Final Results

Travis Perkins PLC
07 March 2005



7 March 2005

                PRE-TAX PROFIT UP 17.0 PER CENT TO £190.4 MILLION

                OPERATING PROFIT BEFORE AMORTISATION OF GOODWILL*
                       UP 14.0 PER CENT AT £218.2 MILLION

                    DIVIDENDS UP 25.0 PER CENT AT 30.5 PENCE


                                                     2004      2003   Increase
                                                       £m        £m          %

Turnover                                          1,828.6   1,678.3        9.0%

Operating profit before amortisation of goodwill*   218.2     191.4       14.0%

Profit before taxation                              190.4     162.7       17.0%

Profit after taxation                               130.1     108.9       19.5%

Like-for-like free cash flow (note 8)               149.8     128.1       16.9%

Basic earnings per ordinary share                   113.9p     96.5p      18.0%
Adjusted earnings per ordinary share before
  amortisation of goodwill (note 13)                129.1p    110.0p      17.4%

Final dividend per ordinary share                    21.0p     16.8p      25.0%

Total dividend per ordinary share                    30.5p     24.4p      25.0%

* See details of goodwill amortisation in the profit and loss account on page 8.


Geoff Cooper, chief executive, said:

'These results demonstrate how the group's strategy of continuous improvement
and branch network expansion is driving further growth in turnover, operating
margins and returns to shareholders.

This provides an excellent platform for further gains through the integration of
Wickes into the enlarged group.'


Enquiries     Geoff Cooper                   Paul Hampden Smith
              Chief Executive                Finance Director
              Tel: [phone] (mobile)    Tel: [phone] (mobile)

Issued on behalf of Travis Perkins plc by Tavistock Communications Limited
(contact: Keith Payne, Tel: [phone]).



Chairman's statement For the year ended 31 December 2004


RESULTS

I am pleased to report pre-tax profits for the year ended 31 December 2004 of
£190.4 million, an increase of 17 per cent over the £162.7 million delivered in
2003. Turnover at £1,828.6 million was 9 per cent ahead of the previous year.
Operating profit, before goodwill amortisation of £17.4 million (2003: £15.3
million), was £218.2 million, compared with £191.4 million in 2003, an increase
of 14 per cent.

Basic earnings per share were up 18 per cent at 113.9 pence, compared with 96.5
pence in 2003. Adjusted earnings per share prior to amortisation of goodwill,
rose 17.4 per cent to 129.1 pence from 110.0 pence.


DIVIDEND

At the half year the board indicated its intention to increase the final
dividend to reflect the cash generative nature of the business and its
confidence in the future prospects of the company. As a result of the company's
continued progress, the board is recommending a final dividend of 21.0 pence per
share, an increase of 25 per cent on the final dividend of 16.8 pence for 2003.
Together with the interim dividend of 9.5 pence, this would give a total
dividend of 30.5 pence per share, up 25 per cent on the previous year.


BOARD OF DIRECTORS

In December 2004 Frank McKay announced his intention to retire from the company
in October this year at age 60. During his five-year tenure, which has included
the acquisition of Wickes, turnover has more than trebled with strong growth by
way of acquisition, brown-field openings and organic development. Double-digit
earnings per share growth year-on-year, a strong dividend progression and an
increase in the branch network from 450 to over 900 have been achieved. I am
sure shareholders will join me in thanking Frank and in wishing him well for the
future.

Geoff Cooper joined the board on 1 February 2005 and became chief executive on 1
March 2005. He was previously deputy chief executive of Alliance UniChem a £9
billion turnover company that is a member of the FTSE 100 index.

John Coleman became a non-executive director of the company in February 2005. He
is chief executive of House of Fraser and brings a wealth of retail experience
to our board.

Ted Adams and Peter Maydon have announced that they will be retiring as
non-executive directors of the company in December 2005.

Ted has worked for the group for 33 years, initially as finance director of
Sandell Perkins and then after several promotions as group managing director of
Travis Perkins. In 1999 he retired as an executive director and a short time
later accepted a position of non-executive director. He is widely respected
throughout the industry, a fact which was recognised when he was elected
president of the Builders Merchants Federation.

