Dairy Crest Regulatory News (DCG)

Interim Results Announcement for the six months ended 30 September 2015

Highlights

· Transformational sale of Dairies operations will complete on 26 December 2015

· Strong first half performance from Cathedral City (sales +7%) and Frylight (sales +37%)

· Overall sales of four key brands in line with last year despite deflationary environment

· Commence sales of demineralised whey and galacto-oligosaccharide in H2

· Strong cash generation - reported net debt has now peaked as cash drain of Dairies ends and future capital expenditure in ongoing business reduces significantly

· Refinancing completed - new £240 million revolving credit facility in place

· Interim dividend up 2%

· Full year expectations for continuing business unchanged

1 From continuing operations

2 Before exceptional items, amortisation of acquired intangibles and pension interest

3 After tax, before exceptional items

Mark Allen, Chief Executive, said:

"The sale of our Dairies operations leaves Dairy Crest well positioned for long term profitable and sustainable growth alongside strong cash generation. We expect this to start in the second half of 2015/16 despite the continuing challenging environment.

"In the first half of the year Cathedral City has continued to go from strength to strength and has again grown sales and market share.

"A strong performance from Frylight has helped us maintain margins in our Spreads and Butters business. We have clear plans in place to address the performance of Clover and Country Life.

"We highlighted early in the current financial year that profits would be weighted towards the second half. With the benefit of lower cheese costs and an expected improved performance from our Spreads and Butters business in the second half, our full year expectations remain unchanged.

"Following the sale of our Dairies business, Dairy Crest will be a predominantly branded, simpler, more focused business with a significantly reduced overhead base. Future sales of ingredients for infant formula, which will start in the second half, will provide added impetus.

We expect the increased focus on growth and cash generation to allow us to maintain our strong track record of rewarding shareholders with higher dividends."

For further information:

A video interview with Mark Allen and Tom Atherton, Group Finance Director, will be available from 07:00 (UK time) from the investor section of the Group's website investor.dairycrest.co.uk. There will be an analyst and investor meeting at 8.30 (UK time) today at The Lincoln Centre, 18 Lincoln's Inn Fields, London, WC2A 3ED. An audiocast of the presentation will be available from the investor section of the Group's website investor.dairycrest.co.uk later today.

Operating review

Sale of Dairies operations

On 6 November 2014 Dairy Crest announced that it had agreed to sell the assets of its Dairies operations to Muller UK & Ireland Group LLP ("Müller"). The sale received the approval of Dairy Crest's shareholders on 23 December 2014 and that of the Competition and Markets Authority ("CMA") on 19 October 2015. It will complete on 26 December 2015. We now expect sales proceeds to be in the range £40 - 50 million subject to working capital adjustments. The additional amount we expect to receive from selling properties not included in the sale to Müller remains unchanged at £20 million.

The sale results in us disposing of a heavily loss making operation exposed to an increasingly challenged market. The first half of the year has seen extremely high milk production and extremely low market returns. This has led to increased losses in our Dairies operations despite an ongoing cost reduction programme, which included the closure of our Chard creamery in September 2015.

We have treated the results of Dairies operations which are being sold to Müller as 'discontinued operations' in the results for the six months ended 30 September 2015. The Dairies assets to be sold are disclosed separately on the balance sheet as 'held for sale'.

Well positioned for growth

Following the sale Dairy Crest will be a predominantly branded, simpler, more focused business with a significantly reduced overhead base.

The sale signals a start to a new era for Dairy Crest. It will allow further focus on our Cheese and Whey and Spreads and Butters businesses which delivered a compound annual growth in profits of 9% over the four years ended 31 March 2015 and which are well placed to grow sales and profits in the future.

We expect the increased focus on growth and cash generation to allow us to maintain our strong track record of rewarding shareholders with higher dividends. We remain committed to a progressive dividend policy with a target cover range of between 1.5 and 2.5 times. The Board has declared a 2% increase in the interim dividend for 2015/16 to 6.1 pence per share (2014: 6.0 pence per share).

