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EMI Group PLC (EMI)

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Tuesday 21 November, 2000

EMI Group PLC

Interim Results 2000-Part 2

EMI Group PLC
21 November 2000


Part 2 

ATTACHMENTS



EMI GROUP PLC INTERIM REPORT (unaudited)


(a)       Financial highlights for the six months ended 30 September 2000.


(b)       Consolidated profit and loss account for the six months ended 30
          September 2000.


(c)       Consolidated balance sheet at 30 September 2000.


(d)       Statement of total recognised gains and losses for the six months   
          ended 30 September 2000.


(d)       Reconciliation of movements in shareholders' funds for the six      
          months ended 30 September 2000.


(e)-(f)   Consolidated cash flow statement for the six months ended 30
          September 2000.


(g)-(n)   Notes to the accounts for the six months ended 30 September 2000.


                                                              Attachment (a)
                                                                            
                            FINANCIAL HIGHLIGHTS
           for the six months ended 30 September 2000 (unaudited)
                                      
---------------------------------------------------------------------------
                                               6 mths ended 6 mths ended
                                         notes      30.9.00      30.9.99
---------------------------------------------------------------------------
                                                         £m           £m

Group turnover                              2       1,144.1      1,080.1
EBITDA (i)                                            139.2        147.0
Group operating profit (EBITA)(ii)          2         110.9        119.1
Adjusted profit before taxation (iii)                  59.1         86.5
---------------------------------------------------------------------------
Group operating profit (EBITA)
  - excluding new media (ii)(iv)                      104.8         95.2
---------------------------------------------------------------------------
Adjusted diluted earnings per share (v)     7           4.5p         6.2p
Dividend per share                          6           4.25p        4.25p
---------------------------------------------------------------------------
Return on sales (vi)                                    9.7%        11.0%
Interest cover (vii)                                    4.0x         7.6x
--------------------------------------------------------------------------

(i)   EBITDA is Group operating profit before operating exceptional items,
      depreciation and amortisation of goodwill and music copyrights.
(ii)  Group operating profit (EBITA) is before operating exceptional items
      and amortisation of goodwill and music copyrights.
(iii) Adjusted profit before taxation is before both operating and
      non-operating exceptional items and amortisation of goodwill and
      music copyrights.
(iv)  New media profits consist of e-commerce, licence and other realised
      new media revenues, less the related artist costs and new media
      infrastructure investment costs.
(v)   Adjusted diluted earnings per share is before both operating and non-
      operating exceptional items and amortisation of goodwill and music
      copyrights.
(vi)  Return on sales is defined as Group operating profit before
      operating exceptional items and amortisation of goodwill and music
      copyrights as a percentage of turnover.
(vii) Interest cover is defined as the number of times Group EBITDA is
      greater than Group finance charges.
                                                              Attachment (b)
                                                                            
                    CONSOLIDATED PROFIT AND LOSS ACCOUNT
           for the six months ended 30 September 2000 (unaudited)
----------------------------------------------------------------------------
                                 6 mths ended 30.9.00  6 mths ended 30.9.99
----------------------------------------------------------------------------
                                            EMI Group    EMI Group
                                           (excl. HMV   (excl. HMV
                                    Total  Media Grp)   Media Grp)    Total
----------------------------------------------------------------------------
                                               Before       Before
                                          excep items  excep items
                                             & amortn     & amortn
----------------------------------------------------------------------------
                                       £m          £m           £m       £m

