|
|
|
|
 |
| back
to Financial review >> |
|
| The group’s loss before
taxation for the 2001 financial year was £1,031 million, compared with profits
of £2,942 million in the 2000 financial year and £4,295 million in the 1999
financial year. The loss in the 2001 financial year was principally due to the
£3,200 million exceptional goodwill impairment charges discussed above. The
substantially higher profit in the 1999 financial year was largely due to the
gain on the MCI shares sold. Before exceptional items and goodwill
amortisation, profit before taxation in the 2001 financial year of £2,072
million was 33% lower than the comparable profit in the 2000 financial year.
This was 5.3% lower than in the 1999 financial year. The significantly lower
underlying profit in the 2001 financial year was chiefly due to the higher
interest charges, explained above. The lower profit in the 2000 financial year
was due to the lower group operating profit and higher interest charges, also
explained above. |
|
|
|
|
|
Tax relief is not available
against the £3,200 million goodwill impairment charges, and the tax charge of
£652 million for the 2001 financial year represents 30.1% of profit before
taxation and goodwill impairment. This compares with a tax charge of 30.5% for
the 2000 financial year and 30.1% for the 1999 financial year. The 2001 and
2000 effective tax rates compare with the standard 30% corporation tax rate for
those years. The effective tax rate for the 2001 financial year has been
adversely affected by the higher goodwill amortisation charges in the year
which are not allowable expenses for tax purposes, partially offset by the gain
on the sale of the investment in sunrise communications which is effectively
subject to a lower tax charge. The group’s tax charge for the 1999 financial
year was an effective 31.0% of pre-tax profit. The MCI share sale gain was
effectively subject to a lower tax charge under UK capital gains tax
legislation. This effective tax charge reflects the higher 31% rate of corporation
tax set for the 1999 financial year.
The minority interests in
the results of the 2001 financial year of £127 million are primarily
attributable to outside interests in the Japanese investments.
|
|
|
|
Back to top
|
|
|
|
