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Euromoney Ins.InvPLC (ERM)

  Print      Mail a friend       Annual reports

Thursday 20 November, 2003

Euromoney Ins.InvPLC

Final Results

Euromoney Institutional InvestorPLC
20 November 2003

Euromoney
Institutional
Investor PLC

Preliminary Announcement

September 30 2003




Contents

Chairman's Statement

Group Profit & Loss Account

Group Balance Sheet

Group Cash Flow Statement

Group Statement of Total Recognized Gains & Losses

Reconciliation of Movements in Shareholders' Funds

Notes to the Preliminary Announcement

Chairman's statement

Highlights                                                2003         2002       change

Turnover                                                £158.9 m     £179.7 m       -12%
Operating profit*                                        £23.8 m      £29.1 m       -18%
Profit before tax, goodwill and exceptional items        £21.3 m      £25.2 m       -15%
Profit before tax                                         £7.4 m      £20.6 m       -64%
Adjusted diluted earnings per share*                      20.5 p       24.3 p       -16%
Dividend                                                 14.75 p      14.75 p          =
Net debt                                                 £67.1 m      £62.8 m        +7%

*(Before goodwill amortization, goodwill impairment and exceptional items as set
out in the attached  profit and loss account)

References to profits in the narrative below are to operating profit before
goodwill amortization and impairment.

Euromoney Institutional Investor PLC, the international publishing, events and
electronic information group reports a profit before tax, goodwill amortization
and exceptional items of £21.3 million in the year to September 30, against
£25.2 million for the previous 12 months. The directors recommend a final
dividend of 9.75p, making a total of 14.75p, the same as the previous year.

Adjusted diluted earnings a share were 20.5p, against 24.3p in 2002.

The company operated in a most difficult business environment during 2003.  The
war in Iraq, a significant fall in the numbers of people travelling on business,
a declining US dollar, and the scare over SARS contributed to an already
unfavourable business climate as financial institutions cut advertising,
subscriptions, sponsorship and training. Throughout, the group maintained its
commitment to position itself for growth, to remain as profitable as possible,
and to continue to seek acquisitions.  In August, the group completed its first
significant acquisition for two years, paying up to £16.5 million for HedgeFund
Intelligence Limited.

Turnover fell from £180 million to £159 million, largely as a result of the fall
in financial advertising, particularly in the US. The weakness of the US dollar
accounted for nearly half the decline, but the group's currency hedging policy
minimised the effect on profits.  The results demonstrate the group's continued
resilience in tough markets.

The fall in turnover was the same in the second half as the first. However,
turnover in the month of September was marginally higher than in September 2002,
and profits in the month were the highest since September 2000, thanks to an
excellent performance from Euromoney in particular, while advertising revenues
at Institutional Investor improved for the first time in many months.  In total,
September accounted for 16% of the group's turnover, and 40% of profits.

The results of the financial publishing businesses depend heavily on the
advertising of global financial institutions, and Wall Street investment banks
in particular.  Both have suffered significant cuts over the past couple of
years.  As a result, financial advertising revenues fell £4.1 million to £32.8
million and profits fell £3.4 million to £10.4 million.  The Institutional
Investor titles, with their focus on the pensions and asset management world,
suffered most, with advertising revenues down 24%. Asiamoney and Latin Finance
also suffered falls in advertising revenues but were able to compensate for this
through the launch of new products.

In contrast, Euromoney, with its debt and emerging markets focus, proved more
robust. The September issue of Euromoney, published to coincide with the annual
IMF/World Bank meeting, achieved revenues close to their highest for five years.
 This excellent performance helped the magazine achieve advertising revenues for
the year close to 2002's level.

Business publishing experienced contrasting performances across its different
sectors. Profits fell £2.5 million to £3.8 million after a 12% fall in
advertising revenues. The travel titles, which cover the aviation, shipping,
business travel and duty-free sectors, accounted for most of this fall and there
is little sign of any recovery in this sector.  In pharmaceuticals, advertising
revenues weakened after a strong first half although the profit impact was
mitigated by continued growth in subscription revenues.  Both the energy and
legal publishing businesses had excellent years, increasing profits and
continuing to grow through the launch of new products.  Gulf Publishing,
acquired in August 2001 when it was loss-making, made a good contribution. The
strategy of growing the business through the roll-out of new products such as
events and handbooks under the World Oil and Hydrocarbon Processing brands is
proving very successful.