GROUP TURNOVER (note 2)            1,144.1     1,144.1      1,080.1 1,080.1
----------------------------------------------------------------------------
GROUP OPERATING PROFIT (notes 2&3)    42.1       110.9        119.1    99.9
Share of operating profit (loss)
  in joint venture                     1.3         -            -      (2.8)
Share of operating profits
  (losses) in associates              (2.5)       (2.5)         0.5     0.5
----------------------------------------------------------------------------
TOTAL OPERATING PROFIT                40.9       108.4        119.6    97.6
Non-operating exceptional
  items (note 3)                       -           -            -      (0.1)
----------------------------------------------------------------------------
PROFIT BEFORE FINANCE CHARGES         40.9       108.4        119.6    97.5
----------------------------------------------------------------------------
FINANCE CHARGES:
  Group (inc. associates)            (35.2)      (35.2)       (19.4)  (19.4)
  Joint venture                      (15.4)        -            -     (10.9)
----------------------------------------------------------------------------
TOTAL FINANCE CHARGES (note 4)       (50.6)      (35.2)       (19.4)  (30.3)
----------------------------------------------------------------------------
(LOSS) PROFIT ON ORDINARY ACTIVITIES
     BEFORE TAXATION                  (9.7)       73.2        100.2    67.2
Taxation on (loss) profit on
   ordinary activities (note 5)      (17.8)                           (25.4)
----------------------------------------------------------------------------
(LOSS) PROFIT ON ORDINARY ACTIVITIES
     AFTER TAXATION                  (27.5)                            41.8
Minority interests (equity)           (3.8)                            (9.9)
----------------------------------------------------------------------------
(LOSS) PROFIT ATTRIBUTABLE TO MEMBERS
     OF THE HOLDING COMPANY          (31.3)                            31.9
Dividends (equity) (note 6)          (32.8)                           (32.7)
----------------------------------------------------------------------------
TRANSFER FROM PROFIT & LOSS RESERVE  (64.1)                            (0.8)
----------------------------------------------------------------------------
                                                              Attachment (c)
                         CONSOLIDATED BALANCE SHEET
                      at 30 September 2000 (unaudited)
----------------------------------------------------------------------------
                                         notes    at 30.9.00    at 30.9.99
----------------------------------------------------------------------------
FIXED ASSETS                                              £m            £m
Music copyrights                                       541.9         488.9
Goodwill                                                59.8          12.8
Tangible fixed assets                                  317.6         343.9
Investments: associates                                 17.8           5.4
Other fixed asset investments                           22.2          46.8
Investments: own shares                                 20.2          18.1
----------------------------------------------------------------------------
                                                       979.5         915.9
----------------------------------------------------------------------------
CURRENT ASSETS
Stocks                                                  47.0          44.2
Debtors                                              1,037.9         847.3
Investments: liquid funds                   8            2.0           0.9
Cash at bank & in hand & cash deposits      8          171.7         193.8
----------------------------------------------------------------------------
                                                     1,258.6       1,086.2
----------------------------------------------------------------------------
CREDITORS: amounts falling due within one year
Borrowings                                  8         (838.5)       (744.5)
Other creditors                                     (1,197.6)     (1,115.1)
----------------------------------------------------------------------------
                                                    (2,036.1)     (1,859.6)
----------------------------------------------------------------------------
NET CURRENT LIABILITIES                               (777.5)       (773.4)
----------------------------------------------------------------------------
TOTAL ASSETS LESS CURRENT LIABILITIES                  202.0         142.5
----------------------------------------------------------------------------
CREDITORS: amounts falling due after more than one year
Borrowings                                  8         (467.0)       (379.1)
Other creditors                                        (71.4)        (85.8)
----------------------------------------------------------------------------
                                                      (538.4)       (464.9)
----------------------------------------------------------------------------
PROVISIONS FOR LIABILITIES AND CHARGES
Deferred taxation                                      (27.5)        (33.1)
Other provisions                                      (119.3)       (123.1)
Investments: joint venture (HMV Media Group)          (186.3)       (184.1)
----------------------------------------------------------------------------
                                                      (333.1)       (340.3)
----------------------------------------------------------------------------
                                                      (669.5)       (662.7)
----------------------------------------------------------------------------
CAPITAL AND RESERVES
Called-up share capital                                110.4         110.3
Share premium account                                  445.5         442.7
Capital redemption reserve                             495.8         495.8
Other reserves                                         256.0         256.0
Profit & loss reserve
  (including goodwill previously written off)       (2,108.3)     (2,094.3)
----------------------------------------------------------------------------
Equity shareholders' funds                            (800.6)       (789.5)
Minority interests (equity)                            131.1         126.8
----------------------------------------------------------------------------
                                                      (669.5)       (662.7)
----------------------------------------------------------------------------
                                                              Attachment (d)
                                                                            
               STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
           for the six months ended 30 September 2000 (unaudited)
                                      

                                            6 mths ended     6 mths ended
                                                30.9.00           30.9.99
---------------------------------------------------------------------------
                                             £m       £m       £m      £m

(Loss) profit for the period                        (31.3)            31.9
---------------------------------------------------------------------------
Currency retranslation - Group              (3.1)             6.8
Currency retranslation - joint venture      (0.8)             0.3
---------------------------------------------------------------------------
Other recognised (losses) gains                      (3.9)             7.1
---------------------------------------------------------------------------
Total recognised gains and losses
  relating to the period                            (35.2)            39.0
---------------------------------------------------------------------------

                                      
                                      
                                      
             RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
           for the six months ended 30 September 2000 (unaudited)

                                            6 mths ended    6 mths ended
                                                30.9.00          30.9.99
---------------------------------------------------------------------------
                                                      £m              £m

Opening shareholders' funds                        (727.6)         (794.0)
---------------------------------------------------------------------------
(Loss) profit for the period                        (31.3)           31.9
Dividends (equity) (note 6)                         (32.8)          (32.7)
Other recognised (losses) gains                      (3.9)            7.1
Goodwill adjustments                                 (3.5)           (0.3)
Shares issued                                         0.9             1.6
Share of joint venture reserves adjustments          (2.4)           (3.1)
---------------------------------------------------------------------------
Net (decrease) increase in shareholders'
  funds for the period                              (73.0)            4.5
---------------------------------------------------------------------------
Closing shareholders' funds                        (800.6)         (789.5)
---------------------------------------------------------------------------
                                                              Attachment (e)
                                                                            
                      CONSOLIDATED CASH FLOW STATEMENT
           for the six months ended 30 September 2000 (unaudited)
----------------------------------------------------------------------------
                                                6 mths ended 6 mths ended
                                                     30.9.00      30.9.99
----------------------------------------------------------------------------
                                                          £m           £m

NET CASH (OUTFLOW) INFLOW FROM OPERATING ACTIVITIES     (81.9)        53.6

DIVIDENDS RECEIVED FROM ASSOCIATES                        -            0.2

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Net interest paid                                       (36.4)       (18.8)
Dividends paid to minorities                            (15.1)        (5.7)
----------------------------------------------------------------------------
NET CASH OUTFLOW FROM RETURNS ON INVESTMENTS
   AND SERVICING OF FINANCE                             (51.5)       (24.5)
----------------------------------------------------------------------------
TAX PAID                                                (27.2)       (63.5)

NET CASH OUTFLOW FROM CAPITAL EXPENDITURE
  AND FINANCIAL INVESTMENT                               (4.8)       (18.0)

NET CASH OUTFLOW FROM ACQUISITIONS AND DISPOSALS         (7.6)      (140.8)

EQUITY DIVIDENDS PAID                                     -          (33.1)
----------------------------------------------------------------------------
NET CASH OUTFLOW BEFORE MANAGEMENT
  OF LIQUID RESOURCES AND FINANCING                    (173.0)      (226.1)
----------------------------------------------------------------------------
Issue of Ordinary Share capital                           0.9          1.6
Management of liquid resources (note 8)                  40.4          9.4
Financing: New loans (note 8)                           330.0        788.9
           Loans repaid (note 8)                       (260.5)      (497.7)
----------------------------------------------------------------------------
NET CASH INFLOW FROM MANAGEMENT OF
   LIQUID RESOURCES AND FINANCING                       110.8        302.2
----------------------------------------------------------------------------
(DECREASE) INCREASE IN CASH (note 8)                    (62.2)        76.1
----------------------------------------------------------------------------
                                                              Attachment (f)
                                      
