Definitions

Financial highlights

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Items which relate to significant restructuring events are presented as a separate column within their relevant Consolidated income statement category. Presentation of these items in a separate column helps to provide a better indication of the Group’s underlying business performance. Restructuring items includes costs or income associated with the restructuring of businesses and gains or losses on the disposal or closure of businesses
1
Profit for the period includes restructuring costs of £35.4m (2007/08: £4.7m) – including £22.9m for Fenland mothballing – and an exceptional tax charge of £12.5m following the withdrawal of Industrial Buildings Allowances
2
Underlying earnings per share (EPS) is before restructuring items, movement on deferred tax due to change in legislation, one-off release of prior year tax liability, and the net pension financing. This is reconciled to earnings per share in the financial statements
3
Net debt is defined as total borrowings (including both short and long term bank loans, bonds, loan notes and finance leases) less cash and cash equivalents and short term investments. Net debt will also include the proportion of the fair value of the currency swaps, hedging the balance sheet value of the Group’s US Dollar denominated loan notes
4
Underlying profit before taxation reflects Group profit before tax before restructuring items and net pension financing. This is reconciled to PBT in the financial statements
5
ROIC is profit from operations before restructuring items for continuing operations divided by a 13 month average invested capital (net equity adjusted to exclude retirement benefit obligations net of deferred tax, and net debt, together with accumulated goodwill previously written off)
6
Adjusted earnings per share (EPS) is basic EPS before restructuring items, movement on deferred tax due to change in legislation and one-off release of prior year tax liability. This is reconciled to earnings per share in the financial statements

Chief executive’s review

7
Underlying revenue excludes the impact of currency rate changes, product categories no longer manufactured, acquisitions and discontinued operations, including Fenland
8
Free cash flow is net cash from operating activities, adjusted for special pension contributions, less net capital expenditure, plus interest received. Net capital expenditure is purchase of property, plant and equipment (PPE) less grants received and proceeds from sale of PPE

Operational review

9
Net working capital is defined as inventories plus trade and other receivables less trade and other payables
10
EBITDA is earnings before interest, tax, depreciation and amortisation. It is calculated as profit from operations plus depreciation and amortisation, all measured before restructuring items

Board of directors and company secretary

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Non-executive director
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Remuneration committee member
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Audit committee member
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Nomination committee member

Shareholder information - Shareholder analysis

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This includes 45.46m shares held in treasury