Interim Results 2006

Bovis Homes Group PLC
11 September 2006


                             BOVIS HOMES GROUP PLC
                                INTERIM RESULTS
                     for the six months ended 30 June 2006
                            Issued 11 September 2006

The Board of Bovis Homes Group PLC today announced its interim results for 2006.

   • Pre tax profit* increased by 18% to £53.1 million (2005: £45.1 million)
   • Earnings per share* increased by 18% to 31.4 pence (2005: 26.7 pence)
   • Interim dividend increased by 20% to 10.0 pence net per ordinary share
     (2005: 8.3 pence)
   • Period end net borrowings of £30.6 million (4.9% gearing)
   • Operating margin* at 22.7% (2005: 23.0%)
   • Plots with planning consent at 12,524 plots (owned: 12,132 plots/
     controlled third party owned: 392 plots)
   • Strategic landholdings at 23,098 potential plots after transferring 350
     plots to consented landholdings during the first six months

* stated before a one off pension credit of £3.5 million (2005: £nil)

Commenting on the results, Malcolm Harris, Chief Executive of Bovis Homes Group
PLC said:

'Bovis Homes has delivered a good set of half year results. The Group has
successfully increased the volume of legal completions year on year by 16% and
the operating margin has been sustained broadly in line with that achieved in
the comparable period of 2005.

The steady housing market experienced during the first six months has continued
through July and August, with sales reservation levels ahead of the
corresponding period in 2005.

Looking forward, based upon the Group's trading experience to date, the Board's
expectations remain unchanged in respect of profits for the full year.'

Enquiries:                                        Results issued by: 
Malcolm Harris, Chief Executive                   Andrew Best/Emily Bruning
Bovis Homes Group PLC                             Shared Value Limited
On Monday 11 September                            Tel: [phone]
Tel: [phone]
Thereafter
Tel: [phone]


Chairman's interim statement

Bovis Homes Group PLC is pleased to announce its interim results for the six
months ended 30 June 2006. Operating in a stable UK housing market, the Group
has succeeded in improving its pre tax profits through an increase in the volume
of legal completions whilst maintaining its strong housing profit margins.

Results

For the six months ended 30 June 2006 the Group achieved a pre tax profit of
£53.1 million (stated before a one off pension credit of £3.5 million),
representing an increase of 18% over the pre tax profit of £45.1 million in the
corresponding period of 2005. Earnings per share improved by 18% to 31.4 pence
(stated before the one off pension credit) compared with 26.7 pence in the first
six months of 2005.

Total Group revenue increased by 17% to £250.5 million compared with £214.5
million in the equivalent prior year period, with housing revenue increased by
22% to £238.1 million from £195.7 million. Land sales income and other income
amounted to £12.4 million compared with £18.8 million for the first six months
of 2005.

The half year results were generated from a higher volume of legal completions
than the prior year. In the first six months of 2006, the Group legally
completed 1,262 homes compared with 1,089 legal completions in the same period
last year. As expected, there was a reduced contribution from social housing in
the first half of 2006 with 141 social units (11.2% of total legal completions).
This compared with 246 social units in the first half of 2005 (22.6% of total
legal completions).

The Group's average sales price for the first half of 2006 was £188,700 compared
to £179,700 for the comparable six months of 2005. This represented an increase
year on year of 5%. The average size of home legally completed decreased by 3%
to 1,028 square feet compared with 1,060 square feet in the equivalent period of
2005. Hence, the average sales price per square foot increased by 8.3%. The
increase in sales price per square foot was positively affected by the reduction
in contribution from social housing year on year. For private homes, the average
sales price per square foot increased by 4.4%.

The Group's gross margin for the first half of 2006 was 33.2%, in line with
2005's half year gross margin of 33.3%. After adjusting for the lower
contribution from social housing, which generates more modest profit margins,
private housing gross margins reduced year on year by 0.9 percentage points.
This reduction was in line with Group expectations due to cost pressures in
excess of sales price improvements. The Group's operating margin, stated before
the one off pension credit, was 22.7% compared to 23.0% achieved in the first
half of 2005.

Dividends

The interim dividend of the Company will amount to 10.0 pence net per share, an
increase of 20% over 2005's interim dividend of 8.3 pence. This dividend will be
paid on 24 November 2006 to holders of ordinary shares on the register at the
close of business on 29 September 2006. The interim dividend represents the
normal one third ratio relative to the Group's anticipated 2006 full year
dividend of 30.0 pence net per share.

