Tesco 2004 Annual Report Download - page 35

Download and view the complete annual report

Please find page 35 of the 2004 Tesco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 60

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60

TESCO PLC 33
NOTE 3 Analysis of operating proÞt
2004 2003
restated
£m £m
Turnover excluding VAT 30,814 26,004
Cost of sales (28,405) (24,007)
Gross proÞt2,409 1,997
Administration expenses (577) (488)
Integration costs (45) (4)
Goodwill amortisation (52) (21)
Operating proÞt1,735 1,484
Cost of sales includes distribution costs and store operating costs. Employee proÞt-sharing is included within administration expenses.
NOTE 4 Employee proÞt-sharing
This represents the amount allocated to the trustees of the proÞt-sharing scheme and is based on the UK proÞt after interest,
before net loss on disposal of Þxed assets and taxation.
NOTE 5 ProÞt on ordinary activities before taxation
2004 2003
£m £m
ProÞt on ordinary activities is stated after charging the following:
Depreciation of tangible Þxed assets:
 owned assets 631 542
 under Þnance leases 69 39
Goodwill amortisation 54 23
Operating lease costs (a) 221 172
Employment costs (note 6) 3,234 2,653
(a) Operating lease costs include £55m for hire of plant and machinery (2003  £39m).
Amounts payable to auditors:
2004 2003
£m £m
Assurance  audit (i) 1.2 0.9
 other assurance services 1.0 1.1
2.2 2.0
Tax services 0.5 0.5
Other services 0.1 0.2
(i) Includes £0.1m (2003  £0.1m) for the company.
NOTE 6 Employment costs
2004 2003
£m £m
Employment costs during the year
Wages and salaries 2,891 2,385
Social security costs 183 146
Other pension costs (note 27) 160 122
3,234 2,653
Number of persons employed
The average number of employees during the year was: UK 230,680 (2003  203,766), Rest of Europe 49,362
(2003  42,280), Asia 30,369 (2003  24,754) and the average number of full-time equivalents was: UK 152,408 (2003  133,051),
Rest of Europe 42,399 (2003  35,372) and Asia 28,528 (2003  19,759).