Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

GKN PLC (GKN)

  Print      Mail a friend       Annual reports

Friday 29 April, 2005

GKN PLC

GKN 2004 Results under IFRS

GKN PLC
29 April 2005







  GKN plc: The Impact of International Financial Reporting Standards ('IFRS')
                   Re-statement of 2004 Financial Information

Financial Results                                              2004        2004
                                                               IFRS   UK GAAP *
                                                        (unaudited)
Sales - continuing subsidiaries                             £3,481m     £3,484m
Trading profit - continuing subsidiaries before
significant                                                   £215m       £162m
items**
Operating loss - continuing subsidiaries                     £(24)m      £(87)m
Profit / (loss) before tax before significant items -
continuing operations**                                       £155m       £132m
Profit / (loss) before tax - continuing operations           £(83)m     £(118)m
Profit from discontinued operations                           £887m       £720m
Profit for the year                                           £772m       £580m
Earnings per share                                           105.0p       78.8p
Net assets                                                    £928m     £1,490m

* The UK GAAP numbers presented above are as reported in the 2004 Annual Report
reformatted in line with presentational requirements under IFRS.
** Significant items are those which because of size or incidence require
separate disclosure to enable underlying trading performance to be assessed.
They comprise restructuring costs, asset impairment charges and profits on sale
of businesses which were classified as exceptional in the 2004 UK GAAP accounts.

Highlights

   •No further material differences highlighted from December 2004 IFRS
    update.
   •Improvement in reported results arises primarily from treatment of
    pension obligations.
   •Presentation of Income Statement reformatted under IFRS to focus on
    continuing operations.
   •Business trading fundamentals, cash generation and operational
    performance, not affected.
   • Reconciliation of profit before tax, goodwill amortisation and
    exceptional items:

                                                          2004            2004
                                                          IFRS          Result
                                                            £m              £m
PBT (UK GAAP)                                              221             221
Pensions (net)                                              26               -
Share based payments                                        (3)              -
                                                         -------          ------
                                                           244             221
Presentation of JV tax                                      (3)             (3)
                                                         -------          ------
                                                           241             218
                                                         -------          ------
                                                         -------          ------
Continuing operations                                      155             132
Discontinued operations                                     86              86
                                                         -------          ------
                                                           241             218
                                                         -------          ------

Nigel Stein, Finance Director of GKN plc, commented:

'The transition to IFRS has introduced accounting treatment and presentational
changes. The positive impact on our reported 2004 results is, however, in line
with the guidance we gave last December.

'The major change relates to pension accounting where deficits now come on to
the balance sheet as liabilities whereas under UK GAAP they were written off
through the Income Statement. This change increases reported profits, though the
underlying performance and fundamentals of the Group remain unchanged.

'Familiarity with the new concepts and formats introduced by IFRS will develop
over time, both within GKN and the wider financial community. As always we will
endeavour to keep all stakeholders informed on a timely basis of the key
elements of the Group's performance.'



Further enquiries:

GKN Corporate Communications
Tel: 020 7463 2354

The full text of this release together with an appendix containing extracts from
the IFRS Financial Statements may be downloaded from www.gkn.com.

There will be a webcast presentation by Nigel Stein, Group Finance Director at
10.00 BST followed by a question and answer session for analysts and investors.

To participate in the question and answer session please dial

From the UK: 0845 140 0173
From overseas: +44 1452 568 060




1.0                   Introduction
The purpose of this statement is to provide an update on, and more details of,
the impact of International Financial Reporting Standards (IFRS) on GKN's 2004
Financial Statements. We provided an indication of the major impacts on the
Income Statement with our trading update statement on 13 December last year and
can confirm that no additional factors affecting 2004 profits have emerged since
then. The appendix to this statement contains reconciliations of the 2004 Income
Statement, Cash Flow and Balance Sheets from a UK GAAP to an IFRS basis. These
statements are unaudited.

This statement contains no information in respect of 2005 performance under
IFRS.

2.0                   Differences between UK GAAP and IFRS

For GKN in 2004 the key differences between UK GAAP and IFRS are identified
below and their impact is summarised in the tables above and at the end of this
section. Paragraph 2.8 details presentational differences, the key of which for
GKN in 2004 is the treatment of discontinued activities (mainly AgustaWestland).

2.1                   IAS 19 - Employee Benefits

Under UK GAAP employee defined benefit arrangements were accounted for under
SSAP 24 where the cost of providing the benefits was charged against operating
profit on a systematic and rational basis over the period during which the Group
expected to derive benefits from the employees' services. The SSAP 24 charge
includes the service cost of benefits and imputed interest costs on balance
sheet prepayments and scheme surpluses and or deficits. The application of SSAP
24 resulted in the recognition of a prepayment, this asset is reversed as a
result of IAS 19 adoption.

IAS 19 permits an approach very similar to FRS 17 to be used and we have adopted
this. Therefore the IFRS employee benefits numbers now being reported are
consistent with the note disclosures given in our 2004 Annual Report under UK
GAAP. There is a difference in the valuation of equity investments in that FRS
17 requires mid-market price to be used whereas IFRS requires the bid price to
be used. This has resulted in an increase of £7m in the post-employment
liability as at 31 December 2004 previously reported under FRS17.

In summary, IAS 19 results in the Group's pension deficits, primarily that
relating to the UK scheme, being recorded as a balance sheet liability. The
impact of changes in the value of the deficits will be recorded in the Statement
of Recognised Income and Expenses rather than the Income Statement. Annual
charges to the Income Statement will continue to comprise a service cost,
charged against operating profit, and a finance cost, now to be charged along
with other interest and similar charges.

Adopting IAS 19 results in a positive impact of £26m on profit before tax in
2004 compared with SSAP24 although net shareholders' funds at 31 December 2004
are reduced by £786m before the recognition of a deferred tax asset.

2.2                   IFRS 2 - Share-based payments

Under UK GAAP the cost of share awards and share based arrangements was based on
the intrinsic value of the awards, with the exception of SAYE schemes for which
no cost was recognised.

