6  Expenses by nature

Expenses by nature

2009 £’000

2008 £’000

Cost of inventory recognised as an expense

8,765

9,244

Royalties payable

87

424

Depreciation on property plant and equipment

493

572

Impairment charges

915

381

Amortisation of intangible assets*

2,084

1,483

Employee benefit expense (note 7)

8,132

8,785

Foreign exchange gains

(2,393)

(3,694)

Operating leases – Land and Buildings

758

845

Operating leases – other

28

–

Research and development (excluding salary costs)

392

856

Loss/(profit) on disposal of property, plant & equipment

56

(15)

Loss/(profit) on sale or disposal of products rights

102

(35)

Legal and professional fees including patents costs

2,041

2,448

Distribution expenses (excluding salary costs)

858

793

Selling and marketing costs (excluding salary costs)

4,060

4,163

Restructuring charges (note 5)

1,442

–

Other expenses

5,324

1,830

Total cost of sales, selling, marketing and distribution and administrative expenses

33,144

28,080

*Amortisation and impairment of intangible fixed assets is included in the income statement under administrative expenses.

Services provided by the Group’s auditor

During the year the Group obtained services from the Group’s auditor as described below:

2009

£’000

2008

£’000

Fees payable to company’s auditors for the audit of parent company and consolidated financial statements

130

124

Fees payable to company’s auditors and its associates for other services

Audit of accounts of the Group’s subsidiaries pursuant to legislation

63

71

Services relating to corporate finance transactions entered into or proposed to be entered into by the Group

106

–

Services relating to taxation

19

27

All other services

25

50

343

272