Interim Results

Cookson Group PLC 02 August 2007 2 August 2007 COOKSON GROUP PLC - ANNOUNCEMENT OF 2007 INTERIM RESULTS HIGHLIGHTS â€¢ Strong improvement in continuing operations (at constant currency): - Revenue of Â£785 million, up 4% - Trading profit of Â£78 million, up 20% - Return on sales up 1.3 percentage points to 10.0% â€¢ Very strong performance in Ceramics, division's margin target increased to a range of 14% to 16% â€¢ Headline PBT and EPS up 10% and 18% respectively â€¢ Strong profit growth in low tax rate jurisdictions reduces the Group's effective tax rate by 5.3 percentage points â€¢ Interim dividend of 4.25 pence per share, up 42% First Half Increase/(decrease) vs 2006 Year Reported Constant 2007 2006 rates rates 2006 Continuing Operations1 Revenue Â£785m Â£803m -2% +4% Â£1,590m Trading profit2 Â£78.4m Â£69.7m +12% +20% Â£150.3m Return on sales2 10.0% 8.7% +1.3 pts +1.3 pts 9.5% Tax rate - headline3 27.5% 32.8% -5.3 pts 31.3% Total Operations Revenue Â£786m Â£866m -9% -3% Â£1,661m Trading profit2 Â£78.3m Â£76.0m +3% +10% Â£158.2m Return on sales2 10.0% 8.8% +1.2 pts +1.2 pts 9.5% Profit before - headline2 Â£68.2m Â£61.9m +10% Â£131.2m tax - basic Â£67.6m Â£53.4m +27% Â£113.5m Earnings per - headline2 25.2p 21.4p +18% 46.6p share - basic 24.2p 12.7p +91% 32.8p Dividends per share 4.25p 3.0p +42% 10.0p Free cash flow2 Â£(36.9)m Â£(5.7)m Â£(31.2)m Â£64.5m Net debt2 Â£245.0m Â£248.7m Â£ Â£180.5m (3.7)m 1 Continuing operations exclude the results of the Monofrax and Laminates businesses 2 Refer to Note 1 of the attached financial statements for definitions 3 Tax rate on headline profit before tax from continuing operations (before share of post-tax profit of joint ventures) Commenting on the Group's results and outlook, Nick Salmon, Chief Executive, said: 'We have continued to make good progress so far in 2007, as these results demonstrate. We now believe that underlying trading profit going forward has greater growth potential than we anticipated in the November 2006 Strategy Update. This improvement is driven by the Ceramics division's performance and prospects and, accordingly, we are raising our margin expectations for this business. 'The weakening of the US dollar and other dollar tracker currencies impacts the translation of results into sterling but does not impact our competitiveness or margins. 'Strong profit growth in low tax jurisdictions has substantially reduced the percentage tax rate and we expect a further reduction in 2008. 'We therefore anticipate continuing strong improvement in our full year performance.' OVERVIEW Ceramics The Ceramics division has delivered a very strong performance so far in 2007. Underlying revenue (at constant currency and adjusted for disposals) grew 14%, while global steel production, our main end market, grew 8%. This out-performance reflects the progressive increase in our addressable market, as the steel industry in countries such as China, Russia and Ukraine increasingly converts to enclosed continuous casting technology which requires our flow control products, together with some market share gains. Trading profit was up 30% (at constant exchange rates). The return on sales margin reached 13.6%, ahead of our 13% target for 2008. Accordingly, our expectation for margins for this business has been revised to a range of between 14% to 16%, assuming there is no unexpected major downturn in our end-markets. The profit growth has resulted primarily from revenue growth in high-margin product segments, particularly flow control and from the continued turnaround of the linings activity, where the margin reached 7.4% (before central cost allocations), up from 4.1% in the same period in 2006. With the high underlying growth rates, production capacities are being expanded in certain areas. In respect of previously announced projects, the new slide-gate and linings facilities in Mexico and new glass roller and Solar Crucible(TM) plants in China were commissioned in the first half of 2007. In the second half of the year, the new slide-gate and Solar Crucible(TM) plants in Poland will be completed. The foundry crucible plant in China is scheduled to start production in the second quarter of 2008. Today, a number of further recently authorised expansion projects are being announced including the acquisition from a local supplier of a linings business in China for a cash consideration of Â£4 million and the construction of a new linings plant in India. It is also planned to expand the existing Solar Crucible(TM) plant in the Czech Republic, given the very high growth in demand for this product, as well as a capacity expansion and productivity improvement project for flow control products in continental Europe. The total investment in these projects is expected to be some Â£20 million. Further expansion projects in China, India and Russia are under consideration. All projects are subject to careful evaluation to ensure the investments deliver returns well in excess of our cost of capital and the Group has a good track record of completing projects on time and on budget. Electronics Revenue, at reported exchange rates, fell 4% compared with the first half of 2006, but when adjusted for constant currency, disposals and the effect of commodity metal price fluctuations, underlying revenue fell by 2%. End-market growth for electronic equipment, which accounts for around 85% of the Assembly Materials sector's revenue, whilst marginally lower than that in 2006, has remained ahead of global GDP. Against this background, sales of lead-free solder were flat (by weight). Lower cost SACX(TM) (0.3% silver) made strong gains and constituted 33% of lead-free sales (by weight) in the first half of 2007 compared with 22% in the same period last year, substituting higher cost 3% silver solder. Sales of traditional lead-based solder were markedly down, but with improved profitability as the business deliberately focused only on higher-margin sales. The Semi-conductor Packaging Materials business, which represents 5% of Assembly Materials' revenue, made a small loss on revenue down 25% compared with the first half of 2006, when it delivered Â£1.5 million of trading profit. In March 2007, a change in the management of this business was announced and a turnaround in the second half of 2007 is expected based on some successful recent new product launches. In the Chemistry sector, underlying revenue (at constant currency and eliminating the effect of precious metal sales) grew 3%. Industrial and automotive-related revenue grew strongly in Europe and to a lesser extent in NAFTA, particularly in plating-on-plastic and corrosion and wear-resistant coating product lines. Electronics-related demand was relatively weak in all regions, reflecting low PCB sales. For the division as a whole, trading profit was up 6% (at constant currency) and return on sales improved to 9.9%. The previously announced rationalisation projects of Assembly Materials in NAFTA and Chemistry in Europe are now well advanced and should be completed by this year-end. The project to build a new Chemistry sector factory in China has been put back to 2008 due to delays in the permitting process. Meanwhile, the market is being served from the Group's facilities in Tianjin and Shenzhen in China and from Singapore. Precious Metals Net sales value was down 9% (at constant currency), reflecting a weaker retail jewellery market in North America and broadly unchanged conditions in Europe. As a consequence, trading profit was down Â£0.8 million from last year at constant exchange rates and Â£1.2 million at reported exchange rates. The previously announced rationalisation projects in the US and the UK are also well advanced and will produce annualised cost savings of Â£3.5 million from 2008. DIVIDEND Supported by the Group's continued good progress, the Board is declaring an interim dividend for 2007 of 4.25 pence per share (2006: 3.0 pence). OUTLOOK All indications are for the Ceramics division's end-markets to remain buoyant. Industry commentators are pointing to a mild pick up in Electronics-related end-markets in the second-half of 2007 compared with the first half. As yet, there is a lack of clear visibility on the strength of the retail jewellery market in the important Thanksgiving and Christmas periods. All three divisions have detailed plans to deliver strong organic earnings growth through 2008 and beyond. Underlying trading profit going forward, before the impact of currency translation, has greater growth potential than we anticipated in the November 2006 Strategy Update. This improvement is driven by the Ceramics division's performance and prospects and, accordingly, we are raising our margin expectations for this business. The weakening of the US dollar and other dollar tracker currencies impacts the translation of results into sterling but does not impact the Group's competitiveness or margins. Strong profits growth in low tax jurisdictions has substantially reduced the percentage tax rate and we expect a further reduction in 2008. Continuing strong improvement in our full year performance is therefore anticipated. REVIEW OF OPERATIONS Note: the data provided in the tables below are at reported exchange rates. Group - continuing operations First Half Year 2007 2006 2006 Revenue (Â£m) 785 803 1,590 Trading profit (Â£m) 78.4 69.7 150.3 Return on sales 10.0% 8.7% 9.5% Group revenue from continuing operations in the first half of 2007 was 4% ahead of the same period in 2006 at constant exchange rates, although marginally lower (2%) at reported exchange rates. The increase in revenue at constant exchange rates reflected strong organic growth in the Ceramics division and the impact of higher metal prices being 'passed through' to customers in the Precious Metals division and the Assembly Materials and Chemistry sectors of the Electronics division. This revenue growth was partially offset by the loss of approximately Â£34 million of revenue relating to businesses which have been sold or closed in the last eighteen months but which do not qualify to be treated as discontinued operations for financial reporting purposes. Revenue for the Group's operations in the Asia-Pacific region continued to grow strongly; now representing 23% of Group revenue (first half 2006: 21%), with Europe and NAFTA representing 39% and 33% respectively. Trading profit from continuing operations in the first half of 2007 increased significantly to Â£78.4 million (2006: Â£69.7 million), being 20% higher at constant exchange rates and 12% higher at reported exchange rates. All divisions and sectors reported an increase in their trading profit at constant exchange rates except for the Precious Metals division which reported a small decrease. The strong growth in trading profit resulted in a significant increase in the