directors report and accounts 2006 - Five year summary

 
 

 Five year summary

 2006
IFRS
£m
2005
IFRS
restated
£m
2004
IFRS
restated
£m
2003
UK GAAP
£m
2002
UK GAAP
£m
For the years ended 31 December     
Income Statement     
Gross turnover including duty, excise and other taxes25,189 23,984 31,833 25,622 24,682
Revenue (after deducting duty, excise and other taxes)9,762 9,325 10,768 10,570 10,600
Profit from operations*2,622 2,420 3,760 1,852 2,303
Profit before taxation2,764 2,584 3,637 1,567 2,113
Profit for the year (before minority interest)2,048 1,894 2,964 788 1,295
* after     
- restructuring costs(216)(271)(206)(437) 
- investment costs written off  (50)  
- (losses) / gains on disposal of subsidiaries,     
joint ventures, non-current investments and brands41 72 1,427   
- goodwill amortisation   (405)(378)
 2006
IFRS
pence
2005
IFRS
restated
pence
2004
IFRS
restated
pence
2003
UK GAAP
pence
2002
UK GAAP
pence
Earnings per share     
- basic unadjusted92.08 84.34 133.76 26.93 50.91
- diluted unadjusted91.33 83.66 131.45 26.69 50.10
- diluted adjusted98.12 89.34 76.62 69.21 66.54
Dividends declared per share55.90 47.00 41.90 38.80 35.20
 2006
IFRS
pence
2005
IFRS
restated
pence
2004
IFRS
restated
pence
2003
UK GAAP
pence
2002
UK GAAP
pence
At 31 December     
Balance sheet     
Non-current assets12,385 13,147 12,095   
Fixed assets   11,313 9,563
Current assets5,391 5,904 5,680 7,544 6,616
Total assets17,776 19,051 17,775 18,857 16,179
Shareholder's funds6,461 6,630 5,919 4,361 5,078
Minority interests227 247 198 225 267
Total equity6,688 6,877 6,117 4,586 5,345
Non-current liabilities6,635 6,338 7,218   
Current liabilities4,453 5,836 4,440   
Borrowings   7,610 5,314
Provisions and other creditors   6,661 5,520
Total liabilities11,088 12,174 11,658 14,271 10,834
Total equity and liabilities17,776 19,051 17,775 18,857 16,179

The information above has been restated, where applicable, to reflect the adoption of IFRIC Interpretation 4 (note 10) and the amendment to IAS21 (note 4).

The information included in the five year summary for the years ended 31 December 2002 and 31 December 2003 is as published under UK GAAP and has not been restated to IFRS.

The main adjustments in changing to IFRS, including the amendment to IAS21, were as follows:

 UK GAAP
£m
Post-
retirement
benefits
(a)
£m
Goodwill
(b)
£m
Dividends
(c)
£m
Reallocations
(d)
£m
Other
(e)
£m
IFRS
£m
Shareholders funds 1 January 20044,361(493) 585 (66)4,387
Shareholders funds 31 December 20045,220(237)473617 (154)5,919
Year ended 31 December 2004       
Profit from operations1,79459454 1,3231303,760
Profit for the year (before minority interests)1,22429491 1,132882,964
Earnings per share       
Basic55.20p     133.76p
Adjusted diluted75.83p     76.62p
  1. All cumulative actuarial gains and losses were recognised at 1 January 2004.
  2. Under UK GAAP, goodwill was amortised over its useful economic life, while from 1 January 2004 goodwill is not amortised under IFRS.
  3. Under UK GAAP, the final dividend for the year was provided in the results for that year while under IFRS it is provided in the year that it is declared.
  4. In respect of the Reynolds American transaction in 2004, which combined the Group's US domestic business (B&W) with R.J. Reynolds:
    • a £918 million unrecognised gain, included in the statement of total recognised gains and losses in UK GAAP, is included in profit from operations under IFRS; and
    • a write-back of £216 million under UK GAAP for goodwill previously written off to reserves, is not required under IFRS, which results in an additional gain on the partial disposal of B&W.
    In addition, the gains and losses on the disposal of subsidiaries and fixed asset investments were shown below profit from operations under UK GAAP (£185 million).
  5. The other adjustments principally reflect:
    • provisions for deferred tax on the unremitted profit of associates and part of the unremitted profit of subsidiaries required under IFRS but not UK GAAP;
    • the application of IFRS to the results of associates; and
    • an additional gain on the partial disposal of B&W in 2004 of £128 million, as a result of the IFRS adjustments for B&W in respect of post-retirement benefits.

Also, as explained in note 24, IAS32 and IAS39, which deal with financial instruments, were applied from 1 January 2005 and consequently the figures for 2004, 2003 and 2002 do not reflect the impact of those standards.