Notes 1-5
For the half year ended 30 June 2008
- 1. Basis of accounting
- 2. Accounting policies
- 3. Currency conversion
- 4. Operating costs and share of results of associates
- 5. Finance income and finance costs
4. Operating costs and share of results of associates
Operating costs include:
| Six months ended 30 June 2008 £m |
Six months ended 30 June 2007 £m |
Year ended 31 December 2007 £m |
|
|---|---|---|---|
| Amortisation and impairment of acquired intangible assets |
25.5 | 17.1 | 40.3 |
| Goodwill impairment | 20.0 | 29.0 | 44.1 |
| Goodwill write-down relating to utilisation of pre-acquisition tax losses |
0.7 | 1.0 | 1.7 |
| Gains on disposal of investments | (3.6) | (3.0) | (3.4) |
| Write-downs of investments | 12.3 | – | – |
| Share-based incentive plans (including share options) |
30.2 | 33.3 | 62.4 |
| Other operating costs | 2,696.1 | 2,372.8 | 4,900.6 |
| 2,781.2 | 2,450.2 | 5,045.7 |
The goodwill impairment charge of £20.0 million (30 June 2007: £29.0 million) relates to a number of under-performing businesses in the Group. In certain markets, the impact of current local economic conditions and trading circumstances on these businesses is sufficiently severe to indicate an impairment to the carrying value of goodwill. The Directors will reassess the need for any further impairment write-downs at year end.
Share of results of associates include:
| Six months ended 30 June 2008 £m |
Six months ended 30 June 2007 £m |
Year ended 31 December 2007 £m |
|
|---|---|---|---|
| Share of profit before interest and taxation |
32.8 | 31.5 | 65.8 |
| Share of exceptional gains | – | – | 0.8 |
| Share of interest and minority interest | 0.2 | 0.7 | 0.5 |
| Share of taxation | (12.3) | (12.7) | (25.7) |
| 20.7 | 19.5 | 41.4 |