Full Year Results

RNS Number : 9268Y

Hunting PLC

08 March 2012

 



For Immediate Release

8 March 2012

Hunting PLC

("Hunting", the "Company" or the "Group")

Full Year Results

Hunting PLC (LSE:HTG), the international energy services group, today announces its full year results for the year ended 31 December 2011.

Financial Highlights - continuing operations*

		%
·	Revenue £608.8m (2010 - £423.3m)	+44
·	Profit from operations before amortisation and exceptional items £81.0m (2010 - £45.0m)	+80
·	Reported profit from operations £41.0m (2010 - £31.0m)	+32
·	Reported profit before tax £38.8m (2010 - £33.0m)	+18
·	Diluted earnings per share before amortisation and exceptional items 38.7p (2010 - 22.7p)	+70
·	Reported diluted earnings per share 20.3p (2010 - 15.4p)	+32
·	Final dividend of 11.0p proposed to be paid on 2 July 2012 to shareholders on the register on 8 June 2012. Total for 2011 15.0p (2010 - 12.0p)	+25
·	Net (debt)/cash of £(218.4)m (2010 - £212.2m)

Corporate Highlights

·      Four acquisitions totalling £597.9m completed during the year:

o  Dearborn Precision Tubular Products - a precision machining specialist, including MWD/LWD^# tools, for a consideration of £50.6m

o  W L Doffing - a critical tolerance and prototyping specialist for a consideration of £14.2m

o  Titan - a leading manufacturer of perforating gun systems and shaped charges for a consideration of £508.6m

o  Specialty Supply - a leading manufacturer of directional drilling products and drill pipe screens for a consideration of £24.5m

·      Capital expenditure in the period increased to £58.0m (2010 - £49.0m) and includes:

o  Completion of consolidation of Aberdeen operations following a total investment of £15.0m at the Group's Badentoy and Fordoun facilities

o  Formal opening of Wuxi manufacturing facility in China

Segmental Results from continuing operations - before amortisation, exceptional items, interest and share of associates' post-tax profits.

	2011			2010*
	Revenue £m	Profit from operations £m		Revenue £m	Profit from operations £m
Hunting Energy Services
Well Construction	194.5	28.5		111.3	9.5
Well Completion	327.2	41.2		224.2	23.2
Well Intervention	52.9	7.9		58.7	10.1
Exploration and Production	8.2	1.7		6.5	1.3
	582.8	79.3		400.7	44.1
Gibson Shipbrokers	26.0	1.7		22.6	0.9
Total	608.8	81.0		423.3	45.0

Commenting on the results Dennis Proctor, Chief Executive, said:

"2011 has seen the continued transformation of Hunting, with four acquisitions completed in the year. Of note is Titan whose products and services extend the Hunting offering further into the well bore, broadening our customer reach and enhancing the Group's profile as a key supplier of well construction and completion products.

"Hunting's existing businesses have also exceeded management's expectations, with strong sales growth in the Group's premium connections and manufacturing operations, particularly in the final quarter of the year.

"The Group has started 2012 on a solid footing as the demand for energy remains firm and therefore is well positioned to deliver a further year of growth."

An analyst presentation will be held at 10.30a.m. today at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN.

For further information please contact:

Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director	Tel: [phone]
Buchanan Richard Darby Jeremy Garcia	Tel: [phone]

^(#) Measurement while drilling/logging while drilling

⁽*⁾ 2010 figures have been restated to reflect the reclassification of Field Aviation as a discontinued operation

Notes to Editors:

About Hunting PLC

Hunting PLC is an international energy services provider to the world's leading upstream oil and gas companies. Established in 1874, it is a fully listed public company traded on the London Stock Exchange. The Company maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, the Company has principal operations in Canada, China, Hong Kong, Indonesia, Mexico, Netherlands, Singapore, United Arab Emirates and the United States of America.

Chairman's Statement

The Group has once again produced excellent results in a year of continuing expansion. Profit before tax from continuing operations and before amortisation and exceptional items in 2011 was £79.8m (2010 - £47.0m), a 70% increase. After amortisation and exceptional items, profit before tax from continuing operations was £38.8m (2010 - £33.0m).

Outstanding acquisition opportunities arose and the Group took advantage of these, with the support of our banks and equity shareholders, as well as existing cash, to buy four companies - Titan being the largest purchase we have ever made. Despite this and the continuing investment in our manufacturing plants and service facilities, the balance sheet remains strong and healthy.

Industry trends identified in previous years continued in 2011, with high oil prices, low natural gas prices (at least in North America) and an even more emphatic rush to develop unconventional, especially shale, resources.

Global financial worries have not seriously impacted the demand for energy in most of our markets, so that customers have continued with their development and investment programmes - leading to high demand for our products.

Activity levels in the Gulf of Mexico, an important market for us, are beginning to recover to somewhere near their pre-2010 levels. Meanwhile, the abundant resources available in shale deposits onshore in the United States and elsewhere are being tapped at an increasing rate, with the emphasis moving to liquids for reasons of price.

A higher proportion of wells than ever before are being drilled horizontally and the Group has a comprehensive suite of products to support this trend. Our 2011 acquisitions give us even more strength in MWD ("measurement-while-drilling") and LWD ("logging-while-drilling") applications, while the growing demand for fracturing shale deposits is well served by Hunting Titan, the largest acquisition.

The Well Construction operations of our principal operating company, Hunting Energy Services, contributed strongly in a very much improved year while the largest activity, Well Completion, again performed magnificently. Well Intervention had another profitable year. It is notable that Asian activities and markets became ever more important to us.

We have continued our capital spending programme in all areas of Hunting Energy Services activity, with a particular emphasis on advanced production machinery to improve efficiency and to reduce costs. Outside the Hunting Energy Services stable, Gibson Shipbrokers had a successful year in highly volatile markets.

Diluted earnings per share from continuing operations, before amortisation and exceptional items, were 38.7p, an increase of 70% on the previous year. Reported diluted earnings per share from continuing operations were 20.3p (2010 - 15.4p).

We are recommending a final dividend for 2011 of 11.0p per share, payable on 2 July 2012 to shareholders on the register on 8 June 2012, giving a total of 15.0p for the year, a 25% increase.

George Helland, a non-executive Director since 2001, retired from the Company during the year. The Board thanks him for his thorough and constructive work, particularly in the role of Remuneration Committee Chairman.

Andrew Szescila, a US citizen and former Chief Operating Officer of Baker Hughes, joined the Board as a non-executive Director. David Barr, who had been appointed a non-executive Director at the beginning of the year, left us to take up an executive position elsewhere.

Your Company has had another excellent year and is considerably larger than before. The markets it serves seem poised to continue to grow as standards of living and energy consumption per head increase in much of the world.

We are well placed to take advantage of this growth and look forward to the opportunities and challenges ahead. I am grateful to our staff throughout the world for their fine contribution to our success.

Richard Hunting C.B.E.

Chairman

8 March 2012

Chief Executive's Review

Introduction

During 2011, Hunting achieved a number of significant milestones in its growth strategy leading to the excellent financial results reported. The Group successfully concluded four acquisitions totalling £597.9m in the second half of the year, which extended our technology offering and product reach into the oil and gas wellbore, while also broadening our advanced manufacturing capabilities offered to our customers. In parallel to these acquisitions, Hunting has continued its significant investment programme within its existing manufacturing facilities, with new sites formally opening in China and Scotland and further expansion projects commencing in North America. Within this positive operating environment, Hunting has seen many of its facilities increase the number of production shifts in the year, with demand in certain areas of the Group exceeding the historic highs seen in 2008.

Supporting our strategy for growth has been a strengthening in market momentum. In 2011, worldwide rig counts increased 12% to close the year at a near record high of 3,612 active units. Accompanying this increase has been a 20% increase in horizontal drilling compared to 2010 and a further shift to focusing on oil drilling. These factors have driven the demand for Hunting's products and with the WTI oil price averaging US$95 per barrel in the year, which reflects a tight balance between supply and demand, the Group enters 2012 with a confident outlook.

Much of what Hunting has achieved in the year has been due to the high quality people we employ. Following the acquisitions, the Group now has 3,453 employees (2010 - 2,233). As part of the integration of the new businesses and personnel, the senior management within our primary operating unit, Hunting Energy Services, has been restructured, with the new positions of Chief Operations Officer, Director of Manufacturing, Manufacturing Analyst and a new Managing Director of Hunting Americas being created. These new positions will direct new initiatives to maximise the manufacturing efficiencies across the Group's operations.

With this strong business momentum, particularly seen in the final quarter of the year, coupled with the business development highlighted, the Group reported a 44% increase in revenue to £608.8m (2010 - £423.3m). Our existing businesses contributed £120.7m to this growth, with the balance of £64.8m coming from our newly acquired companies. Profit from continuing operations before amortisation and exceptional items increased 80% to £81.0m (2010 - £45.0m) comprising £65.9m from existing operations and £15.1m from acquisitions. This performance leads us to report a 70% increase in diluted earnings per share from continuing operations before amortisation and exceptional items to 38.7p (2010 - 22.7p).

Profit from continuing operations after amortisation and exceptional items was £41.0m (2010 - £31.0m) and the reported diluted earnings per share from continuing operations was 20.3p (2010 - 15.4p).

Group Income Statement

	2011 £m	2010 £m
Continuing operations:
Revenue	608.8	423.3
EBITDA	102.5	62.6
Depreciation and non-exceptional impairment	(21.5)	(17.6)
Profit from operations before amortisation and exceptional items	81.0	45.0
Amortisation and exceptional items	(40.0)	(14.0)
Profit from continuing operations	41.0	31.0
Diluted EPS before amortisation and exceptional items	38.7p	22.7p
Diluted EPS - reported	20.3p	15.4p

Business Development

Hunting's strong financial performance during 2011 has been driven by an excellent performance from our existing businesses and a good contribution from the acquisitions made in the second half of the year.

Hunting's strategy is to invest in proprietary products, which have a strong market share and good synergies with the existing products offered by the Group. Each of the acquisitions completed during the year fulfilled these criteria:

Dearborn Precision Tubular Products ("Dearborn")- In August 2011, the Group completed the acquisition of Dearborn for a consideration of £50.6m. The business provides specialist precision machining services to the energy, aviation and power generation sectors, which demand close tolerance machining for components used in critical applications. Dearborn's energy related product lines include the manufacture of complex components used in measurement-while-drilling ("MWD") and logging-while-drilling ("LWD") tools. Each customer has specific MWD/LWD requirements and each order is highly complex and can take many hours to complete. Dearborn fits well with the product lines manufactured by Hunting Innova, as Innova's electronic measurement tools are often housed in Dearborn's products.

W L Doffing ("Doffing") - In early September 2011, Hunting completed the acquisition of the business and assets of Doffing, a precision machining services business, for a consideration of £14.2m. Doffing complements Dearborn, in that it supplies critical tolerance machining, prototyping and first-pass specialist production services used in MWD/LWD applications.

Titan - In mid-September 2011, the Group also completed the acquisition of Titan, the largest acquisition in the Group's history, for a consideration of £508.6m. Titan is a leading provider of perforating gun systems, shaped charges, well logging instrumentation and perforating gun switches used in drilling complex horizontal wells, predominantly for shale related drilling. Titan is a supplier of proprietary perforating products in North America and further exposes Hunting to the high growth global shale drilling market, to which the Group already supplies many other components. Part of the immediate integration strategy of Titan is to commence the manufacturing of its products at other Hunting facilities including the Wuxi facility in China where large growth opportunities have been identified. Further cross-selling opportunities for Hunting's existing products through Titan's 20 distribution outlets throughout North America are also being developed.

Specialty Supply ("Specialty") - In October 2011, Hunting completed the acquisition of Specialty Supply, a supplier of precision machined components, for a consideration of £24.5m. Speciality's products are used in the global directional drilling markets and include drill pipe screens, running gear, steering tools and gyro systems.

Since the completion of these acquisitions, all businesses have performed in line with management expectations, with business momentum being maintained from the final quarter of 2011 into the new trading year. Manufacturing and sales synergies have already been identified and are being implemented, with further systems integration planned for the near future.

From the start of 2012, Hunting has commenced a unified marketing initiative for the Innova, Dearborn and Doffing product lines. Under the new branding of 'Hunting Advanced Manufacturing Group', the Group now offers a single source solution for MWD/LWD measurement tools. Using the technical expertise of these three businesses, Hunting is aiming to become a leading supplier of MWD/LWD tools, removing the need for multiple component-sourcing currently required by our customers.

Following the four acquisitions, Hunting now has 38 manufacturing facilities worldwide (2010 - 30) with a global footprint totalling over 2.5m square feet of capacity.

