Carphone Warehouse 2003 Annual Report Download - page 6
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Please find page 6 of the 2003 Carphone Warehouse annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.The Group achieved a strong result for the year despite a
handset market that recorded a second consecutive year of
declines. Revenues, profits and earnings per share all grew
significantly and the Group generated encouraging levels of
free cash flow. The quality of earnings also improved, with
nearly half of Group contribution being derived from our
recurring revenue businesses.
Group turnover for the period was £1,841.5m compared
with £1,152.7m for the prior year. We achieved growth in
turnover across all our businesses. Excluding our Wholesale
business, which grew turnover from £343.0m to £806.6m,
and the acquisition of Opal Telecom, underlying growth in
turnover was 18.4%.
The principal acquisition during the year was the purchase
of Opal Telecom plc, a provider of value-added fixed line
telecoms services to business customers, for an initial
consideration of £67.6m, with up to a further £18.0m
payable over two years subject to performance. Opal has
generated a contribution of £8.3m on turnover of £75.9m
since acquisition.
Pre-tax profits for the Group, before exceptional items and
goodwill amortisation, were £57.0m, an increase of 21.8%
on the year to March 2002. Earnings per share on the same
basis grew by 19.0% to 5.25p.
Free cash flow, before the acquistion of Opal, the sale
of our London offices and investment in new stores, was
£50.8m (2002: £0.5m).
Two exceptional items arose during the year. We generated
an exceptional profit of £13.2m on the sale for cash of the
freehold on our London offices for £36.6m. We also incurred
a further non-cash writedown of £15.1m to the carrying
value of the investments in our wireless investment portfolio.
Operating & Financial Review Revenues, profits and earnings per share all grew
significantly and the Group generated encouraging
levels of free cash flow. The quality of earnings also
improved, with nearly half of Group contribution
being derived from our recurring revenue businesses.
Distribution
2003 2002
£m £m
Turnover 876.1 742.4
Retail 738.3 623.2
Online 41.9 36.7
Insurance 66.8 60.5
Ongoing 29.1 22.0
Contribution 121.7 109.1
Retail 67.2 60.2
Online 3.4 5.1
Insurance 22.0 21.8
Ongoing 29.1 22.0
Support costs (52.4) (47.7)
EBITDA 69.3 61.4
Depreciation (25.3) (22.4)
EBIT 44.0 39.0
Before amortisation of goodwill and exceptional items.
Divisional performance
We have altered the presentation of our results this
year to better reflect the source of revenues and to
allocate support costs and depreciation on a divisional
basis. There has been no change to individual business
stream revenue or contribution numbers as a result.
Distribution now comprises Retail, Online, Insurance
and Ongoing business streams.
The Distribution division registered another year of strong
performance. The division generated revenues of £876.1m
and EBIT (after full allocation of support costs) of £44.0m,
representing growth of 18.0% and 12.8% respectively on
the prior year.
Retail and Online
Including SIM-free handset sales, the Group achieved
4.36m connections during the year, up by 20.7% on
the previous year. Within these figures, 0.26m connections
were made through our Online channel (inbound call
centre, interactive TV and website). Overall, we estimate
that the Western European handset market declined by
about 10% in volume terms in the year to March 2003,
so this performance reflects further significant market
share gains.
4
The Carphone Warehouse Group PLC Annual Report 2003
568 763 810 1,035
02 030100
Revenue
(ex wholesale)
(£m)
41.4 66.0 72.8 90.0
02 030100
Headline EBITDA
(£m)