6. FINANCE INCOME AND COSTS    
  2006
£’000		 2005
£’000
Finance costs    
Interest on bank loans and other borrowings 5,622 5,693
Interest on Debenture 2,200 2,200
Amortisation of arrangement costs 230 232
Capitalised interest (731) (458)
  7,321 7,667
Finance income    
Interest receivable (2,954) (2,262)
  4,367 5,405
     
Interest has been capitalised at a rate of 6.33% (2005: 6.50%). Capitalised interest in the amount of £1,145,000 (2005: £181,000) was written off in the year against gross profit.