Peter Maydon has given great service to the company over the past seven years.
During that time he has been a member of all of the board committees, chairman
of the company's pension trust and latterly he has been senior non-executive
director and chairman of the remuneration committee.

On behalf of shareholders I would like to thank Ted and Peter for being
consistent sources of inspiration and wise counsel to their board colleagues.


CORPORATE GOVERNANCE

During the year the board has continued to review actively all of the major
areas of risk to the company. Further details of the governance controls can be
found under the corporate governance section of the annual report and accounts.


WICKES

We are pleased to welcome the directors and staff of Wickes to the Travis
Perkins' group. Following shareholder approval at our EGM on 2 February 2005 and
clearance from the Office of Fair Trading, the acquisition was completed on 11
February 2005. We are delighted with the acquisition for which we paid £950
million on a debt free basis. Through Wickes we have entered a new market with
strong long-term growth characteristics together with significant synergy and
store expansion potential.


OUTLOOK

We are delighted with the 2004 results, which included a record number of
smaller acquisitions and brown-field openings. We have made a good start to
2005, with our trade in the RMI sector ahead of our expectations and our early
work confirming our view of the synergies available from the acquisition of
Wickes. Despite a slowing of consumer spending in February, as experienced by
many retailers, we see enhanced earnings growth from the Wickes acquisition. We
will continue to grow our business by investing in a plentiful supply of
opportunities for TP acquisitions and for new sites for both Wickes and for
merchant branches.

T. E. P. Stevenson
Chairman
4 March 2005



Chief executive's review For the year ended 31 December 2004


RESULTS

The company enjoyed a further year of strong performance in 2004. Operating
profit before amortisation of goodwill of £17.4 million (2003: £15.3 million),
rose 14 per cent to £218.2 million from £191.4 million in 2003. Turnover
increased by 9 per cent to £1,828.6 million from £1,678.3 million. Sales growth
was again driven by our ongoing programme of investment in the acquisition of
independent merchants and in the opening of new brown-field sites. Indeed, in
2004 the group achieved a record number of one-off branch openings. Group
like-for-like sales were up 1.8 per cent.

The overall operating margin, before goodwill amortisation, for the year moved
up again, from 11.4 per cent to 11.9 per cent, as a result of further
improvements in procurement, overhead efficiencies gained as the group grew and
our overall culture of continuous improvement.

City Plumbing Supplies ('CPS') and Commercial Ceiling Factors ('CCF') performed
well during a period of considerable restructuring in both businesses. Jayhard
and B&G have now been fully integrated into the CPS management structure and
significant investment was made in the acquired branches last year, with further
similar investment planned for 2005. Gross profit as a percentage of sales
improved further on a like-for-like basis.


DEVELOPMENTS

The past year saw significant growth in the rate of addition of one-off
branches, both from the acquisition of smaller independent businesses and from
the opening of brown-field sites. In all 67 new sites were added. The company
completed 16 consolidations, mostly within the plumbing and heating network, as
opportunities were taken to reduce operating costs while maintaining sales. The
net addition to the branch total was 51.

The acquisition of 30 mixed merchant branches and the opening of 21 brown-field
sites filled a number of key gaps in the geographic coverage of the Travis
Perkins' brand. There were also 4 consolidations. At the same time a further 3
outlets were added to the Keyline branch network. The group's specialist network
of plumbing and heating branches under the CPS brand increased by a net 1
branch, comprising 4 acquired branches, 9 brown-field openings and 12
consolidations. The total amount spent on acquisitions was £39 million.

By the end of 2004 the group was trading from 751 outlets compared with 700 a
year earlier.


BRANCH IMPROVEMENTS

We have continued to invest in the branch network in order to ensure continuous
improvement in customer facilities. During the year redevelopment projects were
carried out at numerous Travis Perkins' branches, including those in Caerphilly,
Gastard, Erdington, Shepshed, Crosby, Oswestry, Northampton, Cromer, Slough,
Urmston, Forfar and Watford.

The upgrading of Keyline branches continued, with refurbishments at Colchester,
Swindon, Elgin, Norwich and Kingswinford. Two CCF branches were moved into
larger, improved units in Nottingham and Cardiff. A major upgrading programme of
bathroom showroom facilities at more than 25 CPS branches was also completed
during the year.


