FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of August 2005
(3 August 2005)
BRITISH SKY BROADCASTING GROUP PLC
(Name of Registrant)
Grant Way, Isleworth, Middlesex, TW7 5QD England
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): Not Applicable
This report is incorporated by reference in the prospectus contained in the
Registration Statements on Form F-3 (SEC File No.333-08246) and Form F-3/S-3
(SEC File No.333-106837) filed by the Registrant under the Securities Act
of 1933.
EXHIBIT INDEX
Exhibit
EXHIBIT NO.1 Excerpt of Press release of British Sky Broadcasting Group plc
announcing Final Results released on 3 August 2005
Consolidated Profit and Loss Account for the year ended 30 June 2005
Before Goodwill Before
goodwill and and goodwill and Goodwill and
exceptional exceptional 2005 exceptional exceptional 2005
items items Total items items Total
GBPm GBPm GBPm GBPm GBPm GBPm
Notes (audited) (audited) (audited) (audited) (audited) (audited)
Turnover: Group and share of joint
ventures' turnover 4,115 - 4,115 3,738 - 3,738
Less: share of joint ventures' turnover (67) - (67) (82) - (82)
Group turnover 1 4,048 - 4,048 3,656 - 3,656
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Operating expenses, net 2, 4 (3,243) (103) (3,346) (3,056) (119) (3,175)
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Operating profit 805 (103) 702 600 (119) 481
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Share of joint ventures' and associates'
operating results 3 14 - 14 (5) 10 5
Loss on disposal of investments in joint
ventures 4 - (23) (23) - - -
Profit on disposal of fixed asset
investments 4 - - - - 51 51
Amounts written back to fixed asset
investments, net 4 - - - - 24 24
Profit on ordinary activities before
interest and taxation 819 (126) 693 595 (34) 561
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Interest receivable and similar income 5 30 - 30 10 - 10
Interest payable and similar charges 5 (92) - (92) (91) - (91)
Profit on ordinary activities before
taxation 757 (126) 631 514 (34) 480
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Tax charge on profit on ordinary activities 6 (202) (4) (206) (158) - (158)
Profit on ordinary activities after taxation 555 (130) 425 356 (34) 322
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Equity dividends 7 (170) (116)
Retained profit for the financial year 255 206
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Earnings per share - basic 22.2p 16.6p
Earnings per share - diluted 22.2p 16.6p
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There were no recognised gains or losses in either year other than those
included within the profit and loss account.
Details of movements on reserves are shown in note 15.
The accompanying notes are an integral part of this consolidated profit and loss
account.
All results relate to continuing operations.
Consolidated Profit and Loss Account for the three months ended 30 June 2005
Before Three months Before Three months
goodwill ended 30 goodwill Goodwill ended 30
and Goodwill and June and and June
exceptional exceptional 2005 exceptional exceptional 2004
items items Total items items Total
GBPm GBPm GBPm GBPm GBPm GBPm
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Group and share of joint ventures' turnover 1,103 - 1,103 979 - 979
Less: share of joint ventures' turnover (15) - (15) (20) - (20)
Group turnover 1,088 - 1,088 959 - 959
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Operating expenses, net (857) (18) (875) (797) (32) (829)
Operating profit 231 (18) 213 162 (32) 130
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Share of joint ventures' and associates' operating
results 2 - 2 (1) 10 9
Profit on ordinary activities before interest and
taxation 233 (18) 215 161 (22) 139
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Interest receivable and similar income 8 - 8 5 - 5
Interest payable and similar charges (23) - (23) (23) - (23)
Profit on ordinary activities before taxation 218 (18) 200 143 (22) 121
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Tax charge on profit on ordinary activities (44) (4) (48) (42) - (42)
Profit on ordinary activities after taxation 174 (22) 152 101 (22) 79
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Equity dividends (93) (63)
Retained profit for the period 59 16
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Earnings per share - basic 8.0p 4.1p
Earnings per share - diluted 8.0p 4.1p
