Notes to the accounts 

year ended 30 June 2001

1

Accounting 

The financial statements are prepared in accordance with applicable

policies

United Kingdom accounting standards.  The particular United Kingdom

accounting policies adopted are described below.

Accounting convention

The financial statements are prepared under the historical cost

convention.

Basis of consolidation

The financial statements consolidate the financial statements of the

Company and all subsidiary undertakings for the year ended 30 June

2001.  As permitted by Section 230 of the Companies Act 1985, a

separate profit and loss account is not presented in respect of the

Company.  During the year, the parent Company made a loss of

 20,056,230 (2000: profit  94,800).

Acquisitions during 2000 were incorporated in the accounts using the

acquisition method.  Accordingly, the Group profit and loss account and

statement of cash flows included the results and cash flows of these

entities from their date of acquisition.  The purchase consideration has

been allocated to assets and liabilities on the basis of fair value at the

date of acquisition.

Turnover

Turnover represents amounts derived from the provision of services which

fall within the Company's ordinary activities after deduction of value

added tax.  Income for services provided which are invoiced on an annual

basis in advance are deferred in the balance sheet and released to the

profit and loss account in the periods in which services are provided.

Intangible fixed assets

Goodwill arising on consolidation represents the excess of fair value of

the consideration paid over the fair value of the identifiable net assets

acquired.  Goodwill has been capitalised in the year in which it arises and

amortised, on a straight line basis, over its estimated useful life, unless

impairment has occurred.

When impairment occurs the cost is expensed to the profit and loss

account.

Tangible fixed assets

Depreciation is provided on tangible fixed assets at rates calculated to

write off the cost, less estimated residual value, of each asset evenly over

its expected useful life as follows:

Computer equipment

50% straight line

Fixtures, fittings and equipment

33 1/3% straight line

Motor vehicles

25% straight line

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