Aggregate key brand sales maintained in deflationary environment

Increasing the sales of our four key brands is one of the ways we expect to deliver sustainable growth in the future. We aim to provide consumers with innovative new products which are supported by a strong programme of marketing and promotions and underpinned by operational excellence. During the first half our innovation team relocated to Harper Adams University where our new Food Innovation Centre will be opened in the second half. We expect our partnership with Harper Adams University to provide us with access to leading academic research that facilitates further new product development.

In aggregate, sales of our four key brands (Cathedral City, Country Life, Clover and Frylight) in the first half of 2015/16 were in line with those in the first half of 2014/15. This is a strong overall performance in a deflationary marketplace.

* Dairy Crest volume & value sales 6 months to 30 September 2015 v 6 months to 30 September 2014

We use IRI and Kantar data to track the performance of our brands in retail markets.

IRI data for the 26 weeks ended 12 October 2015 compared to the same period last year show that the retail cheese market (excluding discounters) grew 1% in volume but fell 4% in value. Cathedral City significantly outperformed this market on both counts, gaining share mostly from retailer own brands.

The same market data show that butter volumes grew by 5% but spreads volumes declined by 10%, leaving combined volumes down 4%. Selling prices fell in both markets resulting in retail sales down 2% for butter, 14% for spreads and 7% combined. Retail sales of Clover moved broadly in line with the spreads market. Country Life lost both volume and value share of the retail butter market as promotional activity intensified.

Kantar data for the year to 16 August 2015 indicate that the value of the retail oil market fell by 2%. Frylight significantly outperformed this market.

Cathedral City outperforms again but first half Cheese and Whey margins experience a short term squeeze

Sales of Cathedral City, the UK's leading cheese brand, grew by 7% compared to the six months ended 30 September 2014. Volumes were up 14%. The brand continued to grow market share in the first half. We expect this to continue in the second half.

Our Cheese and Whey business also benefitted from efficiency improvements, most notably at Nuneaton where we again made a meaningful reduction in our packing costs.

However, as forecast, reported Cheese and Whey product group profits fell as a result of lower realisations in advance of the reduction in cheese costs. On average our cheese is matured for around a year and therefore lower milk purchase prices will only be fully reflected in the cost of cheese sold in the second half of this year. We started the second half with maturing cheese stocks valued at £15 million less than at the start of the year despite higher volumes.

Cheese and Whey product group revenues and profits were also affected by lower whey realisations which reflected weaker global markets. However, the step up in revenues that we expect to receive as we move to demineralised whey remains broadly unchanged. The investment at our Davidstow creamery to manufacture demineralised whey powder and galacto-oligosaccharide ("GOS") is now at the commissioning stage and we continue to expect to start selling both these products in this financial year and receive a full-year benefit in the year ending 31 March 2017.

These added value products give Dairy Crest access to new sales channels in fast growing global markets and are principally ingredients for infant formula. In addition we are exploring further applications for GOS. Demineralised whey and GOS form another important part of Dairy Crest's growth strategy.

Spreads and Butters profits reflect difficult marketplace

Spreads and Butters revenues and product group profits decreased in the six months ended 30 September 2015 against strong comparatives for the six months ended 30 September 2014. Despite this, margins remained broadly in line with the same period last year at 15%.

The strong performance of Frylight and lower production costs resulting from the consolidation of manufacturing at our Kirkby site only partially offset lower returns from sales of spreads and butters as the spreads market continued to decline and competitors promoted butter aggressively. Clover sales declined broadly in line with the overall spreads market. Having performed strongly in the first half of last year, Country Life lost market share.

We have clear second half plans in place to directly address both of these issues.

We have recently introduced a new recipe for Clover to meet changing consumer preferences. It is now made with no artificial ingredients. We have supported this innovation with a strong media programme and expect the renewed impetus to improve the performance of Clover in the second half.

Consumer research has identified that Country Life benefits from its overtly British position. We will re-emphasise this with new packaging in the second half.

In the future we also expect this business to benefit from further operational improvements at Kirkby.

