Carphone Warehouse 2012 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2012 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 90

  • 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
  • 87
  • 88
  • 89
  • 90

Carphone Warehouse Group plc Annual Report 20122
It has been another eventful and
successful period for theGroup.
By disposing of ourinterest
inBest Buy Mobile for £838m,
wecrystallised significant value
forshareholders.
Charles Dunstone, Chairman
IN SUMMARY
— Disposal of our interest in Best Buy
Mobile for £838m; £1.72 per share
returned to shareholders
— Launch of Global Connect, enabling
theroll‑out of our connectivity strategy
tonew territories
— Closure of Best Buy UK business
— CPW Europe and Virgin Mobile France
maintained EBIT, despite market
andconsumer challenges
It has been another eventful and successful period for the Group.
During the year we undertook a comprehensive strategic review
which led to significant Group structural changes, including the
disposal of our interest in Best Buy Mobile, the closure of our
Best Buy UK ‘Big Box’ trial stores and the creation of a new
business called Global Connect. These transactions simplified
and improved the joint arrangements through which Best Buy
andCarphone Warehouse are harnessing the considerable
growth potential in the sale of connected products and services.
By disposing of our interest in Best Buy Mobile for £838m,
wecrystallised significant value for shareholders, particularly
inview of the absence of any capital investment, and were able
toreturn £1.72 per share to shareholders.
The 11 trial Best Buy UK ‘Big Box’ stores performed well atthe level
of customer satisfaction, but they did not have the national reach
toachieve scale and brand economies. This and thelack of visibility
of an acceptable rate of return led us to close the business with effect
from January 2012. The large majority of Best Buy UK employees
who wanted to remain with the business have been redeployed
invarious roles throughout CPWEurope.
We also launched Global Connect, a new joint venture with Best Buy,
which represents an exciting, low‑risk opportunity to recreate the
success of Best Buy Mobile and roll‑out our connectivity strategy
into high growth emerging markets. The first stores will be opened
in China during Summer 2012 and we hope to announce new
territories in the year ahead.
Our core businesses have performed well during the year.
CPWEurope continues to take advantage of its positioning in
theConnected World, focusing on its newly designed store format,
wider product and service proposition and strong relationships
withnetwork partners, all of which have enabled us to meet our
EBIT target for the year. Virgin Mobile France proved to be a resilient
business in a very competitive market, with strong revenue growth,
and we are excited about the opportunities that the move to a Full
MVNO andlaunch of quad‑play will bring.
We are pleased to recommend a final dividend of 3.25p per share
which will be paid on 3 August 2012 to shareholders on the record
as of 6 July 2012.
Our people have done a tremendous job, so that we face the future
in robust shape. On behalf of the Board I would like to thank them
all for their hard work and dedication.
Charles Dunstone, Chairman
CHAIRMAN’S STATEMENT