17 May 2022

DCC, the leading international sales, marketing and support services group, is today announcing its results for the year ended 31 March 2022.

Excellent Organic Performance and Continued Acquisitive Growth

·    Very strong growth in Group adjusted operating profit, up 11.1% (15.1% on a constant currency basis) to £589.2 million, ahead of market expectations:

o  Excellent organic profit growth of 6.1%

o  Acquisition growth of 9.0%

o  Growth in operating profit across each division

o  Adjusted earnings per share up 11.2% (15.2% on a constant currency basis)

·    Proposed 11.2% increase in the final dividend will see the total dividend for the year increase by 10.0%, DCC's 28^th consecutive year of dividend growth.

·    Free cash flow of £382.6 million reflects anticipated reversal of prior year working capital timing benefits - cumulative free cash flow conversion across both years of 96%.

·    Continued momentum in acquisition activity with c.£600 million committed in the period, including Almo, DCC's largest acquisition to date.

·    Separately this morning, DCC has announced an updated strategy for its energy business, including:

-   Creation of DCC Energy. New divisional and management structure is aligned with DCC's goal of leading customers in their transition to lower carbon and renewable energies

-    Capital allocation priorities to accelerate the transition capability of DCC Energy

-    A 2050 or sooner net zero target for Scope 3 carbon emissions

·    DCC expects that the year ending 31 March 2023 will be another year of profit growth and development, notwithstanding the challenging macro environment at present.

Commenting on the results, Donal Murphy, Chief Executive, said:

"I am very pleased that DCC has delivered an excellent performance in a challenging macro environment, with profit growth across each of our divisions, again demonstrating the resilience of our business. Our colleagues around the Group continued to deliver for our healthcare, technology and energy customers and other stakeholders, ensuring the supply of DCC's essential products and services. It was a very good period for acquisition activity, with approximately £600 million committed to the continued growth and evolution of the Group. Separately, this morning we are announcing an updated strategy for our activities in the energy sector. We are committed to leading our customers in their energy transition by providing innovative and cleaner energy solutions that will help them to achieve their net zero goals.

We are ambitious to build DCC into a global leader in our chosen sectors. We have the platforms, opportunities and capability to do so. Although the world is experiencing a particularly volatile period and supply chain disruption is elevated, DCC is well positioned to grow and develop with momentum.”

Contact information

Presentation of results - audio webcast and conference call details

DCC will host a live audio webcast and conference call of the presentation at 09.00 BST today. The slides for this presentation can be downloaded from DCC's website, www.dcc.ie. The access details for the live presentation are as follows:

Ireland:               +353 (0) 1 536 9584         

UK:                      +44 (0) 20 3936 2999       

International:    +44 (0) 20 3936 2999

Passcode:            893512                 

Webcast link:     https://www.investis-live.com/dcc/6254073ea330680c006e6714/wgjw

This report, presentation slides and a replay of the audio webcast will be made available at www.dcc.ie.

About DCC plc

DCC is a leading international sales, marketing and support services group with a clear focus on sustainable growth. DCC is an ambitious and entrepreneurial business operating in 21 countries, supplying products and services used by millions of people every day. Building strong routes to market, driving for results, focusing on cash conversion and generating superior sustainable returns on capital employed enable the Group to reinvest in its business, creating value for its stakeholders.

Headquartered in Dublin, the Group operates across three sectors: energy, healthcare and technology, employing over 15,400 people. DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In its financial year ended 31 March 2022, DCC generated revenue of £17.7 billion and adjusted operating profit of £589.2 million.

DCC has an excellent record, delivering compound annual growth of 14% in adjusted operating profit and generating an average return on capital employed of approximately 19% over 28 years as a public company.

