The consolidated income statement for Babcock International Group PLC is presented here:

consolidated income statement for Babcock International Group PLC is">

The income statement does not disclose any detail on the operating expenses that were subtracted in determining operating profit, but refers readers to several notes (Notes 3, 4, 5, and 6). The income statement also does not explain the nature or amount of "exceptional items," which are items unlikely to recur in future years.
In analyzing Babcock's financial statements, you would like to determine the company's gross profit margin for the current year, and you also would like to develop an estimate of sustainable income, that is, the income generated in the current year that is likely to persist into the future.
Required:
Access Babcock International Group's 2009 annual report at www.babcock .co.uk and use the information in Notes 4 and 6 to:
a. Determine gross profit and gross profit margin (Gross Profit/Revenue) for 2009.
b. Estimate sustainable income for 2009. Sustainable income is equal to total income less items included in total income that are unlikely to recur. Indicate any assumptions made in estimating sustainable income.

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roup Income Statement For the year ended 31 arch 2009 Note Before Acquired Intangible Amortization and Exceptional Items Em Acquired Intangible Amortization Total £m and Exceptional Items Em venue 1,901 1,901 rating profit 147 (14.2 133.1 Share of profitloss from (0.2 (0.2 oint ventures inance costs inance income (32.1 (32.1 5.9 5.9 Profit before tax Income tax expense Profit for the year from 120 (23.1 97 14.2 106.7 4.0 (19.1 (10.2) 87.6 ontinuing operations iscontinued operations oss for the year from (13.3) (13.3 iscontinued operations Profit for the year 97 (23.5 74.3