BT’s revenues grew by 6% to over £19.5 billion in the past year and profit before tax and specific items grew 5% to nearly £2.2 billion.
The figures were revealed today by BT chairman Sir Christopher Bland when addressing the company’s shareholders at the annual general meeting at the Barbican, London.
Bland described the year as excellent and also said that in 2005-6, BT further reduced their level of debt to £7.5 billion, while at the same time spending over £360 million buying back their own shares.
The year’s dividend pay-out ratio was 61% of earnings and BT expects it to rise to around two-thirds of earnings in the 2007-8 financial year.
With regards to BT’s strategy in the face of major technological advances, Bland said that the group’s focus had been on “what millions of customers want. Using the internet to make cheap international phone calls, or using the broadband network to deliver the BT Vision TV service later this year.”
Bland finished by saying: “Ours is a company which succeeds by enabling people and organisations to change. But to do this, some factors in our business need to be unchanging. One of those factors is the commitment of our people who have shown immense dedication, determination, talent and ingenuity over the last few years.”
BT also announced today that Maarten van den Bergh, who has been a non-executive director of BT since September 2000, will succeed Sir Anthony Greener as deputy chairman when he steps down from the board on 30 September 2006 at the end of his six year term. Maarten van den Bergh will also become chairman of the remuneration committee and act as the senior independent director.
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