INFORMATION TECHNOLOGY

We have continued to invest in the quality of our information technology
infrastructure, notably through the installation across the branch network of
over four thousand new PC's, together with supporting server capacity. Having
achieved 'chip and pin' accreditation, the introduction of this technology for
debit and credit card authorisation across the group was included in the PC
rollout programme, along with the replacement of all of our point-of-sale
scanners. Wireless terminals have been added to the control systems at our
distribution centre in Brackmills, resulting in increased efficiency and
throughput. We are also in the process of piloting the use of wireless hand-held
terminals in a number of our branches.

The group's websites have been given a new look and an enhanced range of
facilities, on a consistent basis for the various brands. A more comprehensive
section on financial and corporate information has also been included.

A new on-line training initiative was launched during the year. As a result
suppliers can now upload training material direct to our intranet systems and
all branch staff are now able to access it via the upgraded PC network. This has
improved the effectiveness of product training programmes across the group.


CUSTOMER SERVICE

We have continued to monitor seven key customer service performance indicators,
derived from data captured by our information systems, and extended the
methodology to monitor suppliers on issues that can assist in improving further
our customer service performance. The information collected is made available in
real time to our suppliers via an extranet system, thereby ensuring fast and
effective feedback.


HEALTH AND SAFETY

The company remains committed to achieving and maintaining high standards in
health and safety. Last year two extensive audits of health and safety practice
were conducted. One, our own internal health and safety audit, has resulted in
each of our branches now being able to produce a health and safety action plan
for the year. In addition, our Lead Authority, Northampton Borough Council,
carried out a detailed review of our health and safety practices and produced a
safety management review together with recommendations for improvement. The
conclusions of these audits, together with a detailed analysis of 'accident
causations', will form the basis of our health and safety action plan for 2005
and beyond.


ENVIRONMENT

Our environmental management system accreditation to ISO 14001 was maintained
during the year. Over the past three years of our first environmental
improvement plan, good progress has been made in reducing adverse impact on the
environment, particularly in the areas of timber certification, waste
management, volatile organic compound emissions and CO2 emissions. A new
improvement plan will be produced in the first part of this year and new targets
will be set to reduce further our environmental impact.
Timber procurement has continued to be a major focus of attention and we have
increased further the percentage of products procured from sources certified to
recognised forestry standards. Chain of custody accreditation for both Forest
Stewardship Council ('FSC') and the Programme for the Endorsement of Forest
Certification ('PEFC') schemes has now been achieved for all Travis Perkins and
Keyline branches selling timber products.


FUTURE EXPANSION

We see significant additional scope for profitable growth of the Travis Perkins,
Keyline, CCF and CPS brands through the continued strategy of acquisition of
regional groups and independent merchants, and the opening of brown-field sites.
The acquisition of Wickes was announced on 16 December 2004 and, following
shareholder approval and Office of Fair Trading clearance, was completed on 11
February 2005. This acquisition further strengthens our position in the builders
merchant market, as approximately one third of Wickes' sales are to tradesmen,
and provides us with a new platform for growth in the UK's expanding DIY sector.
In addition, we foresee substantial synergy benefits being achieved from
improvements in procurement, logistics, and other process efficiencies.

After another year of good progress, we remain confident of our ability to
achieve further growth in the future.

STAFF

On behalf of the board, I would like to thank all our employees for their
contribution to the success of the company during 2004.

Geoff Cooper
Chief Executive
4 March 2005


Finance director's report For the year ended 31 December 2004


RESULTS

Pre-tax profits were £190.4 million (2003: £162.7 million) after charging
goodwill amortisation of £17.4 million (2003: £15.3 million).

Pre-tax profits before goodwill amortisation of £17.4 million (2003: £15.3
million) were £207.8 million (2003: £178 million), an increase of 16.7 per cent.
Earnings before interest, tax, depreciation and goodwill amortisation ('EBITDA')
(as defined in note 11) were £250.5 million (2003: £218.3 million), an increase
of 14.8 per cent.

Net interest payable for the year was £7.6 million compared with £9.1 million in
2003.

