Final Results

Barratt Developments PLC
22 September 2004


22nd September 2004

                            BARRATT DEVELOPMENTS PLC
                   Results for the year ended 30th June 2004
Highlights:

   • Turnover £2,516m (2003: £2,171m) up 16%
   • Pre-tax profit £367.7m (£2003: £288.7m) up 27%
   • Earnings per share 111.4p (2003: 89.1p) up 25%
   • Dividend for the year 21.58p (2003: 17.26p) up 25%
   • ROCE improved to 37%
   • UK housebuild operating margin increased to 15.7% (2003:14.3%)
   • UK unit sales 14,021, up 5%, more than any other housebuilder
   • More than 11,000 homes on brownfield sites
   • UK average selling price £166,000 up 9%
   • Sale of US housing division for £90m in August 2004
   • Plan £5bn for urban regeneration over 3 years, including £500m for social 
     housing
   • Largest apprentice training scheme in housebuilding industry

Charles Toner, Chairman of Barratt Developments commented: 'This marks our 12th
year of consistent organic growth in both volumes and margins and demonstrates
the success of our proven business model. Interest rate rises have helped
moderate the market ensuring that it becomes more stable and sufficient for us
to achieve our goals. We are well positioned to continue our strategy of steady
organic growth and look to the future with confidence.'

David Pretty, Group Chief Executive of Barratt Developments commented: 'We are
financially strong and our fundamental strengths of geographic spread and
product diversity, together with our land, planning and urban regeneration
skills, give us confidence in achieving our 13th year of progress. We are
strengthening our teams at all levels and, dependent on market conditions, plan
to undertake £5bn of urban regeneration projects over the next 3 years, of which
£500m will be for social housing. Through our network of existing divisions and
the establishment of 4 new divisions, we will have the capacity to increase
production towards 20,000 homes per annum by 2010.'

For further information please contact:
Barratt Developments PLC
David Pretty, Group Chief Executive                   On the day: 020 7067 0700
Colin Dearlove, Group Finance Director                Thereafter: 0191 286 6811
Weber Shandwick Square Mile
Terry Garrett/Chris Lynch                                         020 7067 0700

  The financial analysts' presentation slides will be available on the Barratt
  corporate website:
            www.barratt-investor-relations.co.uk from 10.30am today.

                            BARRATT DEVELOPMENTS PLC

                     PRELIMINARY RESULTS TO 30th JUNE 2004

CHAIRMAN'S STATEMENT

Once again, I am very pleased to report the Group has achieved record results
with growth in both volume and margins, generating £367.7m pre-tax profit and
increasing earnings per share by 25%. This excellent all-round performance
delivered our 12th year of consistent growth and maintained our record of
increasing earnings per share by over 20% per annum. In addition, for the second
year running, we completed more homes in total, and more on brownfield sites,
than any other housebuilder.

We are also well placed for the future, having ended the financial year with
forward sales of £880m, up 10%. With further sales progress since 1st July 2004,
forward sales now stand at £1bn which, together with completions to date,
already secures 55% of our full year requirement.

Key features of the results for the year ended 30th June 2004 are as follows:-

   • UK completions rose to a total of 14,021, up 5%, at an average selling
     price of £166,000, up 9%.

   • More than 11,000 homes were completed on brownfield sites.

   • Turnover rose to £2,516m against £2,171m the previous year, an increase
     of 16%.

   • Pre-tax profit amounted to £367.7m against £288.7m the previous year, an
     increase of 27%.

   • Basic earnings per share amounted to 111.4p against 89.1p the previous
     year, an increase of 25%.

   • A final dividend of 14.68p per share will be recommended (payable on
     19th November 2004 to shareholders on the register on 22nd October 2004)
     against 12.32p the previous year. This gives a total dividend for the year
     of 21.58p, an increase of 25%, 5.2 times covered. This rate of increase
     reflects the progress of our Group and the confidence of the Board in our
     future prospects.

   • UK land stocks owned and contracted increased to 49,355 plots. Together
    with an additional 7,000 plots agreed this brings the total land bank to
    56,355 - four years' supply at current volumes.

   • Reflecting our constant focus on cash management, we had net cash in
     hand at the year end of £189.7m (2003: £81.6m cash in hand). This was
     achieved notwithstanding a £249m increased investment in land stocks and
     work in progress.

   • Return on average capital employed improved again, to 37% (2003: 34%),
     which maintains our position amongst the highest in the industry.