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Consolidated Balance Sheet at 30 June 2005
2005 2004
GBPm GBPm
Notes (audited) (audited)
Fixed assets
Intangible fixed assets 8 301 417
Tangible fixed assets 9 526 376
Investments:
Investments in associates 1 1
Investments in joint
ventures : Share of gross assets 47 72
: Share of gross liabilities (26) (45)
: Transfer to creditors 1 5
Total investments in joint ventures and associates 23 33
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Other fixed asset investments 2 2
Total investments 25 35
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852 828
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Current assets
Stocks 10 340 375
Debtors: Amounts falling due within one year
- deferred tax asset 11 43 49
- other 11 299 321
342 370
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Debtors: Amounts falling due after more than one year
- deferred tax asset 11 57 102
- other 11 32 42
89 144
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Cash and liquid resources:
- current asset investments 54 173
- cash at bank and in hand 643 474
697 647
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1,468 1,536
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Creditors: Amounts falling due within one year 12 (1,240) (1,170)
Net current assets 228 366
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Total assets less current liabilities 1,080 1,194
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Creditors: Amounts falling due after more than one
year
- long-term borrowings 13 (1,076) (1,076)
- accruals and deferred income 13 (25) (28)
(1,101) (1,104)
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Provisions for liabilities and charges 14 (13) -
(34) 90
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Capital and reserves - equity
Called-up share capital 15 934 971
Share premium 15 1,437 1,437
Employee Share Ownership Plan ("ESOP") reserve 15 (32) (30)
Merger reserve 15 149 222
Special reserve 15 14 14
Capital redemption reserve 15 37 -
Profit and loss account 15 (2,573) (2,524)
(34) 90
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The accompanying notes are an integral part of this consolidated balance sheet.
Consolidated Cash Flow Statement for the year ended 30 June 2005
2005 2004
GBPm GBPm
Notes (audited) (audited)
Net cash inflow from operating activities 16a 978 882
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Dividends received from joint ventures 12 4
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Returns on investments and servicing of finance
Interest received and similar income 28 7
Interest paid and similar charges (91) (89)
Net cash outflow from returns on investments and servicing of finance (63) (82)
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Taxation
UK corporation tax paid (101) (55)
Consortium relief paid (2) (3)
Net cash outflow from taxation (103) (58)
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Capital expenditure and financial investment
Payments to acquire tangible fixed assets (230) (132)
Receipts from sales of fixed asset investments 1 116
Net cash outflow from capital expenditure and financial investment (229) (16)
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Acquisitions and disposals
Funding to joint ventures and associates (4) (5)
Repayments of funding from joint ventures and associates 8 6
Receipts from sales of investments in joint ventures 14 -
Net cash inflow from acquisitions and disposals 18 1
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Equity dividends paid (138) (53)
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Net cash inflow before management of liquid resources and financing 475 678
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Management of liquid resources 16c 164 (511)
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Financing
Proceeds from issue of Ordinary Shares - 20
Proceeds from issue of shares held in ESOP 4 -
Purchase of own shares for ESOP (14) (22)
Share buy-back (416) -
Capital element of finance lease payments 16b - (1)
Net decrease in debt due after more than one year 16b - (75)
Net cash outflow from financing (426) (78)
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Increase in cash 16c 213 89
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The accompanying notes are an integral part of this consolidated cash flow
statement.
