Carphone Warehouse 2009 Annual Report Download - page 9

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Directors’ Report –
Business Review
www.cpwplc.com 5
Through organic growth and
acquisitions, the Group has delivered
a high rate of compound growth in
revenues and protability over the last
10 years. From a business that used to
be predominantly reliant on its UK retail
business, we now have signicant retail
operations across continental Europe
and a highly visible recurring revenue
base from our UK residential telecoms
operations, creating a much broader and
better diversied business.
Growing and diversifying
the business over the long term
▪
Growth: we remain focused
on growing our businesses
in strategically important
areas. The opening of our
first Best Buy Big Box stores
in the UK, the continued
expansion of our US interests
through Best Buy Mobile,
and further growth in our
UK broadband base will be
central to our plans.
▪
Cash: we have set ourselves
ambitious targets for the year
ahead to generate operating
free cash flow* of over £150m,
after all investment in the
Big Box business.
▪
Operational efficiency:
we have undertaken a
reorganisation programme
covering all aspects of our
business. Our goal is to
reduce our operating cost
base within Best Buy Europe
and TalkTalk Group by around
£50m and £10m respectively,
without compromising on the
customer experience.
▪
Transparency: we are
enhancing our financial
disclosure and simplifying
our KPI reporting to allow
investors to compare our
businesses more easily with
peer group companies.
Key goals for the
coming year
“ ”
Short-term diculties in macro-economic
conditions should not distract from the
scale of opportunity.
Charles Dunstone
2009
Revenue 2000
£698m
Revenue 2009
£4,948m
* Operating free cash ow is dened
as EBITDA, adjusted for working
capital movements and non-cash
items, less capital expenditure.
2000
UK retail and distribution – £533m
Non-UK retail and distribution
– £165m
2009
UK retail and distribution – £1,706m
Non-UK retail and distribution
– £1,857m
TalkTalk Group – £1,385m
Aggregated divisional
revenue
(Including 100% of Best Buy Europe)