| |
|
|
2007 |
|
|
2006 |
|
|
2005 |
|
| |
|
|
£m |
|
|
£m |
|
|
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
operating income
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss on sale of group undertakingsa
|
|
|
(5 |
) |
|
– |
|
|
– |
|
|
Profit
on sale of non current asset investmentsb
|
|
|
2 |
|
|
– |
|
|
358 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
(3 |
) |
|
– |
|
|
358 |
|
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
Property
rationalisation costsc
|
|
|
(64 |
) |
|
(68 |
) |
|
(59 |
) |
|
Creation
of Openreachd
|
|
|
(30 |
) |
|
(70 |
) |
|
– |
|
|
Write
off of circuit inventory and other working capital
balancese
|
|
|
(65 |
) |
|
– |
|
|
– |
|
|
Costs
associated with settlement of open tax yearsf
|
|
|
(10 |
) |
|
– |
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
(169 |
) |
|
(138 |
) |
|
(59 |
) |
|
Finance
income
|
|
|
|
|
|
|
|
|
|
|
|
Interest
on settlement of open tax yearsf
|
|
|
139 |
|
|
– |
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
of results of associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
of assets in joint venturesg
|
|
|
– |
|
|
– |
|
|
(25 |
) |
|
Profit
on disposal of associates and joint venturesh
|
|
|
22 |
|
|
1 |
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
specific items (charge) credit before tax
|
|
|
(11 |
) |
|
(137 |
) |
|
274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
credit in respect of settlement of open tax yearsf
|
|
|
938 |
|
|
– |
|
|
– |
|
|
Tax
credit on specific items
|
|
|
41 |
|
|
41 |
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
specific items credit (charge) after tax
|
|
|
968 |
|
|
(96 |
) |
|
290 |
|
|
|
|
|
|
|
|
|
|
|
|
| a |
In
the current year the group disposed of some non-core
businesses. The loss on disposal relates primarily
to the disposal of the group’s satellite
broadcast service assets (£7 million).
|
| b |
In the
current year the group disposed of some non-core
investments, resulting in a profit of £2 million.
In the 2005 financial year the group recognised
a profit on disposal of £358 million comprising
£236 million from the sale of the group’s
15.8% interest in Eutelsat SA, £46 million
from sale of the 4% interest in Intelsat, £38
million from the sale of the 11.9% interest in Starhub
Pte Ltd and other gains of £38 million. |
| c |
In the
current year £64 million (2006: £68
million, 2005: £59 million) of property rationalisation
charges were recognised in relation to the group’s
provincial office portfolio. |
| d |
In the
current year a provision of £30 million (2006:
£70 million, 2005: £nil) was recognised
for the estimated incremental and directly attributable
costs arising from the group’s obligation to
set up Openreach and meet the requirements of the
Undertakings. |
| e |
In the
current year the group recorded a charge of £65
million as a result of a review of circuit inventory
and other working capital balances arising before
31 March 2006. |
| f |
In the
current year, the group agreed settlement of substantially
all open UK tax matters relating to the ten tax
years up to and including 2004/05 with HM Revenue
and Customs. Specific items therefore include a
net credit of £1,067 million, which represents
those elements of the tax charges previously recognised
that were in excess of the final agreed liability
of £938 million; interest income of £139
million on the repayment; and operating costs of
£10 million, representing the costs associated
with reaching the agreement. |
| g |
In the
2005 financial year the group incurred an impairment
charge of £25 million representing its share
of a write down of Albacom’s assets prior to
Albacom becoming a subsidiary. |
| h |
In the
current year the group disposed of 6% of its equity
interest in Tech Mahindra Limited, an associated
undertaking. The resulting profit on disposal was
£22 million. The group’s shareholding
at 31 March 2007 was 35%. |