These excellent results demonstrate the success of our organic growth strategy
and the continuing strengthening of our business across all areas of operation.

We greatly benefited from our total geographic spread and by selling to all
market sectors at prices from £80,000 to £1.7m, with an average selling price of
£166,000. All of our regional markets across Britain remain sound and all
produced increased sales and profits. As anticipated, the market has moderated
in recent months but continues to perform satisfactorily and in line with
expectations. Demand remains underpinned by low unemployment, interest rates
which are still historically low and restricted supply due to planning
constraints.

We continue to demonstrate our commitment and ability to grow the business
organically, which is largely attributable to our land buying, design and
planning, and urban regeneration skills. Together with our national coverage,
these enable us to take advantage of a greater range of land and development
opportunities and the Government's emphasis on urban regeneration.

Our Southern California division increased operating profits from £10.7m to
£18.9m, before an impairment provision of £7.5m, from 702 completions and
turnover of £172.9m. On 30th August 2004 we completed the disposal of this small
part of our total Group operation. This was a strategic decision which will now
enable us to focus on our UK operations.

We are pleased to welcome a new non-executive director, Mr Bob Davies, who
joined the Board in May. Mr Davies is currently the Chief Executive of Arriva
plc and brings with him a wealth of experience in the business sector.

Our strong management team across Britain has, once again, demonstrated its
ability to succeed. On behalf of the Board, I would like to thank all of our
colleagues throughout the Group, both office and site based, for all their hard
work. Our record results would certainly not be achieved without their skills
and enthusiasm.

Looking to the future, we are very well placed to build on our proven record.
Recent interest rate rises have moderated the market and brought a welcome
return to more normal trading conditions which should be sustainable and
sufficient for us to achieve our goals. Difficulties in the planning system will
ensure the supply of new homes cannot meet pent-up demand and this will also
continue to underpin the market going forward. We have a high quality land bank,
strong forward sales and we will continue to benefit from our full geographic
coverage, wide product range and our track record in urban regeneration. These
strengths enable us to adapt to changes in market conditions and, together with
our strong financial position, ensure we can target further steady organic
growth across the country.

Charles Toner
Chairman


CHIEF EXECUTIVE'S OPERATIONAL REVIEW

Another excellent team performance has, again, produced a very successful year
for the Barratt Group. All key statistics improved and our 12th consecutive year
of organic growth was achieved.

Over the past 12 years - a time when national housing completions remained
largely static - Barratt has tripled production and market share. In addition,
for the second year running, we completed more new homes in total and more homes
on regenerated brownfield land than any other housebuilder. We remain committed
to further steady growth and will have the capacity to increase production
towards 20,000 homes per annum by 2010.

We have confidence in the underlying strength of the British housing market and
our proven ability to increase production to help satisfy the nation's growing
housing needs. Accordingly, and dependent on market conditions, we plan to
undertake £5bn of urban regeneration projects over the next 3 years, of which
£500m will be targeted at social housing.

UK HOUSING

14,021 new homes were completed in the UK, an increase of 5%. This helped to
increase Group turnover by 16% to a new record of £2,516m which, combined with a
further improvement in our margin, produced a record Group pre-tax profit of
£367.7m, an increase of 27%.

The operating profit from our core UK housing activity increased to £366.4m, up
26%, with the operating margin continuing to increase, from 14.3% to 15.7%. This
improvement reflects the benefits of continued sales momentum, strengthened
revenues, improved overhead recovery, strict control of all costs and more
stringent land acquisition criteria.

Our private average selling price rose 10% from £158,600 to £173,900, again
partially reflecting growth south of the Midlands. Our total geographic spread
has, however, been maintained with 51% of completions in Scotland, the North and
Midlands and 49% in the South.

We remain committed to strong cost control and maintained administration
overheads at 3% of revenue, again one of the lowest in the industry. We continue
to benefit from the strength of our long-standing national purchasing agreements
with our main suppliers. These helped us contain increases in the year just
ended to 5% and we would not expect that increase to be exceeded this year.

HOUSING MARKET

All of our regional markets remain sound, including London and the South-East,
and all produced improved performances.

As expected, following several interest rate rises the market has moderated in
recent months. This has restored a welcome stability and also made the market
more sustainable going forward and sufficient for us to achieve our objectives.
We expect selling prices in the year ahead to rise much less rapidly, probably
in line with incomes at around 4% and this will help affordability. A more
stable market will also provide a firm foundation for our future growth.

