|
Capital expenditure on
plant, equipment and property (excluding the movement on capital
accruals) totalled £3,011 million in the 2005 financial year,
compared with £2,673 million and £2,445 million in the
2004 and 2003 financial years, respectively. Capital expenditure
is expected to be just over £3 billion in the 2006 financial
year as the group invests in its 21st century network (21CN) programme
and takes account of the additional expenditure associated with
the acquired businesses. The acquired businesses incurred capital
expenditure of £12 million from their date of acquisition
in the 2005 financial year.
Of
the capital expenditure, £114 million was in Europe, outside
the UK, in the 2005 financial year compared to £86 million
in the 2004 financial year.
Contracts
placed for ongoing capital expenditure totalled £735 million
at 31 March 2005. 21CN is being developed using stringent capital
return criteria and a rigorous approach to any investment in the
narrowband network. 21CN aims to deliver long term, structural cost
reduction, as we progressively migrate onto a simpler, lower cost
network architecture. BT expects that future capital expenditure
will be funded from net cash inflows from operating activities,
and, if required, by external financing. |