1. Turnover
2005 2004
GBPm GBPm
(audited) (audited)
Direct-to-home subscribers 2.968 2,660
Cable subscribers 219 215
Advertising 329 312
Sky Bet 261 191
Sky Active 92 116
Other 179 162
4,048 3,656
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2. Operating expenses, net
Before Goodwill Before Goodwill
goodwill and and goodwill and and
exceptional exceptional 2005 exceptional exceptional 2004
items items Total items items Total
GBPm GBPm GBPm GBPm GBPm GBPm
(audited) (audited) (audited) (audited) (audited) (audited)
Programming (i) 1,636 - 1,636 1,711 - 1,711
Transmission and related functions
(i) 171 - 171 146 - 146
Marketing 515 - 515 396 - 396
Subscriber management 396 - 396 371 - 371
Administration (ii) 289 103 392 257 119 376
Betting 236 - 236 175 - 175
3,243 103 3,346 3,056 119 3,175
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(i) The amounts shown are net of GBP11 million (2004: GBP11 million) receivable
from the disposal of programming rights not acquired for use by the Group, and
GBP28 million (2004: GBP28 million) in respect of the provision to third party
broadcasters of spare transponder capacity.
(ii) Administration costs include a goodwill amortisation charge of GBP116
million (2004: GBP119 million), net of an exceptional credit of GBP13 million
(2004: nil) (see note 4).
3. Share of joint ventures' and associates' operating results
Goodwill
In the prior year, a credit of GBP11 million arose on the write back of negative
goodwill which had arisen on the acquisition of an additional 16.7% stake in
Attheraces Holdings Limited in April 2004, taking the Group's stake in
Attheraces to 50%. The remaining net GBP1 million charge relates to amortisation
of goodwill arising on the acquisition of certain joint ventures and associates.
4. Exceptional items
Credit
(charge) Taxation Credit Taxation
before (charge) 2005 before (charge) 2004
taxation credit Total taxation credit Total
GBPm GBPm GBPm GBPm GBPm GBPm
(audited) (audited) (audited) (audited)(audited) (audited)
Settlement of ITV Digital programming debtors (i) 13 (4) 9 -
- -
Exceptional operating items 13 (4) 9 -
- -
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Loss on disposal of investment in joint ventures (ii) (23) - (23) - - -
Profit on disposal of fixed asset investments (iii) - - - 51 - 51
Amounts written back to fixed asset investments, net (iv) - - - 24 - 24
Exceptional non-operating items (23) - (23) 75 - 75
Total exceptional items (10) (4) (14) 75 - 75
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2005
(i) Settlement of ITV Digital programming debtors
In July 2005, the Group received GBP13 million from the liquidators of ITV
Digital as a full and final settlement in respect of amounts owed to the Group.
The receipt is recorded as an exceptional item within operating profit due to
the distortion that its inclusion within operating expenses would have on the
individual operating expenses line item to which it was attributed.
(ii) Loss on disposal of investments in joint ventures
In November 2004, the Group sold its 49.5% investment in Granada Sky
Broadcasting Limited ("GSB") for GBP14 million in cash, realising a loss on
disposal of GBP23 million. This included the write back of GBP32 million of
goodwill which had previously been written off to reserves, as permitted prior
to the implementation of Financial Reporting Standard ("FRS") 10, "Goodwill and
Intangible Assets" ("FRS 10"). The loss on disposal is a non-operating
exceptional item as defined by FRS 3 "Reporting Financial Performance" ("FRS 3")
and is therefore recorded as an exceptional item below operating profit.
2004
(iii) Profit on disposal of fixed asset investments
In March 2004, the Group sold its 20% shareholding in QVC (UK), operator of QVC
- The Shopping Channel, for GBP49 million in cash, realising a profit on
disposal of GBP49 million. The profit on disposal is a non-operating exceptional
item as defined by FRS 3 and is therefore recorded as an exceptional item below
operating profit.
In October 2003, the Group disposed of its listed investment in Manchester
United plc, realising a profit on disposal of GBP2 million. The profit on
disposal is a non-operating exceptional item as defined by FRS 3 and is
therefore recorded as an exceptional item below operating profit.
