PORT OF TYNE ANNUAL REPORT AND ACCOUNTS 2011

28/ANNUAL REPORT AND ACCOUNTS 2011
NOTES TO THE FINANCIAL STATEMENTS/29
4. OPERATING PROFIT
This is stated after charging/(crediting):
Auditors’ remuneration – Ernst & Young LLP:
Group – audit
– fees paid to the auditor and its associates
in respect of other services
Authority – audit (included above)
Depreciation and other amounts written off tangible fixed assets:
Owned
Leased
5. STAFF COSTS
The average number of persons employed
by the group (including directors) during the
year, analysed by category, was as follows:
Details of the emoluments of the directors
of the Authority are given in the Directors’
Report on page 15.
2011
(£000’s)
43
—
28
5,904
186
2010
(£000’s)
43
228
30
4,584
187
Amortisation of goodwill 35 34
Hire of plant and machinery – rentals payable under operation leases 1,636 1,559
(Profit)/Loss on disposal of tangible fixed assets (132) 162
After crediting:
Amortisation of grants
Amortisation of relocation contribution
Group
2011
(£000’s)
Group
2010
(£000’s)
(494)
(159)
Authority
2011
(£000’s)
(497)
(160)
Authority
2010
(£000’s)
Wages and salaries 14,866 14,980 11,117 11,472
Social security costs 1,521 1,407 1,150 1,058
Other pension costs:
– Net current service cost with operating profit (note 21)
– Net past service debt/(credit) within operating
profit (note 21)
– Other pension costs
386
—
256
363
4
300
386
—
214
363
4
257
17,029 17,054 12,867 13,154
6. TAX
a) Tax on charge on ordinary activities
The tax charge is made up as follows:
Current tax
UK corporation tax on the profit for the year
Adjustments in respect of prior periods
2011
(£000’s)
2,376
(277)
2010
(£000’s)
Total current tax (note 6b) 2,099 872
Deferred tax
Origination and reversal of timing differences
Adjustment in respect of previous years
Effect of change in tax rate
Deferred tax on FRS 17 movement
706
281
(487)
(24)
872
—
917
42
(190)
(20)
Total deferred tax (note 17) 476 749
Tax on profit on ordinary activities 2,575 1,621
b) Factors affecting current tax charge
for the year:
The tax assessed for the year is less than
the standard rate of corporation tax in the
UK of 26.5% (2010 – 27%). The differences
are explained below:
2011
(£000’s)
2010
(£000’s)
Profit on ordinary activities before tax 8,953 4,400
Tax on ordinary activities multiplied by standard rate or
corporation tax in the UK of 26.5% (2010 – 27%) 2,372 1,232
Effects of:
Income not taxable
Expenses not deductible for tax purposes
Capital allowances for period more than depreciation
Adjustments to tax charge in respect of previous periods
Marginal relief
Other short term timing differences
—
743
(635)
(277)
(2)
(102)
—
580
(785)
—
(4)
(151)
Current tax for the year (note 6a) 2,099 872
Group
2011
(No.)
Group
2010
(No.)
Authority
2011
(No.)
Authority
2010
(No.)
Directors of the Authority 12 12 12 12
Operational management and administration 71 67 39 38
Engineering 62 67 62 67
Marine Services 60 63 60 63
Bulk Cargo 51 63 51 63
Cruise and Ferries 29 29 29 29
Logistics 161 147 59 51
446 448 312 323
c) Factors affecting future tax charges
The UK government has announced its
intention to reduce the UK corporation
tax rate to 23% by 1 April 2014. The
reduction from 28% to 26% was
substantively enacted on 29 March 2011
and came into effect on 1 April 2011.
A hybrid rate of 26.5% therefore applies
to current tax liabilities arising during the
period. A reduction from 26% to 25%
was substantively enacted on 5 July 2011
and will come into effect on 1 April 2012.
At the balance sheet date, the change in
the tax rate to 25% has no effect on current
tax liabilities arising prior to the effective
date of change. The enacted reduction to
25% will however apply to any deferred tax
assets and liabilities arising at the balance
sheet date of which none are recognised.
The future tax charge will also be affected
by the Government’s intention to reduce the
main rate of capital allowances from 20%
to 18% and from 10% to 8% with effect
from 1 April 2012.