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).

Individually Significant Items (ISIs)2019
£m
2018
£m
SGT – legacy systems accelerated amortisation (net of R&D tax credit)(3.8)
Loss-making contract(2.5)
Revisions to deferred and contingent consideration (note 24)0.8(0.6)
Restructuring costs(1.6)
Onerous leases and other property-related costs(0.6)(2.7)
Market-related costs(0.2)
Total ISIs – continuing operations(3.6)(7.6)

SGT – legacy systems accelerated amortisation

As part of the transformation projects underway across the Group, the Group has accelerated amortisation on legacy systems in advance of new systems coming into effect. The charge is a large, one-off transaction which will not be repeated in coming years, and therefore, was deemed to be an ISI. The charge is net of an R&D tax credit.

Loss-making contract

In the prior year, a loss-making contract was identified by management, whereby it was considered that significant additional effort would be required to satisfy the contractual commitments that has led the contract to be loss-making over its lifetime. The Group has a very small number of long-term contracts and hence this is a very unusual occurrence for the Group. It was therefore deemed, both in terms of its unusual nature and size, that it should be treated as an ISI.

Revisions to deferred and contingent consideration

The revisions to deferred and contingent consideration represent changes to amounts payable by the Group on the purchase of overseas subsidiaries, as well as foreign exchange differences on that consideration. Due to the size of the movement and that there was no connection to the underlying performance of the business, this has been treated as an ISI.

Restructuring costs

Restructuring costs arose due to a prior-year Strategic Review and hence are treated as an ISI given the one-off nature of the Strategic Review and the level of the costs incurred.

Onerous leases and other property-related costs

Following a review of the UK property portfolio and capacity requirements, management has identified three onerous property leases. The amount provided for represents the forecasted discounted net cash flows.

In the prior year, onerous property leases arose on a vacant property and an unused floor in the Manchester head office. In the current year, the Directors have decided to vacate another floor in the head office. In addition, in the prior year, costs included dual running costs of the Manchester head office, prior to occupancy.

These costs are treated as an ISI because they arise in connection with unoccupied properties and this is not considered to be part of the underlying performance of the business.

Market-related costs

Market-related costs in the prior year were in respect of the shareholder circular and exercise to remediate a number of invalid dividends. This exercise completed successfully at the September EGM. The correction of invalid dividends being paid in the prior year by means of a shareholder circular is a highly unusual occurrence and hence while small in scale was deemed not to form part of the underlying business performance.

  1. See note 1 for further details on the restatement of comparative information due to the retrospective application of IFRS 15.