During the year, Hunting continued its internal investment programme across its global facilities. In 2011, the Group increased capital expenditure to £58.0m (2010 - £49.0m), of which £57.8m (2010 - £48.7m) was invested within the Group's primary operating unit, Hunting Energy Services. Within the Group figure of £58.0m, new business development comprised of £45.2m (2010 - £36.8m) and replacement expenditure was £12.8m (2010 - £12.2m). During 2011 the Group completed a project in Scotland to consolidate manufacturing to two principal sites at Badentoy and Fordoun, relocated and consolidated its manufacturing capabilities in Dubai and formally opened its Wuxi facility in China. In 2012 new capital projects at Houma, Louisiana and Stafford, Texas are due to be completed, which will further increase the total operating footprint.

The Group also continued to build its Exploration and Production business where £2.3m was invested during the year (2010 - £7.1m).

Health, Safety and Environment

During 2011, Hunting Energy Services recorded 3.36m personnel hours compared to 2.30m in 2010, an increase of 46%. We are pleased to report that even with this increase, the number of recordable incidents decreased by 26% to 26 incidents compared to 35 in 2010. The incident per million person hours worked therefore decreased 49% to 7.7 compared to 15.2 in 2010.

Outlook

Hunting has commenced 2012 on a solid footing, as the demand for energy remains firm. The Group now has an established global manufacturing presence in key energy regions around the world, with a broad product and service offering for our customers. With our new acquisitions, we have extended the number of touch points in the oil and gas well bore and have many opportunities to cross-sell our products into the new and existing market segments in which we serve, while maximising the Group's manufacturing efficiency with our enlarged operating footprint.

In North America, shale related drilling will continue to support product demand as customers continue to focus on oil related resource plays. As activity in the Gulf of Mexico continues to increase, Hunting anticipates increased business in this area, which will increase the demand for our products, particularly those applicable to deepwater drilling activity. In Europe, despite the reduced number of active rigs following the UK government's new tax legislation, new development projects continue to be sanctioned in the North Sea, which will maintain activity throughout the year. In South East Asia, the continued increase in demand for energy will support our manufacturing activities in Singapore and China.

Oil and gas demand is forecast to continue to grow as we continue through the year, subject to the economic and geopolitical climate not declining further. In the medium to long term industry commentators are forecasting a 70% increase in investment in capital spending over the next decade to meet anticipated hydrocarbon demand, which provides confidence that Hunting's products will be required in the future.

Business Strategy

The key elements of the Group's business strategy to deliver long term shareholder value remain:

•           To deliver both acquisitive and organic growth across all of the Group's core operations.

•           To invest and develop the business platforms to augment:

-           Proprietary products and services;

-           Increased market share strength;

-           Enlarged global footprint; and

-           Capture of synergies from the opportunities thus created.

Underpinning these strategic objectives is a commitment to manufacture and deliver high quality products and services with a reputation for reliability and on time delivery under the Hunting brand.

Business Model

The key features of the Group's business model which seeks to deliver its strategic objectives are:

•           A decentralised management structure allowing local management to identify and react to customer or local market requirements.

•           Close monitoring, support and direction from the centre.

•           Short chains of command allowing for faster decision making.

•           Framework of controls with discretionary limits and powers for local management.

•           Flexible cost structures which can adapt to market conditions.

•           Common standards for quality, health and safety across operations.

Maintaining high operational standards across all of the Group's activities is viewed as one of the building blocks in delivering a strong financial performance.

Operating Review

Hunting manufactures or distributes those products that enable the extraction of oil and gas. The Group's customers include international energy companies, national oil companies and mid to large oil services groups. With increasingly complex resources to define and develop, in ever increasing challenging locations, Hunting continues to position its technical expertise and operating footprint to meet the requirements of these customers.

Hunting Energy Services

Hunting Energy Services is the primary operating unit of the Group and during 2011 reported a 45% increase in revenue to £582.8m (2010 - £400.7m) and an 80% increase in profit from continuing operations before amortisation and exceptional items to £79.3m (2010 - £44.1m). Reported profit from continuing operations was £50.1m (2010 - £33.2m).

This growth has been achieved through:

•           Near record levels of activity within certain businesses, including Premium Connections, Drilling Tools and Manufacturing.

•           Good contributions from newly opened facilities around the Group including Conroe, Latrobe, Casper and Wuxi.

•           Continued rollout of lean manufacturing across Hunting's 38 locations.

•           Addition of new acquisitions to the Hunting portfolio.

Our existing businesses delivered revenue growth of £117.3m to £518.0m, with the balance of £64.8m coming from our newly acquired companies. Profit from continuing operations before amortisation and exceptional items from existing operations was £64.2m, with £15.1m being generated from the new companies in the Group.

As the business enters 2012, Hunting Energy Services is continuing this momentum with increased demand from its chosen markets, while also benefiting from new opportunities being presented from our newly acquired businesses.

Segmental Results

The Group reports through a divisional structure arranged into the following operating segments:

	2011			2010
	Revenue	Profit from operations	Margin	Revenue	Profit from operations	Margin
	£m	£m		£m	£m
Hunting Energy Services
Well Construction	194.5	28.5	15%	111.3	9.5	9%
Well Completion	327.2	41.2	13%	224.2	23.2	10%
Well Intervention	52.9	7.9	15%	58.7	10.1	17%
Exploration and Production	8.2	1.7	21%	6.5	1.3	20%
	582.8	79.3	14%	400.7	44.1	11%
Gibson Shipbrokers	26.0	1.7	7%	22.6	0.9	4%
Group	608.8	81.0	13%	423.3	45.0	11%
Amortisation and exceptional items		(40.0)			(14.0)
Group profit from continuing operations		41.0			31.0

Well Construction

Hunting's Well Construction division includes those businesses that are positioned in the initial drilling and construction phase of the wellbore. The division now includes Hunting Advanced Manufacturing Group which comprises Hunting Innova and the newly acquired Dearborn and Doffing businesses.

The Well Construction division reported revenue of £194.5m (2010 - £111.3m), with benefits in the final quarter from the three new businesses in the segment. Profit from continuing operations before amortisation and exceptional items increased in the year to £28.5m (2010 - £9.5m). Reported profit from continuing operations was £20.7m (2010 - £7.8m). The platform comprises six business areas: Premium Connections, Drilling Tools, Oil Country Tubular Goods ("OCTG"), Trenchless Technologies, Hunting Advanced Manufacturing Group and Specialty Supply.

Premium Connections

Hunting's Premium Connections business which comprises a range of connections including the SEAL-LOCK™ and WEDGELOCK™ product lines reported record results during 2011, following completion of a number of major orders in the year. Momentum within the business has increased as customers prepare for renewed drilling in the Gulf of Mexico, in addition to continued demand for shale related connections in all of the key drilling regions across North America.

Drilling Tools

The Hunting Drilling Tools platform provides mud motors, shock tools, non-magnetic drill collars and other technologies to assist in the efficient drilling of oil and gas wells. During the year, demand for Hunting's products increased strongly, leading to record sales in the final quarter of 2011. Following the opening of three new facilities during 2010, demand has been driven by shale drilling in North America, particularly with customers drilling in the Bakken, Marcellus and EagleFord shale plays. New regional sales were also developed in Kurdistan during the year, as frontier exploration drilling continues to increase and more licenses are granted to western companies. Hunting's recently established Equipment Management Services ("HEMS") business, which provides downhole tool rental equipment, also reported its first profit during the final quarter of 2011 after strong increases in sales throughout the year. HEMS has developed new opportunities across the MENA region and in December 2011 successfully signed a contract to supply a leading oil services provider.

OCTG

Hunting's OCTG business includes casing products and management services for customers. The Group has key relationships with steel manufacturers to facilitate just-in-time logistics.

Trenchless Technologies

During 2011, the Trenchless business exceeded management's expectations. All three product lines, drill stems, premium tubing threading and motor components achieved good sales growth in the year with business momentum extending into early 2012. The business also increased its number of distributors during the year to broaden the geographic reach of the Group's product offering.

Advanced Manufacturing Group

Since the completion of the acquisitions of Dearborn and Doffing in the second half of 2011, the businesses have performed in line with management's expectations. With these new manufacturing capabilities, Hunting is now positioned to capture a higher proportion of the lower volume/higher margin manufacturing contracts related to the increasingly complex oil and gas well designs developed by our customers.

At Hunting Innova, the business continues to be integrated into the Group, following its first full year of ownership, with demand for products remaining strong, ending the year with a good order backlog. Innova continues to supply to the leading US oil service companies and during the year added new clients who will broaden the product reach of the business in the future.

Specialty Supply

Specialty manufactures precision machined MWD parts used in directional drilling markets worldwide. These include a comprehensive line of running gear and associated products for MWD, LWD, steering tools and gyro systems. Additionally, Specialty's product offering includes drill pipe screens for all drilling applications. Since completion of the acquisition, Specialty has exceeded management's expectations, with new initiatives underway to reduce outsourcing.

Well Completion

Hunting's Well Completion division provides products to customers during the completion phase of an oil and gas well. The Well Completion division reported revenue of £327.2m in 2011 (2010 - £224.2m) and benefited from the acquisition of Hunting Titan on 16 September.

Profit from operations before amortisation and exceptional items totalled £41.2m (2010 - £23.2m). Reported profit from continuing operations was £21.4m (2010 - £23.2m). The division operates from four platforms: Hunting Titan, Premium Tubing, Manufacturing and Thread Protection.

Hunting Titan

Following completion of the acquisition of Titan, the business has performed in line with management's expectations, with continued demand for shale related products and services, driven by the strong rig counts reported during the year. During 2011, the business has continued to expand its manufacturing and distribution presence in North America to capture more market share in the region. It is anticipated that Titan will utilise Hunting's existing facilities in China, Europe and Canada to maximise manufacturing opportunities, while developing new sales across South East Asia where the Group has an established presence.

Premium Tubing

Hunting's Premium Tubing business reported its best year since 2008. While shale drilling has been a primary driver for this performance, new business has been captured in new regions including East Africa and the Middle East.

Manufacturing

The Group's manufacturing business continued to perform well during 2011, with particularly strong trading seen in the final quarter of the year. With the continuation of the implementation of lean manufacturing initiatives across the Group's operations, further efficiency gains have been realised. During the year, the business commenced an expansion project in Houma, Louisiana, which is anticipated to be completed during mid 2012.

Thread Protection

Hunting's thread protection platform provides protection solutions including SealLube™ thread compound, Preserve-A-Thread corrosion protection and CLEAR-RUN™, its environmentally friendly advanced tubular solution. In 2011, the business performed strongly, following both external customer and internal demand for our product lines. Following an excellent year, the business will increase its in-house manufacturing of certain product lines to reduce outsourcing to other suppliers.

Well Intervention

Hunting's Well Intervention division supplies a range of products and services required throughout the life of a well to enhance and maintain production and in 2011 reported a profit from operations before amortisation and exceptional items of £7.9m (2010 - £10.1m). Reported profit from continuing operations was £7.3m (2010 - £9.3m).

The subsea valves and connections platform has seen a mixed performance in the year, predominantly due to the slowdown in deep water drilling activity following the Macondo disaster in 2010, which impacted the demand for the business' products. While the backlog remains strong and activity in the Gulf of Mexico improves, the revised regulatory procedures in the region have led to customers delaying orders during the year. With industry wide preparations underway anticipating increased drilling activity in the Gulf of Mexico, the business is shortly to complete an expansion of its facilities to address the future drilling demand anticipated both regionally and globally.

Hunting Welltonic provides pressure control equipment, control panels, e-line (wireline) and slickline tools. During 2011 the business performed well following good demand for a number of product lines and a new product receiving acceptance from a major oil services company. Welltonic is currently expanding its presence in the US to develop sales of both Thru Tubing and pressure control products in the region.

Exploration & Production

Hunting's Exploration and Production division has interests in the Southern US and offshore Gulf of Mexico, holding equity interests in over 70 production properties. On a Net Equivalent Barrel ("NEB") basis, production in the year was 252,000 barrels (2010 - 230,000 barrels), with proven reserves at year end being 1.2m NEB (2010 - 1.3m NEB). Based on firm commodity prices throughout the year, the business reported a profit from operations before amortisation and exceptional items of £1.7m (2010 - £1.3m). Reported profit from continuing operations was £0.7m (2010 - £7.1m loss).

During 2011, the business participated in four successful exploration wells in Lavaca County, Texas; Hidalgo County, Texas; Brooks County, Texas; and Goliad County, Texas. A fifth well drilled in Matagorda County resulted in a dry hole.

