It is with great confidence and anticipation that the Board of Easynet looks forward to another year of managed growth through the expansion of the Group's networks, services and customer base. Notes to the preliminary announcement 1. The financial information contained in this document does not constitute statutory accounts within the meaning of Section 240 of the Act. The figures for the year ended 31 December 1999 and 31 December 1998 have been extracted from the annual report and accounts on which the auditors have issued an unqualified report. A copy of the annual report and accounts will be posted to shareholders shortly.
Turnover represents the value of goods and services supplied and is stated net of value added tax.
Contracted income, where attributed to the installation and set-up of customer services, is recognised when installation is accepted by the customer. Other contracted income is recognised over the contract period in proportion to the value of service provided. As detailed in the Chairman's statement, the accounting policy for contracted income as described above has been revised to recognise contracted income attributed to the installation and set-up of customer services when installation is accepted by the customer and to recognise other contracted income over the contract period in proportion to the value of service provided. The Directors believe that the underlying trading performance of the Group is more fairly presented in the financial statements under this revised policy. The Group's former policy was to recognise invoiced subscription revenues in full at the commencement of the subscription contract and to accrue the group's costs of fulfilling its obligations under the terms of the subscription contract at the time of delivery.