Tesco 2002 Annual Report Download - page 25

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TESCO PLC 23
NOTE 3 Analysis of operating profit
2002 2001
£m £m
Turnover excluding VAT 23,653 20,988
Cost of sales (21,866) (19,400)
Gross profit 1,787 1,588
Administration expenses (465) (422)
Operating profit 1,322 1,166
Cost of sales includes distribution costs and store operating costs. Goodwill amortisation and employee profit-sharing are included within
administration expenses.
NOTE 4 Employee profit-sharing
This represents the amount allocated to the trustees of the profit-sharing scheme and is based on the UK profit after interest, before net
loss on disposal of fixed assets and taxation.
NOTE 5 Profit on ordinary activities before taxation
2002 2001
£m £m
Profit on ordinary activities is stated after charging the following:
Depreciation 524 468
Goodwill amortisation 10 8
Operating lease costs (a) 170 177
Auditors’ remuneration (b) 11
Employment costs (note 6) 2,336 2,047
(a) Operating lease costs include £33m for hire of plant and machinery (2001 – £34m).
(b) Auditors’ remuneration amounted to £0.8m (2001 – £0.8m) and includes £0.1m (2001 – £0.1m) for the company.
The auditors also received £1.2m (2001 – £0.9m) in respect of non-audit services of which £0.4m (2001 – £0.4m) related to overseas operations.
These fees were principally in respect of acquisitions and taxation advice.
NOTE 6 Employment costs
2002 2001
£m £m
Employment costs during the year
Wages and salaries 2,103 1,831
Social security costs 129 118
Other pension costs (note 27) 104 98
2,336 2,047
Number of persons employed
The average number of employees per week during the year was: UK 187,393 (2001 – 177,527), Rest of Europe 38,108 (2001 – 31,334),
Asia 21,873 (2001 – 16,527) and the average number of full-time equivalents was: UK 121,272 (2001 – 113,998), Rest of Europe 32,856
(2001 – 26,376) and Asia 17,666 (2001 – 11,836).
NOTE 7 Directors’ emoluments and interests
Details of Directors’ emoluments and interests are given in the report of the Directors on remuneration on pages 10 to 14.