Pisces plc produced the following statement of financial position and income statement at the end of the third year of trading:

An analysis of the underlying records reveals the following:
1 The research and development expense relates to the cost of developing a new product in the previous year. This cost is written off over a two-year period (starting last year). However, this is a prudent approach and the benefits are expected to last for 16 years.
2 The allowance for trade receivables (bad debts) was created this year and the amount of the provision is very high. A more realistic figure for the allowance would be £4 million.
3 R estructuring costs were incurred at the beginning of the year and are expected to provide benefits for an infinite period.
4 The business has a 7 per cent required rate of return for investors.

Required:
Calculate the EVA ^® for the business for the third year of trading.

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Statement of financial position as at the end of the third year £m ASSETS Non-current assets Property Machinery and equipment 40.0 80.0 Motor vans 18.6 Marketable investments 9.0 147.6 Current assets Inventories 45.8 Trade receivables 64.6 Cash 1.0 111.4 Total assets 259.0 EQUITY AND LIABILITIES Equity Share capital 80.0 Reserves 36.5 116.5 Non-current liabilities Loan notes 80.0 Current liabilities Trade payables 62.5 259.0 Income statement for the third year £m Sales revenue 231.5 Cost of sales (143.2) Gross profit Wages Depreciation of machinery and equipment Research and development 88.3 (43.5) (14.8) (40.0) (10.5) (20.5) 0.6 Allowance for trade receivables Operating loss Income from investments (19.9) (0.8) (20.7) (6.0) (26.7) Interest payable Normal loss before taxation Restructuring costs Loss before taxation Tax Loss for the year (26.7)