| 2016
£m | 2015
£m |
|---|
| Revenue | 600.6 | 567.2 |
| Cost of sales | (378.4) | (359.0) |
| Gross profit | 222.2 | 208.2 |
| Other operating income | 4.4 | 4.1 |
| Distribution costs | (20.9) | (18.5) |
| Administration expenses* | (101.7) | (93.8) |
| Other operating (expenses)/income | (4.4) | 2.1 |
| Headline operating profit | 99.6 | 102.1 |
| Amortisation of acquired intangible fixed assets* | (4.5) | (4.2) |
| Operating profit prior to exceptional items | 95.1 | 97.9 |
| Exceptional items* | (0.6) | (20.0) |
| Operating profit | 94.5 | 77.9 |
* Administration and exceptional expenses total £106.8m (2015: £118.0m).
Exceptional items comprise:
| 2016
£m | 2015
£m |
|---|
| Acquisition costs | 0.6 | – |
| Reorganisation costs | – | 20.0 |
| 0.6 | 20.0 |
Further details of acquisition and reorganisation costs are included in the Chief Financial Officer's report.
Profit for the year has been arrived at after charging/(crediting):
| 2016
£m | 2015
£m |
|---|
| Net foreign exchange (gains)/losses | (0.5) | 0.4 |
| Inventory expensed | 48.2 | 44.5 |
| Depreciation of property, plant and equipment | 54.1 | 48.8 |
| Amortisation of intangible fixed assets | 5.6 | 5.0 |
| Gain on disposal of property, plant and equipment | (4.5) | (2.1) |
| Staff costs (see note 4) | 239.5 | 220.3 |
| Acquisition costs | 0.6 | – |
| Impairment loss on trade receivables | 1.2 | 1.3 |
| Impairment of fixed assets – recognised in exceptional items | – | 9.0 |
| Impairment of fixed assets – recognised in operating profit | 5.1 | – |
| Impairment of other assets – recognised in exceptional items | – | 0.5 |
The analysis of auditor's remuneration on a worldwide basis is as follows:
| 2016
£m | 2015
£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 | 0.7 | 0.6 |
| Total audit fees | 0.8 | 0.7 |
| Audit related assurance services* | 0.1 | 0.1 |
| Taxation compliance services | – | 0.1 |
| Total non-audit fees | 0.1 | 0.2 |
| 0.9 | 0.9 |
In addition to the amounts shown above, the auditor received fees of £6,800 (2015: £5,900) 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.
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.
* This includes £0.1m (2015: £0.1m) for the review of the half year report.