BT 1997 Annual Report Download - page 64

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64
Financial statistics
Financial ratios YEAR ENDED 31 MARCH
1993 1994 1995 1996 1997
Earnings per share – pence 19.8 28.5 27.8 31.6 32.8
Growth in net dividends per share % (a) 8.3 7.1 6.0 5.6 6.1
Return on capital employed % (b) 13.6 17.1 15.6 18.3 18.9
Gearing – net debt to equity % (c) 14.3 9.3 17.8 7.4 1.6
Interest cover (d) 9.4 13.0 10.3 18.2 25.2
Dividend cover (a) (e) 1.3 1.7 1.6 1.7 1.7
(a) Excluding 1997 special dividend of 35p per share.
(b) The ratio is based on profit before tax and interest on long-term borrowings, adjusted to reflect the utilisation of any
restructuring provision, to average capital employed. Capital employed is represented by total assets less current liabilities,
excluding corporate taxes and dividends payable, and provisions other than those for deferred taxation and restructuring.
Year-end figures are used in the computation of the average, except in the case of short-term investments and borrowings
where average daily balances are used in their place.
(c) The ratio is based on borrowings net of cash and short-term investments to capital and reserves and minority interests.
(d) The number of times net interest payable is covered by operating profit. In 1993, 1995 and 1997, net interest excludes the
premiums paid on the repurchase of bonds.
(e) The number of times dividends are covered by earnings.
Expenditure on research and development YEAR ENDED 31 MARCH
1993 1994 1995 1996 1997
£m £m £m £m £m
Total expenditure 233 265 271 282 291
Expenditure on tangible fixed assets YEAR ENDED 31 MARCH
Plant and equipment
Transmission 835 896 1,060 1,114 1,131
Telephone exchanges 545 493 605 566 445
Other network equipment 296 335 378 491 503
Computers and office equipment 152 219 343 333 350
Motor vehicles and other 272 153 214 195 175
Land and buildings 66 51 75 87 143
Increase (decrease) in engineering stores (11) 24 (4) (15) (28)
Total expenditure on tangible fixed assets 2,155 2,171 2,671 2,771 2,719
Decrease (increase) in creditors (7) (10) (33) (224) 104
Cash outflow on purchase of tangible fixed assets 2,148 2,161 2,638 2,547 2,823