BOC Report and accounts 2005 - Alle jaarverslagen

54 The BOC Group plc Annual report and accounts 2005 Operating review (comparing 2004 with 2003)
Gist
Change
on 2003 1
2004 Change (constant
£ million on 2003 currency)
Turnover 293.2 no change +1%
Operating profit 25.1 –14% –14%
Adjusted operating profit 2 25.1 –14% –14%
1. A reconciliation of results for 2003 at 2003 and at 2004 rates of exchange is shown on page 40.
2. A reconciliation of adjusted operating profit with operating profit is shown on page 41.
3. All comments below are on a constant currency basis.
The comparison of turnover and adjusted operating profit between 2003 and 2004 is distorted by a non-recurrent
item during 2003. In 2003 a gain of some £4.1 million arising principally from the termination of operations for the
Marks & Spencer General Merchandise business was credited to adjusted operating profit.The termination of this
business also eliminated some £26 million of turnover in 2004 compared with 2003.After adjusting for this item,
underlying turnover grew principally as a result of increased food business for Marks & Spencer, as well as new
contracts and the expansion of activity with Ocado and Carlsberg UK. On the same basis, adjusted operating profit
in 2004 was at a similar level to 2003.
Primary food distribution operations were also expanded in 2004 when Gist took on the transport
operations of John Rannoch foods, one of the leading suppliers of poultry products to Marks & Spencer. Gist
manages the complex supply chain for all of Marks & Spencer’s chilled and ambient foods. During 2004, a major
investment was made to expand a chilled food facility in Kent to meet the demands of the growing network of
M&S Simply Food stores.