Following a year end valuation of reserves, which requires individual oil and gas properties to be impaired when the realisable value is less than the book value based on future production and commodity prices, the business has taken an impairment charge of £1.0m reflecting lower gas prices.

Oil and Gas Reserves:

	1 January 2011	Reserve movement	Production	31 December 2011
Oil	559	95	(75)	579
Gas	709	110	(177)	642
Oil and gas	1,268	205	(252)	1,221

All figures are Net Equivalent Barrels '000.

Other Operating Divisions

Gibson Shipbrokers

Gibson is one of the leading global shipbrokers and employs 148 staff. Despite extremely depressed shipping markets, caused by an oversupply of tonnage, the company expanded its depth of market coverage with an increase in staff and a 15% increase in trading volume during the year. Income and profit exceeded expectations reporting a profit from operations before amortisation and exceptional items of £1.7m (2010 - £0.9m).

With shipping markets expected to remain severely depressed for at least another 12 months, the operating policy remains one of cautious expansion. Mindful of these difficult times we are engaged in positioning the business to be able to capture a greater share of projected market improvements.

Division expansion has not been restricted to the London Headquarters. Singapore has grown with the addition of Dry Cargo, and more recently Clean Tankers, to the already successful Specialised and Gas activities.

Today, Gibson is active in Crude, Fuel and Clean Tanker chartering, Dry Bulk, Vegoils, Chemicals, LPG, LPG Broking and LNG, Sale and Purchase for New Buildings, second hand and re-sales as well as Demolition, Offshore including Seismic and renewables, and an enviable in-house Research and Consultancy section.

Field Aviation

Field Aviation is reported as a discontinued business, as it remains our intention to sell the business to management. On 30 June 2011, the business was classified as a held for sale asset, reflecting progress on the sale of the company. Active discussions are currently in progress and the sale is considered to be highly probable.

Field Aviation is recognised worldwide as a modifier of aircraft for special mission roles. The Aircraft Modification Centre in Toronto carries out the design, installation, testing and certification of aircraft modification. Interior modification capabilities transform regional airliners into VIP or corporate shuttle aircraft. Leading-edge avionics modifications keep aircraft productive, profitable and technologically advanced. As a build-to-print aircraft parts manufacturer, the Parts Manufacturing facility in Calgary specialises in the production of parts and spares for the international commercial and military aerospace industry. The business manufactures airframe parts and accessories for both current-production aircraft and out-of-production aircraft.

Field Aviation, as predicted, faced a challenging market with a weak order book on the back of reduced government spending worldwide. In 2011, Field Aviation delivered a profit from operations of £0.8m (2010 - £5.2m) on revenues of £25.9m (2010 - £38.3m).

Performance Measures

A number of performance measures are used to compare the development, underlying business performance and position of the Group and its business segments. These are used collectively and periodically reviewed to ensure they remain appropriate and meaningful monitors of the Group's performance.

Key Performance Indicators	Description	2011	20101
Revenue	Revenue generated by continuing operations	£608.8m	£423.3m
EBITDA	Pre-exceptional earnings before interest, tax, depreciation, amortisation and impairments	£102.5m	£62.6m
Profit from operations	Profit from continuing operations before amortisation and exceptional items	£81.0m	£45.0m
Diluted earnings per share ("EPS")	Earnings from continuing operations, before amortisation and exceptional items, attributable to Ordinary shareholders divided by the weighted average number of Ordinary shares in issue during the year, as adjusted for all potentially dilutive Ordinary shares	38.7p	22.7p
Dividend per share ("DPS")	Reflects the cash returned to Ordinary shareholders. Figures shown are calculated on an accruals basis	15.0p	12.0p
Return on average capital employed ("ROCE")	Measures profit before interest and tax, before amortisation and exceptional items, as a percentage of average gross capital employed. Average gross capital employed is based on the monthly average of the aggregate of total equity and the net cash/debt. This measure is also used as a benchmark for target acquisitions and capital expenditure proposals	15%	16%
Gearing ratio	Measured by net debt as a ratio to shareholders capital employed	30%	n/a
Free cash flow	Profit from continuing operations adjusted for working capital, tax, replacement capital expenditure and interest	£38.9m	£9.5m
Capital expenditure	Capital spend on tangible non-current assets	£58.0m	£49.0m
Inventory and WIP days	Inventory and WIP at the year-end divided by revenue per day, adjusted for the impact of acquisitions	112 days	103 days
Trade receivable days	Trade receivables at the year-end divided by revenue per day, adjusted for the impact of acquisitions	73 days	66 days

Other Performance Measures	Description	2011	20101
Health and safety measures	Monitor lost time accidents and incident rates
Quality and efficiency measures	Monitor production and non-conformance reports
Number of employees	Number of employees at the end of the year	3,453	2,233

Note 1- 2010 figures restated due to the reclassification of Field Aviation as a discontinued operation.

Indicators of future Group performance closely monitored by management include:

Key Market Indicators	Description	2011	2010
Drilling rig activity	International average rig count - December average	1,180	1,118
	North America rig count - December average	2,432	2,109
Oil price	WTI price at the year end - per barrel	US$98.83	US$91.38
Natural gas price	Henry Hub price - mcf - December	US$2.96	US$4.41
Exchange rates	Average exchange rates (US$:£) Exchange rate as at 31 December (US$:£)	1.60 1.55	1.55 1.57

Financial Review

Introduction

2011 has seen record results and improving margins on the back of strong market demand for our products and services. Delivering on our strategic objectives we completed four acquisitions in the year at a cost of £597.9m - all four acquisitions have added to the Group's product offering. Integration of the acquisitions is a priority, with measures including new IT systems and additional management resource being implemented.

The financial strength of the Group remains robust, with strong support from our shareholders and banks, as seen by our £83.5m share placing completed during the year and our new £375.0m five year bank facility signed on 5 August 2011.

Results

Revenue

Group revenues increased 44% to £608.8m in 2011 (2010 - £423.3m). Acquisitions contributed £64.8m of this revenue growth and revenue from existing businesses was up £120.7m or 29%. Well Construction was the strongest performing division, with revenue up 75% to £194.5m (2010 - £111.3m). This division has benefited from a full year contribution from Innova, acquired in September 2010, as well as the Dearborn, Doffing and Specialty acquisitions contributing to the last quarter of 2011. US Connections performed strongly leveraging the development of shale projects and improved activity in the Gulf of Mexico. Drilling Tools also performed strongly, benefiting from its wider distribution network and shale activity levels in North America. Well Completion revenue was up 46% to £327.2m (2010 - £224.2m), mainly due to the contribution from the Titan acquisition, however, the like-for-like business was still up 25%. The Well Intervention division has had a more challenging year with revenues declining by 10% to £52.9m (2010 - £58.7m) partly due to product delivery delays associated with the increased regulatory environment in the Gulf of Mexico which affected sales from our subsea connections and intervention platform.

EBITDA and Profit from Operations

EBITDA before amortisation and exceptional items was £102.5m, £39.9m ahead of 2010, with acquisitions contributing £16.4m to this growth. The EBITDA margin increased from 15% in 2010 to 17% in 2011 helped by product mix and the higher margins from the acquisitions completed in 2011. The year ended particularly strongly, aided by strong demand across most of our manufacturing facilities and benefiting from favourable weather conditions in key regions of the US and Canada.

Profit from continuing operations before amortisation and exceptional items was £81.0m for 2011, an increase of 80% over 2010 despite sterling strengthening against the US dollar to US$1.60 (2010 - US$1.55). The operating profit margin increased from 11% in 2010 to 13% in 2011. Well Construction profit from operations before amortisation and exceptional items was up 200% to £28.5m (2010 - £9.5m) due to the year-on-year impact of the acquisitions and growth in the Premium Connections and Drilling Tools businesses. In Well Completion, profit from operations before amortisation and exceptional items increased 78% to £41.2m (2010 - £23.2m) predominantly due to the addition of Titan to the division. In Well Intervention, the 22% decline in profit from operations to £7.9m (2010 - £10.1m) was due to the slower trading environment within the subsea platform, referred to earlier.

Amortisation and Exceptional Items

Intangible asset amortisation charges increased from £2.5m in 2010 to £12.2m in 2011 due to the increased charge arising on intangible assets recognised on the four acquisitions completed in the year. The expected full year amortisation charge in 2012 is estimated to be £30m.

The following exceptional charges arose in the year:

•          Acquisition costs of £8.6m relating to the four acquisitions, which were completed in 2011.

•          Under IFRS, at acquisition, inventory values are adjusted from their carrying values (generally at cost of production) to a fair value, which includes profit attributable to the degree of completion of the inventory. This resulted in a fair value uplift totalling £23.6m for the four acquisitions. This uplift is charged to the income statement as the inventory is sold, thereby reducing reported operating profits. In 2011, the charge was £12.9m and this has been treated as exceptional. The balance of £10.7m is expected to be charged to the income statement in 2012.

•          A £1.6m charge relating to key employee retention was also recognised in 2011, relating to the acquisitions completed during the year.

•           Charges under onerous leases for properties have been assessed at £2.2m.

•           The impairment of oil and gas capitalised expenditure of £1.0m arose largely as a result of declining forward gas commodity prices compared to 31 December 2010.

•           Goodwill impairment reviews undertaken during the year have resulted in a £1.5m impairment charge.

•           Unamortised loan facility fees of £1.0m were written off as a result of the acquisition.

Profit from continuing operations, after amortisation and exceptional items, was £41.0m in 2011 compared to £31.0m in 2010.

Net Finance Costs

Net finance costs before exceptional items in 2011 were £2.2m compared to a £1.0m net finance income in 2010. The change from net income to net expense is due to the Group moving into a net debt position in the second half of the year following the acquisition programme, together with an increased charge for bank loan facility fees.

Taxation

The Group tax rate before amortisation and exceptional items for 2011 was 28% (2010 - 30%) resulting in a tax charge of £22.5m (2010 - £14.0m). The lower tax rate reflects the weighting of profits in lower tax jurisdictions, together with a reduced UK corporate tax rate. The tax rate for 2012 is currently expected to remain at 28%, however, this is dependent on the mix of profits going forward. The exceptional charge in the year attracts a tax credit of £15.2m to give a net tax charge on continuing operations in 2011 of £7.3m (2010 - £9.9m).

Earnings per Share

Diluted earnings per share before amortisation and exceptional items for continuing operations increased 70% to 38.7p from 22.7p in 2010. Reported diluted earnings per share at 20.3p was 32% above 2010. The weighted average number of shares used in calculating the diluted earnings per share in 2011 was 140.1m compared to 134.0m in 2010, with the increase mainly due to the 13.2m share placing completed in August 2011.

Cash Flow

	2011 £m	2010 £m
EBITDA before amortisation and exceptional items	102.5	62.6
Working capital movements	(33.2)	(38.9)
Interest (paid) received and bank fees	(7.6)	1.6
Tax paid	(15.5)	(3.2)
Replacement capital expenditure	(12.8)	(12.2)
Other operating cash and non-cash movements	5.5	(0.4)
Free cash flow	38.9	9.5
Expansion capital expenditure	(45.2)	(36.8)
Purchase of subsidiaries	(572.5)	(80.4)
Acquisition costs	(8.6)	(3.1)
Equity placing	83.5	-
Gibson Energy	85.3	(25.2)
Dividends to equity holders and non-controlling interests	(18.0)	(15.6)
Other including foreign exchange	3.8	4.8
Cash flows related to discontinued operations	2.2	(6.0)
Movement in net debt in the year	(430.6)	(152.8)

The free cash flow generated in 2011 of £38.9m is £29.4m ahead of 2010. The improved operating EBITDA of £102.5m (2010 - £62.6m) is a key component of this as described above. Working capital movements were £5.7m better year-on-year. There was a significant reversal on interest and bank fees with an inflow of £1.6m in 2010 becoming an outflow of £7.6m in 2011, as a result of moving into a net debt position during 2011, together with fees related to the new bank facility. Tax paid in 2011 was £12.3m higher than 2010 due to low tax payments in 2010 which were shielded by brought-forward losses.

Expansion capital expenditure in the year of £45.2m principally related to the internal investment programmes in Scotland, US and China. Capital expenditure on exploration and production was £2.3m (2010 - £7.1m). Total capital expenditure for 2011 was £58.0m an increase of £9.0m.

Capital expenditure in 2012 is expected to increase to around £75m, as expansion projects at Houma, Louisiana, and Stafford, Texas, are completed, together with increased equipment requirements for the ongoing expansion of the Drilling Tools and Titan operations.

