Summary Group Income Statement

Year ended 31 December 2007 2006 (restated) (ii)
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 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. In our business we enter into a portfolio of forward energy contracts which include buying substantial quantities of commodity to meet the future needs of our customers. A number of these arrangements are considered to be derivative financial instruments and are required to be fair valued under IAS 39. Fair valuing means that we apply the prevailing forward market prices to these contracts. The Group has shown the fair value adjustments separately as certain re-measurements as they are unrealised and non-cash in nature. The profits arising from the physical purchase and sale of commodities during the year, which reflect the prices in the underlying contracts, are not impacted by these re-measurements.

    As permitted by IAS 1, Presentation of Financial Statements, certain items are presented separately. The items that the Group separately presents as exceptional are items which are of a non-recurring nature and, in the judgement of the Directors, need to be disclosed separately by virtue of their nature, size or incidence in order to obtain a clear and consistent presentation of the Group's underlying business performance. Items which may be considered exceptional in nature include disposals of businesses, business restructurings, the renegotiation of significant contracts and asset write-downs.

    Exceptional items and certain re-measurements included within discontinued operations comprise the gain on disposal of The Consumers' Waterheater Income Fund and 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.
Continuing operations            
Group revenue 16,342 – 16,342 16,403 – 16,403
Cost of sales (ii) (12,217) – (12,217) (12,764) – (12,764)
Re-measurement of energy contracts (i) – 244 244 – (916) (916)
Gross profit 4,125 244 4,369 3,639 (916) 2,723
Operating costs (ii) (2,190) – (2,190) (2,250) (331) (2,581)
Share of profits/(losses) in joint ventures and associates, net of interest and taxation (i) 14 (9) 5 3 (15) (12)
Group operating profit 1,949 235 2,184 1,392 (1,262) 130
Net interest expense (i) (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 (753) (60) (813) (549) 363 (186)
Profit/(loss) from continuing operations after taxation 1,123 175 1,298 702 (899) (197)
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 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     41.0     (4.3)
Diluted     40.3     (4.3)
Adjusted basic 30.6     19.4    
             
Interim dividend paid per share     3.35     3.15
Final dividend proposed per share     9.65     8.00
 
      £000     £000
Directors' emoluments     5,774     5,159

Top of page