Carphone Warehouse 2011 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2011 Carphone Warehouse annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 86

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86

Carphone Warehouse Group plc Annual Report 2011 03
OVERVIEW
potential to widen its penetration and build
its market share through expanding its
store-within-a-store space and by rolling
out new stand-alone stores. The business
delivered connections growth of 28%
in 2010-11, on top of 30% growth in the
previous year, and an increase in Best Buy
Europe’s profit share of 111% to £97.9m.
A year on from the launch of Best Buy
branded stores in the UK, I would like to
highlight the fantastic achievement by Best
Buy Europe in getting the business up and
running. We have been extremely pleased
with the customer feedback – which is a
credit to the quality of the team – and have
learned a great deal about opportunities in
the broader consumer electronics market.
With the benefit of this experience we are
in the process of evolving our strategy for
this business.
We are delighted with the progress of
Virgin Mobile France. It has moved into
profit, and its customer growth has
significantly exceeded our expectations.
Its acquisition of Tele2 has given the
business additional scale, and the
successful integration has delivered all
the synergies promised. Virgin Mobile
France now has 1.9m customers, and
we are beginning to see strong profit and
cash generation. It has continued to win
customer service awards, and the Virgin
brand continues to maintain strong levels
of recognition in France. Its financial
performance reflects the business
transformation, with a 2010 £22.2m
Headline EBIT loss becoming a 2011
Headline EBIT profit of £20.6m.
In summary, a strong performance
from Carphone Warehouse Group in
its first year post demerger, and a
clear demonstration of the value of our
combination with Best Buy. We believe we
are well positioned for the future and this,
coupled with our financial strength, has
led us to commit to a progressive dividend
policy, starting with a recommended
dividend for the year just ended of
5.0 pence per share. This is to be paid
on 5 August 2011 to shareholders on the
record as of 8 July 2011.
Everything that the Carphone Warehouse
Group has achieved and all its potential
are down to the commitment, efforts and
quality of all our people. On behalf of the
Board, I would like to thank them very
much indeed.
Charles Dunstone, Chairman
CARPHONE WAREHOUSE GROUP EVOLUTION
Carphone has a strong
track record of growing
successful businesses,
applying its extensive
experience, commercial
relationships and an eye
for an opportunity to
build value.
BEST BUY
UK
2010
Launch of Best
Buy UK with 6
stores opened
in 2010-11
VIRGIN MOBILE
FRANCE
TALKTALK
GROUP
2009
Acquires
Tele2 France
providing
additional
scale
2006
Launch of
Virgin Mobile
France
BEST BUY
MOBILE US
2006
CPW Europe
assists Best
Buy in roll-out
of US mobile
phone offering
CPW
EUROPE
2008
Best Buy acquires 50% of CPW Europe and its Best
Buy Mobile profit share to form Best Buy Europe
1996
Start of
international
expansion –
stores opened
in France and
Ireland. Now
stores in
9 countries
1989
Carphone
Warehouse
starts trading
in the UK
2010
Demerged as
separately listed
company
2003
Launched
TalkTalk, which
develops to
become one
of the UK’s
leading
telecoms
companies
with over 4m
customers