Introduction
We have been instructed by the Company to review the financial information
for the six months ended 30 June 2005 which comprises the Summarised
Consolidated Income Statement – EEV basis, the Summarised
Consolidated Statement of Recognised Income and Expense – EEV basis,
the Summarised Consolidated Statement of
Changes in Equity – EEV basis, the Summarised
Consolidated Balance Sheet – EEV basis, the Segmentation
of the Summarised Consolidated Balance Sheet – EEV basis, the
Information on the EEV basis, the Summarised
Consolidated Income Statement – IFRS basis, the Reconciliation
of Group Operating Profit to Retained Profit for the Period – IFRS
basis, the Summarised Consolidated Balance
Sheet – IFRS basis, the Summarised
Consolidated Statement of Recognised Income and Expense – IFRS basis,
the Summarised Consolidated Statement of
Changes in Equity – IFRS basis, the Summarised
Consolidated Cash Flow Statement – IFRS basis, the related
notes 1 to 16, and First Time Adoption
of International Financial Reporting Standards. We have read the other
information contained in the interim report and considered whether it
contains any apparent misstatements or material inconsistencies with the
financial information.
This report is made solely to the Company in accordance with guidance contained
in Bulletin 1999/4 “Review of interim financial information”
issued by the Auditing Practices Board. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than
the Company, for our work, for this report, or for the conclusions we
have formed.
Directors’ responsibilities
The interim report, including the financial information contained therein,
is the responsibility of, and has been approved by, the directors. The
directors are responsible for preparing the interim report in accordance
with the Listing Rules of the Financial Services Authority.
As disclosed in the basis of preparation – IFRS basis note, the next
annual financial statements of the Group will be prepared in accordance
with those IFRSs adopted for use by the European Union.
The accounting policies are consistent with those that the directors intend
to use in the next financial statements. There is, however, a possibility
that the directors may determine that some changes to these policies are
necessary when preparing the full annual financial statements for the
first time in accordance with those IFRSs adopted for use by the European
Union. This is because, as disclosed in the basis of preparation –
IFRS basis note, the directors have anticipated that revised IAS 19, revised
IAS 39 and IFRIC 4, which have yet to be formally adopted for use by the
European Union, will be so adopted in time to be applicable to the next
annual financial statements.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4 “Review of interim financial information” issued by
the Auditing Practices Board for use in the United Kingdom. A review consists
principally of making enquiries of group management and applying analytical
procedures to the financial information and underlying financial data,
and based thereon, assessing whether the accounting policies have been
applied. A review excludes audit procedures such as tests of controls
and verification of assets, liabilities and transactions. It is substantially
less in scope than an audit performed in accordance with United Kingdom
Auditing Standards and therefore provides a lower level of assurance than
an audit. Accordingly we do not express an audit opinion on the financial
information.
Review conclusion
On the basis of our review we are not aware of any material modifications
that should be made to the financial information as presented for the
six months ended 30 June 2005.
Ernst & Young LLP
London
10 August 2005