The Board remains content with the previously advised statement in respect of
dividends. It intends, conditional on any necessary approvals required at future
general meetings, to increase the full year dividend for 2006 to 30.0 pence net
per share followed by a 5.0 pence per share increase in both 2007 and 2008. This
commitment, which is subject to a stable business environment, will double the
full year dividend to 40.0 pence net per share from its 2004 base of 20.0 pence.

The Board intends to offer a scrip dividend alternative, pursuant to which the
shareholders may elect to receive the whole or part of their dividend in new
ordinary shares credited as fully paid instead of cash, for the 2006 interim
dividend.

Borrowings and financing

The Group's net borrowings at 30 June 2006 stood at £30.6 million compared with
opening net borrowings of £61.8 million. This level of net borrowing represented
a net debt/equity ratio of 4.9%. During the six months ended 30 June 2006, the
average net borrowings were £92.5 million and the average debt/equity ratio was
15.4%.

Net financing costs, which amounted to £3.8 million, included £1.1 million in
respect of imputed interest arising on deferred land creditors. The remaining
£2.7 million of net finance costs reflected interest charges arising on the
Group's fixed and floating interest rate borrowings net of interest income
arising on money market deposits.

Land

The Group ended the first half of 2006 with 12,524 controlled plots with
residential planning consent in the land bank (12,132 owned plots and 392
controlled third party owned plots). This compared with 13,138 plots (12,696
owned plots and 442 controlled third party owned plots) at 31 December 2005. The
land bank provides the Group with approximately four years of land supply at
current year activity levels. The Group remained cautious in the first half of
2006 in respect of purchases of consented land given the consistent strength of
prices for land which has an implementable residential planning consent. The
substantial strategic landholdings controlled by the Group with short term
potential for gaining residential planning consent provide the opportunity for
the Group to curtail purchases of land with consent without reducing its ability
to target volume growth over the next few years.

The strategic land bank at 30 June 2006 stood at 23,098 potential plots compared
to 22,166 potential plots held at the start of the year. The Group added a
further 1,282 potential plots having successfully converted 350 plots into the
consented land bank at a discount to market value. In addition to the 350 plots
converted, on 8 March 2006, the Group secured a resolution to grant outline
planning consent, subject to signing the necessary legal documents, for the
first phase of the site controlled by the Group at Wellingborough. This consent,
when released, will provide the Group the ability to construct over 3,000 homes
together with substantial commercial development.

Pensions

As at 30 June 2006, the Group's actuary estimated that the Group's defined
benefits pension scheme deficit had reduced to £7.7 million compared with the
deficit at 1 January 2006 of £22.4 million. This reduction arose primarily from
a special contribution paid by the Group in April 2006 of £5.5 million, a one
off IAS 19 pension credit of £3.5 million and a market movement in the bond rate
required to be used to discount the pension scheme liabilities.

Cumulative reservations

As at 30 June 2006, the Group held cumulative reservations totalling 2,273 homes
(excluding forward sales for 2007) compared to 2,038 homes (excluding forward
sales for 2006) at the same time in 2005. This represented an increase of 11.5%
year on year. Due to the timing of finalising housing association contracts,
social housing reservations formed a lower percentage of total reservations than
at the same time in 2005. By the end of the first half of 2006 the Group had
secured reservations on 492 social housing units compared with 639 social
housing units in the comparable period of 2005. This lower contribution from
social housing will be redressed in part during the second half of 2006,
although the overall contribution for the full year 2006 is likely to be lower
than in 2005. Private reservations were well advanced at 30 June 2006,
reflective of the Group's broader product offering to the market and recognition
of the need to secure reservations at an earlier stage of development.
Importantly, the Group has secured housing gross margins within its forward
order book which are in line with those housing gross margins on legal
completions achieved in the first half of 2006.

Market conditions

The UK housing market has demonstrated stability after a year of uncertainty in
2005. The fundamentals of the UK housing market remain sound. Consumer
confidence has been robust during the first half of 2006, in contrast to the
first half of 2005. House price increases to June 2006 reported by a number of
external market commentators have suggested year on year price increases between
5% and 8%. Consequently, affordability continues to remain a constraint in the
UK housing market. Notwithstanding this constraint, the Bank of England base
interest rate, whilst increased by the Monetary Policy Committee in August by 25
basis points, continues to be low relative to the long term average and buying a
house using a mortgage remains affordable.

