Annual Report for the year ended 31 December 2008

8. assets and liaBilities oF disPosal GRoUPs ClassiFied as Held-FoR-sale and disContinUed oPeRation (CONTINuED)
The results of escl and its subsidiary are shown as discontinuing per the table below:
2008 2007
£'000 £'000
Fee and commission income 3,093 5,160
Fee and commission expenses (365) (62)
net fee and commission income 2,728 5,098
net trading (expense)/income (405) 642
other income/(expense) 12 (2)
TOTAL INCOME 2,335 5,738
employee remuneration expense (3,017) (3,094)
Depreciation – owned assets (144) (75)
Management recharge: depreciation (132) (91)
Management recharge: amortisation (11) (4)
Management recharge: operating lease charges (432) (226)
Amortisation of intangibles (101) (102)
legal costs (66) (100)
Auditors’ remuneration (83) (94)
other operating expenses (1,656) (1,466)
TOTAL OPERATING EXPENSES (5,642) (5,252)
OPERATING (LOSS)/PROFIT FROM DISCONTINuED OPERATIONS (3,307) 486
net finance income 9 89
(LOSS)/PROFIT BEFORE INCOME TAX FROM DISCONTINuED OPERATIONS (3,298) 575
Total income tax credit/(expense) 839 (127)
(LOSS)/PROFIT AFTER TAX FROM DISCONTINuED OPERATIONS (2,459) 448
9. oPeRatinG eXPenses
The following items have been included in arriving at operating profit from contiunuing operations:
Total Restated Exceptional
Total
Restated
2008 2007 2007 2007
£'000 £'000 £'000 £'000
OPERATING EXPENSES
employee remuneration expense (note 12) 51,141 47,841 3,447 51,288
Depreciation: owned assets 1,621 1,611 – 1,611
operating lease charges: leasehold property 1,311 1,527 – 1,527
Amortisation of intangibles 1,378 839 – 839
legal costs 858 692 140 832
Direct dealing costs 3,432 3,285 – 3,285
Auditors’ remuneration (note 11) 928 1,050 – 1,050
other operating expenses 20,532 20,925 4,041 24,966
OPERATING EXPENSES – TOTAL 81,201 77,770 7,628 85,398
10. eXCePtional oPeRatinG eXPenses
exceptional costs in 2007 relate to redundancy and provisions to terminate the systems and leases following closure of W Deb Mvl plc. other operating
expenses include those expenses incurred for wages and salaries, premises and systems which as a result of the integration of Wdeb Mvl plc are not
expected to recur. in addition, they include a net amount of £1,216,000 relating to the settlement and rectification of errors and control related issues arising
prior to the final integration of the W Deb Mvl plc businesses acquired.
notes to tHe FinanCial statements CONTINuED
FOR THE YEAR ENDED 31 DECEMBER 2008
58 The evoluTion Group plc AnnuAl reporT & AccounTs 2008