| The Directors
submit their report and audited financial statements of the Company,
International Power plc, and the Group, which includes its subsidiary
undertakings, for the year ended 31 December 2001.
The operating and financial
review and prospects, the discussion on corporate
governance, the environment,
health and safety review, the discussion in respect of employees
and the remuneration report
form part of this report. The audited financial statements are available
in the Financial Statements
section.
The names and biographical details of the Directors of the Company
are given under the Board of Directors
section.
The Group's principal activity is the generation of electricity.
The Directors do not propose the payment of a dividend for the
year ended 31 December 2001.
During the financial period, International Power and its
majority-owned subsidiaries donated £602,900 to
charitable causes. Companies in which International Power
has a minority shareholding donated a further £194,476.
Projects supported include the building of a school in
Pakistan for 240 children. The first phase of this school,
including five classrooms, will be ready in August 2002,
with completion due in February 2003.
The Company also supported LEPRA, the Salvation Army and SCOPE.
The Company match-funded staff collections for Children in Need.
The Company has a charitable donations policy that is implemented
by a charities committee. The Company does not make political donations.
For the period 1 January 2001 to 31 December 2001 expenditure
on the research and development programme was zero. We will look
to take advantage of technical advances as they arise but, currently,
pure research is not a core element of the business of International
Power. We continue to seek to develop power stations in the regions
in which we operate.
A resolution will be proposed at the 2002 Annual General
Meeting (AGM) to renew the authority to purchase a
proportion of the Company's shares.
An explanation of this and other resolutions being proposed at the 2002 AGM
will be given with the Notice of AGM, which will be sent to shareholders
during April 2002.
As at the date of this report, the Company is aware of the
following interests in 3% or more of the issued share
capital of the Company.
 |
|
|
No. |
|
% |
|
| Merrill Lynch |
| Investment Managers |
|
111,928,823 |
|
10.01 |
|
| Morley Fund |
| Management Limited |
|
45,782,440 |
|
4.10 |
|
| AXA S.A. |
|
40,552,015 |
|
3.63 |
|
| Franklin Resources
Inc. |
|
34,243,433 |
|
3.06 |
|
| Legal and General |
| Investment Management |
| Limted |
|
34,230,622 |
|
3.06 |
|
At 31 December 2001, 1,709,084 International Power Ordinary Shares
were held in trust for the benefit of current and former employees
of the Company. The shares had a nominal value of £854,542 and a
market value of £3,460,895. The currently operational employee share
plans for which these shares may be utilised are the Profit Sharing
Share Scheme, the Restricted Share Plan and the Demerger Share Plan.
The Directors are satisfied that the Company and the Group have
adequate resources to continue to operate for the foreseeable future.
For this reason, they continue to adopt the 'going concern' basis
for preparing the accounts.
A resolution to re-appoint KPMG Audit Plc as auditors of the Company
and authorise the Directors to agree their remuneration will be
proposed at the AGM.
International Power aims to observe the highest standards
of business practice as both a buyer and a seller of
products and services. International Power's average
number of days outstanding in respect of trade creditors at
31 December 2001 was 34 days.
By order of the Board
Stephen Ramsay
Company Secretary |
18 March 2002 |
|