In contrast to publishing, both the events and training sides of the business
have held up well. Sponsored conferences and the Institutional Investor
memberships were the best performers, emphasizing the value of the group's high
quality face-to-face meeting businesses.  Events profits fell £1.7 million to
£6.7 million in 2003, although half of this was due to the absence of Vinisud,
the biennial wine exhibition run by our French business meeting subsidiary.  Of
the other four key annual conferences run by the group, three managed to
increase revenues despite the difficult markets.

The training businesses performed well after a difficult 2002.  Profits fell 10%
to £4 million despite suffering from the continued constraints of cuts in
company training budgets, and travel fears following the unrest in the Middle
East and the SARS outbreak in Asia.  Business in Asia has picked up post-SARS
and there are also signs of a recovery at MIS, our Boston-based audit and
information security subsidiary.

Profits from the database and information services businesses increased 55% to
£2.7 million.  After heavy investment in building ISI's emerging market database
in 2000 and 2001, the business reached breakeven in September 2002.  It has
remained profitable and continued to grow throughout 2003, adding new revenues
of $1.2 million - nearly twice the pace it achieved in 2002 - improving its
retention rate and significantly reducing its dependence on the financial
sector.  ISI revenues have more than doubled to $16.2 million since its
acquisition in 1999.  The Dealogic capital markets database joint ventures
experienced a slight fall in subscription revenues, but continue to make a
significant contribution despite the cuts in customer headcount.

Net debt at September 30 was £67.1 million against £62.8 million 12 months
earlier. The group continues to generate strong cash flows with nearly half its
revenues generated from subscriptions and training.  The acquisition in August
of HedgeFund Intelligence, a leading hedge fund publisher and event organizer,
was financed from the group's existing multi-currency revolving credit facility.
The initial consideration was £11 million in cash, with a further payment of up
to £5.5 million payable in February 2005 depending on HFI's profits for the year
to November 30 2004.  HFI is performing well and the group has accrued for the
full deferred payment at year end.

In the first half, two small businesses were sold for a cash consideration of
£700,000 generating an exceptional gain of the same amount.  In the second half,
the group completed a review of its past acquisitions with a view to better
positioning the business for growth.  As a result, certain businesses have been
merged and others restructured, and the associated goodwill is no longer
separately identifiable.  This has led to an exceptional non-cash goodwill
impairment charge of £7.8 million.  The charge relates to acquisitions made
before 1997, since acquisitions after this date are being amortized through the
profit and loss account in accordance with FRS 10. 

In spite of the strong September performance, first quarter advertising revenues
may be flat or slightly lower, although there are more cheerful signs in the
company's training and event businesses. Two thirds of the group's revenues are
in dollars, and continued weakness of the US currency would affect first half
revenues. In general, the financial atmosphere has improved and the directors
believe that the strength of the group's titles, its operational gearing and
strong cash flows, and its investment in new products will drive profits as the
business climate improves.

END

Background note: Euromoney Institutional Investor PLC is listed on the London
and Luxembourg stock exchanges. It is a constituent of the FTSE 250 Index. Daily
Mail and General Trust plc owns 71% of the company.

Padraic Fallon
Chairman
November 20 2003

For further information please contact:

Padraic Fallon  Chairman         020 7779 8556
Richard Ensor   Managing         020 7779 8844
                Director
Colin Jones     Finance Director 020 7779 8666

or visit our website at:  www.euromoneyplc.com


                                                                Back to contents

Group Profit & Loss Account
for the year ended 30 September 2003

                                                                 2003                 2002
                                                Note           £000's               £000's

Turnover                                         2
Acquisition                                                        293                    -
Closed businesses                                                  173                  862
Other continuing operations                                    158,476              178,872
Total turnover                                                 158,942              179,734

Operating profit before goodwill amortization    2
and impairment
Acquisition                                                       (49)                    -
Closed businesses                                                   46                  428
Other continuing operations                                     23,815               28,636
                                                                23,812               29,064
Goodwill amortization                                          (6,787)              (6,125)
Exceptional goodwill impairment                  3             (7,830)                    -

Operating profit/(loss)                          2
Acquisition                                                      (314)                    -
Closed businesses                                                   46                  428
Other continuing operations                                      9,463               22,511
Total operating profit                                           9,195               22,939
Share of operating profit in associates                            418                  413
Exceptional profit on disposal/closure of        3                 701                1,533
businesses