The demand for new homes continues to be supported by historically low interest
rates, good employment levels and the continuing serious constraint on supply
caused by delays within the planning system.

The fundamentals therefore remain sound but our Group also benefits from a
number of core strengths, which consistently assist our performance and provide
added protection from any market fluctuations.

GEOGRAPHIC AND PRODUCT DIVERSITY

One of our greatest strengths is our geographic spread across the country.
Currently we have 430 developments being built by our 32 operating divisions
working throughout England, Scotland and Wales. These are run by local men and
women, possessing a good knowledge of their local markets and sensitive to local
needs and aspirations. Also, our ability to build homes serving all sectors of
the market, currently £80,000 to £1.7m, maximises our opportunities to appeal to
the widest range of buyers. This prevents an over-dependence on any one
geographical area or market sector and increases our ability to adjust
production, sales and land buying in line with any market changes.

URBAN REGENERATION AND BROWNFIELD DEVELOPMENT

We remain industry leaders in the regeneration of Britain's urban areas and our
expertise in this vital area stretches back close on 30 years. Today, over 80%
of our homes nationwide are built on brownfield sites, significantly exceeding
the Government's 60% target, and more than any other housebuilder. This rises to
over 95% in London and the South East.

Last year, over 200 new Barratt homes were built on brownfield sites each week,
bringing a total of over 11,000 in the year. We are devoting greater resources
to this sector and are well-positioned to benefit from, and assist, the
Government's important emphasis on urban regeneration.

Our regeneration work continues to be recognised by an increasing number of
architectural design, construction quality, and environmental awards.

SOCIAL HOUSING PARTNERSHIPS

We are also leaders in the provision of affordable housing, be it low cost homes
for sale, for rent, shared ownership or for those with special needs. In the
year just ended we built 1,308 homes for our Housing Association partners. This
represents an increase of 250% over the past six years.

Today we have 79 partnerships underway across Britain, with a further 77 in the
pipeline. There is an ever-growing need for partnership housing and, with our
network of local divisions and long experience in this field, we are well placed
to help satisfy the national shortage.

LAND AND PLANNING

An important part of our success in growing organically in an increasingly
difficult planning environment has been our land acquisition and planning
skills. We exercised prudence in the land market throughout the year, raising
land purchase criteria twice. Nevertheless, during the year we acquired 18,076
plots, 29% more than we used, bringing the total UK land stocks to 49,335.
Together with 7,000 further plots agreed, this brings our total UK land bank to
over 56,000, four years' supply at current volumes.

We have one of the best quality land banks in the industry and during the year
we achieved detailed planning approval for 15,500 plots and have all the
necessary approvals in place to achieve our requirement for this year.
Furthermore, 90% of the land required for 2005/06 is already owned or
contracted, with over 60% for the following 2006/07 year.

We welcomed the Barker Report published in March 2004 and its excellent analysis
of the causes of the lack of supply in British housing. The main conclusion was
that delays within the planning system were the main cause of the problem and we
are well placed to build more homes should the various recommendations be
implemented. It is clear the Government is committed to improving the planning
system and we very much hope that the majority of the recommendations are
implemented. However, this will inevitably take time and, therefore, we do not
believe there will be improvements in the short term. Nevertheless, we believe
there are further opportunities to grow, particularly for those organisations
such as ourselves which possess the necessary design, construction and urban
regeneration skills. Accordingly, we have been strengthening the land and
planning functions in all of our divisions to ensure we maximise on every
opportunity, with particular emphasis on brownfield developments.

An important part of our growth strategy is the further controlled expansion of
10 of our most experienced and successful divisions into 'super' divisions, each
capable of building over 700 homes per annum. These existing teams benefit from
larger sites with higher densities, which are already allowing them to exceed
our usual optimum production of 500 units per annum. Their additional growth can
also be achieved with limited increases in overheads.

The establishment of four new divisions in key growth areas over the next two
years will also increase our land acquisition and regeneration opportunities in
areas where we are either under-represented or where we believe there is future
significant growth potential.

USA

Our Southern California USA operation performed well in the period building 702
homes, up 17%, on turnover up 37% to £172.9m. This produced a 77% increase in
operating profits, from £10.7m to £18.9m, before an impairment provision of
£7.5m.