Group's return on sales from continuing operations to 10.0% from 8.7%. The impact of higher metal prices increasing reported revenue without any impact on profitability depressed the return on sales in the first half of 2007 by around 0.3 percentage points compared to the same period last year. Ceramics division First Half Year 2007 2006 2006 Revenue (Â£m) 386 384 757 Trading profit (Â£m) 52.6 42.6 89.5 Return on sales 13.6% 11.1% 11.8% The division performed very strongly in the first half of 2007 with revenue at constant exchange rates higher by 7% compared to the same period last year (1% at reported exchange rates). Underlying growth, adjusted to take account of the disposals of Ceramic Fibres (March 2006), UK Carbon Blocks (June 2006), UK Magnesia-carbon Bricks (December 2006) and US Bricks (February 2007), was very strong at 14%. Trading profit at Â£52.6 million was 30% higher at constant exchange rates (23% at reported exchange rates) resulting in the return on sales increasing from 11.1% to 13.6%. The strong trading performance was driven by strong growth in the division's key end-markets, in particular the steel, glass and solar industries. The first half of 2007 also started to see the beneficial impact of the investment and restructuring initiatives announced in 2006 (which include additional production facilities in China, Poland and Mexico and the closure of facilities in the UK and the US) although, as anticipated, the full benefits arising from a number of these initiatives will not be realised until 2008. The Strategy Update in November 2006 included a target of improving profitability in developed markets for our linings business, which constitutes around 40% of the division's revenue. In the first half of 2007, further good progress was made towards this target with the return on sales in linings (pre-central cost allocations) improving to 7.4% from 4.1% in the first half of 2006. Whilst this improvement is encouraging, this level of profitability is still below that of its main competitors and we believe that further progress can be made. The key end-market for each of our geographic regions is global steel production, which accounts for around 70% of the division's total revenue. Global steel production grew 8% in the first half of 2007, marginally below the 9% growth seen in full year 2006. Steel production in NAFTA was down by 2%, but this was offset by good growth in other markets, including Europe (up 3%), the CIS (up 6%), China (up 18%) and India (up 6%). Note: in the regional analysis below for the Ceramics division, all of the financial information is presented on an underlying basis which is at constant currency and adjusts for the disposals noted above. NAFTA (comprising the US, Canada and Mexico) Underlying revenue in NAFTA grew by 7% to Â£124 million with 18% growth in linings (which constitutes just over one half of the region's revenue) more than offsetting a small decline in flow control resulting from the decline in steel production. Revenue in foundry was broadly unchanged. Steel production in NAFTA fell by 2% in the first half of 2007 compared to the same period last year, reflecting some temporary production cut-backs initiated in the US in late 2006/early 2007 (US steel production was down 4%). These cut-backs have now largely been reversed and steel production in the US is currently running at a level similar to the average for the first three quarters of 2006. Underlying trading profit in the first half of 2007 increased markedly by just over one-third on the same period last year reflecting strongly improved profitability in linings, achieved through increased management focus combined with more rigorous cost control. During the first half of 2007, the division continued its restructuring programme with the closure of the Crown Point (Illinois) facility in June. Production of taphole clay, a product used in the operation of blast furnaces, has been transferred to an existing facility at Chicago Heights (Illinois) where a new production line using updated technology has been constructed. The expansion of slide-gate and linings production at our facility in Monterrey, Mexico was completed in the first quarter of 2007. In February 2007, as part of the programme of disposing of non-core businesses, the sale of Monofrax, a fused-cast refractory business based in Falconer (New York), was completed and a small US refractory brick business was also sold. Europe (including CIS) Good market conditions resulted in a 14% growth in underlying revenue to Â£150 million compared to the first half of 2006. Flow control, which constitutes nearly 60% of European revenue, grew by 16%, well ahead of the 4% growth in steel production in the region. This resulted from market share gains and an increase in our addressable market as the Russian and Ukrainian steel industry increasingly converts to enclosed continuous casting technology which requires our flow control products. Steel production growth was particularly strong in Germany, Turkey, Russia and Ukraine with more modest growth in the UK, Spain and Italy. Linings also grew strongly with underlying revenue 19% higher than the first half of 2006. Revenue in foundry was broadly unchanged. Trading profit grew by just over one-third compared with the first half of 2006 as a result of the strong volume growth in flow control and linings combined with cost reductions in linings. The expansion of slide-gate capacity at our facility in Skawina, Poland based on new slide-gate plate technology was completed on schedule in July, with production of slide-gates due to cease in Goole, UK in August. With our flow control operations in the region currently operating at, or near to, full capacity, it has been decided to invest Â£8 million in a new flow control facility in continental Europe. This new facility, which should be operational in the second half of 2008, will deliver productivity improvements as well as increasing our flow control capacity. The expected future growth in Russian and Ukrainian steel production, and the modernisation of their steel industry, represents a significant opportunity for the division. These markets are currently served by products manufactured outside of these two countries and the possibility of establishing a local manufacturing presence is currently being evaluated. Asia-Pacific and ROW Underlying revenue in these regions grew in total by 22% to Â£88 million reflecting both strong steel production growth in the three key markets of China (up 18%), India (up 6%) and Brazil (up 13%) which underpinned strong growth in flow control (up 20%), plus strong revenue growth in linings, which primarily operates in Australia (up 26%). The Chinese government continues to encourage the steel industry to shift to more modern, energy and pollution-efficient methods of steel production which should expand the market for the Ceramics division's flow control products. In May, the intention to close 682 old facilities (totalling 42 million tons of steel production) by 2010 was announced, of which just over half are intended to be closed in 2007 to be replaced by modern enclosed continuous casting plants. This trend should enable the division to continue its strong progress in China. The strong revenue growth has resulted in underlying trading profit being just over one-third ahead of the first half of last year. The previously announced construction of a new Â£5 million foundry crucibles facility in Suzhou, Jiangsu Province, near two of the division's existing Chinese facilities, is progressing and the facility is expected to be operational by the second quarter of 2008. The project has been delayed by six months due to long delivery times for the specialist press equipment. Once complete, the facility will produce long-life, high-performance alumina graphite crucibles for the fast growing non-ferrous foundry market. The Chinese foundry industry is the largest in the world and has experienced growth of around 10% per annum over the last few years. Earlier this year, the construction of a new Â£1 million linings facility in India was approved. This facility should be operational in the fourth quarter of 2007, producing monolithics, pre-cast linings and taphole clay for this fast-growing market. Given the expected strong growth in steel production, expansion plans for flow control production are currently being developed in both China and India. In April, the acquisition of Bayuquan Refractories Co. Limited ('BRC') was completed for a cash consideration of US$8.7 million (Â£4.3 million). BRC, which manufactures brick-lining products in China, was previously a supplier to the division. This acquisition gives us certainty of supply of these products and also provides us with more freedom to conduct and grow our linings business in Asia-Pacific. Expansion of BRC's production capacity is currently under evaluation. Fused Silica The fused silica product line is managed on a global rather than regional basis. The principal products in the global fused silica product line are tempering rollers used in the glass industry and Solar Crucibles(TM) used in the manufacture of photovoltaic ('solar') cells. Underlying revenue has grown by 22% to Â£24 million compared to the first half of 2006, driven by good market conditions in both principal end-markets. The glass industry has continued to see good growth - particularly in the construction industry in China and the Middle East and increasing demand for flat screen television panels - whilst growth in the solar energy industry has accelerated as supply shortages of the polycrystalline silicon material used in the majority of solar panels have eased with additional capacity now coming on stream. The solar energy industry is predicted by commentators to grow at between 20-30% per annum over the next few years. Underlying trading profit has increased by 16% on the first half of 2006 with the strong volume growth partially offset by 'one-off' production start-up costs arising in the new Solar Crucible(TM) facility in China. To meet the increasing demand for fused silica products, three new facilities are to be completed in 2007. In the first quarter of 2007, a Â£2 million investment in Kua Tang, the site of the division's existing glass roller business in China was completed, which significantly expanded capacity for producing the rollers used in the glass industry and transformed this facility into the Ceramics division's worldwide lead centre for glass roller production. Alongside this facility, in the second quarter the division also completed the construction of a new Â£3 million facility to manufacture Solar Crucibles(TM) for the fast-growing photovoltaic market in Asia-Pacific. In addition to these additional investments in China, a Â£7 million investment to