Punch Taverns plc 2007 Annual Report and Financial Statements

3 Analysis of expenses
The following items have been included in arriving at operating profit:
52 weeks to
18 August
2007
£m
52 weeks to
19 August
2006
£m
Drink and food costs 516.9 495.6
Managed pub running costs 358.5 336.4
Leasehold rentals 51.3 45.9
Depreciation 47.1 37.1
Amortisation 9.4 9.0
Other costs 1 136.5 70.1
Total costs deducted from revenue to determine operating profit 1,119.7 994.1
1
Included within other costs are £20.3m (August 2006: £8.2m) of exceptional costs.
Included in operating costs is the auditors’ remuneration, as follows:
52 weeks to
18 August
2007
£m
52 weeks to
19 August
2006
£m
Statutory audit services
Audit of Group financial statements 0.3 0.4
Audit of subsidiary companies 0.2 0.2
Non-audit related services
Other services 1 – –
1
In addition to auditors’ remuneration set out above, fees of £0.1m were incurred relating to refinancing (August 2006: £0.2m relating to the acquisition of
subsidiaries (note 29)).
4 Finance income
52 weeks to
18 August
2007
£m
52 weeks to
19 August
2006
£m
Bank interest receivable 17.6 19.1
Net pension finance income (note 31) 2.6 –
Total finance income 20.2 19.1
5 Finance costs
52 weeks to
18 August
2007
£m
52 weeks to
19 August
2006
£m
Interest payable on bank borrowings 36.7 44.2
Interest payable on loan notes 1 270.8 249.7
Interest payable on convertible bonds 22.7 15.0
Interest payable on finance leases 1.6 1.6
Other interest payable 3.7 2.3
Net pension finance expense (note 31) – 0.1
Amortisation of deferred issue costs 11.4 16.1
Effect of unwinding discounted provisions 1.7 2.1
Exceptional finance costs (note 6) 10.9 0.1
Total finance costs 359.5 331.2
1
Interest payable on loan notes is net of £15.0m credit (August 2006: £12.4m credit) for the amortisation of fair value adjustments.
Punch Taverns plc Annual Report and Financial Statements 2007 613