| Income statement1,2,3,4 | 2008 £m |
2007 £m |
2006 £m |
2005 £m |
2004 £m |
|---|---|---|---|---|---|
| Sales including Group's share of equity accounted investments | |||||
| Electronics, Intelligence & Support | 4,459 | 3,916 | 4,007 | 3,697 | 3,063 |
| Land & Armaments | 6,407 | 3,538 | 2,115 | 1,270 | 482 |
| Programmes & Support | 4,638 | 5,327 | 4,615 | 4,660 | – |
| International | 3,333 | 3,359 | 3,428 | 3,138 | – |
| Programmes | – | – | – | – | 2,219 |
| Customer Solutions & Support | – | – | – | – | 2,856 |
| Integrated Systems & Partnerships | – | – | – | – | 2,022 |
| HQ & Other Businesses | 235 | 243 | 295 | 471 | 464 |
| Intra-operating group sales | (529) | (673) | (695) | (655) | (417) |
| 18,543 | 15,710 | 13,765 | 12,581 | 10,689 | |
| Underlying EBITA6 (restated) | |||||
| Electronics, Intelligence & Support | 506 | 437 | 429 | 324 | 256 |
| Land & Armaments | 566 | 324 | 168 | 86 | (8) |
| Programmes & Support | 491 | 456 | 331 | 261 | – |
| International | 435 | 435 | 412 | 403 | – |
| Programmes | – | – | – | – | 10 |
| Customer Solutions & Support | – | – | – | – | 497 |
| Integrated Systems & Partnerships | – | – | – | – | 95 |
| HQ & Other Businesses | (101) | (203) | (146) | (117) | (50) |
| 1,897 | 1,449 | 1,194 | 957 | 800 | |
| Profit/(loss) on disposal of businesses | 238 | 40 | 13 | (4) | – |
| Uplift on acquired inventories | – | (12) | – | (44) | – |
| EBITA5 | 2,135 | 1,477 | 1,207 | 909 | 800 |
| Amortisation and impairment of intangible assets | (424) | (297) | (139) | (122) | (110) |
| Finance costs including share of equity accounted investments | 697 | 93 | (174) | (196) | (132) |
| Profit before taxation | 2,408 | 1,273 | 894 | 591 | 558 |
| Taxation expense including share of equity accounted investments | (640) | (373) | (248) | (147) | (219) |
| Profit for the year from continuing operations | 1,768 | 900 | 646 | 444 | 339 |
| Profit/(loss) for the year from discontinued operations | – | 22 | 993 | 111 | (336) |
| Profit for the year | 1,768 | 922 | 1,639 | 555 | 3 |
| Balance sheet | |||||
| Intangible assets | 12,306 | 9,559 | 7,595 | 8,217 | 6,115 |
| Property, plant and equipment, and investment property | 2,558 | 1,887 | 1,869 | 1,922 | 1,901 |
| Non-current investments | 1,040 | 787 | 678 | 1,730 | 1,535 |
| Inventories | 926 | 701 | 395 | 485 | 498 |
| Payables (excluding cash on customers' account) less receivables | (5,866) | (5,373) | (4,298) | (4,596) | (3,891) |
| Other financial assets and liabilities | 240 | 52 | 6 | (7) | – |
| Retirement benefit obligations | (3,365) | (1,629) | (2,499) | (4,101) | (3,210) |
| Provisions | (845) | (809) | (695) | (718) | (491) |
| Net tax | 256 | 63 | 648 | 1,012 | 876 |
| Net cash/(debt) | 39 | 700 | 435 | (1,277) | (668) |
| Disposal groups held for sale | – | 64 | – | 137 | – |
| Minority interests | (55) | (36) | (17) | (16) | (10) |
| Total equity attributable to equity holders of the parent | 7,234 | 5,966 | 4,117 | 2,788 | 2,655 |
| Movement in net cash/(debt) as defined by the Group | |||||
| Cash flow from operating activities | 2,009 | 2,162 | 778 | 2,099 | 2,350 |
| Net capital expenditure7 | (503) | (262) | (141) | (250) | (285) |
| Dividends from equity accounted investments | 89 | 78 | 145 | 88 | 69 |
| Operating business cash flow | 1,595 | 1,978 | 782 | 1,937 | 2,134 |
| Acquisitions and disposals | (1,038) | (2,112) | 1,330 | (1,836) | (630) |
| Finance costs | (98) | (65) | (207) | (152) | (179) |
| Tax and dividends | (750) | (509) | (431) | (342) | (312) |
| Other movements8 | 5 | 57 | (11) | (52) | 9 |
| (Purchase)/issue of equity shares | (27) | 603 | (71) | 373 | – |
| Preference share conversion | – | 245 | 6 | – | – |
| Exchange movements | (374) | 36 | 323 | (219) | 129 |
| Net (decrease)/increase in net funds | (687) | 233 | 1,721 | (291) | 1,151 |
| Movement in cash on customers' account | 26 | 32 | (9) | (35) | (13) |
| Movement in net cash/(debt) | (661) | 265 | 1,712 | (326) | 1,138 |
| Opening net cash/(debt) | 700 | 435 | (1,277) | (668) | (870) |
| Impact of IFRS adoption | – | – | – | (283) | (936) |
| Closing net cash/(debt) | 39 | 700 | 435 | (1,277) | (668) |
| Other information | 2008 | 2007 | 2006 | 2005 | 2004 |
|---|---|---|---|---|---|
| Basic earnings/(loss) per share – total (pence) | 49.6 | 26.6 | 50.7 | 17.4 | (0.6) |
| Basic earnings per share – underlying9 (pence) | 37.1 | 30.1 | 23.5 | 18.5 | 13.6 |
| Dividend per ordinary share (pence) | 14.5 | 12.8 | 11.3 | 10.3 | 9.5 |
| Number of employees, excluding share of employees of equity accounted investments, at year end |
94,000 |
88,000 |
79,000 |
80,000 |
73,300 |
| Capital expenditure including leased assets (£m) | 552 | 341 | 538 | 347 | 359 |
| Order book including the Group's share of equity accounted investments(£bn) | 46.5 | 38.6 | 31.7 | 30.8 | 29.5 |
1. For the year ended 31 December 2004, the operating group information presented under IFRS has not been restated to reflect the changes made to the operating groups in 2005, 2006 and 2007.
2. For the years ended 31 December 2004 to 2006, Airbus SAS is presented as a discontinued operation under IFRS.
3. For the years ended 31 December 2004 and 2005, the Avionics business is presented as a discontinued operation under IFRS.
4. For the years ended 31 December 2005 and 2006, the operating group information presented under IFRS has been restated to reflect changes made to the Group's organisational structure.
5. Earnings before amortisation and impairment of intangible assets, finance costs and taxation expense.
6. EBITA excluding profit/(loss) on disposal of businesses and uplift on acquired inventories. Restated to exclude profit/(loss) on disposal of businesses.
7. Includes expenditure on property, plant and equipment, investment property, intangible assets and other investments.
8. Other movements include cash flows from matured derivative financial instruments, cash flows from movement in cash collateral and other non-cash movements.
9. Earnings excluding amortisation and impairment of intangible assets, non-cash finance movements on pensions and financial derivatives, profit/(loss) on disposal of businesses and uplift on acquired inventories. Restated to exclude profit/(loss) on disposal of businesses.
