Annual Report and Accounts 2006 - DCC plc

More documents

Recommendations

Info

24operating reviewDCC Environmentalbusiness reviewTommy BreenManaging DirectorDCC EnvironmentalDCC Environmental provides a broad range of wastemanagement services to the industrial/commercial sectorsand local authorities in both Britain and Ireland. DCCEnvironmental currently employs approximately 310 people.DCC Environmental is the leadinghazardous waste treatment businessin Ireland. The business operatesthree Environmental ProtectionAgency licenced waste facilities inthe Republic of Ireland and twoEnvironment & Heritage Servicelicenced hazardous waste facilities inNorthern Ireland. These facilities offera wide range of services includingsoil remediation, oil recycling, metalrecovery and waste transfer. Thebusiness also has a field servicesteam that carries out wastetreatment on customers’ sites. Thisteam also offers an emergencyresponse function to deal withenvironmental incidents on a 24 hourbasis. DCC Environmental’s Irishbusinesses will operate under a newbrand, enva, which is being launchedat the end of June 2006.In May 2006, DCC announced theacquisition of a 50% shareholdingin the William Tracey group ofcompanies, Scotland’s leadingrecycling and waste managementbusiness. Founded in 1948,William Tracey has a reputation forinnovation and creativity in recycling.The group operates from six freeholdsites in Scotland and carries out abroad range of activities includingmaterials recycling, hazardous wastetreatment, landfill and renewableenergy generation from landfill gas.The group has an extensive fleetof specialist waste managementvehicles that collects waste fromindustrial and commercial customersfor processing. The group alsoprocesses waste on behalf of localauthorities and other third parties.Performance managementDCC Environmental is focused onmaximising shareholders’ returnsthrough organic and acquisitiongrowth. The performance of thebusiness is closely monitoredthrough a range of key indicatorsincluding sales volumes, incomingmaterial tonnage, gross margins, costof treatment, operating profit, cashflow and capital utilisation.Over the seven years since thebusiness was established, DCCEnvironmental has achieved acompound annual growth rate of81.5% in operating profit.5.05.5 5.53.20.1990.71.21.900 01 02 03 04 05DCC Environmental -operating profit (€m)1999 - 200606
25Performance for the year to 31 March 2006Change on prior year2006 2005 Reported ConstantcurrencyRevenue €31.5m €25.8m +22.0% +22.0%Operating profit €5.5m €5.5m +1.2% +1.7%Operating margin 17.5% 21.1%Return on capital employed- excluding intangible assets 31.8% 45.7%- including intangible assets 17.4% 20.7%DCC Environmental achieved strongrevenue growth in the year.Operating profit growth was heldback by tighter margins in someareas of the business.All the Irish environmental businessesare being re-branded enva.Strategy and developmentDCC’s strategy is to build on therecent investment in the WilliamTracey group of companies to furtherdevelop the business in Britain and toexpand the business in Ireland intonon-hazardous waste management.Associate CompaniesDCC’s principal associate is Manor Park Homebuilders,a leading Irish house, apartment and commercialbuilding and development company, in which it holdsa 49% shareholding.Profit contribution for the year to 31 March 2006Change on prior year2006 2005 Reported ConstantcurrencyShare of associates’ profit €25.5m €16.8m +51.6% +51.6%after taxManor Park has a large land bankfor housing development and otherdevelopment projects in the pipelinefrom which it should earn substantialprofits in the future.Segregated recyclables at the Traceymaterials recycling facility.
Page 1 and 2: Annual Reportand Accounts2006
Page 3 and 4: Group at a Glance 2Board of Directo
Page 5: 3Market positionGrowth focusGrowth
Page 8 and 9: 6board of directors
Page 10 and 11: 8senior managementgroup and divisio
Page 12 and 13: 10chairman’s statement“ Over th
Page 14 and 15: 12chief executive’s review“ The
Page 16: peopleWe recognise that our employe
Page 19 and 20: 17Performance for the year to 31 Ma
Page 25: 23Performance for the year to 31 Ma
Page 30 and 31: 28financial reviewOverview of resul
Page 32 and 33: 30financial reviewgenerated from op
Page 34: 32financial reviewsubsidiary manage
Page 38: qualityDCC Food & Beveragemarkets q
Page 41 and 42: corporate governance39written terms
Page 43 and 44: corporate governance41achieve busin
Page 46 and 47: 44report of the remuneration commit
Page 48 and 49: 46 report of the remuneration commi
Page 50 and 51: 48statement of directors’responsi
Page 52 and 53: 50 report of the independent audito
Page 54 and 55: 52financial statementsgroup stateme
Page 56 and 57: 54 financial statementsgroup cash f
Page 58 and 59: 56financial statementscompany state
Page 60 and 61: 58notes to the financial statements
Page 62: 60notes to the financial statements
Page 65 and 66: notes to the financial statements63
Page 77 and 78:
notes to the financial statements75
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 106 and 107:
104notes to the financial statement
Page 108 and 109:
Page 110 and 111:
108 notes to the financial statemen
Page 112 and 113:
110 notes to the financial statemen
Page 114 and 115:
Page 116 and 117:
114group directory>DCC SerComCompan
Page 118 and 119:
116group directory>DCC Environmenta
Page 120 and 121:
118corporate informationAuditorsPri
Page 122 and 123:
120indexpageReceivables, Trade and
Page 124:
DCC plcDCC House, Brewery Road,Stil
show all

Annual Report and Accounts 2006 - DCC plc

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?