Notes to the Accounts
3. Analysis of consolidated profit and loss account
| 1997 | 1996 | |||
| All figures in £ million | Continuing | Continuing | Discontinued | Total |
| Cost of Sales | (1,114.2) | (982.0) | (82.1) | (1,064.1) |
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| Distribution Costs | (125.9) | (114.3) | (12.5) | (126.8) |
| Administration and other expenses | (843.2) | (932.6) | (8.9) | (941.5) |
| Other operating income (see below) | 71.6 | 72.9 | 1.7 | 74.6 |
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| Net operating expenses | (897.5) | (974.0) | (19.7) | (993.7) |
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| Analysed as: | ||||
| Net operating expenses - normal | (863.1) | (834.4) | (18.9) | (853.3) |
| Net operating expenses - exceptional | (34.4) | (139.6) | (0.8) | (140.4) |
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| Net operating expenses | (897.5) | (974.0) | (19.7) | (993.7) |
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Note: The following amounts are included in the 1997 totals in respect of acquisitions: cost of sales £14.6m, net operating expenses £13.0m and income from partnerships and associated undertakings £2.3m. The exceptional expense of £34.4m is included in administration and other expenses in 1997 and comprises restructuring costs. The exceptional expense of £140.4m in 1996 is included in administration and other expenses and comprises restructuring costs of £40.4m and the £100m Penguin USA charge for improper accounting (see note 2).
| 1997 | 1996 | |
| All figures in £ million | ||
| Other operating income | ||
| Income from other investments: | ||
| Listed | 2.1 | 2.9 |
| Unlisted | 12.9 | 8.5 |
| BSBH loan stock interest | 3.9 | 2.4 |
| Other operating income (mainly royalties, rights and commision income) | 52.7 | 60.8 |
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| 71.6 | 74.6 | |
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| Profit before taxation is stated after charging: | ||
| Depreciation | 65.2 | 63.2 |
| Operating lease rentals: | ||
| Plant and machinery | 12.2 | 16.5 |
| Properties | 35.5 | 32.7 |
| Auditors' remuneration: | ||
| Audit (Company £0.1m; 1996: £0.1m) | 1.6 | 1.6 |
| Non-audit - United Kingdom (Company £nil; 1996 £nil) | 2.0 | 0.4 |
| Non-audit - Other | 0.3 | 0.2 |
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Note: In addition to the non-audit fees (United Kingdom)of £2.0m in 1997, consultancy fees of £8.1m have been incurred in respect of the Shared Services initiative. These fees have been capitalised.
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