Annual Report and Accounts 2006 - Optos

Notes to the Consolidated Financial Statements
continued
4 REVENUE AND EXPENSES
Revenue
2006 2005
$’000 $’000
Sales of goods 3,059 626
Rendering of services 64,661 47,773
Group revenue 67,720 48,399
Finance revenue 1,118 78
Total revenue 68,838 48,477
No revenue was derived from exchanges of goods or services.
Expenses
2006 2005
$’000 $’000
The loss from continuing operations is stated after charging:
Depreciation charge for the period 20,919 14,397
Research and development expenditure (1) 51 88
Amortisation of software (Note 10) 354 292
Cost of inventories recognised as an expense 781 310
Operating leases 601 421
Foreign exchange differences (117) (627)
(1) In addition, $2,169,000 (2005: $2,635,000) was incurred in respect of research and development, which has not been charged in arriving at the pre-tax loss for the
period as it has been capitalised as an intangible asset. Further information is included in Note 10 to the Group accounts.
Services provided by the Group’s auditor and network firms
During the year, the Group (including its overseas subsidiaries) obtained the following services from the Group’s auditor at costs as detailed below:
2006 2005
$’000 $’000
Audit of the financial statements 128 72
Other fees to auditors:
Other regulatory services 46 –
Taxation services 384 197
Corporate finance services 670 –
The Group incurred $670k for reporting accountants’ and due diligence services from its auditors related to the IPO. This amount has not been charged in arriving at
the pre-tax loss for the period as it has been charged to the share premium account.
5 FINANCING
2006 2005
$’000 $’000
Finance costs
Bank overdraft 316 564
Convertible loans 254 –
Lease finance 5,971 5,390
6,541 5,954
Finance income
Bank interest receivable 1,118 78
Finance costs – net 5,423 5,876
48
Optos plc Annual Report & Accounts 2006