Annual report & review 2006 - Shopic.com

Summary financial statements
3 Operating Profit
2006 2005
Restated
€m €m
Turnover 4,593.5 4,393.6
Cost of sales (3,892.1) (3,700.3)
Gross profit 701.4 693.3
Selling and distribution costs (427.2) (426.8)
Administrative and other operating expenses (net) (169.3) (165.5)
Operating profit 104.9 101.0
2006 2005
Restated
€m €m
Operating profit has been arrived at after charging/(crediting):
Staff costs 264.9 262.5
Depreciation of tangible assets 33.5 38.7
Operating lease rentals 26.7 36.0
Amortisation of goodwill 21.8 22.4
Auditors’ remuneration 1.0 0.9
Provisions for impairment 0.5 (0.7)
4 Provisions for losses and losses arising on disposal of fixed assets
2006 2005
Restated
€m €m
Profits arising on disposal of fixed assets net of goodwill disposal 12.9 4.8
Impairment in value of tangible and financial assets (11.0) (8.2)
Provisions for onerous contracts (7.3) (0.9)
(5.4) (4.3)
The Group has a programme in place to sell its shop properties in Great Britain to entrepreneurial food retailers, based on a strategy
of supporting a network of independently-owned stores in Great Britain, similar to its network in Ireland.
The impairment in value of tangible fixed assets results from a review of the carrying value of the remaining shop properties in
Great Britain based on the Group’s strategy. Similarly, the provision for onerous contracts relates to onerous lease, dilapidation and
other lease provisions in respect of shop properties in Great Britain. The impairment in value of financial assets results from a review
of the carrying value of shop investments in Northern Ireland and in the Republic of Ireland.
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Musgrave Group Plc Annual Report & Review 2006