3. OPERATING COSTS

Costs by type 1997 £M % CHANGE 1996 £M % CHANGE1995 £M
Wages, salaries, commission and allowances 729 (2) 748 12 666
Social security costs 62 (3) 64 5 61
Other pension costs (see note 24) 44 1 44 10 39
Staff costs 835 (2) 856 12 766
Services 585 9 539 5 512
Depreciation 312 10 283 13 250
Communications 201 - 202 4 194
Space 142 (6) 150 8 140
Data 207 6 195 16 168
Other 64 9 59 (28) 82
Currency hedging activities - net (gain)/loss (56) - (5) - 33
Foreign currency translation - net (gain)/loss - - (6) - 7
2,290 1 2,273 6 2,152

Services costs include equipment hire and bought-in services, including consultancy and contractors, advertising and publicity, professional fees and staff-related expenses.

Costs by function 1997 £M % CHANGE 1996 £M % CHANGE1995 £M
Production and communications costs 1,626 2 1,597 3 1,552
Selling, marketing and administrative expenses 664 (2) 676 13 600
2,290 1 2,273 6 2,152

Costs include: 1997 £M % CHANGE 1996 £M % CHANGE1995 £M
Development expenditure 235 17 202 5 191
Operating lease expenditure:
  Hire of equipment 14 (4) 14 (17) 17
Other, principally property 72 (4) 75 3 73
Advertising costs 17 (15) 21 26 16
Fees payable to Price Waterhouse were as follows:
Audit fees:
United Kingdom 0.9 - 0.9 (1) 0.9
Overseas 1.0 (9) 1.1 7 1.0
1.9 (5) 2.0 3 1.9
Non-audit services:
United Kingdom 0.9 - 0.9 80 0.5
Overseas 5.3 10 4.8 194 1.7
6.2 9 5.7 159 2.2
8.1 5 7.7 88 4.1

The United Kingdom audit fee of £0.9 million includes £10,000 in respect of the parent company audit.

previous next