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www.dcc.ie

Forward-looking statements

This announcement contains some forward-looking statements that represent DCC's expectations for its business, based on current expectations about future events, which by their nature involve risk and uncertainty. DCC believes that its expectations and assumptions with respect to these forward-looking statements are reasonable, however because they involve risk and uncertainty as to future circumstances, which are in many cases beyond DCC's control, actual results or performance may differ materially from those expressed in or implied by such forward-looking statements.

Divisional Performance Reviews

DCC LPG performed strongly during the year with operating profit increasing by 2.8% (6.7% on a constant currency basis) to £237.7 million. The profit growth was achieved despite the backdrop of both very substantial increases and volatility in the wholesale cost of product, with average product cost almost doubling during the year. Notwithstanding this backdrop, DCC LPG delivered modest organic profit growth and also benefited from bolt-on acquisitions completed in the current and prior year.

Volumes increased by 15.8% driven by the reopening of economies and acquisition activity in the US and Ireland. Organic volumes increased by 6.8% due to the strong recovery in commercial and industrial demand. As expected, operating profit per tonne was lower due to the mix impact of the significant increase in lower margin commercial and industrial customer demand and the impact of the lower margin UPG and Naturgy acquisitions.

The French business performed well, benefiting from continued good domestic demand and growth in the cylinder sector, where it has increased its market share over the last two years. The recent acquisitions and expansion of the business into the solar sector has been successful and performed ahead of expectations, driven by strong demand for the design, build and maintenance solution offering. In B2B gas and power, the business continued to expand its customer base and range of energy solutions, although the higher wholesale cost of energy and associated volatility was a headwind throughout the year. The business continues to broaden the energy transition solutions it offers to customers in France and, amongst other initiatives, has launched an innovative service that provides energy efficiency and management, renewable power and EV charging capability to large offices and shopping centres. The business also delivered strong growth in its other European markets of Scandinavia, Germany and Benelux, benefiting from good organic growth and the acquisition of Primagaz in the Netherlands earlier in the year.

In Britain and Ireland, the business experienced a strong recovery in commercial volumes. It also grew its market share through oil to LPG conversions that lower customer carbon emissions by approximately 20%.  In Ireland, the off-grid LPG business performed well, although similar to the experience in France, the on-grid gas and power business faced significant volatility and increased wholesale cost of product for natural gas and electricity. In December 2021, DCC acquired Naturgy's power and gas marketing operations in Ireland. The acquisition adds innovative energy transition expertise in biomethane, direct renewable electricity power purchase agreements and solar solutions, and has performed in line with expectations since acquisition.

The US business delivered strong volume and operating profit growth during the year, driven by the full year contribution from the prior year acquisitions of NES (September 2020) and UPG (January 2021) as well as three smaller bolt-on acquisitions completed in recent months in Kentucky and Colorado. The US business now operates across 22 states serving 310,000 customers. In Hong Kong & Macau, the business performed well during a difficult year for the region and continued to grow its customer base, adding several new large residential estates.

DCC Retail & Oil delivered excellent growth, with operating profit increasing to £169.4 million, 17.0% ahead of prior year (20.1% on a constant currency basis). The vast majority of the growth was organic, reflecting strong volume growth and an excellent operational and cost performance. In addition, the business continues to deliver significant growth in non-fuel profits, particularly in lubricants and HGV and fleet services. 

DCC Retail & Oil sold 11.6 billion litres of product, an increase of 14.0% on the prior year. The significant volume increase was driven by a strong recovery in commercial, retail and fuel card volumes, which had been adversely impacted by Covid-19 restrictions in the prior year. The business experienced particularly strong demand in Scandinavia, France and Britain.

The business in Britain and Ireland recorded very strong organic operating profit growth, in part due to the recovery in commercial activity, which drove fuel and fuel card usage. In Britain, the business also delivered good growth in its company owned retail network, with non-fuel sales performing strongly. The business delivered good growth across lubricants, truck stop, roadside services and heating services, with the growth in the increased range of customer solutions continuing to broaden the activities of the British business. Recently, the business acquired a new HGV bunker site in the Port of Felixstowe, further strengthening its network of HGV service coverage to 26 strategically located facilities across Britain. The business in Ireland delivered very strong organic growth, benefiting from the integration of the two recent bolt-on acquisitions and from strong demand from the power generation sector.

