2005	2004	2003	2002	2001
Revenue £m	1,097	963	1,003*	984	827
Underlying profit before financing costs £m	89	78	78*	82	73
Net assets £m	592	565	577*	550	513
Order book - firm £bn	1.7	1.4	1.2*	1.3	1.3
Employees	7,200	7,100	7,300*	6,500	6,500

*restated following the transfer of the diesel business from energy to marine.

Sales analysis 2005:

1. Commerical original equipment
2. Commercial services
3. Naval original equipment
4. Naval services

Highlights of the year

A £137 million service and support contract was secured for ships in service with the Royal Navy and the French, Belgian and Royal Netherlands navies.

The first MT30 marine gas turbine was delivered to power land-based test runs of the US Navy's DD(X) destroyer.

Lockheed Martin installed two MT30 marine gas turbines on the first prototype Littoral Combat Ship for the US Navy.

A University Technology Centre (UTC) was established by the Group in Norway to conduct research programmes in the marine sector.

A new marine facility in Shanghai was formally opened.

The Rolls-Royce marine business is a global leader in marine propulsion, engineering and hydrodynamics expertise, with a broad product range and a full systems-integration capability.

In 2005, the marine business made good progress, with higher sales and higher profit. The recovery of the offshore oil and gas support market continued and Rolls-Royce secured a good share of the available business. The 500th order was placed for a Rolls-Royce UT-Design vessel, one of the most successful designs in the history of commercial shipping. UT-Design ships are sold as complete systems and are fitted with a range of Rolls-Royce equipment.

The Group is developing rim-driven tunnel-thruster technology, which is likely to have a major impact on marine propulsion in the future. The first thrusters are to be fitted to an offshore support vessel but the technology will also be suitable for merchant and cruise ships.

Asia's ship building accounts for nearly 80 per cent of the world's commercial ship construction. During 2005 Rolls-Royce expanded its presence in Asia, opening a new factory in Shanghai, which, together with our existing factory in Korea, creates a north-east Asian production hub.

In the naval market sector, Rolls-Royce achieved a major development milestone when the MT30 gas turbine was awarded American Bureau of Shipping certification. In February 2005, the first MT30 marine gas turbine generator set was delivered to the US Navy to power land-based test runs for the DD(X) destroyer.

Lockheed Martin installed two MT30 gas turbines on the first prototype Littoral Combat Ship for the US Navy. These gas turbines are the largest ever installed on a naval ship.

The Group is working with the US Navy as prime contractor on the advanced electric ship demonstrator project that will be the proving ground for the Rolls-Royce AWJ-21 waterjet, the next generation of naval waterjet.

In 2005, 40 per cent of marine sales were derived from services and support activities. The Group announced a £137 million long-term service and support contract for Olympus and Tyne engines that power 27 ships in service with the Royal Navy and the French, Belgian and Royal Netherlands navies.