| Profit and loss account | 2004 £m |
2003 £m |
2002 £m |
2001 £m |
2000 £m |
|---|---|---|---|---|---|
| Group turnover | 5,939 | 5,645 | 5,788 | 6,328 | 5,864 |
| Operating profit before exceptional items and net research and development | 602 | 558 | 540 | 822 | 806 |
| Operating exceptional items | — | (54) | (75) | (230) | (145) |
| Research and development (net)* | (282) | (281) | (297) | (358) | (371) |
| Group operating profit | 320 | 223 | 168 | 234 | 290 |
| Share of operating profit of joint ventures | 49 | 52 | 66 | 82 | 76 |
| Non-operating and exceptional items | 7 | (5) | (22) | (5) | (77) |
| Net interest payable | (70) | (90) | (107) | (119) | (123) |
| Profit on ordinary activities before taxation | 306 | 180 | 105 | 192 | 166 |
| Taxation | (101) | (64) | (52) | (86) | (87) |
| Profit on ordinary activities after taxation | 205 | 116 | 53 | 106 | 79 |
| Equity minority interests in subsidiary undertakings | (1) | — | — | — | — |
| Profit attributable to ordinary shareholders | 204 | 116 | 53 | 106 | 79 |
| Dividends | — | (53) | (133) | (132) | (126) |
| Transferred to/(from) reserves | 204 | 63 | (80) | (26) | (47) |
| * Research and development (gross) | (601) | (619) | (590) | (636) | (604) |
| Earnings per ordinary share: | |||||
| Underlying | 14.50p | 12.20p | 11.10p | 20.20p | 19.38p |
| Basic | 12.07p | 7.04p | 3.29p | 6.67p | 5.07p |
| Payments to shareholders per ordinary share | 8.18p1 | 8.18p1 | 8.18p | 8.18p | 8.00p |
| 1 Including B Shares. | |||||
| Balance sheet | 2004 £m |
2003 £m |
2002 £m |
2001 £m |
2000 £m |
| Fixed assets | 2,793 | 2,878 | 3,007 | 2,783 | 2,846 |
| Current assets | 4,979 | 4,536 | 4,289 | 4,551 | 4,000 |
| 7,772 | 7,414 | 7,296 | 7,334 | 6,846 | |
| Liabilities and provisions | (5,465) | (5,271) | (5,262) | (5,270) | (4,815) |
| 2,307 | 2,143 | 2,034 | 2,064 | 2,031 | |
| Share capital | 346 | 333 | 323 | 320 | 314 |
| Reserves | 1,957 | 1,807 | 1,709 | 1,742 | 1,716 |
| Equity shareholders’ funds | 2,303 | 2,140 | 2,032 | 2,062 | 2,030 |
| Minority interests in subsidiary undertakings | 4 | 3 | 2 | 2 | 1 |
| 2,307 | 2,143 | 2,034 | 2,064 | 2,031 | |
| Balance sheets for 2000 to 2003 have been restated for UITF 38 (see note 1 ). | |||||
| Cash flow | |||||
| Cash inflow from operating activities | 640 | 673 | 611 | 418 | 479 |
| Interest, dividends and taxation | (150) | (176) | (222) | (147) | (162) |
| Capital expenditure and financial investment | (219) | (198) | (381) | (181) | (253) |
| Acquisitions and disposals | 14 | (16) | (20) | 79 | (53) |
| 285 | 283 | (12) | 169 | 11 | |
| Management of liquid resources | (558) | (90) | 217 | (162) | 324 |
| Financing | 274 | -17 | -81 | 113 | -360 |
| Increase/(decrease) in cash in the year | 1 | 176 | 124 | 120 | -25 |
| Movement in net funds | 243 | 272 | -94 | 189 | 4 |
| Cash flows for 2000 to 2003 have been restated for UITF 38 (see note 1 ). | |||||