Holiday Inn 2003 Annual Report Download - page 16

14 InterContinental Hotels Group 2003
The directors present their report for the 15 months ended
31 December 2003.
ACTIVITIES OF THE GROUP
The principal activities of the Group are in hotels and
resorts, with worldwide interests through ownership, leasing,
management and franchising, and in the manufacture of
soft drinks in the United Kingdom.
BUSINESS REVIEW AND FUTURE DEVELOPMENTS
The Operating and Financial Review on pages 1 to 13, and
the Chairman’s Statement, the Chief Executive’s Review and
the Business Reviews presented in the Annual Review and
Summary Financial Statement provide information about the
Group’s businesses, their financial performance during the
period and likely developments.
FORMATION OF THE COMPANY AND SEPARATION
OF SIX CONTINENTS
InterContinental Hotels Group PLC (‘IHG PLC’ or ‘the
Company’) was incorporated on 2 October 2002 and became
the holding company for the Group on completion of the
Separation of Six Continents PLC and the listing of IHG PLC’s
shares on 15 April 2003. Details of the terms for shareholders
of the Separation, including the return of capital, are provided
in the Investor Information section of the Annual Review and
Summary Financial Statement.
DIVIDENDS
An interim dividend of 6.6p per Six Continents PLC share was
paid on 9 April 2003 prior to implementation of the Separation.
An interim dividend of 4.05p per IHG PLC share was paid
on 14 October 2003. The directors are recommending a final
dividend of 9.45p per IHG PLC share to be paid on 7 June
2004 to shareholders on the Register at close of business
on 26 March 2004. Total dividends for the period will amount
to £156 million.
EMPLOYEES
IHG employed an average of 29,809 people worldwide in the
period ended 31 December 2003.
The Group is committed to providing equality of opportunity to all
employees without discrimination and continues to be supportive
of the employment and advancement of disabled persons.
Great emphasis is placed on employee communication,
particularly on matters relating to the Group’s business and
its performance. Communication channels include global
management conferences, team meetings, informal briefings,
in-house publications, and intranets. Regular feedback is
obtained through employee focus groups and employee
opinion surveys, the results of which are utilised in developing
management policies and best practice.
A European Forum brings together senior managers and
employee representatives from EU countries to discuss
pan-European issues.
INVESTORS IN PEOPLE
The Group continues to support Investors in People (‘IIP’).
A number of UK and European hotels have accreditation
against the rigorous IIP standard set for communicating
goals and objectives to employees and for ensuring that they
are given the skills required to deliver business strategies.
HEALTH AND SAFETY
The Group strives to provide and maintain a safe environment
for all employees, customers and other visitors to its premises
and to comply with relevant health and safety legislation.
In addition, all Group companies:
• aim to protect the health of employees with suitable, specific,
work-based strategies;
• seek to minimise the risk of injury from company activity;
• ensure that through senior management participation,
sufficient resources and information are made available
and suitable management systems are in place to address
health and safety matters; and
• encourage the involvement of employees and aim for
continual improvement in health and safety matters through
a formal structure with a reporting and review process.
Compliance with Group policy is monitored and audited centrally
and an annual health and safety report is included within the risk
management reports which are produced for the Board.
CORPORATE AND SOCIAL RESPONSIBILITY
IHG respects the communities in which it operates. Respect
for the environment is a core value and the Group is a founder
member of the International Hotels Environment Initiative.
IHG’s commitment to developing its people and the communities
in which it operates is described more fully in the Annual Review
and Summary Financial Statement. IHG Environmental and Social
Responsibility policies are published on the Company’s website.
EMPLOYEE SHARE SCHEMES
IHG encourages employee participation in the success of its
businesses through share ownership.
FORMER SIX CONTINENTS SHARE SCHEMES
Under the terms of the Separation, holders of options under
the Six Continents Executive Share Option Schemes were
given the opportunity to exchange their Six Continents PLC
options for equivalent value new options over IHG PLC shares.
As a result of this exchange 23,195,482 IHG PLC shares were
put under option at prices ranging from 295.33p to 593.29p.
DIRECTORS’ REPORT