build a Solar Crucible(TM) facility in Skawina, Poland to supply European customers is nearing completion and is expected to be operational during the third quarter of 2007. Each of these three new facilities is expected to be operating close to full capacity by the beginning of 2008 and further capacity expansion has recently been agreed at both the Kua Tang glass roller facility in China (Â£1 million investment) and our Solar Crucible(TM) facility in Moravia, Czech Republic (Â£6 million investment). A further Solar Crucible(TM) facility in China is also currently under evaluation, reflecting the predicted continuing strong demand for this product in Asia-Pacific. Electronics division First Half Year 2007 2006 2006 Revenue (Â£m) 269 281 555 Trading profit (Â£m) 26.8 27.1 58.5 Return on sales 9.9% 9.6% 10.5% The Electronics division comprises two sectors, Assembly Materials and Chemistry, the results of which are reviewed below. Assembly Materials First Half Year 2007 2006 2006 Revenue (Â£m) 154 162 319 Trading profit (Â£m) 12.9 12.7 28.2 Return on sales 8.4% 7.8% 8.8% Revenue for the first half of 2007 was Â£154 million, 2% higher at constant exchange rates (but 5% lower at reported exchange rates) when compared to the same period last year. The higher revenue reflected the 'pass through' to customers of higher metal prices, in particular for tin and silver. In the first half of 2007, the average prices of tin and silver - the sector's major raw materials - were respectively 62% and 17% higher than the same period last year, such that revenue increased by approximately Â£23 million as a result of these higher metal prices. Revenue also reflected the impact of disposals and closures, namely the sale of the US-based PVC Cements business in December 2006 and the closure of the European industrial metals business in Naarden, Netherlands in June 2006. Excluding the impact of higher metal prices and disposals, underlying revenue was 6% lower than last year (on a constant currency basis). This reflects flat volumes of lead-free solder with lower cost SACX(TM) (0.3% silver) making strong gains (constituting 33% of lead-free sales (by weight) in the first half of 2006 compared with 22% in the same period last year) and substituting higher cost 3% silver solder. Volumes of traditional unleaded solder have been significantly lower reflecting a strategy of focusing resources on higher margin, more value-added products and exiting more commoditised markets. End-market growth for electronic equipment (the end-market for around 85% of the sector's revenue), whilst marginally lower than that in 2006, has remained ahead of global GDP. The market penetration of lead-free solder, driven by European Union legislation which became effective in July 2006, has remained broadly constant compared to the end of 2006, against an expectation of a continuing (albeit slowing) increase in penetration levels. The significant increase in the price of tin and silver in 2007 has resulted in lead-free solder being much more expensive than traditional, leaded solder. For the first half of 2007, 51% of solder revenue came from lead-free sales (first half 2006: 43%), the same percentage as in the fourth quarter of 2006. However, higher metal prices have boosted demand for our less expensive SACX(TM) products and they made up 20% of total lead-free solder revenue in the first half of 2007 (first half 2006: 13%). The Semi-conductor Packaging Materials business, which provides epoxy-mould compounds, underfills and solder spheres to the electronics industry and constitutes approximately 5% of the sector's revenue, faced continuing difficult market conditions in the first half of 2007, with revenue down 25% compared with the first half of 2006. Following a change of management in the business at the end of 2006, the business has recently successfully launched a number of new products and an improved performance in the second half is expected. Trading profit of Â£12.9 million was 8% higher than the same period last year at constant exchange rates (2% at reported exchange rates), reflecting good growth in profitability in the Alpha Fry solder business resulting from the transition to higher-margin products. However, the Semi-conductor Packaging Materials business reported a small loss for the period compared to a trading profit of Â£1.5 million in the same period last year. Excluding the Semi-conductor Packaging Materials business, trading profit in the first half of 2007 increased 19% on the same period last year. Return on sales for the sector increased from 7.8% to 8.4% despite the impact of higher metal prices. If metals prices in the first half of 2007 had remained at similar levels to those in the same period last year, the return on sales would have been 9.8%. Asia-Pacific, the sector's largest region, accounted for 55% of revenue in the first half of 2007, an increase of 3 percentage points over the same period last year, which reflects the increased migration of consumer electronics production to this region. During the first half of 2007, the restructuring of the sector's manufacturing operations in NAFTA continued. This initiative, which is expected to be completed by the end of the third quarter of 2007, will generate annualised savings of Â£2 million. Production of high labour-intensive solder wire is being moved from the Altoona (Pennsylvania) facility to a new site in Monterrey, Mexico which has recently been completed. The Jersey City (New Jersey) facility is to close in the third quarter with production moving to Monterrey, Mexico and to Altoona. The wave solder flux manufacturing facility in Alpharetta (Georgia) is to close in the third quarter with production moving to an existing Chemistry sector facility in Mexico City, Mexico. When completed, headcount in the US will be reduced by 120 with 90 new jobs created in Mexico. Chemistry First Half Year 2007 2006 2006 Revenue (Â£m) 115 119 236 Trading profit (Â£m) 13.9 14.4 30.3 Return on sales 12.0% 12.1% 12.9% Revenue for the first half of 2007 was Â£115 million, 3% higher at constant exchange rates but 3% lower at reported exchange rates when compared to the same period last year. Excluding the impact of precious metals sales, underlying revenue growth was 3% (on a constant currency basis), reflecting good growth in plating-on-plastics and corrosion and wear-resistant coating products for industrial and automotive markets and marginally lower revenue for surface coating products serving the printed circuit board market within electronics. Copper damascene sales were well ahead of the same period last year. Trading profit of Â£13.9 million was 4% higher than the same period last year at constant exchange rates (3% lower at reported exchange rates) with the return on sales falling marginally to 12.0%. Europe and NAFTA remain the sector's largest regions with 44% and 34% of total sector revenue, respectively. Asia-Pacific represents 21% of total sector revenue. The rationalisation of the sector's European sales, manufacturing and distribution network which was initiated in 2006 continued through the first half of 2007. Production capacity has been expanded at our existing facilities in Germany and the Netherlands, with these two locations now supplying all of our European customers. Facilities have been closed in Italy and Spain in the first half of 2007, in addition to the facilities in Sweden and Austria which were closed in 2006. This initiative results in annualised savings of Â£2 million, most of which are now achieved. Following the buy-out of the 49% minority interest in the Chinese operations in October 2006, the construction of a new Â£8-9 million facility was announced to accelerate the growth of the sector's operations in China. Delays have been experienced in finding an appropriate location for the new facility due to a new, and more stringent, permitting regime. Following an extensive review, a site has now been identified which is in the process of being acquired, with construction expected to commence in the first quarter of 2008 for completion in early 2009. Precious Metals First Half Year 2007 2006 2006 Revenue (Â£m) 129 139 278 Net sales value (Â£m) 49 57 111 Trading profit (Â£m) 3.1 4.3 11.0 Return on net sales value 6.3% 7.5% 10.0% The Precious Metals division operates in two distinct geographic regions; the US, which constitutes 53% of the total net sales value (being revenue excluding the precious metals content) for the division, and Europe (which includes the UK, France and Spain). Average precious metal prices (notably for gold, silver and platinum) in the first half of 2007 are higher than for the same period last year (gold and silver higher by 10% and 17% respectively), but are only marginally higher than the end of 2006 (4% for each of silver and gold). Precious Metals - US First Half Year 2007 2006 2006 Revenue (Â£m) 64 77 155 Net sales value (Â£m) 26 33 64 Trading profit (Â£m) 2.3 4.0 9.0 Return on net sales value 8.8% 12.1% 14.1% Net sales value of Â£26 million was 15% lower at constant exchange rates (23% lower at reported exchange rates) reflecting weaker retail demand for jewellery. Trading profit for the first half of 2007 at Â£2.3 million was 43% (Â£1.7 million) below the same period last year reflecting the weaker volumes. In response to the weaker trading conditions, headcount was reduced by 40 in March. Return on net sales value was 8.8% (first half 2006: 12.1%). The initiative to consolidate all of the US manufacturing operations into the principal facility in Attleboro (Massachusetts) has continued in the first half of 2007, with the relocation to Attleboro of Inverness (our ear-stud business previously located in New Jersey) nearing completion. This relocation, which will be completed in the third quarter, and involves a net headcount reduction of 25, will generate annual cost savings of Â£1.5 million. Precious Metals - Europe First Half Year 2007 2006 2006 Revenue (Â£m) 65 62 123 Net sales value (Â£m) 23 24 47 Trading profit (Â£m) 0.8 0.3 2.0 Return on net sales value 3.5% 1.3% 4.3% Net sales value of Â£23 million was broadly unchanged compared to the same period last year at both reported and constant exchange rates, with retail jewellery markets relatively stable in each of the key markets of the UK, France and Spain. Trading profit for the first half of 2007 at Â£0.8 million was Â£0.5 million higher than the same period last year with the UK at breakeven and a small trading profit generated in each of France and Spain. Return on net sales value was 3.5% (first half 2006: 1.3%). In January 2007, a fundamental restructuring of the UK's manufacturing operations was announced for implementation on a phased basis during 2007. Manufacturing activity at the main manufacturing facility in Birmingham was halved in the