The total cash flow incurred in the purchase of subsidiaries, net of cash acquired and including expenses of £8.6m, was £581.1m. This includes Titan, Dearborn, Doffing and Specialty with Titan being the largest component at £506.6m. The acquisitions were partly funded by an equity placing which raised £83.5m.

Total dividends paid during the year were £18.0m (2010 - £15.6m). Dividends paid to equity shareholders of £16.8m were 19% ahead of 2010 and reflects the Board's confidence in the strength of the Group.

Cash of £85.3m was received when the Gibson Energy warrant was repaid in June 2011.

Balance Sheet

	2011 £m	2010 £m
Goodwill	316.5	100.6
Other intangible assets	220.8	22.6
Property, plant and equipment	231.2	154.1
Other assets	10.3	59.2
Working capital	262.6	136.5
Net assets held for sale	3.2	-
Taxation (current and deferred)	(33.7)	(34.5)
Provisions	(60.5)	(56.1)
Capital employed	950.4	382.4
Net (debt) cash	(218.4)	212.2
Net assets	732.0	594.6
Non-controlling interests	(16.8)	(14.2)
Equity attributable to owners of the parent	715.2	580.4

Due to the 2011 acquisitions, the balance sheet profile has changed significantly. Goodwill has increased by £215.9m of which £180.7m arose on the acquisition of Titan. Other intangibles have increased by £198.2m and include customer relationships, technological know-how and trademarks.

Property, plant and equipment has increased by £77.1m largely due to £45.4m recognised as part of the acquisitions as well as gross capital expenditure of £58.0m during the year.

Other assets have fallen by £48.9m, primarily due to the repayment of the Gibson Energy warrant during 2011. The £10.3m balance at 31 December 2011 includes a net pension surplus of £4.8m (2010 - £5.5m) based on the IAS 19 valuation of the Group's UK defined benefit pension scheme.

Working capital has increased by £126.1m to £262.6m. The 2011 acquisitions represent £100.2m of the increase, with inventory being £86.3m of this. Inventories at the year end include £10.7m of fair value uplift expected to be charged to the income statement in 2012.

As a result of the above, capital employed has increased by £568.0m to £950.4m at 31 December 2011.

The cash outflow in 2011 of £430.6m has put the Group into a net debt position at the year end of £218.4m, with cash and cash equivalents and investments of £73.2m and borrowings of £291.6m.

Net assets at 31 December 2011 were £732.0m which, after non-controlling interests of £16.8m, result in equity shareholder's funds of £715.2m. This is an increase of £134.8m over 31 December 2010, which reflects the retained result for the year of £79.1m, exchange gains of £5.9m, share placing of £83.5m, offset by £16.8m dividend payments together with other items of £16.9m.

Financial Capital Management

Since the sale of Gibson Energy in 2008, the strategic objective of the Group has been to focus on upstream energy services by expanding our proprietary technologies and geographic footprint. The acquisitions during 2011 represent a further significant step in delivering this strategy. A priority for 2012 is to fully integrate the new businesses and leverage their potential within the Group.

The expenditure on acquisitions of £597.9m during 2011 was funded by a combination of cash, an equity placing and new bank facilities. The Group's financial position remains robust, with total credit facilities of £423.6m in place (2010 - £153.9m) of which £375.0m (2010 - £120.0m) is committed. The committed facility is a £375.0m multi-currency revolving credit facility from a syndicate of ten banks which extends to August 2016. 

The level of net debt and related gearing ratio of 30% at 31 December 2011 is considered comfortable, with adequate headroom remaining giving management ongoing flexibility. Our bank facility covenants require EBITDA to cover relevant finance charges by a minimum of 4 times and net debt to adjusted EBITDA has a maximum of 3.5 times. Both key bank covenant metrics at year end were well covered.

Return on average capital employed is a KPI management use to assess business unit performance. The Group's return on capital employed has fallen from 16% during 2010 to 15% in 2011 primarily due to the higher level of capital employed following the acquisition programme.

The Board considers each ordinary dividend proposed based on the merits of the information available to it at the time. Consideration is given to the financial projections of business performance and capital investment needs, together with feedback from shareholder discussions.

The Group operates a centralised treasury function with policies and procedures approved by the Board. These cover funding, banking relationships, foreign currency, interest rate exposures, cash management and the investment of surplus cash.

The Group has significant foreign operations and hence results originate in a number of currencies, particularly in US dollars. As a result, the Group's financial statements, which are reported in sterling, are subject to the effects of foreign exchange rate fluctuations with respect to currency conversions. Currency options are used to reduce currency risk movements on the Group's results, by hedging approximately 50% of each year's budgeted US dollar earnings into sterling. Currency exposure on the balance sheet is, where practical, reduced by financing assets with borrowings in the same currency. Spot and forward foreign exchange contracts are used to cover the net exposure of purchases and sales in non-domestic currencies.

Critical Accounting Policies

The Group accounts are prepared using accounting policies in accordance with IFRS.

The preparation of these accounts require the use of estimates, judgements and assumptions that affect the reported amount of assets, liabilities, revenue and expenses and the disclosure of contingent assets and liabilities. Directors' estimates are based on historical experience, consultation with experts and other methods that they believe are reasonable and appropriate.

Retirement Benefits

Actuarial Assumptions:

	2011	2010
Rate of inflation	3.2%	3.6%
Discount rate	4.7%	5.4%
Expected future lifetime (years) - male	24.3	24.1
Expected future lifetime (years) - female	25.8	25.7

Expected future lifetime is the number of years a 65 year old is expected to live based on current mortality tables.

The Group operates a defined benefit pension scheme in the UK, which was closed to new entrants with effect from 31 December 2002, as well as a number of defined contribution schemes within the Group. The defined benefit scheme is accounted for under IAS 19 and the main actuarial assumptions used are shown in the table above.

Held for Sale and Discontinued Operations

The Group is currently in active negotiations to sell the Field Aviation business. The Directors took the view in preparing the June 2011 half year financial statements that the business was available for sale in its current condition and that it was highly probable a sale would occur within 12 months. The Directors remain of this opinion at 31 December 2011.

Amortisation and Exceptional items

In presenting its income statement, the Group identifies the results before amortisation and exceptional items, which is the basis on which the Directors assess the business in internal reporting. In the Directors' view this is necessary to get a clear understanding of the underlying performance of the business.

Property, Plant and Equipment and Other Intangible Assets

The Group's property, plant and equipment and other intangible assets are subject to annual rates of depreciation intended to spread the cost of the assets over their estimated service life. These rates are regularly reviewed. In addition if, in management's judgement, events or circumstances indicate a potential impairment may have occurred, then a review of the carrying value of the asset will be carried out.

Goodwill

The carrying value of goodwill held on the balance sheet is reviewed for impairment at least annually. The review compares the carrying value with the estimated future cash flows from the business unit to which the goodwill relates. The cash flows are based on management's view of future trading prospects. Any shortfall identified is treated as an impairment and written off.

Taxation

The effective tax rate for the full year is 28% and is the combined rate arising from the regional mix of Group results. The rate also takes into account the estimated future utilisation of tax losses and the agreements with regional tax authorities of corporate tax computations.

Deferred Tax

Deferred tax assets and liabilities are recorded within the financial statements at 31 December 2011 at £20.5m and £35.3m respectively. These balances are derived from assumptions which include the future utilisation of trading losses and provisions at assumed tax rates.

Share-based Payments

The estimated cost of grants and awards of equity instruments to Group employees is spread evenly over the vesting period.

Provisions

Provisions amounting to £60.5m are held on balance sheet at the year end. These are based on Directors' estimates of the future cost of current obligations.

Principal Risks and Uncertainties

The Group has an established risk management monitoring and review process described in the Corporate Governance Report of the Annual Report and Accounts 2011. The process requires all businesses to identify, evaluate and monitor risks and take steps to reduce, eliminate or manage the risk. Group risks are formally reviewed by the Board at least three times a year and are discussed at every Board meeting. The principal risks identified through this process that Hunting is exposed to, which could have a material adverse impact are listed below, together with the steps the Group has taken to mitigate against these risks. Some arise from the specific activities undertaken by the Group whereas others are common to many international manufacturing companies.

Risks Specific to the Nature of Hunting Group Businesses

Product Quality and Reliability

Product quality and reliability is critical to the Group's reputation with its customers.

Quality assurance standards are monitored, measured and regulated within the Group under the authority of a Quality Assurance Director, who reports directly to the Chief Executive.

Acquisitions and Capital Investment

Acquisitions are an integral part of the continuing Group's strategy of expansion and development. While recent new acquisitions to the Group have integrated well, the Board is conscious of the potential disruption to both the Group and acquire, of an acquisition process and subsequent integration.

The Board is actively involved in monitoring, approving and assessing acquisitions through post acquisition appraisals to mitigate the risk of poor investment decisions. All acquisitions require Board approval prior to commitment.

The Group continues to seek opportunities for organic growth and maintains an active capital investment programme. The programme encompasses investments in new territories, buildings, production equipment, rental equipment and IT systems. There is a range of risks involved in such programmes, including poor financial returns, management distraction, facility upheaval and risk of IT systems failure.

The Board and senior management follow a rigorous process of approving, managing and monitoring capital investments along with planning for contingencies. All capital expenditure above discretionary limits requires Board approval prior to commitment.

Shale Drilling

The Group is increasingly providing products that serve the oil and gas shale drilling industry, particularly following the recent acquisition of Titan. There may be considerable future resistance to further oil and gas shale exploration and development from significant sections of the public, and a drilling moratorium or new laws and regulations may unfavourably impact the industry.

The Board monitors public and political opinion and maintains an awareness of the potential for changes to legislation especially with regard to the US where the Group is mainly exposed.

Raw Material Commodity Prices

Although not under the Group's control, a material movement in oil or gas commodity prices could impact demand for the Group's products and services.

Working capital and in particular inventory levels are closely managed to mitigate against exposure to commodity price movement.

Relationships with Key Customers

The Group's success is defined by relationships with its key customers. A material reduction in orders from a major customer, whether through competitive action, contractual dispute, business consolidation or change in strategy could impact the Group's financial performance and prospects. The Group is also reliant upon the conduct of its customers, given its products are exported by those customers across the world and used in a range of environments, including deep sea exploration and production. Senior management maintain close relationships with key customers and seek to maintain the highest level of service to preserve Hunting's reputation for quality.

Other Risks Common to International Manufacturing Businesses

Fluctuation in Currency Exchange Rates

The Group has significant overseas operations, hence results are denominated in a variety of currencies. As a result, the Group's financial statements, which are reported in sterling, are subject to the effects of foreign exchange rate fluctuations with respect to currency conversions.

The Group maintains an active strategy of financial hedging to mitigate such risk, subject to the availability of suitable products at the right cost.

Effective control over subsidiaries

Group subsidiaries operate within a control framework with a degree of autonomy vested in local management. The operations of subsidiaries are subject to regular checking by management through board and management meetings, regular reporting and contact together with external and internal audit.

Key Executives

The Group is highly reliant on the continued service of its key executives and senior management, who possess commercial, engineering, technical and financial skills that are critical to the success of the Group. Remuneration packages are regularly reviewed to ensure they are remunerated in line with market rates. External consultants are engaged to provide guidance on best practice.

Failure to retain suitably qualified individuals, or to attract and retain strong management and technical staff in the future, could have an adverse effect upon the Group and the results of its operations. Senior management continually reviews the availability of the necessary skills within the Group and seeks to find suitable staff where they feel there is vulnerability.

Economics and Geopolitics

The economic and political environment in the geographic areas in which the Group operates impacts demand for energy and therefore the Group's range of products and services.

Management and the Board closely monitor trading results, forecasts, political developments and projected economic trends in order to match capacity to demand and, where possible, minimise the impact of adverse trends on the Group. In addition overheads are monitored regularly to ensure the cost base is actively managed.

Health, Safety and Environmental ("HS&E")

The Group is subject to a number of HS&E laws and regulations that affect its operations, facilities and products in each of the jurisdictions in which it operates. The Group is committed to operating in compliance with all HS&E laws and regulations relating to its products, operations and business activities. However, there is a risk that it may have to incur unforeseen expenditures to cover HS&E liabilities, to maintain compliance with current or future HS&E laws and regulations or to undertake any necessary remediation.

It is difficult to estimate with any reasonable certainty the future impact of HS&E matters, including potential liabilities, due to a number of factors and especially the lengthy time intervals often involved in resolving them. There is regular HS&E compliance reporting to the Board.

Dennis Proctor

Chief Executive

Peter Rose

Finance Director

8 March 2012

Statement of Directors' Responsibility

The Directors confirm that the 2011 Annual Report and Accounts, which will be issued on 15 March 2012, complies with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority in respect of the requirement to produce an annual financial report.

