CHARITABLE CONTRIBUTIONSCHARITABLE CONTRIBUTIONS The Reuter Foundation, the group's charitable trust, developed and launched a specialised Internet service, AlertNet, designed to help the work of international disaster relief agencies. This was the Foundation's key new activity in 1997, alongside a growing range of educational programmes and support for humanitarian causes. AlertNet (Internet address: alertnet.org) was launched in September 1997, amid favourable media comment, and has been welcomed by some of the leading aid agencies, including the Red Cross movement. By the year end it had 32 full members, mainly based in Europe and the United States. Membership applications from Africa, Asia and Latin America were in hand and the specialist content of the service was being developed under experienced Reuters editors. Reuters charitable spending through the Foundation increased to £3.0 million in 1997 from £2.7 million in 1996. In addition, Reuters subsidiaries made direct contributions amounting to £1.0 million in cash and £4.4 million in kind last year, including donations of staff time, services and equipment. This total of £8.4 million in overall charitable donations amounted to 1.3% of the group's pre-tax profit in 1997. The Reuter Foundation extended its regular educational programmes around the world, concentrating particularly on building close links with key universities and professional schools, in cooperation with Reuters line management. The main areas addressed are those in which Reuters has experience and interests, including business studies, information technology, journalism and telecommunications. The other principal activity of the Foundation, also growing in value and geographical scope, comprised charitable grants in response to the concerns of Reuters employees around the world. Through area committees, colleagues suggest the causes they want to help, mainly health and community projects, with some emphasis on environmental issues. Increasingly, the Foundation makes grants in support of Reuters employees' own voluntary work or fund-raising. In 1997, Reuters raised an additional £0.3 million in public donations from organised charity events in different parts of the world. More information on the work of the Reuter Foundation is contained in a separate annual review, available on request from the Director, No political contributions are made. CREDITOR PAYMENT TERMS It is Reuters normal procedure to agree terms of transactions, including payment terms, with suppliers in advance. Payment terms vary, reflecting local practice throughout the world. It is Reuters policy that payment is made on time, provided suppliers perform in accordance with the agreed terms. Group trade creditors at 31 December 1997 were equivalent to 35 days purchases during the year. INVESTOR RELATIONS The directors regularly meet with institutional shareholders and analysts. The company's annual general meeting is used as an opportunity to communicate with private investors. Investor Relations departments in London, New York and Geneva are dedicated to improving communications between the company and its shareholders. DIRECTORS On 19 February 1997 Sir John Craven was appointed a director. On 15 October 1997 Pehr Gyllenhammar resigned as a director and was replaced by Dick Olver who joined the Board on 1 December 1997. All other directors served throughout the year. The group maintained insurance for directors and certain employees against liabilities in relation to the group throughout the year. By order of the Board  Simon Yencken Company Secretary |
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