Financial statistics

Financial ratios YEAR ENDED 31 MARCH

1992 1993 1994 1995 1996

Earnings per share - pence 33.2 19.8 28.5 27.8 31.6
Growth in net dividends per share % 8.3 8.3 7.1 6.0 5.6
Return on capital employed % (a) 19.3 13.6 17.1 15.6 18.3
Gearing - net debt to equity % (b) 21.1 14.3 9.3 17.8 7.4
Interest cover (c) 11.1 9.4 13.0 10.3 18.2
Dividend cover (d) 2.3 1.3 1.7 1.6 1.7


(a) The ratio is based on profit before tax and interest on long-term borrowings, adjusted to reflect the utilisation of any restructuring provision, to average capital employed. Capital employed is represented by total assets less current liabilities, excluding corporate taxes and dividends payable, and provisions other than those for deferred taxation and restructuring. Year-end figures are used in the computation of the average, except in the case of short-term investments and borrowings where average daily balances are used in their place.

(b) The ratio is based on borrowings net of cash and short-term investments to capital and reserves and minority interests.

(c) The number of times net interest payable is covered by operating profit. In 1993 and 1995, net interest excludes the premiums paid on the repurchase of bonds.

(d) The number of times dividends are covered by earnings.


Expenditure on research and development
YEAR ENDED 31 MARCH
1992
m
1993
m
1994
m
1995
m
1996
m

Total expenditure 240 233 265 271 282



Expenditure on tangible fixed assets
YEAR ENDED 31 MARCH
Plant and equipment
Transmission 1,173 835 896 1,060 1,114
Telephone exchanges 722 545 493 605 566
Other network equipment 281 296 335 378 491
Computers and office equipment 170 152 219 343 333
Motor vehicles and other 131 272 153 214 195

Land and buildings 54 66 51 75 87

Increase (decrease) in engineering stores (85) (11) 24 (4) (15)


Total expenditure on tangible fixed assets 2,446 2,155 2,171 2,671 2,771
Decrease (increase) in creditors 119 (7) (10) (33) (224)


Cash outflow on purchase of tangible fixed assets 2,565 2,148 2,161 2,638 2,547


Contents Next page