(iv) Amounts written back to fixed asset investments, net
The Group reduced its provision against its minority equity investments in
football clubs by GBP33 million, due to the disposal of its investment in
Manchester United plc in October 2003, for GBP62 million in cash. The Group also
increased its provision against its remaining minority equity investments in
football clubs by GBP9 million. The reduction of GBP33 million in the provision
is recorded as an exceptional item below operating profit as it relates directly
to the disposal of the investment as detailed above. The increase in the
remaining provision is recorded as an exceptional item below operating profit
due to the distortion that its inclusion within operating expenses would have on
the individual operating expenses line to which it was attributed.
5. Interest
(a) Interest receivable and similar income
2005 2004
GBPm GBPm
(audited) (audited)
Group
Interest receivable on cash and liquid resources 29 8
Other interest receivable and similar income - 1
29 9
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Joint ventures and associates
Share of joint ventures' and associates' interest receivable 1 1
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Total interest receivable and similar income 30 10
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(b) Interest payable and similar charges
2005 2004
GBPm GBPm
(audited) (audited)
Group
On bank loans, overdrafts and other loans repayable within five years, not by instalments:
- GBP1 billion revolving credit facility ("RCF") (i) 2 -
- GBP600 million RCF (i) 4 6
- GBP200 million RCF (ii) - 2
US$650 million of 8.200% Guaranteed Notes, repayable in 2009 33 30
GBP100 million of 7.750% Guaranteed Notes, repayable in 2009 8 8
US$600 million of 6.875% Guaranteed Notes, repayable in 2009 30 30
US$300 million of 7.300% Guaranteed Notes, repayable in 2006 14 14
Finance lease interest 1 -
92 90
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Joint ventures and associates
Share of joint ventures' and associates' interest payable - 1
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Total interest payable and similar charges 92 91
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(i) In November 2004, the Group entered into a GBP1 billion RCF. This facility
was used to cancel an existing GBP600 million RCF, and is available for general
corporate purposes, but was undrawn at 30 June 2005. The GBP1 billion RCF has a
maturity date of July 2010. The GBP2 million charge for the year (2004: nil)
represents the commitment fee to 30 June 2005.
(ii) The GBP200 million RCF expired without being renewed on 29 June 2004.
6. Taxation
Tax
charge
Tax charge (credit)
(credit) on
on profit profit
before before
exceptional Exceptional 2005 exceptional Exceptional 2004
items tax charge Total items tax charge Total
GBPm GBPm GBPm GBPm GBPm GBPm
(audited) (audited)(audited) (audited) (audited) (audited)
Current tax
UK corporation tax 159 4 163 127 - 127
Adjustment in respect of prior years (8) - (8) (8) - (8)
Total current tax charge 151 4 155 119 - 119
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Deferred tax
Origination and reversal of timing differences 68 - 68 34 - 34
(Decrease) increase in estimate of recoverable (17) - (17) 5 - 5
deferred tax asset in respect of prior years
Total deferred tax charge 51 - 51 39 - 39
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Share of joint ventures' and associates' tax - - - - - -
charge
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202 4 206 158 - 158
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All taxation relates to UK corporation tax.
7. Equity dividends
2005 2004
(audited) (audited)
GBPm GBPm
Interim dividend paid of 4.00p (2004: 2.75p) per Ordinary Share 77 53
Final dividend proposed of 5.00p (2004: 3.25p) per Ordinary Share 93 63
170 116
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The ESOP has waived its rights to dividends.
8. Intangible fixed assets
The movement in the year was as follows:
Goodwill
GBPm
(audited)
Net book value at 1 July 2004 417
Additions -
Amortisation charge (116)
Net book value at 30 June 2005 301
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Goodwill of GBP272 million, GBP543 million and GBP5 million, arising on the
acquisitions of Sports Internet Group ("SIG"), British Interactive Broadcasting
("BiB") and WAPTV respectively, is being amortised over periods of seven years
on a straight-line basis.
In accordance with FRS 11 "Impairment of fixed assets and goodwill", impairment
reviews were performed on the carrying values of BiB and SIG goodwill balances
at the end of the first full financial year after acquisition, at 30 June 2002,
which did not indicate impairment. Consistent with Group strategy, the business
plans on which these reviews were based reflect significant projected increases
in betting and other interactive revenues over the subsequent five years. The
Group continues to monitor the performance of these businesses and is satisfied
that no impairment of goodwill has occurred.
