Financial review
|
2002 |
|
2001 |
|
OPERATING PROFIT FROM CONTINUING OPERATIONS |
£493m |
$794m |
£426m |
$686m |
OPERATING PROFIT FROM DISCONTINUED OPERATIONS (RTL) |
- |
- |
£37m |
$59m |
GOODWILL AMORTISATION |
£(330)m |
$(531)m |
£(375)m |
$(604)m |
GOODWILL IMPAIRMENT |
£(10)m |
$(16)m |
£(61)m |
$(98)m |
INTEGRATION COSTS |
£(10)m |
$(16)m |
£(74)m |
$(119)m |
NON OPERATING ITEMS |
£(37)m |
$(60)m |
£(128)m |
$(206)m |
AMOUNTS WRITTEN OFF INVESTMENTS |
- |
- |
£(92)m |
$(148)m |
NET INTEREST PAYABLE |
£(94)m |
$(151)m |
£(169)m |
$(272)m |
EARLY REPAYMENT OF DEBT AND TERMINATION OF SWAP CONTRACTS |
£(37)m |
$(60)m |
- |
- |
LOSS BEFORE TAXATION |
£(25)m |
$(40)m |
£(436)m |
$(702)m |
TAXATION |
£(64)m |
$(103)m |
£33m |
$53m |
LOSS AFTER TAXATION |
£(89)m |
$(143)m |
£(403)m |
$(649)m |
MINORITY INTERESTS |
£(22)m |
$(35)m |
£(20)m |
$(32)m |
LOSS FOR THE FINANCIAL YEAR |
£(111)m |
$(178)m |
£(423)m |
$(681)m |
DIVIDENDS |
£(187)m |
$(301)m |
£(177)m |
$(285)m |
RETAINED LOSS FOR THE YEAR |
£(298)m |
$(479)m |
£(600)m |
$(966)m |
The sale of our 22% share in RTL was concluded at the end of January 2002
allowing us to pay down our debt to under £1.5bn and marking the beginning of a
period of portfolio stability. This also results in the Pearson profit and loss
account becoming more straightforward as our significant acquisition and
disposal activity and our start-up internet investments are largely behind us.
2002 also marks the end of the integration charges on our major acquisitions.
Moreover, the goodwill amortisation arising from those acquisitions will be more
predictable.
Our operating profits from continuing operations in 2002 increased from 2001 by
18% to £493m. However, almost entirely as a result of our (non-cash) goodwill
amortisation charge, we still show an overall loss for the financial year.
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