The Directors' confirm that to the best of their knowledge and belief:

·	the financial statements have been prepared in accordance with International Financial Reporting Statements ("IFRSs") as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and profit of the Group and the loss of the Company; and
·	the Business Review includes a fair review of the development and performance of the Group's operations and the position of the Group and the Company, together with a description of the principal risks and uncertainties they face.

A list of current Directors is maintained on the Hunting PLC website: www.huntingplc.com     

By order of the Board

Peter Rose

Finance Director

8 March 2012

Consolidated Income Statement

For the Year ended 31 December 2011

								Restated
					Before amortisation and exceptional items 2011	Amortisation and exceptional items (note 3) 2011	Total 2011	Before amortization and exceptional items 2010	Amortisation and exceptional items (note 3) 2010	Total 2010
				Notes	£m	£m	£m	£m	£m	£m
Revenue				2	608.8	-	608.8	423.3	-	423.3
Cost of sales					(428.2)	(13.9)	(442.1)	(305.6)	(8.4)	(314.0)
Gross profit					180.6	(13.9)	166.7	117.7	(8.4)	109.3
Other operating income					3.3	-	3.3	3.5	-	3.5
Operating expenses					(102.9)	(26.1)	(129.0)	(76.2)	(5.6)	(81.8)
Profit from continuing operations				2	81.0	(40.0)	41.0	45.0	(14.0)	31.0
Finance income					3.5	-	3.5	3.8	-	3.8
Finance expense					(5.7)	(1.0)	(6.7)	(2.8)	-	(2.8)
Share of associates' post-tax profits					1.0	-	1.0	1.0	-	1.0
Profit before tax from continuing operations					79.8	(41.0)	38.8	47.0	(14.0)	33.0
Taxation				5	(22.5)	15.2	(7.3)	(14.0)	4.1	(9.9)
Profit for the year from continuing operations					57.3	(25.8)	31.5	33.0	(9.9)	23.1
Profit for the year from discontinued operations				6	0.7	50.0	50.7	5.8	(4.6)	1.2
Profit for the year					58.0	24.2	82.2	38.8	(14.5)	24.3
Profit attributable to:
Owners of the parent					54.9	24.2	79.1	36.3	(14.5)	21.8
Non-controlling interests					3.1	-	3.1	2.5	-	2.5
					58.0	24.2	82.2	38.8	(14.5)	24.3
Earnings per share
Basic	-		from continuing operations	7	39.6p		20.7p	23.1p		15.6p
	-		from discontinued operations	7	0.5p		37.0p	4.5p		1.0p
Group total					40.1p		57.7p	27.6p		16.6p
Diluted		-	from continuing operations	7	38.7p		20.3p	22.7p		15.4p
		-	from discontinued operations	7	0.5p		36.2p	4.4p		0.9p
Group total					39.2p		56.5p	27.1p		16.3p

Consolidated Statement of Comprehensive Income

For the Year ended 31 December 2011

		2011	2010
		£m	£m
Profit for the year		82.2	24.3
Other comprehensive income after tax:
Exchange adjustments		6.6	7.2
Fair value gains and losses:
-     gain on available for sale financial investment arising during the year		35.3	15.3
-     gains transferred to income statement on redemption of available for sale financial investment		(53.2)	-
-     gains originating on cash flow hedges arising during the year		4.0	0.5
-     losses (gains) transferred to income statement on disposal of cash flow hedges		0.8	(0.1)
-     gains transferred to goodwill on disposal of cash flow hedges		(5.5)	-
Actuarial losses on defined benefit pension schemes		(1.3)	(2.0)
Other comprehensive (expense) income after tax		(13.3)	20.9
Total comprehensive income for the year		68.9	45.2
Total comprehensive income attributable to:
Owners of the parent		65.1	42.8
Non-controlling interests		3.8	2.4
		68.9	45.2

Consolidated Balance Sheet

At 31 December 2011

			Restated
		2011	2010
	Notes	£m	£m
ASSETS
Non-current assets
Property, plant and equipment	8	231.2	154.1
Goodwill		316.5	100.6
Other intangible assets	10	220.8	22.6
Investments in associates		5.9	13.0
Available for sale investments	11	0.2	45.1
Retirement benefit assets		4.8	5.5
Trade and other receivables		2.2	3.6
Deferred tax assets		20.5	8.6
		802.1	353.1
Current assets
Inventories		232.4	130.7
Trade and other receivables		174.2	104.3
Investments		2.4	2.5
Cash and cash equivalents	12	68.8	268.7
Assets classified as held for sale		13.6	-
		491.4	506.2
LIABILITIES
Current liabilities
Trade and other payables		146.8	106.5
Current tax liabilities		18.9	17.5
Borrowings	12	43.2	56.7
Provisions		42.3	39.8
Liabilities classified as held for sale		8.5	-
		259.7	220.5
Net current assets		231.7	285.7
Non-current liabilities
Borrowings	12	248.3	2.3
Deferred tax liabilities		35.3	25.6
Provisions		18.2	16.3
		301.8	44.2
Net assets		732.0	594.6
Equity attributable to owners of the parent
Share capital		36.6	33.1
Share premium		87.1	85.8
Other components of equity		41.1	52.2
Retained earnings		550.4	409.3
		715.2	580.4
Non-controlling interests		16.8	14.2
Total equity		732.0	594.6

The balance sheet at 31 December 2010 has been restated to recognise additional goodwill and other payables of £0.3m on the acquisition of Innova on 3 September 2010. The balance sheet at 1 January 2010 has not been presented, as there was no impact on the previous year's numbers from this adjustment.

Consolidated Statement of Changes in Equity

	Year ended 31 December 2011
	Share capital	Share premium	Other components of equity	Retained earnings	Total	Non-controlling interests	Total equity
	£m	£m	£m	£m	£m	£m	£m
At 1 January	33.1	85.8	52.2	409.3	580.4	14.2	594.6
Comprehensive income
Profit for the year	-	-	-	79.1	79.1	3.1	82.2
Other comprehensive income
Exchange adjustments	-	-	5.9	-	5.9	0.7	6.6
Fair value gains and losses:
-    gain on available for sale financial investment arising during the year	-	-	35.3	-	35.3	-	35.3
-    gains transferred to income statement on redemption of available for sale financial investment	-	-	(53.2)	-	(53.2)	-	(53.2)
-    gains originating on cash flow hedges arising during the year	-	-	4.0	-	4.0	-	4.0
-    losses transferred to income  statement on disposal of cash flow hedges	-	-	0.8	-	0.8	-	0.8
-    gains transferred to goodwill on disposal of cash flow hedges	-	-	(5.5)	-	(5.5)	-	(5.5)
Actuarial losses on defined benefit pension schemes	-	-	-	(1.3)	(1.3)	-	(1.3)
Total other comprehensive income (expense)	-	-	(12.7)	(1.3)	(14.0)	0.7	(13.3)
Total comprehensive income	-	-	(12.7)	77.8	65.1	3.8	68.9
Transactions with owners
Dividends	-	-	-	(16.8)	(16.8)	(1.2)	(18.0)
Shares issued
-    share option schemes and awards	0.2	1.3	-	-	1.5	-	1.5
-    share placing	3.3	-	82.1	-	85.4	-	85.4
-    share placing costs	-	-	(1.9)	-	(1.9)	-	(1.9)
Treasury shares
-    purchase of treasury shares	-	-	-	(1.1)	(1.1)	-	(1.1)
-    disposal of treasury shares	-	-	-	0.2	0.2	-	0.2
Share options and awards
-    value of employee services	-	-	2.2	-	2.2	-	2.2
-    discharge	-	-	(0.6)	0.6	-	-	-
-    taxation	-	-	-	0.2	0.2	-	0.2
Transfer between reserves	-	-	(80.2)	80.2	-	-	-
Total transactions with owners	3.5	1.3	1.6	63.3	69.7	(1.2)	68.5
At 31 December	36.6	87.1	41.1	550.4	715.2	16.8	732.0

	Year ended 31 December 2010
	Share capital	Share premium	Other components of equity	Retained earnings	Total	Non-controlling interests	Total equity
	£m	£m	£m	£m	£m	£m	£m
At 1 January	33.1	90.2	28.0	397.2	548.5	13.3	561.8
Comprehensive income
Profit for the year	-	-	-	21.8	21.8	2.5	24.3
Other comprehensive income
Exchange adjustments	-	-	7.3	-	7.3	(0.1)	7.2
Fair value gains and losses:
-    gain on available for sale financial investment arising during the year	-	-	15.3	-	15.3	-	15.3
-    gains originating on cash flow hedges arising during the year	-	-	0.5	-	0.5	-	0.5
-    gains transferred to income  statement on disposal of cash flow hedges	-	-	(0.1)	-	(0.1)	-	(0.1)
Actuarial losses on defined benefit pension schemes	-	-	-	(2.0)	(2.0)	-	(2.0)
Total other comprehensive income	-	-	23.0	(2.0)	21.0	(0.1)	20.9
Total comprehensive income	-	-	23.0	19.8	42.8	2.4	45.2
Transactions with owners
Dividends	-	-	-	(14.1)	(14.1)	(1.5)	(15.6)
Shares issued
-    share option schemes and awards	-	0.7	-	-	0.7	-	0.7
Treasury shares
-    purchase of treasury shares	-	-	-	(0.4)	(0.4)	-	(0.4)
-    disposal of treasury shares	-	-	-	0.2	0.2	-	0.2
-    taxation	-	-	-	0.1	0.1	-	0.1
Share options and awards
-    value of employee services	-	-	1.6	-	1.6	-	1.6
-    discharge	-	-	(0.4)	0.4	-	-	-
-    taxation	-	-	-	1.0	1.0	-	1.0
Transfer between reserves	-	(5.1)	-	5.1	-	-	-
Total transactions with owners	-	(4.4)	1.2	(7.7)	(10.9)	(1.5)	(12.4)
At 31 December	33.1	85.8	52.2	409.3	580.4	14.2	594.6

Consolidated Statement of Cash Flows

For the Year ended 31 December 2011

		2011	Restated 2010
		£m	£m
Operating activities
Continuing operations:
Profit from operations		41.0	31.0
Depreciation, amortisation and impairment		36.2	28.5
Loss on disposal of property, plant and equipment		1.4	1.7
Proceeds from disposal of property, plant and equipment held for rental		3.1	1.8
Purchase of property, plant and equipment held for rental		(20.2)	(10.1)
Increase in inventories		(14.1)	(2.8)
Increase in receivables		(38.0)	(33.6)
Increase (decrease) in payables		33.4	(2.5)
Decrease in provisions		(0.1)	(3.6)
Taxation paid		(15.5)	(3.2)
Other non-cash flow items		1.1	1.5
Discontinued operations		2.0	(5.6)
Net cash inflow from operating activities		30.3	3.1
Investing activities
Continuing operations:
Interest received		2.3	3.1
Dividends received from associates		2.3	0.2
Purchase of subsidiaries		(593.6)	(81.1)
Net cash acquired with subsidiaries		26.9	0.7
Proceeds from disposal of subsidiaries		87.5	-
Indemnity payments in respect of disposed subsidiaries		-	(25.2)
Loans from associates		0.1	0.4
Loans from associates repaid		(0.6)	(0.2)
Loans to associates		(0.6)	-
Proceeds from disposal of property, plant and equipment		1.7	1.0
Purchase of property, plant and equipment		(37.8)	(38.9)
Purchase of intangibles		(0.3)	(0.2)
Receipt (purchase) of bank deposit investments		0.1	(2.5)
Discontinued operations		0.2	(0.3)
Net cash outflow from investing activities		(511.8)	(143.0)
Financing activities
Continuing operations:
Interest and bank fees paid		(9.9)	(1.5)
Equity dividends paid		(16.8)	(14.1)
Non-controlling interest dividend paid		(1.2)	(1.5)
Share capital issued		86.8	0.7
Costs of share issue		(1.9)	-
Purchase of treasury shares		(1.1)	(0.4)
Disposal of treasury shares		-	0.2
Capital element of finance leases		-	(0.2)
Proceeds from new borrowings		266.7	1.7
Repayment of borrowings		(16.3)	-
Discontinued operations		-	(0.1)
Net cash inflow (outflow) from financing activities		306.3	(15.2)
Net cash outflow in cash and cash equivalents		(175.2)	(155.1)
Cash and cash equivalents at the beginning of the year		212.0	365.8
Effect of foreign exchange rates		0.2	1.3
Classified as held for sale		(1.9)	-
Cash and cash equivalents at the end of the year		35.1	212.0
Cash and cash equivalents and bank overdrafts at the end of the year comprise:
Cash and cash equivalents (note 13)		68.8	268.7
Bank overdrafts included in borrowings (note 13)		(33.7)	(56.7)
		35.1	212.0

Notes

1.  Basis of Accounting

The financial statements have been prepared in accordance with the Companies Act 2006 and those International Financial Reporting Standards ("IFRS") as adopted by the European Union and IFRIC Interpretations. The financial statements have been prepared on a going concern basis under the historical cost convention as modified by the revaluation of available for sale financial assets and those financial assets and financial liabilities held for trading. The comparative amounts for the year ended 31 December 2010 have been restated to reflect Field Aviation as a discontinued operation.

