Total Operating Expenses

Total operating expenses for the Group excluding exceptional items were £21.0m, a 4% increase on the prior year (2008: £20.2m). This increase was driven by Sterling’s weakness which added £1.6m to expenses compared to the prior year. On a constant exchange rate basis, total operating expenses fell by £0.2m in the year, reflecting the initial impact of the restructuring activities undertaken in the year.

A renewed focus on sales and marketing increased these costs by 1.5%, in addition to the impact of Sterling’s weakness on costs. Other administrative expenses decreased by £0.3m after the impact of currency movements as a result of the restructuring efforts. This was in spite of an increase in amortisation of £0.3m (at constant exchange rates), demonstrating our resolute commitment to growing the business while keeping costs under tight control.

Read more