BT 1997 Annual Report Download - page 44

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NOTES TO THE FINANCIAL STATEMENTS
44
7. Earnings per share
Earnings per share are calculated by dividing the profit for the financial year ended 31 March 1997, amounting to
£2,077m (1996 – £1,986m), by 6,336 million shares, the average number of shares in issue during the financial year
(1996 – 6,283 million). A fully diluted earnings per share figure based on share options outstanding is not provided
as the effect on the earnings per share is not significant.
1997 1996
8. Reconciliation of operating profit to operating cash flows £m £m
Operating profit, including share of profit of associated undertakings 3,384 3,182
Depreciation 2,265 2,189
Share of profit of associated undertakings, net of dividends received £7m (1996 – £5m) (132) (77)
Decrease in stocks 31 36
Increase in debtors (168) (335)
Increase in creditors 478 493
Increase in provisions 321 309
Other 13 37
Net cash inflow from operating activities 6,192 5,834
1997 1996
9. Management of liquid resources £m £m
Purchase of short-term investments and payments into short-term deposits over 3 months (2,242) (2,520)
Sale of short-term investments and withdrawals from short-term deposits over 3 months 2,790 1,996
Net movement of short-term investments and short-term deposits under 3 months not repayable
on demand (1,052) (793)
Net cash outflow from management of liquid resources (504) (1,317)
Movements in all short-term investments and deposits not repayable on demand are reported under the heading of
management of liquid resources.
At Other At
1 April Cash non-cash Currency 31 March
1996 flow changes movement 1997
10. Net debt £m £m £m £m £m
Analysis of net debt
Cash in hand and at bank 121 (95) – – 26
Overnight deposits 28 3 – (1) 30
Bank overdrafts (13) 2 – – (11)
136 (90) – (1) 45
Other current asset investments 2,540 504 (5) (95) 2,944
Short-term investments and cash, less bank overdrafts 2,676 414 (5) (96) 2,989
Debt due within one year, excluding bank overdrafts (302) 108 (279) 1 (472)
Debt due after one year (3,322) 327 254 48 (2,693)
Total debt, excluding bank overdrafts (3,624) 435 (25) 49 (3,165)
Net debt (948) 849 (30) (47) (176)