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
  1. 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.
  2. 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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