Prospects

The Group continues to focus on delivering sustainable shareholder returns,
utilising its landholdings effectively and increasing profits. Land continues to
be the key supply chain input for any housebuilder and the land market, through
significant undersupply, has witnessed price increases far in excess of the
publicised increases in house prices. The Group will continue to focus on
procuring land through strategic means which will provide for delivery of
sustainable shareholder returns in the medium to long term.

In the first half of 2006, the Group has delivered growth in the volume of legal
completions whilst improving underlying prices and sustaining its high operating
profit margin. This robust half year performance combined with the strong
forward order book provides a sound base for the 2006 full year.


                                                               Tim Melville-Ross
                                                                        Chairman
                                                               11 September 2006

Bovis Homes Group PLC
Group income statement

For the six months ended 
30 June 2006                Six months ended    Six months ended     Year ended
                                30 June 2006        30 June 2005    31 Dec 2005
                                  (unaudited)         (unaudited)      (audited)
                                        £000                £000           £000
--------------------------         ---------           ---------      ---------
Revenue - continuing
operations                           250,495             214,492        521,194
Cost of sales                       (167,402)           (143,165)      (351,997)
--------------------------         ---------           ---------      ---------
Gross profit                          83,093              71,327        169,197
Administrative expenses              (22,748)            (21,925)       (44,120)
--------------------------         ---------           ---------      ---------
Operating profit before 
financing costs                       60,345              49,402        125,077
Financial income                          74                 488            557
Financial expenses                    (3,860)             (4,808)        (9,556)
--------------------------         ---------           ---------      ---------
Net financing costs                   (3,786)             (4,320)        (8,999)
--------------------------         ---------           ---------      ---------
Profit before tax                     56,559              45,082        116,078
Income tax expense                   (16,862)            (13,600)       (34,603)
--------------------------         ---------           ---------      ---------
Profit for the period                 39,697              31,482         81,475
==========================         =========           =========      =========

Earnings per share
--------------------------         ---------           ---------      ---------
Basic                                  33.4p               26.7p          69.0p
Diluted                                33.3p               26.5p          68.9p
--------------------------         ---------           ---------      ---------

Dividend per share
charged in period         
--------------------------         ---------           ---------      ---------
2005 final paid May 2006               16.7p                   -              -
2005 interim paid November 
2005                                       -                   -           8.3p
2004 final paid May 2005                   -               13.6p          13.6p
--------------------------         ---------           ---------      ---------
                                       16.7p               13.6p          21.9p
--------------------------         ---------           ---------      ---------


Bovis Homes Group PLC
Group balance sheet

At 30 June 2006                 30 June 2006        30 June 2005    31 Dec 2005
                                  (unaudited)         (unaudited)      (audited)
                                        £000                £000           £000
--------------------------         ---------           ---------      ---------
Assets
Property, plant and
equipment                             14,669              13,033         14,663
Investments                               23                  23             23
Deferred tax assets                    6,952              10,719         11,447
Trade and other
receivables                            3,301               5,924          5,727
--------------------------         ---------           ---------      ---------
Total non-current assets              24,945              29,699         31,860 
--------------------------         ---------           ---------      ---------

Inventories                          775,121             752,837        781,373
Trade and other receivables           36,826              37,837         70,523
Cash                                   9,816              23,650            344
--------------------------         ---------           ---------      ---------
Total current assets                 821,763             814,324        852,240
--------------------------         ---------           ---------      ---------

--------------------------         ---------           ---------      ---------
Total assets                         846,708             844,023        884,100
==========================         =========           =========      =========

Equity
Issued capital                        60,027              59,545         59,699
Share premium                        151,118             145,202        146,849
Hedge reserve                           (292)               (909)          (561)
Retained earnings                    416,195             351,470        392,160
--------------------------         ---------           ---------      ---------
Total equity                         627,048             555,308        598,147
==========================         =========           =========      =========

Liabilities
Bank loans                            20,265              41,106         40,802
Trade and other payables              23,384              15,328         32,666
Retirement benefit
obligations                            7,740              20,950         22,370
Provisions                             1,157               1,273          1,345
--------------------------         ---------           ---------      ---------
Total non-current
liabilities                           52,546              78,657         97,183
--------------------------         ---------           ---------      ---------

