Vodafone 2000 Annual Report Download - page 16

Vodafone AirTouch Plc Annual Report & Accounts for the year ended 31 March 2000
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Dividends
The proposed final dividend of 0.680p per ordinary share produces a
total for the year of 1.335p, an increase of 5% over last year. Dividend
cover, before goodwill amortisation, increased to 3.5 times compared
with 3.3 times for the year ended 31 March 1999.
Share price
The share price has shown healthy growth since the Company floated
in 1988 at an issue price of 170p, which is now equivalent to 11.33p
following the capitalisation issues in July 1994 and September 1999.
Annual compound growth in the share price over the five year period to
31 March 2000 was 54%.
This increase in the share price, which continued through the year
ended 31 March 2000, reflected the general rise in equity prices,
the market’s rating of the mobile telecommunications sector and
confidence in the Group’s prospects.
Year 2000
The Company, through its comprehensive Millennium Programme,
continues to give high priority to the potential impact of all year
2000 date related issues. At the date of this report, the principal
transition dates, including 31 December 1999, 1 January 2000 and
29 February 2000, have passed without revealing any serious problems
in the Group’s systems and the directors are not aware of any
significant factors relating to any year 2000 date related issue which
have arisen, or that may arise, and which will significantly affect the
activities of the business. Nevertheless, the situation is still being
monitored.
The Group incurred costs in relation to Year 2000 compliance of
approximately £22m in the financial year, and £18m in previous
financial years, although many costs are not separately identifiable as
Millennium modifications are often embodied in software purchased
and developed in the normal course of business.
Introduction of the single
European currency
The Group has interests in eight of the eleven countries where the Euro
was introduced on 1 January 1999 for business-to-business use.
Following a three year transition period, the Euro will be adopted in
those countries for all purposes. Working groups have been established
by local management in these ‘first wave’ markets to assess the impact
on business operations of trading in the Euro and to manage the
implementation of appropriate change programmes.
The Executive Committee of the Vodafone Group has set up a steering
group to assess the impact of the single currency on the Group and to
monitor progress in the adoption of Euro-compliant business systems.
Current status, together with strategic and operational issues arising,
are tracked regularly on a country-by-country basis and reports made
to the Executive Committee.
Progress in all markets to date is on target, with no significant issues
outstanding. In EU markets not yet committed to the introduction
of the Euro, preliminary assessments have been carried out.
The financial cost of preparation for the adoption of the Euro is
not material to the Group.
Basis of preparation of the
financial statements
During the year the following Financial Reporting Standards (“FRS”)
issued by the Accounting Standards Board became effective and have
been adopted in these financial statements:
FRS 15 – Tangible Fixed Assets; and
FRS 16 – Current Tax.
Implementation of these new Standards has not resulted in any
changes to prior year comparatives.
The Group’s accounting policies are conservative and appropriate to
the business.
Going concern
After reviewing the Group’s and Company’s budget for the next financial
year, and other longer term plans, the directors are satisfied that, at the
time of approving the financial statements, it is appropriate to adopt the
going concern basis in preparing the financial statements.
Financial Review continued
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Share price at 31 March
(adjusted for capitalisation issue on 30 September 1999)
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