|
The
2003 financial year was characterised by a focus on
implementing and delivering the three-year strategy
announced in April 2002 and further corporate transactions
in the continued restructuring of the group and reduction
of net debt. The corporate transactions included the
unwind of the Concert joint venture on 1 April 2002
and the disposal of our interest in Cegetel for £2.6
billion.
The
2002 financial year was dominated by a series of corporate
transactions designed to focus and transform the group
and reduce its net debt position. Those corporate transactions
included raising £5.9 billion through the rights
issue in June 2001, selling our Japanese telecom and
Spanish mobile investments for £4.8 billion, selling
the Yell directories business for approximately £2
billion, the demerger of mmO2 and
the sale and leaseback of properties for £2.4
billion.
During
the 2001 financial year the group underwent an organisational
restructuring that resulted in the formation of the
lines of business with activities being grouped by market
sector rather than geography. Significant acquisitions
were also made for a total consideration of £11.9
billion, including Viag Interkom and Telfort.
As
a result of the major restructuring of the group and
the significant level of corporate transactions completed
during the period under review, we believe it is difficult
for investors to meaningfully compare the financial
performance of the group between the financial years
under review. In this Financial review the commentary
is therefore focused principally on the trading results
of the continuing activities of BT Group before goodwill
amortisation and exceptional items. In comparing the
continuing activities of the group, the results of our
discontinued activities, namely our Japanese telecom
and Spanish mobile investments, Yell and mmO2 are
excluded. Goodwill amortisation is excluded because
the annual charge has varied significantly during the
period under review as a result of the corporate transactions
noted above and the exceptional impairment charges.
The exceptional items are excluded because they predominantly
relate to the corporate transactions rather than the
trading activities of the group. This is also consistent
with the way that financial performance is measured
by management and we believe allows a meaningful comparison
to be made of the trading results of the group during
the period under review.
The
goodwill amortisation and exceptional items are therefore
analysed and discussed separately from the line of business
results in this Financial review because they are considered
to be a reflection of the corporate activity rather
than the trading activity of the lines of business.
The
following table shows the summarised profit and loss
account which includes a reconciliation of the key performance
measures before and after goodwill amortisation and
exceptional items and is discussed further in this Financial
review. The operating results by line of business are
discussed in addition to the overall group results as
we believe the activities and markets they serve are
distinct and this analysis provides a greater degree
of insight to investors.
Summarised
profit and loss account
Line of Business Summary
|
