Untitled - David Kronemyer

e seen, all key measures of performance
improved significantly last year.
We are proud of the gains we have achieved
but by no means satisfied; we are aware of the
scale of our task. Last October's turrnoil in world
Enancial markets affected con$dence in many
intemationally operating businesses. Ve know that
currency fluchrations will continue to impact on
future earnings and the cost o{ future acquisitions.
There is no shelter however in depending heavily
on a single geographic rnarket or economy'
THORN EMI's operational style and structure
are now fiily geared to intemational opportunities.
Our pordolio of companies today provides us with
a remarkable set of businesses. Their diversity
greatly reduces our exposure to any significant
downtum. We intend not only to increase our
worldwide earnings but to improve the balance in
our earnings mix, which will cushion still further
the adverse impact o{ economic uncertainty. We
will do this by continuing controlled expansion of
our activities in world markets, by both acquisition
and organic growth
Reassuringly, the year's upheavals demonstrated
the resilience of our main international operations,
notably Music, Lighting, and International Rentals.
The profits of Rent-A-Center in the US, for
example, stayed on target.
Enthusiasm and optimism are growing at
THORN EMI. We have profoundly changed the
Group's culture. Ve have reinvested in our core
businesses, strengthened their competitiveness
and improved their world market positions. And
we have streamlined our organisation and
strengthened line management. People throughout
THORN EMI are operating with less bureaucracy
and more openness.
The results are encouraging for everyone
concemed with THORN EMI - for customers,
employees and above all shareholders. They
reaffrrm our confidence in the growth strategy we
are pursuing. Today, at THORN EMI, our plans are
amlitious - and realistic. We have our sights set
firmly on an even more prosperous future.
Bob Nellist (pictured right)