Notes to the Accounts
3. Analysis of consolidated profit and loss account
| all figures in £ millions | 2000 | 1999 |
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| Cost of sales | (1,641) | (1,424) |
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| Distribution costs | (180) | (157) |
| Administration and other expenses | (1,913) | (1,602) |
| Other operating income (see below) | 82 | 98 |
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| Net operating expenses | (2,011) | (1,661) |
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| Analysed as: | ||
| Net operating expenses – before exceptional items | ||
| and goodwill amortisation | (1,791) | (1,446) |
| Net operating expenses – exceptional items | (32) | (85) |
| Net operating expenses – goodwill amortisation | (188) | (130) |
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| Net operating expenses | (2,011) | (1,661) |
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note • The following amounts are included in the 2000 totals in respect of acquisitions: cost of sales £211m and net operating expenses £224m. The exceptional expense of £40m in 2000 (1999: £95m) is included within cost of sales £8m (1999: £10m) and administration and other expenses £32m (1999: £85m) (see note 2).
| all figures in £ millions | 2000 | 1999 |
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| Other operating income | ||
| Income from other investments: | ||
| Unlisted | 3 | 3 |
| BSBH loan stock interest | – | 1 |
| Other operating income (mainly royalties, rights and commission income) | 79 | 94 |
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| 82 | 98 | |
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| Profit before taxation is stated after charging: | ||
| Amortisation of pre-publication costs | 155 | 134 |
| Depreciation | 100 | 82 |
| Operating lease rentals: | ||
| Plant and machinery | 16 | 22 |
| Properties | 75 | 61 |
| Other | 14 | 12 |
| Year 2000 compliance costs | – | 5 |
| Auditors’ remuneration: | ||
| Audit | 2 | 2 |
| Non-audit – UK (company £nil; 1999: £nil) | 1 | 2 |
| Non-audit | 5 | 2 |
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note • In addition to the non-audit fees (UK) of £1m (1999: £2m), consultancy fees of £1m (1999: £6m) have been incurred in respect of systems development. These fees have been capitalised. Fees of £1m (1999: £2m) were also incurred in the UK in respect of acquisitions and disposals. These fees have also been capitalised. Audit fees of the company amounted to £0.1m (1999: £0.1m).
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