Financial statements

Group Income Statement

		2007			2006 (restated) (ii)
Year ended 31 December	Notes	Results for the year before exceptional items and certain re-measurements ⁽ⁱ⁾ £m	Exceptional items and certain re-measurements ⁽ⁱ⁾ £m	Results for the year £m	Results for the year before exceptional items and certain re-measurements ⁽ⁱ⁾ £m	Exceptional items and certain re-measurements ⁽ⁱ⁾ £m	Results for the year £m
Certain re-measurements (notes 2 and 8) included within operating profit comprise re-measurement arising on our energy procurement activities and re-measurement of proprietary trades in relation to cross-border transportation or capacity contracts. Certain re-measurements included within profit from discontinued operations comprise re-measurement of the publicly traded units of The Consumers’ Waterheater Income Fund. All other re-measurement is included within results before exceptional items and certain re-measurements. Restated to present costs incurred under the energy savings programmes in cost of sales and to present The Consumers’ Waterheater Income Fund as a discontinued operation. Note 2 details the change of accounting presentation and note 3 details the deconsolidation of The Consumers’ Waterheater Income Fund.
Continuing operations
Group revenue	6	16,342	–	16,342	16,403	–	16,403
Cost of sales ⁽ⁱⁱ⁾	7	(12,217)	–	(12,217)	(12,764)	–	(12,764)
Re-measurement of energy contracts ⁽ⁱ⁾	6,8	–	244	244	–	(916)	(916)
Gross profit		4,125	244	4,369	3,639	(916)	2,723
Operating costs before exceptional items ⁽ⁱⁱ⁾		(2,190)	–	(2,190)	(2,250)	–	(2,250)
Systems write-down	8	–	–	–	–	(196)	(196)
Business restructuring costs	8	–	–	–	–	(87)	(87)
Rough storage incident	8	–	–	–	–	(48)	(48)
Operating costs ⁽ⁱⁱ⁾	7	(2,190)	–	(2,190)	(2,250)	(331)	(2,581)
Share of profits/(losses) in joint ventures and associates, net of interest and taxation ⁽ⁱ⁾	8,18	14	(9)	5	3	(15)	(12)
Group operating profit	6	1,949	235	2,184	1,392	(1,262)	130
Interest income	10	258	–	258	105	–	105
Interest expense	10	(331)	–	(331)	(246)	–	(246)
Net interest expense	10	(73)	–	(73)	(141)	–	(141)
Profit/(loss) from continuing operations before taxation		1,876	235	2,111	1,251	(1,262)	(11)
Taxation on profit from continuing operations	11	(753)	(60)	(813)	(549)	363	(186)
Profit/(loss) from continuing operations after taxation		1,123	175	1,298	702	(899)	(197)
Profit/(loss) from discontinued operations ⁽ⁱ⁾	35	1	(19)	(18)	14	37	51
Gain/(loss) on disposal of discontinued operations	35	–	227	227	(8)	–	(8)
Discontinued operations		1	208	209	6	37	43
Profit/(loss) for the year		1,124	383	1,507	708	(862)	(154)
Attributable to:
Equity holders of the parent		1,122	383	1,505	707	(862)	(155)
Minority interests	31	2	–	2	1	–	1
		1,124	383	1,507	708	(862)	(154)
		Pence		Pence	Pence		Pence
Earnings/(loss) per ordinary share
From continuing and discontinued operations:
Basic	13			41.0			(4.3)
Adjusted basic	13	30.6			19.4
Diluted	13			40.3			(4.3)
From continuing operations:
Basic	13			35.3			(5.4)
Adjusted basic	13	30.5			19.2
Diluted	13			34.7			(5.4)

Interim dividend paid per share	12			3.35			3.15
Final dividend proposed per share	12			9.65			8.00

The notes form part of these Financial Statements.

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