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The specific items for the 2006 and 2005 financial years are shown in the table below.
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2006 |
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2005 |
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£m |
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£m |
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Operating costs: |
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Property rationalisation costs |
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68 |
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59 |
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Creation of Openreach |
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70 |
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– |
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|
|
| |
|
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138 |
|
|
59 |
|
Other operating income: |
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|
|
|
|
|
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Profit on sale of non current asset
investments |
|
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– |
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(358 |
) |
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Associates and joint ventures: |
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|
|
|
|
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Profit on sale of joint venture |
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(1 |
) |
|
– |
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Impairment of assets in joint ventures |
|
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– |
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25 |
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Total specific items |
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137 |
|
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(274 |
) |
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In the 2006 financial year, specific operating costs included £68 million of property rationalisation charges in relation to the group’s provincial office portfolio (2005: £59 million). This rationalisation programme is expected to continue through next year giving rise to further rationalisation costs. In addition a
provision of £70 million was recognised relating to the incremental and directly attributable costs to create the new line of business,
Openreach, arising from the Undertakings agreed with Ofcom.
In the 2005 financial year, the profit from disposal of non current asset investments, included within other operating income, totalled £358 million. This mainly comprised the sale of BT’s 4% interest in Intelsat for net proceeds of £64 million which resulted in a profit on disposal of £46 million, the sale
of BT’s 15.8% interest in Eutelsat SA for net proceeds of £356 million resulting in a profit on disposal of £236 million and the sale of BT’s 11.9% shareholding in StarHub Pte Ltd for net proceeds of £77 million which resulted in a profit on disposal of £38 million.
In the 2005 financial year BT incurred an impairment charge of £25 million, being BT’s share of a write down of Albacom’s assets prior to Albacom becoming a subsidiary.
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