thus annual report 2005
beyond communications contents
01 key highlights
02 beyond communications
06 chairman’ s statement 
07 chief executive’ s review
08 operating and financial review
14 board of directors
16 directors’ report 
18 corporate governance report
21 directors’ remuneration report
27 independent auditors’ report to 
the members of thus group plc
28 accounting policies and definitions
30 group profit and loss account
31 consolidated statement of t otal recognised 
gains and losses
31 reconciliation of movements in shareholders’ funds
32 balance sheets
33 group cash flow statement
33 reconciliation of net cash flow 
to movement in net debt
34 notes to the accounts
45 five y ear financial summary
46 notice of annual general meeting
48 general information for shareholders attending 
the annual general meeting
49 shareholder and contact information
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summary results


Summary:
 6
chairman’ s statement
philip rogerson chairman
i joined thus because of the many
opportunities qualities and strengths 
i saw in your company the past five
years including the disappointment of
the downgrade to profit expectations in
the first half of the financial year ended
31 march 2005 have not been easy and
have taken their toll on the thus share
price y et over the past five years thus
has successfully grown its business every
year  retained its focus on its business plan
and this year  generated its first full
financial year of positive cash flow
1
 
over that same period trading conditions
in the telecommunication market have
been very difficult with too many
companies chasing the available business
at low prices a number of companies
have suffered financial distress but
nevertheless have maintained their
presence in the market unlike in many
other industries where such conditions
of over supply would lead to industry
consolidation
the business philosophy i observed in
thus was simply to retain focus on
profitably selling and managing services
on behalf of its customers thus has 
a good track record and is winning larger
and more complex contracts every year 
the uk national network was the first
“next generation network” to offer fully
integrated services based on internet
protocol technology throughout the uk
this investment is paying off as the market
transitions from traditional discrete
services to the new world where all
services are carried over a single
operating platform and this is where
thus is increasing its market share and
increasingly differentiating its capability
it is my duty as chairman to ensure 
that your company retains its strong
competitive position we expect our
industry to rationalise its market structure
and improve its overall financial viability
through consolidation in the uk
and internationally the market will
increasingly differentiate and reward
companies with the skills to innovate
successfully and evolve services for their
customers i believe your company’ s track
record on innovation quality and its
ability to leverage its assets to manage
complex service requirements will be
recognised as the key ingredients for
future success
on behalf of the board i would like to
take this opportunity to extend my thanks
to roy brown your former chairman 
who retired this year  for his contribution
in leading thus since its demerger
from scottishpower in 2002 i would
also like to thank all our staff who
despite the continued difficult trading
environment have demonstrated
unstinting commitment and dedication
to the company and remained focused
on serving our customers 
i am confident that i made the right
decision to become your chairman i do
not expect the market to be significantly
easier in the year ahead our market will
remain tough and demanding but i do
believe thus has the integrity strengths
and capability to succeed
philip rogerson 
chairman
this is my first year as
chairman of your company 
it has been a demanding year
full of challenge and change 
in uk telecommunications
and yet it has been a year
which has presented new
opportunities for thus
“i believe your company’ s track
record on innovation quality
and its ability to leverage its
assets to manage complex
service requirements will
be recognised as the key
ingredients for future success”