9. Tangible fixed assets
The movement in the year was as follows:
Freehold Short Equipment, Assets in
land leasehold fixtures course of
and buildings improvements and fittings construction Total
GBPm GBPm GBPm GBPm GBPm
(audited) (audited) (audited) (audited) (audited)
Net book value as at 1 July 2004 34 24 217 101 376
Additions 25 - 66 153 244
Disposals - - (2) - (2)
Transfers - (8) 8 - -
Depreciation (2) (5) (85) - (92)
Net book value as at 30 June 2005 57 11 204 254 526
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10. Stocks
2005 2004
GBPm GBPm
(audited) (audited)
Television programme rights 310 322
Digiboxes and related equipment 28 49
Raw materials and consumables 2 2
Other goods held for resale - 2
340 375
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At least 86% (2004: 87%) of the existing television programme rights at 30 June
2005 will be amortised within one year.
11. Debtors
2005 2004
GBPm GBPm
(audited) (audited)
Amounts falling due within one year
Trade debtors 134 165
Amounts owed by joint ventures and associates 6 8
Amounts owed by other related parties 1 2
Other debtors 4 3
Prepaid programme rights 47 35
Prepaid transponder rentals 15 15
Deferred tax asset 43 49
Other prepayments and accrued income 92 93
342 370
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Amounts falling due after more than one year
Prepaid programme rights 4 6
Prepaid transponder rentals 23 30
Deferred tax asset 57 102
Other prepayments and accrued income 5 6
89 144
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12. Creditors: Amounts falling due within one year
2005 2004
GBPm GBPm
(audited) (audited)
Trade creditors (i) 345 390
Amounts due to joint ventures and associates 3 8
Amounts due to related parties 34 40
UK corporation tax 100 48
VAT 101 92
Social security and PAYE 10 8
Proposed dividend 93 63
Defined contribution pension scheme creditor 1 1
Other creditors 42 60
Accruals and deferred income 511 460
1,240 1,170
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(i) Included within trade creditors are GBP187 million (2004: GBP250 million) of
US dollar-denominated programme creditors. Approximately 80% (2004: 80%) of
these were covered by forward rate currency contracts.
13. Creditors: Amounts falling due after more than one year
2005 2004
GBPm GBPm
(audited) (audited)
Long-term borrowings
US$650 million of 8.200% Guaranteed Notes, repayable in 2009 413 413
GBP100 million of 7.750% Guaranteed Notes, repayable in 2009 100 100
US$600 million of 6.875% Guaranteed Notes, repayable in 2009 367 367
US$300 million of 7.300% Guaranteed Notes, repayable in 2006 189 189
Obligations under finance leases 7 7
1,076 1,076
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Other
Accruals and deferred income 25 28
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1,101 1,104
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Undrawn RCFs
In November 2004, the Group entered into a GBP1 billion RCF. This
facility was used to cancel an existing GBP600 million RCF and is available for
general corporate purposes. The GBP1 billion facility has a maturity date of
July 2010, and interest accrues at a margin of between 0.45% and 0.55% above
LIBOR, dependent on the Group's leverage ratio of net debt to earnings before
interest, taxes, depreciation and amortisation ("EBITDA") (as defined in the
loan agreement). At the current ratio of Net Debt: EBITDA, the margin would be
0.45% above LIBOR if the Group were to make a drawing on the facility.
Both the bank facilities and the publicly-traded guaranteed notes have been
issued by the Company and guaranteed by both British Sky Broadcasting Limited
and Sky Subscribers Services Limited. Additionally, the GBP1 billion RCF has
been guaranteed by BSkyB Investments Limited.
