Carphone Warehouse 2002 Annual Report Download - page 24

22 The Carphone Warehouse Group PLC Annual Report 2002
Directors’ report
For the 52 weeks ended 30 March 2002
The Directors have pleasure in presenting the Annual Report and financial statements of The Carphone Warehouse Group PLC for the 52 weeks
ended 30 March 2002.
Principal activities
The principal activity of the Group continues to be the provision of mobile communication products and services. For the purposes of
segmental reporting, operations are classified into three divisions, being Distribution, Telecoms services and Data services.
The subsidiary undertakings principally affecting the results or net assets of the Group in the period are listed in note 13 to the financial
statements.
Results
The profit or loss before tax for the financial period decreased from a profit of £47.4m in the prior period to a loss of £23.0m after exceptional
items and amortisation. No dividend was paid in the period (2001 – £nil) and the Directors do not recommend the payment of a final dividend.
Details of significant events since the balance sheet date are contained in note 30 to the financial statements.
Directors
The names and brief biographical details of the Directors are shown on pages 14 and 15. Particulars of Directors’ remuneration, interests in the
shares of the Company and its subsidiary companies and interests in share options are given in the Remuneration report on pages 19 to 21.
The following changes to the composition of the Board occurred in the period:
Executive Directors
C G Johnson Resigned on 12 July 2001
Non-Executive Directors
H R Snook Appointed on 25 March 2002 with effect from 1 May 2002
The appointment of Hans Roger Snook requires approval in accordance with the Company’s articles of association at the Annual General
Meeting on 30 July 2002. Charles Dunstone, Roger Taylor and John Gildersleeve are required to retire by rotation and stand for re-election. The
Company can terminate Hans Roger Snook’s service agreement and Charles Dunstone’s service agreement on 12 months notice. The Company
can terminate Roger Taylor’s service agreement on 6 months notice. The Company can terminate John Gildersleeve’s service agreement with
immediate effect without any compensation for loss of office if he is not re-appointed at the Annual General Meeting.
Employment of disabled persons
It is the Group’s policy to encourage application for employment from disabled people and to assist with their training and career development,
having regard to particular aptitudes and abilities. Every endeavour is made to find suitable alternative employment and to re-train any
employee who becomes disabled while serving the Group.
Employee involvement
The Group places significant emphasis on its employees’ involvement in the business at all levels. Managers are remunerated according to
results wherever possible and all employees are kept informed of issues affecting the Group through formal and informal meetings and
through the Group’s internal publications. Members of the management team regularly visit all Group locations and discuss matters of current
interest and concern with employees.
Supplier payment policy
The Group’s policy is to agree terms of transactions, including payment terms, with suppliers and, provided that suppliers perform in
accordance with the agreed terms, it is the Group’s normal practice that payment is made accordingly. The number of days outstanding
between receipt of invoices and date of payment calculated by reference to the amount owed to trade creditors at the period end as a
proportion of the amounts invoiced by suppliers during the period, was 44 days (2001 – 53 days). The Company did not have any trade
creditors at 30 March 2002 or 31 March 2001.
Donations
The Group made charitable donations of £87,000 during the period (2001 – £173,000). No political donations were made during either period.