The presentation of the Group's intangible asset amortisation charge has been changed such that the charge is separately presented with exceptional items in the income statement. The 2010 income statement has been re-presented to reflect this change.

The financial information set out below does not constitute the Company's statutory accounts for the years ended 31 December 2011 or 31 December 2010, but is derived from those accounts. Statutory accounts for 2010 have been delivered to the Registrar of Companies and those for 2011 will be delivered in due course. The auditors have reported on those accounts; their reports were unqualified, did not draw attention to any matter by way of emphasis without qualifying their report and did not contain statements under s498(2) or (3) Companies Act 2006. Whilst the financial information included in this preliminary announcement has been computed in accordance with International Financial Reporting Standards this announcement does not itself contain sufficient information to comply with IFRS.

Adoption of New Standards, Amendments and Interpretations

The following new standards, amendments and interpretations became effective for and were adopted during the year ended 31 December 2011:

·      IAS 24 (revised) Related Party Disclosures

·      Amendment to IFRIC 14 - Prepayments of a Minimum Funding Requirement

·      Improvements to IFRSs - May 2010

Although the adoption of these standards, amendments and interpretations represent a change in accounting policy, comparative figures for 2010 have not been restated for these, as the changes do not impact the financial performance or position of the Group.

Standards, Amendments and Interpretations Effective Subsequent to the Year End

·      IFRS 9 Financial Instruments*

·      IFRS 10 Consolidated Financial Statements*

·      IFRS 11 Joint Arrangements*

·      IFRS 12 Disclosure of Interests in Other Entities*

·      IFRS 13 Fair Value Measurement*

·      IAS 27 (revised) Separate Financial Statements*

·      IAS 28 (revised) Investments in Associates and Joint Ventures*

·      Amendment to IFRS 7 Financial Instruments: Disclosures - Transfers of Financial Assets

·      Amendment to IAS 12 - Deferred tax: Recovery of Underlying Assets*

·      Amendment to IAS 1 - Presentation of Items of Other Comprehensive Income*

·      Amendments to IAS 19 Employee Benefits*

* Not yet endorsed by the European Union.

It is not anticipated that any of the new requirements will significantly impact the Group's results or financial position.

2.  Segmental Reporting

The Group reports on eight operating segments, three of which are discontinued operations, in its internal management reports, which are used to make strategic decisions. The Group's segments are strategic business units that offer different products and services to international oil and gas companies and the aviation and shipping sectors.

The discontinued operations comprise Field Aviation, which was classified as held for sale on 30 June 2011, Gibson Energy, which was sold in 2008, and Hunting Energy France, which was sold in 2009. Gibson Energy and Hunting Energy France continue to generate accounting entries due to sale related transactions and are required for reconciliation purposes.

The Well Construction segment provides products and services used by customers for the drilling phase of oil and gas wells, along with associated equipment used by the underground construction industry for telecommunication infrastructure build-out and precision machining services for the energy, aviation and power generation sectors.

The Well Completion segment provides products and services used by customers for the completion phase of oil and gas wells.

The Well Intervention segment provides products and services used by customers for the production, maintenance and restoration of existing oil and gas wells.

The Exploration and Production segment includes the Group's oil and gas exploration and production activities in the Southern US and offshore Gulf of Mexico.

Gibson Shipbrokers is a global energy shipping broker headquartered in London. Crude oil, fuel oil and bio fuels are actively shipped along with dry bulk such as coal, iron ore and grain. Gibson Shipbrokers is also involved in the shipping of liquefied petroleum gas ("LPG"), petrochemicals and liquefied natural gas ("LNG").

Field Aviation is an aircraft service organisation providing modification, installation, distribution, maintenance and manufacturing services for regional, business and government operators worldwide. Field Aviation has been presented as a discontinued operation and its results have been restated to exclude central costs previously allocated to the division. All central costs have been allocated to continuing operations.

The following tables present the results of the operating segments on the same basis as that used for internal reporting purposes to the Chief Operating Decision Maker.

The Group measures the performance of its operating segments based on revenue and profit from operations, before any exceptional items and the amortisation of intangible assets. Accounting policies used for segment reporting reflect those used for the Group. Inter-segment sales are priced on an arm's length basis. Costs and overheads incurred centrally are apportioned to the continuing operating segments on the basis of time attributed to those operations by senior executives.

Results from operations

	Year ended 31 December 2011
	Total gross revenue	Inter-segmental revenue	Total revenue	Profit from operations before amortisation and exceptional items	Amortisation and exceptional items	Total
	£m	£m	£m	£m	£m	£m
Continuing operations:
Hunting Energy Services
Well Construction	200.8	(6.3)	194.5	28.5	(7.8)	20.7
Well Completion	340.9	(13.7)	327.2	41.2	(19.8)	21.4
Well Intervention	52.9	-	52.9	7.9	(0.6)	7.3
Exploration and Production	8.2	-	8.2	1.7	(1.0)	0.7
	602.8	(20.0)	582.8	79.3	(29.2)	50.1
Gibson Shipbrokers	26.0	-	26.0	1.7	-	1.7
Total from continuing operations	628.8	(20.0)	608.8	81.0	(29.2)	51.8
Exceptional items not apportioned to business segments*				-	(10.8)	(10.8)
Profit from continuing operations				81.0	(40.0)	41.0
Net finance expense				(2.2)	(1.0)	(3.2)
Share of associates' post-tax profits				1.0	-	1.0
Profit before tax from continuing operations				79.8	(41.0)	38.8
Discontinued operations:
Gibson Energy	-	-	-	-	55.0	55.0
Hunting Energy France	-	-	-	-	0.1	0.1
Field Aviation	25.9	-	25.9	0.8	-	0.8
Total from discontinued operations	25.9	-	25.9	0.8	55.1	55.9
Net finance income				0.2	-	0.2
Taxation				(0.3)	(5.1)	(5.4)
Profit from discontinued operations				0.7	50.0	50.7

* Exceptional items not apportioned to business segments include acquisition costs and head office property provisions.

	Restated
	Year ended 31 December 2010
	Total gross revenue	Inter-segmental revenue	Total revenue	Profit from operations before exceptional items	Amortisation and exceptional items	Total
	£m	£m	£m	£m	£m	£m
Continuing operations:
Hunting Energy Services
Well Construction	116.5	(5.2)	111.3	9.5	(1.7)	7.8
Well Completion	229.6	(5.4)	224.2	23.2	-	23.2
Well Intervention	58.8	(0.1)	58.7	10.1	(0.8)	9.3
Exploration and Production	6.5	-	6.5	1.3	(8.4)	(7.1)
	411.4	(10.7)	400.7	44.1	(10.9)	33.2
Gibson Shipbrokers	22.6	-	22.6	0.9	-	0.9
Total from continuing operations	434.0	(10.7)	423.3	45.0	(10.9)	34.1
Exceptional items not apportioned to business segments*				-	(3.1)	(3.1)
Profit from continuing operations				45.0	(14.0)	31.0
Net finance income				1.0	-	1.0
Share of associates' post-tax profits				1.0	-	1.0
Profit before tax from continuing operations				47.0	(14.0)	33.0
Discontinued operations:
Gibson Energy	-	-	-	-	(4.5)	(4.5)
Hunting Energy France	-	-	-	-	(0.1)	(0.1)
Field Aviation	38.3	-	38.3	5.2	-	5.2
Total from discontinued operations	38.3	-	38.3	5.2	(4.6)	0.6
Net finance income				0.3	-	0.3
Taxation				0.3	-	0.3
Profit from discontinued operations				5.8	(4.6)	1.2

Field Aviation's results for 31 December 2010 have been re-presented as discontinued operations and its results have been restated to exclude central costs previously allocated to the division.

Following a change in the Group's measure of performance of its operating segments, the above information has been re-presented to show profit from operations before amortisation and exceptional items. All central costs have been allocated to continuing operations.

* Exceptional items not apportioned to business segments include acquisition costs and head office property provisions.

Other segment items

	2011				Restated 2010
	Depreciation	Amortisation of intangible assets	Impairment		Depreciation	Amortisation of intangible assets	Impairment
	£m	£m	£m		£m	£m	£m
Continuing operations:
Hunting Energy Services
Well Construction	7.7	5.2	-		6.2	1.7	0.5
Well Completion	7.8	6.4	1.5		5.6	-	-
Well Intervention	2.7	0.6	-		2.8	0.8	-
Exploration and Production	3.1	-	1.0		2.3	-	8.4
	21.3	12.2	2.5		16.9	2.5	8.9
Gibson Shipbrokers	0.2	-	-		0.2	-	-
Total - continuing operations	21.5	12.2	2.5		17.1	2.5	8.9
Discontinued operations:
Field Aviation	0.2	-	-		0.5	-	-

Geographical information

The Group mainly operates in five geographical areas. The UK is the domicile of Hunting PLC. The table below shows revenues from external customers, which are attributed to individual countries on the basis of the location in which the sale originated. Information on the location of non-current assets is also presented below. Non-current assets exclude defined benefit assets and deferred tax assets.

	External revenue			Non-current assets
		Restated			Restated
	2011	2010		2011	2010
	£m	£m		£m	£m
Continuing operations:
UK	134.2	131.3		52.7	95.5
USA	314.8	182.7		678.2	195.9
Canada	53.1	41.4		24.5	21.7
Rest of Europe	15.2	11.3		3.2	2.8
Singapore	82.4	56.1		10.1	20.8
Other	9.1	0.5		8.1	-
	608.8	423.3		776.8	336.7
Discontinued operations:
Canada	25.9	38.3		-	2.3
	634.7	461.6		776.8	339.0
Unallocated assets:
Deferred tax assets				20.5	8.6
Retirement benefit assets				4.8	5.5
Total non-current assets				802.1	353.1

Non-current assets in 2010 have been restated for the additional goodwill of £0.3m recognised on the acquisition of Innova on 3 September 2010. The additional goodwill has been included within US non-current assets. Field Aviation's non-current assets for 2010 have been re-presented as discontinued operations.

Major Customer Information

The Group had no customers (2010 - nil) who accounted for more than 10% of the Group's external revenue during the year.

3.  Amortisation and Exceptional Items

	2011	2010
	£m	£m
Dry hole costs	-	3.1
Impairment of property, plant and equipment	1.0	5.3
Fair value uplift to inventories charge	12.9	-
Charged to cost of sales	13.9	8.4
Amortisation of intangible assets	12.2	2.5
Acquisition costs	8.6	3.1
Retention bonuses for key employees of acquired businesses	1.6	-
Impairment of goodwill	1.5	-
Property provisions	2.2	0.1
Other exceptional items	-	(0.1)
Charged to operating expenses	26.1	5.6
Amortisation and exceptional items	40.0	14.0
Unamortised loan facility fees written off - charged to finance expense	1.0	-
Taxation on amortisation and exceptional items (note 5)	(15.2)	(4.1)
Total from continuing operations	25.8	9.9

The impairment charge of £1.0m (2010 - £5.3m) relates to the write down of oil and gas development expenditure, largely due a fall in forecast natural gas prices during the year. The recoverable amount of oil and gas development expenditure is based on value in use. These calculations use discounted pre-tax cash flow projections based on estimated oil and gas reserves, future production and income attributable to such reserves. Cash flows are based on reserve production lives varying from one to fifteen years. Cash flows are discounted using a pre-tax rate of 10% (2010 - 10%). The prices of oil and natural gas are derived from published futures prices, with the long-term average oil price assumed to be US$96.10 bbl. (2010 - US$90.97 bbl.) and the long-term average gas price at US$4.07 mcf (per 1,000 cubic feet). A decline in the long-term average gas price from US$5.10 mcf in 2010, together with a review of oil and gas reserves, resulted in an impairment impact of £1.0m in the year.