After several years of losses the progress of the division in recent years, and
its return to profitability, has been welcome. However, it was a small part of
our total Group operation and its disposal in a strong USA housing market, on
terms which we believe are attractive to our shareholders, is also a strategic
move which will enable total focus on our core UK activities. The sale, to an
acquisition vehicle headed by three members of the Barratt American management
team, was successfully completed on 30 August 2004 and the proceeds of £90m will
be used for the selective purchase of land for urban renewal projects targeted
at key growth areas.

SKILLS TRAINING

We continue to devote significant time and resources to our apprentice and
graduate training schemes, which continue to expand. Already the largest
training programme in the industry, the number of apprentices now under training
on our sites has grown to 530. In addition, we now have 55 graduates on
fast-track career paths.

As always, we are impressed by the enthusiasm and performance of these young
recruits, many of whom are already progressing within the Group, and helping us
address the national skills shortage.

ADVANCE HOUSING

Our joint venture company, Advance Housing, is now producing steel-framed
modular housing from its newly commissioned production facility in Daventry,
Northants.

It has now completed its first homes, with 23 homes occupied in the East
Midlands and well received by their private purchasers. A further 58 homes were
completed on 6 other sites, including 11 for our first Housing Association
client.

The concept has considerable potential, particularly with the growing Government
emphasis on modern methods of construction. However, we shall be controlling
output whilst we refine production techniques and on-site erection procedures.
We plan to deliver around 300 new homes in the year, subject to achieving the
necessary planning approvals.

CORPORATE SOCIAL RESPONSIBILITY REPORT

This year we will shortly produce our first independently verified Corporate
Social Responsibility Report, which reviews our corporate, social, environmental
and health and safety activities. The report will identify not only our
strengths but will also reinforce our commitment to continuous improvement in
our CSR performance. We accept our wider responsibilities and are developing new
management systems and actively engaging with our stakeholders to improve our
overall effectiveness. Our CSR activities, as will be demonstrated in our
separate report, already contribute positively to our overall business
performance and profitability. We believe the further investment now being made
in this increasingly important area of our business will assist in generating
further value to our shareholders.

HEALTH AND SAFETY

Over the last thee years, a sustained senior management focus on health and
safety, and the ongoing development of our risk-based Occupational Health and
Safety Management System (OHSMS), has transformed the standards and performance
achieved across our operating divisions. This year, once again, the independent
health and safety audit inspections undertaken every three weeks by the NHBC on
our development sites, have confirmed our performance rating remains ahead of
the national housebuilder average. The progress we have made is a credit to our
dedicated health and safety management team and to all of our staff. We are not
complacent, however, and we are striving for further improvements. This year
work will continue on the introduction of a comprehensive audit protocol for our
OHSMS and we will continue to engage with our contractors and sub-contractors in
relation to our health and safety values, performance standards and training
programmes.

CUSTOMER CARE

We recognise that the housebuilding industry has not enjoyed the best of
reputations with its customers and its general satisfaction rates have been
lower than other industries.

We have given much greater focus to this part of our operation in the past year
and, in Summer 2003, completely reviewed and overhauled our quality monitoring
and customer care procedures. As a result, a major new initiative was introduced
on all of our sites and throughout the Group, which is already bearing fruit
with significantly improved customer satisfaction levels. All of our teams
remain deeply committed to our buyers' expectations and we shall continue to
drive on for even further improvements.

AWARDS

I am pleased to report that the work of our construction teams was recognised by
the NHBC during the year with our divisions winning the highest ever number of
building quality awards in the 'Pride in the Job' campaign.

In addition, for the third year running, the Group won more Greenleaf
environmental awards than any other housebuilder.

In the coveted national What House? Awards, we were voted Britain's Best Large
Housebuilder and, for the second year running, also won the Gold Award for Best
Brownfield Development in Britain. This follows earlier awards for Best Starter
Home, Best Luxury Home and Best Luxury Development.

Barratt was also identified in a Design Council report as one of the UK's most
effective users of design and innovation, and also took the top position in a
survey of the North East's Top 200 companies.

THE YEAR AHEAD ......... AND LOOKING FORWARD

We have produced another set of record results, extending our track record to 12
consecutive years of growth in housing output and financial performance. Our
forward sales stand at record levels and the housing market across the country
is stable. We are financially strong and our fundamental strengths of geographic
spread and product diversity, together with our land, planning and urban
regeneration skills, give us confidence in achieving our 13th year of progress.
In the years ahead, we believe the British housing market will remain
fundamentally sound and the pent-up demand for new homes, including social
housing, will increase.