The Scandinavian business performed robustly following an excellent performance in the prior year. The business in Denmark performed particularly well and generated strong growth across the retail, agricultural and commercial sectors. In Scandinavia, the business continued to deploy capital into lower emissions fuels and EV charging infrastructure, including winning a significant tender for a transport mobility hub in Norway. In Denmark, the business has partnered with Shell Re-Charge to provide customers with EV charging solutions in the home, office, forecourts and public spaces.

In France, the business recorded very strong growth, as restrictions were eased and retail mobility consumers were increasingly active. The business made good progress during the year in further developing its products and solution offerings to mobility customers.  The business has partnered with ENGIE to deploy EV chargers on 16 motorway sites. It also rolled out the infrastructure to enable the sale of E85 biofuel (85% ethanol content) across 59 sites on its network. E85 offers a significantly lower carbon alternative product for customers. In September 2021, the business also acquired a synergistic network of 19 convenience-led retail sites in Luxembourg, which are performing in line with expectations. Although modest, the acquisition has added a strong company-operated convenience retailing capability. DCC Retail & Oil has also recently entered into a major lubricants distribution agreement to the auto franchise and independent workshop segments in France, establishing a platform to develop further organic revenue opportunities in the lubricants sector in Europe.

DCC Healthcare delivered an excellent performance, generating operating profit growth of 22.9% (25.5% on a constant currency basis), approximately two-thirds of which was organic. The very strong organic performance was driven by DCC Vital, which generated excellent organic profit growth across Britain, Ireland and the DACH region. DCC Health & Beauty Solutions performed well against a challenging operational backdrop. The strong result also benefited from the first-time contribution of Wörner, acquired in April 2021, which traded ahead of expectations.

DCC Vital, which is focused on the sales and marketing of medical products to healthcare providers,

generated excellent revenue and operating profit growth. Although the pandemic continued to impact on the level of routine hospital procedures and in-person GP consultations, DCC Vital continued to service the healthcare systems with the supply of pandemic-related products across all its markets. PPE sales were particularly strong in Scotland and Ireland and the business also benefited from the distribution of antigen tests to the nursing home sector in Germany. DCC Vital is very well positioned to benefit when activity levels normalise across the healthcare systems. 

DCC Health & Beauty Solutions, which provides outsourced solutions to international nutrition and beauty brand owners performed well in an environment of supply chain and labour availability challenges.  Following excellent growth in the prior year, the US businesses were impacted by supply chain and labour availability challenges as the economy re-opened, and by a small number of customers adjusting their demand to reflect market growth rates normalising back towards longer-term growth trends. The European businesses generated very good profit growth, driven by strong growth with nutrition brands in Germany, Scandinavia and Iberia and in premium skincare products for leading international and digital brands.

It was also another year of strategic progress. Reflecting its strong organic and acquisitive growth expectations, DCC Healthcare strengthened its management resources including establishing a new DCC Health & Beauty Solutions divisional team in the US.  DCC Health & Beauty Solutions expanded its capacity and capability across its manufacturing facilities, including adding manufacturing capability in nutritional gummies in Britain and commencing a capital investment project at its Florida facility which will add this capability in the US market in 2023. Gummies is the fastest growing product format in the nutritional market. The acquisition of Wörner by DCC Vital, established a new growth platform in Primary Care in Europe. DCC Vital is pursuing an active pipeline of opportunities to further expand its footprint in the Primary Care sector and has already completed or committed to acquire two bolt-on acquisitions in Germany.

* The ROCE in DCC Technology reflects the acquisition impact of Almo occurring later in the financial year. On a pro-forma basis the ROCE in DCC Technology excluding IFRS 16 was 10.7%.

