Consolidated Profit and Loss Account

CONSOLIDATED PROFIT AND LOSS ACCOUNT

				RESTATED
		NOTES	1997 £M	1996 £M	1995 £M

Revenue		2	2,882	2,914	2,703
Operating costs		3	(2,290)	(2,273)	(2,152)

Operating profit			592	641	551
Goodwill amortisation			(51)	(49)	(41)

			541	592	510
Loss from associates			(1)	(7)	(12)
Income from fixed asset investments			6	6	-
Net interest receivable		4	80	61	60

Profit on ordinary activities before taxation			626	652	558
Taxation on profit on ordinary activities		5	(236)	(210)	(185)

Profit after taxation attributable to ordinary shareholders			390	442	373
Dividends		6	(190)	(190)	(158)

Retained profit		26	200	252	215

Earnings per ordinary share		7	24.0p	27.3p	23.2p
Adjustments for:
	Capital reorganisation costs		1.9p	-	-
	Goodwill amortisation	1	3.2p	3.1p	2.6p

Adjusted earnings per ordinary share		7	29.1p	30.4p	25.8p

Consolidated revenue and operating profit derive from continuing operations in all material respects.