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Annual report and accounts 2005

Consolidated income statement

Rolls-Royce

For the year ended December 31, 2005

  Notes 2005
£m
2004
£m
Revenue 2, 3 6,603 5,947
Cost of sales   (4,924) (4,744)
Gross profit   1,679 1,203
Other operating income 4 60 73
Commercial and administrative costs   (624) (599)
Research and development costs   (282) (288)
Share of profit of joint ventures 11 46 19
Group operating profit   879 408
(Loss)/profit on sale of businesses 32 (2) 9
Profit before financing costs   877 417

Financial income
5 442 372
Financial expenses 5 (842) (425)
Net financing costs*   (400) (53)

Profit before taxation**
4 477 364
Taxation 6 (130) (100)
Profit for the period   347 264

Attributable to:
Equity holders of the parent   350 263
Minority interest   (3) 1
Profit for the period   347 264

Earnings per ordinary share:
Basic 7 20.11p 15.56p
Diluted 7 19.31p 15.05p

Payments to shareholders
  (154) (140)

*Net interest payable
5 (39) (52)
**Underlying profit before taxation 2 584 364