Annual Reports Keepmoat Homes Annual Report 2018 | Page 38

Notes to the consolidated financial statements
Keepmoat.com
3 – Operating profit
Operating profit for the year includes the following:
Continuing operations
Depreciation of property, plant and equipment
Profit on disposal of property, plant and equipment excluding exceptional items
Inventories expensed through cost of sales
Amortisation of intangible assets
Operating lease rentals
Exceptional items (note 4)
2018 2017
£’000 £’000
880 1,157
(2,319) -
397,900 318,512
5,018 1,879
690 654
17,554 4,825
Earnings before interest, tax, depreciation, amortisation and exceptional items (EBITDA) is calculated as follows:
2018 2018
Continuing operations £’000 £’000
Operating profit 18,164 28,131
Exceptional items 17,554 4,825
4,415 1,290
Impairment losses of investments in associated companies 642 -
Acquisition fair value adjustment to inventory* 890 -
41,665 34,246
Depreciation 880 1,157
Amortisation of computer software 603 589
43,148 35,992
Amortisation of acquisition intangible assets
Adjusted EBIT
Adjusted EBITDA
*As a result of the acquisition of MCI Developments Limited in January 2017, inventory was acquired, which included a fair
value adjustment to its book value of £890k. All of the inventory relating to the fair value adjustment was sold during the
current year.
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