BHS Profits Performance 2010 - 2014

Analysis of BHS Gross, Operating and Tax Paid Profits and Losses over Five Years to 2014 – An lesson in how not to run a business.

Source of Data

This summary of profits (or rather losses) at BHS over five years to 2014 is derived from the audited accounts of the company.

Year 2014 2013 2012 2011 2010
Sales 668,037,000 675,653,000 699,769,000 740,313,000 794,883,000
Cost of Goods Sold 673,666,000 676,540,000 709,602,000 731,618,000 743,437,000
Gross Profit / Loss -5,629,000 -887,000 -9,833,000 8,695,000 51,446,000
Gross Profit Margin -0.84% -0/13% -1.41% 1.17% 6.47%
Operating Overheads 49,649,000 49,432,000 55,894,000 52,356,000 57,671,000
Operating Profit / Loss -55,278,000 -50,319,000 -65,727,000 -43,661,000 -6,225,000
Tax Paid Profit / Loss for the Year -69,080,000 -55,290,000 -82,118,000 -36,810,000 -6,996,000

Gross Profit and Gross Profit Margin

Normally simply the difference between sales and cost of goods sold represents the gross profit. Cost of goods sold is calculated as opening stock plus purchases less closing stock.

In the case of these accounts though other overheads and expenses have been charged to the cost of sales, including wages and rents and rates. It is more usual to charge these individually in the selling expenses section of the profit and loss account.

Operating Overheads and Profits

Those expenses which are directly and exclusively associated with the operating (i.e. core trading) activities of a business represent the operating overheads.

Deducting these from gross profit represents the operating profit of a business. Exceptional items such as income or expenditure connected with investments, interest charges or the disposal of non-trading assets are only deducted once the operating profit has been struck.

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