BT 2000 Annual Report Download - page 115

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1996 1997 1998 1999 2000
Financial ratios
Basic earnings per share ± pence 31.6 32.8 26.6 46.3 31.7
Growth in dividends per share % (a) 5.6 6.1 6.4 7.4 7.4
Return on capital employed % (b) 18.4 19.1 19.5 19.2 18.2
Gearing ± net debt to equity % (c) 7.4 1.6 36.1 6.3 53.4
Interest cover (d) 16.9 19.7 11.2 12.2 8.8
Dividend cover (a) (e) 1.7 1.7 1.8 1.7 1.4
(a) 1997 and 1998 ®gures exclude the effects of the special dividend of 35p per share paid in September 1997.
(b) The ratio is based on pro®t before tax, goodwill amortisation and interest on long-term borrowings, to average capital employed. Capital employed
is represented by total assets, excluding goodwill, less current liabilities, excluding corporate taxes and dividends payable, and provisions other than
those for deferred taxation. Year-end ®gures 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 pro®t before goodwill amortisation. In 1997, net interest excludes the premium paid
on the repurchase of bonds.
(e) The number of times dividends are covered by earnings. The ®gure for 1998 excludes the effect of the windfall tax charge and the ®gure for 1999
excludes the gain on sale of the MCI shares.
1996
£m
1997
£m
1998
£m
1999
£m
2000
£m
Expenditure on research and development
Total expenditure 282 291 307 268 345
1996
£m
1997
£m
1998
£m
1999
£m
2000
£m
Expenditure on tangible ®xed assets
Plant and equipment
Transmission equipment 1,114 1,131 1,219 1,416 1,563
Exchange equipment 566 445 512 411 413
Other network equipment 491 503 502 558 703
Computers and of®ce equipment 333 350 372 464 502
Motor vehicles and other 195 175 230 230 257
Land and buildings 87 143 211 205 229
Increase (decrease) in engineering stores (15) (28) (16) (15) 13
Total expenditure on tangible ®xed assets 2,771 2,719 3,030 3,269 3,680
Decrease (increase) in creditors (224) 104 (10) (49) (112)
Cash out¯ow on purchase of tangible ®xed assets 2,547 2,823 3,020 3,220 3,568
Financial statistics have been restated where necessary to provide consistency with the presentation of the 2000 ¢nancial
year ¢gures.
Financial statistics years ended 31 March
114 Annual report and Form 20-F