62 Franchise Brands plc Annual Report and Accounts 2018 3 Financial instruments – risk management continued Group Trade and other payables 2018 £’000 Loans and borrowings 2018 £’000 Total 2018 £’000 Trade and other payables 2017 £’000 Loans and borrowings 2017 £’000 Total 2017 £’000 On demand – – – – – – Within one year 7,777 3,571 11,348 6,036 4,353 10,389 More than one year and less than two years – 1,251 1,251 – 1,155 1,155 More than two years and less than five years – 3,200 3,200 – 4,586 4,586 In more than five years – – – – – – Total 7,777 8,022 15,799 6,036 10,094 16,130 Company Trade and other payables 2018 £’000 Loans and borrowings 2018 £’000 Total 2018 £’000 Trade and other payables 2017 £’000 Loans and borrowings 2017 £’000 Total 2017 £’000 On demand – – – – – – Within one year 247 3,550 3,797 191 4,318 4,509 More than one year and less than two years – 1,200 1,200 – 1,131 1,131 More than two year and less than five years – 3,200 3,200 – 4,559 4,559 In more than five years – – – – – – Total 247 7,950 8,197 191 10,008 10,199 4 Revenue 2018 £’000 2017 £’000 Management service fees 28,498 20,402 Sale of franchise territories 1,513 1,829 Product sales 894 946 Direct labour income 4,565 1,690 35,470 24,867 The table shows revenue from contracts disaggregated into major classes of revenue and reconciled to the Group revenue reported. Contract Assets 2018 £’000 2017 £’000 At 1 January 611 – Cash paid to franchisees in advance of revenue recognised 209 405 Acquisition balance – 206 At 31 December 820 611 Contract assets are included within trade and other receivables. They arise from payments made to our franchisees as per their contracts in advance of when we are able to recognise revenue under IFRS15. 5 Operating profit Operating profit is stated after charging: 2018 £’000 2017 £’000 Depreciation 131 96 Amortisation 253 156 Share-based payment expense 138 58 Operating lease rentals 481 236 Auditors’ remuneration: Fees for audit of the Company 15 15 Fees for the audit of the Company’s subsidiaries 49 37 Fees for non-audit services: Taxation services 16 15 Corporate finance services – 155 Other assurance services – 17 NOTES FORMING PART OF THE FINANCIAL STATEMENTS continued For year ended 31 December 2018