second quarter and a facility in Wrexham will close at the end of August 2007. A new facility in Thailand will be operational shortly. These initiatives, once complete, will result in a headcount reduction of 80 and generate annualised savings of approximately Â£2 million. Group corporate The Group's corporate costs, being the costs directly related to managing the Group holding company, were Â£4.1 million, marginally lower than the same period last year. Discontinued operations Discontinued operations in the first half of 2007 include the results of Monofrax prior to its disposal in February 2007. For 2006, discontinued operations comprise Monofrax for the full year and also include the results of the Laminates business prior to its disposal in April 2006. GROUP FINANCIAL REVIEW First Half Year 2007 2006 2006 Profit before tax (Â£m) - headline 68.2 61.9 131.2 - basic 67.6 53.4 113.5 Earnings per share (pence) - headline 25.2 21.4 46.6 - basic 24.2 12.7 32.8 Dividends per share (pence) 4.25 3.0 10.0 Free cash flow (Â£m) (36.9) (5.7) 64.5 Net debt (Â£m) 245 249 181 Restatement of comparative information During 2006, the Directors continued to assess the detailed impact of IFRS on the presentation of the Group's consolidated financial statements and, as a consequence, made changes to the accounting treatment and presentation of certain items in the Group's consolidated financial statements for 2006. Two of those changes, namely those relating to the presentation of the interest cost and expected returns associated with the Group's defined benefit pension and other post-retirement benefit plans and the amortisation and impairment of intangibles, had already been made in the Group's 2006 interim report. The other changes, which are explained in Note 2 to the attached financial statements, are reflected in this interim report as restatements of the comparative information for the six months ended 30 June 2006. Group Income Statement Headline profit before tax Headline profit before tax for total operations was Â£68.2 million for the first half of 2007, which was Â£6.3 million higher than for the same period in 2006. The increase in headline profit before tax arose as follows: First Half 2007 2006 Change Â£m Â£m Â£m % Trading profit: Continuing operations 78.4 65.6 12.8 +20% - at first half 2007 exchange rates Currency exchange rate impact - 4.1 (4.1) Discontinued operations (0.1) 6.3 (6.4) (Laminates and Monofrax) Trading profit - at reported exchange rates 78.3 76.0 2.3 +3% Net finance charges (interest) (11.2) (14.6) 3.4 Post-tax income from joint ventures 1.1 0.5 0.6 Headline profit before tax 68.2 61.9 6.3 +10% The Â£3.4 million lower charge for net finance costs (interest) comprised Â£2.3 million due to a decrease in the average level of borrowings throughout the period and Â£1.0 million due to lower pension interest as a result of the lower employee benefits deficit. The Â£6.4 million decrease in trading profit from discontinued operations primarily relating to the disposal of the Laminates business in April 2006. Items excluded from headline profit before tax A net charge of Â£0.6 million was incurred in the first half of 2007 (first half 2006: Â£8.5 million) for the following items excluded from headline profit before tax: Rationalisation costs: rationalisation costs of Â£2.3 million (first half 2006: Â£8.8 million) were incurred in the first half of 2007, all relating to continuing operations. Of the total charge, Â£0.8 million related to the non-cash write down of assets and Â£1.5 million to cash-related costs. This principally consisted of a charge of Â£1.5 million in the Precious Metal division, both for the rationalisation of the UK manufacturing operations and also the relocation of Inverness, the ear-stud business, to Attleboro, US. A full-year charge for rationalisation costs of around Â£10 million is expected in 2007 reducing to around Â£5 million per annum from 2008 onwards. Profit relating to non-current assets: a profit of Â£1.5 million (first half 2006: Â£1.8 million) was realised in the first half of 2007, principally relating to the disposal of a surplus property in Hong Kong. Profit on disposal of continuing operations: a net profit of Â£0.2 million (first half 2006: loss of Â£1.5 million) comprised a small profit arising on the disposal of the US Bricks business in February 2007, net of trailing costs incurred in respect of prior years' disposals. The US Bricks business, which did not qualify to be treated as a discontinued operation for financial reporting purposes, was formerly part of the Ceramics division. The net charge included a write-off of goodwill of Â£0.5 million. The loss on disposal of continuing operations in the first half of 2006 related principally to the disposal of the Ceramics divisions' Ceramic Fibres and UK Carbon Block businesses. Group profit before tax and after the items noted above was Â£67.6 million for the first half of 2007 compared to Â£53.4 million in the first half of 2006, up 27%. Taxation The tax charge on ordinary activities was Â£18.5 million. The effective tax rate on headline profit before tax from continuing operations (before share of post-tax profit of joint ventures) was 27.5% (first half 2006: 32.8%; full year 2006: 31.3%). The decrease in the effective tax rate in the first half of 2007 compared to 2006 arises both from a higher proportion of the Group's taxable profits being earned in relatively low-tax countries (notably China and the Czech Republic) and from improved profitability in previously loss-making countries (notably in the UK and the US). This effective tax rate is expected to be maintained for the full year with a further reduction of around one percentage point expected for 2008, absent any significant changes in the future geographic split of the Group's taxable profits and any material changes, beyond those already announced, in the statutory tax rates in those countries where the Group has significant taxable profits. A tax charge of Â£1.5 million (first half 2006: Â£1.8 million) arose in relation to all the items excluded from headline profit before tax noted above. Net post-tax profit/(loss) on disposal of discontinued operations A net post-tax profit of Â£0.3 million (first half 2006: loss of Â£6.4 million) was reported in the period, comprising a profit before goodwill write-off arising on the disposal of Monofrax, formerly part of the Ceramics division, of Â£8.7 million, a write-off of goodwill of Â£4.3 million and additional trailing costs related to prior years' disposals of Â£4.1 million. The net post-tax loss on disposal of operations of Â£6.4 million in the first half of 2006 related to the disposal of the Group's Laminates business, formerly part of the Electronics division. Profit attributable to equity holders Headline profit attributable to equity holders for the first half of 2007 was Â£48.5 million (first half 2006: Â£40.9 million), with the Â£7.6 million increase over 2006 arising from the significant increase in headline profit before tax, the decrease in the effective tax rate and a decrease of Â£1.1 million in profit attributable to minority interests following the buy-out in April 2006 of the 49% minority interest in the Chemistry sector's Chinese operations. After taking account of all items excluded from headline profit before tax noted above (net of the related tax impact) and the net post-tax profit on disposal of operations, the Group recorded a profit of Â£47.9 million for the first half of 2007, Â£21.4 million higher than the Â£26.5 million profit recorded in the first half of 2006. Earnings per share ('EPS') Headline EPS, based on the headline profit attributable to equity holders, amounted to 25.2 pence per share in the first half of 2007, an increase of 18% on the 21.4 pence recorded in the first half of 2006. The Board believes this basis of calculating EPS is an important measure of the underlying earnings per share of the Group. Basic EPS, based on the net profit attributable to parent company equity holders, was 24.2 pence (first half 2006: 12.7 pence). The average number of shares in issue during the first half of 2007 was 192.8 million (first half 2006: 190.8 million). Dividend For 2006, the Company paid a total dividend of 10.0 pence per share; an interim dividend of 3.0 pence per share being paid in October 2006; and a final dividend of 7.0 pence per share paid in June 2007. The Board's confidence in the future prospects for the Group, supported by the strong improvement in profitability in the first half of 2007, has resulted in the Board declaring an interim dividend for 2007 of 4.25 pence per share, a 42% increase on the 2006 interim dividend. Going forward the Board is aiming to balance the split of interim and final dividends in line with market norms. The interim dividend will be paid on 15 October 2007 to all shareholders on the register at the close of business on 28 September 2007. Shareholders may choose to use the Dividend Reinvestment Plan ('DRIP') to reinvest the interim dividend. The closing date for the receipt of new DRIP mandates is 1 October 2007. Group cash flow Net cash from operating activities In the first half of 2007, there was a Â£31.5 million net cash outflow from operating activities, Â£26.3 million higher than the first half of 2006. This increase principally arose from: First Half 2007 2006 Change Â£m Â£m Â£m EBITDA 95.5 95.6 (0.1) Trade and other working capital (82.2) (47.9) (34.3) Cash outflow related to assets and liabilities (1.1) (8.8) 7.7 held for sale Rationalisation costs paid (8.0) (9.2) 1.2 UK pension plan - additional contributions (14.8) (12.8) (2.0) Net interest paid (8.9) (11.1) 2.2 Taxation paid (12.0) (11.0) (1.0) Net cash outflow from operating activities (31.5) (5.2) (26.3) Of the Â£82.2 million cash outflow in respect of trade and other working capital, Â£39.1 million relates to the increased level of inventory and trade receivables resulting from the 14% underlying revenue growth in the Ceramics division in the period. Also contributing to the outflow was the negative impact on the level of inventories and trade receivables at 30 June 2007 of higher metal prices (notably for gold, silver and tin) in the Precious Metals division and the Assembly Materials and Chemistry sectors. Importantly, the ratio of average trade working capital to sales from continuing operations of 22.5% was only marginally higher than the 2006 full year at 21.8% (first half 2006: 21.5%). The Â£7.7 million reduction in outflows related to assets and liabilities held for sale related principally to Laminates which was disposed of in April 2006. Cash outflow for rationalisation was Â£8.0 million related to prior period programmes that were initiated in respect of continuing businesses. A cash outflow for rationalisation of around