G4S Annual Report and Accounts 2011

Governance Financial statements Shareholder information
8 Profit from operations before interest and taxation (PBIT)
The income statement can be analysed as follows:
Continuing operations
Revenue 7,522 7,258
Cost of sales (5,924) (5,695)
Gross profit 1,598 1,563
Administration expenses (1,226) (1,130)
Share of profit from associates 3 5
PBIT 375 438
2011
£m
2010
£m
Included within administration expenses is £86m (2010: £88m) of amortisation of acquisition-related intangible assets and a £13m (2010: £nil) goodwill
impairment charge relating to the group’s businesses in Greece, £2m (2010: £4m) of acquisition-related expenses and £55m (2010: £nil) of aborted
acquisition and legal settlement costs. The aborted acquisition costs include debt finance underwriting fees, financing and hedging costs that arose on the
proposed acquisition of ISS A/S which was terminated on 1 November 2011.
Revenue and expenses relating to discontinued operations are disclosed in note 7.
9 Profit from operations
Profit from continuing and discontinued operations has been arrived at after charging/(crediting):
Cost of sales
Cost of inventories recognised as an expense 101 102
Write-down of inventories to net realisable value 2 1
Administration expenses
Acquisition-related expenses 2 4
Aborted acquisition and legal settlement costs 55 –
Amortisation of acquisition-related intangible assets 86 88
Goodwill impairment 13 –
Amortisation of other intangible assets 18 17
Impairment of other assets relating to disposal groups 6 –
Depreciation of property, plant and equipment 131 131
Profit on disposal of property, plant and equipment and intangible assets other than acquisition-related (11) (16)
Profit on disposal of subsidiaries (33) (8)
Impairment of trade receivables 13 5
Litigation settlements 1 1
Research and development expenditure 6 5
Operating lease rentals payable 143 142
Operating sub-lease rentals receivable (14) (13)
Cost of equity-settled transactions 1 7
Government grants received as a contribution towards wage costs (1) (1)
2011
£m
2010
£m
10 Auditors’ remuneration
Fees payable to the company’s auditor for the audit of the company’s annual report and accounts 1 1
Fees payable to the company’s auditor and its associates for other services:
The audit of the company’s subsidiaries pursuant to legislation 5 5
Corporate finance services 1 –
Fees payable to other auditors for the audit of the company’s subsidiaries pursuant to legislation 1 1
2011
£m
2010
£m
In addition, the group paid £0.3m (2010: £0.4m) for taxation services.
The Corporate Governance Statement on pages 57 to 61 outlines the company’s established policy for ensuring that audit independence is not
compromised through the provision by the company’s auditor of other services.
G4S plc
Annual Report and Accounts 2011
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