Carphone Warehouse 2005 Annual Report Download - page 44

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The Carphone Warehouse Group PLC Annual Report 2005
Notes to the Financial Statements continued
3Analysis of profit and loss account
2005 2004
Existing operations Acquisitions Total Total
£’000 £’000 £’000 £’000
Turnover 2,323,180 31,913 2,355,093 1,849,011
Cost of sales (1,632,915) (18,226) (1,651,141) (1,303,246)
Gross profit 690,265 13,687 703,952 545,765
Depreciation (47,093) (803) (47,896) (41,684)
Amortisation of goodwill (26,675) (6,554) (33,229) (25,417)
Exceptional operating expenses (see note 6a) –––(4,733)
Other operating expenses (538,833) (10,275) (549,108) (422,934)
Total operating expenses (612,601) (17,632) (630,233) (494,768)
Operating profit 77,664 (3,945) 73,719 50,997
Total operating expenses for statutory purposes are analysed as follows:
2005 2004
Existing operations Acquisitions Total Total
£’000 £’000 £’000 £’000
Distribution costs (485,917) (16,432) (502,349) (387,543)
Administrative expenses (126,684) (1,200) (127,884) (102,492)
Exceptional operating expenses (see note 6a) –––(4,733)
Total operating expenses (612,601) (17,632) (630,233) (494,768)
4Profit on ordinary activities before taxation
Profit on ordinary activities before taxation is stated after charging:
2005 2004
£’000 £’000
Amortisation of goodwill 33,229 25,417
Depreciation of tangible fixed assets 47,896 41,684
Rentals under operating leases – property 57,456 51,814
Operating loss on disposal of fixed assets 482 163
Auditors’ remuneration – audit services 934 568
Auditors’ remuneration – non-audit services 214 325
Further auditors’ remuneration in respect of due diligence reviews of £15,000 (2004 – £225,000) has been capitalised within the cost of investments during
the period. Auditors’ remuneration for audit services includes £8,000 (2004 – £8,000) for the Company.
5Employees
Employee costs (including Executive Directors) consist of:
2005 2004
£’000 £’000
Wages and salaries 249,134 194,614
Social security costs 38,735 33,147
Other pension costs 1,906 1,749
289,775 229,510
The average monthly number of people employed by the Group (including Executive Directors) during the period was:
2005 2004
Number Number
Administration 1,953 1,631
Selling and distribution 10,305 8,552
12,258 10,183
Details of Directors’ remuneration are provided in the Remuneration Report on pages 26 to 31.
At 2 April 2005 loans of £1.0m (2004 – £0.9m) were outstanding from certain Group executives, none of whom was a Director of the Company.
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