Carphone Warehouse 2007 Annual Report Download - page 35

Directors’ Report
The Directors have pleasure in presenting the Annual Report and financial
statements of The Carphone Warehouse Group PLC for the 52 weeks ended
31 March 2007.
Principal activities and review of the business
The principal activity of the Group continues to be the provision of mobile
communication products and services and fixed line communication services.
For the purposes of segmental reporting, operations are classified into three
divisions, being Distribution, Telecoms Services and Dealer. The subsidiary
undertakings principally affecting the results or net assets of the Group in the
period are listed in note 14 to the financial statements.
A detailed review of the business is contained in the Business Review on
pages 10 to 16 in accordance with section 234ZZB of the Companies Act
1985. Our responsibilities under s234ZA of the Companies Act have been
included in the Statement of Directors’ Responsibilities set out on page 32.
Results
The profit before taxation for the financial period decreased from £81.0m
in the prior period to £68.4m. An interim dividend of 1.0p per share
(2006 – 0.75p) was paid in the period. The Directors recommend the
payment of a final dividend of 2.25p per share (2006 – 1.75p). Subject
to shareholders’ approval at the Annual General Meeting, the intended
payment date of the final dividend will be on 3 August 2007 to
shareholders on the register at the close of business on 6 July 2007.
Details of significant events since the balance sheet date are provided
in note 31 to the financial statements.
Directors
The names and brief biographical details of the Directors are shown on
page 21. Particulars of Directors’ remuneration, interests in the shares of
the Company and its subsidiaries, and interests in share options are given
in the Remuneration Report on pages 25 to 30.
Employment of disabled people
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. Details of the average credit period taken on trade
payables are provided in note 19 to the financial statements.
Donations
The Group made charitable donations of £117,000 during the period
(2006 – £107,000). No political donations were made during either period.
Contracts with controlling shareholders
There are no material contracts with controlling shareholders, except as
disclosed in the Remuneration Report on pages 25 to 30.
Share capital
Details of the movements in authorised and issued share capital during
the period are provided in notes 23 and 24 to the financial statements.
Property, plant and equipment
Movements in property, plant and equipment are set out in note 13 to the
financial statements. In the opinion of the Directors the current open market
value of the Group’s interests in freehold land and buildings exceeds the book
value by £31.4m at 31 March 2007. It is expected that any capital gains
would either be covered by capital losses or carried forward for relief against
capital expenditure.
Significant shareholdings
No interests appeared on the Register of Members nor had any been notified
to the Company in accordance with sections 198 to 208 of the Companies
Act 1985 on 4 June 2007.
The total interests of the Directors are detailed in the Remuneration Report
on pages 25 to 30.
Going concern
On the basis of current financial projections and facilities available, the
Directors are satisfied that the Group has adequate resources to continue in
operation for the foreseeable future and consequently the financial statements
continue to be prepared on the going concern basis.
Auditors
Deloitte & Touche LLP have expressed their willingness to continue in office
as auditors and a resolution to re-appoint them will be proposed at the
forthcoming Annual General Meeting.
By order of the Board
The Carphone Warehouse Group PLC
1 Portal Way
London W3 6RS
T S Morris
Company Secretary
4 June 2007
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Governance Financial Statements
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