1998		1999		2000		2001		2002
Financial ratios
Basic earnings per share on continuing activities before goodwill amortisation and exceptional items - pence		24.3		30.3		29.5		19.3		8.8
Basic earnings (loss) per share on continuing activities - pence		19.7		40.5		29.2		20.7		(34.8	)
Basic earnings (loss) per share - pence		23.5		41.1		27.6		(25.7	)	12.0
Return on capital employed %a		19.5		19.2		18.2		14.9		6.6	de
Interest coverb		11.2		12.2		8.8		2.6		0.6	c
aThe ratio is based on profit before tax, goodwill amortisation and interest on long-term borrowings, to average capital employed. Capital employed is represented by total assets, excluding goodwill, less current liabilities, excluding corporate taxes and dividends payable, and provisions other than those for deferred taxation. Year-end figures are used in the computation of the average, except in the case of short-term investments and borrowings where average daily balances are used in their place.
bThe number of times net interest payable is covered by total operating profit before goodwill amortisation.
cInterest cover based on continuing activities before goodwill amortisation and exceptional items was 1.9 times (2001 - 2.4 times).
dReturn on capital employed for 2002 is based upon the continuing activities.
eReturn on capital employed on continuing activities before goodwill amortisation and exceptional items was 15.7%.
		1998 £m		1999 £m		2000 £m		2001 £m		2002 £m
Expenditure on research and development
Total expenditure		307		268		345		364		362
		1998 £m		1999 £m		2000 £m		2001 £m		2002 £m
Expenditure on tangible fixed assets
Plant and equipment
Transmission equipment		944		1,070		1,239		1,655		1,373
Exchange equipment		511		410		412		478		428
Other network equipment		501		555		636		918		694
Computers and office equipment		349		364		419		407		273
Motor vehicles and other		227		227		254		231		189
Land and buildings		204		200		187		171		153
Increase (decrease) in engineering stores		(16	)	(15	)	13		(3	)	(10	)
Total continuing activities		2,720		2,811		3,160		3,857		3,100
Plant and equipment
Transmission equipment		275		346		324		640		380
Exchange equipment		1		1		1		1		-
Other network equipment		1		3		67		262		262
Computers and office equipment		23		100		83		167		113
Motor vehicles and other		3		3		3		20		28
Land and buildings		7		5		42		39		25
Total discontinued activities		310		458		520		1,129		808
Total expenditure on tangible fixed assets		3,030		3,269		3,680		4,986		3,908
Decrease (increase) in creditors		(10	)	(49	)	(112	)	(230	)	161
Cash outflow on purchase of tangible fixed assets		3,020		3,220		3,568		4,756		4,069

Financial statistics have been restated where necessary to provide consistency with the presentation of the 2002 financial year figures.