BT 1999 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 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

NOTES TO THE FINANCIAL STATEMENTS
84
26. Reconciliation of movement in shareholders’ funds (continued)
Share Capital Profit
Share premium redemption and loss
capital account (a) reserve account Total
£m £m £m £m £m
))))%!!!!!!)%!)%!!!111005111111101111110051111
Company
Balances at 31 March 1996 1,573 531 750 11,194 14,048
Employee share option schemes – 64 million shares
issued (note 31) 16 144 – – 160
Profit for the financial year (e) – – – 1,475 1,475
Dividends (54.85p net per ordinary share) – – – (3,510) (3,510)
Currency movements (including £29m net gain in respect of
foreign currency borrowings) – – – (155) (155)
00005111051111110111!!!111005111111101111110051111
Balances at 31 March 1997 1,589 675 750 9,004 12,018
Employee share option schemes – 52 million shares
issued (note 31) 13 217 – – 230
Movement relating to BT’s employee share ownership trust (d) – – – (85) (85)
Profit for the financial year (e) – – – 2,146 2,146
Dividends (19.0p net per ordinary share) – – – (1,216) (1,216)
Scrip dividend – 4 million shares issued (note 25) 1 – (1) 18 18
Currency movements (including £31m net gain in respect of
foreign currency borrowings) – – – (66) (66)
00005111051111110111!!!111005111111101111110051111
Balances at 31 March 1998 1,603 892 749 9,801 13,045
Employee share option schemes – 50 million shares
issued (d) (note 31) 12 314 – – 326
Movement relating to BT’s employee share ownership trust (d) – – – (165) (165)
Profit for the financial year (e) – – – 3,785 3,785
Dividends (20.4p net per ordinary share) – – – (1,322) (1,322)
Scrip dividend – 8 million shares issued (note 25) 2 – (2) 74 74
Currency movements – – – 1 1
00005111051111110111!!!111005111111101111110051111
Balances at 31 March 1999 1,617 1,206 747 12,174 15,744
00005111051111110111!!!111005111111101111110051111
(a) The share premium account, representing the premium on allotment of shares and the capital redemption reserve is not
available for distribution.
(b) Aggregate goodwill at 31 March 1999 in respect of acquisitions completed prior to 1 April 1998 of £1,389m (1998 – £3,603m,
1997 – £2,671m) has been written off against retained earnings in accordance with the group’s accounting policy. The goodwill
written off in the year ended 31 March 1998 mainly arose in connection with the acquisition of the interest in Cegetel; that written
off in the year ended 31 March 1997 mainly arose in connection with the acquisition of shares not already owned in
BT Telecomunicaciones SA and the acquisition of Syntegra Groep BV. The goodwill written off against retained earnings will
be charged in the profit and loss account on the subsequent disposal of the business to which it related.
(c) The cumulative foreign currency translation adjustment, which decreased retained earnings at 31 March 1999, was £85m
(1998 – £130m decrease, 1997 – £56m decrease).
(d) During the year ended 31 March 1999 the company issued shares at a market value of £311m (1998 – £203m) in respect of
the exercise of options awarded under its principal savings-related share option scheme. Employees paid £146m (1998 – £118m)
to the group for the issue of these shares and the balance of £165m (1998 – £85m) comprised contributions to the qualifying
employee share ownership trust from group undertakings.
(e) The profit for the financial year, dealt with in the profit and loss account of the company and after taking into account dividends
from subsidiary undertakings, was £3,785m (1998 – £2,146m, 1997 – £1,475m). As permitted by Section 230 of the Companies
Act 1985, no profit and loss account of the company is presented.