Note 7: Reconciliation of pro-forma financial measures

 

	Note	2007 £'000		2006 (restated)* £'000
Profit on ordinary activities before taxation		4,473		3,003
Reorganisation costs	4	295		700
Amortisation and amounts written off intangible assets	12	826		727
Unwinding of discount on deferred consideration1	5	170		-
Profit on sale of division2		(151	)	-
Adjusted profit on ordinary activities before taxation		5,613		4,430

Adjusted profit on ordinary activities before taxation has been presented to provide additional information which may be useful to the reader.
1      As required by FRS12 – “Provisions, Contingent Liabilities and Assets”, an interest charge of £170,000 has been recognised during the period in relation to the deferred consideration payable for OutCast Communications. The £170,000 is reported within “interest payable and similar charges” in the Group profit and loss account.

2      On 31 August 2006, Bite Communications Limited (a wholly owned subsidiary of Next Fifteen Communications Group plc) sold the business in and assets of its online division “Bullet” to a newly incorporated company owned by one of the founders of Bullet. The £151,000 profit is reported within “other operating charges” in the Group profit and loss account.

*See note 1. Foreign currencies