                 CONSOLIDATED CASH FLOW STATEMENT continued
           for the six months ended 30 September 2000 (unaudited)

Reconciliation of operating profit to net cash flow from operating
activities:
----------------------------------------------------------------------------
                                                6 mths ended 6 mths ended
                                                     30.9.00      30.9.99
----------------------------------------------------------------------------
                                                          £m           £m

Group operating profit                                   42.1         99.9
Depreciation charge                                      28.3         27.9
Amortisation charge:
  Music copyrights                                       20.6         15.2
  Goodwill                                                5.3          0.3
Amounts provided                                          4.0          1.8
Provisions utilised:
  Disposals and fundamental reorganisations              (5.0)        (0.1)
  Other                                                 (11.1)        (6.6)
(Increase) decrease in working capital:
  Stock                                                  (6.1)         2.2
  Debtors                                              (161.9)       (43.5)
  Creditors                                               1.9        (43.5)
----------------------------------------------------------------------------
NET CASH (OUTFLOW) INFLOW FROM OPERATING ACTIVITIES     (81.9)        53.6
----------------------------------------------------------------------------

                                                              Attachment (g)
                                                                            
                            NOTES TO THE ACCOUNTS
           for the six months ended 30 September 2000 (unaudited)

NOTE 1 - ACCOUNTING POLICIES

Basis of preparation

The interim financial information comprises the accounts of the Company and
its subsidiaries prepared under the historic cost convention and in
accordance with applicable accounting standards.  The results for the six
months ended 30 September 2000 and 30 September 1999 represent continuing
operations.

The interim financial information has been prepared on the basis of the
accounting policies set out in the Group's accounts for the year ended 31
March 2000.  Statutory accounts for the year ended 31 March 2000, which
incorporate an unqualified auditors' report, have been filed with the
Registrar of Companies.




                                                              Attachment (h)
                                                                            
                       NOTES TO THE ACCOUNTS continued
           for the six months ended 30 September 2000 (unaudited)

NOTE 2 - SEGMENTAL ANALYSES

TURNOVER                                        6 mths ended  6 mths ended
                                                     30.9.00       30.9.99
----------------------------------------------------------------------------
                                                          £m            £m
BY CLASS OF BUSINESS:
  Recorded Music                                       951.8         921.4
  Music Publishing                                     192.3         158.7
----------------------------------------------------------------------------
Group turnover*                                      1,144.1       1,080.1
----------------------------------------------------------------------------

BY ORIGIN:
  United Kingdom                                       139.6         114.1
  Rest of Europe                                       315.5         312.0
  North America                                        386.2         340.7
  Asia                                                 210.6         230.4
  Other                                                 92.2          82.9
----------------------------------------------------------------------------
Group turnover*                                      1,144.1       1,080.1
----------------------------------------------------------------------------

BY DESTINATION:
  United Kingdom                                       147.4         116.6
  Rest of Europe                                       320.9         303.6
  North America                                        367.7         344.4
  Asia                                                 212.7         231.3
  Other                                                 95.4          84.2
----------------------------------------------------------------------------
Group turnover*                                      1,144.1       1,080.1
----------------------------------------------------------------------------
* Group turnover excludes the Group's share of amounts relating to the joint
  venture (HMV Media Group) and associates.
                                                              Attachment (i)
                                                                            
                       NOTES TO THE ACCOUNTS continued
           for the six months ended 30 September 2000 (unaudited)