Profit on ordinary activities before interest                   10,314               24,885
and tax
Interest receivable and similar income                           1,600                  589
Interest payable and similar charges                           (4,518)              (4,828)
Net interest                                                   (2,918)              (4,239)

Profit on ordinary activities before tax                         7,396               20,646
Tax on profit on ordinary activities                           (3,101)              (3,961)
Release of prior years' tax provisions                               -                6,754
Total tax (charge)/credit on profit on ordinary  4             (3,101)                2,793
activities

Profit on ordinary activities after tax                          4,295               23,439
Equity minority interests                                        (226)                   38

Profit for the financial year                                    4,069               23,477
Dividends paid and proposed                      8            (12,941)             (12,941)

Retained (loss)/profit for the financial year                  (8,872)               10,536

Basic earnings per share                         9               4.64p               26.76p
Diluted earnings per share                       9               4.64p               26.76p
Adjusted diluted earnings per share before       9              20.50p               24.29p
goodwill amortization and exceptional items
Dividend per share                                              14.75p               14.75p


                                                                Back to contents

Group Balance Sheet
as at 30 September 2003

                                                            2003                 2002
                                                          £000's               £000's

Fixed assets
Intangible assets                                         33,757               24,685
Tangible assets                                            8,666                9,893
Investments                                                  505                  195

                                                          42,928               34,773

Current assets
Debtors                                                   47,017               40,007
Cash at bank and in hand                                  10,772               35,633

                                                          57,789               75,640

Creditors: amounts falling due within                   (59,907)             (38,354)
one year

Net current (liabilities)/assets                         (2,118)               37,286

Total assets less current liabilities                     40,810               72,059

Creditors: amounts falling due after more               (64,680)             (98,350)
than one year
Provisions for liabilities and charges                         -                (127)
Accruals                                                (17,032)             (17,258)
Deferred income                                         (32,330)             (31,946)
Accruals and deferred income falling                    (49,362)             (49,204)
due within one year

Net liabilities                                         (73,232)             (75,622)

Capital and reserves
Called up share capital                                      219                  219
Share premium account                                     33,749               33,743
Capital redemption reserve                                     8                    8
Profit and loss account                                (107,391)            (109,775)

Equity shareholders' deficit                            (73,415)             (75,805)
Equity minority interests                                    183                  183
                                                        (73,232)             (75,622)


                                                                Back to contents

Group Cash Flow Statement
for the year ended 30 September 2003

                                                            2003                  2002
                                       Note               £000's                £000's

Net cash inflow from continuing         5                  24,435                30,033
operating activities

Returns on investments and servicing
of finance
Interest received                                           1,600                   589
Interest paid                                             (3,116)               (4,769)
Dividends paid to minorities                                (192)                 (126)

                                                          (1,708)               (4,306)
Taxation
UK tax paid                                               (4,265)               (3,288)
Overseas tax paid                                         (1,484)               (1,090)
UK tax received                                               477                    57
Overseas tax received                                         361                   647

                                                          (4,911)               (3,674)
Capital expenditure and financial
investment
Purchase of tangible fixed assets                         (1,258)               (6,251)
Sale of tangible fixed assets                                  28                   162

                                                          (1,230)               (6,089)

Acquisitions and disposals
Purchase of unincorporated businesses                           -                 (379)
Purchase of subsidiary undertakings                      (11,218)                     -
Purchase of additional interests in                         (166)                  (43)
subsidiary undertakings
Cash acquired with subsidiary                                 480                     -
undertakings
Proceeds on sale of businesses                                701                 1,772

                                                         (10,203)                 1,350

Equity dividends paid                                    (12,941)              (12,941)

Cash (outflow)/inflow before financing                    (6,558)                 4,373

Financing
Issue of new ordinary share capital                             6                     4
Redemption of secured loan stock                             (16)                  (35)
Repayment of loan by associate                                  -                   398
Revolving credit facilities:
    Increase in borrowings                                 21,303                34,236
    Repayment of borrowings                              (52,138)              (31,759)
Loan repaid to DMGT group company                         (4,774)              (12,163)
Loan received from DMGT group company                      17,640                12,163
Receipts on forward hedges                                      -                   533
                                                         (17,979)                 3,377

(Decrease)/increase in cash during the  6                (24,537)                 7,750
year


                                                                Back to contents

Group Statement of Total Recognized Gains and Losses
for the year ended 30 September 2003