IFRS 2 requires the charges in respect of remuneration schemes with share based
components to reflect the fair values. This has meant that options granted since
7 November 2002 have been valued at the date of grant and amortised through the
Income Statement over a defined period. The Group granted options in both 2003
and 2004. The charge for these awards and other relevant remuneration schemes
was £3m in the 2004 IFRS accounts.

2.3                   IAS 38 - Research and Development

Under UK GAAP research costs must be written off immediately whereas development
costs may either be capitalised or written off as incurred; the latter option
being that adopted in our UK GAAP Annual Reports. IAS 38 requires research costs
to be written off as incurred while development expenditure is required to be
capitalised where certain criteria are met.

Under IFRS we will write off research costs immediately while development costs
will be capitalised where a new or substantially improved product or process
results and other relevant criteria are met.

In our Automotive and OffHighway businesses, most development expenditure
results in incremental improvements to existing products or processes and
significant capitalisation is considered unlikely except in those businesses,
such as Torque Technology, which are in a relatively early stage of development.
As a result, in the IFRS balance sheets at 1 January and 31 December 2004 there
are no costs to capitalise which were previously written off under UK GAAP.

In our Aerospace businesses, certain development expenditure has been
capitalised under UK GAAP as part of non-recurring costs ('NRCs') which are held
as inventory. Given the nature of these contracts IFRS necessitates the
reclassification of NRCs including elements as intangible assets. As a direct
consequence, the NRCs under IFRS are subject to a different basis of
establishing their appropriate carrying value. A restatement of £13m has been
reflected in the IFRS transition balance sheet in respect of this. No impairment
charges were required to be recognised during 2004 though a lower level of
amortisation has resulted.

NRC reclassification resulted in £36m being reclassified from inventory to
intangible assets.

2.4                   IFRS 3 - Business Combinations

Under UK GAAP goodwill on acquisitions made since 1 January 1998 was capitalised
and amortised over its estimated economic useful life up to a maximum of 20
years. When an acquired business was sold and goodwill had been previously
deducted from reserves, the goodwill was taken into account in calculating the
profit or loss on sale.

IFRS 3 deals with accounting for businesses acquired and requires intangible
assets (such as intellectual property) to be fair valued at the date of
acquisition and amortised over an appropriate time period. Any residual goodwill
is not amortised but is subject to an annual impairment review. Consequently,
there is no charge for goodwill amortisation in 2004. On disposals the recycling
of goodwill previously written off to reserves is not required under IFRS.
Furthermore, cumulative exchange differences on net investments are deferred
within equity until realisation of the investment. These exchange differences
are recognised in the Income Statement in the period of realisation.
The transitional arrangements contained in IFRS do not require this standard to
be applied to acquisitions made prior to 1 January 2004 and the Group has taken
this option.

The IFRS acquisition balance sheet for Tochigi Fuji Sangyo contained capitalised
intellectual property of £5m which is being amortised over 5 years and has
therefore resulted in a £1m charge to profit for the 9 months of 2004 for which
it was a subsidiary.

2.5                   Deferred Tax

Under UK GAAP deferred tax was provided on timing differences between the
accounting and taxable profit i.e. focused on the Income Statement. Deferred tax
assets are only recognised to the extent that they may be regarded as
recoverable. IFRS results in deferred tax being provided on all temporary
differences between book carrying values and the tax base of assets and
liabilities, i.e. a balance sheet focus.

Excluding the recognition of post-employment obligations under IAS 19, the net
effect of the adoption of IFRS on the deferred tax position of the Group at 31
December 2004 is an increase in the net liability by £15m to £69m (1 January
2004 - £28m increase to £72m). This movement is comprised of an increase of £52m
(1 January 2004 - £56m) in the liability on fixed assets (due mainly to the
requirement under IFRS to recognise deferred tax on non-qualifying assets on
business combinations), partially offset by an increase of £33m (1 January 2004
- £22m) in the asset in respect of other temporary differences (largely due to
the reversal of liabilities in respect of SSAP24 pension balances not permitted
under IFRS accounting), and a £4m (1 January 2004 - £6m) movement in the
recognition of deferred tax assets for tax losses.

As at 31 December 2004 a deferred tax asset of £184m (1 January 2004 - £203m)
arose from the inclusion of pension and other post-employment benefits under
IAS19, £12m of this £19m movement on pensions was an additional charge to the
Income Statement.

Including IAS 19 the total net deferred tax balance at 31 December 2004 is an
asset of £115m (1 January 2004 - £131m).

2.6                   Other Changes

IFRS has resulted in a number of other minor changes such as the
reclassification of computer software from tangible (PPE) to intangible assets,
the definition of cash and cash equivalents and increased disclosure in certain
areas. These changes have no material effect on reported profits or net assets.

2.7                   AgustaWestland

The IFRS financial information for AgustaWestland used in restating the 2004 GKN
financial statements has been based on data supplied by AgustaWestland which has
yet to be subject to any formal external review. The only impact on the 2004
Income Statement of any further adjustment will be to alter the analysis within
profit from discontinued operations on the face of the Income Statement.

2.8                   Presentational Differences

There are also a number of presentational differences in the primary financial
statements, the main areas of which are identified below.

2.8.1.           Joint Ventures

IFRS permits two alternative treatments of joint ventures, both of which differ
from UK GAAP.

(i)             The post tax results of joint ventures are included in the
consolidated Income Statement before profit before tax. In the consolidated
balance sheet the investment is carried as a fixed asset at the share of the
joint venture's equity (the equity method).

(ii)           The share of the joint venture's profit, balance sheet and cash
flow is incorporated in the shareholder's financial statements (proportional
consolidation).

Under UK GAAP profits (and sales) are proportionally consolidated while the
investment is carried at the share of equity but with expanded disclosure.
We have decided to follow the first IFRS option which in future will mean a
slight reduction in profit before tax and lower headline sales.

