Summary financial statement

Summary group income statement          
for the year ended 31 March

 

           
Before specific items     Specific items a   Total     Total  
  2008     2008     2008     2007  
  £m     £m     £m     £m  











 
Revenue 20,704         20,704     20,223  











 
Operating profit 2,895     (539 )   2,356     2,541  
Net finance expense (378 )       (378 )   (94 )
Share of post tax (loss) profit of associates and joint ventures (11 )   (11 ) 15  
Profit on disposal of associate     9     9     22  











 
Profit before taxation 2,506     (530 )   1,976     2,484  
Taxation (581 )   343     (238 )   368  











 
Profit for the year 1,925     (187 )   1,738     2,852  











 
Earnings per share             21.5 p   34.4 p
Earnings per share before specific itemsa             23.9 p   22.7 p











 
Proposed dividends per share             15.8 p   15.1 p











 
aSpecific items comprise items that are considered to be significant one-off or unusual items such as restructuring costs and 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. Specific items in 2008 and 2007 are shown in the table below.
 
           
  2008     2007  
  £m     £m  





 
Restructuring costs 402      
Creation of Openreach and delivery of the Undertakings 53     30  
Write off of circuit inventory and other working capital balances 74     65  
Property rationalisation costs     64  
Loss on disposal of group undertakings and investments 10     3  
Costs associated with settlement of open tax years     10  





 
Specific operating costs 539     172  
Interest on settlement of open tax years     (139 )





 
Profit on disposal of joint ventures and associates (9 )   (22 )





 
Tax credit on specific items above (149 )   (41 )
Tax credit in respect of settlement of open tax years (40 )   (938 )
Tax credit on re-measurement of deferred tax at 28% (154 )    





 
Specific items tax credit (343 )   (979 )





 
Net specific items after tax 187     (968 )





 
               
Line of business summary              
for the year ended 31 March                    
        Revenue     Operating profit (loss)a  
  2008     2007a     2008   2007b  
  £m     £m     £m   £m  










 
BT Global Services 7,889     7,312     117   70  
BT Retail 8,477     8,346     1,050   912  
BT Wholesale 4,959     5,386     502   592  
Openreach 5,266     5,223     1,222   1,220  
Other 28     17     4   (81 )
Intra-group (5,915 )   (6,061 )      










 
Group totals 20,704     20,223     2,895   2,713  










 
a Line of business results shown before specific items.
b Restated to reflect the reorganisation of the group.

 

Summary group cash flow statement      
for the year ended 31 March      
  2008     2007  
  £m     £m  





 
Net cash inflow from operating activities 5,486     5,210  
Net cash outflow from investing activities (3,664 )   (2,778 )
Net cash used in financing activities (1,430 )   (2,898 )
Effect of exchange rate changes 25     (35 )





 
Net increase (decrease) in cash and cash equivalents 417     (501 )
Cash and cash equivalents at the start of the year 757     1,258  





 
Cash and cash equivalents at the end of the year 1,174     757  





 
Free cash flowa         





 
Net cash inflow from operating activities 5,486     5,210  
Net purchase of property, plant and equipment (3,253 )   (3,209 )
Net purchase of non current asset investments (1 )   (3 )
Dividends received from associates and joint ventures 2     6  
Net interest paid (731 )   (650 )





 
Free cash flow 1,503     1,354  





 
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      
  2008     2007  
  £m     £m  






Property, plant and equipment 15,307     14,997  






Other non current assets 7,522     3,343  
Current assets 6,523     5,815  
Current liabilities (9,704 )   (9,572 )






  19,648     14,583  






Non current liabilities 14,216     10,311  
Parent shareholders’ equity 5,409     4,238  
Minority interests 23     34  






  19,648     14,583  






This summary financial statement was approved by the Board of Directors on 14 May 2008 and was signed on its behalf by:

Sir Michael Rake Ben Verwaayen Hanif Lalani
Chairman Chief Executive Group Finance Director

 

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