BT 2005 Annual Report Download - page 97

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25. Reconciliation of movement in shareholders’ funds
Share
capital
£m
Share
premium
account
£m
Capital
redemption
reserve
£m
Other
reserves
£m
Profit and
loss
account
£m
Total
£m
Balances at 1 April 2002 as previously stated 434 2 – 1,025 (1,819) (358)
Prior period adjustment (note 1) ––––(152) (152)
1 April 2002 as restated 434 2 – 1,025 (1,971) (510)
Goodwill, previously written off to reserves, taken
back to the profit and loss account
a
(note 6) ––––869 869
Employee share option schemes – 0.2 million shares issued
(note 31) ––––––
Transfer between reserves
b
–––(27) 27 –
Currency movements (including £106 million net
movements in respect of foreign currency borrowings)
c
––––55
Consideration received on employee share option plans – – – – 27 27
Amounts credited in respect of employee share plans – – – – 48 48
Profit for the year as restated – – – – 2,702 2,702
Dividends (6.5p per ordinary share) – – – – (560) (560)
Balances at 1 April 2003 as restated 434 2 – 998 1,147 2,581
Purchase of own shares:
d
– shares cancelled (2) – 2 – (64) (64)
– shares held as treasury shares – – – – (80) (80)
Currency movements (including £133 million net
movements in respect of foreign currency borrowings)
c
––––(89) (89)
Amounts credited in respect of employee share plans – – – – 36 36
Profit for the year as restated – – – – 1,414 1,414
Dividends (8.5p per ordinary share) – – – – (732) (732)
Balances at 1 April 2004 as restated 432 2 2 998 1,632 3,066
Purchase of own shares held as treasury shares
d
––––(195) (195)
Currency movements (including £27 million net
movements in respect of foreign currency borrowings)
c
––––1919
Arising on share issues – 1 – – – 1
Amounts credited in respect of employee share plans – – – – 22 22
Profit for the year – – – – 1,821 1,821
Dividends (10.4p per ordinary share) – – – – (883) (883)
Balances at 31 March 2005 432 3 2 998 2,416 3,851
a
Aggregate goodwill at 31 March 2005 in respect of acquisitions completed prior to 1 April 1998 of £385 million (2004 – £385 million, 2003 – £385
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.
b
Release of statutory reserves in subsidiary undertakings on cessation of associated activities.
c
The cumulative foreign currency translation adjustment, which increased retained earnings at 31 March 2005, was £152 million (2004 – £133 million,
2003 – £222 million).
d
During the year ended 31 March 2005 the company repurchased 101,280,000 (2004 – 80,571,000) of its own shares of 5p each, representing 1%
(2004 – 1%) of the called-up share capital, for an aggregate consideration of £195 million (2004 – £144 million). At 31 March 2005 134,497,000 shares
(2004 – 44,349,000 shares) with an aggregate nominal value of £7 million are held as treasury shares at cost. Of the total shares repurchased during the
year ended 31 March 2004 36,222,000 shares with an aggregate nominal value of £2 million were cancelled immediately.
26. Related party transactions
In the year ended 31 March 2005, the group’s turnover with its associates and joint ventures amounted to £nil (2004 –
£1 million, 2003 – £3 million) and the group purchased £7 million (2004 – £60 million, 2003 – £69 million) in services
and products from these undertakings. The amount of debt outstanding with these undertakings, at 31 March 2005,
was £6 million (2004 – £28 million). The maximum debt outstanding during the year was £40 million (2004 – £43
million). As at the latest practicable date, 13 May 2005, the amount of debt outstanding was £6 million.
There were a number of transactions during the year between the company and its subsidiary undertakings, which
are eliminated on consolidation and therefore not disclosed.
27. Financial commitments and contingent liabilities
2005
£m
2004
£m
Contracts placed for capital expenditure not provided in the accounts 735 879
Operating lease payments payable within one year of the balance sheet date were in respect of leases
expiring:
Within one year 11 8
Between one and five years 43 29
After five years 321 330
Total payable within one year 375 367
96 BT Group plc Annual Report and Form 20-F 2005 Notes to the financial statements