Â£20 million is expected in full year 2007 and Â£10 million for 2008. Net cash from investing activities Capital expenditure: payments to acquire property, plant and equipment in the first half of 2007 were Â£24.4 million, 67% higher than the first half of 2006 and representing 142% of depreciation (first half 2006: 74%). Of the total payments, Â£16.9 million arose in the Ceramics division in respect of a number of projects in China, Poland and Mexico which, once completed, will increase production capacity and enhance underlying revenue growth going forward. A cash outflow for capital expenditure of between Â£50 million and Â£55 million is expected in full year 2007, with a similar amount expected for 2008. This reflects both the delay, from 2007 to 2008, of the construction of the new Â£8 million Chinese facility in the Chemistry sector and the identification of a number of additional expansion projects in the Ceramics division. Proceeds from the sale of surplus properties: proceeds, principally arising in Hong Kong, were Â£4.9 million (first half 2006: Â£2.8 million). Dividends from joint ventures: dividends of Â£0.8 million were received in the period (first half 2006: Â£0.9 million) from the Chemistry sector's Japanese joint venture. Disposals: net cash inflow from disposals in the first half of 2007 was Â£22.4 million which included the following: â€¢ proceeds from the disposal of businesses, net of disposal costs, of Â£20.0 million, principally comprising Â£18.4 million for the disposal in February 2007 of Monofrax and Â£1.6 million for the disposal in February 2007 of the US Brick business; and â€¢ other net consideration received for prior period disposals of Â£2.4 million, comprising Â£1.5 million for the disposal in June 2006 of the Carbon Bricks operation in Bawtry, UK and Â£1.9 million for the disposal in 2003 of Speedline, net of trailing costs of Â£1.0 million in respect of prior years' disposals. Proceeds from the disposal of businesses, net of disposal costs, in the first half of 2006 were Â£56.9 million, principally comprising Â£11.8 million for the disposal in March 2006 of the Ceramic Fibres business and Â£43.6 million for the disposal in April 2006 of the Laminates business. Outflow relating to property held for sale: in January 2007, the Group acquired the freehold interest in the site of the former Magnesia Carbon Bricks business located in Worksop (UK), a business which had been closed in December 2006. It is expected that this site will be sold in the second half of 2007. Free cash flow Free cash flow is defined as net cash flow from operating activities and after net outlays for the acquisition and disposal of property, plant and equipment, dividends received from joint ventures and paid to minority shareholders, but before additional funding contributions to Group pension plans. Free cash outflow for the first half of 2007 was Â£36.9 million, Â£31.2 million higher than the Â£5.7 million outflow in the first half of 2006, due both to the Â£26.3 million decrease in cash flow from operating activities for the reasons described above and the Â£9.8 million increase in the payments to acquire property, plant and equipment. The Group traditionally experiences free cash outflows in the first half of the year and inflows in the second half, due to the seasonality of trade working capital cash flows. The annualised free cash inflow for the year ended June 2007, was Â£33.3 million. Net cash flow before financing Net cash outflow before financing for the first half of 2007 was Â£39.2 million, compared with a net cash inflow of Â£37.1 million in the first half of 2006. This arose due both to the reduction in free cash flow for the reasons noted above and a Â£34.5 million reduction in proceeds from the disposal of businesses. After an outflow for financing activities (before repayment of borrowings) of Â£26.7 million (first half 2006: Â£13.5 million), principally comprising the Â£13.5 million payment of the 2006 final dividend of 7.0 pence per share in June 2007, the net cash outflow for the first half of 2007 (before repayment of borrowings) was Â£65.9 million, Â£89.5 million adverse compared with the first half of 2006. With a Â£4.1 million positive translation effect (the value of sterling increased from US$1.96 to US$2.01 during the first half of 2007), the net cash outflow resulted in an increase in net debt from 1 January 2007 of Â£64.5 million to Â£245.0 million as at 30 June 2007 (30 June 2006: Â£248.7 million). Group borrowings The net debt of Â£245.0 million as at 30 June 2007 was primarily drawn on available medium to long-term committed facilities of around Â£450 million. The Group's net debt comprised the following: 30 June 31 December 30 June 2007 2006 2006 Â£m Â£m Â£m US Private Placement loan notes 246.2 278.5 294.7 Committed bank facility 10.0 - - Lease financing 1.6 1.9 3.0 Other loans, overdrafts, other 34.5 12.0 6.4 Gross borrowings 292.3 292.4 304.1 Cash and short-term deposits (47.3) (111.9) (55.4) Net Debt 245.0 180.5 248.7 The US Private Placement loan notes, currently US$495 million following the repayment of US$50 million in May 2007, are repayable at various dates between 2007 and 2012, with US$130 million being due for repayment in November 2007. The committed bank facility is for Â£200 million and has a current maturity date of March 2010. Sufficient headroom exists within this committed facility to meet the US$130 million repayment of the US Private Placement loan notes due in November 2007. Currency The US dollar weakened marginally against sterling during the course of the period such that the exchange rate at 30 June 2007 was some 3% higher than at 1 January 2007. The average US dollar exchange rate for the first half of 2007 was 10% higher than the average exchange rate for the first half of 2006. Other US dollar 'tracking' currencies, such as the Hong Kong dollar and the Chinese renminbi, also showed a similar, if less marked, trend. The value of the euro was relatively stable against sterling, both in respect of the period-end rates and the average rates for the half year compared to last half year. In the first half of 2007, the net translation impact of currency changes compared to the same period last year was to reduce revenue from continuing operations by around Â£47 million, reduce trading profit from continuing operations by around Â£4 million, reduce headline profit before tax by around Â£3 million, and reduce headline earnings per share by around 1 pence. Pension fund and other post-retirement obligations The Group operates defined contribution and defined benefit pension plans, principally in the UK and US. In addition, the Group has various other defined benefit post-retirement arrangements, being principally healthcare plans in the US. As at 30 June 2007, a liability of Â£126.7 million was recognised in respect of employee benefits, a decrease of Â£28.4 million over the Â£155.1 million as at 31 December 2006. This decrease results primarily from the additional 'top-up' payments made in respect of the UK plan and an increase in the prescribed discount rates used to calculate the present value of future liabilities for the US plans. Of the total liability, Â£62.4 million relates to the deficit on the Group's defined benefit pension plan in the UK, Â£29.9 million to the Group's defined benefit pension plans in the US, Â£12.8 million to pension arrangements in the Rest of the World, and Â£21.6 million to unfunded post-retirement defined benefit arrangements, being mainly healthcare benefit arrangements in the US. In February 2006, it was agreed with the Trustee of the Group's UK plan, to make 'top-up' payments (in addition to the normal cash contributions) of Â£26.5 million in 2007. The level of these additional 'top-up' payments will be reviewed in consultation with the Trustee when the next triennial valuation is available in Autumn 2007. In the first half of 2007, additional 'top-up' payments of Â£14.8 million have been made (first half 2006: Â£12.8 million). The total charge to the income statement in the first half of 2007 for all pension plans (including defined contribution plans) was Â£8.5 million, a reduction of Â£2.9 million over the first half of 2006. Of this charge, Â£7.2 million (first half 2006: Â£9.1 million) has been deducted in arriving at trading profit and Â£1.3 million (first half 2006: Â£2.3 million) has been included within finance charges. Total pension cash contributions amounted to Â£19.3 million in the first half of 2007 (first half 2006: Â£17.7 million). Shareholder/analyst enquiries: Cookson Group plc Nick Salmon, Chief Executive Tel: +44 (0)20 7822 0000 Mike Butterworth, Group Finance Director Anna Hartropp, Investor Relations Manager Media enquiries: John Olsen Hogarth Partnership Tel: +44 (0)20 7357 9477 Cookson management will make a presentation to analysts on 2 August 2007 at 10: 30am (UK time). This will be broadcast live on Cookson's website. An archive version of the presentation will be available on the website from late afternoon on 2 August. Forward Looking Statements This announcement contains certain forward-looking statements which may include reference to one or more of the following: the Group's financial condition, results of operations, cash flows, dividends, financing plans, business strategies, operating efficiencies or synergies, budgets, capital and other expenditures, competitive positions, growth opportunities for existing products, plans and objectives of management and other matters. Statements in this announcement that are not historical facts are hereby identified as 'forward-looking statements'. Such forward-looking statements, including, without limitation, those relating to the future business prospects, revenue, working capital, liquidity, capital needs, interest costs and income, in each case relating to Cookson, wherever they occur in this announcement, are necessarily based on assumptions reflecting the views of Cookson and involve a number of known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. Such forward-looking statements should, therefore, be considered in light of various important factors. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include without limitation: economic and business cycles, the terms and conditions of Cookson's financing arrangements, foreign currency rate fluctuations, competition in Cookson's principal markets, acquisitions or disposals of businesses or assets and trends in Cookson's principal industries. The foregoing list of important factors is not exhaustive. When relying on forward-looking statements, careful consideration should be given to the foregoing factors and other uncertainties and events, as well as factors described in documents the Company files with the UK regulator from time to time including its annual reports and accounts. Such forward-looking statements speak only as of the date on which they are made. Except as required by the Rules of the UK Listing Authority and the London Stock Exchange and applicable law, Cookson undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this announcement might not occur. Cookson Group plc, 165 Fleet Street, London EC4A 2AE Registered in England and Wales No. 251977 www.cooksongroup.co.uk Condensed Group Income Statement For the six months ended 30 June 2007 Half Half year Continuing Discontinued year Continuing Discontinued 2006 Full year operations operations 2007 operations operations restated 2006 (note 2) Notes Â£m Â£m Â£m Â£m Â£m Â£m Â£m Revenue 3 784.9 1.5 786.4 803.3 62.2 865.5 1,661.4 Manufacturing costs - raw materials (375.6) (0.2) (375.8) (381.5) (28.9) (410.4) (797.4) - other (186.0) (1.2) (187.2) (194.5) (18.6) (213.1) (400.8) Administration, selling and (144.9) (0.2) (145.1) (157.6) (8.4) (166.0) (305.0) distribution costs Trading profit 3 78.4 (0.1) 78.3 69.7 6.3 76.0 158.2 Rationalisation of operating 4 (2.3) - (2.3) (8.8) - (8.8) (34.7) activities Profit relating to 5 1.5 - 1.5 1.8 - 1.8 13.1 non-current assets Curtailment gains relating 6 - - - - - - 8.6 to employee benefits Profit from operations 3 77.6 (0.1) 77.5 62.7 6.3 69.0 145.2 Finance costs 7 (27.6) - (27.6) (28.5) - (28.5) (53.8) Finance income 7 16.4 - 16.4 13.9 - 13.9 25.4 Share of post-tax profit of 1.1 - 1.1 0.5 - 0.5 1.4 joint ventures Net profit/(loss) on 8 0.2 - 0.2 (1.5) - (1.5) (4.7) disposal of continuing operations Profit before tax 67.7 (0.1) 67.6 47.1 6.3 53.4 113.5 Income tax costs - ordinary activities 9 (18.5) - (18.5) (18.1) (0.6) (18.7) (38.5) - exceptional items 9 (1.5) - (1.5) (1.8) - (1.8) (5.3) Net post-tax profit/(loss) 10 - 0.3 0.3 - (6.4) (6.4) (3.3) on disposal of discontinued operations Profit for the period 47.7 0.2 47.9 27.2 (0.7) 26.5 66.4 Profit for the period attributable to: Parent company equity 46.5 0.2 46.7 24.9 (0.7) 24.2 62.9 holders Minority interests 1.2 - 1.2 2.3 - 2.3 3.5 Profit for the period 47.7 0.2 47.9 27.2 (0.7) 26.5 66.4 Headline profit before tax Trading profit 78.3 76.0 158.2 Share of post-tax profit of 1.1 0.5 1.4 joint ventures Net finance costs (11.2) (14.6) (28.4) Headline profit before tax 1 68.2 61.9 131.2 Income tax costs (18.5) (18.7) (38.5) - ordinary activities Profit attributable to (1.2) (2.3) (3.5) minority interests Headline profit attributable 48.5 40.9 89.2 to parent company equity holders Earnings per share (pence) 11 Basic 24.1 0.1 24.2 13.1 (0.4) 12.7 32.8 Diluted 24.0 0.1 24.1 13.0 (0.4) 12.6 32.6 Headline earnings per share 1, 11 (pence) Basic 25.2 - 25.2 18.4 3.0 21.4 46.6 Diluted 25.1 - 25.1 18.3 3.0 21.3 46.3 Condensed Group Statement of Cash Flows For the six months ended 30 June 2007 Half year 2006 Half year restated Full year 2007 (note 2) 2006 Notes Â£m Â£m Â£m Cash flows from operating activities Profit from operations 77.5 69.0 145.2 Adjustments for: Rationalisation of operating activities 2.3 8.8 34.7 Profit relating to non-current assets (1.5) (1.8) (13.1) Curtailment gains relating to employee benefits - - (8.6) Depreciation 17.2 19.6 37.0 EBITDA 1 95.5 95.6 195.2 Net increase in trade and other working capital (82.2) (47.9) (29.2) Net operating outflow related to assets and liabilities classified (1.1) (8.8) (7.2) as held for sale Outflow related to rationalisation of operating activities 4 (8.0) (9.2) (16.1) Additional funding contributions into Group pension plans 14 (14.8) (12.8) (25.5) Cash (utilised by)/generated from operations (10.6) 16.9 117.2 Interest paid (11.0) (14.4) (28.3) Interest received 2.1 3.3 6.3 Income taxes paid (12.0) (11.0) (27.5) Net cash (outflow)/inflow from operating activities (31.5) (5.2) 67.7 Cash flows from investing activities Purchase of property, plant and equipment (24.4) (14.6) (43.2) Proceeds from the sale of property, plant and equipment 5 4.9 2.8 16.6 Acquisition of subsidiaries and joint ventures, net of cash acquired (1.1) (0.9) (4.1) Disposal of subsidiaries and joint ventures, net of cash disposed of 8, 10 22.4 56.9 59.4 Dividends received from joint ventures 0.8 0.9 0.9 Purchase of property classified as held for sale (9.0) - - Other investing outflows, including additional costs for prior (1.3) (2.8) (3.1) periods' disposals Net cash (outflow)/inflow from investing activities (7.7) 42.3 26.5 Net cash (outflow)/inflow before financing activities (39.2) 37.1 94.2 Cash flows from financing activities Repayment of borrowings 13 (12.0) (28.4) (29.9) Settlement of forward foreign exchange contracts (12.4) (7.4) (5.4) Proceeds from the issue of share capital 0.7 5.9 8.0 Proceeds from the sale of treasury shares - - 0.9 Dividends paid to equity shareholders 12 (13.5) (9.6) (15.4) Dividends paid to minority shareholders (1.5) (2.4) (3.0) Net cash outflow from financing activities (38.7) (41.9) (44.8) Net (decrease)/increase in cash and cash equivalents 13 (77.9) (4.8) 49.4 Cash and cash equivalents (including bank overdrafts) Cash and cash equivalents at beginning of period 105.0 63.5 63.5 Effect of exchange rate fluctuations on cash and cash equivalents 0.2 (3.3) (7.9) Net (decrease)/increase in cash and cash equivalents 13 (77.9) (4.8) 49.4 Cash and cash equivalents at end of period 27.3 55.4 105.0 Free cash flow Net cash (outflow)/inflow from operating activities (31.5) (5.2) 67.7 Additional funding contributions into Group pension plans 14.8 12.8 25.5 Purchase of property, plant and equipment (24.4) (14.6) (43.2) Proceeds from the sale of property, plant and equipment 4.9 2.8 16.6 Dividends received from joint ventures 0.8 0.9 0.9 Dividends paid to minority shareholders (1.5) (2.4) (3.0) Free cash flow 1 (36.9) (5.7) 64.5 Condensed Group Balance Sheet As at 30 June 2007 30 June 2006 30 June 31 Dec restated 2007 2006 (note 2) Notes Â£m Â£m Â£m Assets Property, plant and equipment 226.5 222.4 230.9 Intangible assets 421.0 429.0 448.3 Interests in joint ventures 11.4 11.6 11.5 Investments 15.4 15.8 17.4 Income tax recoverable 1.9 2.3 2.3 Deferred tax assets 10.7 11.3 12.3 Other receivables 8.0 9.8 12.2 Total non-current assets 694.9 702.2 734.9 Cash and short-term deposits 13 47.3 111.9 60.6 Inventories 192.7 171.2 177.2 Trade and other receivables 344.6 303.0 315.5 Income tax recoverable 0.4 1.1 1.6 Derivative financial instruments 4.1 1.7 - Assets classified as held for sale 9.0 18.6 21.1 Total current assets 598.1 607.5 576.0 Total assets 1,293.0 1,309.7 1,310.9 Equity Issued share capital 19.4 19.3 19.3 Share premium account 6.9 6.3 4.2 Other reserves (24.9) (17.0) (0.1) Retained earnings 512.6 466.2 428.2 Total parent company shareholders' equity 514.0 474.8 451.6 Minority interests 9.3 9.4 11.2 Total equity 523.3 484.2 462.8 Liabilities Interest-bearing loans and borrowings 13 192.3 188.1 268.4 Employee benefits 14 126.7 155.1 188.8 Other payables 14.5 19.5 27.1 Provisions 20.9 22.5 8.1 Deferred tax liabilities 23.6 21.8 21.6 Total non-current liabilities 378.0 407.0 514.0 Interest-bearing loans and borrowings 13 100.0 104.3 40.9 Trade and other payables 232.2 241.9 249.7 Income tax payable 31.7 27.7 23.3 Provisions 27.0 32.7 17.1 Derivative financial instruments 0.8 6.1 0.5 Liabilities directly associated with assets classified as held for - 5.8 2.6 sale Total current liabilities 391.7 418.5 334.1 Total liabilities 769.7 825.5 848.1 Total equity and liabilities 1,293.0 1,309.7 1,310.9 Net debt Interest-bearing loans and borrowings - non-current 192.3 188.1 268.4 - current 100.0 104.3 40.9 Cash and short-term deposits (47.3) (111.9) (60.6) Net debt 1 245.0 180.5 248.7 Condensed Group Statement of Recognised Income and Expense For the six months ended 30 June 2007 Half year Half year Full year 2007 2006 2006 Â£m Â£m Â£m Exchange differences on translation of the net assets of foreign (11.3) (51.5) (81.1) operations Net investment hedges 3.7 13.7 25.3 Actuarial gain on employee benefits plans 11.4 19.1 21.8 Change in fair value of available-for-sale investments - (0.7) 0.2 Net income/(expense) recognised directly in equity 3.8 (19.4) (33.8) Profit for the period 47.9 26.5 66.4 Total recognised income and expense for the period 51.7 7.1 32.6 Total recognised income and expense for the period attributable to: Parent company equity holders 50.2 5.4 29.9 Minority interests in - profit for the period 1.2 2.3 3.5 - foreign exchange translation 0.3 (0.6) (0.8) differences Total recognised income and expense for the period 51.7 7.1 32.6 Notes to the interim financial statements 1 Basis of preparation General information These condensed interim financial statements have been prepared using the same accounting policies as used in the preparation of the Group's annual financial statements for the year ended 31 December 2006. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2006. The financial information presented in this document is unaudited, but has been reviewed by the Company's auditor. The comparative figures for the financial year ended 31 December 2006 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditor and delivered to the Registrar of Companies. The report of the auditor was unqualified, did not include reference to any matters to which the auditor drew attention by way of emphasis without qualifying its report and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. These sections address whether proper accounting records have been kept, whether the Company's accounts are in agreement with those records and whether the auditor has obtained all the information and explanations necessary for the purposes of its audit. Disclosure of exceptional items International Accounting Standard ('IAS') 1, Presentation of Financial Statements, provides no definitive guidance as to the format of the income statement, but states key lines which should be disclosed. It also encourages additional line items and the re-ordering of items presented on the face of the income statement when appropriate for a proper understanding of the entity's financial performance. In keeping with the spirit of this aspect of IAS 1, the Company has adopted a policy of disclosing separately on the face of its Condensed Group Income Statement the effect of any components of financial performance considered by the Directors to be exceptional, or for which separate disclosure would assist both in a better understanding of the financial performance achieved and in making projections of future results. Both materiality and the nature and function of the components of income and expense are considered in deciding upon such presentation. Such items may include, inter alia, the financial effect of any profits or losses arising on business disposals, major rationalisation or restructuring activity, curtailment gains or losses relating to employee benefits, profits