2.8.2.           Discontinued Businesses

Results of continuing and discontinued activities are segregated in the Income
Statement. Sales of discontinued businesses are not reported and their profits
are shown below those of continuing operations. Separate EPS figures are also
required to be shown. The identification of discontinued operations is broadly
similar under UK GAAP and IFRS.

2.8.3.           Exceptional Items

IFRS does not use the terminology 'exceptional items'. Instead, significant
items are separately reported where this is necessary to enable results to be
properly interpreted.

We intend to show profits and losses on business divestments separately within
operating profit together with such other items which need disclosure because of
their size or incidence. These will include the cost of major restructuring
initiatives.

2.8.4.           Segmental Reporting

Applying the more prescriptive nature of segmental reporting dictated by IFRS
our segmental analysis will change going forward in two significant respects.
Firstly, the analysis will provide greater segmentation between the constituent
businesses within GKN including an element of disaggregation of our Automotive
businesses, separate disclosure of the OffHighway business and identification of
unallocable central stewardship costs. Secondly, additional net asset and other
financial information will be provided.

Consistent with the overall treatment of joint ventures within the Income
Statement drawn up under IFRS, segmental reporting of joint ventures will be at
the after tax level.

A segmental analysis of 2004 sales and profit is presented within the appendix
to this press release.

2.8.5.           Dividends

IFRS does not permit dividends to be accrued where they have not been approved
at the balance sheet date. Under current practice, therefore, the final dividend
will not be provided for until approved at the annual general meeting whilst the
interim dividend will now not be provided for until it has been approved by the
Board.

2.8.6.           Retirement Obligations

Retirement obligations are required to be shown separately within long-term
liabilities.

3.0                   Summary of the Impact on 2004 of moving to IFRS from UK
GAAP
                                   Before goodwill        Goodwill       Total
                                  amortisation and    amortisation
                                                               and
                                       exceptional     exceptional
                                             items           items
                                                £m              £m         £m
                           
Profit after tax for the year ended
31 December 2004
As reported under UK GAAP                      159             421         580
IAS 19 - post employment
obligations:
Trading profit                                  55               -          55
Financing cost                                 (29)              -         (29)
Deferred tax                                   (12)              -         (12)
Share based payments                            (3)              -          (3)
Lower amortisation of NRCs                       1               -           1
Amortisation of purchased intangible
assets                                          (1)              -          (1)
Deferred tax                                     2               -           2
Amortisation of goodwill written
back:
Subsidiaries                                     -              23          23
Joint ventures - continuing                      -               1           1
Joint ventures - discontinued                                    5           5
Impairment of goodwill                           -             (12)        (12)
Adjustment to profit on sale of
AgustaWestland:
Change in share of equity following
application of IFRS                              -              57          57
Deferred tax on properties sold                  -               9           9
Realisation of cumulative currency
adjustment                                       -              (4)         (4)
Non recycling of goodwill written
off to reserves on                              
original acquisition                             -             100         100
                                          ----------      ----------      ------
As reported under IFRS                         172             600         772
                                          ----------      ----------      ------

Net assets                             31 December                   1 January
------------                                  2004                        2004
                                                £m                          £m
As reported under UK GAAP                    1,490                         942
Retirement benefit obligations:
Increase in liability under IAS 19            (588)                       (678)
Write off of SSAP 24 prepayment               (198)                        (93)
Deferred tax relating to pension
liability                                      184                         203
NRC restatement on transition to
IFRS                                           (12)                        (13)
Change in equity value of joint
ventures
AgustaWestland                                   -                         (55)
Fair value adjustments                          (1)                         (1)
Increase in net deferred tax
liability                                      (15)                        (28)
Goodwill amortisation written back              23                           -
Impairment of goodwill                         (12)                          -
Fair value adjustments                          (1)                          -
Provision for final dividend written
back                                            58                          57
                                          ----------                      ------
As reported under IFRS                         928                         334
                                          ----------                      ------

4.0     2005 Financial Statements

4.1     IAS 32 and 39

In addition to the adjustments noted above, 2005 will see the application of IAS
32 and 39 - Financial Instruments.

These require certain financial instruments to be recognised at fair value at
the balance sheet date with changes in value taken through the Income Statement.
This introduces the potential for considerable volatility into the reported
profit unless hedge accounting is used.

The Group policy will be to continue to hedge foreign exchange transactions and
a percentage of its overseas net assets. It is expected that translational
hedges of the Group's overseas assets will be reported using hedge accounting.
We will continue to review the use of transactional hedge accounting.

IAS 32 and 39 comparative figures for 2004 are not required and have not been
prepared. It is not possible to predict the impact of these standards on future
accounting periods.

4.2                   Other Changes

The application and interpretation of IFRS continues to evolve and it may be
that further refinements will be required to the 2004 results when the audited
2005 financial statements are prepared. However, it is not considered likely
that such changes will be material.

5.0                   Conclusion

The application of IFRS to GKN's 2004 results has had a beneficial impact on
reported profits, largely through the changed treatment of pensions and other
post-employment benefits. At the same time net assets have been reduced by the
full recognition of related liabilities on the balance sheet.

Looking forward, the application of IAS 32 and 39 will introduce more volatility
and unpredictability into the Income Statement and, to the extent hedge
accounting is not adopted, we will isolate and explain the impact on the Group's
results.