                                                             2003               2002
                                                           £000's             £000's

Profit for the financial year                               4,069             23,477
Foreign exchange translation differences                    4,477              6,801
Tax on foreign exchange translation                             -              (740)
differences

Total recognized gains and losses for the                   8,546             29,538
year


                                                                Back to contents

Reconciliation of Movements in Shareholders' Funds
for the year ended 30 September 2003

                                                             2003              2002
                                                           £000's            £000's

Profit for the financial year                               4,069            23,477
Dividends paid and proposed                              (12,941)          (12,941)
                                                          (8,872)            10,536

Proceeds from exercise of share options                         6                 4
Reinstatement of goodwill                                   6,779               512
Other recognized gains and losses relating to               4,477             6,061
the year

Net decrease in shareholders' deficit                       2,390            17,113

Opening shareholders' deficit                            (75,805)          (92,918)

Closing shareholders' deficit                            (73,415)          (75,805)


                                                                Back to contents

Notes to the Preliminary Announcement 2003

 1  Basis of Preparation

The financial information set out in this announcement does not constitute the
company's statutory accounts for the years ended September 30 2003 but is
derived from those accounts. Statutory accounts for 2002 have been delivered to
the Registrar of Companies, and those for 2003 will be delivered following the
company's annual general meeting. The auditors have reported on those accounts;
their report was unqualified and did not contain statements under section 237
(2) or (3) of the Companies Act 1985. 

The financial information for the year ending September 30 2003 has been
prepared in accordance with the accounting policies set out in the group's 2002
annual report, except for the reclassification of accruals which were included
in creditors due within one year and are now included in accruals and deferred
income on the face of the balance sheet.

2  Segmental analysis

                    United Kingdom                 North America                 Rest of World              Total

                   2003         2002            2003         2002                 2003     2002       2003          2002
                 £000's       £000's          £000's       £000's               £000's   £000's     £000's        £000's
Turnover
By
destination:
Other 
continuing       29,283       32,406          62,877       71,558               66,316   74,908   158,476       178,872
businesses
Closed 
businesses            -           59               -          272                  173      531       173           862
Acquisitions        156            -              93            -                   44        -       293             -
                 29,439       32,465          62,970       71,830               66,533   75,439   158,942       179,734


                     United Kingdom                 North America               Rest of World             Total

                   2003         2002            2003         2002               2003        2002     2003          2002
                 £000's       £000's          £000's       £000's             £000's      £000's   £000's        £000's
Turnover
By activity
and source:
Financial        24,456       26,118          32,412       40,492              1,408       1,502   58,276        68,112
publishing
Business         18,828       22,606           9,607       11,193              2,636       2,935   31,071        36,734
publishing
Training         13,207       13,982           5,187        6,236              1,702       2,194   20,096        22,412
Conferences and  14,162       14,786          14,722       15,199              6,352       7,793   35,236        37,778
seminars
Databases and     4,371        4,312           3,052        3,156              6,374       6,368   13,797        13,836
information services
Closed                -          105               -          267                173         490      173           862
businesses
Acquisitons*        293            -               -            -                  -           -      293             -
                 75,317       81,909          64,980       76,543             18,645      21,282  158,942       179,734


                      United Kingdom              North America                     Rest of World            Total

                   2003         2002            2003         2002               2003         2002      2003         2002
                 £000's       £000's          £000's       £000's             £000's       £000's    £000's       £000's
Operating
profit
By activity
and source:
Financial         6,839        7,866           3,521        5,831                 87          173   10,447        13,870
publishing
Business          2,761        4,650           1,277        1,379              (286)          250    3,752         6,279
publishing
Training          2,900        2,923             758        1,137               325           389    3,983         4,449
Conferences 
and seminars      2,424        3,584           3,388        3,087               866         1,712    6,678         8,383
Databases and     2,364        3,347             361        (983)                12         (606)    2,737         1,758
information 
services
Closed              (8)         (11)               3          384                51            55       46           428
businesses
Acquisitions*      (49)            -               -            -                 -             -     (49)             -
Unallocated 
corporate       (3,650)      (6,026)           (132)         (77)                 -             -  (3,782)       (6,103)
costs
                 13,581       16,333           9,176       10,758             1,055         1,973   23,812        29,064
Goodwill        (7,053)        (328)         (7,543)      (5,776)              (21)          (21) (14,617)       (6,125)
amortization
Operating 
profit            
after goodwill
amortization      6,528       16,005           1,633        4,982             1,034        1,952     9,195        22,939

* Acquisition revenue and profit stem entirely from the financial publishing
sector. 

