BT 2001 Annual Report Download - page 111

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27. Reconciliation of movement in shareholders’ funds (continued)
Share
capital
£m
Share
premium
account(a)
£m
Capital
redemption
reserve(a)
£m
Profit
and loss
account
£m
Total
£m
Company
Balances at 31 March 1998 1,603 892 749 9,801 13,045
Employee share option schemes – 50 million shares issued (c)
(note 33) 12 314 – – 326
Movement relating to BT’s employee share ownership trust (c) – – – (165) (165)
Profit for the financial year (e) – – – 3,785 3,785
Dividends (20.4p per ordinary share) – – – (1,322) (1,322)
Scrip dividend – 8 million shares issued 2 – (2) 74 74
Currency movements – – – 1 1
Balances at 31 March 1999 1,617 1,206 747 12,174 15,744
Employee share option schemes – 38 million shares issued (c)
(note 33) 10 374 – – 384
Movement relating to BT’s employee share ownership trust (c) – – – (252) (252)
Profit for the financial year (e) – – – 2,064 2,064
Dividends (21.9p per ordinary share) – – – (1,426) (1,426)
Currency movements – – – (8) (8)
Balances at 31 March 2000 1,627 1,580 747 12,552 16,506
Employee share option schemes – 78 million shares issued (c)
(note 33) 19 615 – – 634
Movement relating to BT’s employee share ownership trust (c) – – – (263) (263)
Loss for the financial year (e) – – – (2,056) (2,056)
Dividend (8.7p per ordinary share) – – – (571) (571)
Currency movements – – – 71 71
Balances at 31 March 2001 1,646 2,195 747 9,733 14,321
(a) The share premium account, representing the premium on allotment of shares, the capital redemption reserve and £110 million of the other reserves are not
available for distribution.
(b) Aggregate goodwill at 31 March 2001 in respect of acquisitions completed prior to 1 April 1998 of £1,383 million (2000 – £1,383 million,
1999 – £1,389 million) has been written off against retained earnings in accordance with the group’s accounting policy. 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) During the year ended 31 March 2001 the company issued shares at a market value of £400 million (2000 – £375 million) in respect of the exercise of options
awarded under its principal savings-relating share option scheme. Employees paid £145 million (2000 – £118 million) to the group for the issue of these shares
and the balance of £255 million (2000 – £257 million) comprised contributions to the qualifying employee share ownership trust from group undertakings. In
addition the company issued shares at a market value of £171 million to the qualifying employee share ownership trust in anticipation of the exercise of share
options in August 2001 paid for by contributions to the trust from group undertakings, these shares were written down by £96 million to the option exercise
price as part of the movement relating to the employee share ownership trust.
(d) The cumulative foreign currency translation adjustment, which increased retained earnings at 31 March 2001, was £278 million (2000 – £151 million decrease,
1999 – £85 million decrease).
(e) The loss 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 £2,056 million (2000 – £2,064 million profit, 1999 – £3,785 million profit). As permitted by Section 230 of the Companies Act 1985, no profit and loss
account of the company is presented.
28. Related party transactions with associates and joint ventures
In the year ended 31 March 2001, the group’s turnover with Concert amounted to »804 million (2000 ^ »181 million) and it
purchased »612 million (2000 ^ »170 million) in services and products from Concert. In addition, the group provided certain
support services to Concert, including the secondment of sta¡, which totalled »168 million (2000 ^ »79 million) and is shown as
other operating income. Interest for the year of »41 million (2000 ^ »12 million) was receivable on long-term debt due from
Concert at a rate of 6.5%. The amount of debt outstanding at 31 March 2001 was »651 million (2000 ^ »665 million). The
maximum debt outstanding during the year was »674 million (2000 ^ »665 million). As at the latest practicable date, 30 April
2001, the balance of the loan was »636 million. During the year ended 31 March 2000, Concert Communications’ net out£ow from
operations was »18 million and its purchase of tangible ¢xed assets was »106 million. Comparative ¢gures for 2000 are for the
period from the formation of the joint venture on 5 January 2000 to 31 March 2000.
BT Annual report and Form 20-F 111