NOTE 2 - SEGMENTAL ANALYSES continued

OPERATING PROFIT                                6 mths ended  6 mths ended
                                                     30.9.00       30.9.99
----------------------------------------------------------------------------
                                                          £m            £m
BY CLASS OF BUSINESS:
  Recorded Music                                        59.9          78.4
  Music Publishing                                      51.0          40.7
----------------------------------------------------------------------------
Group*                                                 110.9         119.1
Operating exceptional items and amortisation**         (68.8)        (19.2)
----------------------------------------------------------------------------
Group operating profit*                                 42.1          99.9
----------------------------------------------------------------------------

BY ORIGIN:
  United Kingdom                                        18.5           8.1
  Rest of Europe                                        36.2          26.8
  North America                                         25.0          33.5
  Asia                                                  21.8          42.6
  Other                                                  9.4           8.1
----------------------------------------------------------------------------
Group*                                                 110.9         119.1
----------------------------------------------------------------------------

* Group operating profit excludes the Group's share of amounts relating to
  the joint venture (HMV Media Group) and associates.

**Comprises operating exceptional items of £(42.9)m (1999/00: £(3.7)m) and
  amortisation of goodwill and music copyrights of £(25.9)m (1999/00:
  £(15.5)m).

  Operating exceptional items and amortisation of goodwill and music
  copyrights by class of business is as follows: Recorded Music £(42.2)m
  (1999/00: £(0.5)m); Music Publishing £(26.6)m (1999/00: £(18.7)m).
  Operating exceptional items and amortisation of goodwill and music
  copyrights by origin is as follows: United Kingdom £(6.8)m (1999/00:
  £(0.5)m);  Rest of Europe £(13.0)m (1999/00: £(0.8)m); North America
  £(37.3)m (1999/00: £(16.1)m); Asia £(8.1)m (1999/00: £(1.8)m); Other
  £(3.6)m (1999/00: £nil).


                                                              Attachment (j)
                                                                            
                       NOTES TO THE ACCOUNTS continued
           for the six months ended 30 September 2000 (unaudited)

NOTE 2 - SEGMENTAL ANALYSES continued

OPERATING ASSETS                                6 mths ended  6 mths ended
                                                     30.9.00       30.9.99
----------------------------------------------------------------------------
                                                          £m            £m
BY CLASS OF BUSINESS:
  Recorded Music                                       374.0         196.4
  Music Publishing                                     517.9         495.8
  Other (HMV Media Group)                             (186.3)       (184.1)
----------------------------------------------------------------------------
Group operating assets                                 705.6         508.1
----------------------------------------------------------------------------

BY ORIGIN:
  United Kingdom                                        (5.7)        (54.8)
  Rest of Europe                                        21.7          (2.1)
  North America                                        533.4         449.7
  Asia                                                 131.1         106.9
  Other                                                 25.1           8.4
----------------------------------------------------------------------------
Group operating assets                                 705.6         508.1
----------------------------------------------------------------------------
                                                                            
                                                              Attachment (k)
                                                                            
                       NOTES TO THE ACCOUNTS continued
           for the six months ended 30 September 2000 (unaudited)

NOTE 3 - EXCEPTIONAL ITEMS

(i)  Operating exceptional items
----------------------------------------------------------------------------
                                                6 mths ended 6 mths ended
                                                     30.9.00      30.9.99
----------------------------------------------------------------------------
                                                          £m           £m

Proposed venture with Warner Music Group - deal costs  (42.9)          -
Windswept Pacific - integration costs                    -            (3.7)
----------------------------------------------------------------------------
Total operating exceptional items                      (42.9)         (3.7)
----------------------------------------------------------------------------
The attributable tax benefit is £nil (1999/00: £0.6m).


(ii) Non-operating exceptional items
----------------------------------------------------------------------------
                                                6 mths ended 6 mths ended
                                                     30.9.00      30.9.99
----------------------------------------------------------------------------
                                                          £m           £m

Disposal costs - Italy manufacturing                     -            (0.3)
Profit on businesses disposed of - HMV                   -             0.2
----------------------------------------------------------------------------
Total non-operating exceptional items                    -            (0.1)
----------------------------------------------------------------------------
The attributable tax charge is £nil (1999/00: £nil).



