BT 1999 Annual Report Download - page 107

Download and view the complete annual report

Please find page 107 of the 1999 BT annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 122

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122

106
Financial ratios
YEARS ENDED 31 MARCH
1995 1996 1997 1998 1999
))))))))%!!!0000000511
Basic earnings per share – pence 27.8 31.6 32.8 26.6 46.3
Growth in dividends per share % (a) 6.0 5.6 6.1 6.4 7.4
Return on capital employed % (b) 15.7 18.4 19.1 19.5 18.4
Gearing – net debt to equity % (c) 17.8 7.4 1.6 36.1 6.3
Interest cover (d) 10.3 16.9 19.7 11.2 12.1
Dividend cover (a) (e) 1.6 1.7 1.7 1.8 1.7
000000005!!!0000000511
(a) 1997 and 1998 figures exclude the effects of the special dividend of 35p per share paid in September 1997.
(b) The ratio is based on profit before tax and interest on long-term borrowings, 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. 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 1995 and 1997, net interest excludes the premium
paid on the repurchase of bonds.
(e) The number of times dividends are covered by earnings. The figure for 1998 excludes the effect of the windfall tax charge and
the figure for 1999 excludes the gain on sale of the MCI shares.
Expenditure on research and development
YEARS ENDED 31 MARCH
1995 1996 1997 1998 1999
£m £m £m £m £m
))))))))%!!!0000000511
Total expenditure 271 282 291 307 268
000000005!!!0000000511
Expenditure on tangible fixed assets
YEARS ENDED 31 MARCH
Plant and equipment
Transmission equipment 1,060 1,114 1,131 1,219 1,416
Exchange equipment 605 566 445 512 411
Other network equipment 378 491 503 502 558
Computers and office equipment 343 333 350 372 464
Motor vehicles and other 214 195 175 230 230
Land and buildings 75 87 143 211 205
Decrease in engineering stores (4) (15) (28) (16) (15)
000000005!!!0000000511
Total expenditure on tangible fixed assets 2,671 2,771 2,719 3,030 3,269
Decrease (increase) in creditors (33) (224) 104 (10) (49)
000000005!!!0000000511
Cash outflow on purchase of tangible fixed assets 2,638 2,547 2,823 3,020 3,220
000000005!!!0000000511
00000000000000005
Financial statistics have been restated where necessary to provide consistency with the presentation of the 1999 financial
year figures.
00000000000000005
Financial statistics