Tesco plc Annual Report and Financial Statements 2008

Group income statement
year ended 23 February 2008
42
Tesco PLC Annual Report and
Financial Statements 2008
2008 2007
notes £m £m
Continuing operations
Revenue (sales excluding VAT) 2 47,298 42,641
Cost of sales (43,668) (39,401)
Pensions adjustment – Finance Act 2006 24 – 258
Impairment of the Gerrards Cross site – (35)
Gross profit 3,630 3,463
Administrative expenses (1,027) (907)
Profit arising on property-related items 2/3 188 92
Operating profit 2 2,791 2,648
Share of post-tax profits of joint ventures and associates
(including £nil on property-related items (2006/7 – £47m gain)) 13 75 106
Profit on sale of investments in associates 13 – 25
Finance income 5 187 90
Finance costs 5 (250) (216)
Profit before tax 3 2,803 2,653
Taxation 6 (673) (772)
Profit for the year from continuing operations 2,130 1,881
Discontinued operation
Profit for the year from discontinued operation 7 – 18
Profit for the year 2,130 1,899
Attributable to:
Equity holders of the parent 26 2,124 1,892
Minority interests 26 6 7
2,130 1,899
Earnings per share from continuing and discontinued operations
Basic 9 26.95p 23.84p
Diluted 9 26.61p 23.54p
Earnings per share from continuing operations
Basic 9 26.95p 23.61p
Diluted 9 26.61p 23.31p
Non-GAAP measure: underlying profit before tax
2008 2007
notes £m £m
Profit before tax (excluding discontinued operation) 2,803 2,653
Adjustments for:
IAS 32 and IAS 39 ‘Financial Instruments’ – Fair value remeasurements 5 (49) 4
IAS 19 Income Statement charge for pensions 24 414 432
‘Normal’ cash contributions for pensions 24 (340) (321)
IAS 17 ‘Leases’ – impact of annual uplifts in rent and rent-free periods 1 18 –
Exceptional items:
Pensions adjustment – Finance Act 2006 24 – (258)
Impairment of the Gerrards Cross site 1 – 35
Underlying profit before tax 1 2,846 2,545
The notes on pages 46 to 95 form part of these financial statements.
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