or losses on sale or impairment of non-current assets and other items, including the taxation impact of the aforementioned items, which have a significant impact on the Group's results of operations either due to their size or nature. Non-GAAP financial measures The Company uses a number of non-Generally Accepted Accounting Practice ('non-GAAP') financial measures in addition to those reported in accordance with IFRS. Because IFRS measures reflect all items which affect reported performance, the Directors believe that certain non-GAAP measures, which reflect their view of the underlying performance of the Group, are important and should be considered alongside the IFRS measures. The following non-GAAP measures are referred to in this report. (a) Net sales value Net sales value is calculated as the total of revenue less the amount included therein related to any precious metal component. The Directors believe that net sales value provides an important measure of the underlying sales performance of the Group's Precious Metals division. (b) Return on sales and return on net sales value Return on sales is calculated as trading profit divided by revenue. Return on net sales value is calculated as trading profit divided by net sales value. The Directors believe that return on sales provides an important measure of the underlying trading performance of the Group and the Group's Ceramics and Electronics divisions and that return on net sales value provides an important measure of the underlying trading performance of the Group's Precious Metals division. (c) Organic revenue growth Organic revenue growth, from a prior period comparative to the current period, is calculated after having adjusted the revenue of the comparative period so that it is stated using the same exchange rates as used in the current period and, for those businesses for which metals are a key raw material (notably for tin, gold and silver), the same average metal prices as incurred in the current period. In addition, revenue related to current period acquisitions is removed and, for any business disposals or significant business closures, the comparator period revenue is adjusted such that both current and comparator period have a comparable period of revenue contribution from those businesses. The Directors believe that organic revenue growth gives an important measure of the underlying revenue generation capacity of the Group. (d) Trading profit Trading profit, defined as profit from operations before the costs of rationalisation of operations, the profit or loss relating to non-current assets and curtailment gains or losses relating to employee benefits, is separately disclosed on the face of the Condensed Group Income Statement. The Directors believe that trading profit is an important measure of the underlying trading performance of the Group. (e) EBITDA EBITDA is calculated as the total of trading profit before depreciation and amortisation charges. The Directors believe that EBITDA provides an important measure of the underlying financial performance of the Group. (f) Headline profit before tax Headline profit before tax is calculated as the net total of trading profit, share of post-tax profit of joint ventures and net finance costs, excluding any component of net finance costs considered to be exceptional by the Directors. The Directors believe that headline profit before tax provides an important measure of the underlying financial performance of the Group. (g) Headline earnings per share Headline earnings per share is calculated as the total of headline profit before tax, income tax costs associated with ordinary activities and profit attributable to minority interests, divided by the weighted average number of ordinary shares in issue during the period. The Directors believe that headline earnings per share provides an important measure of the underlying earning capacity of the Group. (h) Free cash flow Free cash flow, defined as net cash flow from operating activities after net outlays for the acquisition and disposal of non-current assets, dividends from joint ventures and dividends paid to minority shareholders, but before additional funding contributions into Group pension plans, is disclosed on the face of the Condensed Group Statement of Cash Flows. The Directors believe that free cash flow gives an important measure of the underlying cash generation capacity of the Group. (i) Net debt Net debt comprises the net total of current and non-current interest-bearing loans and borrowings and cash and short-term deposits. The Directors believe that net debt is an important measure as it shows the Group's aggregate net indebtedness to banks and other external financial institutions. 2 Restatement of comparative information During 2006, the Directors continued to assess the detailed impact of IFRS on the presentation of the Group's consolidated financial statements and, as a consequence, made changes to the accounting treatment and presentation of certain items in the Group's consolidated financial statements for 2006. Two of those changes, namely those relating to the presentation of the interest cost and expected returns associated with the Group's defined benefit pension and other post-retirement benefit plans and the amortisation and impairment of intangibles, had already been made in the Group's 2006 Interim Report. The other changes, which are explained below, are reflected in this report as restatements of the comparative information for the six months ended 30 June 2006. Disposal of businesses from continuing operations In the Group's Interim Report for 2006, the loss on disposal of operations which were not classified as discontinued operations due to their size and importance, was calculated post-tax and presented on the face of the Condensed Group Income Statement below income tax costs. In this report, profits and losses on disposal of continuing operations are reported pre-tax as a separate line item below profit from operations and before profit before tax. Comparative figures for 2006 have been restated accordingly, such that a loss on disposal of continuing operations of Â£1.5m has been reported in arriving at profit before tax; profit before tax has reduced by Â£1.5m; income tax costs on exceptional items have increased by Â£0.2m and profit for the period is unchanged. This change in accounting treatment, which the Directors believe provides the user of the financial statements with more relevant information in relation to the results from continuing operations, has no impact upon the Group's previously reported net cash flows, financial position, total recognised income and expense or earnings per share. Cash flows from financing activities In the Group's Interim Report for 2006, cash flows resulting from the settlement of forward foreign exchange contracts were disclosed within the Condensed Group Statement of Cash Flows as a component of cash flows from operating activities. The Directors believe that such items should more appropriately be presented as a component of cash flows from financing activities and comparative figures for 2006 have been restated accordingly. This change in presentation has no impact upon the Group's previously reported net cash flows, financial position, total recognised income and expense or earnings per share. Bank overdrafts In the Group's Interim Report for 2006, bank overdrafts were disclosed within the Condensed Group Balance Sheet as a component of cash and cash equivalents. The Directors believe that such items should more appropriately be presented as a component of interest-bearing loans and borrowings and comparative figures for 2006 have been restated accordingly. This change in presentation has no impact upon the Group's previously reported net cash flows, financial position, total recognised income and expense or earnings per share. Investments In the Group's Interim Report for 2006, certain assets held in Rabbi Trusts were disclosed in the Condensed Group Balance Sheet as a component of other financial assets. The Directors believe that such items should more appropriately be presented within non-current investments and comparative figures for 2006 have been restated accordingly. This change in presentation has no impact upon the Group's previously reported net cash flows, financial position, total recognised income and expense or earnings per share. 3 Segment information For reporting purposes the Group is organised into three main business segments, Ceramics, Electronics and Precious Metals, which form the basis of the disclosures below. Segment revenue represents revenue to external customers and segment results include items directly attributable to a segment as well as those items that can be allocated on a reasonable basis. The impact of acquisitions in the period was not material. Half year 2007 Half year 2006 Full year 2006 Revenue Profit Revenue Profit Revenue Profit Â£m Â£m Â£m Â£m Â£m Â£m Ceramics 386.1 52.6 383.5 42.6 756.6 89.5 Electronics 269.4 26.8 281.0 27.1 554.7 58.5 - Assembly Materials 153.8 12.9 161.9 12.7 319.3 28.2 - Chemistry 115.6 13.9 119.1 14.4 235.4 30.3 Precious Metals 129.4 3.1 138.8 4.3 278.3 11.0 Corporate costs (4.1) (4.3) (8.7) Continuing operations 784.9 78.4 803.3 69.7 1,589.6 150.3 Discontinued operations 1.5 (0.1) 62.2 6.3 71.8 7.9 Group trading profit 78.3 76.0 158.2 Rationalisation of operating (2.3) (8.8) (34.7) activities Profit relating to non-current 1.5 1.8 13.1 assets Curtailment gains relating to - - 8.6 employee benefits Total Group 786.4 77.5 865.5 69.0 1,661.4 145.2 Of the total cost of rationalisation of operating activities of Â£2.3m (2006: half year Â£8.8m; full year Â£34.7m), Â£0.2m related to Ceramics (2006: half year Â£5.7m; full year Â£22.9m), Â£0.6m to Electronics (2006: half year Â£2.9m; full year Â£8.7m) and Â£1.5m to Precious Metals (2006: half year Â£0.2m; full year Â£2.4m). In the full year 2006, a further Â£0.1m related to discontinued operations and Â£0.6m to corporate activities. Of the Electronics costs of Â£0.6m, Â£0.1m related to Assembly Materials (2006: half year Â£1.9m; full year Â£7.0m) and Â£0.5m to Chemistry (2006: half year Â£1.0m; full year Â£1.7m). Of the total profit relating to non-current assets of Â£1.5m (2006: half year Â£1.8m; full year Â£13.1m), Â£0.2m related to Ceramics (2006: half year nil; full year Â£0.1m loss), and Â£1.3m related to Electronics (2006: half year Â£1.4m; full year Â£14.3m). In 2006, corporate activities contributed a profit of Â£0.4m at the half year and a loss of Â£1.1m in the full year. Of the Electronics profit of Â£1.3m, Â£1.6m related to Assembly Materials (2006: half year Â£1.4m; full year Â£1.5m) and a loss of Â£0.3m to Chemistry (2006: half year nil; full year Â£12.8m). 