Selected financial data

The US Securities and Exchange Commission’s new rule on the US GAAP reconciliation eliminates the requirement to present US GAAP selected financial data for companies that prepare financial statements in accordance with IFRS as issued by the IASB. This rule became effective for filings made on or after 4 March 2008. The group’s consolidated financial statements for 2008, 2007, 2006 and 2005 were prepared in accordance with IFRS, as adopted by the EU and issued by the IASB. However, the group’s consolidated financial statements for 2004 were prepared in accordance with UK GAAP. US GAAP selected financial data is presented for 2005 and 2004.

Summary of group income statement – IFRS       
  2008   2007   2006   2005  
Year ended 31 March £m   £m   £m   £m  
Revenue 20,704   20,223   19,514   18,429  
Other operating income 349   233   227   551  
Operating costs  (18,697 ) (17,915 ) (17,246 ) (15,988 )








 
Operating profit              
   Before specific itemsa 2,895   2,713   2,633   2,693  
   Specific itemsa (539 ) (172 ) (138 ) 299  
  2,356   2,541   2,495   2,992  
Net finance expense              
   Net finance expense before specific items  (378 ) (233 ) (472 ) (599 )
   Specific items   139      
  (378 ) (94 ) (472 ) (599 )
Share of post tax profits (losses) of associates and joint ventures
(11 ) 15   16   (39 )
Profit on disposal of associates and joint ventures 9   22   1    
Profit before tax              
   Before specific itemsa 2,506   2,495   2,177   2,080  
   Specific itemsa (530 ) (11 ) (137 ) 274  
  1,976   2,484   2,040   2,354  
Taxation              
   Before specific itemsa (581 ) (611 ) (533 ) (541 )
   Specific itemsa 343   979   41   16  
  (238 ) 368   (492 ) (525 )








 
Profit for the year              
   Before specific itemsa 1,925   1,884   1,644   1,539  
   Specific itemsa (187 ) 968   (96 ) 290  
  1,738   2,852   1,548   1,829  








 
Year ended 31 March 2008   2007   2006   2005  
Average number of shares used in basic earnings per share (millions)
  8,066   8,293   8,422   8,524  
Average number of shares used in diluted earnings per share (millions)
  8,223   8,479   8,537   8,581  
Basic earnings per share  21.7 p 34.4 p 18.4 p 21.5 p
Diluted earnings per share  21.1 p 33.6 p 18.1 p 21.3 p
Dividends per sharec 15.8 p 15.1 p 11.9 p 10.4 p
Dividends per share, centsb,c 31.4 c 29.7 c 20.7 c 19.5 c








 
Basic earnings per share before specific itemsa 23.9 p 22.7 p 19.5 p 18.1 p
Diluted earnings per share before specific itemsa 23.4 p 22.2 p 19.2 p 17.9 p








 
a

A definition of specific items is provided in the accounting policies section. The directors believe these measures provide a more meaningful analysis of the trading results of the group and are consistent with the way the financial performance is measured by management.
b Based on actual dividends paid and/or year end exchange rate on proposed dividends.
c

Dividends per share represents the dividend proposed in respect of the relevant financial year. Under IFRS, dividends are recognised as a deduction from shareholders’ equity when they are paid.

Summary of group income statement – UK GAAP

  2005   2004  
Year ended 31 March £m   £m  
Total turnover  19,031   18,914  
Group’s share of associates’ and joint ventures’ turnover  (408 ) (395 )




 
Group turnover 18,623   18,519  
Other operating income 171   177  
Operating costsa,b (16,005 ) (15,826 )




 
Group operating profit        
   Before goodwill amortisation and exceptional items  2,864   2,889  
   Goodwill amortisation and exceptional items  (75 ) (19 )
  2,789   2,870  
Group’s share of operating loss of associates and joint venturesc (25 ) (34 )




 
Total operating profit 2,764   2,836  
Profit on sale of fixed asset investments and group undertakings 358   36  
Profit on sale of property fixed assets 22   14  
Net interest payabled (801 ) (941 )




 
Profit on ordinary activities before taxation        
   Before goodwill amortisation and exceptional items 2,085   2,013  
   Goodwill amortisation and exceptional items 258   (68 )
  2,343   1,945  
Tax on profit on ordinary activitiese (523 ) (539 )




 
Profit on ordinary activities after taxation 1,820   1,406  
Minority interests 1   8  




 
Profit for the year 1,821   1,414  




 
Average number of shares used in basic earnings per share (millions)  8,524   8,621  
Basic earnings per share  21.4 p 16.4 p
Diluted earnings per share  21.2 p 16.3 p
Dividends per share  10.4 p 8.5 p
Dividends per share, centsf 19.5 c 15.3 c




 
Basic earnings per share before goodwill amortisation and exceptional items 18.1 p 16.9 p
Diluted earnings per share before goodwill amortisation and exceptional items  18.0 p 16.8 p




 
a Includes net exceptional costs 59   7  
b Includes leaver costs 166   202  
c Includes exceptional costs 25   26  
d Includes exceptional costs   55  
e Includes exceptional tax credit (16 ) (29 )
f Based on actual dividends paid and/or year end exchange rate on proposed dividends.    

