1. Accounting Policies (continued)

period, the derivative is classified as non-current consistent with the classification of the underlying item. A derivative instrument that is a designated and effective hedging instrument is classified consistent with the classification of the underlying hedged item.

(R) PENSION BENEFITS

For defined benefit schemes, the regular cost of providing pensions to employees during the year is charged to operating profit in the year. The full cost of providing amendments to benefits in respect of past service is also charged to operating profit in the year.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, at the start of the period taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or costs.

Re-measurements, comprising actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability (excluding amounts included in net interest) are recognised immediately in other comprehensive income in the period in which they occur.

The defined net benefit pension asset or liability in the statement of financial position comprises the total for each plan of the present value of the defined benefit obligations (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information and in the case of quoted securities is the published bid price.

For defined contribution schemes, the value of amounts charged to the income statement in respect of pension costs is the value of the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayment in the statement of financial position.

2. Turnover and analysis by class of business

Turnover, Group profit/(loss) before taxation and net assets are analysed as follows:

All operations take place within the United Kingdom. The Group operates in two principal areas of activity, property investment and hotels and concert hall activities.

3. Profit on sale of investment properties

4. Interest payable and similar expenses

5. Operating profit

Non-audit remuneration for the company is not disclosed in the individual financial statements as the consolidated financial statements are required to comply with regulation 5(1)(b) of Companies (Disclosure of Auditor Remuneration and Liability Limitation Agreements) Regulations 2018 and present this information on a consolidated basis.

The Group’s auditor for the year ended 31 December 2022 was BDO LLP (31 December 2021: Ernst & Young LLP).

6. Directors and employees

Included within directors’ remuneration above are contributions to money purchase pension schemes for one director amounting to £47,000 (2021: one director – £40,000).

The remuneration, excluding pension contributions, of the highest paid director was £1,442,000 (2021 – £1,067,000).

Pension contributions of the highest paid director were nil (2021 – nil).

The average monthly number of persons employed by the Group, including executive directors, during the year was 93 (2021 – 91). 79 (2021 – 76) persons were employed within the property investment business and 14 (2021 – 15) persons were employed within the hotels and concert hall business.

Staff costs for the company were in respect of directors’ remuneration and amounted to £535,000 (2021 – £432,000). There were no pension contributions made by the company in the year (2021 – nil).

(a) Tax on profit

The tax charge is made up as follows:

(b) Tax included in statement of total comprehensive income

The tax charge is made up as follows: