Annual Report and Accounts 2006
General
The Directors present their Report together with the audited financial statements for the 52 weeks ended 31 December 2006.
Principal activities
Our principal activities are detailed in Description of Business. The operating companies principally affecting our profit or net assets in the period are listed in Note 36 to the financial statements.
Business review
The Company is required by the Companies Act 1985 to set out in this report a fair review of the business of the Group during the financial year ended 31 December 2006 and of the position of the Group at the end of the year.
A review of the business and a commentary on its strategy, performance and development is set out in the Chairman's statement, Strategic Review and Financial Review. In addition, the principal risks facing the business are detailed in the Description of Business. All the information detailed in those sections which is required for the business review or otherwise for this report is incorporated by reference in (and shall be deemed to form part of) this report. As explained in the Strategic Review, the Group has five strategic goals and ten priorities to focus our resources on a small number of clear objectives. Read an assessment of our performance against these goals and priorities. We also have a new financial scorecard which is discussed on page 15 and key financial performance measures which are discussed in the Financial Review. In addition, the Group's performance can be assessed by comparative data from Euromonitor (for confectionery) and AC Nielsen (for beverages), examples of which are given in the Description of Business, and by our comparative TSR performance against our peer group and the FTSE-100. Performance indicators relating to corporate and social responsibility matters are shown in the strategic review and in the Description of Business, and can also be found in our biennial Corporate and Social Responsibility report and on our website.
Revenue and profit
Revenue during the period amounted to £7,427 million (2005: £6,432 million). Profit before taxation amounted to £738 million (2005: £835 million).
Legal proceedings
The Company and its subsidiaries are defendants in a number of legal proceedings incidental to their operations. The outcome of such proceedings, either individually or in aggregate, is not expected to have a material effect upon the results of our operations or financial position.
Post balance sheet events
There have been no significant post balance sheet events.
Financial instruments
Information on our use of financial instruments, our financial risk management objectives and policies, and our exposure to credit and liquidity risks, are described in the Financial Review. Our exposure to cash flow and price risks are described in Note 28 to the financial statements.
Share capital
Changes in our share capital are detailed in Note 29 to the financial statements.
At the 2007 Annual General Meeting, renewal will be sought of the authorities: (a) for the Directors to allot relevant securities and to allot equity securities for cash other than on a pre-emptive basis, shareowners having approved similar resolutions annually since 1982; and (b) for the Company to purchase its own shares as and if appropriate, shareowners having approved a similar resolution annually since 1998. The Directors have no present intention to issue shares in the Company for cash other than in connection with its share option and incentive schemes. The authority to purchase shares has not been used since 1999.
Corporate and Social Responsibility
Details of our Corporate and Social Responsibility activities are given in the Description of Business section. We also publish a separate Corporate and Social Responsibility report every other year. Copies are available from our website, www.cadburyschweppes.com, or from the Group Secretary.
Employees
Details of our employees, including numbers by geographical region, together with statements of policy about programmes for learning and development, employee involvement, equal employment opportunities and diversity, disabled persons and pensions are given in the Description of Business.
Charitable and political contributions
Details of our charitable contributions are given in the Description of Business.
In 2006, neither the Company, nor any of its subsidiaries, made any donation to any registered party or other EU political organisation, incurred any EU political expenditure or made any contribution to a non-EU political party, each as defined in the Political Parties, Elections and Referendums Act 2000.
Environment
Details of our environmental policy are set out in the Description of Business.
Auditors
In accordance with the provisions of Section 234ZA of the Companies Act 1985, each of the Directors at the date of approval of this report confirms that:
- So far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware; and
- The Director has taken all the steps that he or she ought to have taken as a Director in order to make himself or herself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
The Company's auditors are Deloitte & Touche LLP, who are willing to continue in office and resolutions for their re-appointment and to authorise the Directors to determine their remuneration will be proposed at the AGM.
Note 6 in the financial statements states the auditors' fees, both for audit and non-audit work.