| 2012 £m | 2011 £m |
---|
Revenue | 587.8 | 570.7 |
Cost of sales | (368.7) | (361.1) |
Gross profit | 219.1 | 209.6 |
Other operating income | 5.2 | 4.5 |
Distribution costs | (17.6) | (17.9) |
Administration expenses* | (103.8) | (109.5) |
Other operating expenses | (5.0) | (1.2) |
Exceptional items: | | |
Amortisation of acquired intangible fixed assets* | (2.0) | (0.9) |
Impairment charge* | – | (4.2) |
Profit on disposal of investment* | 2.4 | – |
Acquisition costs* | (2.5) | – |
Reorganisation costs* | (2.4) | – |
Operating profit | 93.4 | 80.4 |
* Administration expenses total £108.3m (2011: £114.6m).
Exceptional items comprise:
| 2012 £m | 2011 £m |
---|
Amortisation of acquired intangible fixed assets | 2.0 | 0.9 |
Impairment of goodwill | – | 3.7 |
Impairment of acquired intangible fixed assets | – | 0.5 |
Profit on disposal of investment | (2.4) | – |
Acquisition costs | 2.5 | – |
Reorganisation costs | 2.4 | – |
| 4.5 | 5.1 |
Further details of these items are included in the Finance Director's report.
Profit for the year has been arrived at after charging / (crediting):
| 2012 £m | 2011 £m |
---|
Continuing operations: | | |
Net foreign exchange losses | – | 0.1 |
Depreciation of property, plant and equipment | 48.7 | 48.2 |
Amortisation of intangible fixed assets | 4.2 | 2.9 |
Impairment of goodwill (see note 10) | – | 3.7 |
Impairment of acquired intangible fixed assets (see note 11) | – | 0.5 |
Loss on disposal of property, plant and equipment | 0.1 | 0.7 |
Staff costs (see note 4) | 228.8 | 228.5 |
Release of negative goodwill | – | (0.6) |
Acquisition reorganisation costs | – | 0.5 |
Acquisition costs | 2.5 | 0.1 |
Impairment loss on trade receivables | 0.4 | – |
Impairment / (reversal of impairment) of fixed assets | 0.7 | (0.4) |
The analysis of auditor's remuneration on a worldwide basis is as follows:
| 2012 £m | 2011 £m |
---|
Fees payable to the Company's auditor for the audit of the Company's annual accounts | 0.1 | 0.1 |
Fees payable to the Company's auditor and its associates for other services: | | |
The audit of the Company's subsidiaries | 0.6 | 0.5 |
Total audit fees | 0.7 | 0.6 |
Taxation compliance services | 0.1 | 0.1 |
Corporate finance services | – | 0.1 |
Total non-audit fees | 0.1 | 0.2 |
| 0.8 | 0.8 |
In addition to the amounts shown opposite, the auditor received fees of £6,000 (2011: £5,000) for the audit of the Group's pension schemes.
Fees paid to Deloitte LLP and its associates for non-audit services to the Company are not required to be disclosed because the consolidated financial statements are required to disclose such fees on a consolidated basis.
A description of the work of the Audit Committee is set out in the Audit Committee Report and includes an explanation of how auditor objectivity and independence is safeguarded when non-audit services are provided by the Auditor.