Carphone Warehouse 2005 Annual Report Download - page 5

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KEY ACHIEVEMENTS
Chairman’s Statement
Wehave achieved another year of rapid growth.
The mobile phone market has continued to grow
after last year’s recovery, and our position within it has
strengthened significantly. Overall Group revenues were
up 27.4% to £2,355.1m and headline earnings per share
rose 37.9% to 9.39p. Statutory earnings per share rose
76.3% to 5.59p and the Board is proposing a final
dividend of 1.25p, taking the total for the year to
1.80p – an increase of 38.5% on 2004.
Once again the quality of our earnings improved. The
evolution of our differentiated business model, based
on providing higher value services beyond the point of
sale but with the store portfolio at its heart, has reached
the stage where over 56% of Group contribution comes
from recurring income streams. This is likely to grow
further this year as TalkTalk moves strongly into profit.
At the same time we are absolutely committed to
developing a business that can continue to deliver
attractive rates of profit growth and cash generation
over the long term. This philosophy underpins our
capital expenditureplans for a rapid roll-out of new
stores, increased capacity and efficiency in our fixed
line telecoms network, and continued investment in
technology. This year we opened 247 stores – a record
for the Group – and we plan to open a similar number
in the year ahead. We see numerous opportunities to
continue to improve returns for shareholders through
reinvestment in existing and new businesses.
As we announced in April 2005, I will be stepping down
from the Boardat the AGM in July after three years as
Chairman. It has been a great honour to serve the Group
and I have enjoyed every minute. The business has
come a long way and it has enormous potential. John
Gildersleeve, who has served on the Board as a Non-
Executive Director since the IPO in 2000, has agreed
to become Chairman in my place, and his enormous
experience will be an invaluable asset in steering the
Group through its next exciting phase of growth.
In summary, my last year as Chairman has been the
most successful in the Group’s short history. We have
put substantial distance between ourselves and our
competitors in our coreRetail operations and in TalkTalk.
Growth in revenues and profitability right across the
www.cpwplc.com
We are developing a business
that can continue to deliver
attractive rates of profits
growth and cash generation
over the long term
Group has been substantial. We are confident that the
programme of investment in the last 12 months and
continuing over the coming years will further strengthen
Carphone Warehouse’s competitive position.
Wevalue our human capital most highly of all because
ultimately it is our people that differentiate us from our
peers. Their continued commitment and loyalty to the
Group areoutstanding and I am very honoured to thank
all our employees for their substantial contributions.
Hans Roger Snook, Chairman
3
23.4%
GROWTH IN CONNECTIONS
247
NEW STORES OPENED
37
.9%
GROWTH IN HEADLINE
EARNINGS PER SHARE