Introduction
I closed last week by introducing a table which set out the transactions between Demtoco and other companies in the group. Of particular interest were the following charges:
2012 2011
$M $M
Management services 327.163 326.041
Royalties 327.845 283.823
Technical and advisory fees 123.743 113.880
778.751 723.744
These charges are not only unusual for an entity that buys a branded product and does nothing else but sell that product to a single customer; they are also unlikely. The charges have two financial and fiscal effects. First, they transfer income from Demtoco to its group companies not in the form of dividends available to all shareholders. Second,
