Vodafone 2001 Annual Report Download - page 35

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Vodafone Group Plc
Annual Report & Accounts
for the year ended
31 March 2001
33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
2 Operatin g profit
Continuing
operations Acquisitions 2001 2000
£m £m £m £m
Group turnover 6,637 8,367 15,004 7,873
Cost of sales 3,851 4,851 8,702 4,359
–––––––– –––––––– –––––––– ––––––––
Gross profit 2,786 3,516 6,302 3,514
–––––––– –––––––– –––––––– ––––––––
Selling and distribution costs 489 673 1,162 869
Administrative expenses 1,253 10,326 11,579 1,664
Amortisation of goodwill 152 9,433 9,585 674
Exceptional operating items 112 64 176 30
Other administration costs 989 829 1,818 960
–––––––– –––––––– –––––––– ––––––––
Total operating expenses 1,742 10,999 12,741 2,533
–––––––– –––––––– –––––––– ––––––––
Operating (loss)/profit 1,044 (7,483) (6,439) 981
–––––––– –––––––– –––––––– ––––––––
Operating (loss)/profit has been arrived at after charging:
2001 2000
£m £m
Depreciation of tangible fixed assets
Owned assets 1,568 698
Leased assets 25 48
Amortisation of goodwill 9,585 674
Amortisation of other intangible fixed assets 24 12
Research and development 72 46
Payments under operating leases
Plant and machinery 19 76
Other assets 229 278
Auditors’ remuneration
Audit work 31
Other fees
United Kingdom 23
Overseas 64
–––––––– ––––––––
Auditors’ other fees shown above exclude £4m (2000 – £6m) of fees payable for professional services incurred in the period in
connection with mergers and acquisitions. These fees have been accounted for as acquisition costs upon completion of the transaction.
Auditors’ other fees incurred on specific capital projects during the year and totalling £10m (2000 – £3m) have also been excluded, of
which £4m (2000 – £2m) was incurred by overseas operations.
Join t ven tures an d associated un dertakin gs
Group turnover includes sales to joint ventures and associated undertakings of £211m (2000 – £303m) primarily comprising
network airtime and access charges. Total operating costs include charges from joint ventures and associated undertakings of £84m
(2000 – £82m), primarily comprising roaming charges.
The Group’s share of the turnover and operating profit of joint ventures and associated undertakings is further analysed as follows:
Continuing
operations Acquisitions 2001 2000
£m £m £m £m
Share of turnover:
Joint ventures 98 – 98 362
Associated undertakings 8,419 472 8,891 3,286
–––––––– –––––––– –––––––– ––––––––
8,517 472 8,989 3,648
–––––––– –––––––– –––––––– ––––––––
Share of operating (loss)/profit:
Joint ventures (42) – (42) (40)
Associated undertakings 16 (533) (517) (145)
–––––––– –––––––– –––––––– ––––––––
(26) (533) (559) (185)
–––––––– –––––––– –––––––– ––––––––