NOTE 4 - FINANCE CHARGES
                                                6 mths ended 6 mths ended
                                                     30.9.00      30.9.99
----------------------------------------------------------------------------
                                                          £m           £m
Interest payable on:
  Bank overdrafts and loans                             36.6          21.9
  Other                                                  2.7           2.1
----------------------------------------------------------------------------
                                                        39.3          24.0
----------------------------------------------------------------------------
Interest receivable on:
  Bank balances                                         (3.0)         (3.8)
  Other                                                 (1.1)         (0.8)
----------------------------------------------------------------------------
                                                        (4.1)         (4.6)
----------------------------------------------------------------------------
Group finance charges (including associates)            35.2          19.4
Joint venture finance charges (HMV Media Group)         15.4          10.9
----------------------------------------------------------------------------
Total finance charges                                   50.6          30.3
----------------------------------------------------------------------------
Finance charges for associates are £nil (1999/00: £nil).
                                                              Attachment (l)
                                                                            
                       NOTES TO THE ACCOUNTS continued
           for the six months ended 30 September 2000 (unaudited)

NOTE 5 - TAXATION

The tax charge for the six months ended 30 September 2000 has been
calculated by reference to the forecast tax rate for the year ending 31
March 2001 (30.0%).  The total tax charge of £17.8m (1999/00: £25.4m)
includes £nil benefit on exceptional items (1999/00: £0.6m benefit).



NOTE 6 - DIVIDENDS

----------------------------------------------------------------------------
                                              6 mths ended  6 mths ended
                                                   30.9.00       30.9.99
----------------------------------------------------------------------------
                                                        £m            £m
Ordinary dividends:
  Interim                                              33.5          33.5
  Adjustment to the 2000 final dividend                (0.7)          -
  Adjustment to the 1999 final dividend                 -            (0.8)
----------------------------------------------------------------------------
                                                       32.8          32.7
----------------------------------------------------------------------------
The interim dividend of 4.25p per share will be paid on 1 March 2001 to
shareholders on the register at the close of business on 2 February 2001.



                                                              Attachment (m)
                                                                            
                       NOTES TO THE ACCOUNTS continued
           for the six months ended 30 September 2000 (unaudited)

NOTE 7 - EARNINGS PER SHARE
                                               6 mths ended   6 mths ended
                                                    30.9.00        30.9.99
----------------------------------------------------------------------------
Basic earnings per Ordinary Share is calculated as follows:
  Earnings                                          £(31.3)m        £31.9m
  Weighted average number of
     Ordinary Shares in issue                        782.2m         780.4m
  Earnings per Ordinary Share                         (4.0)p          4.1p
----------------------------------------------------------------------------
Diluted earnings per Ordinary Share is calculated as follows:
  Earnings                                          £(31.3)m        £31.9m
  Adjusted weighted average number
     of Ordinary Shares                              783.2m         781.1m
  Earnings per Ordinary Share                         (4.0)p          4.1p
----------------------------------------------------------------------------
Adjusted basic earnings per Ordinary Share is calculated as follows:
  Adjusted earnings                                  £35.4m         £48.7m
  Weighted average number of
     Ordinary Shares in issue                        782.2m         780.4m
  Adjusted earnings per Ordinary Share                 4.5p           6.2p
----------------------------------------------------------------------------
Adjusted diluted earnings per Ordinary Share is calculated as follows:
  Adjusted earnings                                  £35.4m         £48.7m
  Adjusted weighted average number
     of Ordinary Shares                             £783.2m         781.1m
  Adjusted earnings per Ordinary Share                 4.5p           6.2p
----------------------------------------------------------------------------
Adjusted earnings per Ordinary Share calculations are based on earnings
before the impact of both operating and non-operating exceptional items and
amortisation of goodwill and music copyrights.  These calculations are
included as they provide a better understanding of the underlying trading
performance of the Group on a normalised basis.

