28. Discontinued operations

The results of the discontinued operations, which have been included in the consolidated income statement, were as follows:

20142013
Before
special
items
£000
Special items
£000
Total
£000
Before
special
items
£000
Special items
£000
Total
£000
Revenue34,48634,486
Operating expenses before special items(31,110)(31,110)
Finance costs(11)(11)
Profit before tax and special items3,3653,365
Special items(159)(159)(1,068)(1,068)
(Loss)/profit before tax of discontinued operations(159)(159)3,365(1,068)2,297
Taxation(588)67385
(Loss)/profit after tax of discontinued operations(159)(159)2,777(395)2,382
Net gain on disposal(519)(519)10,91510,915
Net (loss)/profit attributable to discontinued operations (attributable to the owners of the parent)(678)(678)2,77710,52013,297

Special items from discontinued operations of £0.7m relate to the movement in the value of the contingent consideration receivable of £0.5m (see note 26) and share-based payment charges of £0.2m.

In the prior year, special items from discontinued operations included the amortisation of intangible assets (£1.1m) and certain plant restructuring costs (£0.2m) offset by a credit relating to the movement in the value of the contingent consideration receivable of £0.2m.

On 15 February 2013, the Group disposed of King Systems which led to a gain on disposal of £10.9m recorded in FY2013, being the proceeds of the disposal (net of the working capital payment) less the carrying amount of the business's net assets plus disposal costs. The proceeds of disposal consisted of US$123.4m (£79.6m) in cash and £11.5m in contingent consideration receivable based on the discontinued operation meeting certain performance criteria (see note 26).

The net assets of King Systems at the date of disposal were as follows:

15 February
2013
£000
Goodwill45,830
Intangible assets5,970
Property, plant and equipment20,888
Inventories6,434
Trade and other receivables5,608
Cash and cash equivalents836
Trade and other payables(5,346)
Current and deferred tax liabilities(2,182)
Sub-total78,038
Cumulative translation reserve(2,693)
Net assets75,345
Profit on disposal10,915
Consideration86,260
Satisfied by:
Cash consideration79,561
Cash disposal costs(4,028)
75,533
Contingent consideration11,490
Non-cash disposal costs(763)
Non-cash tax on profit on disposal
86,260
Net cash inflow arising on disposal:
Cash consideration75,533
Less cash and cash equivalents disposed(836)
74,697

The following cash flows arose from King Systems prior to the disposal:

Period ended
15 February
2013
£000
Operating cash flows2,849
Investing cash flows(4,055)
Financing cash flows
Total cash flows(1,206)