| This is arrived at after charging: |
| |
2004
£m |
2003
£m |
| Depreciation on owned assets |
4 |
6 |
| Depreciation on hire purchase assets |
1 |
1 |
| |
| Auditors’ remuneration |
| The auditors received fees for the statutory audit of the
Group of £0.8 million (2003: £0.7 million), which included £0.2 million
(2003: £0.2 million) for the Company. Total fees paid by the Group to Ernst
& Young LLP are analysed below: |
| |
2004
£m |
2003
£m |
| Audit services |
|
|
| Statutory audit fee - UK |
0.5 |
0.5 |
| Statutory audit fee
- Overseas |
0.3 |
0.2 |
| Audit related regulatory reporting – UK |
0.1 |
0.1 |
| Total audit services |
0.9 |
0.8 |
| Further assurance services |
0.1 |
0.1 |
| Tax services (compliance and advisory services) |
0.2 |
0.2 |
| Other services: |
|
|
| Investment due diligence |
0.4 |
0.1 |
| Secondment to the Group’s investment business |
0.1 |
- |
| Repatriation and HR advice |
- |
0.2 |
| Total other fees |
0.8 |
0.6 |
| Audit services are services required to be undertaken by the
auditors which include the statutory and interim audits, regulatory returns
and formalities relating to borrowing, shareholder and other circulars.
This work is normally allocated to the auditors. |
| Tax and further assurance services are services which it is
most efficient for the auditors to provide and is allocated to them subject
to consideration of any impact on their independence. |
| Other services are services that could be provided by a number
of firms, including general consultancy work. All significant consultancy
projects are normally put out to tender and work would be allocated to the
auditors only if it did not present a potential threat to the independence
of the audit team. Other services in this category include due diligence
within the investment process. If this were to be provided by the auditors,
the specific team engaged would be independent of the audit. |
| In addition to the above the Group has identified £2.2 million
of investment related fees paid to Ernst & Young LLP by investee companies,
where the Group’s investee companies and investment teams have appointed
the service provider. It is estimated that Ernst & Young LLP receive less
than 10% of the total investment related fees paid to the four largest accounting
firms. |
