BT 2007 Annual Report Download - page 155

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154 BT Group plc Annual Report & Form 20-F
IFRS 2007 2006 2005
Financial ratios
Basic earnings per share before specific items – pence 22.7 19.5 18.1
Basic earnings per share – pence 34.4 18.4 21.5
Return on capital employed before specific itemsa– % (unaudited) 17.6 18.1 18.2
Interest cover before net pension finance incomeb– times (unaudited) 4.2 3.6 3.4
2007
£m
2006
£m
2005
£m
Expenditure on research and development
Research and development expense 378 326 257
Amortisation of internally developed computer software 314 161 95
Total 692 487 352
2007
£m
2006
£m
2005
£m
Expenditure on property, plant and equipment and software
Plant and equipment
Transmission equipment 1,209 1,429 1,488
Exchange equipment 118 80 143
Other network equipment 854 727 648
Computers and office equipment 149 138 187
Motor vehicles and other 877 715 474
Land and buildings 61 68 64
3,268 3,157 3,004
(Decrease) increase in engineering stores (21) (15) 7
Total expenditure on property, plant and equipment 3,247 3,142 3,011
Decrease (increase) in payables 51 (202) 45
Cash outflow on purchase of property, plant and equipment and software 3,298 2,940 3,056
aThe ratio is based on profit before taxation and net finance expense to average capital employed. Capital employed is represented by total assets less current liabilities (excluding corporation tax,
current borrowings, derivative financial liabilities and finance lease creditors) less deferred tax assets, cash and cash equivalents, derivative financial assets and investments.
bThe number of times net finance expense before net pension finance income is covered by total operating profit. Interest cover including net pension finance income is 11.6 times (2006: 5.6 times,
2005: 4.5 times).
Financial statements
Financial statistics
Years ended 31 March