Bank overdraft                             -                   -          6,367
Bank loans                            20,152              35,193         15,000
Trade and other payables             132,612             161,582        151,493
Tax liabilities                       14,350              13,283         15,910
--------------------------         ---------           ---------      ---------
Total current liabilities            167,114             210,058        188,770
--------------------------         ---------           ---------      ---------

--------------------------         ---------           ---------      ---------
Total liabilities                    219,660             288,715        285,953
==========================         =========           =========      =========

==========================         =========           =========      =========
Total equity and
liabilities                          846,708             844,023        884,100
==========================         =========           =========      =========

These interim financial statements were approved by the Board of directors on 8
September 2006.


Bovis Homes Group PLC
Group statement of cash flows

For the six months ended 
30 June 2006                Six months ended    Six months ended     Year ended
                                30 June 2006        30 June 2005    31 Dec 2005
                                  (unaudited)         (unaudited)      (audited)
                                        £000                £000           £000
--------------------------         ---------           ---------      ---------
Cash flows from operating 
activities
Profit for the period                 39,697              31,482         81,475
Depreciation                             727                 750          1,509
Investment income                        (74)               (488)          (557)
Interest expense                       3,860               4,808          9,556
Profit on sale of property, 
plant and equipment                     (102)                (14)           (56)
Equity-settled share-based
payment expenses                         (29)               (130)           423
Income tax expense                    16,862              13,600         34,603
--------------------------         ---------           ---------      ---------
Operating profit before 
changes in working capital
and provisions                        60,941              50,008        126,953
--------------------------         ---------           ---------      ---------

Decrease/(increase) in 
trade and other receivables           36,123              (1,746)       (34,442)
Decrease/(increase) in 
inventories                            6,252             (52,920)       (81,456)
(Decrease)/increase in 
trade and other payables             (28,538)              9,583         18,154
Decrease in provisions and
employee benefits                     (9,000)             (1,433)          (990)
--------------------------         ---------           ---------      ---------
Cash generated from 
operations                            65,778               3,492         28,219
--------------------------         ---------           ---------      ---------

Interest paid                         (3,313)             (4,365)       (10,467)
Income taxes paid                    (15,840)            (21,450)       (39,450)
--------------------------         ---------           ---------      ---------
Net cash from operating
activities                            46,625             (22,323)       (21,698)
==========================         =========           =========      =========

Cash flows from
investing activities
Interest received                         74                 582            651
Acquisition of property, 
plant and equipment                     (764)               (887)        (3,303)
Proceeds from sale
of plant and equipment                   133                  29             97
Purchase of own shares                     -                (352)          (351)
Sale of own shares                         -                 127            128
--------------------------         ---------           ---------      ---------
Net cash from investing
activities                              (557)               (501)        (2,778)
==========================         =========           =========      =========

Cash flows from financing 
activities
Dividends paid                       (19,826)            (16,036)       (25,858)
Proceeds from the issue 
of share capital                       4,597               3,024          4,825
Repayment of borrowings              (15,000)                  -        (20,000)
--------------------------         ---------           ---------      ---------
Net cash from financing
activities                           (30,229)            (13,012)       (41,033)
==========================         =========           =========      =========

Net increase/(decrease) in 
cash and cash equivalents             15,839             (35,836)       (65,509)
Cash and cash equivalents 
at the start of period                (6,023)             59,486         59,486
--------------------------         ---------           ---------      ---------
Cash and cash
equivalents at the
end of period                          9,816              23,650         (6,023)
==========================         =========           =========      =========


Bovis Homes Group PLC
Group statement of recognised income and expense

For the six months ended 
30 June 2006                Six months ended    Six months ended     Year ended
                                30 June 2006        30 June 2005    31 Dec 2005
                                  (unaudited)         (unaudited)      (audited)
                                        £000                £000           £000
--------------------------         ---------           ---------      ---------
Effective portion of 
changes in fair value of 
interest rate cash flow
hedges                                   385                 (29)           468
Deferred tax on changes in 
fair value of interest rate 
cash flow hedges                        (116)                  9           (140)
Actuarial gains/(losses) on
defined benefits pension 
scheme                                 5,990              (1,560)        (2,850)
Deferred tax on actuarial
gains/(losses) on defined 
benefits pension scheme               (1,797)                468            855
Deferred tax on other 
employee benefits                          -                   -            869
--------------------------         ---------           ---------      ---------
Net income/(expense)
recognised directly in 
equity                                 4,462              (1,112)          (798)
Profit for the period                 39,697              31,482         81,475
--------------------------         ---------           ---------      ---------
Total recognised income 
and expense for the period
attributable to equity 
holders of the parent                 44,159              30,370         80,677
==========================         =========           =========      =========


