When I was appointed non-executive Chairman of BBC Worldwide, it was clear I was joining an organisation engaged in major change. The Charter Review and the BBC's Commercial Review processes had revealed significant challenges, chief among them the need to improve profitability and transparency. Over the last year, BBC Worldwide has worked hard to clarify its aims, become more commercially efficient and return real value to the BBC.

2005/06 has been an outstanding year with the company achieving its aim of doubling profits in two years. No mean feat! Major in-roads have been made to expand the BBC's branded presence globally by developing emerging markets. Recent successes include winning seven FM radio licences in India which will also serve as a launch pad for further growth in this very exciting market. Landmark deals have also been signed that will give back real value and opportunity to the BBC, including a mobile content deal with Orange which will facilitate a substantial wireless content licensing business.

Digital technology is changing media markets and it's clear BBC Worldwide is embracing this 'brave new world'. Significant but measured investment is underway to optimise programme and image archives across multi-formats in many territories - the Motion Gallery clip sales business, for example, launched a searchable website in 2004 that this year received over 900,000 visitors. Looking ahead, the bbc.com and iPlayer projects offer major digital opportunities for the future.

Growth should not come at a price: BBC Worldwide recognises the need to be both efficient - by doing things right - and effective - by doing the right things. I firmly believe the company needs to focus on its key areas and stick to the remit set out in the BBC's Commercial Review. I believe that if they do more of what they excel in and less in areas where others are better placed, that they will continue to achieve great things. I also know that John Smith and his senior management team know this and embrace this with alacrity.

BBC Worldwide has an opportunity to build the reputation of the BBC around the world and remain true to its Charter. Strengthening corporate governance will enhance reporting to the BBC and the external world. It will also increase the effectiveness of business planning processes. Most importantly, BBC Worldwide should remain confident in its ability to serve all audiences and customers with first-class products and services, never forgetting that audiences are at the heart of the business.

Finally, I'm consistently impressed by the talent and energy I see at BBC Worldwide, both in Board leadership and throughout the business. As management and staff now focus on achieving profits of over £100m, they should be proud of their achievement this year. And a special vote of thanks to John Smith who is an outstanding chief executive and leader of this business.