NOTES TO THE FINANCIAL STATEMENTS
7. OPERATING COSTS
2010 |
2009 |
|
Manpower costs (note 13) |
132.3 |
108.6 |
Raw materials and consumables |
76.3 |
59.1 |
Other operating expenses include: |
||
Profit on disposal of property, plant and equipment |
(3.6) |
(2.1) |
Operating lease rentals payable: |
||
- Plant and machinery |
7.7 |
6.9 |
- Property |
6.3 |
5.2 |
Research and development expenditure |
0.2 |
0.2 |
Trade receivables impairment |
7.9 |
6.7 |
Depreciation of property, plant and equipment: |
||
- Owned assets |
98.8 |
97.1 |
- Under finance leases |
36.3 |
34.2 |
Amortisation of other intangible assets (note 16) |
0.3 |
1.2 |
Fees payable to the Group's auditors in the year were:
2010 £000 |
2009 £000 |
|
Fees payable to the Company's auditors for the audit of the Company's accounts |
47 |
47 |
Fees payable to the Company's auditors for other services to the Group: |
||
Audit of the Company's subsidiaries pursuant to legislation |
360 |
316 |
Total audit fees |
407 |
363 |
Other services pursuant to legislation |
103 |
130 |
Tax services |
199 |
135 |
Services relating to corporate finance transactions |
1,346 |
570 |
All other services |
31 |
37 |
2,086 |
1,235 |
|
Fees payable to the Company's auditors in respect of Pennon Group pension schemes: Audit |
24 |
24 |
Expenses reimbursed to the auditors in relation to the audit of the Group were £38,000 (2009 £31,000).
Corporate finance services in 2010 include fees of circa £1.2m relating to the conclusion of the Financial Close of the Greater Manchester PFI contract.
A description of the work of the Audit Committee is set out in its report; Corporate governance and internal control, which includes an explanation of how auditor objectivity and independence are safeguarded when non-audit services are provided by the auditors.