DCC Technology delivered very strong operating profit growth of 12.8% (19.9% on a constant currency basis), driven by the contributions from acquisitions completed during the year. The very strong performance was achieved despite a challenging supply chain environment.

The North American business performed strongly throughout the year. The business delivered very strong organic revenue and operating profit growth and also benefited from the first-time contribution of Almo. Sales of Pro AV products recovered significantly as Covid-19 restrictions eased and spending on large event, conference and other at-work locations resumed. Demand for Pro Audio and music products and entertainment-at-home products, including consumer electronics, remained robust, with supply constraints in certain product categories. The two complementary bolt-on acquisitions (The Music People and JB&A) completed in the prior year both performed well and have strengthened DCC Technology's developing market presence and product portfolio in North America. In December 2021, DCC Technology completed the acquisition of Almo. Combined with DCC Technology's existing business, the acquisition has created the leading specialist Pro AV value-added distributor in North America. It has also expanded the business into the attractive appliance and lifestyle product categories. Since acquisition Almo has integrated well into the Group and has traded in line with expectations.

In the UK, the business experienced a significant level of supply constraints and reduced demand for consumer products as the pandemic eased. As previously reported, and although now operating effectively, the business was also impacted during the year by the implementation of a new warehouse management system.  These factors contributed to a decline in both revenue and operating profit in the year. The business in Ireland performed very well, with good organic revenue and operating profit growth driven by demand for consumer and mobile products and a recovery in demand in the B2B sectors. The business successfully relocated to a new facility during the year which will enable continued growth in the medium term.

In Continental Europe, the business generated good organic revenue and operating profit growth. The business benefited from the recovery in demand for B2B products, particularly in the DACH region and Italy. As anticipated, demand for consumer and working-from-home products began to normalise as the year progressed, while the business also experienced some restrictions in supply, particularly for certain consumer products. In Scandinavia, the business achieved strong revenue and profit growth, particularly in the etail and retail channels. In France, the B2B business performed well, driven by good growth in its range of own-brand accessories. In April 2021, the business completed the acquisition of Azenn which has performed strongly since acquisition and has further broadened the B2B product and customer base in France.

Group Financial Review

A summary of the Group's results for the year ended 31 March 2022 is as follows:

Income Statement Review

Reporting currency 

The Group's financial statements are presented in sterling, denoted by the symbol '£'. The principal exchange rates used for the translation of results into sterling are set out in note 3, Reporting Currency, on page 23.

The net impact of currency translation on the Group Income Statement versus the prior period was significant, accounting for a headwind of approximately 4.0%, or £20.9 million against the reported growth in operating profit. Average sterling exchange rates strengthened against most relevant currencies, including the US dollar and euro.

Revenue

Overall, Group revenue increased by 32.2% to £17.7 billion, driven by the higher energy commodity prices that prevailed during the year and also by the recovery in energy volumes across both DCC LPG and DCC Retail & Oil.

Volumes in DCC LPG increased by 15.8% to 2.6 million tonnes, driven by the reopening of economics and acquisitions completed during the year in the US and Ireland. Organically, volumes increased 6.8% due to strong recovery and growth of commercial and industrial demand.

DCC Retail & Oil volumes of 11.6 billion litres were 14.0% ahead of the prior year, and 10.9% organically, driven by a strong recovery in commercial, retail and fuel card volumes, which had been adversely impacted by Covid-19 restrictions in the prior year.

Combined revenue in DCC Healthcare and DCC Technology was £5.4 billion, an increase of 5.3%, reflecting strong revenue growth in DCC Healthcare and DCC Technology's North American businesses.

Group adjusted operating profit

Group adjusted operating profit increased by 11.1% (15.1% on a constant currency basis) to £589.2 million. On a constant currency basis, operating profit increased by 6.1% organically and acquisitive growth was 9.0%. The overall growth represents a very strong performance in the context of well-documented challenges in global commodity prices, supply chain shortages and labour availability.

