Consolidated profit and loss account

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For year ended 31 December 2004

  Notes Before
exceptional
items, goodwill
amortisation
& impairment
£m
Exceptional
items
£m
Goodwill
amortisation
& impairment
£m
2004
Total
£m
2004
Total
£m
Turnover 3          
Existing operations   180.1     180.1 170.4
Acquisitions   5.3     5.3 -
Continuing operations   185.4     185.4 170.4
Discontinued operations   -     - 22.4
    185.4     185.4 192.8
Cost of sales 4 (108.9)     (108.9) (111.4)
Gross profit   76.5     76.5 81.4
Net operating expenses 4/5 (58.7) (2.1) (1.8) (62.6) (68.9)(1)
Operating profit 3/6          
Existing operations   17.1 (2.1) (1.8) 13.2 12.5
Acquisitions   0.7     0.7 -
Continuing operations   17.8 (2.1) (1.8) 13.9 12.5
Loss on disposal of discontinued operation         - (3.0)
Profit on ordinary activities before interest   17.8 (2.1) (1.8) 13.9 9.5
Net interest payable 23 (1.6)     (1.6) (1.7)
Profit on ordinary activities before tax   16.2 (2.1) (1.8) 12.3 7.8
Tax on profit on ordinary activities 9 (6.8) 0.9   (5.9) (2.3)(2)
Profit on ordinary activities after tax and for the financial year   9.4 (1.2) (1.8) 6.4 5.5
Dividends 10       (6.1) (9.3)
Retained profit/(loss) for the yeartransferred to reserves 22       0.3 (3.8)
Basic earnings per share 11       15.6p 13.6p
Diluted earnings per share 11       15.5p 13.5p
Adjusted basic earnings per share(3) 11       22.9p 23.9p

(1)Net operating expenses in the year ended 31 December 2003 included £1.0 million of exceptional restructuring costs relating to the closure of Radamec Broadcast Systems’ manufacturing facility at Chertsey, UK, £0.9 million of exceptional costs relating to the unsuccessful acquisition of EVS Broadcast Systems, and £3.4 million of goodwill amortisation & impairment. No related tax credit was recognised on these costs

(2)Includes a tax credit of £4.1 million in respect of the loss on sale of discontinued operation.

(3)Adjusted basic earnings per share is presented as the Directors consider that this gives valuable additional information about the ongoing earnings performance of the Group.

There is no material difference between the Group’s profit and loss account and the historical cost profit and loss account. Accordingly, no note of the historical cost profit and loss for the period has been presented.

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Information correct at 13/04/05