The tax charge was £60.3 million (31.7 per cent) compared with £53.8 million
(33.1 per cent) in 2003. The rate is higher than the UK corporation tax rate of
30 per cent principally because the effect of claiming a statutory deduction for
share options exercised during the year (£4.6 million tax effect 2003: £1.8
million) is more than offset by goodwill amortisation and certain expenditure,
which does not qualify for tax relief. The effective tax rate, after adjusting
for goodwill amortisation, was 29 per cent (2003: 30.2 per cent).

The underlying effective tax rate after adjusting for goodwill amortisation and
excluding the effect of the gains on share options described above is 31.2 per
cent (2003: 31.2 per cent).


CASH FLOW

Over the past five-years the group has generated free cash of approximately £550
million. For 2004 like-for-like free cash flow (as defined in note 8) was £149.8
million (2003: £128.1 million) an increase of 16.9 per cent. The free cash
generated by the group was used in part to fund expansion capital expenditure in
the existing business and on new acquisitions, which in total cost £68.3 million
(2003: £89.7 million). In addition, as described below accelerated pension
contributions of £25.8 million (2003: £3.6 million) were made during the year.


NET DEBT AND BORROWING FACILITIES

In April 2004 the group repaid the final £75 million tranche of the syndicated
loan used to purchase Keyline in 1999. At the same time the group's £50 million
revolving credit facility expired. The facilities were replaced with two £25
million five-year bullet loans and £78 million of 364 day uncommitted
facilities.

In November 2004, the first £5 million instalment of an existing £25 million
amortising loan was repaid leaving the group with £120 million of committed
drawn loan facilities all of which were at variable interest rates linked to
LIBOR.

Net debt at the year-end was £12.2 million (2003: £128.5 million), which
represents a gearing level (as defined in note 12) of 1.9 per cent (2003: 26.9
per cent). Borrowings include £9.0 million (2003: £12.2 million) of unsecured
loan notes, which are redeemable at six monthly intervals ending in June 2015.

Interest cover, before goodwill amortisation (as defined in note 9) is
approximately 29 times (2003: 21 times).

On 16 December 2004 the group signed a £1.2 billion credit agreement with The
Royal Bank of Scotland and Barclays Capital. The facility comprises a £500
million five-year term loan and a five-year, £700 million revolving credit
facility. On completion of the acquisition of Wickes on 11 February 2005 the new
facility was drawn and, with the exception of £25 million of overdraft
facilities, the existing facilities referred to above were either repaid or
expired.


PENSIONS

Despite improved asset returns and £25.8 million of company contributions in
excess of the profit and loss charge (2003: £3.6 million) the gross pension
scheme deficit at 31 December 2004 was £128.3 million (2003: £121.6 million).
The increased deficit was caused primarily by the company adopting the most
recent longevity assumptions when valuing the scheme liabilities, which
increased the deficit by £36 million. At 31 December 2004 the net deficit, after
allowing for deferred tax, was £89.8 million compared with £85.1 million at 31
December 2003.


SHAREHOLDERS' FUNDS

Total equity shareholders' funds, after deducting the pension scheme deficit at
31 December 2004, were £630.5 million, an increase of £153.5 million on 31
December 2003.

In December 2004 in anticipation of the acquisition of Wickes, the company
placed 5 million shares at a price of £15.30 raising £75.5 million net of the £1
million cost of the placing, which has been deducted from the share premium
account.

The return on equity shareholders' funds before taxation (as defined in note 10)
has remained at 29.3 per cent. This level of return, which is substantially
higher than the group's weighted average cost of capital, is consistent with
returns achieved over the last four years.

At the year-end the share price was 1,733 pence (2003: 1,278 pence) and the
market capitalisation £2,089 million (2003: £1,449 million), representing 3.3
times (2003: 3 times) shareholders' funds.


GOODWILL

The net book value of goodwill in the balance sheet is £287.4 million, which is
being amortised over 20 years. Additions to goodwill in the year totalled £19.1
million.


TREASURY RISK MANAGEMENT

Treasury activities are managed centrally under a framework of policies and
procedures approved and monitored by the board. The objectives are to protect
the assets of the group and to identify and then manage financial risk. In
applying its policies, the group will utilise derivative instruments, but only
for risk management purposes.

