5 Individually Significant Items The Group separately identifies items as Individually Significant Items. Each of these is considered by the Directors to be sufficiently unusual in terms of nature or scale so as not to form part of the underlying performance of the business. They are therefore separately identified and excluded from adjusted results (as explained in Note 3).
2022 £m
2021 £m
Individually Significant Items (ISIs)
0.9
Costs directly attributable to the acquisition of the IPM Software Resilience business
7.6 5.1
–
Cloud configuration and customisation costs
Total ISIs
0.9
12.7
Costs directly attributable to the acquisition of the IPM Software Resilience business These costs are directly attributable to the material acquisition of the IPM Software Resilience business (see Note 34) and are therefore considered to meet the Group’s policy for ISIs. The nature of the costs includes legal, accountancy, due diligence and other advisory services. The total costs amount to £8.5m, of which £0.9m (2021: £7.6m) has been charged to the income statement in the year ended 31 May 2022. Of the total costs of £8.5m of costs incurred the Group has seen a cash outflow of £7.3m (2021: £1.2m) in the year ended 31 May 2022. The difference between the cash outflow and the costs charged to the Income Statement relates to £6.4m of costs relating to services performed in the year ended 31 May 2021 but for which the cash outflow did not occur until the year ended 31 May 2022 in line with supplier payment terms. Cloud configuration and customisation costs These costs relate to the material spend previously capitalised in relation to the Group’s Securing Growth Together digital transformation programme that have now been expensed within other administrative expenses following the adoption of the IFRIC agenda decision (as from 1 June 2021, are no longer considered part of the Group’s Securing Growth Together digital transformation programme). These costs, as part of the Group’s Securing Growth Together digital transformation programme met the Group’s policy for ISIs.
6 Expenses and auditor’s remuneration
2022 £m
2021 £m
Continuing activities
Profit before taxation is stated after charging/(crediting): Amounts receivable by auditor and its associates in respect of: Audit of these Financial Statements Audit of Financial Statements of subsidiaries pursuant to legislation
1.0 0.2
0.7 0.1
1.2
Total audit 1
0.8
0.9 0.9 8.6 3.9 5.4
Amortisation of development costs (Note 12) Amortisation of software costs (Note 12) Amortisation of acquired intangibles (Note 12)
2.0 1.0 6.4 4.4 5.9
Depreciation of property, plant and equipment (Note 13) Depreciation of right-of-use assets (Note 14) Impairment reversal of right-of-use assets (Note 14)
(0.1)
–
0.9
Costs directly attributable to the acquisition of the IPM Software Resilience business (included within ISIs) (Note 5)
7.6 5.1 0.8 1.1 1.5
–
Cloud configuration and customisation costs (Note 5) Credit losses recognised on financial assets Cost of inventories recognised as an expense
0.6 1.0
(0.6)
Foreign exchange (gains)/losses
Lease rental costs charged: – Hire of property, plant and equipment 2 Research and development expenditure Profit on disposal of intangible assets Profit on disposal of right-of-use assets Loss on sale of property, plant and equipment
0.1 1.0
0.1 0.5
– – –
(0.5) (0.2)
0.2
1 The only non-audit service provided by the auditor was for the interim review at 30 November 2021, for which the fee was £80,000 (2021: £75,000). 2 T he charge to the Income Statement in respect of lease rental costs relates entirely to short-term leases for which the Group has taken the exemption allowed from applying the principles of IFRS 16.
NCC Group plc — Annual report and accounts for the year ended 31 May 2022
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