Notes to the
Accounts

< Previous

Next >

3 Analysis of consolidated profit and loss account

All figures in £ millions	2004	2003
Cost of sales	(1,866)	(1,910)
Gross profit	2,053	2,138
Distribution costs	(243)	(239)
Administration and other expenses	(1,635)	(1,724)
Other operating income	46	51
Net operating expenses	(1,832)	(1,912)
Analysed as
Net operating expenses - before other items	(1,608)	(1,655)
Net operating expenses - other items
- Goodwill amortisation	(224)	(257)
Net operating expenses	(1,832)	(1,912)
Note Other items are all included in administration and other expenses. Included above are the following amounts in respect of discontinued operations: cost of sales £61m (2003: £53m), distribution costs £40m (2003: £33m) and administration and other expenses £66m (2003: £55m).
All figures in £ millions	2004	2003
Other operating income
Income from other investments
Unlisted	-	4
Other operating income (mainly royalties, rights and commission income)	46	47
	46	51
Profit before taxation is stated after charging
Amortisation of pre-publication costs	168	158
Depreciation	102	111
Operating lease rentals
- Plant and machinery	9	14
- Properties	97	113
- Other	13	9
Auditors' remuneration
Statutory audit and audit-related regulatory reporting services	4	3
Non-audit services	2	2
Non-audit services were as follows
Tax compliance services	1	1
Tax advisory services	1	1

Note Included in statutory audit fees are amounts relating to the parent company of £20,000 (2003: £20,000). Audit-related regulatory reporting fees relating to the parent company are £225,000 (2003: £200,000) and £600,000 (2003: £nil) relating to overseas subsidiaries. Non-audit fees in the UK in 2004 are £1m (2003: £341,000) and are in respect of tax advisory, tax compliance services and other advisory services. The remainder of the non-audit fees relate to overseas subsidiaries.

back to top