BT 1997 Annual Report Download - page 55

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NOTES TO THE FINANCIAL STATEMENTS
55
Group Company
1997 1996 1997 1996
20. Shareholders’ funds £m £m £m £m
The movement in the year was as follows:
Profit for the financial year 2,077 1,986 1,475 2,339
Dividends (3,510) (1,184) (3,510) (1,184)
Retained profit (transfer from reserves) for the financial year (1,433) 802 (2,035) 1,155
Goodwill, on acquisition of subsidiary and associated undertakings, written off (199) (302) ––
Goodwill, previously written off to reserves, taken back to
profit and loss account 512 ––
Net currency movements arising on consolidation of foreign
subsidiary and associated undertakings (76) 42 (155) 149
Issue of ordinary share capital 160 130 160 130
Other movements (19) (3) ––
Net addition (reduction) in year (1,562) 681 (2,030) 1,434
Balances at 1 April 12,678 11,997 14,048 12,614
Balances at 31 March 11,116 12,678 12,018 14,048
Group Company
1997 1996 1997 1996
21. Financial commitments and contingent liabilities £m £m £m £m
Contracts placed for capital expenditure not provided for in the accounts 1,125 1,180 1,008 1,133
Operating lease payments payable within one year of the
balance sheet date were in respect of leases expiring:
Within one year 10 763
Between one and five years 32 26 19 21
After five years 131 111 92 95
Total payable within one year 173 144 117 119
Future minimum operating lease payments for the group at 31 March 1997 were as follows:
Payable in the year ending 31 March:
£m
1998 173
1999 136
2000 127
2001 121
2002 118
Thereafter 1,325
Total future minimum operating lease payments 2,000
Operating lease commitments were mainly in respect of leases of land and buildings.
On 12 May 1997, the group acquired an additional 8.5% interest in Airtel Moviles SA, a leading cellular telephone operator in
Spain, for the equivalent of £114m to bring its total interest in the company to 15.8%.
The company has agreed to purchase a 26% interest in CEGETEL, a French telecommunications operator, for Fr8.8 billion
(approximately £1 billion). This transaction is expected to be completed later in 1997.