Annual Review and summary financial statement

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Summary financial statement

Summary group profit and loss account
for the year ended 31 March 2005

 

Before goodwill

 

Goodwill

 

 

 

 

 

 

amortisation

 

amortisation

 

 

 

 

 

 

and exceptional

 

and exceptional

 

 

 

 

 

 

items

 

items

(a) 

Total

 

Total

(b)

 

2005

 

2005

 

2005

 

2004

(c)

 

£m

 

£m

 

£m

 

£m

 







 


 

Group turnover

18,623

 

–

 

18,623

 

18,519

 







 


 

Group operating profit (loss)

2,864

 

(75

)

2,789

 

2,870

 

Group’s share of operating loss

 

 

 

 

 

 

 

 

of associates and joint ventures

–

 

(25

)

(25

)

(34

)

Total operating profit (loss)

2,864

 

(100

)

2,764

 

2,836

 

Profit on sale of fixed asset investments

 

 

 

 

 

 

 

 

and group undertakings

–

 

358

 

358

 

36

 

Profit on sale of property fixed assets

22

 

–

 

22

 

14

 

Net interest payable

(801

)

–

 

(801

)

(941

)







 


 

Profit before taxation

2,085

 

258

 

2,343

 

1,945

 

Tax

(539

)

16

 

(523

)

(539

)







 


 

Profit after taxation

1,546

 

274

 

1,820

 

1,406

 

Minority interests

1

 

–

 

1

 

8

 







 


 

Profit for the financial year

1,547

 

274

 

1,821

 

1,414

 

Dividends

 

 

 

 

(883

)

(732

)







 


 

Retained profit

 

 

 

 

938

 

682

 







 


 

 

 

 

 

 

 

 

 

 







 


 

Earnings per share

 

 

 

 

21.4

p

16.4

p

Dividends per share

 

 

 

 

10.4

p

8.5

p







 


 

Earnings per share before goodwill

 

 

 

 

 

 

 

 

amortisation and exceptional items

 

 

 

 

18.1

p

16.9

p







 


 

(a) Includes goodwill amortisation of £16 million, an exceptional property rationalisation charge of £59 million in relation to the group’s provincial office portfolio, our share of a write down of Albacom SpA’s assets, prior to Albacom becoming a subsidiary, of £25 million and a profit of £358 million mainly from the sale of the group’s investments in Intelsat, Eutelsat and StarHub. This resulted in a net credit of £258 million to profit before taxation.

(b) Includes goodwill amortisation of £12 million, a net exceptional charge of £7 million reflecting the release of an exceptional bad debt provision of £23 million offset by rectification costs relating to a major incident, our share of a goodwill impairment charge made by Albacom of £26 million, a profit of £32 million on the sale of our interest in Inmarsat, and a one-off interest credit of £34 million offset by a charge for the premium on buying back bonds of £89 million. This resulted in a net charge of £68 million to profit before taxation.

(c) During the 2005 financial year the group adopted UITF Abstract 38 ‘Accounting for ESOP trusts’ and the related amendments to UITF Abstract 17 (revised 2003) ‘Employee Share Schemes’. An additional charge of £3 million for the 2004 financial year has been made to the group profit and loss account. The effect on the group balance sheet at 31 March 2004 has been to reduce fixed assets by £53 million, to reduce other creditors by £25 million and to reduce shareholders’ funds by £28 millon.

Group turnover chart

Earnings per share chart

Dividend per share chart

This summary financial statement was approved by the Board on 18 May 2005 and was signed on its behalf by:

Sir Christopher Bland
Chairman

Ben Verwaayen
Chief Executive

Hanif Lalani
Group Finance Director

Group turnover
Turnover from products and services sold to customers by BT.

Net interest payable
Interest paid on borrowings less interest received on short term investments.

Earnings per share
Our profit for the financial year divided by the average number of shares in issue during the period.