| Directors'
report
The Directors are pleased to present their Annual Report and the audited
accounts for the year ended 31 December 2000.
Principal
activities
The principal activity of the Group is the provision of mass passenger
transport services.
Review
of the business
A review of the Group's activities, the principal events during the year
and the future development of the Group is given in the Chairman's statement,
the Chief Executive's statement, the Review of operations, and the Finance
Director's report set out on pages 6 to 33.
Profit
and dividends
The profit on ordinary activities before tax for the year ended 31 December
2000 was £65.0m and retained profits of £25.1m were transferred
to reserves.
The
Directors recommend a final net dividend of 14.2p per share, which, together
with the interim net dividend of 6.5p per share paid on 27 October 2000,
gives a total net dividend for the year of 20.7p per share (1999: 18.2p).
If approved by shareholders, the final dividend will be paid on 4 May
2001 to shareholders on the register at 6 April 2001.
Directors
The Directors of the Company who served during the year are listed below:
Michael
Davies
Phil White
Richard Brown
Alun Cathcart (resigned 4 September 2000)
Barry Gibson
Clive Myers
Ray O'Toole
William Rollason
James Watson
Michael
Davies and Phil White will retire by rotation at the Annual General Meeting,
and, being eligible, will offer themselves for re-election.
David
Ross and Tim Stevenson, who were appointed Directors on 1 February 2001,
will stand for election at the Annual General Meeting. Clive Myers and
James Watson will stand down from the Board at the Annual General Meeting
and will not seek re-election.
The
names and brief biographies of the current Directors appear on page 35.
Details of the remuneration of the Directors, their interests in shares
of the Company and service contracts are contained in the report on Directors'
remuneration on pages 40 to 43.
Employment
policies
The Group strives to meet its business objectives by motivating and encouraging
its employees to be responsive to the needs of its customers and continually
to improve operational performance. The Group is committed to providing
equality of opportunity to employees and potential employees. This applies
to appropriate training, career development and promotion for all employees,
regardless of physical disability, gender, religion or ethnic origin.
Full
and fair consideration is given to applications for employment received
from disabled persons, according to their skills and capabilities. The
services of any existing employee disabled during their period of employment
are retained wherever possible.
Employee involvement
The Group seeks to enhance the level of employee involvement in its affairs.
Subsidiary companies produce a range of internal newsletters and circulars
which keep employees abreast of developments. In addition, a Group-wide
magazine introduced during the year keeps employees in touch with the
worldwide activities of the Group. A senior management forum is held annually
at which developments within the Group and matters of current concern
are reviewed. Employees are encouraged to discuss matters of interest
to them and subjects affecting day-to-day operations of the Group with
management. Dialogue takes place regularly with the trade unions and other
employee representatives on a wide range of issues. Employees are able
to share in the Group's results through a number of profit sharing and
share incentive schemes.
Environmental
policy
The Group recognises that many of its businesses have an environmental
dimension and is committed to ensuring that sound environmental management
practices are integrated into its operations and that high but relevant
standards are established across the Group. Further details of environmental
initiatives and the Group's environment policy are to be found on pages
26 and 29.
Charitable
and political contributions
Charitable donations made during the year totalled £212,614. It
is the Group's policy not to make political contributions and accordingly
none were made in the year.
Creditors'
payment policy and practice
It is the Company's policy to agree terms of payment prior to commencing
trade with any supplier and to abide by those terms based on the timely
submission of satisfactory invoices.
Trade
creditor days of the Company for the year ended 31 December 2000 were
38 days (1999: 31 days), based on the ratio of Company trade creditors
at the end of the year to the amounts invoiced during the year by trade
creditors.
Substantial
shareholdings
The Company has been notified of the following holders of 3% or more of
its issued share capital for the purpose of Section 198 of the Companies
Act 1985, as at 15 March 2001:
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