The exceptional operating charges relate to a reorganisation of the Group's US optical disc business (£2.5m) following the acquisition of Nimbus in 1998 together with the write down in respect of certain of the Carlton Digital Channel's programming inventory to zero (£9.1m). Tax relief of £3.6m is provided.

The net loss before tax of £24.6m arises on disposal of Cabletime Limited, Comelim Circuits Limited, TVI Limited and Carlton Home Entertainment's audio business. The amount includes goodwill written back on disposal of £22.7m. Tax relief on the disposals was £nil.

 
6 NET INTEREST (PAYABLE)/RECEIVABLE

	1999 £m	1998 £m
Interest receivable and similar income	19.1	35.0
Interest payable and similar charges on bank loans, overdrafts and other loans:
Repayable within five years, not by instalments	(7.0)	(10.2)
Repayable in more than five years	(23.2)	(15.8)
Finance cost of convertible debt:
US$150,000,000 Exchangeable Capital Securities	(6.8)	(5.7)
	(17.9)	3.3
Joint ventures	(0.3)	(0.5)
Associated undertakings	0.1	(0.7)
	(18.1)	2.1

 
7 TAXATION ON PROFIT ON ORDINARY ACTIVITIES

	1999 £m	1998 £m
United Kingdom corporation tax based on the profits for the year at 30.5% (1998 - 31.0%)	35.2	71.0
Deferred taxation	4.6	(1.8)
Overseas taxation	15.5	30.9
Adjustments in respect of prior years	0.5	(2.2)
Share of joint ventures and associated undertakings' tax	2.7	2.3
	58.5	100.2

 
8 DIVIDENDS PAID AND PROPOSED

	1999 £m	1998 £m
Interim of 5.95p per Ordinary share (1998 - 5.40p per share)	36.6	33.5
Second interim dividend of 9.10p per Ordinary share (1998 - final dividend 8.25p per share)	56.6	50.5
Ordinary dividends	93.2	84.0
Dividend paid on 6.5p Preference shares	10.7	10.7
Dividend paid and payable on 5.5p Preference shares	9.8	10.6
Amortisation of the 5.5p Preference share premium over redemption price	(6.3)	(6.2)
Preference dividends	14.2	15.1
Total dividends	107.4	99.1