The goodwill amortization of  £14,617,000 (2002: £6,125,000) can be allocated as
follows; Business publishing, £6,889,000 (2002: £754,000); Conferences and
seminars, £1,559,000 (2002: £190,000); and Databases and information services,
£5,904,000 (2002: £5,181,000); Acquisitions, £265,000 (2002: £nil).

3  Exceptional items

Exceptional goodwill impairment

The group regularly performs a review of its portfolio and this year the review
has resulted in additional goodwill write offs in the profit and loss account. 
The group has accelerated the amortization of goodwill on its recent Gulf
acquisition from 20 years to 10 years and has written down other portfolio
assets where goodwill was held on the balance sheet by £1,051,000.   In
addition, the group has taken a writedown of £6,779,000 through the profit and
loss account for goodwill that was previously written off against reserves under
SSAP 22 on several investments either where the goodwill is now no longer
separately identifiable as a result of business merger or where the immediate
prospects for the business are uncertain.

Exceptional profit on disposal/closure of businesses

2003

In January 2003, the group sold two titles owned by Asia Law and Practice for a
profit of £701,000 after related sale costs. There was no goodwill associated
with the sale.

2002

In March 1999, the group sold its investment in 100% Design Limited for a cash
consideration of £743,000 and a performance based deferred consideration. 
During 2002, the group received the final element of the deferred consideration
amounting to £1,772,000.

In the first half of 2002, the group closed its Technology + Media Limited
business, which resulted in a goodwill write off of £239,000.

 4  Tax on profit on ordinary activities
                                                                     2003              2002
                                                                   £000's            £000's
    United Kingdom
    Corporation tax at 30% (2002: 30%)                               2,958             4,320
    Associates                                                         108               125
    Release of prior years' provisions                                   -           (6,754)
    Over provision in respect of prior years                         (523)             (403)
                                                                     2,543           (2,712)
    Foreign tax
    Overseas taxation                                                  686               766
    Under provision of overseas taxation in respect of prior            69               335
    periods
    Total current tax                                                3,298           (1,611)
    Deferred tax
    Origination and reversal of asset timing differences                83             (720)
    Origination and reversal of liability timing                     2,773             2,989
    differences
    Increase in discount                                           (2,694)           (2,923)
    Over provision of deferred taxation in respect of prior          (359)             (528)
    periods
    Total deferred tax                                               (197)           (1,182)
    Tax on profit on ordinary activities                             3,101           (2,793)

The standard rate of current tax for the year, based on the UK standard rate of
corporation tax is 30% (2002: 30%). The current tax charge for the year is
different from 30% of profit before tax for the reasons set out in the following
reconciliation:

                                                                     2003          2002
                                                                   £000's        £000's

Profit on ordinary                                                  7,396        20,646
activities before tax

Tax at 30%                                                          2,219         6,194
Factors affecting tax charge
/(credit):
   UK goodwill                                                      4,385         1,838
   amortization
   Non-taxable items and additional deductible UK items           (1,629)       (1,836)
   US goodwill                                                    (1,590)       (3,184)
   amortization
   US state                                                           219           270
   taxes
   Disallowable                                                       124         2,590
   expenditure
   Depreciation in excess of                                           11            20
   capital allowances
   Lower rates of tax on                                               13         (149)
   overseas profits
   Utilization of losses                                                -         (532)
   brought forward
   Release of prior years'                                              -       (6,754)
   tax provisions
   Over provisions in prior                                         (454)          (68)
   years
Current tax charge/(credit)                                         3,298       (1,611)
for the year

The exceptional item in 2003 gives rise to a nominal tax charge as the element
relating to capital gains is not taxable in Hong Kong. The exceptional items in
2002 did not give rise to any tax charge or credit due to the availability of
brought forward capital losses and the non-deductible nature of UK goodwill
amortization on share acquisitions.

The release in 2002 of prior years' tax provisions of £6,754,000 relates to tax
provisions no longer required following agreement of certain open issues with
the UK Inland Revenue in relation to the group's US acquisition structure.

