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Company Financial Statements

Company statement of recognised income and expense
Year ended 31 December 2005
All figures in £ millions 2005 2004 2003
Net exchange adjustments offset in reserves net of tax - (20) (23)
(Loss)/profit for the year (362) 946 (10)
Total recognised income and expense for the year (362) 926 (33)
Effect of transition adjustment on adoption of IAS 39 (see note 11) (3)    
Company balance sheet
As at 31 December 2005
All figures in £ millions Notes 2005 2004 2003
Assets
Non-current assets
Investments in subsidiaries 2 6,883 7,134 6,343
Amounts due from subsidiaries   289 288 944
Financial assets - Derivative financial instruments 5 79 - -
Other financial assets   1 1 -
Total   7,252 7,423 7,287
Current assets
Amounts due from subsidiaries   691 674 1,394
Current income tax assets   67 66 3
Cash and cash equivalents 3 598 332 378
Other assets   3 - -
Total assets   8,611 8,495 9,062
Liabilities
Non-current liabilities
Financial liabilities - Borrowings 4 (1,261) (1,132) (1,123)
Financial liabilities - Derivative financial instruments 5 (22) - -
Amounts due to subsidiaries   (591) (440) (234)
Provisions for other liabilities and charges   - (4) (2)
Total   (1,874) (1,576) (1,359)
Current liabilities
Other liabilities   (1) (13) (17)
Financial liabilities - Borrowings 4 (366) (433) (913)
Amounts due to subsidiaries   (2,274) (1,816) (2,860)
Total liabilities   (4,515) (3,838) (5,149)
Net assets   4,096 4,657 3,913

Equity
Share capital 6 201 201 201
Share premium 6 2,477 2,473 2,469
Other reserves 7 1,418 1,983 1,243
Total equity attributable to equity holders of the Company   4,096 4,657 3,913

These financial statements have been approved for issue by the board of directors on 26 February 2006 and signed on its behalf by

Rona Fairhead, Chief financial officer

Company cash flow statement
Year ended 31 December 2005
All figures in £ millions Notes 2005 2004 2003
Cash flows from operating activities
Net (loss)/profit   (362) 946 (10)
Adjustments for:
Tax   (54) (69) (16)
Net finance costs   241 161 50
Amounts due from subsidiaries   454 619 99
Provisions   95 - -
Cash generated from operations   374 1,657 123
Interest paid   (159) (145) (92)
Tax received   57 4 21
Net cash generated from operating activities   272 1,516 52
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired   (33) - (15)
Interest received   13 1 92
Purchase of other financial assets   (60) (983) (1)
Disposal of other financial assets   341 - -
Net cash generated from/(used in) investing activities   261 (982) 76
Cash flows from financing activities
Proceeds from issue of ordinary shares   4 4 5
Net Group contribution to purchase of treasury shares   5 9 6
Proceeds from borrowings   - - 76
Repayments of borrowings   (59) (258) -
Dividends paid to Company’s shareholders   (205) (195) (188)
Net cash used in financing activities   (255) (440) (101)
Effects of exchange rate changes on cash and cash equivalents   (3) (4) 26
Net increase in cash and cash equivalents   275 90 53
Cash and cash equivalents at beginning of year   (3) (93) (146)
Cash and cash equivalents at end of year 3 272 (3) (93)

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