ADD to BW1393, VODAFONE.--(BUSINESS WIRE)-- ADD to BW1393 (VODAFONE) after last graph xxx are now profitable. FINANCIAL REVIEW Review of Results Turnover Group turnover for the financial year increased by 25% to British Pounds 1,749.0m. Turnover in the UK grew by 19%, principally as a result of new subscribers joining the digital network and increasing roaming The ability to use a communications device such as a cellphone or PDA and be able to move from one cell or access point to another without losing the connection. revenues from both visitors using the UK digital network and UK customers using overseas networks. The acquisitions of Talkland, Peoples Phone and Astec did not have a material effect on turnover as their activities derive substantially from services provided by Vodafone, a fellow group subsidiary company. In continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. , turnover increased by 85% to British Pounds 139.8m due to the inclusion of Panafon and Panavox from Feb. 1, 1997, when these companies became subsidiaries following an increase in the group's shareholding to 55%, and also due to subscriber growth in Vodafone S.A. Turnover in the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. grew by British Pounds 46.7m to British Pounds 130.3m principally in Australia, where Vodafone's Pty's subscriber base grew by 57%. Profit on ordinary activities before interest Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. increased by 14% to British Pounds 529.6m. In the UK, operating profit rose by 5% to British Pounds 519.1m and grew at a slower rate than turnover as the costs of migrating subscribers from the analogue (electronics) analogue - (US: "analog") A description of a continuously variable signal or a circuit or device designed to handle such signals. The opposite is "discrete" or "digital". to the digital network grew to British Pounds 52.0m, expenditure on marketing increased and the results of the acquired service providers, Talkland, Peoples Phone and Astec, were consolidated with those of the higher margin network operator. International operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. made an operating profit for the first time of British Pounds 10.5m compared to a loss of British Pounds 27.0m last year. The largest contribution to this advance was achieved in continental Europe, which improved by British Pounds 34.8m as Panafon continued to perform strongly and was fully consolidated from Feb. 1, 1997. Losses in the Pacific Rim increased by British Pounds 5.9m to British Pounds 41.6m because of lower profits in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. due to the roll out of a new network and distribution difficulties in Australia. Profits nearly doubled in the rest of the world to British Pounds 19.7m as strong growth continued in South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . The overall impact of the movement of exchange rates on the group's operating profit was not material. The profit on disposal of fixed asset investments arose from the sale of the group's 50% holding in Orbitel Mobile Communications Limited, the sale of 5% of the group's investment in Vodafone Pty to AAP AAP - Association of American Publishers Information Services See Information Systems. Pty Ltd PTY LTD Propriety Limited (company structure in Australia) in fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. of an agreement entered into when the license was granted and the sale by the group's associate Europolitan of its 20% interest in Sonofon, a Danish GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. operator. Interest The group's net interest cost increased by British Pounds 18.5m as borrowings increased by British Pounds 473.1m to finance acquisitions and fund overseas associate companies. Taxation The effective tax rate fell by 2.7% to 31.9% as overseas profits and gains on the disposal of fixed asset investments were sheltered from taxation principally as a result of the utilization of historic start up losses. Excluding the effect of disposals the effective tax rate fell by 1.7% to 33.5%. Earnings per share Earnings per share rose from 10.15p to 11.89p, an increase of 17%. Dividend The proposed final dividend of 2.45p gives a total for the year of 4.81p, an increase of 20%, and reflects the group's underlying profitability and liquidity. Dividend cover of 2.5 has been maintained. Balance Sheet Review The group's balance sheet remains strong and liquidity good. Fixed Assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → Fixed assets increased by British Pounds 504.5m. Those intangible fixed assets, which are capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the group's accounting policy, increased by British Pounds 58.1m, mainly due to the inclusion of the unamortized portion of Panafon's license fee following Panafon's acquisition. Tangible fixed assets increased by British Pounds 403.2m as a result of capital expenditure of digital networks in the UK and Australia and the inclusion of the fixed assets of subsidiaries acquired in the year. The movement in investments, which includes equity investments and loans advanced to associates and other investments, is analyzed an·a·lyze tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es 1. To examine methodically by separating into parts and studying their interrelations. 2. Chemistry To make a chemical analysis of. 3. below: Investments British Pounds in millions At April 1, 1996 475.7 New investments 350.7 Reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. as subsidiaries (153.6) Disposal of investments (29.0) Goodwill written-off (48.1) Currency translations (100.7) Share of profits in associated undertakings 23.9 At March 31, 1997 518.9 Working Capital Working capital (excluding cash, overdrafts and bank loans) decreased by 104% as a result of an increase in creditors due within one year of British Pounds 310.5m offset by a British Pounds 111.9m increase in debtors due within one year. The increases are due to the inclusion of working capital balances of subsidiaries acquired in the year and the growth of the business. Equity Shareholders' Funds Equity shareholders' funds were British Pounds 770.0m, British Pounds 252.1m lower than at the end of last year, as retained profits of British Pounds 216.3m were offset by currency translation adjustments of British Pounds 123.2m to the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of overseas investments to reflect the strength of sterling at the year end and goodwill written-off of British Pounds 360.0m in respect of acquisitions made during the year. An analysis of goodwill written-off is set out below: British Pounds in millions Peoples Phone 103.2 Talkland 86.1 Panafon/Panavox 58.3 Europolitan 36.3 Others 76.1 360.0 Cash Flows and Net Borrowings Net cash flow generated from operating activities of British Pounds 644.3m was used mainly to fund capital expenditure of British Pounds 351.2m to enhance and expand the digital networks in the UK and Australia, pay tax of British Pounds 150.1m and finance dividends of 130.0m. New investments of British Pounds 528.0m which comprise equity and shareholder loans and the external debt of subsidiaries acquired, were financed principally by debt and as a result net borrowings increased by British Pounds 473.1m to British Pounds 680.6m. An analysis of new investments is set out below: British Pounds in millions SFR SFR Swiss Franc (national currency) SFR Société Française du Radiotéléphone (French cellular provider) SFR Single Family Residence SFR Single Family Residence (real estate) 240.4 Panafon/Panavox 96.7 Talkland 65.5 Peoples Phone 55.0 Others 70.4 528.0 The figures above exclude consideration of British Pounds 133.1m payable after March 31, 1997. Treasury Funding and liquidity The group has a strong financial position demonstrated by credit ratings of A-1/P-1 short term and A+/A2 long term from Standard & Poor's and Moody's, respectively. At the year end substantial funds were available to the group including committed bank facilities and two British Pounds 250m Eurobonds redeemable Redeemable Eligible for redemption under the terms of an indenture. in November 2001 and March 2004 which were issued during the year. The funds mature as follows: Analysis by year of Committed expiry Bank Facilities Bonds Total millions of millions of millions of British British British Pounds Pounds Pounds Less than 1 year 103.0 - 103.0 Between 1-2 years 140.0 - 140.0 Between 2-5 years 596.0 250.0 846.0 More than 5 years - 250.0 250.0 839.0 500.0 1,339.0 The group has an uncommitted British Pound 500m Euro Commercial Paper program which was activated activated a state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. in May 1996. Additional uncommitted facilities Uncommitted Facility A credit facility with no restrictions placed upon the lending institution regarding the amount of funds to be lent. Notes: Under this arrangement, the lending institution is not under any obligation to provide a specific sum to the borrowing company. are also available from banks. Any surplus funds Surplus funds Cash flow available after payment of taxes in a project. are invested with counterparties Counterparties The parties on either side of an interest rate swap or a currency, equity or commodity swap, or to an options or futures position. who have high credit ratings. Foreign exchange and interest management Foreign currency exposures on known future transactions are hedged, including those resulting from repatriation Repatriation The process of converting a foreign currency into the currency of one's own country. Notes: If you are American, converting British Pounds back to U.S. dollars is an example of repatriation. of overseas dividends and loans. The effects of foreign currency movements on the translation of the results and net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. of overseas operations are not hedged although such exposure is partly reduced by borrowing in foreign currency denominated debt. The group's main interest rate exposure is to sterling interest rates. Interest rates are fixed when net interest is forecast to have a significant impact on profits. At the end of the year, 66% of the group's net borrowings were fixed for a period of at least one year. A variety of hedging instruments may be used, including spot and forward foreign exchange contacts, options, swaps, futures and forward rate agreements. Borrowings The directors have set ratios for net interest cover, market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. to net debt and gross cash flow to net debt, which set internal limits for the maximum levels of debt. These ratios are consistent with those used by companies with very high credit ratings. At the end of the year the group's net debt had the following maturity profile: Analysis by repayment year British Pounds in millions Less than 1 year 157.7 Between 1-2 years - Between 2-5 years 275.7 More than 5 years 247.2 680.6 and was denominated or hedged into the following currencies: % Sterling 89 Greek Drachma 7 Other European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. currencies 4 100 Borrowings are denominated principally in sterling as: -- Established UK businesses generate strong sterling cash flow which will be used to repay debt. -- Foreign currency investments are expected to be held for a longer period than monies borrowed to fund those investments. -- The Group does not hedge its overseas net assets with respect to foreign currency translation differences since net assets represent a small proportion of the market value of the Group and overseas operations provide risk diversity. As foreign currency income streams increase further borrowings may be made in currencies other than sterling. Consolidated Profit and Loss Account For the Year Ended March 31 1997 1997 1996 British British Pounds Pounds Millions Millions Turnover Continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the 1,642.4 1,402.2 Acquisitions 106.6 - ------- ------- 1,749.0 1,402.2 Operating profit Continuing operations 521.3 465.8 Acquisitions 8.3 - ------ ------- 529.6 465.8 Disposal of fixed asset investments 25.9 7.2 Profit on ordinary activities before interest 555.5 473.0 Net interest (payable)/receivable (16.4) 2.1 Profit on ordinary activities before taxation 539.1 475.1 Tax on profit on ordinary activities (171.9) (164.6) Profit on ordinary activities after taxation 367.2 310.5 Equity minority interests (3.4) (0.7) Profit for the financial year 363.8 309.8 Equity dividends (147.5) (122.6) Retained profit for the financial year 216.3 187.2 Earnings per share 11.89p 10.15p -0- Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. March 31 1997 1997 1996 British British Pounds Pounds Millions Millions Fixed Assets Intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. 147.4 89.3 Tangible assets Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. 