Notes to the accounts

1  Basis of preparation

Bovis Homes Group PLC ('the Company') is a company domiciled in the United
Kingdom. The consolidated interim financial statements of the Company for the
six months ended 30 June 2006 comprise the Company and its subsidiaries
(together referred to as 'the Group') and the Group's interest in associates.

The interim financial statements were authorised for issue by the directors on 8
September 2006. The financial statements are unaudited but have been reviewed by
KPMG Audit Plc.

The interim financial statements have been prepared on the basis of the
recognition and measurement requirements of International Financial Reporting
Standards as adopted by the EU (IFRS) and its interpretations as adopted by the
International Accounting Standards Board (IASB), and comply with the
requirements of the Listing Rules issued by the Financial Services Authority.

The interim financial statements have been prepared on a basis consistent with
the accounting policies adopted for the year ended 31 December 2005. These
policies are set out in the Group's Annual Report and Accounts 2005.

The interim financial statements do not constitute statutory accounts within the
meaning of Section 240 of the Companies Act 1985. The figures for the half years
ended 30 June 2006 and 30 June 2005 are unaudited. The figures for the year
ended 31 December 2005 have been derived from the Company's statutory accounts
for the year ended 31 December 2005 upon which the auditors issued an
unqualified opinion and which have been delivered to the Registrar of Companies.

No adjustments have been made for any changes in estimates made at the time of
approval of the 2005 statutory accounts.

2  Earnings per share

Basic earnings per ordinary share for the six months ended 30 June 2006 is
calculated on profit after tax of £39,697,000 (six months ended 30 June 2005:
£31,482,000; year ended 31 December 2005: £81,475,000) over the weighted average
of 118,792,999 (six months ended 30 June 2005: 117,840,652; year ended 31
December 2005: 118,119,910) ordinary shares in issue during the period.

Analysis of effect of one off IAS 19 pension credit on basic earnings per share

                            Six months ended    Six months ended     Year ended
                                30 June 2006        30 June 2005    31 Dec 2005
                                  (unaudited)         (unaudited)      (audited)
--------------------------         ---------           ---------      ---------
Basic earnings per share               33.4p               26.7p          69.0p
Effect of one off IAS 19
pension credit, net of
related tax                            (2.0p)                  -              -
--------------------------         ---------           ---------      ---------
Earnings per share
stated before pension
credit, net of related
tax                                    31.4p               26.7p          69.0p
--------------------------         ---------           ---------      ---------


Diluted earnings per ordinary share is calculated on profit after tax of
£39,706,000 (six months ended 30 June 2005: £31,482,000; year ended 31 December
2005: £81,691,000) over the diluted weighted average of 119,232,829 (six months
ended 30 June 2005: 118,791,437; year ended 31 December 2005: 118,595,375)
ordinary shares potentially in issue during the period. The diluted average
number of shares is calculated in accordance with IAS 33 'Earnings Per Share'.
The dilutive effect relates to the average number of potential ordinary shares
held under option during the period. This dilutive effect amounts to the number
of ordinary shares which would be purchased using the aggregate difference in
value between the market value of shares and the share option exercise price.
The market value of shares has been calculated using the average ordinary share
price during the period. Only share options which have met their cumulative
performance criteria have been included in the dilution calculation. The profit
after tax used in the diluted earnings per share calculation includes an
adjustment to reverse the charge within the income statement in respect of the
fair value of share options in issue. The reversal for the six months ended 30
June 2006 was £9,000 (six months ended 30 June 2005: £nil; year ended 31
December 2005: £216,000).

