Notes to the Accounts

2. A) Analysis of sales and operating profit

Note:
Exceptional items comprise restructuring costs in both 1997 and 1996 (see below) and the £100m charge to profits in 1996 arising from improper accounting at Penguin USA. 

Central costs have now been allocated to profit centres and investment profits credited to the appropriate profit centre. Profits from Cedar Fair, the main source of these investment profits, are included in the Entertainment sector. The final tranche of this investment was sold in 1996 for a profit of £16.3m. Reclassified figures for the years 1993 to 1996 are shown in the five year summary on page 80. Previously these items were included under the heading 'Corporate expenses less other income'. Central costs allocated to discontinued operations amounted to £1.6m in 1996.

Discontinued operations relate to the withdrawal of the Group from the UK regional newspaper business upon its disposal of Westminster Press in December 1996.

Analyses of the profits of partnerships and associated undertakings are shown in note 11.

Note: Information restructuring was mainly in FT branded businesses, £10.0m in 1997 and in 1996, the Financial Times newspaper, £5.8m. Restructuring costs of £0.8m, included within other in 1996, relate to discontinued operations.

Note: The table above analyses sales by the geographical region from which the products and services originate. Interregional sales are those made between the Group companies in different regions.

2. B) Analysis of capital employed