1,260.3 857.1 Investments 518.9 475.7 -------- ------- 1,926.6 1,422.1 Current Assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. Stocks 19.7 8.2 Debtors 433.7 320.5 Liquid investments 10.6 3.6 Cash at bank and in hand 31.2 9.0 ------- ------- 495.2 341.3 Creditors: amounts falling due within one year 1,013.2 583.3 Net Current Liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. (518.0) (242.0) Total Assets Less Current Liabilities 1,408.6 1,180.1 Creditor An individual to whom an obligation is owed because he or she has given something of value in exchange. One who may legally demand and receive money, either through the fulfillment of a contract or due to injury sustained as a result of another's Negligence : amounts falling due after more than one year 572.7 148.3 Provisions for Liabilities and Charges 7.3 8.3 ------ ------- 828.6 1,023.5 Capital and Reserves Called up share capital 153.3 152.8 Share premium account 54.7 45.3 Capital reserve 4.1 4.1 Profit and loss account 557.9 819.9 ------- ------- Total equity shareholders' funds 770.0 1,022.1 Equity minority interests 34.2 1.4 Non-equity minority interests 24.4 - ------- ------- 828.6 1,023.5 -0- Consolidated Cash Flow For the Year Ended March 31 1997 1996 1997 Restated British British Pounds Pounds Millions Millions Net Cash Inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. From Operating Activities 644.3 621.3 Returns on Investments and Servicing of Finance Interest received 18.4 18.5 Interest paid (21.3) (9.9) Net Cash (Outflow)/Inflow From Returns on Investments and Servicing of Finance (2.9) 8.6 Taxation (150.1) (127.1) Capital Expenditure and Financial Investment Purchase of intangible fixed assets (0.8) (59.6) Purchase of tangible fixed assets (350.4) (295.8) Purchase of trade investments (240.4) (27.8) Disposal of trade investment 4.7 - Disposal of tangible fixed assets 2.8 8.9 Loans to associated undertakings (46.1) (81.1) Loans repaid by associated undertakings 4.2 - Net Cash Outflow From Capital Expenditure and Financial Investment (626.0) (455.4) Acquisitions and Disposals Purchase of subsidiary undertakings (122.6) - Net overdrafts acquired with subsidiary undertakings (77.5) - Disposal of interest in subsidiary undertaking 22.7 - Purchase of interest in associated undertakings (11.1) (4.1) Purchase of subscriber bases (30.3) - Disposal of interest in associated undertakings 26.8 6.6 Net Cash (Outflow)/Inflow From Acquisitions And Disposals (192.0) 2.5 CONSOLIDATED CASH FLOW (CONTINUED) FOR THE YEAR ENDED MARCH 31 1997 1996 1997 Restated British Pounds, British Pounds Millions Millions Equity Dividends Paid (130.0) (106.6) Cash Outflow before use of liquid resources and financing (456.7) (56.7) Management of liquid resources Short term deposits (7.0) (3.6) Net cash outflow from management of liquid resources (7.0) (3.6) Financing Issue of ordinary share capital 9.9 7.3 Issue of shares to minorities 5.7 - Debt due within a year: Increase in commercial paper program 122.1 - (Decrease)/increase in uncommitted bank facilities (22.3) 44.2 Debt due beyond a year: Decrease in bank loans (120.1) - Issue of bond repayable in 2001 244.9 - Issue of bond repayable in 2004 247.2 - Net cash inflow from financing 487.4 51.5 Increase/(Decrease) in cash in the year 23.7 (8.8) Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash in the year 23.7 (8.8) Cash inflow from increase in debt (471.8) (44.2) Cash outflow from increase in liquid resources 7.0 3.6 Change in net debt resulting from cash flows (441.1) (49.4) Bond issued on acquisition of trade investment (12.9) - Loan notes issued on acquisition of subsidiary (20.2) - Accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. on discounted financial instruments (2.9) - Translation difference 4.0 1.9 Movement in net debt in the year (473.1) (47.5) Opening net debt (207.5) (160.0) Closing net debt (680.6) (207.5) CONSOLIDATED STATEMENT OF TOTAL RECOGNIZED GAINS Recognized Gain The amount of gain reported for income tax purposes. Notes: You can defer recognizing some gains until the following year(s). See also: Capital Gain, Capital Loss, Deferred Income Tax, Drought Sale, Exempt Income, Exemption, Gain, Recognized Loss AND LOSSES FOR THE YEAR ENDED MARCH 31 1997 1997 1996 British Pounds, British Pounds, Millions Millions Profit for the financial year 363.8 309.8 Currency translation (123.2) 19.7 Total recognized gains and losses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the year 240.6 329.5 MOVEMENTS IN EQUITY SHAREHOLDERS' FUNDS FOR THE YEAR ENDED MARCH 31 1997 Profits for the financial year 363.8 309.8 Equity dividends (147.5) (122.6) 216.3 187.2 Currency translation (123.2) 19.7 New share capital subscribed 9.9 7.3 Goodwill written-off (360.0) (14.6) Scrip dividends scrip dividend An unusual type of dividend involving the distribution of promissory notes that call for some type of payment at a future date. Scrip dividends generally signal that a firm is short of cash. Compare liability dividend. 