The principal risk facing the group is an exposure to interest rate
fluctuations. The group is not exposed to significant foreign exchange risk as
most purchases are invoiced in sterling. These risks are described further
below:


     INTEREST RATE RISK

     The group finances its operations through a mixture of retained profits, 
     bank borrowings and loan notes. The group borrows at floating rates and, 
     where necessary, uses interest rate swaps into fixed rates to generate the 
     preferred interest rate profile and to manage its exposure to interest rate
     fluctuations.

     CURRENCY RISK

     The group usually buys currency at spot rates. While this was the situation
     during 2004, forward contracts may be purchased where appropriate.


     LIQUIDITY RISK

     The group's policy has been to ensure that it has committed borrowing 
     facilities in place in excess of its peak forecast gross borrowings for at 
     least the next twelve months. The current refinancing is discussed above 
     under Net Debt and Borrowing Facilities.


INTERNATIONAL ACCOUNTING STANDARDS ('IAS')

The group is well advanced in its preparation for the conversion of its
accounting policies from UK GAAP to IAS, which became mandatory for all listed
companies on 1 January 2005. Our Auditors are currently auditing our IAS
calculations, a process which will be completed well ahead of the half-year.
Whilst it is too early to fully quantify the effect of IAS on our 2004 results
and year-end balance sheet we anticipate that the principal differences will
arise from the:

   • Treatment of property leases, with many leases being capitalised in the
     balance sheet;
   • Charge in respect of the fair value of share options to the profit and
     loss account;
   • Timing of recognition of proposed dividends in the accounts;
   • Non-amortisation of goodwill;
   • Recognition of certain deferred tax liabilities; and
   • Valuation and amortisation of brand names as well as the treatment of
     interest rate swaps following the acquisition of Wickes.

Whilst the value of net assets and reported profits and the classification of
certain items may be affected by the implementation of IAS, there will be no
effect on cash flows.

P. N. Hampden Smith
Finance Director
4 March 2005


Consolidated Profit and Loss Account
For the Year Ended 31 December 2004
                                                             2004        2003
                                                               £m          £m

Turnover                                                  1,828.6     1,678.3
===============================================================================
Operating profit before amortisation of goodwill            218.2       191.4

Amortisation of goodwill                                    (17.4)      (15.3)
-------------------------------------------------------------------------------
Operating profit after amortisation of goodwill             200.8       176.1

Net interest payable                                         (7.6)       (9.1)

Other finance costs                                          (2.8)       (4.3)
-------------------------------------------------------------------------------
Profit on ordinary activities before taxation               190.4       162.7

Tax on profit on ordinary activities                        (60.3)      (53.8)
-------------------------------------------------------------------------------
Profit on ordinary activities after taxation                130.1       108.9

Equity dividends paid and proposed                          (36.3)      (27.6)
-------------------------------------------------------------------------------

Retained profit transferred to reserves                      93.8        81.3
===============================================================================
Earnings per ordinary share

Basic                                                       113.9p       96.5p

Diluted                                                     112.6p       95.2p

Adjusted                                                    129.1p      110.0p
===============================================================================

Dividend per ordinary share                                  30.5p       24.4p
===============================================================================

All results relate to continuing activities. The results disclosed in the group
profit and loss account are not materially different from the results on an
unmodified historical cost basis.



Consolidated Balance Sheet
As at 31 December 2004

                                                             2004        2003
Fixed assets                                                   £m          £m
Tangible assets                                             326.3       284.7
Intangible assets - goodwill                                287.4       285.7
Investments                                                   3.9         4.3
-------------------------------------------------------------------------------
                                                            617.6       574.7
-------------------------------------------------------------------------------
Current assets
Stocks                                                      200.6       178.1
Debtors                                                     287.8       265.4
Properties held for resale                                      -         0.2
Short term investments - cash deposits                       98.0        27.5
Cash at bank and in hand                                     18.9         6.4
-------------------------------------------------------------------------------
                                                            605.3       477.6

Creditors: amounts falling due within one year             (405.4)     (400.0)
-------------------------------------------------------------------------------

Net current assets                                          199.9        77.6
-------------------------------------------------------------------------------

Total assets less current liabilities                       817.5       652.3

Creditors: amounts falling due after more than one year     (65.0)      (70.1)

