EXHIBIT 7
Computation of Ratio of Earnings to Fixed Charges
For the five year period ended June 30, 2002
1998 | 1999 | 2000 | 2001 | 2002 | ||||||||||||||||
£m | £m | £m | £m | £m | ||||||||||||||||
U.K. GAAP Earnings | ||||||||||||||||||||
Profit (loss) on ordinary activities before taxation | 270.9 | (388.7 | ) | (262.7 | ) | (514.5 | ) | (1,276.2 | ) | |||||||||||
Adjustments: | ||||||||||||||||||||
Fixed charges | 56.6 | 58.9 | 94.3 | 125.4 | 171.3 | |||||||||||||||
Joint venture losses where debt not guaranteed | 16.5 | 58.4 | 129.6 | 283.6 | 79.6 | |||||||||||||||
Total earnings (loss) | 344.0 | (271.4 | ) | (38.8 | ) | (105.5 | ) | (1,025.3 | ) | |||||||||||
Fixed charges: | ||||||||||||||||||||
Interest payable on external financing and leases | 56.6 | 58.9 | 94.3 | 125.4 | 171.3 | |||||||||||||||
Total fixed charges | 56.6 | 58.9 | 94.3 | 125.4 | 171.3 | |||||||||||||||
Ratio of earnings to fixed charges | 6.1 | — | — | — | — | |||||||||||||||
U.S. GAAP Earnings | ||||||||||||||||||||
Profit (loss) on ordinary activities before taxation | 259.4 | 1.9 | (473.5 | ) | (659.6 | ) | (941.2 | ) | ||||||||||||
Adjustments: | ||||||||||||||||||||
Fixed charges | 47.3 | 58.0 | 92.5 | 124.6 | 172.8 | |||||||||||||||
Joint venture losses where debt not guaranteed | 16.5 | 58.4 | 129.6 | 283.6 | 66.1 | |||||||||||||||
Total earnings (loss) | 323.2 | 118.3 | (251.4 | ) | (251.4 | ) | (702.3 | ) | ||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest payable on external financing and leases | 56.6 | 58.9 | 94.3 | 125.4 | 171.3 | |||||||||||||||
Capitalized interest | (10.0 | ) | (0.9 | ) | (1.8 | ) | (0.8 | ) | 1.5 | |||||||||||
Imputed interest | 0.7 | — | — | — | — | |||||||||||||||
Total fixed charges | 47.3 | 58.0 | 92.5 | 124.6 | 172.8 | |||||||||||||||
Ratio of earnings to fixed charges | 6.8 | 2.0 | — | — | — |
(1) | After exceptional items, under U.K. GAAP, for the year ended June 30, 2002, the deficiency of earnings coverage was £1,196.6 million ($1,836.4 million) (2001: £230.9 million ($324.2 million); (2000: £133.1 million ($186.9 million)). | |
(2) | After exceptional items, under U.S. GAAP, for the year ended June 30, 2002, the deficiency of earnings coverage was £875.1 million ($1,343.0 million) (2001: £376.0 million ($527.9 million); 2000: £343.9 million ($482.9 million)). |