The exceptional operating items comprise:	2009	2008
	£'000	£'000
Relocation of European Dairy production to the Czech Republic	(5,557)	-
Profit on sale and leaseback of freehold property	3,022	-
Impairment of goodwill and other intangibles (see note 11)	-	(8,102)
Other operating charges	-	(379)
Exceptional operating items	(2,535)	(8,481)

In the consolidated income statement, the exceptional items are included within administrative expenses.

The move of European dairy production includes £2.0m of redundancy costs, which are cash costs to be met in 2009 and 2010, non-cash costs of £1.1m in respect of asset write offs and an onerous lease provision of £2.5m in respect of the leased UK facility as the move has resulted in significant unutilised space at the Group’s Hampton Park West facility in the UK.

The cash impact in 2009 of exceptional items was:

a)     To realise £4,850,000 in respect of the sale and leaseback of freehold property.

b)     To utilise cash of £1,688,000 to settle obligations of which £1,102,000 was in respect of the relocation of  he European dairy production and £586,000 was to settle prior year exceptional items.

There was no impact on taxation due to brought forward losses in the UK meaning no deduction is available for the costs of the Dairy relocation and the availability of capital losses in the US meaning the capital gains were not subject to tax.

 

NEXT:  FINANCE INCOME AND COSTS