Consolidated income statement

	Notes	Year ended 31 July 2008 £m	Period ended 31 July 2007 £m
Continuing operations
Revenue	1	2,321.2	2,160.9
Cost of sales		(1,265.5)	(1,159.1)
Gross profit		1,055.7	1,001.8
Sales and distribution costs		(311.8)	(311.5)
Administrative expenses
– normal activities		(396.4)	(394.2)
– provision for John Crane, Inc. litigation	4	(49.0)	(100.7)
Other operating income	2		66.9
Profit/(loss) on disposal of businesses	4	27.2	(5.2)
Operating profit	2	325.7	257.1
Interest receivable		2.2	21.4
Interest payable		(43.2)	(57.8)
Other financing (losses)/gains	3	(6.1)	2.1
Other finance income – retirement benefits		41.7	33.7
Finance costs	5	(5.4)	(0.6)
Share of post-tax losses of associated companies	14	(1.0)	(0.5)
Profit before taxation		319.3	256.0
Comprising
– headline profit before taxation	3	380.3	344.4
– exceptional items	4
• profit/(loss) on disposal of businesses		27.2	(5.2)
• commutation of insurance policies			42.9
• provision for John Crane, Inc. litigation		(53.7)	(100.7)
• other		(13.6)	(35.2)
– amortisation of acquired intangible assets		(19.2)	(14.8)
– other financing (losses)/gains		(1.7)	0.6
– profit on sale of financial asset			24.0
		319.3	256.0
Taxation	6	(75.0)	(53.1)
Profit after taxation – continuing operations		244.3	202.9
Profit after taxation – discontinued operations	7	24.5	1,525.2
Profit for the period		268.8	1,728.1
Attributable to:
Smiths Group shareholders		268.5	1,728.1
Minority interests		0.3
		268.8	1,728.1
Earnings per share	9
Basic		69.3p	314.7p
Basic – continuing operations		63.0p	36.9p
Diluted		68.5p	310.3p
Diluted – continuing operations		62.3p	36.4p

References in the consolidated income statement, consolidated statement of recognised income and expense, consolidated balance sheet and consolidated cash-flow statement relate to notes in the Notes to the accounts, which form an integral part of the consolidated financial statements.

Smiths Group divisions:
Smiths Detection, Smiths Medical, John Crane, Smiths Interconnect, Flex-Tek