Annual Report for the year ended 31 December 2008

13. net FinanCe inCome
notes to tHe FinanCial statements CONTINuED
FOR THE YEAR ENDED 31 DECEMBER 2008
60 The evoluTion Group plc AnnuAl reporT & AccounTs 2008
Restated
2008 2007
£'000 £'000
Finance income – on cash and cash equivalents 5,576 3,094
Finance expense (997) (310)
net finance income 4,579 2,784
interest is paid on overdrawn balances with clearing or settlement institutions.
14. inCome taX eXPense
Restated
2008 2007
£'000 £'000
CuRRENT TAX:
uK corporation income tax on profit 204 4,654
corporation income tax on exceptional items – (2,288)
Adjustments in respect of prior years (690) (1,225)
Adjustments in respect of prior years – exceptional tax – (1,624)
Foreign tax 155 314
current year tax credit (331) (169)
DEFERRED TAX:
current year movement (876) (248)
Adjustments in respect of prior years (454) 845
Total income tax (credit)/expense (1,661) 428
Factors affecting the current tax charge for the year are explained below:
Restated
2008 2007
£'000 £'000
(loss)/profit before income tax from continuing operations (12,698) 3,182
(loss)/profit multiplied by the standard rate of corporation tax in the uK of 28.5% (2007: 30%) (3,619) 954
TAX EFFECTS OF:
expenses not deductible for tax purposes 4,989 5,932
schedule 23 deduction on options exercised (1,854) (1,742)
utilisation of losses (49) (2,127)
Trade losses carried back 874 –
non taxable income (621) –
Adjustment in respect of prior years (690) (2,849)
(lower) tax rates on overseas earnings (125) (113)
stock options taken to equity reserves 197 196
overseas tax credit (132) –
small companies tax relief (20) –
capital allowances (590) (420)
current year tax losses not utilised 1,309 –
CuRRENT INCOME TAX CREDIT (331) (169)
Deferred income tax (876) (776)
Deferred income tax adjustment in respect of prior periods (454) 845
change of rate from 30% to 28% – 528
CuRRENT YEAR MOVEMENT (1,330) 597
TOTAL INCOME TAX (CREDIT)/EXPENSE (1,661) 428