|Report of the directors|
The directors submit their report and the audited financial statements of the company, British Telecommunications plc, and the group, which includes its subsidiary undertakings, for the year ended 31 March 1996.
The groupís principal activity is the supply of telecommunication services and equipment. In the year, 98% of group turnover arose from operations in the United Kingdom.
In addition, Mr Michael Hepher and Mr Paul Bosonnet served on the Board until their retirement as directors on 31 December 1995, and Sir Michael Bett served until his retirement on 31 January 1996.
In accordance with the articles of association, Sir Peter Bonfield and Dr Iain Anderson, having been appointed to the Board since the last annual general meeting, retire at the annual general meeting and will be proposed for election. Sir Iain Vallance, Sir Ewen Fergusson and Mr Robert Brace retire by rotation and will be proposed for re-election. Details of these directorsí service contracts or contracts of appointment are shown in the report of the Board Committee on Executive Remuneration.
During and at the end of the financial year, no director was materially interested in any contract of significance in relation to the groupís business.
HM Governmentís present beneficial shareholding is 30 million shares (0.5% of the issued ordinary shares). Under the share bonus arrangements made under the UK Governmentís offer for sale in 1993, shares will be transferred from HM Government to eligible individuals who purchased shares in the offer and continue to hold them until 31 July 1996.
Policy on the payment of suppliers
BT has a variety of payment terms with its suppliers. The terms for payments for purchases under major contracts are settled when agreeing the other terms negotiated with the individual suppliers. It is BTís policy to make payments for other purchases within thirty working days of the invoice date, provided that the relevant invoice is presented to the company in a timely fashion and is complete. BTís payment terms are printed on the companyís standard purchase order forms or, where appropriate, specified in individual contracts agreed with suppliers.
Close company provisions
Annual general meeting resolutions
By order of the Board
C R Green