4 Rationalisation of operating activities The rationalisation of operating activities charge of Â£2.3m (2006: half year Â£8.8m; full year Â£34.7m) represents the cost of a number of initiatives throughout the Group aimed at reducing the Group's cost base and re-aligning its manufacturing capacity. Cash costs of Â£8.0m were incurred in the first half of 2007 (2006: half year Â£9.2m; full year Â£16.1m) in respect of the rationalisation and redundancy initiatives commenced both in this period and in prior periods. 5 Profit relating to non-current assets The disposal of non-current assets during the first six months of 2007 generated cash proceeds of Â£4.9m (2006: half year Â£2.8m; full year Â£16.6m) and resulted in a profit of Â£1.5m (2006: half year Â£1.8m; full year Â£13.1m). 6 Curtailment gains relating to employee benefits Curtailment gains of Â£8.6m arose in the full year results for 2006, resulting from reductions in liabilities arising from the closure of the Group's two largest US defined benefit pension plans to new members and the freezing of the benefits of existing members therein, together with reductions in the level of benefits provided through certain of the Group's US post-retirement healthcare plans. 7 Finance costs and finance income Included within finance costs is the interest cost associated with the liabilities of the Group's defined benefit pension and other post-retirement benefit plans of Â£12.9m (2006: half year Â£12.9m; full year Â£26.1m) and included within finance income is the expected return on the assets of the Group's defined benefit pension plans of Â£11.6m (2006: half year Â£10.6m; full year Â£19.6m). 8 Net profit/(loss) on disposal of continuing operations The net profit on disposal of continuing operations of Â£0.2m (2006: half year Â£1.5m loss; full year Â£4.7m loss) principally comprised a profit on disposal of a refractory brick-making business in the US, which was formerly part of the Ceramics division, partially offset by additional costs relating to prior years' disposals. The loss reported in the half year and full year of 2006 arose on the disposal of a number of businesses from the Ceramics and Electronics divisions. The tax charge associated with these disposals was Â£0.2m in the first half and Â£0.6m in the full year and is included within income tax costs relating to exceptional items (note 9). 9 Income tax costs The total charge for income tax of Â£20.0m (2006: half year Â£20.5m; full year Â£43.8m) comprises a tax charge on ordinary activities of Â£18.5m (2006: half year Â£18.7m; full year Â£38.5m), together with a Â£1.5m (2006: half year Â£1.8m; full year Â£5.3m) charge relating to exceptional items. The effective tax rate for the period of 27.5% (2006: half year 32.8%; full year 31.3%) relates to continuing operations and is calculated by reference to the income tax cost on ordinary activities of Â£18.5m (2006: half year Â£18.1m; full year Â£38.2m) and headline profit before tax excluding the Group's share of post-tax joint venture income of Â£67.2m (2006: half year Â£55.1m; full year Â£121.9m). The total charge relating to exceptional items includes a charge of Â£1.7m (2006: half year Â£1.7m; full year Â£3.1m) relating to deferred tax on goodwill, a credit of Â£0.3m (2006: half year Â£0.4m; full year Â£2.1m) in relation to rationalisation costs and a charge of Â£0.1m (2006: half year Â£0.3m; full year Â£3.7m) in relation to non-current assets. Additionally in 2006, tax charges arose on the net profit/(loss) on disposal of continuing operations of Â£0.2m for the half year and Â£0.6m for the full year. 10 Net post-tax profit/(loss) on disposal of discontinued operations The net post-tax profit on disposal of discontinued operations of Â£0.3m principally arose on the disposal of Monofrax Inc., a US-based manufacturer of fused-cast refractory products, which represented a separate major line of business within the Ceramics division, partially offset by additional costs relating to prior years' disposals of discontinued operations. The net profit on disposal, which is subject to completion adjustments, is stated after a goodwill write-off of Â£4.3m. The net post-tax loss on disposal of discontinued operations of Â£6.4m in the first half of 2006 related to the completion of the disposal of the Group's Laminates business. Of the Â£3.3m post-tax loss on disposal of discontinued operations in the full year 2006 results, Â£5.8m related to the disposal of the Laminates business, Â£0.2m of additional costs were incurred in relation to the disposal in 2005 of the Group's Specialty Coating Systems ('SCS') business and a profit of Â£2.7m arose in relation to additional consideration receivable in respect of the disposal of the Group's Speedline business in 2003. 11 Earnings per share ('EPS') EPS and headline EPS are calculated using a weighted average number of ordinary shares of 192.8m (2006: half year 190.8m; full year 191.5m). For the purposes of calculating diluted EPS, the weighted average number of ordinary shares is adjusted to include the weighted average number of ordinary shares that would be issued on the conversion of all dilutive potential ordinary shares. Potential ordinary shares are only treated as dilutive when their conversion to ordinary shares would decrease earnings per share, or increase loss per share, from continuing operations. The fully diluted weighted average number of ordinary shares in issue during the period was 193.4m (2006: half year 192.1m; full year 192.8m). 12 Dividends Half year Half year Full year 2007 2006 2006 Â£m Â£m Â£m Amounts recognised as distributions to equity holders during the period: Final dividend for 2006 of 7.0p per ordinary share 13.5 - - Interim dividend for 2006 of 3.0p per ordinary share - - 5.8 Final dividend for 2005 of 5.0p per ordinary share - 9.6 9.6 Total dividends paid in the period 13.5 9.6 15.4 The Directors have declared an interim dividend of 4.25p per ordinary share (2006: 3.0p) in respect of the year ending 31 December 2007. The dividend will be paid on 15 October 2007 to ordinary shareholders on the register at 28 September 2007. Based upon the number of ordinary shares in issue at 30 June 2007, the total cost of the dividend would be Â£8.2m (2006: Â£5.8m). 13 Borrowings Balance at Foreign Balance at 1 January exchange Non-cash 30 June 2007 adjustment Acquisitions movements Cash flow 2007 Â£m Â£m Â£m Â£m Â£m Â£m Cash and cash equivalents Short-term deposits 68.0 (0.2) - - (67.8) - Cash at bank and in hand 43.9 0.4 - - 3.0 47.3 Bank overdrafts (6.9) - - - (13.1) (20.0) (77.9) Borrowings, excluding bank overdrafts Current (97.4) 1.3 (2.5) - 18.6 (80.0) Non-current (188.8) 2.6 - - (6.6) (192.8) Capitalised borrowing costs 0.7 - - (0.2) - 0.5 12.0 Net debt (180.5) 4.1 (2.5) (0.2) (65.9) (245.0) 14 Employee benefits The balance of Â£126.7m in respect of employee benefits as at 30 June 2007 results from an interim actuarial valuation of the Group's defined benefit pension and other post-retirement obligations as at that date (31 December 2006: Â£155.1m; 30 June 2006: Â£188.8m) and comprises the following arrangements: 30 June 31 Dec 30 June 2007 2006 2006 Â£m Â£m Â£m Defined benefit deficit UK defined benefit pension plan 62.4 78.3 96.2 US defined benefit pension plans 29.9 39.8 48.7 ROW defined benefit pension plans 12.8 13.6 15.0 Other post-retirement benefit obligations, mainly US healthcare 21.6 23.4 28.9 arrangements Employee benefits 126.7 155.1 188.8 For valuation purposes, the discount rates used were 5.82% for the UK (31 December 2006: 5.12%; 30 June 2006: 5.22%) and 6.30% for the US (31 December 2006: 5.89%; 30 June 2006: 6.32%). The mortality assumptions used in the Group's actuarial valuations at 30 June 2007 were consistent with those used as at 31 December 2006 as detailed in the Group's 2006 Annual Report. The reduction of Â£15.9m in the deficit of the UK pension plan resulted mainly from additional funding contributions made in the period, the stabilising impact of the plan's investment strategy having resulted in the effects of the discount rate and inflation rate assumption changes on the plan liabilities being largely compensated for by the change in value of the interest rate and inflation swaps taken out under the strategy. As expected, this investment strategy has led to a significant reduction in the risk that the value of the plan's assets falls materially relative to the liabilities, thus increasing the overall stability of the IAS 19 funding ratio of the plan (the ratio of plan assets to plan liabilities), which was 82% as at 30 June 2007 (78% as at 31 December 2006). The reduction of Â£9.9m in the deficit of the US pension plans resulted mainly from the increase in the discount rate. The deficit of Â£29.9m in respect of the US pension plans as at 30 June 2007 does not reflect assets of Â£8.1m which are held in Rabbi Trusts in order to satisfy certain of the underlying US liabilities, but which may not be reported as pension assets under IFRS. In addition to the regular funding contributions into the Group's UK defined benefit pension plan, in agreement with the plan Trustee, the Company has made additional funding contributions aimed at accelerating the reduction in the plan deficit. Additional contributions of Â£14.8m were made in the six months ended 30 June 2006 (2006: half year Â£12.8m; full year Â£25.5m). The total charge against trading profit in the income statement for the six months to 30 June 2007 in respect of the Group's defined benefit pension and other post-retirement obligations was Â£3.6m (2006: half year Â£5.1m; full year Â£8.8m). 15 Exchange rates The Group reports its results in pounds sterling. A substantial portion of the Group's revenue and profits are denominated in currencies other than pounds sterling. It is the Group's policy to translate the income statements and cash flow statements of its overseas operations into pounds sterling using average exchange rates for the period reported (except when the use of average rates does not approximate the exchange rate at the date of the transaction, in which case the transaction rate is used) and to translate balance sheets using period end rates. The principal exchange rates used were as follows: Period end rates of exchange Average rates of exchange for the period 30 June 30 June 31 Dec Half year Half year Full year 2007 2006 2006 2007 2006 2006 US dollar ($ per Â£) 2.01 1.85 1.96 1.97 1.79 1.84 Euro (â‚¬ per Â£) 1.48 1.45 1.48 1.48 1.46 1.47 Singapore dollar (S$ per Â£) 3.07 2.92 3.00 3.01 2.88 2.92 Chinese renminbi (RMB per Â£) 15.3 14.8 15.3 15.2 14.4 14.7 South African rand (ZAR per Â£) 14.1 13.2 13.8 14.1 11.3 12.5 Japanese yen (Y per Â£) 247 211 233 237 207 214 This information is provided by RNS The company news service from the London Stock Exchange END IR OKDKDBBKBOFK

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