The following items have been charged within operating profit (continuing operations only):
| 2008 £m |
2007 £m |
||
| Employee benefit costs | 29.8 | 29.6 | |
| Sub-contractors’ costs | 26.4 | 27.3 | |
| Operating lease payments | 4.3 | 3.7 | |
| Amortisation of intangibles | 0.1 | – | |
| Depreciation of plant, property and equipment | 1.3 | 1.7 | |
| Loss on disposal of plant, property and equipment | 0.9 | – | |
| Impairment of trade receivables | – | 0.1 | |
| Net foreign exchange gains | (0.1) | (0.1) | |
| Other external charges | 12.9 | 11.1 | |
| Total cost of goods sold, selling, marketing, distribution & administrative expenses (excluding significant one-off items) | 75.6 | 73.4 |
| The significant one-off items as shown on the face of the Consolidated income statement have also been charged within operating profit. |
| 2008 £m |
2008 £m |
2007 £m |
2007 £m |
|||
| Transaction services | 0.6 | 75% | 0.7 | 70% | ||
| Taxation services | 0.1 | 13% | – | – | ||
| Other services pursuant to legislation | – | – | 0.1 | 10% | ||
| 0.7 | 88% | 0.8 | 80% | |||
| Statutory audit (Group consolidation and parent Company) | 0.1 | 12% | 0.2 | 20% | ||
| 0.8 | 100% | 1.0 | 100% |
| A description of the work of the Audit Committee is set out in the “Corporate governance” section of the Annual Report and includes an explanation of how auditor objectivity and independence is safeguarded when non-audit services are provided by the auditors. |
Employee benefit expense (continuing and discontinued operations) charged to the income statement
| Group | Company | ||||||
| 2008 £m |
2007 £m |
2008 £m |
2007 £m |
||||
| Wages and salaries | 25.1 | 39.5 | 25.0 | 30.9 | |||
| Social security costs | 2.2 | 3.6 | 2.1 | 3.0 | |||
| Share options | 0.1 | 0.2 | 0.1 | 0.2 | |||
| Pension costs – defined contribution plans | 0.6 | 1.2 | 0.6 | 1.1 | |||
| Pension costs – defined benefit plans (note 27) | 2.1 | 3.2 | 2.1 | 2.8 | |||
| Other post-employment benefits (note 27) | – | 0.3 | – | – | |||
| 30.1 | 48.0 | 29.9 | 38.0 | ||||
Number of employees (continuing and discontinued operations)
| Group | Company | ||||||
| 2008 No. |
2007 No. |
2008 No. |
2007 No. |
||||
| Average headcount: | |||||||
| United Kingdom | 725 | 931 | 709 | 898 | |||
| Europe | 7 | 51 | – | – | |||
| North America | – | 112 | – | – | |||
| Rest of World | – | 3 | – | – | |||
| 732 | 1,097 | 709 | 898 | ||||