From 1 January 2005, the Group is reporting under International Financial Reporting Standards (IFRS). The move to IFRS has made the reporting of performance more complex.

However, the changes in IFRS during 2006 have not had a material impact on the Group’s results. The only change to impact the income statement is an amendment to IFRS in respect of foreign exchange. This required a restatement of the 2005 results to increase net finance costs by £4 million, with a compensating adjustment reflected directly in changes in total equity.