directors report and accounts 2006 - Five year summary
Annual Report
and Accounts 2006
| 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 taxes | 25,189 | 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 taxation | 2,764 | 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 brands | 41 | 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 unadjusted | 92.08 | 84.34 | 133.76 | 26.93 | 50.91 |
| - diluted unadjusted | 91.33 | 83.66 | 131.45 | 26.69 | 50.10 |
| - diluted adjusted | 98.12 | 89.34 | 76.62 | 69.21 | 66.54 |
| Dividends declared per share | 55.90 | 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 assets | 12,385 | 13,147 | 12,095 | ||
| Fixed assets | 11,313 | 9,563 | |||
| Current assets | 5,391 | 5,904 | 5,680 | 7,544 | 6,616 |
| Total assets | 17,776 | 19,051 | 17,775 | 18,857 | 16,179 |
| Shareholder's funds | 6,461 | 6,630 | 5,919 | 4,361 | 5,078 |
| Minority interests | 227 | 247 | 198 | 225 | 267 |
| Total equity | 6,688 | 6,877 | 6,117 | 4,586 | 5,345 |
| Non-current liabilities | 6,635 | 6,338 | 7,218 | ||
| Current liabilities | 4,453 | 5,836 | 4,440 | ||
| Borrowings | 7,610 | 5,314 | |||
| Provisions and other creditors | 6,661 | 5,520 | |||
| Total liabilities | 11,088 | 12,174 | 11,658 | 14,271 | 10,834 |
| Total equity and liabilities | 17,776 | 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 2004 | 4,361 | (493) | 585 | (66) | 4,387 | ||
| Shareholders funds 31 December 2004 | 5,220 | (237) | 473 | 617 | (154) | 5,919 | |
| Year ended 31 December 2004 | |||||||
| Profit from operations | 1,794 | 59 | 454 | 1,323 | 130 | 3,760 | |
| Profit for the year (before minority interests) | 1,224 | 29 | 491 | 1,132 | 88 | 2,964 | |
| Earnings per share | |||||||
| Basic | 55.20p | 133.76p | |||||
| Adjusted diluted | 75.83p | 76.62p |
- All cumulative actuarial gains and losses were recognised at 1 January 2004.
- Under UK GAAP, goodwill was amortised over its useful economic life, while from 1 January 2004 goodwill is not amortised under IFRS.
- 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.
- 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.
- 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.