BT 1998 Annual Report Download - page 54

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O T E S T O TH E F I N A N C I A L S TAT E M E N T S
8. Tax on profit on ordinary activities (continued)
The deferred taxation charge (credit) was mainly the result of the tax effect of timing differences as follows:
1998 1997 1996
£m £m £m
))))))))))))01111110051111
Excess capital allowances 24 62 76
Pension provisions 20 (103) (29)
Other timing differences (27) (59) (67)
00000000000511!!!01111110051111
17 (100) (20)
Release due to reduction in corporation tax rate (25) – –
Prior year adjustments (a) (14) 21 116
00000000000511!!!01111110051111
Total deferred taxation charge (credit) (22) (79) 96
00000000000511!!!01111110051111
(a) Reclassification between deferred and current taxation on the profit on ordinary activities for prior years.
1998 1997 1996
pence pence pence 1998 1997 1996
9. Dividends per share per share per share £m £m £m
))))))%!!!!!!!01111110051111!!!01111110051111
Interim dividend paid 7.55 7.90 7.45 483 502 469
Proposed final dividend 11.45 11.95 11.25 737 764 715
00000051111!!!01111110051111!!!01111110051111
Total ordinary dividends 19.00 19.85 18.70 1,220 1,266 1,184
Special dividend –35.00 – –2,244 –
00000051111!!!01111110051111!!!01111110051111
Total dividends 19.00 54.85 18.70 1,220 3,510 1,184
00000051111!!!01111110051111!!!01111110051111
10. Earnings per share
Earnings per share are calculated by dividing the profit for the financial year ended 31 March 1998, amounting to £1,706m
(1997 – £2,077m, 1996 – £1,986m), by 6,394 million shares, the weighted average number of shares in issue during the financial
year (1997 – 6,336 million, 1996 – 6,283 million). The fully diluted earnings per share are based on share options outstanding.
The exceptional items in the calculation of the earnings per share before exceptional items in the year ended 31 March 1998 and
the individual earnings per share effects are:
Pence per
share £m
0111!!!0111
MCI merger break up fee received less expenses 238
Less tax charge attributable to the MCI merger break up fee (50)
0001110000000000!!!)!!!!!!0111
Net merger break up fee after tax 3.0 188
Windfall tax charge (8.0) (510)
0001110000000000!!!0111!!!0111
Net charge (5.0) (322)
0001110000000000!!!0111!!!0111
1998 1997 1996
11. Reconciliation of operating profit to operating cash flows £m £m £m
))))))))))))01111110051111
Operating profit, including share of results of associated undertakings 3,405 3,384 3,182
Depreciation 2,395 2,265 2,189
Share of losses (profits) of associated undertakings net of
dividends received £5m (1997 – £7m, 1996 – £5m) 257 (132) (77)
Decrease in stocks 36 31 36
Increase in debtors (29) (168) (335)
Increase in creditors 44 478 493
Increase (decrease) in provisions (47) 321 309
Other 15 13 37
00000000000511!!!01111110051111
Net cash inflow from operating activities 6,076 6,192 5,834
00000000000511!!!01111110051111