Day 247 - 10 May 96 - Page 43


     
     1
     2   Q.   But they are included as part of the advertising spend?
     3
     4   MR. JUSTICE BELL: (To the witness): The 46m or 47m which you
     5        have just mentioned, is that the equivalent in 1993 of the
     6        41m there, or the 41 plus the 5m, or the 41 plus the 5m
     7        plus the 2m?
     8        A.  When I say "advertising", as I did, 5 per cent of our
     9        sales goes to the co-op, the advertising co-op.  Those
    10        monies are spent on making commercials.
    11
    12   Q.   I think I misunderstood "General Facts".  The 41m there
    13        includes the 5m spent on local store marketing and 2m on
    14        national and community projects; does it?
    15        A.  That is how I read it.
    16
    17   Q.   And the 46m or 47m you have given me?
    18        A.  It will include ----.
    19
    20   Q.   For this year is the equivalent of the 41m there or not?
    21        A.  It misses the local store marketing piece; it has got
    22        everything else.  The 5m local store marketing is another
    23        piece.
    24
    25   MS. STEEL:  So it will be?
    26        A.  When I add in.
    27
    28   Q.   51m or 52m?
    29        A.  Excuse me?
    30
    31   Q.   The total spend this year will be 51m or 52m?
    32        A.  It might be 53m or 54m.
    33
    34   MR. JUSTICE BELL: Yes, Because the local store may have gone up
    35        as well?
    36        A.  May have gone up a bit.
    37
    38   MS. STEEL:   Again that would include sponsorship and such like?
    39        A.  It includes some sponsorship.  It does not include
    40        everything, but it is probably 98 per cent of it.
    41
    42   Q.   Right.  Seeing as we are on the same page, the note at the
    43        bottom says:
    44
    45        "UK system wide sales in 1993 were 650,851,000, running an
    46        operating profit of £75.4m and that profit after tax for
    47        the year end 31st December 1993 was £20,046,000."
    48
    49   MR. JUSTICE BELL: Can I just come back to something you said
    50        this morning about return on investors' money?  As 
    51        I understand it, what you are saying is it is not just a 
    52        question of those who are running the Company deciding that 
    53        they will pay more to employees, and have a pre-tax and
    54        post-tax profit which is less, because if the Company is
    55        going to continue at all, it needs people to own its
    56        shares?
    57        A.  That is correct, sir.
    58
    59   Q.   If they no longer find that the Company is giving them a
    60        sufficient return on their money, we talk about the

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