14. Provisions for liabilities and charges
Provision for Other Total
redundancy expenses provisions provisions
GBPm GBPm GBPm
(audited) (audited) (audited)
At 1 July 2004 - - -
Provided in the year 11 2 13
At 30 June 2005 11 2 13
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15. Reconciliation of movement in shareholders' funds
Movement in shareholders' funds includes all movements in reserves.
Total
equity
Capital Profit shareholders'
Share Share ESOP Merger Special redemption and loss funds
capital premium reserve reserve reserve reserve account (deficit)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
(audited) (audited) (audited) (audited) (audited) (audited) (audited) (audited)
At 1 July 2004 971 1,437 (30) 222 14 - (2,524) 90
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ESOP shares utilised - - 12 - - - 7 19
ESOP shares purchased - - (14) - - - - (14)
Profit for the financial year - - - - - - 425 425
Dividends - - - - - - (170) (170)
Transfer from merger reserve - - - (73) - - 73 -
Write back of goodwill on
disposal - - - - - - 32 32
Share buy-back (37) - - - - 37 (416) (416)
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At 30 June 2005 934 1,437 (32) 149 14 37 (2,573) (34)
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Share buy-back
On 12 November 2004, the Company's shareholders approved a
resolution at the Annual General Meeting for the Company to purchase up to 97
million Ordinary Shares. During the financial year, the Company purchased, and
subsequently cancelled, 74 million Ordinary Shares at an average price of
GBP5.60 per share, with a nominal value of GBP37 million, for a consideration of
GBP416 million. Consideration included stamp duty and commission of GBP3
million. This represents 4% of called-up share capital at the beginning of the
financial year.
Goodwill
In accordance with FRS 10, the Company has included the write off of
GBP32 million of unamortised goodwill in the calculation of the loss on disposal
of GSB, the effect of which has been included in the profit for the financial
year. The goodwill arose on the purchase of GSB and had previously been written
off to the profit and loss reserve as permitted prior to FRS 10. Accordingly, an
adjustment has been made to write back the GBP32 million charge to the profit
and loss reserve.
At 30 June 2005, the cumulative goodwill written off directly to reserves by the
Group amounted to GBP492 million (2004: GBP524 million).
Share option schemes
During the period, the Company issued shares with a market
value of GBP1 million (2004: GBP26 million) in respect of the exercise of
options awarded under various share option schemes.
At 30 June 2005, the Group's ESOP held 5,609,212 Ordinary Shares in the Company
at an average value of GBP5.78 per share. The 1,808,303 shares utilised during
the period relate to the exercise of Long Term Incentive Plan ("LTIP"), Equity
Bonus Plan ("EBP"), Key Contributor Plan ("KCP"), Executive Share Option Scheme
and Sharesave Scheme awards.
16. Notes to consolidated cash flow statement
(a) Reconciliation of operating profit to operating cash flows
Before Before
goodwill Goodwill goodwill Goodwill
and and and and
exceptional exceptional 2005 exceptional exceptional 2004
items items Total items items Total
GBPm GBPm GBPm GBPm GBPm GBPm
(audited) (audited) (audited) (audited) (audited) (audited)
Operating profit 805 (103) 702 600 (119) 481
Depreciation 92 - 92 102 - 102
Amortisation of goodwill and other intangible
fixed assets - 116 116 - 119 119
Loss on disposal of fixed assets 2 - 2 1 - 1
Decrease (increase) in stock 35 - 35 (5) - (5)
Decrease in debtors 34 - 34 17 - 17
(Decrease) increase in creditors (14) - (14) 170 - 170
Increase (decrease) in provision 12 - 12 (3) - (3)
Foreign exchange movement (1) - (1) - - -
Net cash inflow from operating activities 965 13 978 882 - 882
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(b) Analysis of changes in net debt
At At
1 July 30 June
2004 Cash flow Exchange 2005
GBPm GBPm GBPm GBPm
(audited) (audited) (audited) (audited)
Overnight deposits 73 172 - 245
Other cash 63 41 - 104
Cash 136 213 - 349
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----------------------------------------------------------------------------------------------------------------------
Short-term deposits 338 (45) 1 294
Commercial paper 173 (119) - 54
Liquid resources 511 (164) 1 348
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----------------------------------------------------------------------------------------------------------------------
