BT 1997 Annual Report Download - page 21

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Report of the directors
The directors submit their report and the audited financial
statements of the company, British Telecommunications plc,
and the group, which includes its subsidiary undertakings,
for the year ended 31 March 1997.
Introduction
The business review on pages 6 to 12, the financial review on
pages 13 to 20, the discussion on corporate governance on
pages 24 and 25 and the report of the Board Committee on
Executive Remuneration on pages 27 to 33 form part of this
report. The audited financial statements are presented on
pages 36 to 62.
The group’s principal activity is the supply of
telecommunication services and equipment. In the year,
97% of group turnover arose from operations in the
United Kingdom.
Directors
The current directors of the company are shown on pages
22 and 23. All served throughout the financial year with the
exception of Mr Gerald Taylor who was appointed to the
Board as from 4 November 1996. In addition, Lord Tebbit
served on the Board until his retirement as a director on
2 November 1996.
In accordance with the articles of association, Mr Gerald
Taylor, having been appointed to the Board since the last
annual general meeting, retires at the forthcoming annual
general meeting and will be proposed for election. Mr Keith
Oates, Mr Bert Roberts and Dr Alan Rudge retire by rotation
and will be proposed for re-election. Details of these directors’
service contracts or contracts of appointment are shown in
the report of the Board Committee on Executive Remuneration
on page 29.
Substantial shareholdings
At 20 May 1997, the company had received a notification from
the Prudential Corporation group of companies under Part VI
of the Companies Act 1985 in respect of a holding of
205 million shares representing 3.2% of the company’s
issued ordinary share capital.
Policy on the payment of suppliers
BT’s policy is to use its purchasing power fairly and to pay
promptly and as agreed.
BT has a variety of payment terms with its suppliers. The
terms for payments for purchases under major contracts
are settled when agreeing the other terms negotiated
with the individual suppliers. It is BT’s policy to make
payments for other purchases within thirty working days
of the invoice date, provided that the relevant invoice
is presented to the company in a timely fashion and is
complete. BT’s payment terms are printed on the
company’s standard purchase order forms or, where
appropriate, specified in individual contracts agreed
with suppliers. The ratio, expressed in days, between the
amounts invoiced to the company by its suppliers in the
year ended 31 March 1997 and the amounts owed to its
trade creditors at the end of the year was 32 days.
Auditors
A resolution to reappoint Coopers & Lybrand as the
company’s auditors and authorise the directors to settle
their remuneration will be proposed at the annual
general meeting.
Annual general meeting resolutions
The resolutions to be proposed at the annual general
meeting to be held on 16 July 1997, together with
explanatory notes, appear in the separate Notice of 1997
Annual General Meeting sent to all shareholders.
By order of the Board
C R Green
Secretary and Chief Legal Adviser
20 MAY 1997
Registered office: 81 Newgate Street, London EC1A 7AJ
Registered in England: No 1800000