BBC with Siemens Business Services

Caudwell Communications

Northrop Grumman

£1.3 billion of contract signings to the year end 2005 – with over £930 million of new wins

consistent 9% per annum revenue growth from non-ISP business

average annual value of corporate contracts rising from £1.6 million to £2.5 million over the last two years

value of top 30 contracts increasing by over 20% to nearly £200 million per year

40% of new contracts over 5 years in duration

nearly two thirds of capital expenditure over the last 12 months was channelled towards delivering individual solutions for new customers

Results for year ended 31 March.

The 3% revenue decline reflects the impact of the decreasing narrowband internet business and masks a consistent 9% year on year growth in core activities.

EBITDA before exceptional items was strong at £116 million despite the impact of the decline in the narrowband internet business. 2004 EBITDA included £9.5 million of retrospective benefit resulting from the Regulator's decision to reduce BT's Intelligent Network charges.

Capital expenditure in 2005 was £94 million compared to £67 million in 2004, an increase of 40%. This investment has delivered tailored solutions for customers, improvements in delivery processes and customer-facing systems as well as ongoing upgrades to the core network.

Free cash flow for the year to March 2005 was £23 million compared to £66 million for the year to March 2004 and mainly reflects increased capital expenditure.

The year end cash balance of £154 million represents a net cash generative position since Energis’ renewal in 2002 and provides significant headroom for investment over the following year.