is one of the worlds leading providers of communications
solutions and services operating in 170 countries. Our principal
activities include networked IT services, local, national and
international telecommunications services, and higher-value broadband
and internet products and services. In the UK, we serve around
20 million business and residential customers, as well as providing
network services to other operators.
Group plc is a public limited company registered in England and
Wales and listed on the London and New York stock exchanges. It
was incorporated in England and Wales on 30 March 2001 as Newgate
Telecommunications Limited with the registered number 4190816.
Its registered office address is 81 Newgate Street, London EC1A
7AJ. The company changed its name to BT Group plc on 11 September
2001. Following the demerger of O2 in November 2001, the continuing
activities of BT were transferred to BT Group plc.
British Telecommunications plc is
a wholly-owned subsidiary of BT Group plc and encompasses virtually
all the businesses and assets of the BT group. The successor to
the statutory corporation British Telecommunications, it was incorporated
in England and Wales as a public limited company, wholly owned
by the UK Government, as a result of the Telecommunications Act
1984. Between November 1984 and July 1993, the UK Government sold
all of its shareholding in British Telecommunications plc in three
This is the annual report for the year ended 31 March 2006. It
complies with UK regulations and is the annual report on Form
20-F for the US Securities and Exchange Commission to meet US
This annual report has been sent
to shareholders who have elected to receive a copy. A separate
annual review and notice of meeting (including summary financial
statements) for the year ended 31 March 2006 has been issued to
In this annual report, references to BT Group, BT,
the group, the company, we
or our are to BT Group plc (which includes the continuing
activities of British Telecommunications plc) and its subsidiaries
and lines of business, or any of them as the context may require.
References to the financial
year are to the year ended 31 March of each year, eg the
2006 financial year refers to the year ended 31 March
2006. Unless otherwise stated, all non-financial statistics are
at 31 March 2006.
Please see cautionary
statement regarding forward-looking statements.
number of measures quoted in this Annual Report are non-GAAP
measures. The directors believe these measures provide a
more meaningful analysis of the trading results of the group
and are consistent with the way financial performance is
measured by management. These include EBITDA and profit
before specific items, earnings per share before specific
items, net debt and free cash flow. The rationale for using
non-GAAP measures and reconciliations to the most directly
comparable IFRS indicator are provided on: Introduction
to the financial review; Accounting
debt; and Acquisitions.