Consolidated income statement

 

Year ended 31 January 2017

    2016/17 2015/16
£ millions Notes Before exceptional items Exceptional items (note 4) Total Before exceptional items Exceptional items (note 4) Total
Sales 3 11,225 - 11,225 10,441 - 10,411
Cost of sales   (7,050) - (7,050) (6,545) - (6,545)
Gross profit   4,175 - 4,175 3,896 - 3,896
Selling and distribution expenses   (2,758) 21 (2,737) (2,666) (308) (2,974)
Administrative expenses   (687) (5) (692) (567) (15) (582)
Other income   19 7 26 26 157 183
Share of post-tax results of joint ventures and associates   1 - 1 3 - 3
Operating profit   750 23 773 692 (166) 526
Finance costs   (21) (6) (27) (22) - (22)
Finance income   13 - 13 8 - 8
Net finance costs 5 (8) (6) (14) (14) - (14)
Profit before taxation   742 17 759 678 (166) 512
Income tax expense 6 (143) (6) (149) (167) 67 (100)
Profit for the year   599 11 610 511 (99) 412
               
Earnings per share 7            
Basic       27.1p     17.8p
Diluted       27.0p     17.8p
Adjusted basic       24.4p     22.0p
Adjusted diluted       24.3p     22.0p
Underlying basic       25.9p     22.0p
Underlying diluted       25.8p     22.0p
               
Reconciliation of non-GAAP underlying and adjusted pre-tax profit:    
Underlying pre-tax profit       787     686
Transformation costs before exceptional items       (44)     -
Adjusted pre-tax profit       743     686
B&Q China operating loss       -     (4)
Financing fair value remeasurements       (1)     (4)
Exceptional items       17     (166)
Profit before taxation       759     512

The proposed final dividend for the year ended 31 January 2017, subject to approval by shareholders at the Annual General Meeting, is 7.15p per share