DCC LPG performed strongly during the year despite the backdrop of very substantial increases and volatility in the wholesale cost of product. Operating profit increased by 2.8% (6.7% on a constant currency basis) to £237.7 million benefiting from modest organic growth and bolt-on acquisitions completed in Ireland and the US.

Operating profit in DCC Retail & Oil increased to £169.4 million, 17.0% ahead of the prior year (20.1% on a constant currency basis), the vast majority of which was organic. The excellent organic performance reflects the strong volume recovery, continued growth in non-fuel profits and a very good operational and cost performance.

DCC Healthcare generated excellent operating profit growth of 22.9% (25.5% on a constant currency basis) to £100.4 million, two thirds of which was organic. The very strong organic performance was driven by DCC Vital, which generated excellent organic profit growth across Britain, Ireland and the DACH region. DCC Vital also benefited from the acquisition of Wörner in April 2021.

Operating profit in DCC Technology increased to £81.7 million, 12.8% ahead of the prior year (19.9% on a constant currency basis). The very strong operating profit growth was driven by the contributions from acquisitions completed during the year. The business in North America performed very strongly and benefited from the notable acquisition of Almo, completed in December 2021.

Finance costs (net) and other

Net finance costs and other decreased to £53.8 million (2021: £59.1 million). The decrease primarily reflects a lower interest charge due to lower average gross debt balances, following private placement debt repayments in May 2021.

Average net debt, excluding lease creditors, was £428 million, compared to an average net debt of £215 million in the prior year, and reflects substantial acquisition activity during the year and also increased investment in working capital. The Group's average private placement debt, which is the primary driver of finance costs, decreased versus the prior year reflecting the repayment of private placement debt and the strengthening of sterling against the euro and US dollar. Interest was covered 16.1 times1 by Group adjusted operating profit before depreciation and amortisation of intangible assets (2021: 13.2 times).

Profit before net exceptional items, amortisation of intangible assets and tax

Profit before net exceptional items, amortisation of intangible assets and tax increased by 13.7% to £535.4 million. 

Net exceptional charge and amortisation of intangible assets  

The Group incurred a net exceptional charge after tax and non-controlling interests of £43.8 million (2021: net exceptional charge of £35.0 million) as follows:

There was a net cash outflow of £29.5 million relating to exceptional items.

Adjustments to contingent acquisition consideration of £19.9 million reflects movements in provisions associated with the expected earn-out or other deferred arrangements that arise through the Group's corporate development activity. The charge in the year primarily reflects increases in contingent consideration payable in respect of acquisitions in DCC Technology where the trading performance of acquisitions in North America has been very strong and ahead of expectations and also in respect of an acquisition in DCC Retail & Oil where performance has also been ahead of expectations.

Restructuring and integration costs and other of £16.7 million relates to the restructuring and integration of operations across a number of businesses and acquisitions. The significant items during the year include costs related to the integration of acquisitions in DCC LPG and DCC Technology. These include the integration of Primagaz in the Netherlands, acquired during the financial year and where integration with DCC's existing operations is continuing in line with expectations. It also includes the integration of Almo and combination with DCC Technology's existing Pro-AV business in North America. It also includes the final stage of the consolidation of the UK infrastructure in DCC Technology and a project underway in France to enhance the efficiency of the LPG operating infrastructure.

Acquisition and related costs include the professional fees and tax costs relating to the evaluation and completion of acquisition opportunities and amounted to £9.9 million.

The level of ineffectiveness calculated under IAS 39 on the hedging instruments related to the Group's US private placement debt is charged or credited as an exceptional item. In the year ended 31 March 2022, this amounted to an exceptional non-cash gain of £1.2 million. The cumulative net exceptional credit taken in respect IAS 39 ineffectiveness is £0.5 million. This, or any subsequent similar non-cash charges or gains, will net to zero over the remaining term of this debt and the related hedging instruments.  