                                    Appendix
                                    Contents
                                                                         Page

Basis of preparation and changed accounting policies                     11-12

Reconciliation of consolidated income statement for the year ended          13
31 December 2004 from UK GAAP to IFRS

Reconciliation of transition date consolidated balance sheet (1
January 2004)                                                               14
from UK GAAP to IFRS

Reconciliation of consolidated balance sheet at 31 December 2004            15
from UK GAAP to IFRS

Statement of recognised income and expense for the year ended 31
December 2004                                                               16

Reconciliation of cash flow statement for the year ended 31 December
2004                                                                        17
from UK GAAP to IFRS

Reconciliation of cash generated from operations for the year ended         18
31 December 2004

Notes to financial statement reconciliations - analysis of adjustments   19-20

Segmental analysis of sales and profit under IFRS for the year ended        21
31 December 2004

Income statement for the year ended 31 December 2004: UK GAAP in IFRS
format                                                                      22

Balance sheet at 31 December 2004: UK GAAP in IFRS format                   23



Basis of preparation and changed accounting policies

These unaudited extracts from the financial statements have been prepared to
show the impact on GKN's 2004 results of moving from UK GAAP to International
Financial Reporting Standards ('IFRS'). They exclude the impact of IAS32 and
IAS39 which are not applicable until 1 January 2005. UK GAAP information has
been extracted from the Group's audited accounts for the year ended 31 December
2004 which contain an unqualified audit opinion.

They consolidate the accounts for the year to 31 December 2004 of the company
and its subsidiaries unless those subsidiaries are subject to severe long-term
restrictions on the ability of the Group to control them. There have been no
changes to the companies consolidated or their status from UK GAAP.

Transitional Arrangements

Rules regarding transitional arrangements are set out in IFRS 1 which generally
requires full retrospective adoption of all accounting standards effective at
the reporting date. There are, however, certain permitted exceptions in relation
to business combinations and fixed assets carried at cost or earlier valuations
and the Group has taken advantage of these.

Accounting Policies

The implementation of IFRS has resulted in a number of changes in accounting
policies. The main amended policies are summarised below.

Research and Development Costs

Research expenditure is written off as incurred.

Where development expenditure results in new or substantially improved products
or processes and it is probable that recovery will take place, it is capitalised
and amortised over the product's life up to a maximum of 7 years in Automotive
and 15 years in Aerospace starting from the date on which serial production
commences. Costs are capitalised as intangible unless physical assets, such as
tooling, exist when they are classified as tangible fixed assets.

Computer Software Costs

Where computer software costs are capitalised they are categorised as intangible
assets. The amortisation period is from 3-5 years, as under UK GAAP.

Taxation

Full provision is made for deferred tax on all temporary timing differences
resulting from the difference between the carrying value of an asset or
liability and its tax base.

Deferred tax assets are recognised to the extent that it is probable that the
deferred tax asset will be recovered in future. In particular, at 31 December
2004 an asset of £184m (2003- £203m) has been recognised in respect of
post-employment benefit obligations.

No deferred tax is recognised on the unremitted profits of overseas branches,
subsidiaries and joint ventures except to the extent that the parent is unable
to control the timing of any future profit remittances by the overseas entity
and it is probable that a future remittance will take place.

Pensions and Other Post-Employment Benefits

The Group's pension arrangements comprise various defined benefit and defined
contribution schemes throughout the world. In the UK and in certain overseas
companies pension arrangements are made through externally funded defined
benefit schemes, the contributions to which are based on the advice of
independent actuaries or in accordance with the rules of the schemes. In other
overseas companies funds are retained within the business to provide for
retirement obligations.

The Group also operates a number of defined contribution pension schemes and
retirement plans which provide certain employees with defined post-employment
healthcare benefits.

The Group accounts for all post-employment defined benefits schemes through full
recognition of the schemes' surpluses or deficits on balance sheet at the end of
each year. Actuarial gains and losses are included in the statement of
recognised income and expense. Current service costs are recognised within
operating profit. Returns on scheme assets and interest on obligations are
recognised as a component of finance costs.

Share Based Payments

Share options granted to employees since 7 November 2002 are valued at the date
of grant using an appropriate option pricing model and are charged to operating
profit over the performance or vesting period of the scheme. The annual charge
is modified to take account of shares forfeited by employees who leave during
the performance or vesting period and, in the case of non-market related
performance conditions, where it becomes unlikely the option will vest.

Companies Acquired

The opening fair value of businesses acquired since 1 January 2004 includes an
assessment of the value of certain intangible assets. Such assets are amortised
over their useful lives. Any residual goodwill is not amortised but is subject
to an annual impairment review.

Cash and Cash Equivalents

Cash and cash equivalents comprise cash and bank deposits and overdrafts
together with short-term, highly liquid investments.




Reconciliation of consolidated income statement for the year ended 31 December 2004

                                                                   Under IFRS
                                                                   (unaudited)
                                                            ---------------------------
                                                                     Before 
                                      Under  Adjustments        significant Significant
                             Notes  UK GAAP   (unaudited)   Total     items      items*
                                         £m            £m      £m        £m         £m
Sales
Continuing
subsidiaries                     1    3,484            (3)  3,481    3,481           -
                                      -------      --------  ------  -------    --------

Operating profit / (loss)
Trading profit                   2      162            53     215      215           -
Goodwill amortisation            3      (23)           23       -        -           -
Amortisation of purchased
intangibles                      4        -            (1)     (1)      (1)          -
Goodwill impairment and
restructuring
costs                            5     (250)          (12)   (262)       -        (262)
Profit on sale
of businesses                    6       24             -      24        -          24
                                      -------      --------  ------  -------    --------
                                        (87)           63     (24)     214        (238)
                                      -------      --------  ------  -------    --------

Financing costs
Interest payable and similar
charges                                 (69)            -     (69)     (69)          -
Finance cost of net pension
liability                        7        -           (29)    (29)     (29)          -
Interest receivable                      23             -      23       23           -
                                      -------      --------  ------  -------    --------
Total financing costs                   (46)          (29)    (75)     (75)          -
                                      -------      --------  ------  -------    --------

Share of post tax earnings
of continuing joint ventures
and associated company           3       15             1      16       16           -
                                      -------      --------  ------  -------    --------
Loss before tax from
continuing operations                  (118)           35     (83)     155        (238)

Taxation                         8      (22)          (10)    (32)     (45)         13
                                      -------      --------  ------  -------    --------
Loss from continuing
operations                             (140)           25    (115)     110        (225)
                                      -------      --------  ------  -------    --------