Cash and liquid resources 647 49 1 697
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
Debt due after more than one year (1,069) - - (1,069)
Capital element of finance leases (7) - - (7)
Total debt and capital element of finance
leases (1,076) - - (1,076)
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
Total net debt (429) 49 1 (379)
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(c) Reconciliation of net cash flow to movement in net debt
2005 2004
GBPm GBPm
(audited) (audited)
Increase in cash 213 89
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---------------------------------------------------------------------------------------------------------------------
(Decrease) increase in short-term deposits (45) 338
(Decrease) increase in commercial paper (119) 173
(Decrease) increase in liquid resources (164) 511
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Cash outflow resulting from decrease in debt and lease financing - 76
Foreign exchange movement 1 -
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Decrease in net debt 50 676
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Net debt at beginning of year (429) (1,105)
Net debt at end of year (379) (429)
---------------------------------------------------------------------------------------------------------------------
(d) Major non-cash transactions
2005
Corporate reorganisation
On 13 April 2005, the High Court approved a
reduction in the share capital of BSkyB Investments Limited, a 100% owned
subsidiary. This formed part of a corporate reorganisation, allowing the Company
access to additional distributable reserves.
Disposal of GSB
In accordance with FRS 10, the Group has included the write off
of GBP32 million of unamortised goodwill in the calculation of the loss on
disposal of GSB, the effect of which has been included in the profit for the
financial year. The goodwill arose on the purchase of GSB and had previously
been written off to the profit and loss reserve as permitted prior to FRS 10.
Accordingly, an adjustment has been made to write back the GBP32 million charge
to the profit and loss reserve.
2004
Share premium reduction
On 10 December 2003, the High Court approved a
reduction in the Company's share premium account of GBP1,120 million, as
approved by the Company's shareholders at the Annual General Meeting held on 14
November 2003. The reduction had the effect of eliminating the Company's deficit
on its profit and loss account as at 30 September 2003 of GBP1,106 million, and
creating a non-distributable special reserve of GBP14 million, which represents
the excess of the share premium reduction over the deficit.
WAPTV
On 30 September 2003, the Company issued 338,755 Ordinary Shares to
satisfy the remaining contingent consideration in respect of the acquisition of
the remaining 5% interest in WAPTV Limited which occurred in May 2001.
17. Basis of preparation
The Consolidated Profit and Loss Account presentation includes the Group's
results before goodwill and exceptional items in addition to results after
goodwill and exceptional items as this presentation provides an alternative
basis that may be used to assess the ongoing operating performance of the Group.
This financial information does not constitute statutory accounts for the
purpose of section 240 of the Companies Act 1985. The financial information for
the year ended 30 June 2005 has been extracted from the statutory accounts of
British Sky Broadcasting Group plc for the year ended 30 June 2005, which have
not yet been filed with the Registrar of Companies, but on which the auditors
gave an unqualified report, and which did not contain a statement under section
237 (2) or (3) of the Companies Act 1985, on 2 August 2005. The preliminary
announcement was approved by the Board of Directors on 2 August 2005.
The financial information for the three months ended 30 June 2005 and 30 June
2004 is unaudited.
The financial information for the year ended 30 June 2004 has been extracted
from the statutory accounts of British Sky Broadcasting Group plc for the year
ended 30 June 2004. The statutory accounts on which the auditors gave an
unqualified report and which did not contain a statement under section 237 (2)
or (3) of the Companies Act 1985, have been filed with the registrar of
Companies.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BRITISH SKY BROADCASTING GROUP PLC
Date: 3 August, 2005 By: /s/ Dave Gormley
Dave Gormley
Company Secretary