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Q1(ii)
Operating profit margin: how the operating margin of 2.3% is obtained?
Organic revenue growth – Why the current figure would fall from 7.2% to 3.9%? I don’t understand..
See second para of (ii)
Operating profit is currently 1542 x 5.9% = 91.
If reorganisation costs are deducted this becomes 91 – 55 = 36
Op profit % is then 36/1542 = 2.3%
Revenue growth has been calculated as 7.2%. Actual revenue is 1542, so before the 7.2 growth, revenue was 1542 x 100/107.2 = 1438.
Removing revenue from acquisitions reduces this year’s to 1542 – 48 = 1494.
Growth is then only 1494/1438 = 1.039 ie 3.9%.
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