Analysis of effect of one off IAS 19 pension credit on diluted earnings per
share

                            Six months ended    Six months ended     Year ended
                                30 June 2006        30 June 2005    31 Dec 2005
                                  (unaudited)         (unaudited)      (audited)
--------------------------         ---------           ---------      ---------
Diluted earnings per share             33.3p               26.5p          68.9p
Effect of one off IAS 19
pension credit, net of
related tax                            (2.1p)                  -              -
--------------------------         ---------           ---------      ---------
Diluted earnings per
share stated before
pension credit, net of
related tax                            31.2p               26.5p          68.9p
--------------------------         ---------           ---------      ---------

3  Dividends

The following dividends per qualifying ordinary share were paid by the Group.

                            Six months ended    Six months ended     Year ended
                                30 June 2006        30 June 2005    31 Dec 2005
                                  (unaudited)         (unaudited)      (audited)
--------------------------         ---------           ---------      ---------
May 2006: 16.7p (May 2005:       
13.6p)                                19,826              16,036         16,036
November 2005: 8.3p                        -                   -          9,822
--------------------------         ---------           ---------      ---------
                                      19,826              16,036         25,858
--------------------------         ---------           ---------      ---------


An interim dividend in respect of 2006 of 10.0 pence per share, amounting to a
total dividend of £11,929,000 based on the shares in issue as at 8 September
2006, was declared by the Board on 8 September 2006. This interim dividend will
be paid on 24 November 2006 to shareholders on the register at the close of
business on 29 September 2006. This dividend has not been recognised as a
liability at the balance sheet date.

4  Income taxes

Current tax

Current tax expense for the interim periods presented is the expected tax
payable on the taxable income for the period, calculated using a corporation tax
rate of 30%, adjusted to take account of deferred taxation movements.

Current tax for current and prior periods is classified as a current liability
to the extent that it is unpaid. Amounts paid in excess of amounts owed are
classified as a current asset.

Deferred tax

The amount of deferred tax provided is based on the expected manner of
realisation or settlement of the carrying amount of assets and liabilities using
tax rates enacted or substantially enacted at the balance sheet date.

5  Reconciliation of net cash flow to net debt

                            Six months ended    Six months ended     Year ended
                                30 June 2006        30 June 2005    31 Dec 2005
                                  (unaudited)         (unaudited)      (audited)
                                        £000                £000           £000
--------------------------         ---------           ---------      ---------
Net increase/(decrease) in 
net cash and cash 
equivalents                           15,839             (35,836)       (65,509)
Repayment of borrowings               15,000                   -         20,000
Fair value adjustments to
interest rate swaps                      385                 (29)           468
Net debt at start of period          (61,825)            (16,784)       (16,784)
--------------------------         ---------           ---------      ---------
Net debt at end of period            (30,601)            (52,649)       (61,825)
==========================         =========           =========      =========

Analysis of net debt:
Cash                                   9,816              23,650            344
Bank overdraft                             -                   -         (6,367)
Bank loans                           (40,000)            (75,000)       (55,000)
Fair value of interest rate
swaps                                   (417)             (1,299)          (802)
--------------------------         ---------           ---------      ---------
Net debt                             (30,601)            (52,649)       (61,825)
==========================         =========           =========      =========

6  Circulation to shareholders

The interim report will be sent to shareholders. Further copies will be
available on request from the Company Secretary, Bovis Homes Group PLC, The
Manor House, North Ash Road, New Ash Green, Longfield, Kent DA3 8HQ.

Further information on Bovis Homes Group PLC can be found on the Group's
corporate website www.bovishomesgroup.plc.uk, including the slide presentation
document which will be presented at the Group's results meeting on 11 September
2006.


Independent review report by KPMG Audit Plc to Bovis Homes Group PLC

Introduction

We have been instructed by the Company to review the financial information for
the six months ended 30 June 2006 which comprises the Group income statement,
Group balance sheet, Group statement of cash flows, Group statement of
recognised income and expense and notes to the accounts. We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information. This report is made solely to the Company in accordance with the
terms of our engagement to assist the Company in meeting the requirements of the
Listing Rules of the Financial Services Authority. Our review has been
undertaken so that we might state to the Company those matters we are required
to state to it in this report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the Company for our review work, for this report, or for the conclusions we have
reached.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the UK. A review consists
principally of making enquiries of management and applying analytical procedures
to the financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with International Statements on Auditing (UK and Ireland) and
therefore provides a lower level of assurance than an audit. Accordingly, we do
not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2006.

KPMG Audit Plc
Chartered Accountants
London

8 September 2006



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