Provisions for liabilities and charges                      (32.2)      (20.1)
-------------------------------------------------------------------------------

Net assets excluding pension deficit                        720.3       562.1
Pension deficit                                             (89.8)      (85.1)
-------------------------------------------------------------------------------

Net assets including pension deficit                        630.5       477.0
===============================================================================

Capital and reserves
Called up share capital                                      12.1        11.3
Share premium account                                       159.2        69.4
Revaluation reserves                                         29.8        30.6
Profit and loss account                                     429.4       365.7
-------------------------------------------------------------------------------

Total equity shareholders' funds                            630.5       477.0
-------------------------------------------------------------------------------



Consolidated Cash Flow Statement
For the Year Ended 31 December 2004
                                                             2004        2003
                                                               £m          £m
Net cash inflow from operating activities                   222.0       230.8
-------------------------------------------------------------------------------
Returns on investments and servicing of finance
Interest received                                             0.5         0.7
Interest paid                                                (8.5)      (10.0)
-------------------------------------------------------------------------------
Net cash outflow for returns on
  investments and servicing of finance                       (8.0)       (9.3)
-------------------------------------------------------------------------------
Taxation
UK corporation tax paid                                     (54.2)      (50.9)
-------------------------------------------------------------------------------
Capital expenditure and financial investment
Purchase of tangible fixed assets                           (67.3)      (49.4)
Receipts from sales of tangible fixed assets                  2.2         2.5
-------------------------------------------------------------------------------
Net cash outflow for capital expenditure
  and financial investment                                  (65.1)      (46.9)
-------------------------------------------------------------------------------
Acquisitions
Purchase of business undertakings                           (40.2)      (73.0)
Net cash acquired with business undertakings                  1.2         0.7
-------------------------------------------------------------------------------
Net cash outflow for acquisitions                           (39.0)      (72.3)
-------------------------------------------------------------------------------
Equity dividends paid                                       (30.0)      (23.7)
-------------------------------------------------------------------------------
Cash inflow before use of liquid resources and financing     25.7        27.7

Management of liquid resources
Cash (outflow to)/inflow from short term deposits           (70.5)        2.5
-------------------------------------------------------------------------------


Financing

Issue of ordinary share capital (net of expenses)             90.6        3.5
Repayment of bank loans                                      (30.0)     (25.0)
Repayment of unsecured loan notes                             (3.2)      (1.9)
Capital element of finance lease rentals                      (0.1)      (0.1)
-------------------------------------------------------------------------------
Net cash inflow from/(outflow to) financing                   57.3      (23.5)
-------------------------------------------------------------------------------
Increase in cash in the year                                  12.5        6.7
===============================================================================


Reconciliation of Movements in Equity Shareholders' Funds
For the Year Ended 31 December 2004

                                                              2004       2003
                                                                £m         £m
Equity shareholder's funds at 1 January                      477.0      395.4

Profit attributable to shareholders of the company           130.1      108.9
Dividends                                                    (36.3)     (27.6)
-------------------------------------------------------------------------------
Retained profit transferred to reserves                       93.8       81.3

New share capital subscribed                                  90.6        3.5
Unrealised loss on revaluation of investment properties       (0.4)      (0.3)
Actuarial gains and losses (net of deferred tax)             (30.5)      (2.9)
-------------------------------------------------------------------------------
Net increase in shareholders' funds                          153.5       81.6
-------------------------------------------------------------------------------
Equity shareholders' funds at 31 December                    630.5      477.0
===============================================================================



Statement of Total Recognised Gains and Losses
For the Year Ended 31 December 2004
                                                              2004       2003
                                                                £m         £m
Profit attributable to shareholders of the company           130.1      108.9
Actuarial gains and losses recognised in the pension scheme  (32.5)      (2.7)
Deferred tax on pension deficit                                2.0       (0.2)
Unrealised loss on revaluation of investment properties       (0.4)      (0.3)
-------------------------------------------------------------------------------
Total gains recognised since last annual report               99.2      105.7
===============================================================================



Analysis of Actuarial Gains and Losses Included in the
Statement of Total Recognised Gains and Losses
For the Year Ended 31 December 2004