5 Reconciliation of operating profit to net cash inflow from operating activities

                                                                                      2003                2002
                                                                                    £000's              £000's

  Group operating                                                                    9,195              22,939
  profit
  Amortization of                                                                    6,787               6,125
  goodwill
  Impairment of                                                                      1,051                   -
  capitalized
  goodwill
  Goodwill                                                                           6,779                 512
  previously written
  off to reserves,
  reinstated and
  written off (note   3)
  Depreciation of                                                                    2,220               2,827
  tangible fixed
  assets
  Loss on sale of                                                                       21                  32
  tangible fixed
  assets
  (Increase)/                                                                      (6,386)               9,091
  decrease in
  debtors
  Increase/                                                                          4,893            (10,646)
  (decrease) in
  creditors
  Utilization of                                                                     (125)               (847)
  property rental
  provision

  Net cash inflow                                                                   24,435              30,033
  from continuing
  operating
  activities before
  exceptional items



6 Reconciliation of net cash flow to movement in net debt

                                                                                     2003                2002
                                                                                   £000's              £000's

  (Decrease)/increase in cash during                                              (24,537)               7,750
  the year

  Cash outflow/(inflow) from change                                                 13,211             (2,442)
  in debt finance
  Decrease in net amounts due from                                                   4,774                   -
  DMGT group undertakings

                                                                                   (6,552)               5,308
  Other non-cash
  items:
  Currency                                                                           3,677               5,075
  translation
  differences
  Other non-cash                                                                   (1,382)                   -
  changes

  Movement in net                                                                  (4,257)              10,383
  debt in the year

  Net debt at                                                                     (62,846)            (73,229)
  October 1

  Net debt at                                                                     (67,103)            (62,846)
  September 30

7 Analysis of changes in net debt
                                                                                    Other                  At
                       At October 1                            Exchange          non-cash        September 30
                               2002      Cash flow            movements           changes                2003
                             £000's         £000's               £000's            £000's              £000's

  Cash at bank and            35,633       (24,318)                (543)                 -              10,772
  in hand
  Bank overdrafts               (76)          (219)                    3                 -               (292)
                              35,557       (24,537)                (540)                 -              10,480

  Debt due within           (11,499)       (17,624)                  801             (839)            (29,161)
  one year
  Debt due in more          (98,350)         30,835                4,217           (1,382)            (64,680)
  than one year

                           (109,849)         13,211                5,018           (2,221)            (93,841)
  Amounts owed by             11,446          4,774                (801)               839              16,258
  DMGT group
  undertakings

  Total                     (62,846)        (6,552)                3,677           (1,382)            (67,103)

8  Dividends
                                                                     2003                 2002
                                                                   £000's               £000's

   Interim paid 5p per share (2002: 5p)                              4,390                4,390
   Final proposed 9.75p per share (2002: 9.75p)                      8,560                8,560
                                                                    12,950               12,950
   Employees' Share Ownership Trust dividend                           (9)                  (9)
                                                                    12,941               12,941

9  Earnings per share

                                                                     2003                 2002
                                                                   £000's               £000's

   Basic earnings                                                    4,069               23,477
   Goodwill amortization                                             6,787                6,125
   Exceptional goodwill impairment (note 3)                          7,830                    -
   Exceptional profit on disposal/closure of businesses              (701)              (1,533)
   (note 3)
   Provision release in respect of prior period tax (note 4)             -              (6,754)
   

   Adjusted earnings before goodwill amortization and               17,985               21,315
   exceptional items

                                                                   Number               Number
                                                                    000's                000's

   Weighted average number of shares                                87,796               87,793
   Shares held by the Employees' Share Ownership Trust                (59)                 (59)
                                                                    87,737               87,734
   Effect of dilutive share options                                      -                    1
   Diluted weighted average number of shares                        87,737               87,735


                                                           Pence per share      Pence per share

   Basic earnings per share                                           4.64                26.76
   Effect of dilutive share options                                      -                    -
   Diluted earnings per share                                         4.64                26.76
   Effect of goodwill amortization                                    7.74                 6.98
   Effect of exceptional goodwill impairment                          8.92                   -
   Effect of profit on disposal/closure of businesses               (0.80)               (1.75)
   Effect of prior years' provision release                              -               (7.70)

   Adjusted diluted earnings per share before goodwill               20.50                24.29
   amortization and exceptional items

The adjusted diluted earnings per share figure has been disclosed since the
directors consider it to give a more meaningful indication of the underlying
trading performance.



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