At 31 March 2007 2006 £’000 17. Interests in associated undertakings Interests in associated undertakings consist of: Net asset value

6 128

(1 820)

Goodwill

64 204

64 919

Investment in associated undertaking

70 332

63 099

Analysis of the movement in our share of net assets: At beginning of year

(1 820)

4 993

Exchange adjustments

(122)

107

Acquisitions

677

(11 653)

Disposal of shareholding in associate company

(306)

-

Adjustment in shareholding*

762

-

Operating income from associates

10 685

6 694

Dividends received

(4 699)

(1 455)

Non-operating items

-

(3 268)

Gains recognised in equity

1 351

2 762

At end of year

6 128

(1 820)

Analysis of the movement in goodwill: At beginning of year

64 919

8 226

Exchange adjustments

47

25

Acquisitions

-

57 739

Adjustment in shareholding*

(762)

-

Goodwill impairment

-

(1 071)

At end of year

64 204

64 919

Associated undertakings: Listed

55 657

49 045

Unlisted

14 675

14 054

70 332

63 099

Market value of listed investments

180 026

166 289

The most significant investment held in associates in the year was Rensburg Sheppards plc ("RS"). RS is a listed company on the London Stock Exchange and conducts the business of private client stockbroking. At 31 March 2007 RS had the following shares of 10 90/91p:

43 881 332

43 314 068

Less: Shares held in RS Employee Share Ownership Trust

(233 600)

(76 660)

43 647 782

43 237 408

Holding in RS ordinary shares (%)

47.33%

47.78%

* During the year RS issued additional shares reducing Investec's share of net assets and goodwill. **    Investec has undertaken not to vote in excess of 30% of the issued capital of RS in the five year period ending 6 May 2010. Significant transactions between the group and RS during the year ended 31 March 2007, all of which are on an arm's length basis are: • £60 million subordinated loan, which was entered into on 6 May 2005. The loan formed part of the consideration paid by RS for t he acquisition of Carr Sheppards Crosthwaite Limited on that date. The interest receivable on the loan during the year amounted to £4 305 000 (2006: £3 858 000) and interest of £1 718 000 was receivable at 31 March 2007 (2006: £1 679 000). • Rent of £1.25 million (2006: 1.58 million) and a contribution of £0.3 million (2006: £0.2 million) in respect of RS’ occupation of 2 Gresham Street London. A further £0.5 million (2006: £0.4 million) was received in relation to other services provided including IT and Internal Audit. Notes to the financial statements (continued)