27 Jun 2011 12:12
RNS Announcement
Monday 27 June 2011
For Immediate Release
TalkTalk Telecom Group PLC ("Company")
Publication of Annual Report & Accounts 2011
The following documents have today been posted or otherwise made available to shareholders:
·; Annual Report and Accounts 2011
·; Notice of 2011 Annual General Meeting
·; Form of Proxy for the 2011 Annual General Meeting
In accordance with Listing Rule 9.6.1 a copy of each of these documents has been uploaded to the National Storage Mechanism and will be available for viewing shortly at www.hemscott.com/nsm.do.
These documents are also available to view and download from the Company's website at www.talktalkgroup.com.
Copies of the Annual Report and Accounts 2011 and Notice of 2011 Annual General Meeting 2011 may also be obtained from:
The Company Secretary's Office
11 Evesham Street
London
W11 4AR
Compliance with the Disclosure and Transparency Rule 6.3.5 ('DTR 6.3.5') - Extracts from the Annual Report and Accounts 2011
The information below, which is extracted from the Annual Report and Accounts 2011, is included solely for the purpose of complying with DTR 6.3.5. It should be read in conjunction with the Company's Preliminary results announcement for the 12 months to 31 March 2011 issued on 19 May 2011 (available at http://www.talktalkgroup.com/ttg-events/19-05-11.html.) Together these constitute the material required by DTR 6.3.5 to be communicated to the media in unedited full text through a Regulatory Information Service. This material is not a substitute for reading the full Annual Report and Accounts 2011. All page numbers and cross-references in the extracted information below refer to page numbers in the Annual Report and Accounts 2011.
For further information please contact:
Tim Morris +44 (0) 208 753 8243
For media enquiries:
Mark Schmid +44 (0) 7515 034 676
Directors' Responsibilities
The Director's responsibility statement below has been prepared in conjunction with the Annual Report and Accounts 2011 whereas this dissemination document contains extracts from the Annual Report and Accounts 2011 to comply with DTR 6.3.5.
Charles Dunstone - Chairman
Dido Harding - Chief Executive Officer
Amy Stirling - Chief Financial Officer
David Goldie - Group Commercial Director
Roger Taylor - Deputy Chairman
John Gildersleeve - Non-Executive Director
Ian West - Non-Executive Director
John Allwood - Non-Executive Director
Brent Hoberman - Non-Executive Director
We confirm to the best of our knowledge:
1. The financial statements, prepared in accordance with the relevant financial reporting framework, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and
2. The management report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face
Principle risks and uncertainties
In common with other organisations, we are affected by a number of risks, not all of which are in our control. Some risks, such as UK macroeconomic factors, are likely to affect the performance of UK businesses generally, while others are particular to our operations. This section sets out the material risks to the Group and how we seek to mitigate them in the day to day running of our business.
1. Competitive environment
Potential impact: Increased competition in the UK broadband market may impact financial performance.
Mitigation: We regularly monitor the product offerings of key competitors in the market. This results in an ongoing review of the customer proposition and the overall value of our products.
2. Regulatory environment
Potential impact: Changes in regulated prices can significantly impact the Group's performance.
Mitigation: We actively participate in the pricing discussions had by Ofcom, including the use of
independent experts to provide assistance and evidence as required.
3. Network reliability
Potential impact: Failure to provide a reliable service causes customer churn.
Mitigation: We focus continually on improving network resilience and performance, and continue to invest to ensure we keep pace with customers growing demands.
4. Change management
Potential impact: We are undertaking a significant change to our organisational structure at the start of the 2012 financial year. Disruption to business operations and back office functions may impact financial performance.
Mitigation: We have a Group Change Forum comprised of senior managers which is responsible for centrally monitoring group wide change. Teams are established to run the component projects of the overall change, with clear plans in place for each area. Regular progress reports are provided to ensure key dates are met.
5. Fibre Access Technology
Potential impact: Demand for fibre access could grow significantly before a wholesale product with acceptable economics is available for the Group to market to customers.
Mitigation: The Group is working with Openreach to develop fibre products which incur lower set up and provisioning costs. There is close liaison with Ofcom to ensure there is regulatory support for development of fibre products suitable for mass market adoption.
6. Data integrity and security
Potential impact: Loss of customer data could lead to data protection breaches causing damage to our reputation and fines.
Mitigation: The Group continually reviews its data security and implements new solutions as they become available.
7. Ofcom
Potential impact: During the year we have had a notification from Ofcom of contravention of General Condition 11 under section 94 of The Communication Act 2003. Ofcom may issue a penalty to the Group under this Act.
Mitigation: The Executive team continues to work closely with Ofcom to demonstrate that the Group is taking appropriate action to remedy the issues which led to the notification from Ofcom of the contravention of General Condition 11 under section 94 of the Communications Act. In addition, the Group has established a Compliance Committee chaired by the Senior Independent Director, John Gildersleeve. This Committee monitors the level of and reason for customer complaints and ensures appropriate remedial action is taken.
8. Television
Potential impact: Provision of television services could become a more important driver of competitive advantage in the broadband market.
Mitigation: The Group is part of the YouView joint venture, along with the BBC and other parties, which is developing a television service which includes internet based catch up and video on demand services.
9. End to end process and controls
Potential impact: Failure to operate effective processes across the Group may lead to customer churn, and non-compliance with regulatory requirements.
Mitigation: A Group wide project was started during the year, Project Sunshine, to document, review and improve the end to end processes in the Group. This project is key to driving joined up processes across the Group and improving our customers' experience. The Group's Compliance Committee regularly monitors the level and reason for customer complaints.