BT 1999 Annual Report Download - page 70

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NOTES TO THE FINANCIAL STATEMENTS
69
1999 1998 1997
5. Group’s share of operating profit (loss) of associates and joint ventures £m £m £m
))))))))))))01111110051111
The group’s share of operating profit (loss) of associates and joint ventures comprised:
Joint ventures – continuing activities (342) (199) (36)
Associates:
Continuing activities –(22) –
Discontinued activities –25 220
–3 220
00000000000511!!!01111110051111
Group’s share of operating profit (loss) of associates and joint ventures (342) (196) 184
00000000000511!!!01111110051111
The group’s amortisation of goodwill for the year ended 31 March 1999 arising in its joint ventures and associates was £12m and
£5m, respectively. The group’s share of results of associates from discontinued activities for the year ended 31 March 1998
included the group’s share of a charge, made by MCI Communications Corporation, amounting to £63m mainly for the exiting
from and restructuring of customer contracts.
6. Profit on sale of fixed asset investments and group undertakings
In September 1998, the group completed the sale of its interest in MCI for £4,159m at a pre-tax profit of £1,133m, after taking
into account goodwill of £2,214m originally written off on the acquisition of the group’s interest in MCI in September 1994.
A provision for impairment of £26m against another fixed asset investment has been offset against this profit giving a net gain
of £1,107m. These two items have been classified as exceptional in the year ended 31 March 1999.
In the years ended 31 March 1999, 1998 and 1997 the subsidiary undertakings disposed of had a negligible effect on the group’s
operating profit and cash flows and their net assets were immaterial to the group’s financial position.
1999 1998(a) 1997(a)
7. Interest receivable £m £m £m
))))))))))))01111110051111
Income from listed investments 911 12
Other interest receivable 150 149 194
00000000000511!!!01111110051111
Group 159 160 206
Joint ventures 2– –
Associates 42 3
00000000000511!!!01111110051111
Total interest receivable 165 162 209
00000000000511!!!01111110051111
(a) Figures have been restated to include the group’s share of its associates’ and joint ventures’ interest receivable. Income from
listed investments for the year ended 31 March 1998 has been restated to exclude £5m dividends from the company’s shares
held in trust (note 31).
1999 1998(a) 1997(a)
8. Interest payable £m £m £m
))))))))))))01111110051111
Interest payable and similar charges in respect of:
Bank loans and overdrafts 77 80 76
Other borrowings (b) 343 334 259
00000000000511!!!01111110051111
Group 420 414 335
Joint ventures 19 2 –
Associates 12 56 48
00000000000511!!!01111110051111
Total interest payable 451 472 383
00000000000511!!!01111110051111
(a) Figures have been restated to include the group’s share of its associates’ and joint ventures’ interest payable.
(b) Includes £7m premium charged in the year ended 31 March 1999 on the early redemption of US$200m 95⁄8% Guaranteed
Debentures 2019 on 16 February 1999.
9. Premium on repurchase of bonds
In August 1996, the company repurchased two of the three series of HM Government held bonds then outstanding for £422m at
an effective premium of £60m. The final bond series with a face value of £140m was repaid on maturity on 31 March 1997.