BT 2001 Annual Report Download - page 41

Tax paid in the 2001 ¢nancial year totalled »669 million
compared with »1,311 million paid in the 2000 ¢nancial year.
The lower tax paid in the 2001 ¢nancial year was due to the
lower pro¢ts earned in the 2001 and 2000 ¢nancial years
compared with the 1999 ¢nancial year. The payments in the
2001 and 2000 ¢nancial years included the ¢rst quarterly
instalments under the new corporation tax regime in the UK.
Tax paid in the 1999 ¢nancial year, which totalled »630
million, included the second and ¢nal windfall tax instalment of
»255 million which had been levied by the UK Government on
privatised companies in the 1998 ¢nancial year. Less UK
corporation tax was paid in the 1999 ¢nancial year than in the
two succeeding years because the advance corporation tax
(ACT) on a special dividend paid in September 1997 was able to
be o¡set. The tax paid in the 1998 ¢nancial year had included
»561 million ACT paid in respect of the special dividend.
HM Government changed the pattern of corporation tax
payments from April 1999 by requiring companies to pay tax
in quarterly instalments starting at the half-year stage in each
¢nancial year. The changes are being phased in over the 2000
to 2002 ¢nancial years, and replace the former main single
corporation tax payment made nine months after the ¢nancial
year end and ACT payments associated with dividends.
Net cash out£ow of »8,442 million for capital expenditure
and ¢nancial investment in the 2001 ¢nancial year was
principally for capital expenditure on plant and equipment of
»4,756 million and »4,208 million invested in third-generation
mobile licences. The net cash out£ow of »3,752 million in the
2000 ¢nancial year was principally for capital expenditure on
plant and equipment. In the 1999 ¢nancial year, there was a net
cash in£ow of »1,046 million which mainly comprised the
»4,159 million proceeds of the MCI shares sold in September
1998 o¡set by expenditure on plant, equipment and property
totalling »3,220 million.
Net cash out£ow on acquisitions totalled »13,754 million in
the 2001 ¢nancial year. This included »11,438 million invested
in Viag Interkom, including acquisition of its licences,
»1,233 million in Telfort, »1,176 million in completing the Esat
Telecom Group acquisitions, o¡set by »464 million received on
the disposal of sunrise communications and from other
divestments. The net cash out£ow on acquisitions of
»6,405 million in the 2000 ¢nancial year was principally
»3,014 million on the acquisition of the minority interest in BT
Cellnet, »1,254 million invested jointly with AT&T in Japan
Telecom and »659 million in Canadian interests, jointly owned
with AT&T. The net cash out£ow on acquisitions of
»1,967 million in the 1999 ¢nancial year was mainly the
acquisition of MCI’s minority interest in Concert
Communications and the investments in LG Telecom and Maxis
Communications, as well as additional funding of our European
ventures. We paid the consideration of »856 million for the
completion of the Esat Digifone minority acquisition in early
April 2001.
Equity dividends paid in the 2001 ¢nancial year totalled
»1,432 million, compared with »1,364 million in the 2000
¢nancial year and »1,186 million in the 1999 ¢nancial year. As
explained above, we do not intend to pay any equity dividends
in the 2002 ¢nancial year.
The resulting cash out£ow, before liquid resources and
¢nancing, of »19,127 million for the 2001 ¢nancial year was
funded by our issuing substantial amounts of long-term debt
instruments and drawing on our medium-term notes
programmes. In December 2000, we raised »6,909 million
through the issue of four series of US dollar notes totalling
$10 billion, with maturities between three and thirty years. In
February 2001, we received »6,038 million through the issue of
six series of euro and sterling notes totalling k9.7 billion, with
maturities between two and sixteen years. In April 2000, we
issued a twenty ¢ve-year »250 million index-linked Eurobond.
BT Annual report and Form 20-F 41
Summarised cash flow statement
2001
£m
2000
£m
1999
£m
Net cash inflow from operating activities 5,887 5,849 6,035
Dividends from associates and joint ventures 10 52
Net cash outflow for returns on investments and servicing of finance (727) (163) (328)
Taxation paid (669) (1,311) (630)
Net cash inflow (outflow) for capital expenditure and financial investment (8,442) (3,752) 1,046
Net cash outflow for acquisitions and disposals (13,754) (6,405) (1,967)
Equity dividends paid (1,432) (1,364) (1,186)
Cash inflow (outflow) before management of liquid resources and financing (19,127) (7,141) 2,972
Management of liquid resources (480) 1,236 (2,447)
Net cash inflow (outflow) from financing 19,735 5,959 (458)
Increase in cash in the year 128 54 67
Decrease (increase) in net debt in the year (18,942) (6,582) 3,146