Under IFRS, at acquisition, inventory values are adjusted from their carrying values (generally at cost of production) to a fair value, which includes profit attributable to the degree of completion of the inventory. This resulted in a fair value uplift totalling £23.6m for the four acquisitions. This uplift is charged to the income statement as the inventory is sold, thereby reducing reported operating profits. In 2011, the charge was £12.9m.

A £1.6m charge for bonuses for key employee retention, relating to the acquisitions, has been recognised.

Following a downturn of business activity levels in 2011, a goodwill impairment charge of £1.5m (2010 - £nil) has been recognised in relation to PT SMB Industri.

Following a reassessment of its property provisions, the Group has recognised an additional provision of £2.2m for onerous lease obligations as a result of additional remediation and dilapidation costs and the impact of the economic downturn on the recoverability of rental income.

Unamortised loan facility fees of £1.0m (2010 - £nil) were written off to the income statement when the £120.0m revolving credit facility was terminated early and replaced with the £375.0m revolving credit facility, following the acquisition of Titan.

 4.  EBITDA

		Restated
	2011	2010
	£m	£m
Total profit from continuing operations	41.0	31.0
Add: Amortisation and exceptional items (note 3)	40.0	14.0
Add: Depreciation	21.5	17.1
Add: Non-exceptional impairment	-	0.5
EBITDA	102.5	62.6

"EBITDA" is a non-GAAP measure and is defined as pre-exceptional profit from continuing operations before interest, tax, depreciation, amortisation and impairment to property, plant and equipment. EBITDA is used by the Board as a measure of performance of the Group.

5.  Taxation

	2011				Restated 2010
	Before amortisation and exceptional items	Amortisaton and exceptional items	Total		Before amortisation and exceptional items	Amortisaton and exceptional items	Total
	£m	£m	£m		£m	£m	£m
Current tax
-  current year expense	26.9	(13.0)	13.9		14.8	(3.5)	11.3
-  adjustment in respect of prior years	(3.3)	-	(3.3)		0.2	-	0.2
	23.6	(13.0)	10.6		15.0	(3.5)	11.5
Deferred tax
-  origination and reversal of temporary differences	(1.0)	(2.2)	(3.2)		(1.3)	(0.6)	(1.9)
-  previously unrecognised tax losses and credits	-	-	-		0.3	-	0.3
-  change in tax rate	(0.1)	-	(0.1)		-	-	-
	(1.1)	(2.2)	(3.3)		(1.0)	(0.6)	(1.6)
Total tax charged to the income statement - continuing operations	22.5	(15.2)	7.3		14.0	(4.1)	9.9

The weighted average applicable tax rate for continuing operations before amortisation and exceptional items is 28% (2010 - 30%). The lower rate in 2011 is mainly due to the weighting of profits in lower tax jurisdictions and a reduced UK corporate tax rate.

The tax credit in the income statement for amortisation and exceptional items principally comprises £3.8m (2010 - £0.6m) for amortisation, £0.3m (2010 - £2.8m) for the impairment of oil and gas development expenditure, £2.5m (2010 - £0.4m) for acquisition costs, £0.5m (2010 - £0.3m) for property provisions, £0.6m (2010 - £nil) for retention bonuses, £0.3m (2010 - £nil) for unamortised loan facility fees and £4.9m (2010 - £nil) for the fair value uplift to inventories charge.

A number of changes to the UK corporation tax system were announced in the March 2011 Budget Statement, whereby from 1 April 2011 the main rate of corporation tax has been reduced to 26%. The impact of this change has been recognised in the year ended 31 December 2011. Further reductions to the main rate are proposed to reduce the rate by 1% per annum to 23% by 1 April 2014. The changes are not expected to have a material impact on the Group's deferred tax balances.

6.  Discontinued Operations

The Group continues to classify Field Aviation as held for sale, as sale negotiations are at an advanced stage such that it is highly probable that the company will be sold within twelve months of the initial classification of held for sale on 30 June 2011. Field Aviation is considered to be a major operation of Hunting and as such the results have been presented as a discontinued operation.

The sale of Gibson Energy Inc., Hunting's midstream services operation, was completed on 12 December 2008. On 22 December 2009, the Group sold Hunting Energy France SA, its French-based business.

The results from discontinued operations comprise the following:

	2011					Restated 2010
	Field Aviation	Hunting Energy France	Gibson Energy	Total		Field Aviation	Hunting Energy France	Gibson Energy	Total
	£m	£m	£m	£m		£m	£m	£m	£m
Trading results
Revenue	25.9	-	-	25.9		38.3	-	-	38.3
Cost of sales	(23.9)	-	-	(23.9)		(30.7)	-	-	(30.7)
Gross profit	2.0	-	-	2.0		7.6	-	-	7.6
Other operating income	2.4	-	-	2.4		1.9	-	-	1.9
Operating expenses	(3.6)	-	-	(3.6)		(4.3)	-	-	(4.3)
Profit from operations	0.8	-	-	0.8		5.2	-	-	5.2
Finance income	0.2	-	-	0.2		0.4	-	-	0.4
Finance expense	-	-	-	-		(0.1)	-	-	(0.1)
Profit before tax	1.0	-	-	1.0		5.5	-	-	5.5
Taxation	(0.3)	-	-	(0.3)		(1.6)	-	1.9	0.3
Profit for the year	0.7	-	-	0.7		3.9	-	1.9	5.8
Gain on disposal:
Gain (loss) on sale before tax	-	0.1	55.0	55.1		-	(0.1)	(4.5)	(4.6)
Tax on gain	-	-	(5.1)	(5.1)		-	-	-	-
Gain (loss) on sale after tax	-	0.1	49.9	50.0		-	(0.1)	(4.5)	(4.6)
Total profit from discontinued operations	0.7	0.1	49.9	50.7		3.9	(0.1)	(2.6)	1.2

Additional provisions, together with foreign exchange gains, of £3.3m have been recognised on the Canadian dollar denominated tax indemnities given in respect of our former Canadian business, Gibson Energy.

On 15 June 2011, Gibson Energy Inc. redeemed in full the equity warrant issued to Hunting on 12 December 2008. On completion of the sale of Gibson Energy, Hunting agreed to defer payment of C$100.0m of the consideration in return for receipt of the warrant. Between 12 December 2008 and 12 December 2010, the warrant carried a cumulative and compounding annual dividend entitlement at a rate of 12%. Following the announcement to extend the maturity date of the warrant on 10 December 2010, the rate of dividend entitlement on the warrant increased to 13% from 13 December 2010. The total amount paid to Hunting was C$134.6m (£85.3m), which comprises the warrant value of C$100.0m (£63.4m) and the accrued dividend entitlement of C$34.6m (£21.9m). The pre-tax profit on redemption of the warrant is £58.3m. The tax charge of £5.1m relates to tax arising on the profit on redemption of the warrant.

Foreign exchange gains of £0.1m have been recognised in respect of the Euro denominated bond received on the disposal of Hunting Energy France in 2009. The bond was repaid in full on 28 June 2011.

7.  Earnings per Share

Basic earnings per share ("EPS") is calculated by dividing the earnings attributable to Ordinary shareholders by the weighted average number of Ordinary shares outstanding during the year.

For diluted earnings per share, the weighted average number of outstanding Ordinary shares is adjusted to assume conversion of all dilutive potential Ordinary shares. The dilution in respect of share options applies where the exercise price is less than the average market price of the Company's Ordinary shares during the year and the possible issue of shares under the Group's long-term incentive plans.

Reconciliations of the earnings and weighted average number of Ordinary shares used in the calculations are set out below:

		Restated
	2011	2010
	£m	£m
Basic and diluted earnings attributable to Ordinary shareholders
From continuing operations	28.4	20.6
From discontinued operations	50.7	1.2
Total	79.1	21.8
Basic and diluted earnings attributable to Ordinary shareholders before amortisation and exceptional items
From continuing operations	28.4	20.6
Add: amortisation and exceptional items after taxation (note 3)	25.8	9.9
Total for continuing operations	54.2	30.5
From discontinued operations	50.7	1.2
Add: exceptional items after tax	(50.0)	4.6
Total for discontinued operations	0.7	5.8
	millions	millions
Basic weighted average number of Ordinary shares	137.1	131.3
Dilutive outstanding share options	1.4	1.8
Long-term incentive plans	1.6	0.9
Adjusted weighted average number of Ordinary shares	140.1	134.0
	pence	pence
Basic EPS
From continuing operations	20.7	15.6
From discontinued operations	37.0	1.0
	57.7	16.6
Diluted EPS
From continuing operations	20.3	15.4
From discontinued operations	36.2	0.9
	56.5	16.3
Earnings per share before amortisation and exceptional items:
	pence	pence
Basic EPS from continuing operations before amortisation and exceptional items	39.6	23.1
Diluted EPS from continuing operations before amortisation and exceptional items	38.7	22.7
Basic EPS from discontinued operations before amortisation and exceptional items	0.5	4.5
Diluted EPS from discontinued operations before amortisation and exceptional items	0.5	4.4

8.  Property, Plant and Equipment

During 2011, the net book value of property, plant and equipment increased from £154.1m to £231.2m due to additions of £59.6m, acquisitions of £45.4m and foreign exchange gains of £3.3m, offset by disposals of £6.4m, impairment of £1.0m, depreciation of £21.7m and the reclassification of Field Aviation's property, plant and equipment of £2.1m as assets held for sale.

Additions include £18.0m for freehold land and buildings, £3.4m for oil and gas exploration and development and £38.2m for plant, machinery and motor vehicles.

The carrying value of disposals during 2011 comprised of land and buildings of £1.3m and plant, machinery and motor vehicles of £5.1m.

9.  Capital Commitments

Group capital expenditure committed, for the purchase of property, plant and equipment, but not provided for in these financial statements amounted to £10.9m (2010 - £18.3m).

10.  Other Intangible Assets

During 2011, the net book value of other intangible assets increased from £22.6m to £220.8m due to additions of £0.3m, acquisitions of £206.2m and foreign exchange gains of £3.9m offset by amortisation of £12.2m.

Additions include £120.4m for customer relationships acquired as part of the Titan acquisition (note 15). This intangible asset is being amortised over ten years and has a carrying value of £118.7m at 31 December 2011.

11.  Available for Sale Financial Investments

	2011	2010
	£m	£m
At 1 January	45.1	29.8
Fair value gain transferred to equity	40.4	15.3
Redemption of warrant	(85.3)	-
At 31 December	0.2	45.1
The financial assets comprise:
	2011	2010
	£m	£m
Unlisted equity investments	0.2	0.2
Equity warrant	-	44.9
	0.2	45.1

On 15 June 2011, Gibson Energy Inc. redeemed in full the equity warrant issued to Hunting on 12 December 2008. On completion of the sale of Gibson Energy, Hunting agreed to defer payment of C$100.0m of the consideration in return for receipt of the warrant. Between 12 December 2008 and 12 December 2010, the warrant carried a cumulative and compounding annual dividend entitlement at a rate of 12%. Following the announcement to extend the maturity date of the warrant on 10 December 2010, the rate of dividend entitlement on the warrant increased to 13% from 13 December 2010. The total amount paid to Hunting was C$134.6m (£85.3m), which comprises the warrant value of C$100.0m (£63.4m) and the accrued dividend entitlement of C$34.6m (£21.9m). The pre-tax profit on redemption of the warrant is £58.3m. The tax charge of £5.1m relates to tax arising on the profit on redemption of the warrant.

12.  Assets Held for Sale

The assets and liabilities of Field Aviation continue to be presented as held for sale, as sale negotiations are at an advanced stage, such that it is highly probable that the company will be sold within twelve months of the initial classification of held for sale on 30 June 2011. Field Aviation's assets and liabilities are a disposal group and the business is considered to be a discontinued operation, as it represents a major line of business. The disposal of this business will enable Hunting to focus on its core operations.

Field Aviation's assets and liabilities are carried at the lower of carrying amount and fair value less costs to sell at the date of held-for-sale classification. The carrying values of Field Aviation's assets and liabilities at 31 December 2011 are:

	2011
	£m
Assets classified as held for sale
Property, plant and equipment	2.1
Deferred tax assets	0.2
Inventories	2.8
Trade and other receivables	6.3
Cash and cash equivalents	2.0
Current tax assets	0.2
	13.6
Liabilities classified as held for sale
Trade and other payables	8.0
Provisions	0.3
Borrowings	0.1
Deferred tax liabilities	0.1
	8.5

13.  Changes in Net Debt

The analysis below is provided in order to reconcile the movement in borrowings and cash and cash equivalents during the year.

