Savills plc - Investor relations

NOTES TO THE ACCOUNTSyear ended 31 December 20037. Pension scheme (continued)Long-term rate of Value at Long-term rate of Value at Long-term rate of Value atreturn expected at 31 December 2003 return expected at 31 December 2002 return expected at 31 December 2001The assets in the scheme & the expected rates of return were: 31 December 2003 £’000 31 December 2002 £’000 31 December 2001 £’000Equities 8.00% 31,491 8.00% 21,990 7.50% 23,092Bonds 5.00% 3,829 5.00% 4,868 5.50% 5,057Other 5.50% 2,453 5.50% 1,710 5.50% 2,315Total market value of assets 37,773 28,568 30,464Present value of scheme liabilities (63,301) (53,870) (46,912)Deficit in the scheme (25,528) (25,302) (16,448)Related deferred tax asset 7,658 7,591 4,934Net pension liability (17,870) (17,711) (11,514)31 December 2003 31 December 2002Net assets £’000 £’000Net assets excluding pension liability 97,683 89,139Pension liability (17,870) (17,711)Net assets including pension liability 79,813 71,42831 December 2003 31 December 2002Reserves £’000 £’000Profit & loss account excluding pension liability 51,707 43,834Pension liability (17,870) (17,711)Profit & loss account 33,837 26,12331 December 2003 31 December 2002Analysis of amount charged to operating profit £’000 £’000Current service cost 2,394 2,541Past service cost 42 -Gains & losses on any settlements & curtailments - -Total operating charge 2,436 2,54131 December 2003 31 December 2002Analysis of amount credited to other finance income £’000 £’000Expected return on pension scheme assets 2,229 2,257Interest on pension scheme liabilities (3,040) (2,788)Net return (811) (531)31 December 2003 31 December 2002Analysis of amount recognised in Statement of Total Recognised Gains & Losses (STRGL) £’000 £’000Actual return less expected return on pension scheme assets 3,378 (7,565)Experience gains & losses arising on the scheme liabilities 658 717Changes in financial assumptions underlying the scheme liabilities (4,200) (1,748)Actuarial loss recognised in STRGL (164) (8,596)53