19. RESERVES AND MOVEMENTS IN EQUITY
  Share capital
£’000		 Share
premium
£’000		 Property
revaluation
reserve
£’000		 Share-based
payments
reserve
£’000		 Capital
redemption
reserve
£’000		 Capital
reserve
£’000
At 1st January 2005 18,334 87,417 1,673 64 1,431 44,188
Prior year restatement in respect of operating leases (refer note 1(q)) – – (1,659) – – –
At 1st January 2005 (restated) 18,334 87,417 14 64 1,431 44,188
Net proceeds of issue of new shares 27 134 – – – –
VAT recovered on share issue costs – 84 – – – –
Net surplus on revaluation of operating properties (restated) – – 321 – – –
Share-based payments cost – – – 110 – –
At 31st December 2005 (restated) 18,361 87,635 335 174 1,431 44,188
Net proceeds of issue of new shares 1,995 21,215 – – – –
Net surplus on revaluation of operating properties – – 518 – – –
At 31st December 2006 20,356 108,850 853 174 1,431 44,188
             
The capital reserve and capital redemption reserve arose from business combinations in prior financial periods. Neither of these reserves are distributable.
             
             
Retained earnings            
            Retained
earnings
£’000
At 1st January 2005           20,079
Prior year restatement in respect of operating leases (refer note 1(q))   347
At 1st January 2005 (restated)           20,426
Retained profit for the year           20,090
Prior year restatement in respect of tax (refer note 1 (q))   (2,900)
Adjustment to tax in respect of share-based payments   13
Final dividend 2004           (1,467)
Interim dividend 2005           (778)
At 31st December 2005 (restated)           35,384
Retained profit for the year           23,559
Deferred tax           (992)
Final dividend 2005           (1,562)
Interim dividend 2006           (828)
At 31st December 2006           55,561
             
Retained profit for the year ended 31st December 2005 includes a prior year restatement of £300,000 in respect of the taxation charge for the year (refer note 1(q)).