21. Intangible Assets

 

Customer

 

Goodwill

related

Total

Group

€’000

€’000

€’000

 

 

 

 

Year ended 31 March 2013

 

 

 

Opening net book amount

723,389

61,816

785,205

Exchange differences

(8,313)

(541)

(8,854)

Arising on acquisition (note 46)

97,997

31,384

129,381

Other movements (note 34)

(1,912)

-

(1,912)

Amortisation charge

-

(17,684)

(17,684)

Closing net book amount

811,161

74,975

886,136

 

At 31 March 2013

Cost

834,516

145,017

979,533

Accumulated amortisation

(23,355)

(70,042)

(93,397)

Net book amount

811,161

74,975

886,136

 

 

 

 

Year ended 31 March 2012

 

 

 

Opening net book amount

597,597

38,517

636,114

Exchange differences

24,392

1,984

26,376

Arising on acquisition (note 46)

143,658

34,136

177,794

Disposal of subsidiaries

(2,381)

-

(2,381)

Impairment charge (note 11)

(11,369)

-

(11,369)

Other movements (note 34)

(441)

-

(441)

Amortisation charge

-

(11,379)

(11,379)

Assets classified as held for sale (note 19)

(28,067)

(1,442)

(29,509)

Closing net book amount

723,389

61,816

785,205

 

At 31 March 2012

Cost

747,562

114,993

862,555

Accumulated amortisation

(24,173)

(53,177)

(77,350)

Net book amount

723,389

61,816

785,205

 

 

 

 

Customer related intangible assets principally comprise contractual and non-contractual customer relationships arising from business combinations and are amortised over their estimated useful lives. The weighted average remaining amortisation period is 3.4 years (2012: 3.9 years).

Cash generating units

Goodwill acquired in business combinations is allocated, at acquisition, to the cash-generating units (CGUs) that are expected to benefit from that business combination. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. The CGUs represent the lowest level within the Group at which the associated goodwill is assessed for internal management purposes and are not larger than the operating segments determined in accordance with IFRS 8 Operating Segments. A total of 29 CGUs (2012: 24 CGUs) have been identified and these are analysed between the five operating segments below together with a summary of the allocation of the carrying value of goodwill by segment.

 

Cash generating units

Goodwill (€’000)

 

2013

2012

2013

2012

 

number

number

€’000

€’000

 

 

 

 

 

DCC Energy

11

6

475,265

426,481

DCC SerCom

5

5

81,766

79,260

DCC Healthcare

4

4

138,755

101,372

DCC Environmental

4

4

90,698

91,779

DCC Food & Beverage

5

5

24,677

24,497

29

24

811,161

723,389

 

 

 

 

 

 

In accordance with IAS 36 Impairment of Assets, the CGUs to which significant amounts of goodwill have been allocated are as follows:

 

2013

2012

 

€’000

€’000

 

 

 

GB Oils Group

297,708

298,283

Fannin Healthcare Group

119,830

83,557

 

 

For the purpose of impairment testing, the discount rates applied to these CGUs to which significant amounts of goodwill have been allocated were 9% (2012: 9%) for the GB Oils Group and 10% (2012: 10%) for the Fannin Healthcare Group.

The remaining goodwill balance of €393.623 million is allocated across 27 CGUs (2012: €341.549 million over 22 CGUs), none of which are individually significant.

Impairment testing of goodwill

Goodwill acquired through business combinations has been allocated to CGUs for the purpose of impairment testing. Goodwill is tested for impairment by review of profit and cash flow forecasts and budgets.

The recoverable amount of each CGU is based on a value in use computation. The cash flow forecasts employed for this computation are extracted from a three year plan that has been formally approved by the Board of Directors and specifically excludes future acquisition activity. Cash flows for a further two years are based on the assumptions underlying the three year plan. A terminal value reflecting inflation (2013: 2.5%; 2012: 2.5%) is applied to the year five cash flows. A present value of the future cash flows is calculated using a before-tax discount rate representing the Group’s estimated before-tax average cost of capital, adjusted to reflect risks associated with each CGU. The range of discount rates applied ranged from 7% to 10% (2012: 7% to 10%).

Applying these techniques, no impairment charge arose in 2013 (2012: impairment charge of €11.369 million).

Key assumptions include management’s estimates of future profitability, capital expenditure requirements, working capital investment and tax considerations. Cash flow forecasts and key assumptions are generally determined based on historical performance together with management’s expectation of future trends affecting the industry and other developments and initiatives in the business. The prior year assumptions were prepared on the same basis.

Sensitivity analysis was performed by increasing the discount rate by 2% and applying a terminal growth rate of 1.5% which resulted in an excess in the recoverable amount of all CGUs over their carrying amount. Management believes that any reasonable change in any of the key assumptions would not cause the carrying value of goodwill to exceed the recoverable amount.

22. Investments in Associates

 

2013

2012

 

€’000

€’000

 

 

 

At 1 April

1,173

2,281

Share of profit after tax (before impairment of associate company investment)

32

(40)

Impairment of associate company investment

(250)

(1,068)

At 31 March

955

1,173

 

 

 

Investments in associates at 31 March 2013 include goodwill of €0.422 million (2012: €0.422 million).

 

The Group’s geographical share of the assets (including goodwill) and liabilities of its associates is as follows:

 

Non-current

Current

Non-current

Current

Net

 

assets

assets

liabilities

liabilities

assets

 

€’000

€’000

€’000

€’000

€’000

As at 31 March 2013

 

 

 

 

 

Ireland

457

798

-

(413)

842

France

5

476

(132)

(236)

113

462

1,274

(132)

(649)

955

 

 

 

 

 

 

As at 31 March 2012

 

 

 

 

 

Ireland

516

1,296

-

(751)

1,061

France

7

449

(126)

(218)

112

523

1,745

(126)

(969)

1,173

 

 

 

 

 

 

Details of the Group’s associates are as follows:

 

 

Name and Registered Office

Nature of Business

Financial Year End

% Shareholding

Relevant Share Capital

Lee Oil (Cork) Limited,

Clonminam Industrial Estate, Portlaoise,

Co Laois.

Sale and distribution of oil products.

31 March

50.0%

100 ordinary shares of €1.26 each.

 

 

 

 

 

SAS Blue Stork Industry

300, rue du Président Salvador Allende,

92700 Colombes,

France.

Sale and distribution of computer hardware, software and peripherals.

31 March

20.0%

740 ordinary shares of €10 each.

 

 

 

 

 

 

2013

2012

Company

€’000

€’000

 

 

 

At 1 April

250

1,244

Impairment of associate company investment

(250)

(994)

At 31 March

-

250

 

 

 

23. Investments in Subsidiary Undertakings

 

2013

2012

Company

€’000

€’000

 

 

 

At 1 April

168,065

168,065

Additions

2,000

-

At 31 March

170,065

168,065

 

 

Details of the Group’s principal operating subsidiaries are shown on this page. Non-wholly owned subsidiaries comprises DCC Environmental Britain Limited (70%) (which owns 100% of Wastecycle Limited and William Tracey Limited) where put and call options exist to acquire the remaining 30%, Comtrade SA (94%) where a deferred purchase agreement is in place to acquire the remaining 6% and Virtus Limited (51%).

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 Hill House, 1 Little New Street, London EC4A 3TR, England. The registered office of DCC International Holdings B.V. is Teleport Boulevard 140, 1043 EJ Amsterdam, The Netherlands.

24. Inventories

 

2013

2012

Group

€’000

€’000

 

 

 

Raw materials

16,787

11,831

Work in progress

3,275

1,953

Finished goods

440,588

324,386

460,650

338,170

 

 

 

25. Trade and Other Receivables

 

2013

2012

Group

€’000

€’000

 

 

 

Trade receivables

1,234,599

1,219,841

Provision for impairment of trade receivables (note 47)

(24,577)

(26,217)

Prepayments and accrued income

71,632

53,129

Loan to associate company

-

100

Value added tax recoverable

20,452

21,099

Other debtors

45,181

23,746

1,347,287

1,291,698

 

 

 

2013

2012

Company

€’000

€’000

 

 

 

Amounts owed by subsidiary undertakings

373,264

409,554

Prepayments and accrued income

-

2

Loan to associate company

-

100

373,264

409,656

 

 

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