Discontinued operations
Share of post tax earnings
of joint ventures                3       57             5      62       62           -
Profit on disposal of
joint ventures, after tax        9      663           162     825        -         825
                                      -------      --------  ------  -------    --------
Profit from discontinued
operations                              720           167     887       62         825
                                      -------      --------  ------  -------    --------

                                      -------      --------  ------  -------    --------
Profit for the year                     580           192     772      172         600
                                      -------      --------  ------  -------    --------

Profit attributable to minority
interests                                 3             -       3        3           -
Profit attributable to equity
shareholders                            577           192     769      169         600
                                      -------      --------  ------  -------    --------
                                        580           192     772      172         600
                                      -------      --------  ------  -------    --------

Earnings per share - p
Total
Basic                                  78.8          26.2   105.0
Diluted                                78.4          26.1   104.5
Continuing operations
Basic                                 (19.5)          3.4   (16.1)
Diluted                               (19.4)          3.4   (16.0)

*Significant items are those which, because of size or incidence, require separate
disclosure to enable underlying trading performance to be assessed. They comprise
restructuring costs and profits on sale of businesses which were classified as
exceptional items in the 2004 UK GAAP accounts.

Reconciliation of transition date consolidated balance sheet (1 January 2004)

                                    Notes     Under   Adjustments    Under IFRS
                                            UK GAAP   (unaudited)   (unaudited)
Assets                                           £m            £m            £m
Non-current assets
Goodwill                               10       340             -           340
Intangible assets                      11         -            34            34
Property, plant and equipment          12     1,329            17         1,346
Investments in joint ventures and
associated
company accounted for
under the equity method                13       286           (56)          230
Other investments                                 6             -             6
Deferred tax assets                    14         6           221           227
Other receivables                      15       114           (93)           21
                                             --------     ---------      --------
                                              2,081           123         2,204
                                             --------     ---------      --------
Current assets
Inventories                            16       487           (64)          423
Trade and other receivables                     510             -           510
Cash and cash equivalents                       131             -           131
                                             --------     ---------      --------
                                              1,128           (64)        1,064
                                             --------     ---------      --------

Total assets                                  3,209            59         3,268
                                             --------     ---------      --------

Liabilities
Current liabilities
Borrowings                                      (37)            -           (37)
Trade and other payables and
provisions                             17      (759)           (8)         (767)
Current tax liabilities                        (166)            -          (166)
Dividend payable                       18       (57)           57             -
                                             --------     ---------      --------
                                             (1,019)           49          (970)
                                             --------     ---------      --------
Non-current liabilities
Borrowings                                     (887)            -          (887)
Deferred tax liabilities               19       (50)          (46)          (96)
Post-employment benefit obligations    20      (233)         (678)         (911)
Provisions for other liabilities
and charges                            21       (78)            8           (70)
                                             --------     ---------      --------
                                             (1,248)         (716)       (1,964)
                                             --------     ---------      --------

Total liabilities                            (2,267)         (667)       (2,934)
                                             --------     ---------      --------

Net assets                                      942          (608)          334
                                             --------     ---------      --------

Equity
Ordinary shares                                 367             -           367
Share premium                                    14             -            14
Other reserves                         22       (56)          (20)          (76)
Retained earnings                               601          (588)           13
                                             --------     ---------      --------
Total shareholders' equity                      926          (608)          318
Minority interests in equity                     16             -            16
                                             --------     ---------      --------
Total equity                                    942          (608)          334
                                             --------     ---------      --------



Reconciliation of consolidated balance sheet at 31 December 2004

                                    Notes     Under   Adjustments    Under IFRS
                                            UK GAAP   (unaudited)   (unaudited)
                                                 £m            £m            £m
Assets
Non-current assets
Goodwill                               10       197            11           208
Intangible assets                      11         -            44            44
Property, plant and equipment          12     1,278             9         1,287
Investments in joint ventures
accounted for                          13        95            (1)           94
under the equity method
Other investments                                 7             -             7
Deferred tax assets                    14         6           193           199
Other receivables                      15       208          (198)           10
                                             --------     ---------     ---------
                                              1,791            58         1,849
                                             --------     ---------     ---------
Current assets
Inventories                            16       507           (64)          443
Trade and other receivables                     577             -           577
Cash and cash equivalents                       860             -           860
                                             --------     ---------     ---------
                                              1,944           (64)        1,880
                                             --------     ---------     ---------

Total assets                                  3,735            (6)        3,729
                                             --------     ---------     ---------

Liabilities
Current liabilities
Borrowings                                      (54)            -           (54)
Trade and other payables and
provisions                             17      (834)           (9)         (843)
Current income tax liabilities                 (128)            -          (128)
Dividend payable                       18       (58)           58             -
                                             --------     ---------     ---------
                                             (1,074)           49        (1,025)
                                             --------     ---------     ---------
Non-current liabilities
Borrowings                                     (741)            -          (741)
Deferred tax liabilities               19       (60)          (24)          (84)
Post employment benefit obligations    20      (266)         (588)         (854)
Provisions for other liabilities
and charges                            21      (104)            7           (97)
                                             --------     ---------     ---------
                                             (1,171)         (605)       (1,776)
                                             --------     ---------     ---------

Total liabilities                            (2,245)         (556)       (2,801)
                                             --------     ---------     ---------

Net assets                                    1,490          (562)          928
                                             --------     ---------     ---------

Equity
Ordinary shares                                 368             -           368
Share premium                                    15             -            15
Other reserves                         22       (44)          (17)          (61)
Own shares                                      (30)            -           (30)
Retained earnings                             1,151          (545)          606
                                             --------     ---------     ---------
Total shareholders' equity                    1,460          (562)          898
Minority interests in equity                     30             -            30
                                             --------     ---------     ---------
Total equity                                  1,490          (562)          928
                                             --------     ---------     ---------



Statement of recognised income and expense for the year ended 31 December
2004
                                            Under   Adjustments    Under IFRS
                                          UK GAAP   (unaudited)   (unaudited)
                                               £m            £m            £m

