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24 TESCO PLC ANNUAL REPORT 1999
Notes to the financial statements
Note 1 Segmental analysis of sales, turnover, profit and net assets
The Group’s operations of food retailing and associated activities and property development are carried out in the UK, Republic of
Ireland, France, Hungary, Poland, Czech Republic, Slovakia and Thailand. The results for Thailand and continental European
operations are for the year ended 31 December 1998. In 1998, the Group disposed of Catteau S.A. whose results are included for the
period to 24 February 1998, the date of disposal.
1998
1999 (restated)
Sales Turnover Sales Turnover
including excluding including excluding
VAT VAT Profit Assets VAT VAT Profit Assets
£m £m £m £m £m £m £m £m
Continuing operations
Food retailing – UK 17,070 15,814 919 5,392 16,115 14,952 875 4,780
Property development 21 21 – 32 19 19 – 55
Total UK 17,091 15,835 919 5,424 16,134 14,971 875 4,835
Food retailing – Rest of Europe 1,285 1,167 48 522 1,045 944 39 259
Food retailing – Thailand 170 156 (2)151 ––––
Total continuing operations 18,546 17,158 965 6,097 17,179 15,915 914 5,094
Discontinued operations:
Food retailing – France ––––600 537 (2) –
18,546 17,158 965 17,779 16,452 912
Integration costs (26)(63)
Goodwill amortisation (5)–
Operating profit 934 849
Loss on disposal of discontinued operations –(8)
Net loss on disposal of fixed assets (8)(1)
Share of operating profit/(loss) from joint ventures 6(6)
Net interest payable (90)(74)
Profit on ordinary activities before taxation 842 760
Operating margin (pre-integration costs) 5.6% 5.5%
Capital employed 6,097 5,094
Net debt (note 19) (1,720)(1,191)
Net assets 4,377 3,903
The analysis of capital employed by geographical area is calculated on net assets excluding net debt. Inter-segmental turnover between the
geographical areas of business is not material. Turnover is disclosed by origin. There is no material difference in turnover by destination.
The Group’s share of sales in the joint ventures which is not included in the numbers above is £81m (1998 – £34m).