Financial Data

Consolidated Profit Loss Account

For the year ended 31 December 1997

	1997			1996
All Figures in £ Million	Operating Activities	Other Items	Total	Operating Activities	Other Items	Total	Note
Sales
Continuing operations	2,265.5	-	2,265.5	2,048.9	-	2,048.9
Acquisitions	27.6	-	27.6	-	-	-
	2,293.1	-	2,293.1	2,048.9	-	2,048.9
Discontinued operations	-	-	-	137.1	-	137.1
Total sales	2,293.1	-	2,293.1	2,186.0	-	2,186.0	2
Cost of sales	(1,114.2)	-	(1,114.2)	(1,064.1)	-	(1,064.1)	3
Gross profit	1,178.9	-	1,178.9	1,121.9	-	1,121.9
Net operating expenses - normal	(863.1)	-	(863.1)	(853.3)	-	(853.3)	3
Net operating expenses - exceptional	(34.4)	-	(34.4)	(40.4)	(100.0)	(140.4)	3
Net income from partnership and associated undertakings	41.8	-	41.8	53.1	-	53.1	11
Operating Profit
Continuing operations	320.9	-	320.9	247.6	(100.0)	147.6
Acquisitions	2.3	-	2.3	-	-	-
	323.2	-	323.3	247.6	(100.0)	147.6
Discontinued operations	-	-	-	33.7	-	33.7
Total operating profit	323.2	-	323.2	281.3	(100.0)	181.3	2
Continuing operations:
Profit/(loss) on sale of fixed assets	-	23.0	23.0	-	(14.1)	(14.1)	4
Loss on sale of businesses and associates	-	(180.3)	(180.3)	-	(1.9)	(1.9)	5
Discontinued operations:
Profit on sale of Westminster Press	-	-	-	-	231.3	231.3	5
Profit before interest	323.2	(157.3)	165.9	281.3	115.3	396.6
Net interest payable	(37.3)	-	(37.3)	(29.5)	-	(29.5)	6
Loan stock redemption premium	-	-	-	-	(10.3)	(10.3)	6
Profit before taxation	285.9	(157.3)	128.6	251.8	105.0	356.8
Taxation	(84.1)	(4.5)	(88.6)	(72.6)	(36.0)	(108.6)	7
Profit after taxation	201.8	(161.8)	40.0	179.2	69.0	248.2
Equity minority interest	(1.7)	-	(1.7)	(7.7)	-	(7.7)
Profit for the financial year	200.1	(161.8)	38.3	171.5	69.0	240.5
Dividends on equity shares	(112.4)	-	(112.4)	(102.7)	-	(102.7)	8
Profit/(loss) retained	87.7	(161.8)	(74.1)	68.8	69.0	137.8	22
Adjusted earnings/ total earnings per equity share	34.9p	(28.2p)	6.7p	30.6p	12.3p	42.9p
Dividends per equity share	19.5p	-	19.5p	18.0p	-	18.0p	8
Average Number of shares (millions)	573.1	573.1	573.1	560.8	560.8	560.8

Note: In order to show results from operating activities an adjusted earnings per equity se has been calculated which excludes profits/(losses) on the sale of fixed assets, businesses and associates (see notes 4 and 5), and in 1996, a loan stock redemption premium (see note 6) and the £100m exceptional charge for improper accounting at Penguin USA. The analysis of operating profit in 1996 between continuing and discontinued operations has been restated to reflect the allocation of central costs (see note 2).