BT 2006 Annual Report Download - page 131

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IFRS 2006 2005
Financial ratios
Basic earnings per share before specific items – pence 19.5 18.1
Basic earnings per share – pence 18.4 21.5
Return on capital employed before specific items
a
– % 16.8 16.5
Interest cover before net pension finance income
b
– times 3.6 3.4
2006
£m
2005
£m
Expenditure on research and development
Research and development expense 326 257
Amortisation of capitalised software development costs 160 95
Total 486 352
2006
£m
2005
£m
Expenditure on property plant and equipment and software
Plant and equipment
Transmission equipment 1,429 1,488
Exchange equipment 80 143
Other network equipment 727 648
Computers and office equipment 281 312
Motor vehicles and other 572 349
Land and buildings 68 64
3,157 3,004
Increase (decrease) in engineering stores (15) 7
Total expenditure on property plant and equipment 3,142 3,011
(Increase) decrease in payables (202) 45
Cash outflow on purchase of property plant and equipment and software 2,940 3,056
aThe ratio is based on profit before taxation and net finance expense to average capital employed. Capital employed is represented by total assets less current liabilities (excluding corporation tax,
current borrowings, derivative financial liabilities and finance lease creditors) less cash and cash equivalents, derivative financial assets and investments.
bThe number of times net finance expense before net pension finance income is covered by total operating profit. Interest cover including net pension finance income is 5.6 times (2005: 4.5 times).
FINANCIAL STATISTICS
Years ended 31 March
Financial statistics BT Group plc Annual Report and Form 20-F 2006 129