The adjusted weighted average number of Ordinary Shares used in the diluted
earnings per share calculations, 783.2m (1999/00: 781.1m), is the weighted
average number of Ordinary Shares in issue, 782.2m (1999/00: 780.4m), plus
adjustments for dilutive share options, 1.0m (1999/00: 0.7m).

Reconciliation of adjusted earnings:
----------------------------------------------------------------------------
                                               6 mths ended   6 mths ended
                                                    30.9.00        30.9.99
----------------------------------------------------------------------------
                                                         £m             £m

Earnings                                               (31.3)          31.9
Adjustments:
  Operating exceptional items                           42.9            3.7
  Non-operating exceptional items                        -              0.1
  Amortisation of goodwill and music copyrights         25.9           15.5
  Attributable taxation                                  -             (0.6)
  Minority interest (re: music copyright amortisation)  (2.1)          (1.9)
----------------------------------------------------------------------------
Adjusted earnings                                       35.4           48.7
----------------------------------------------------------------------------

                                                              Attachment (n)
                                                                            
                       NOTES TO THE ACCOUNTS continued
           for the six months ended 30 September 2000 (unaudited)

NOTE 8 - CASH, LIQUID RESOURCES AND FINANCING
The following definitions have been used:
CASH: Cash in hand and deposits repayable on demand if available within 24
hours without penalty and including overdrafts.
LIQUID RESOURCES: Investments and deposits, other than those included as
cash, which are readily convertible into known amounts of cash.
FINANCING: Borrowings less overdrafts, which have been treated as cash.
Analysis of movement in the Group's net borrowings in the period:
----------------------------------------------------------------------------
                                 At                 Exchange           At
                             1.4.00   Cash flow     movement      30.9.00
----------------------------------------------------------------------------
                                 £m          £m           £m           £m

Cash at bank and in hand      221.7        (56.9)        3.2         168.0
Overdrafts                    (55.3)        (5.3)       (3.2)        (63.8)
----------------------------------------------------------------------------
Cash                          166.4        (62.2)        -           104.2
----------------------------------------------------------------------------
Debt due after more than
  one year                   (380.9)       (60.9)      (25.2)       (467.0)
Debt due within one year     (752.9)        (8.6)      (13.2)       (774.7)
----------------------------------------------------------------------------
Financing                  (1,133.8)       (69.5)      (38.4)     (1,241.7)
----------------------------------------------------------------------------
Investments: liquid funds       1.3          0.7         -             2.0
Cash deposits                  44.9        (41.1)       (0.1)          3.7
----------------------------------------------------------------------------
Liquid resources               46.2        (40.4)       (0.1)          5.7
----------------------------------------------------------------------------
Total                        (921.2)      (172.1)      (38.5)     (1,131.8)
----------------------------------------------------------------------------
Cash inflow on financing of £(69.5)m is split between new loans of £(330.0)m
and loans repaid of £260.5m.


The Group's net borrowings at 30 September 2000 comprised:
---------------------------------------------------------------------------
                                                       Liquid
                                                    resources
                                                          and          Net
                                              Cash  financing   borrowings
----------------------------------------------------------------------------
                                                £m         £m           £m

Investments: liquid funds                      -           2.0          2.0
Cash at bank and in hand and cash deposits   168.0         3.7        171.7
Borrowings due within one year               (63.8)     (774.7)      (838.5)
Borrowings due after more than one year        -        (467.0)      (467.0)
----------------------------------------------------------------------------
At 30 September 2000                         104.2    (1,236.0)    (1,131.8)
----------------------------------------------------------------------------
At 31 March 2000                             166.4    (1,087.6)      (921.2)
----------------------------------------------------------------------------