Section image

4. Operating costs and share of results of associates

Operating costs include:


 
 
 
 
Six months
ended
30 June
2010
£m
Six months
ended
30 June
2009
£m

Year ended
31 December
2009
£m
Amortisation and impairment of acquired intangible assets 87.0 88.1 172.6
Goodwill impairment 10.0 40.0 44.3
Gains on disposal of investments (6.8) (8.4) (31.1)
Investment write-downs 2.2 4.3 11.1
Staff costs 2,684.1 2,662.5 5,117.0
Other operating costs 963.2 969.9 1,905.1
  3,739.7 3,756.4 7,219.0

The goodwill impairment charge of £10.0 million (30 June 2009: £40.0 million of which £22.2 million related to associates) 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
2010
£m
Six months
ended
30 June
2009
£m

Year ended
31 December
2009
£m
Share of profit before interest and taxation 38.7 30.5 86.3
Share of exceptional (losses)/gains (0.4) 0.3 (1.6)
Share of interest and non-controlling interests (1.3) (0.4) (0.7)
Share of taxation (14.7) (10.6) (27.0)
  22.3 19.8 57.0

Share This

Close