Currency variations                           (31)            3           (28)
Unrealised gain arising on change in
status of associate                             2             -             2
Actuarial losses arising on retirement
benefit obligations, net of deferred tax 
   - subsidiaries                               -           (50)          (50)
   - joint ventures                             -            (7)           (7)
Share based payments                            -             3             3
                                           --------     ---------      --------
Net losses not recognised in income
statement                                     (29)          (51)          (80)
Profit attributable to equity
shareholders                                  577           192           769
                                           --------     ---------      --------
Total recognised income for the year          548           141           689
Dividends                                     (86)            1           (85)
Issue of ordinary shares net of costs           2             -             2
Purchase of own shares into treasury          (30)            -           (30)
Goodwill previously written off to
reserves                                      100          (100)            -
Cumulative currency difference realised
on disposal of AgustaWestland                   -             4             4
                                           --------     ---------      --------
                                              534            46           580
Shareholders' equity at 1 January 2004        926          (608)          318
                                           --------     ---------      --------
Shareholders' equity at 31 December 2004    1,460          (562)          898
                                           --------     ---------      --------



Reconciliation of cash flow statement for the year ended 31 December 2004

                                            Under   Adjustments     UnderIFRS
                                           UKGAAP   (unaudited)   (unaudited)
                                               £m            £m            £m
Cash flow from operating activities
Cash generated from operations                179            14           193
Interest received                              21             -            21
Interest paid                                 (67)            -           (67)
Tax paid                                      (47)            -           (47)
Dividends received from joint ventures         10             -            10
                                           --------     ---------      --------
Net cash from operating activities             96            14           110
                                           --------     ---------      --------

Cash flow from investing activities
Acquisitions of subsidiaries                  (15)            -           (15)
Acquisitions of joint ventures                 (8)            -            (8)
Proceeds from sale of property, plant and
equipment                                       8            (1)            7
Purchase of property, plant, equipment
and intangible assets                        (184)          (13)         (197)
Proceeds from sale of subsidiaries             29             -            29
Proceeds from sale of joint ventures        1,039             -         1,039
Investment loans and capital
contributions                                  (1)            -            (1)
                                           --------     ---------      --------
Net cash used in investing activities         868           (14)          854
                                           --------     ---------      --------

Cash flow from financing activities
Net proceeds from issue of share capital        2             -             2
Purchase of own shares into treasury          (30)            -           (30)
Finance lease payments                         (1)            -            (1)
Repayment of borrowings                      (127)            -          (127)
Dividends paid to shareholders                (86)            -           (86)
Dividends paid to minority interests           (1)            -            (1)
                                           --------     ---------      --------
Net cash used in financing activities        (243)            -          (243)
                                           --------     ---------      --------

Effect of exchange rate changes                (3)            -            (3)
                                           --------     ---------      --------

Net increase in cash and cash equivalents     718             -           718
Cash and cash equivalents at 1 January
2004                                          109             -           109
                                           --------     ---------      --------
Cash and cash equivalents at 31 December
2004                                          827             -           827
                                           --------     ---------      --------



Reconciliation of cash generated from operations for the year ended 31 December
2004
                                             Under   Adjustments     UnderIFRS
                                            UKGAAP   (unaudited)   (unaudited)
Continuing operations                           £m            £m            £m
Cash generated from operations
Loss from
continuing
operations                                    (140)           25          (115)
Adjustments for:
  Tax                                           22            10            32
  Depreciation and amortisation                160            10           170
  Goodwill amortisation                         23           (23)            -
  Profit on sale of businesses                 (24)            -           (24)
  Impairment of goodwill                       100            12           112
  Impairment of property, plant and           
  equipment                                    104             -           104
  Charge for share based payments                -             3             3
  Interest receivable                          (23)            -           (23)
  Interest payable and similar charges          69             -            69
  Share of post tax earnings of joint         
  ventures                                     (15)           (1)          (16)
Decrease in
post-employment
obligations                                      -          (120)         (120)
Changes in working capital:
  Increase in inventories                      (20)            2           (18)
  Decrease in receivables                        6             5            11
  Additional advance UK pension scheme       
  funding                                     (100)          100             -
  Increase in payables                          17            (9)            8
                                            --------     ---------     ---------
                                               179            14           193
                                            --------     ---------     ---------

There was no cash generated from discontinued activities which were all joint
ventures accounted for under the equity method.



Notes to financial statement reconciliations - analysis of adjustments
                                                                            £m

1   Sales
    Cash discounts allowed re-classified from cost of sales                 (3)
                                                                       ---------

2   Trading profit
    Reduction in pension charge                                             55
    Share based payments                                                    (3)
    Reduction in amortisation of Aerospace non-recurring costs               1
                                                                       ---------
                                                                            53
                                                                       ---------

3   Goodwill amortisation in continuing operations
    Goodwill amortisation not charged under IFRS:
    Subsidiaries                                                            23
    Share of joint ventures                                                  1
                                                                       ---------
                                                                            24
                                                                       ---------
    Goodwill amortisation in discontinued operations                         5
                                                                       ---------

4   Amortisation of purchased intangibles
    Arising on businesses acquired in the year                              (1)
                                                                       ---------

5   Goodwill impairment and restructuring costs
    Impairment of goodwill written back per note 3 above                   (12)
                                                                       ---------

6   Profit on sale of businesses
    Profit on sale of business within continuing operations shown as        24
     exceptional items under UK GAAP                                   ---------

7   Finance cost on net pension liability
    Expected return on pension scheme assets                               106
    Interest on pension scheme obligations                                (135)
                                                                       ---------
                                                                           (29)
                                                                       ---------

8   Taxation
    Deferred tax on post-employment obligation adjustment                  (12)
    Timing differences                                                       2
                                                                       ---------
                                                                           (10)
                                                                       ---------

9   Profit on disposal of joint ventures after tax
    Change in equity value of AgustaWestland following adoption of IFRS     57
    Goodwill written off directly to reserves on original acquisition,     
    not required to be recycled through profit under IFRS                  100
    Cumulative currency differences realised on disposal                    (4)
    Deferred tax release on properties sold                                  9
                                                                       ---------
                                                                           162
                                                                       ---------