	At 1 January 2011	Cash flow	Exchange movements	Acquisition of subsidiaries*	Amortisation of loan facility fees	Reclassify as held for sale	At 31 December 2011
	£m	£m	£m	£m	£m	£m	£m
Cash and cash equivalents	268.7	(198.2)	0.3	-	-	(2.0)	68.8
Bank overdrafts	(56.7)	23.0	(0.1)	-	-	0.1	(33.7)
	212.0	(175.2)	0.2	-	-	(1.9)	35.1
Investments	2.5	(0.1)	-	-	-	-	2.4
Non-current borrowings	(2.3)	(236.1)	(3.9)	(5.6)	(0.4)	-	(248.3)
Current borrowings	-	(9.0)	(0.3)	(0.2)	-	-	(9.5)
Classified as held for sale	-	-	-	-	-	1.9	1.9
Total net cash (debt)	212.2	(420.4)	(4.0)	(5.8)	(0.4)	-	(218.4)

* Excludes cash and cash equivalents of £26.9m acquired with subsidiaries, which have been included in cash flow.

14.  Dividends Paid

	2011			2010
	Pence per share	£m		Pence per share	£m
Ordinary dividends:
2011 interim paid	4.0	5.8		-	-
2010 final paid	8.3	11.0		-	-
2010 interim paid	-	-		3.7	4.9
2009 second interim paid*	-	-		7.0	9.2
	12.3	16.8		10.7	14.1

* In March 2010, the Directors declared and paid a second interim dividend of 7.0p to shareholders, which replaced the final dividend.

A final dividend of 11.0p per share has been proposed by the Board, amounting to a distribution of £16.0m. The proposed final dividend is subject to approval by the shareholders at the Annual General Meeting to be held on 18 April 2012 and has not been provided for in these financial statements.

15.  Acquisitions

Titan

The Group acquired 100% of the share capital of TSI Acquisition Holdings LLC and its subsidiaries ("Titan"), for a consideration of £508.6m (US$811.9m) on 16 September 2011. Titan is a leading provider of perforating gun systems, shaped charges, well logging instrumentation, perforating gun switches and other engineered hardware used throughout the drilling, completion and maintenance of a well. This business has been classified as part of the Well Completion segment.

Details of the acquired net assets, goodwill and consideration are set out below:

	Provisional fair values
	£m
Property, plant and equipment	29.5
Other intangible assets	187.6
Cash and cash equivalents	25.4
Inventories	73.8
Trade and other receivables	26.9
Trade and other payables	(9.7)
Current tax liabilities	(0.3)
Non-current borrowings	(5.3)
Net assets acquired	327.9
Goodwill	180.7
Consideration	508.6

Consideration comprised £506.6m cash paid on 16 September 2011 and a further £2.0m paid on 9 January 2012 for adjustments specified in the agreement.

Goodwill on the acquisition of Titan represents the value of the assembled workforce at the time of acquisition, market share in perforating products, specific knowledge and technical skills that will enhance Hunting's products and services and the prospective future economic benefits expected to accrue from the portfolio of products and services to the Group's customers and increased exposure to high growth unconventional resource plays. The provisional amount of goodwill that is expected to be deductible for tax purposes is £180.7m.

Other intangible assets recognised on acquisition include the following:

	£m
Customer relationships	120.4
Trademarks	17.2
Patented in-use technology and know-how	9.8
Unpatented in-use technology and know-how	33.8
Other	6.4
	187.6

The fair value of trade and other receivables is £26.9m and includes trade receivables with a fair value of £26.1m. The gross contractual amount for trade receivables due is £26.7m, of which £0.6m is expected to be uncollectable.

The pre-acquisition carrying value of inventories was £53.6m and the fair value at acquisition was £73.8m. The uplift to inventories is charged to the income statement as the acquired inventories are sold. During 2011, £10.3m was charged to the income statement as an exceptional item. The remaining uplift to inventories of £9.9m is expected to be charged to the income statement during 2012.

The fair values of the net assets acquired are provisional as work is continuing in respect of the fair value exercise.

Acquisition related costs of £6.7m have been included in operating expenses in the income statement for the year ended 31 December 2011 (note 3).

Dearborn

The Group acquired 100% of the share capital of Dearborn Precision Tubular Products, Inc. ("Dearborn"), for a cash consideration of £50.6m (US$82.4m) on 12 August 2011. Dearborn is a company that provides specialist precision machining services. Dearborn manufactures high precision tubular and rotating metal components for customers who require products with exacting tolerances and unique configurations. The components are used primarily for measurement-while-drilling ("MWD") and logging-while-drilling ("LWD") applications in the oil and gas sector, in addition to products for the aerospace and power generation industries. This business has been classified as part of the Well Construction segment.

Details of the acquired net assets, goodwill and consideration are set out below:

	Provisional fair values
	£m
Property, plant and equipment	11.8
Other intangible assets	10.4
Inventories	9.0
Trade and other receivables	4.9
Cash and cash equivalents	0.3
Trade and other payables	(0.9)
Current borrowings	(0.2)
Non-current borrowings	(0.3)
Net assets acquired	35.0
Goodwill	15.6
Consideration	50.6

Consideration comprised £50.6m cash.

Goodwill on the acquisition of Dearborn represents the value of the assembled workforce at the time of acquisition, its expertise in manufacturing close tolerance parts for the oil and gas sector, specific knowledge and technical skills that will enable Hunting to broaden its manufacturing offering and the future economic benefits expected to accrue from the Group's ability to supply products into higher specification oil and gas wells and increasingly challenging environments being pursued by the global energy industry. The provisional amount of goodwill that is expected to be deductible for tax purposes is £15.6m.

Other intangible assets recognised on acquisition include the following:

	£m
Customer relationships	9.1
Trademarks	0.4
Other	0.9
	10.4

The fair value of trade and other receivables is £4.9m and includes trade receivables with a fair value of £4.9m. The gross contractual amount for trade receivables due is £4.9m, of which £nil is expected to be uncollectable.

The pre-acquisition carrying value of inventories was £7.1m and the fair value at acquisition was £9.0m. The uplift to inventories is charged to the income statement as the acquired inventories are sold. During 2011, £1.9m was charged to the income statement as an exceptional item.

The fair values of the net assets acquired are provisional as work is continuing in respect of the fair value exercise.

Acquisition related costs of £1.3m have been included in operating expenses in the income statement for the year ended 31 December 2011 (note 3).

Doffing

The Group acquired the business and assets of W L Doffing, L.P. ("Doffing"), for a consideration of £14.2m (US$23.0m) on 2 September 2011. Doffing is a company that provides high precision machining services to the energy industry. Doffing is a supplier of precision machined components to the global energy services industry focusing on equipment used for measurement-while drilling ("MWD") and logging-while-drilling ("LWD"). The business provides critical tolerance machining, prototyping and first-pass specialist production services. The business also holds intellectual property for manufacturing other key components used in the oil and gas well bore. This business has been classified as part of the Well Construction segment.

Details of the acquired net assets, goodwill and consideration are set out below:

	Provisional fair values
	£m
Property, plant and equipment	2.9
Other intangible assets	3.5
Inventories	1.3
Trade and other receivables	1.2
Trade and other payables	(0.4)
Net assets acquired	8.5
Goodwill	5.7
Consideration	14.2

Consideration comprised £12.9m cash paid, £0.2m to be paid in 2012 for working capital adjustments and £1.1m contingent consideration.

The contingent consideration arrangement requires the Group to pay in cash the former owners of Doffing up to US$2.0m if agreed EBITDA targets are reached for the two years from 2 September 2011. If the EBITDA target is not achieved, then no further consideration is due. The potential undiscounted amount of all future payments that the Group could be required to make under this arrangement is between US$nil and US$2.0m. The fair value of the contingent consideration arrangement of US$1.8m was estimated by applying the income approach and an appropriate discount rate.

Goodwill on the acquisition of Doffing represents the value of the assembled workforce at the time of acquisition, its machining expertise and technical skills that fit with Hunting's existing manufacturing capabilities and complements Hunting's technology offering to its customers. The ability to deliver products with exacting machining requirements and the ability to complete a machining job on a first-pass will enable Hunting to participate in increasingly complex well designs, with future economic benefits expected to accrue from opportunities to supply other products and services from Hunting's portfolio. The provisional amount of goodwill that is expected to be deductible for tax purposes is £5.7m.

Other intangible assets recognised on acquisition include the following:

	£m
Customer relationships	3.0
Trademarks	0.2
Other	0.3
	3.5

The fair value of trade and other receivables is £1.2m and includes trade receivables with a fair value of £1.2m. The gross contractual amount for trade receivables due is £1.2m, of which £nil is expected to be uncollectable.

The pre-acquisition carrying value of inventories was £1.0m and the fair value at acquisition was £1.3m. The uplift to inventories is charged to the income statement as the acquired inventories are sold. During 2011, £0.3m was charged to the income statement as an exceptional item.

The fair values of the net assets acquired are provisional as work is continuing in respect of the fair value exercise. Acquisition related costs of £0.3m have been included in operating expenses in the income statement for the year ended 31 December 2011 (note 3).

Specialty

The Group acquired 100% of the share capital of Specialty Supply, L.P. ("Specialty"), for a consideration of £24.5m (US$39.5m) on 28 October 2011. Specialty is a company that manufactures precision machined measurement-while drilling ("MWD") parts used in directional drilling markets worldwide. These include a comprehensive line of running gear and associated products for MWD, logging-while-drilling ("LWD"), steering tool and gyro systems. Additionally, Specialty's product offering includes drill pipe screens for all drilling applications as well as a complete line of down-hole filter sub rentals. This business has been classified as part of the Well Construction segment.

Details of the acquired net assets, goodwill and consideration are set out below:

	Provisional fair values
	£m
Property, plant and equipment	1.2
Other intangible assets	4.7
Inventories	4.2
Trade and other receivables	3.6
Cash and cash equivalents	1.2
Trade and other payables	(0.9)
Net assets acquired	14.0
Goodwill	10.5
Consideration	24.5

Consideration comprised £21.5m cash and £3.0m contingent consideration.

The contingent consideration entitles the former owners of Specialty additional consideration of up to US$5.0m if EBITDA targets are achieved in the two years ended 28 October 2013. If the EBITDA target is not reached, then no further payment is to be made. The potential undiscounted amount of all future payments that the Group could be required to make under this arrangement is between US$nil and US$5.0m. The fair value of the contingent consideration arrangement of US$4.8m was estimated by applying the income approach and appropriate discount rates.

Goodwill on the acquisition of Specialty represents the value of the assembled workforce at the time of acquisition, its machining expertise, technical skills and the future economic benefits expected to accrue from Hunting's strengthening portfolio of MWD/LWD products and its ability to provide specialist manufacturing for complex conventional and unconventional oil and gas wells that enable companies to drill in demanding environments. The provisional amount of goodwill that is expected to be deductible for tax purposes is £10.5m.

Other intangible assets recognised on acquisition include the following:

	£m
Customer relationships	4.3
Trademarks	0.2
Other	0.2
	4.7

The fair value of trade and other receivables is £3.6m and includes trade receivables with a fair value of £3.6m. The gross contractual amount for trade receivables due is £3.6m, of which £nil is expected to be uncollectable.

The pre-acquisition carrying value of inventories was £3.0m and the fair value at acquisition was £4.2m. The uplift to inventories is charged to the income statement as the acquired inventories are sold. During 2011, £0.4m was charged to the income statement as an exceptional item. The remaining uplift to inventories of £0.8m is expected to be charged to the income statement during 2012.

The fair values of the net assets acquired are provisional as work is continuing in respect of the fair value exercise.

Acquisition related costs of £0.3m have been included in operating expenses in the income statement for the year ended 31 December 2011 (note 3).

Welltonic

On 18 July 2011, contingent consideration of £2.0m was paid to the former owners of Welltonic, in accordance with the sale agreement.

Post-acquisition Performance

The acquisitions have contributed the following to the Group's performance from the date of acquisition to 31 December 2011:

	Before amortisation and exceptional items	Amortisation and exceptional items	Total
	£m	£m	£m
Revenue	64.8	-	64.8
Profit (loss) from operations	15.1	(22.0)	(6.9)
Profit (loss) before tax	15.5	(22.0)	(6.5)
Profit (loss) for the period	9.9	(13.7)	(3.8)

Full year Performance

If the acquisitions had been made on 1 January 2011, the Group's performance during 2011 would have been as follows:

	Before amortisation and exceptional items	Amortisation and exceptional items	Total
	£m	£m	£m
Revenue	759.8	-	759.8
Profit (loss) from operations	128.9	(67.9)	61.0
Profit (loss) before tax	118.4	(68.9)	49.5
Profit (loss) for the period	80.5	(43.1)	37.4

 

END

 

 

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