Annual Report & Accounts 2009
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- Financial Statements
- Notes to the Consolidated Financial Statements
- 2 Net operating expenses
| Note | 2009(52 weeks) £m | 2008(53 weeks)(restated) £m | |
|---|---|---|---|
| Distribution costs | 218.3 | 194.0 | |
| Administrative expenses | 11.5 | 11.2 | |
| Research and development expenditure | 3.6 | 2.3 | |
| Continuing operations | 233.4 | 207.5 | |
| Discontinued operations | 23 | – | 5.8 |
| 233.4 | 213.3 | ||
Distribution costs include restructuring costs of £3.1 million (2008: nil) and administrative expenses include restructuring costs of £0.3 million (2008: nil), both relating to headcount reductions taken in the fourth quarter of 2009 to ensure the Group is appropriately structured for the future. The tax credit attributable to these restructuring costs was £1.0 million.
Research and development (R&D) expenditure comprises product R&D expensed by Akron Brass of £1.6 million (2008: £1.3 million), and R&D costs incurred in researching and developing new and improved solutions to customer service of £2.0 million (2008: £1.0 million, which has been reclassified from distribution costs).