US GAAP

  2005   2004  
Year ended 31 March £m   £m  
Group operating profit 2,779   2,420  
Income before taxes 1,576   1,188  
Net income 1,297   883  




 
Basic earnings per ordinary share 15.2 p 10.2 p
Diluted earnings per ordinary share  15.1 p 10.2 p
Average number of ADSs used in basic earnings per ADS (millions) 852   862  
Basic earnings per ADS £1.52   £1.02  
Diluted earnings per ADS £1.51   £1.02  




 
Total assets 29,006   28,674  
Total shareholders’ deficita (264 ) (1,135 )




 
a


Opening retained earnings and shareholders’ equity have been restated to correct a deferred tax valuation allowance of £320 million related to the group’s property sale and lease back transaction in 2001. The adjustment has the effect of increasing US GAAP deferred tax assets and retained earnings by £320 million. The adjustment did not have a material impact on US GAAP net income or earnings per share.

Summary of group cash flow statement – IFRS 

  2008   2007   2006   2005  
Year ended 31 March £m   £m   £m   £m  
Net cash inflow from operating activities 5,486   5,210   5,387   5,574  
Net cash (outflow) inflow from investing activities (3,664 ) (3,035 ) 365   (1,740 )
Net cash used in financing activities  (1,430 ) (2,898 ) (5,278 ) (3,529 )
Effect of exchange rate changes on cash and cash equivalents 25   (37 )    








 
Net increase (decrease) in cash and cash equivalents 417   (760 ) 474   305  
Cash and cash equivalents at the start of the year 757   1,784   1,310   1,005  








 
Cash and cash equivalents at the end of the year 1,174   1,024   1,784   1,310  








 

Summary of group cash flow statement – UK GAAP 

     
  2005   2004  
Year ended 31 March £m   £m  
Net cash flow from operating activities  5,898   5,389  
Dividends from associates and joint ventures  2   3  
Returns on investments and servicing of finance  (878 ) (527 )
Taxation paid  (332 ) (317 )
Capital expenditure and financial investment  (2,408 ) (2,477 )
Acquisitions and disposals  (418 ) (60 )
Equity dividends paid  (784 ) (645 )




 
Cash inflow before management of liquid resources and financing 1,080   1,366  
Management of liquid resources  587   1,123  
Financing  (1,485 ) (2,445 )




 
Increase in cash in the year 182   44  




 
Decrease in net debt in the year resulting from cash flows 887   1,222  




 

Summary of group balance sheet – IFRS 

         
  2008   2007   2006   2005  
At 31 March £m   £m   £m   £m  
Intangible assets 3,355   2,584   1,908   1,379  
Property, plant and equipment 15,307   14,997   15,222   15,266  
Retirement benefit asset 2,887        
Other non current assets 1,280   759   1,153   1,567  








 
  22,829   18,340   18,283   18,212  
Current assets less current liabilities (3,181 ) (3,757 ) (3,063 ) (2,783 )








 
Total assets less current liabilities  19,648   14,583   15,220   15,429  
Non current loans and other borrowings  (9,818 ) (6,387 ) (7,995 ) (7,744 )
Retirement benefit obligations    (389 ) (2,547 ) (4,807 )
Other non current liabilities  (4,398 ) (3,535 ) (3,071 ) (2,783 )








 
Total assets less liabilities 5,432   4,272   1,607   95  








 
                 
Called up share capital 420   432   432   432  
Share premium account 62   31   7   3  
Capital redemption reserve 15   2   2   2  
Other reserves (527 ) 88   364   762  
Retained earnings (deficit) 5,439   3,685   750   (1,154 )








 
Total parent shareholders’ equity 5,409   4,238   1,555   45  
Minority interests 23   34   52   50  








 
Total equity 5,432   4,272   1,607   95  








 

Summary of group balance sheet – UK GAAP

  2005   2004  
At 31 March £m   £m  
Intangible fixed assets 623   204  
Tangible fixed assets 15,916   15,487  
Fixed asset investments 115   324  
Net current (liabilities) assets (2,165 ) 2,027  




 
Total assets less current liabilities 14,489   18,042  
Loans and other borrowings falling due after one year  (8,091 ) (12,426 )
Provisions for liabilities and charges  (2,497 ) (2,504 )
Minority interests  (50 ) (46 )




 
Total assets less liabilities 3,851   3,066  




 
Called up share capital 432   432  
Share premium account 3   2  
Capital redemption reserve 2   2  
Other reserves 998   998  
Profit and loss account 2,416   1,632  




 
Total equity shareholders’ funds 3,851   3,066  




 
Total assets 26,950   26,565