The charge for the amortisation of acquisition-related intangible assets increased to £84.4 million from £66.9 million in the prior year reflecting acquisitions completed during the second half of the prior year and in the current year.

Profit before tax

Profit before tax increased by 11.1% to £405.7 million.

Taxation

The effective tax rate for the Group increased to 18.3% (2021: 17.0%). The Group's effective tax rate is influenced by the geographical mix of profits arising in any year and the tax rates attributable to the individual territories. The increase in the year was driven by the expansion of the Group in recent years into certain higher tax geographies and the increasing corporate tax rate environment generally.  

Adjusted earnings per share

Adjusted earnings per share increased by 11.2% (15.2% on a constant currency basis) to 430.1 pence, reflecting the increase in profit before exceptional items and goodwill amortisation.

Dividend

The Board is proposing an 11.2% increase in the final dividend to 119.93 pence per share, which, when added to the interim dividend of 55.85 pence per share, gives a total dividend for the year of 175.78 pence per share. This represents a 10.0% increase over the total prior year dividend of 159.80 pence per share. The dividend is covered 2.4 times by adjusted earnings per share (2021: 2.4 times). It is proposed to pay the final dividend on 21 July 2022 to shareholders on the register at the close of business on 27 May 2022. 

Over its 28 years as a listed company, DCC has an unbroken record of dividend growth at a compound annual rate of 13.7%.

Return on capital employed

The creation of shareholder value through the delivery of consistent, sustainable long-term returns well in excess of its cost of capital is one of DCC's core strategic aims. The return on capital employed by division was as follows:

*The ROCE in DCC Technology reflects the acquisition impact of Almo occurring later in the financial year. On a pro-forma basis the ROCE in DCC Technology excluding IFRS 16 was 10.7%.

The Group continued to generate very strong returns on capital employed, notwithstanding the substantial increase in the scale of the Group in recent years. The modest decrease in return on capital employed versus the prior year primarily reflects the substantial acquisition spend during the year of £720 million and the timing of the acquisition of Almo, the Group's largest acquisition to date, which occurred later in the year and seasonally had a dilutive impact. It also reflects recent investment in development capital expenditure and working capital which will deliver good organic growth for the Group in the future.

Cash Flow, Development and Financial Strength

Cash flow

The Group generated operating and free cash flow during the year as set out below:

The Group's operating cash flow amounted to £560.6 million, compared to £842.3 million in the prior year.

Working capital increased by £168.7 million which includes the expected reversal of approximately £80 million of one-off timing benefits in the prior year which were highlighted in the Results Announcement in May 2021. A decrease in the utilisation of supply chain financing in DCC Technology accounted for £65 million, with the remaining outflow reflecting net investment in working capital across the Group. The increase in energy prices during the period drove a reduction in working capital in DCC Retail & Oil and an increase in working capital in DCC LPG. The movements reflect the respective underlying negative and positive working capital characteristics of each division. The remaining modest net investment in working capital across the Group reflected increased inventory holdings which ensured customers were serviced as effectively as possible given the volatile supply chain environment.

DCC Technology selectively uses supply chain financing solutions to sell, on a non-recourse basis, a portion of its receivables relating to certain larger supply chain/sales and marketing activities. As anticipated, the level of supply chain financing at 31 March 2022 was lower than the prior year at £168.0 million (2021: £232.6 million), with the decrease of £65.0 million reflecting the lower volume throughput in the UK business as a result of product supply disruption and warehouse system upgrades. Supply chain financing had a positive impact on Group working capital days of 2.3 days (31 March 2021: 4.9 days).

Overall working capital days were 2.8 days sales, compared to negative 4.3 days sales in the prior year, primarily reflecting the acquisition activity in the year in DCC Technology, DCC Healthcare and DCC LPG.