     Notes to financial statement reconciliations - analysis of adjustments
     (continued)
                                                            As at        As at
                                                       31December     1January
                                                             2004         2004
                                                               £m           £m
10   Goodwill
     Goodwill written off in 2004 under UK GAAP and           
     reinstated under IFRS                                     23            -
     Less: value impaired                                     (12)           -
                                                          ---------    ---------
                                                               11            -
                                                          ---------    ---------
11   Intangible assets
     Aerospace non-recurring costs transferred from           
     inventories                                               38           36
     Less: restatement                                        (12)         (13)
                                                          ---------    ---------
                                                               26           23
     Computer software transferred from property,             
     plant and equipment                                       14           11
     Intangible assets arising on acquisition in the            4            -
     year                                                 ---------    ---------
                                                               44           34
                                                          ---------    ---------
12   Property, plant and equipment
     Non-recurring costs and tooling transferred from         
     inventories                                               26           28
     Computer software transferred to intangible            
     assets                                                   (14)         (11)
     Fair value adjustments on acquisitions in the             (3)           -
     year                                                 ---------    ---------
                                                                9           17
13   Investments in joint ventures and associated
     company accounted
     for under the equity method
     AgustaWestland                                             -          (55)
     Other                                                     (1)          (1)
                                                          ---------    ---------
                                                               (1)         (56)
                                                          ---------    ---------
14   Deferred tax assets
     Relating to post-employment pension obligation           184          203
     Fixed assets                                             (87)           8
     Other temporary timing differences                        66            6
     Losses                                                    30            4
                                                          ---------    ---------
                                                              193          221
                                                          ---------    ---------
15   Other receivables
     Write-off of SSAP 24 prepayment                         (198)         (93)
                                                          ---------    ---------

16   Inventories
     Transfers to:
     Intangible assets (non-recurring costs in                (38)         (36)
     Aerospace)
     Property, plant and equipment                            (26)         (28)
                                                          ---------    ---------
                                                              (64)         (64)
                                                          ---------    ---------
17   Trade and other payables and provisions
     Reclassification of provisions due within one year        (9)          (8)
                                                          ---------    ---------

18   Dividend payable
     Provision for final dividend reversed                     58           57
                                                          ---------    ---------

19   Deferred tax liabilities
     Fixed assets                                              35          (64)
     Other temporary timing differences                       (33)          16
     Losses                                                   (26)           2
                                                          ---------    ---------
                                                              (24)         (46)
                                                          ---------    ---------

20   Post-employment obligations
     Recognition of post-employment obligations on an     
     IAS 19 basis                                            (588)        (678)
                                                          ---------    ---------

21   Provisions for other liabilities and charges
     Reclassification to current liabilities                    9            8
     Fair value adjustments on acquisition in the              
     year                                                      (2)           -
                                                          ---------    ---------       
                                                                7            8
                                                          ---------    ---------
22   Other reserves
     Deferred tax liability on properties fair valued     
     on acquisition                                           (20)         (21)
     Share based payments                                       3            1
                                                          ---------    ---------
                                                              (17)         (20)
                                                          ---------    ---------

Segmental analysis of sales and profit under IFRS for the year ended 31 December 2004

Subsidiaries   Driveline     Powder     Other OffHighway   Aerospace   Corporate   Total
                           Metallurgy Automotive                             and
                                                                     Unallocated
                      £m       £m        £m           £m          £m          £m      £m

Sales              1,899      590       136          287         569           -   3,481
                   -------  -------   -------     --------     -------     -------   -----

Trading profit       151        3         9           21          42         (11)    215
Amortisation
of purchased
intangibles           (1)       -         -            -           -           -      (1)
Goodwill
impairment and
restructuring        (35)    (206)        -           (6)        (11)         (4)   (262)
Profit on sale
of businesses          -        -         -           23           1           -      24
                   -------  -------   -------     --------     -------     -------   -----
Operating profit     115     (203)        9           38          32         (15)    (24)
                   -------  -------   -------     --------     -------     -------   -----

                   -------  -------   -------     --------     -------     -------   -----
Share of post
tax earnings
of continuing     
joint ventures
and associated   
company               15        -         1            -           -           -      16
                   -------  -------   -------     --------     -------     -------   -----


Income statement for the year ended 31 December 2004: UK GAAP in IFRS format
                             Continuing                                                         UKGAAP
                              -----------
               UKGAAP      Joint   Associated   Discontinued   Non-operating   Tax    Grossup   inIFRS
                Total   ventures      Company     operations    exceptionals         interest   format
UK GAAP            £m         £m           £m             £m              £m    £m         £m       £m     IFRS
Sales
Subsidiaries    3,484          -            -              -               -     -          -    3,484
Share of joint
ventures          916       (161)           -           (755)              -     -          -        -
Share of
associated
company            47          -          (47)             -               -     -          -        -
                -------     ------      -------       --------        --------  ----     ------  -------
                4,447       (161)         (47)          (755)              -     -          -    3,484     Sales
                -------     ------      -------       --------        --------  ----     ------  -------
Operating
(loss)/
profit
Subsidiaries:

Continuing
operations
Before
goodwill
amortisation
and
exceptional
items             162          -            -              -               -     -          -      162     Trading
                                                                                                           profit
Goodwill
amortisation      (23)         -            -              -               -     -          -      (23)    Goodwill
                                                                                                           amortisation
Exceptional
items
including
goodwill
impairment       (250)         -            -              -               -     -          -     (250)    Goodwill
                                                                                                           impairment 
                                                                                                           and
                                                                                                           restructuring
                                                                                                           costs
Share of
continuing      
joint
ventures:       -------     ------      -------       --------        --------  ----     ------  -------
Before
goodwill
amortisation       18        (18)           -              -               -     -          -        -
Goodwill
amortisation       (1)         1            -              -               -     -          -        -
                -------     ------      -------       --------        --------  ----     ------  -------
Discontinued                                                                                         -
operations      -------     ------      -------       --------        --------  ----     ------  -------
Before
goodwill
amortisation       87          -            -            (87)              -     -          -        -
Goodwill
amortisation       (5)         -            -              5               -     -          -        -
                -------     ------      -------       --------        --------  ----     ------  -------
                -------     ------      -------       --------        --------  ----     ------  -------
Share of
associated
company             1          -           (1)             -               -     -          -        -
                -------     ------      -------       --------        --------  ----     ------  -------