We remain committed to increasing production to satisfy the nation's growing
housing needs and have the capacity, expertise and resources for future growth.
We are strengthening our teams at all levels and, subject to market conditions,
plan to undertake £5bn of urban regeneration projects over the next 3 years,
including £500m for social housing. Through our network of existing divisions,
the expansion of our 'super' divisions, and the establishment of four new
divisions, we will have the capacity to steadily increase production towards
20,000 homes per annum by 2010.


David Pretty
Group Chief Executive

22nd September 2004

For further information please contact:

Barratt Developments PLC
David Pretty, Group Chief Executive                   On the day: 020 7067 0700
Colin Dearlove, Group Finance Director                Thereafter: 0191 286 6811
Weber Shandwick Square Mile
Terry Garrett/Chris Lynch                                         020 7067 0700

The financial analysts' presentation slides will be available on the Barratt
corporate website: www.barratt-investor-relations.co.uk from 10.30am today,
together with photographic images of Charles Toner, David Pretty and a selection
of Barratt developments.

Further copies of the announcement can be obtained from the Company Secretary's
office at:

Barratt Developments PLC
Wingrove House
Ponteland Road
Newcastle upon Tyne NE5 3DP

The following are the unaudited results of the Group for the year ended 30th
June 2004.
-------------------------------------------------------------------------------
1. Group Profit and Loss Account                       Unaudited       Audited
                                                            2004          2003
                                                              £m            £m
-------------------------------------------------------------------------------
Turnover - Continuing operations                         2,343.1       2,044.7
         - Discontinued operations                         172.9         126.3
-------------------------------------------------------------------------------
Group Turnover                                           2,516.0       2,171.0
===============================================================================
Operating profit - Continuing operating                    364.2         288.0
                 - Discontinued operations                  11.4          10.7
-------------------------------------------------------------------------------
Operating profit                                           375.6         298.7

Net interest payable                                        (7.9)        (10.0)
-------------------------------------------------------------------------------
Profit on ordinary activities before taxation              367.7         288.7

Taxation                                                  (107.2)        (82.3)
-------------------------------------------------------------------------------
Profit on ordinary activities after taxation               260.5         206.4

Dividends                                                  (51.4)        (40.2)
-------------------------------------------------------------------------------
Retained profit                                            209.1         166.2
===============================================================================

Earnings per share - basic                                 111.4p         89.1p
===============================================================================

Earnings per share - diluted                               110.1p         88.2p
===============================================================================

Dividend per share                                         21.58p        17.26p
===============================================================================

Dividend cover                                               5.2x          5.2x
===============================================================================

-------------------------------------------------------------------------------
2. Statement of Total Recognised Gains and Losses       Unaudited      Audited
                                                             2004         2003
                                                               £m           £m
-------------------------------------------------------------------------------
Profit on ordinary activities after taxation                260.5        206.4
Currency translation differences on foreign currency
net investments                                              (3.9)        (3.0)
-------------------------------------------------------------------------------
Total gains and losses recognised since last annual
report                                                      256.6        203.4
===============================================================================

-------------------------------------------------------------------------------
3. Group Balance Sheet                               Unaudited         Audited
                                                          2004            2003
                                                                      Restated
                                                            £m              £m
-------------------------------------------------------------------------------
Fixed assets
    Tangible assets                                       11.9            11.0
-------------------------------------------------------------------------------
Current assets
    Properties held for sale                               9.7             7.7
    Stocks                                             1,977.0         1,730.7
    Debtors due within one year                           41.6            37.0
    Debtors due after more than one year                   1.3             0.5
    Bank and cash                                        230.4           121.4
-------------------------------------------------------------------------------
                                                       2,260.0         1,897.3

Current liabilities
    Creditors due within one year                     (1,066.0)         (922.4)
-------------------------------------------------------------------------------
Net current assets                                     1,194.0           974.9
===============================================================================

Total assets less current liabilities                  1,205.9           985.9

Creditors due after more than one year                   (89.8)          (77.0)
-------------------------------------------------------------------------------

Net assets                                             1,116.1           908.9
===============================================================================
Capital and reserves
    Called up share capital                               24.0            23.9
    Share premium                                        190.7           187.1
    Profit retained                                      901.4           697.9
-------------------------------------------------------------------------------

Equity shareholders' funds                             1,116.1           908.9
===============================================================================

Net assets per share                                       465p            381p
===============================================================================

