley Holdings. Both of theseacquisitions performed ahead ofexpectations and have provided theoil business in Britain with a goodplatform for further growth.DCC Energy is a highly cashgenerative business, generatinghigh returns on capital.Strategy and developmentThe Group’s strategy for the businessis to maximise shareholder valuethrough organic and acquisition growth.Over the past five yearsapproximately €150 million hasbeen spent on acquisitions.A number of smaller oil distributorswere acquired during the year.2.92.52.12.01.71.41.10.80.70.697 98 99 00 01 02 03 04 05 06DCC Energy - sales volumebillion litres1997 - 2006Queen Elizabeth lights the TrafalgarBeacon. Flogas supplied the gas andtechnical expertise for the beacon.28%27%45%DCC Energy - product splitIndustrial/CommercialTransportDomesticFollowing the acquisitions of BP’sScottish business in September 2001and of Shell Direct in November 2004,DCC Energy now has a nationwide oildistribution infrastructure in Britain.This provides an excellent platformfrom which to grow in the highlyfragmented oil distribution industry.DCC markets and sells significantvolumes of transport fuels via arange of branded fuel cards.