Key Data Definitions

Company Reporting aims to provide neutral and standardised business information statisitics. Our definitions for business information are:

Turnover - Net sales revenue for the year. Excludes any grant income disclosed as part of turnover. For banks, turnover is defined as “Total (operating) income" as disclosed in the profit & loss account, excluding any provision for bad debts. For insurance companies, sales are defined as gross premiums plus any net banking income. For Insurance companies reporting under IFRS, sales are taken as the "Total revenue" line less any banking expenses such as interest/commission fees to reflect a net banking figure.

Value added - the difference between sales turnover and the cost of bought in goods and services. This is accounting value added and should be distinguished from (i) economic value added as promoted by Stern Stewart & Co; and (ii) classical value added, well known to economic theorists but which focuses only on non-financial productive processes. "Value added" is equivalent to the sum of operating profit (or loss), depreciation, amortisation, impairment and employment costs. It is also equivalent to EBITDA plus employment costs.

EBITDA - Earnings before interest, taxation, depreciation and amortisation; it is equivalent to the aggregate of operating profit, depreciation, amortisation and impairment.

Operating profit - profit before tax, less any grants received, plus net financial expense (or minus net financial income), less gains (or plus losses) arising from the sale/disposal of businesses or fixed assets. Profits/losses on the disposal of businesses and fixed assets are excluded from operating profit on the basis they are not operating items.

Profit before tax - the profit (or loss) before tax for the year as disclosed in the income statement.

Net assets - the net assets as disclosed in the balance sheet.

Number of employees - the average number of employees for the year; if the average figure is not given, the year-end figure is taken.

Industry classification - using the Industry Classification Benchmark (ICB), the company's industry classification at subsector (4 digit) level.