BT 1997 Annual Report Download - page 42

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42
Notes to the fınancial statements
1997 1996
1. Turnover £m £m
Inland telephone calls 4,874 4,882
International telephone calls 1,809 1,980
Telephone exchange line rentals 2,811 2,685
Private circuits 1,124 1,056
Mobile communications 949 856
Customer premises equipment supply 914 946
Yellow Pages and other directories 438 408
Other sales and services 2,016 1,633
Total turnover 14,935 14,446
Turnover included income from telecommunication operators of £1,165m (1996 – £1,166m). In the year 3% (1996 – 2%) of
turnover arose from operations outside the United Kingdom. There are no discontinued operations or acquisitions which
require disclosure under Financial Reporting Standard 3.
1997 1996
2. Operating costs £m £m
Staff costs:
Wages and salaries 3,161 3,105
Social security costs 262 261
Pension costs (note 22) 291 284
Employee share ownership scheme (a) 64 30
Total staff costs 3,778 3,680
Own work capitalised (399) (417)
Depreciation (note 11) 2,265 2,189
Payments to telecommunication operators 1,476 1,383
Redundancy charges (b) 367 421
Other operating costs 4,309 4,193
Other operating income (106) (103)
Total operating costs 11,690 11,346
Operating costs included the following:
Research and development 291 282
Rental costs relating to operating leases,
including plant and equipment hire £10m (1996 – £23m) 215 250
(a) Amount set aside for the year for allocation of ordinary shares in the company to eligible employees.
(b) Redundancy charges for the year ended 31 March 1997 included £258m (1996 – £266m) being the cost of providing
incremental pension benefits for employees taking early retirement.
The directors believe that the nature of the group’s business is such that the analysis of operating costs required by the
Companies Act 1985 is not appropriate. As required by the Act, the directors have therefore adapted the prescribed format so
that operating costs are disclosed in a manner appropriate to the group’s principal activity.