                    -          -            -              -              24     -          -       24     Profit on 
                                                                                                           sale
                -------     ------      -------       --------        --------  ----     ------  -------   of
                                                                                                           businesses
Total
operating loss    (11)       (17)          (1)           (82)             24     -          -      (87)    Operating
                                                                                                           loss

Profits less
losses on sale  
or closure of
businesses:     -------     ------      -------       --------        --------  ----     ------  -------
Subsidiaries       24          -            -              -             (24)    -          -        -
Joint ventures
(and related
assets)           663          -            -           (663)              -     -          -        -
                -------     ------      -------       --------        --------  ----     ------  -------

Net interest                                                                                         -
payable:        -------     ------      -------       --------        --------  ----     ------  -------
Subsidiaries      (46)         -            -              -               -     -        (23)     (69)    Interest
                                                                                                           payable and
                                                                                                           similar
                                                                                                           charges
                    -          -            -              -               -     -         23       23     Interest
                                                                                                           receivable
Share of joint
ventures
(discontinued)     (1)         -            -              1               -     -          -        -
                -------     ------      -------       --------        --------  ----     ------  -------
                    -         17            1              -               -    (3)         -       15     Share of post
                                                                                                           tax earnings
                                                                                                           of continuing
                                                                                                           joint 
                                                                                                           ventures
                                                                                                           and 
                                                                                                           associated
                                                                                                           company

Taxation          (49)         -            -              -               -    27          -      (22)    Taxation
                -------     ------      -------       --------        --------  ----     ------  -------
Profit after
tax               580          -            -           (744)              -    24          -     (140)    Loss from
                                                                                                           continuing
                                                                                                           operations
                                                                                                           Discontinued
                -------     ------      -------       --------        --------  ----     ------  -------   operations
                    -          -            -             81               -   (24)         -       57     Share of post
                                                                                                           tax earnings
                                                                                                           of joint
                                                                                                           ventures
                    -          -            -            663               -     -          -      663     Profit on
                -------     ------      -------       --------        --------  ----     ------  -------   disposal of
                                                                                                           joint
                                                                                                           ventures,
                                                                                                           after tax
                    -          -            -            744               -   (24)         -      720     Profit from
                -------     ------      -------       --------        --------  ----     ------  -------   discontinued
                                                                                                           operations
Profit on
ordinary
activities
after taxation    580          -            -              -               -     -          -      580     Profit for 
                                                                                                           the
                -------     ------      -------       --------        --------  ----     ------  -------   year

Balance sheet at 31 December 2004: UK GAAP in IFRS format
               UKGAAP   Receivables   Payables   Provisions   Taxation       UKGAAP
               format                                                    IFRSformat
                   £m            £m         £m           £m         £m           £m
Fixed assets                                                                          Non-currentassets
Intangible
assets            197             -          -            -          -          197   Goodwill
Tangible
assets          1,278             -          -            -          -        1,278   Property,plantandequipment
Investments:
Joint ventures     95             -          -            -          -           95   Investments in joint
                                                                                      ventures accounted for under
                                                                                      the equity method
Other
investments         7             -          -            -          -            7   Other investments
                    -             -          -            -          6            6   Deferred tax assets
                    -           208          -            -          -          208   Other receivables
               --------      --------    -------     --------    -------    ---------
Total fixed
assets          1,577           208          -            -          6        1,791
               --------      --------    -------     --------    -------    ---------
Current
assets
Stocks            507             -          -            -          -          507   Inventories
Debtors:
Due within one
year              577             -          -            -          -          577   Trade and other receivables
Due in more
than one year     214          (208)         -            -         (6)           -
Cash at bank
and in hand       860             -          -            -          -          860   Cash and cash equivalents
               --------      --------    -------     --------    -------    ---------
                2,158          (208)         -            -         (6)       1,944
               --------      --------    -------     --------    -------    ---------
                3,735             -          -            -          -        3,735   Total assets
               --------      --------    -------     --------    -------    ---------
Creditors:                                                                            Current liabilities
amounts
falling due
within one
year
Short-term
borrowings        (51)            -         (3)           -          -          (54)  Borrowings
Creditors        (837)            -          3            -          -         (834)  Trade and other payables
                                                                                      and provisions
Taxation payable (128)            -          -            -          -         (128)  Current tax liabilities
Dividend
payable           (58)            -          -            -          -          (58)  Dividend payable
               --------      --------    -------     --------    -------    ---------
               (1,074)            -          -            -          -       (1,074)
               --------      --------    -------     --------    -------    ---------
Creditors:                                                                            Non-current liabilities
amounts
falling due
after one
year
Term loans and
obligations
under finance
leases           (741)            -          -            -          -         (741)  Borrowings
Provisions for
liabilities
and charges      (430)            -          -          370          -          (60)  Deferred tax liabilities
                    -             -          -         (266)         -         (266) Post-employment benefit obligations
                    -             -          -         (104)         -         (104)  Provisions for other
                                                                                      liabilities and charges
               --------      --------    -------     --------    -------    ---------
               (1,171)            -          -            -          -       (1,171)
               --------      --------    -------     --------    -------    ---------
               (2,245)            -          -            -          -       (2,245)  Total liabilities
               --------      --------    -------     --------    -------    ---------
Net assets      1,490             -          -            -          -        1,490   Net assets
               --------      --------    -------     --------    -------    ---------




                      This information is provided by RNS
            The company news service from the London Stock Exchange