-------------------------------------------------------------------------------
4. Group Summary Cash Flow Statement                     Unaudited     Audited
                                                              2004        2003
                                                                £m          £m
-------------------------------------------------------------------------------
Net cash inflow from operating activities
    Operating profit                                         375.6       298.7
    Increase in stocks                                      (254.4)     (286.3)
    Increase in debtors                                       (6.8)       (5.6)
    Increase in creditors                                    147.5       106.6
    Other non cash movements                                   0.8        (0.8)
-------------------------------------------------------------------------------
                                                             262.7       112.6

Returns on investments and servicing of finance              (11.5)      (10.3)
Taxation                                                     (98.7)      (77.7)
Capital expenditure and financial investment                  (5.4)       (7.5)
Equity dividends paid                                        (45.0)      (34.3)
-------------------------------------------------------------------------------
Cash inflow/(outflow) before financing                       102.1       (17.2)
Financing                                                    (15.4)       12.4
-------------------------------------------------------------------------------
Increase/(decrease) in cash                                   86.7        (4.8)
===============================================================================

Reconciliation of net cash flow to movement in net funds
    Increase/(decrease) in cash                               86.7        (4.8)
    Cash flow from decrease/(increase) in debt                19.1       (10.3)
-------------------------------------------------------------------------------
Change in net funds resulting from cash flows                105.8       (15.1)
Exchange movements                                             2.3         2.1
-------------------------------------------------------------------------------
Movement in net funds in the period                          108.1       (13.0)
Net funds at 1st July                                         81.6        94.6
-------------------------------------------------------------------------------
Net funds at 30th June                                       189.7        81.6
-------------------------------------------------------------------------------

5. Statutory Accounts

The financial information set out above does not constitute statutory accounts
within the meaning of the Companies Act 1985. The figures in the preliminary
statement have been taken from the group's draft statutory accounts which have
not yet been signed but upon which the auditors are expected to give an
unqualified opinion. The figures for the year to 30th June 2003 are an extract
from the full accounts for that year, which have been filed with the Registrar
of Companies and on which the auditors gave an unqualified opinion.

The preliminary financial information has been prepared on the basis of
accounting policies set out in the company's Annual Report for the year ended
30th June 2003, other than as detailed below.

The Group has adopted Urgent Issues Task Force Abstract 38: 'Accounting for ESOP
trusts' for the 2004 results. As a result of the implementation of the
requirements of this Abstract, shares in the company held through an employee
share scheme trust which were previously reported as investments are now
recorded as a deduction from equity shareholders' funds. At 30th June 2004, the
carrying value of these shares was £17.5m which has been set against the profit
and loss reserve in the balance sheet. The comparative figures for investments
and profit and loss reserve have been amended to reflect the change in
treatment. The comparative figures have been restated in a prior year adjustment
to reflect this changed treatment such that shareholders' funds at 30th June
2003 have been reduced by £15.8m.

-------------------------------------------------------------------------------
6. Cash in Hand/(Bank Debt)                             2004              2003
                                                          £m                £m
-------------------------------------------------------------------------------
Due within one year                                    (28.3)             (5.3)

Due after more than one year                           (12.4)            (34.5)
-------------------------------------------------------------------------------
                                                       (40.7)            (39.8)
Bank and cash deposits                                 230.4             121.4
-------------------------------------------------------------------------------
Total net funds                                        189.7              81.6
===============================================================================

7. Dividends

The directors propose a final dividend of 14.68p per share (2003: 12.32p) making
a total for the year of 21.58p per share (2003: 17.26p). It is proposed that the
final dividend will be paid on 19th November 2004, to shareholders on the
register, at close of business, on 22nd October 2004.

8. Earnings Per Share

Basic earnings per ordinary share is based on the profit after taxation of
£260,500,000 (2003: £206,400,000) and the weighted average number of ordinary
shares in issue and ranking for dividend during the year of 233,904,273 (2003:
231,641,125). For diluted earnings per share, the weighted average number of
shares in issue and ranking for dividend is adjusted to assume the conversion of
all dilutive potential shares. The effect of the dilutive potential shares is
2,597,644 (2003: 2,253,881), this gives a diluted weighted average number of
shares of 236,501,917 (2003: 233,895,006).

9. Net Assets Per Share

Net assets per ordinary share are based on the net assets at 30th June 2004 of
£1,116.1m (2003: £908.9m) and the number of shares in issue at that date of
239,797,852 (2003: 238,431,250). The net assets per share at 30th June 2003 have
been appropriately adjusted to reflect the restated net assets following the
adoption of UITF 38 'Accounting for ESOP trusts'.





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