4.6 5.4 Other 0.3 (0.2) Net movements in equity shareholders' funds (252.1) 204.8 Opening equity shareholders' funds 1,022.1 817.3 Closing equity shareholders' funds 770.0 1,022.1 NOTES TO THE PRELIMINARY RESULTS FOR THE YEAR ENDED MARCH 31 1997 1. Basis of preparation The preliminary results for the year ended March 31 1997 are an abridged statement of the full Group accounts. The information relating to the year ended March 31 1996 is an extract from the latest published accounts, which have been delivered to the Registrar of Companies The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. , on which the Auditors' Report was unqualified. In October 1996, the Accounting Standards Board The role of the Accounting Standards Board (ASB) is to issue accounting standards in the United Kingdom. It is recognised for that purpose under the Companies Act 1985. It took over the task of setting accounting standards from the Accounting Standards Committee (ASC) in 1990. issued Financial Reporting Standard 1 (Revised 1996) 'Cash Flow Statements' which the Group has adopted in this preliminary announcement. Comparatives have been restated accordingly. Turnover arising from the acquisitions of Talkland International (UK) Limited, The Peoples Phone Company Plc and Astec Communications Limited, which is included within acquisitions in the profit and loss account, is incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. as those companies' activities derive substantially from services provided by Vodafone Limited, a fellow Group subsidiary company. 2. Segmental segmental /seg·men·tal/ (seg-men´t'l) 1. pertaining to or forming a segment or a product of division, especially into serially arranged or nearly equal parts. 2. undergoing segmentation. analysis The Group operates substantially in one class of business, the supply of mobile telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. and products. Analyses of turnover, profit on ordinary activities before interest and net assets by geographical region are as follows: 1997 1996 Profit/(loss) Profit/(loss) on ordinary activities before Turnover interest Turnover British British British Pounds, Pounds, Pounds, Millions Millions Millions United Kingdom 1,478.9 529.3 1,242.9 492.8 Continental Europe 139.8 42.6 75.7 (1.4) Pacific Rim 130.3 (36.1) 83.6 (35.7) Rest of the World - 19.7 - 17.3 1,749.0 555.5 1,402.2 473.0 Notes to the preliminary results for the year ended March 31, 1997 1997 1996 Net assets Net assets (British pounds in millions) United Kingdom 482.3 513.1 Continental Europe 501.9 322.3 Pacific Rim 442.5 320.7 Rest of the World 82.5 74.9 Net borrowings (680.6) (207.5) 828.6 1,023.5 3 Dividends A final dividend of 2.45p (1996-2.04p) per share is proposed to be paid on August 15, 1997 to shareholders on the register of members on June 13, 1997, making a total of 4.81p (1996-4.01p) for the year. Shareholders may take a scrip dividend alternative to the cash dividend in accordance with the rules of Vodafone Group Plc's Scrip Dividend Scheme. The ex-dividend rate is June 9, 1997 and the last date for elections or variations to mandates under the Scrip Dividend Scheme is July 16, 1997. 4 Earnings per share Earnings per share are based upon the weighted average of 3,060,400,713 (1996 - 3,052,281,614) ordinary shares in issue throughout the year and are calculated on the profit on ordinary activities after taxation and minority interests of 363.8m British Pounds (1996 - 309.8m British Pounds). 5 Reconciliation of operating profit to net cash inflow from operating activities 1996 1997 Restated (British pounds in millions) Operating profit 529.6 465.8 Depreciation and amortization 154.3 116.9 Share of profits of associated undertakings (23.9) (6.2) Dividends from associated undertakings 6.0 6.1 (Increase)/decrease in stocks (0.6) 4.1 Increase in debtors (13.2) (35.1) (Decrease)/increase in creditors (7.9) 69.7 Net cash inflow from operating activities 644.3 621.3 CONTACT: Vodafone Group Plc Ken Hydon, (01635) 33251 or D.F. King & Co. Inc. Jennifer Wall, 212/269-5550 |
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