Cable & Wireless Communications (CWC) has made good progress since our demerger in March 2010. We have reported improved revenues (up 4% to US$2.4 billion), EBITDA (up 1% to US$872 million) and profit before tax (up 21% to US$462 million). We saw strong trading performances in three of our business units, Panama, Macau and Monaco & Islands. Our Caribbean business made solid operational progress, but its results continue to be challenged by weak or declining economies across the region.

Each of the businesses continues to generate a high cash conversion of profits. The Board has recommended a full year dividend of US8 cents per share, US2.67 cents of which was paid in January, with a further US5.33 cents to be paid in August 2011, subject to the approval of shareholders. We are also in the process of returning further capital to shareholders through a US$100 million share buyback programme. The buyback is an effective and risk-free use of our cash, saving a dividend payment on the shares we purchase.

The demerger has brought increased focus to our business, particularly at Board level. Prior to separation, Board discussion was dominated by the turnaround of Cable & Wireless Worldwide and the demerger. The focus is now on ensuring that CWC captures the emerging growth opportunities for full service telecoms businesses, particularly mobile data, enterprise and carrier services. Our businesses are well placed to do so.

Usage of mobile data and fixed and mobile broadband is growing, particularly in Panama and Macau. Demand for our data centre and hosting services is also growing and we are expanding our subsea cable infrastructure to meet demand in the carrier market. We are also building our capability to supply managed services to both governments and large corporate customers.

We also made progress on our reshaping of the Group, disposing of our Bermuda operations and purchasing a majority shareholding in the Bahamas Telecommunications Company in April. Reshaping the portfolio will require patience as in most territories we are a provider of key national infrastructure. Whilst the shape changes, our mission and purpose remain clear. We operate in local markets, assisting them to grow by delivering world class communications services and expertise adapted for each specific environment.

Our Board of Directors has seen change with Kasper Rorsted retiring and Ian Tyler joining in the year. Kate Nealon will also retire at the end of our AGM in July. George Battersby, our HR Director, stepped down from the Board in July 2010, and sadly passed away shortly afterwards. The Board of Directors felt a deep sense of loss of such a fine colleague.

The CWC Board has continued our rigorous approach to corporate governance. Our approach to governance is focused on driving good behaviours within the business. Our model rightly places the Board of Directors as the stewards of the business, working on behalf of shareholders.

Overall, we have made a positive start as an independent Group and will continue building the foundations for future success. Shareholders should feel confident that our business is well positioned to exploit the exciting new opportunities which are emerging.