As illustrated in the table overleaf, net capital expenditure amounted to £170.9 million for the year (2021: £146.9 million) and was net of disposal proceeds of £23.5 million (2021: £15.9 million). The level of net capital expenditure reflects continued investment in organic initiatives across the Group, supporting the Group's continued growth and development.

Capital expenditure in DCC LPG primarily comprised development expenditure on tanks, cylinders and installations, supporting new business, the conversion of oil customers to LPG, and the continued rollout of bioLPG cylinders and 'Click and Collect' services. There was also continued development spend in relation to the Avonmouth LPG storage facility in the UK. In the Retail & Oil division, there was continued investment in new retail sites and site upgrades, including adding further lower emission product capability such at HVO in a number of markets and E85 in France, EV fast charging and related services. It also included capital expenditure in relation to the ongoing project to optimise the depot network in the UK to bring greater network and capital efficiency over time. In DCC Healthcare, the capital expenditure primarily related to increased manufacturing capability across DCC Health & Beauty Solutions in both Europe and the US, through the installation of new machines across multiple businesses to facilitate the strong growth in customer demand. The majority of the capital expenditure in DCC Technology related to the new warehouse management system which is now live in the UK, solar panel installation on the roof of the UK national distribution centre, along with development spend in Ireland to relocate to a new, larger, office and warehouse facility during the period. Net capital expenditure for the Group exceeded the depreciation charge (excluding depreciation on right-of-use leased assets) in the year by £32.9 million. 

The Group's free cash flow amounted to £382.6 million versus £687.8 million in the prior year. The cumulative conversion of operating profit into free cash flow across both years was very strong at 96%.

Total cash spend on acquisitions for the year ended 31 March 2022

The total cash spend on acquisitions completed in the year was £720.1 million. The spend primarily reflects acquisitions committed and completed during the current year, but also includes the acquisition of Wörner in DCC Healthcare, Primagaz and Solewa in DCC LPG, Jones Ireland in DCC Retail & Oil and Azenn in DCC Technology which were announced in the prior year Results Announcement in May 2021. Payment of deferred and contingent acquisition consideration previously provided amounted to £52.0 million.

Committed acquisition and net capital expenditure

Committed acquisition spend since the prior year preliminary results statement and net capital expenditure in the current year amounted to £774.3 million. An analysis by division is shown below:

DCC continues to be very active from a development perspective. Since the results announcement for the year ended 31 March 2021 in May 2021, DCC has committed approximately £600 million to new acquisitions across Europe and North America. The Group has the platforms, opportunities and capability to build the Group into a global leader in its chosen sectors. Recent acquisition activity of the Group includes:

DCC Technology

Almo Corporation

DCC Technology completed the acquisition of Almo Corporation ("Almo") on 14 December 2021. The acquisition was based on an initial enterprise value of approximately $610 million (£462 million) on a cash-free, debt-free basis. Almo is one of the largest specialist Pro AV businesses in the United States and is a leading national distributor of consumer appliances, consumer electronics and lifestyle products selling to integrators, resellers, dealers, retailers and e-tailers nationwide.

The business is headquartered in Philadelphia and employs approximately 660 people across the United States. In its most recent financial year, the business recorded revenues of approximately $1.3 billion (£1.0 billion) and had underlying EBITA of approximately $75 million (£57 million).

The transaction represents DCC's largest acquisition to date and is a major step in the continuing expansion of both DCC and DCC Technology in North America. Since entering the market in 2018, DCC Technology has expanded significantly, through strong organic growth and acquisition activity. Together with DCC Technology's existing platform, the acquisition of Almo will create the leading specialist Pro AV business in North America. Further details on the acquisition can be found in DCC's stock exchange announcement of 15 December 2021.

During the year DCC Technology also acquired a small business in the Nordic region which distributes AV and security camera equipment, further enhancing DCC Technology's service offering to its customers in the region.

