Notes to the consolidatedfinancial statements continued8 Employee expenses<strong>2013</strong>Continuingoperations£’000Continuingoperations£’0002012Discontinuedoperations£’000Wages, salaries and fees 48,351 40,661 1,414 42,075Social security costs 4,898 5,075 148 5,223Pension costs 1,400 1,286 62 1,34854,649 47,022 1,624 48,646Total£’000Share-based payments 1,246 1,956 72 2,02855,895 48,978 1,696 50,674The average monthly number of employees of the <strong>Group</strong> (including directors) during the year was:<strong>2013</strong>ContinuingoperationsContinuingoperations2012DiscontinuedoperationsTotalDevelopment and operations 674 601 23 624Sales and marketing 167 158 1 159Management & administration 110 92 1 93951 851 25 876The remuneration of the directors of the Company was as follows:<strong>2013</strong>Continuingoperations£’000Continuingoperations£’0002012Discontinuedoperations£’000Emoluments 817 725 – 725Share-based payments – 766 – 766Total 817 1,491 – 1,491Total£’000Highest paid directorGross salary 450 210 – 210Car and other benefits in kind 1 3 – 3Waived salary and bonus to charity – 206 – 206451 419 – 419In the year ended 28 February <strong>2013</strong>, six directors were remunerated as employees through payroll and onedirector was remunerated via a consultancy fee paid to Marwyn Capital LLP which is included in the directors’remuneration <strong>report</strong>.Vin Murria received £0.3m gross salary and £0.2m bonus during the year. The directors believe that the keymanagement personnel are the executive directors.50<strong>Advanced</strong> <strong>Computer</strong> <strong>Software</strong> <strong>Group</strong> <strong>plc</strong><strong>Annual</strong> Report <strong>2013</strong>
9 Taxation<strong>2013</strong>Continuingoperations£’000Continuingoperations£’0002012Discontinuedoperations£’000UK corporation tax 3,991 4,694 321 5,015UK deferred tax (3,960) (4,203) (170) (4,373)31 491 151 642The tax charge for the year is lower than the standard rate of 24% (2012: 26%) corporation tax in the UK asexplained below:<strong>2013</strong>Continuingoperations£’000Continuingoperations£’0002012Discontinuedoperations£’000Tax reconciliation:Profit on ordinary activities before tax 9,163 6,431 5,376 11,807UK corporation tax at 24% (2012: 26%) 2,200 1,672 1,398 3,070Effects of:Items not deductible/taxable for tax purposes 508 489 (1,252) (763)Additional deduction for R&D expenditure (46) (89) – (89)Other timing differences (164) – (3) (3)Overseas tax differences 28 68 – 68Relief for employee share schemes (316) – – –Utilisation of previously unrecognised tax losses (101) (5) – (5)Prior year adjustment (1,220) (309) (2) (311)Change in tax rate (858) (1,335) 10 (1,325)Tax charge for the year 31 491 151 642Total£’000Total£’000Overview Business review Governance FinancialsThe <strong>Group</strong> has recognised a zero tax charge for the year (2012: £0.7m). The effective tax rate of 0% (2012: 6%) hasbeen driven by adjustments to deferred tax as a result of the change in the UK corporation tax rate (credit: £0.9m)and prior year adjustments (credit: £1.2m). The effective rate excluding these adjustments would be 23% (2012: 30%)which is lower than the statutory rate of 24% as a result of additional R&D relief and relief in respect of the exerciseof options of £0.6m less non-tax deductible expenses of £0.5m.On 3 July 2012 a 23% rate of UK corporation tax was enacted. The <strong>Group</strong> benefited from a £0.9m reduction in the<strong>2013</strong> tax charge as a result of the reduction of the net deferred tax liabilities as at 28 February <strong>2013</strong> from 25% to 23%.Further reductions in the UK corporation tax rate are being discussed and are likely to be enacted.10 Earnings per shareThe basic earnings per share has been calculated by dividing the net profit attributable to ordinary shareholders bythe weighted average number of shares in issue during the relevant period.Basic earnings per share<strong>2013</strong>ContinuingoperationsContinuingoperations2012DiscontinuedoperationsTotalNet earnings attributable to ordinary shareholders (£’000) 9,132 5,940 5,225 11,165Weighted average number of ordinary shares in issue 346,407,684 337,539,801 337,539,801 337,539,801Basic earnings per share 2.6p 1.8p 1.5p 3.3p<strong>Advanced</strong> <strong>Computer</strong> <strong>Software</strong> <strong>Group</strong> <strong>plc</strong><strong>Annual</strong> Report <strong>2013</strong>51