                                                              2004       2003
                                                                £m         £m
Difference between actual and expected return on scheme
  assets                                                      10.9       14.7
Experience gains and losses arising on scheme liabilities      0.1        0.1
Effects of changes in assumptions underlying the present
  value of scheme liabilities                                (43.5)     (17.5)
-------------------------------------------------------------------------------

Total actuarial gains and losses recognised in the statement
  of total recognised gains and losses                       (32.5)       (2.7)
===============================================================================



Reconciliation of Operating Profit to
Net Cash Inflow from Operating Activities
                                                              2004       2003
                                                                £m         £m
Operating profit after amortisation of goodwill              200.8      176.1
Depreciation charges                                          32.3       26.9
Amortisation of goodwill                                      17.4       15.3
Profit on sale of fixed assets                                (0.2)         -
Increase in stocks                                           (15.7)     (10.8)
Increase in debtors                                          (14.3)      (0.4)
Increase in creditors                                         27.5       27.3
Additional cash payments to the pension scheme               (25.8)      (3.6)
-------------------------------------------------------------------------------

Net cash inflow from operating activities                    222.0      230.8
===============================================================================

Reconciliation of Net Cash Flow to Movement in Net Debt

                                                              2004       2003
                                                                £m         £m
Increase in cash in year                                      12.5        6.7
Cash inflow from debt                                         33.3       27.0
Cash outflow/(inflow from) to increase/(to decrease) liquid
  resources                                                   70.5       (2.5)
-------------------------------------------------------------------------------

Movement in net debt in the year                             116.3       31.2

Net debt at 1 January                                       (128.5)    (159.7)
-------------------------------------------------------------------------------

Net debt at 31 December                                      (12.2)    (128.5)
===============================================================================


Notes:

1.  The accounting policies used are consistent with those stated in the
    financial statements of the group for the year ended 31 December 2003.
2.  These statements are not statutory accounts within the meaning of s240
    of the Companies Act 1985.
3.  The results for the year ended 31 December 2003 are taken from the
    group's statutory accounts, which carry an unqualified auditors' report 
    and have been filed with the Registrar of Companies.
4.  Statutory accounts, on which the audit report is unqualified, for the 
    year ended 31 December 2004 will be delivered to the Registrar of Companies 
    in due course.
5.  The statutory accounts for both the year ended 31 December 2004 and
    year ended 31 December 2003 did not contain a statement under s237 (2) or 
   (3) of the Companies Act 1985.
6.  An interim dividend of 9.5 pence was paid to shareholders on 29 October
    2004. The proposed final dividend of 21.0 pence will be paid on 16 May 2005
    to shareholders on the register at 22 April 2005.
7.  It is intended to post the Report and Accounts on 30 March 2005 and to
    hold the Annual General Meeting on 27 April 2005.
8.  Like-for-like free cash flow is derived:

                                                              2004       2003
                                                                £m         £m
Movement in net debt in year                                 116.3       31.2
Adjustment in respect of creditors paid in advance               -      (16.6)
Dividends                                                     30.0       23.7
Special pension contributions                                 25.8        3.6
Net cash outflow for expansion capital expenditure            29.3       17.4
Net cash outflow for acquisitions                             39.0       72.3
Shares issued                                                (90.6)      (3.5)
-------------------------------------------------------------------------------
Like-for-like free cash flow                                 149.8       128.1
===============================================================================

    The definition of like-for-like free cash flow has been amended during the 
    year to mirror that typically used by investment analysts.
9.  Interest cover is calculated by dividing operating profit before
    amortisation of goodwill by the net interest payable.
10. Return on equity is calculated by dividing profit before tax and goodwill
    amortisation by weighted average net assets (after adding back total 
    goodwill amortised to profits, goodwill previously written off to reserves 
    and the pension scheme deficit).
11. EBITDA is operating profit before goodwill amortisation plus depreciation
    of £32.3 million (2003: £26.9 million).
12. Gearing is calculated by dividing net debt by shareholders' funds.
13. Adjusted earnings per share is basic earnings per share of 113.9 pence
   (2003: 96.5 pence) increased by adding back the effect of goodwill 
    amortisation of 15.2 pence (2003: 13.5 pence)




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