2000

Evidence on official site
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POB(00)3rd
PO00/29 to 43
POST OFFICE BOARD
Minutes of the meeting held at 148 Old Street

on 3/4 April 2000
Dr Neville Bain Chairman
John Roberts Chief Executive
Richard Close Group Finance Director
Jerry Cope Group Managing Director Strategy and Business

Development

Mike Kinski Non-Executive Member
John Lloyd Non-Executive Member
Rosemary Thorne Non-Executive Member
Miles Templeman Non-Executive Member
Jonathan Evans Secretary
Teresa Redler Notes

Richard Dykes Group Managing Director, Mails Services
Stuart Sweetman Group Managing Director, Customer and Banking Services
Kevin Williams Group Managing Director, Distribution Services

Others attending: Vanessa Leeson, Managing Director, Packages and
Express, for PO00/35, POO0/36

Mark Thomson, Managing Director, Stamps and
Collectibles, for PO00/39

MINUTES OF PREVIOUS PO00/29

MEETING
The Board approved the minutes and separate record of
proceedings of its 14 March 2000 meeting.

MATTERS ARISING PO00/30

POB(00)26

The Board noted the matters arising from its meeting
held on the 14 March 2000.

CHAIRMAN’S BUSINESS PO00/31
There was no additional business to highlight.

CHIEF EXECUTIVE’S P000/32
REPORT POB(00)27

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FINANCIAL OVERVIEW
(i)

(ii)

(ii)

Horizon Roll-out continued with over 4,500 offices
installed with the equipment. The Post Office was
involved with ICL in a tender to provide electronic
Government services — me.gov — in which the
automated Post Office network would play a leading
role.

PO00/33
Provisional profit results for February were:

- Royal Mail £35m
- POCL £(13)m (exec Horizon)
- Parcelforce £0 (exec Special Delivery)

The full year profit/loss forecasts were:

- Royal Mail £426m
- POCL £34m (exec Horizon)
- Parcelforce £(20)m (exec Special Delivery)

The group full-year post-tax profit forecast was currently
£337m against a target of £350m. There were
opportunities of improving this forecast by up to £55m,
with risks of £20m.

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(iv)
(v)
(vi)
Action ;
Richard (i)
Close
POST OFFICE

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A risk to the profit forecast had emerged in the
revaluation of certain assets using valuation indices
which may be inappropriate.

The accounting treatment of the recovery of VAT on
Horizon had not yet been fully agreed. A letter from the
DTI confirming their understanding would be presented
to the auditors to help resolve the issue.

The Board agreed that in the light of continuing
uncertainties in the forecast year-end profit position, a

revised forecast would not be released to DT! until after
the Board meeting on 3 May.

Review the use of appropriate indices for the re-
valuation of assets.

PO00/34

STRATEGIC PLAN 2000-

05 POB(00)28

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poveeeenennennennnnennnnnnnned In Strictest Comfidense ooo noo eennnnn nnn neem .

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REPORT AND Po00/40

ACCOUNTS APPROVAL
PROCESS POB(00)35x
(i) The Board endorsed the process for approval of the
1999-2000 Report and Accounts.
AUDIT COMMITTEE PO00/41
REPORT POB(00)36x
(i) The Board noted the report.

ANY OTHER BUSINESS PO00/42

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DATE OF NEXT MEETING PO00/43

The next meeting was scheduled for 3 May 2000.

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