UK Accounting Glossary
Trading Profit is the profit that an investor derives from buying and selling short-term securities, or those held by the investor for less than one year.
The profit of an organisation before deductions for such items such as interest, director’s fees, auditors’ remuneration, etc.
When calculating net trading profit, stocks are valued at either the cost or replacement value, depending on whichever is the lower.
Whilst the company has not yet made a trading profit, it certainly shows every prospect of doing so in the long term.
Last year, the company’s trading profit before charge on interest was £63 million.
The results showed a trading profit of £15.7 million on a turnover of £367 million.
We’ve seen trading profit rising grow from £30 million to £67 million in just two years.
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This glossary post was last updated: 4th May 2019.