Summary group income
statement
for the year ended 31 March
|
Before specific items |
|
Specific
items |
a |
Total |
|
Total |
|
| |
2007 |
|
2007 |
|
2007 |
|
2006 |
|
| |
£m |
|
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
|
|
| Revenue |
20,223 |
|
– |
|
20,223 |
|
19,514 |
|
|
|
|
|
|
|
|
|
|
| Operating
profit |
2,713 |
|
(172 |
) |
2,541 |
|
2,495 |
|
| Net
finance expense |
(233 |
) |
139 |
|
(94 |
) |
(472 |
) |
Share
of post tax profit of associates and joint
ventures |
15 |
|
– |
|
15 |
|
16 |
|
| Profit
on disposal of associate and joint ventures |
– |
|
22 |
|
22 |
|
1 |
|
|
|
|
|
|
|
|
|
|
| Profit
before taxation |
2,495 |
|
(11 |
) |
2,484 |
|
2,040 |
|
| Taxation |
(611 |
) |
979 |
|
368 |
|
(492 |
) |
|
|
|
|
|
|
|
|
|
| Profit
for the year |
1,884 |
|
968 |
|
2,852 |
|
1,548 |
|
|
|
|
|
|
|
|
|
|
| Earnings
per share |
|
|
|
|
34.4 |
p |
18.4 |
p |
| Earnings
per share before specific items |
|
|
|
|
22.7 |
p |
19.5 |
p |
| Proposed
dividends per share |
|
|
|
|
15.1 |
p |
11.9 |
p |
|
|
|
|
|
|
|
|
|
| a Specific items comprise items that are considered to be significant one-off
or unusual items such as disposals of businesses
and investments. Separate identification of
these items is consistent with the way that
financial performance is measured by management
and assists in providing a meaningful analysis
of the trading results of the group. The principal
specific item in the 2007 financial year related
to the settlement of substantially all open
UK tax matters relating to tax years up to and
including 2004/05 with HM Revenue & Customs.
The total impact of this settlement was a net
credit of £1,067 million comprising a tax credit
of £938 million representing those elements
of the tax charges previously recognised which
were in excess of the final agreed liability,
interest income of £139 million on the repayment
and operating costs of £10 million representing
the costs associated with reaching this agreement.
Specific items in the 2006 financial year amounted
to a net cost of £96 million, mainly comprising
property rationalisation costs and a provision
for the costs of establishing Openreach as a
separate line of business. |
Line of business
summary
for the year ended 31 March
| |
Revenue |
|
Operating profit (loss) |
|
|
|
|
|
|
|
|
|
|
|
2007 |
|
2006
|
a |
2007 |
|
2006
|
a |
|
|
£m |
|
£m
|
|
£m |
|
£m
|
|
|
|
|
|
|
|
|
|
|
| BT
Global Services |
9,106 |
|
8,772 |
|
293 |
|
288 |
|
| BT
Retail |
8,414 |
|
8,507 |
|
674 |
|
569 |
|
| BT
Wholesale |
7,584 |
|
7,343 |
|
724 |
|
759 |
|
| Openreach |
5,177 |
|
5,142 |
|
1,177 |
|
1,183 |
|
| Other |
17 |
|
18 |
|
(327 |
) |
(304 |
) |
| Intra-group |
(10,075 |
) |
(10,268 |
) |
– |
|
– |
|
|
|
|
|
|
|
|
|
|
| Group
totals |
20,223 |
|
19,514 |
|
2,541 |
|
2,495
|
|
|
|
|
|
|
|
|
|
|
| a Restated to reflect the creation of Openreach. |
Summary
group cash flow statement
for
the year ended 31 March
| |
2007 |
|
2006
|
|
|
|
£m |
|
£m
|
|
|
|
|
|
|
| Net
cash inflow from operating activities |
5,210 |
|
5,387 |
|
| Net
cash (used) received in investing activities |
(3,035
|
) |
365 |
|
| Net
cash used in financing activities |
(2,898
|
) |
(5,278 |
) |
| Effects
of exchange rate changes |
(37
|
) |
– |
|
|
|
|
|
|
| Net
(decrease) increase in cash and cash equivalents |
(760
|
) |
474 |
|
| Cash
and cash equivalents at the start of the year |
1,784
|
|
1,310 |
|
|
|
|
|
|
| Cash
and cash equivalents at the end of the year |
1,024
|
|
1,784
|
|
|
|
|
|
|
| Free
cash flowa |
|
|
|
|
|
|
|
|
|
| Net
cash inflow from operating activities |
5,210
|
|
5,387 |
|
| Net
purchase of property, plant and equipment |
(3,209
|
) |
(2,874 |
) |
| Net
purchase of non-current asset investments |
(3
|
) |
(1 |
) |
| Dividends
received from associates |
6
|
|
1 |
|
| Net
interest paid |
(650
|
) |
(901 |
) |
|
|
|
|
|
| Free
cash flow |
1,354
|
|
1,612
|
|
|
|
|
|
|
| aFree cash flow is defined as the net increase in cash and cash
equivalents less cash flows from financing activities
(except interest paid) and less the acquisition
or disposal of group undertakings and less the
net sale of short term investments. |
Summary
group balance sheet
at 31 March
| |
|
|
|
|
| |
2007 |
|
2006
|
a |
|
|
£m |
|
£m
|
|
|
|
|
|
|
| Property,
plant and equipment |
14,997 |
|
15,222 |
|
|
|
|
|
|
| Other
non-current assets |
3,343
|
|
3,061 |
|
| Current
assets |
5,815
|
|
6,417 |
|
| Current
liabilities |
(9,617
|
) |
(9,480 |
) |
|
|
|
|
|
| |
14,538
|
|
15,220 |
|
|
|
|
|
|
| Non-current
liabilities |
10,266
|
|
13,613 |
|
| Parent
shareholders’ equity |
4,238
|
|
1,555 |
|
| Minority
interests |
34
|
|
52 |
|
|
|
|
|
|
| |
14,538
|
|
15,220
|
|
|
|
|
|
|
| aComparative
amounts have been reclassified to conform with
the presentation adopted in the 2007 financial
year. |
This summary financial
statement was approved by the Board of Directors on
16 May 2007 and was signed on its behalf by:
| Sir
Christopher Bland |
Ben
Verwaayen |
Hanif
Lalani |
| Chairman |
Chief
Executive |
Group
Finance Director |
|
