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Basis of accounting

The financial statements have been prepared in accordance with applicable United Kingdom accounting standards on the historical cost basis.

The Company has adopted FRS 25 Financial Instruments: Disclosure and Presentation and FRS 26 Financial Instruments: Measurement from January 1, 2005, the impact of which has been the reclassification of B Shares, with a value of £5m, from shareholders funds to other financial liabilities.

In accordance with these standards, comparatives have not been restated. The effect has been to reclassify B Shares from share capital to other creditors.

As permitted by the Companies Act 1985, a separate profit and loss account for the Company has not been included in these financial statements. As permitted by FRS 1 no cash flow statement for the Company has been included. As permitted by FRS 8 no related party disclosures for the Company have been included.

Investments in subsidiary undertakings

Investments in subsidiary undertakings are reported at cost less amounts written off.

Current assets

Amounts are shown at their recoverable amount.

Taxation

Provision for taxation is made at the current rate and for deferred taxation at the projected rate on all timing differences which have originated, but not reversed at the balance sheet date.