DCC LPG

Naturgy Ireland

In December 2021, DCC LPG acquired Naturgy's Irish power and gas marketing operations. The business is a service-led supplier of electricity and gas to large B2B energy customers and also provides a range of services including demand side management, lighting as a service, solar PV and PPA management. Founded in 2004, the business has a long track record of sourcing and supplying renewable power to industrial and commercial customers and was the first company in Ireland to supply 100% renewable electricity. The acquisition enhances DCC's presence in the Irish electricity and gas markets and represents an important step in its strategy to expand its energy solutions offering across the island of Ireland.

DCC LPG also completed a number of small bolt-on acquisitions in Colorado and Kentucky, further expanding its presence in the US propane market and also completed a number of modest acquisitions in the German and Austrian markets.

DCC Retail & Oil

DCC Retail & Oil completed a number of bolt-on acquisitions during the year. In September 2021, DCC Retail & Oil acquired a network of 19 retail convenience sites in Luxembourg. The locations, which DCC will operate, have a leading convenience offering utilising the Cactus Shoppi brand. The network contains well-located, urban sites, suitable for investment in EV fast charging infrastructure in the future. In Denmark, the business also recently committed to acquire a stake in a biogas production facility. The transaction will secure the supply of the offtake from the plant and further expand the range of renewable products available to customers in the market. In Britain, DCC Retail & Oil completed a number of complementary bolt-on acquisitions including a HGV service business, offering multiple services to hauliers including secure parking, fuel provision, truck washing facilities and accommodation.

DCC Retail & Oil also completed a small bolt-on acquisition in the bulk fuels and lubricants market in Norway.

DCC Healthcare

Since its initial market entry into Germany through the Wörner acquisition in April 2021, DCC Healthcare has completed a primary care bolt-on acquisition and has also now agreed to acquire another, further developing its presence in a fragmented and growing market.

Financial strength

An integral part of the Group's strategy remains the maintenance of a strong and liquid balance sheet which, amongst other benefits, enables it to take advantage of development opportunities as they arise. The increasing scale and geographic diversity of DCC is enabling the Group to evolve its approach somewhat, leveraging a broader array of funding options and, over time, reducing the relative level of gross cash held on the balance sheet. At 31 March 2022, the Group had net debt (including lease creditors) of £756.6 million, net debt (excluding lease creditors) of £419.9 million, cash resources (net of overdrafts) of £1.3 billion and total equity of £3.0 billion.

In March 2022, DCC entered into a new Sustainability-Linked Revolving Credit Facility with its banking group of 10 leading international banks. The facility, at £800 million, is significantly larger than the Group's previous facility of £400 million and is committed for five years. The facility is the Group's first sustainability-linked funding arrangement and contains a number of sustainability metrics and targets, demonstrating DCC's commitment to excellence in its approach to Sustainability and ESG generally. The increased scale of the facility will also enable the Group to continue to evolve its funding options into the future.

Substantially all of the Group's term debt has been raised in the US private placement market and has an average maturity of 4.7 years.

Establishment of DCC Energy

For periods commencing from 1 April 2022, DCC will organise and report its activities through three divisions: DCC Energy, DCC Healthcare and DCC Technology. DCC Energy contains all of the Group's activities in the energy sector (previously DCC LPG and DCC Retail & Oil) and DCC Energy is organised in turn into two reporting segments, Energy Solutions and Mobility. Further information on the establishment of DCC Energy and its strategy is contained in the separate Stock Exchange Announcement released this morning.

Appointment of Corporate Broker

Following a recent review of its corporate broking arrangements, DCC has appointed UBS alongside its existing corporate brokers J.P. Morgan Cazenove and Davy.

Annual General Meeting

The Company's Annual General Meeting will be held at 11.00 am on Friday 15 July 2022 at the Powerscourt Hotel, Powerscourt Estate, Enniskerry, Co. Wicklow, A98 DR12.