Financial statistics

IFRS 2008   2007   2006   2005  
Financial ratios                
Basic earnings per share before specific items – pence 23.9   22.7   19.5   18.1  
Basic earnings per share – pence 21.5   34.4   18.4   21.5  
Return on capital employed before specific itemsa – % (unaudited) 17.7   17.6   18.1   18.2  
Interest cover before net pension finance incomeb – times (unaudited)
3.6   4.2   3.6   3.4  








 

  2008   2007   2006   2005  
  £m   £m   £m   £m  
Expenditure on research and development                
Research and development expense 532   378   326   257  
Amortisation of internally developed computer software 325   314   161   95  








 
Total 857   692   487   352  








 
    2008   2007   2006   2005  
    £m   £m   £m   £m  
Expenditure on property, plant and equipment and software                
Plant and equipment                
  Transmission equipment 1,117   1,209   1,429   1,488  
  Exchange equipment 83   118   80   143  
  Other network equipment 1,060   854   727   648  
  Computers and office equipment 181   149   138   187  
  Motor vehicles and other 876   877   715   474  
  Land and buildings 33   61   68   64  









 
    3,350   3,268   3,157   3,004  
(Decrease) increase in engineering stores (11 ) (21 ) (15 ) 7  









 
Total expenditure on property, plant and equipment 3,339   3,247   3,142   3,011  
(Increase) decrease in payables (24 ) 51   (202 ) 45  









 
Cash outflow on purchase of property, plant and equipment and software 3,315   3,298   2,940   3,056  









 
a

The ratio is based on profit before taxation and net finance expense to average capital employed. Capital employed is represented by total assets less current liabilities (excluding corporation tax, current borrowings, derivative financial liabilities and finance lease creditors) less deferred tax assets, cash and cash equivalents, derivative financial assets and investments.   
b

The number of times net finance expense before net pension finance income is covered by total operating profit. Interest cover including net pension finance income is 7.6 times (2007: 11.6 times, 2006: 5.6 times).   


UK GAAP
2005   2004  
Financial ratios        
Basic earnings per share before goodwill amortisation and exceptional items – pence 18.1   16.9  
Basic earning per share – pence 21.4   16.4  
Return on capital employeda – % (unaudited) 15.5 c 15.1 c
Interest coverb – times (unaudited) 3.5 d 3.0 d




 

  2005   2004  
  £m   £m  
Expenditure on research and development 257   334  




 

    2005   2004  
    £m   £m  
Expenditure on property, plant and equipment and software        
Plant and equipment        
  Transmission equipment 1,488   1,324  
  Exchange equipment 143   150  
  Other network equipment 648   585  
  Computers and office equipment 187   205  
  Motor vehicles and other 474   316  
Land and buildings 64   73  





 
    3,004   2,653  
Increase in engineering stores 7   20  




 
Total expenditure on property, plant and equipment 3,011   2,673  
Decrease in payables 45   11  





 
Cash outflow on purchase of property, plant and equipment and software 3,056   2,684  





 
a The ratio is based on profit before tax, goodwill amortisation and interest on long-term borrowings, to average capital employed.
b The number of times net interest payable is covered by total operating profit before goodwill amortisation.
c Return on capital employed before goodwill amortisation and exceptional items was 16.0% (2004: 15.3%)
d Interest cover before goodwill amortisation and exceptional items was 3.6 times (2004: 3.3 times)