Untitled

More documents

Recommendations

Info

Finance The increased interest charge includes the year's servicing costs ofvarious acquisitions in the current year anil the previous year' Primarily , however , the increase is due to additional working capital requireil throughout the world for growth and to meet inflation. European Expansion The recent EEC negotiations have thrown a fresh emphasis upon Europe. Since business commentators everywhere are postulatini the effect upon our industry and commerce if Britain Lnters the Common Market, it is perhaps appropriate to re-state EMI's Position. EMI is, of course, already in Europe - in all countries outside the Easternbloc - anil it has leil the records market in most of them for many years. As a Group we continue to believe that the future lies in uorld markets for all our products and, in Europe as in the rest ofthe worlil, we will strive to strengthen our position. We support Britain's entry. Like other leading organisations in Britain we are convinced ofthe great opportunities that membership ofthe EEC will provide. We have made two important investments this year, as part of that policy. In January we bought Fona Radio A/S , Denmark's largeit retailer ofrecords, raclio, television and allied equipment, for €1.4 million. In March, the Group invested just ovei33 rnillion for a 50o/o interest in Voxson SpA, a leading manufacturer oftelevision sets and other domestic electronics products , including those in the rapidly growing market for 8-track stereo equipment. Voxson, a post-war company, is tvpical of many of Europe's younger, d5mamic organisations. Ii iras skitls. energv and a 6ne record ofdevelopmenl' and proiluction. Now it has the backing and resources ofthe EMI Group, enabling it to build up a larger distribution for its products in Europe and els.ewhere. Toilay, of course, the prospects in the twin worlds of communication and entertainment are further stimulated by the infuoduction ofthe audio-visual cassette. Your Group is placed in an unrivalled position to take advantage ofthose systems which become commercially successful, as eventually they must. Our extensive repertoire ofrecords, films and television programrnes will be made available in a1l countries, and we already have two organisations in the instructional and entertainment markets - EMI Special Films Unit and the recently formed RM EMI Visual Prograrnmes Limited. Future Prospeets In the coming year we look for an increase in business activity here in the UK. EMIis in a position to benefit from any improvement in all markets ofthe world, but much depends in the year aheail on a return of confidence in both the UK anil American economies. Further, we do not underestimate the serious difrculties facing the capital goods industries in this country and in the rest ofthe world. Capitol's recovery is vital to the Group's overall results for the coming year. Its new management group has made an outstanding start which encourages us to hope that, subject to there being no further deterioration in general business conditions in the USA, Capitol will not trade at a loss in the cuBent year. We have the people to exploit our worldwitle resources to the full, and once again our thanks are due to all of them, management and employees alile, for their efforts in what has been, by any standards, a difficult year, Changing World Few ofus are not affectetl by the other changes that are going on around us today. Modem communications, in which EMI has played a pioneering role, have shrunk the world in which we started business seventy years ago' Tastes and standards in public entertainment have changed considerably and, tbrough improved communications, are reflected rapidly throughout the wor1d. The market for entertainment, too, is transcending national frontiers more and rnore. The Gloup anal its artists can no longer regard Britai.n, the United States or even, for that matter, the continents of Europe or North Amedca as the only sources for their audience. This is why there is nothing more important to the Group than the promotion of its talent throughout the world, through all 4 the media at its disposal. /-*4
Directors' Report The directors submit their annual r"ep_ort and ecrcounts_ for the year ended 30 June 1971. The name of the Company was changed from 'Electric & Musical Industries Limited'to 'EMI Limited,on l Januarv 19T1. Analysis of Sales and Profit before Taxation Sales Leisure, including records and tape North America United Kingdom and other oyereeas Entertainment, including fi1m production and exhibition Television Electronics, radio and television equipment Profft before Taration Leisure, including records and tape North America United Kingdom and other overseas Entertainment, including film production and exhibition Television Electronics, radio and television equipment Property development Share ofprofit before taxation of British Domestic Appliances Limited Interest payable (net) The profits attributable to ordinary stockholders, after deducting taxation, minority interests and preference diviclends were Shares and Loan Stock lssued During the year,50p ordinary shares were issued as follows: (a) As consideration for the acquisition ofRecording Designs Limited (b) As part ofthe cost of acquisition of Gort Estates Limited and Gort Estates (Development) Limited In January 1971, a further 5,4,337.797 of the Convertible Unsecwed Loan Stock was issued as part of the consideration for the acquisition of Gort Estates Limited and Gort Estates (Development) Limited, thereby bringing the total ofthis loan stock issued during the year to &25,568,405. 6
Page 2 and 3: of meeting Notice is hereby given
Page 4 and 5: 2 Main industry analysis of sales a
Page 6 and 7: Ghairman's At the end of my last R
Page 10 and 11: Dividends Preference dividends amou
Page 12 and 13: Sales (Note 2) Profft before Taxa
Page 14 and 15: Parent Gompany Balance Sheet
Page 16 and 17: 3 Profit befote Taxation (continued
Page 18 and 19: I Fixed Assets (continued) ;"; ';;;
Page 20 and 21: t4 nesefvos Other capital reserve
Page 22 and 23: Records and Music The results from
Page 24 and 25: Music Publishing The Keith Prowse M
Page 26 and 27: Feature Films During the year, 15 B
Page 28 and 29: Electronics The year saw a marked i
Page 30 and 31: v EMI-Marine have doubled in the ye
Page 32 and 33: Property When in 1969 EMI acquired
Page 34 and 35: At 30 June Capital Employed Goodwil
Page 36: lftrvement in price of'EMI Ordinary
Page 39 and 40: Europe Products anal Services Chief
Page 41: Principal Associated Companies Asso

Untitled

Create successful ePaper yourself

Delete template?

Save as template?