Notes 8-13

Interest receivable includes £0.2 million (2006: £nil) in respect of the expected return on pension scheme assets (see note 33).

The tax charge is made up of the following:

The underlying effective tax rate on underlying profits for the year ended 31 December 2007 is 26.5% (2006: 28.7%).

The tax charge for the year ended 31 December 2007 is £39.1 million (2006: £33.4 million) representing an effective tax rate (including deferred tax on goodwill) on statutory profits of 29.3% (2006: 29.4%). The tax charge for the year ended 31 December 2007 includes a deferred tax expense of £3.9 million (2006: £1.5 million) for tax deductions in respect of goodwill. IFRS requires that such deferred tax is recognised even if a liability would only unwind on the eventual sale or impairment of the business in question.

UK Corporation tax is calculated at 30% (2006: 30%) of the estimated assessable profit for the year. Taxation for other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions.

The total charge for the year can be reconciled to the accounting profit as follows:

The Group's profit before taxation all arises from continuing operations. Therefore the Group's tax charge also relates solely to continuing operations.

IAS 1 requires income from associates to be presented net of tax on the face of the income statement. The associates' tax is no longer included within the Group's total tax charge. Associates' tax included within 'Net income from associates' for the year ended 31 December 2007 is £0.2 million (2006: £0.2 million).

The final dividend for 2007, if approved, will be paid on 29 May 2008 to all ordinary shareholders on the register at 2 May 2008.

The calculation of basic and diluted earnings per share is based on profit after tax and minority interests. The weighted average number of shares excludes the Group's interest in own shares held through an ESOP trust. The Group's €165.0 million convertible bond (redeemed in May 2006) and certain share options were anti-dilutive and consequently were excluded from the calculation of diluted earnings per share.

The shares to be issued relate to the acquisition of AgenciaClick in Brazil and are dependent on certain performance conditions being met.

Goodwill is allocated for impairment testing purposes to groups of cash generating units which reflect how it is monitored for internal management purposes. This allocation largely represents the Group's primary and secondary reporting segments as set out below. Any goodwill associated with the individual cash generating units subsumed within these reporting segments is not individually significant when compared to the goodwill of the Group.

An impairment of £2.0 million was charged in respect of one of the Group's subsidiaries in China and one in Asia following the deterioration in the performance of this business.

During 2006, an impairment of £1.4 million was charged in respect of one of the Group's companies in India following the deterioration in the performance of this business.

The allocation of goodwill presented above is net of impairment. In 2006, an impairment of £3.9 million was booked in respect of one of the Group's associates in India.

The recoverable amount of a cash generating unit is determined based on value-in-use calculations. The Group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the next year and extrapolates cash flows for the following four years based on estimated growth rates of between 9% and 12%. After this time, cash flows are extrapolated based on the estimated long-term growth in gross domestic product of 3.0%. Cash flow projections are discounted using a pre-tax discount rate of 11.28%.

Expected future cash flows are inherently uncertain and could materially change over time. They are significantly affected by a number of factors such as market growth, discount rates, currency exchange rates and future capital expenditure. Management believes that any reasonably possible change in the key assumptions on which the recoverable amount is based would not cause the carrying amounts to exceed their recoverable amounts.