Financial review

Group revenue of £203.8 million represents a 5% decrease from last year, reflecting lower selling prices across the business and reduced Spreads and Butters product group volumes.

Total product group profit from continuing operations fell 32% to £20.0 million (2014: £29.4 million). Cheese and Whey product group profits fell by £7.7 million reflecting lower cheese realisations in advance of reduced cheese costs and lower whey realisations. Spreads and Butters product group profits were also down due to lower volumes, although margins were broadly maintained at 14.9% (2014: 15.5%).

Product group analysis consistent with prior periods is provided in note 3 to the interim financial statements.

Finance costs of £4.0 million are £0.3 million higher than last year as a result of increased levels of borrowings.

Group adjusted profit before tax (from continuing operations, before exceptional items, amortisation of acquired intangibles and pension interest) was £16.0 million, down 38% from £25.7 million in 2014.

Post-tax losses in the Dairies business, which are classified as discontinued operations, amounted to £16.7 million (2014: £2.5 million) reflecting reduced volumes, price deflation, weak commodity markets and lower levels of depot property sales.

Exceptional costs on continuing operations of £2.4 million were incurred during the six months ended 30 September 2015 (2014: £9.6 million). These all relate to the building and commissioning of the demineralised whey and GOS facilities at Davidstow. In the second half of the year we expect to incur approximately a further £6 million as we transition to commercial production of these products.

Discontinued exceptional items comprise a non-cash impairment on the 'held for sale' Dairies assets of £106.2 million, estimated transactional costs relating to the sale of the Dairies business and costs relating to the separation of the organisation in order to create a stand-alone Dairies operation of £12.9 million and further costs in relation to the closure of Chard, which completed in the first half of the year, and the future closure of Hanworth of £1.6 million. Tax relief on the exceptional costs was £17.6 million.

The pension interest charge of £0.3 million was £0.6 million lower than last year. This reflects a lower deficit at the start of the year and a reduction in discount rates at March 2015 compared to March 2014.

The effective rate of tax for continuing operations is 20% (2014: 21%) and is representative of the expected rate in the year ending 31 March 2016 and future years.

Adjusted basic earnings per share on continuing operations amount to 9.3 pence (2014: 14.9 pence) a decrease of 38% broadly consistent with lower adjusted profit before tax. Basic earnings per share on continuing operations fell by 12% to 7.6 pence.

Overall cash generated from operations in the six months ended 30 September 2015 amounted to £22.3 million and represents an improvement of £42.9 million compared to the same period last year. This is despite the increased trading losses in the Dairies business, which will no longer be a cash drain after completion of the sale in December 2015.

Capital expenditure of £35.5 million includes £29.1 million in the continuing business, mainly relating to the new facilities at Davidstow and £6.4 million that relates to the Dairies business. Following the sale of the Dairies business, Dairy Crest will operate from just five well invested manufacturing sites and after the demineralised whey and GOS projects are completed in the second half of the year, capital expenditure in the retained business is expected to significantly reduce.

Proceeds from property sales were lower than in the first half of last year and overall net debt followed the usual seasonal pattern and increased in the first half to £242.3 million at 30 September 2015, an increase of £43.6 million since 31 March 2015. Of this increase £5.3 million relates to the recognition of finance lease liabilities on a secondary lease contract for assets at Nuneaton.

From here we expect net debt to fall consistently. In the second half of the year it will benefit from the net proceeds from the sale of our Dairies operations and some further property sales.

We expect to maintain this momentum due to ongoing strong cash generation from our Cheese and Spreads businesses, which will no longer be offset by Dairies trading losses, further property sales and lower levels of capital expenditure and exceptional items. As a result, we have agreed a revolving credit facility that reduces over time. We signed a new 5 year revolving credit facility with four of our existing lenders on 6 October 2015. The new facility is initially £240 million and falls to £160 million at the end of its third year.

The reported defined benefit pension scheme deficit was £33.2 million at 30 September 2015 compared to £41.4 million at 31 March 2015. On 2 November 2015, in order to facilitate the sale of the Dairies business, properties owned by the pension scheme were repurchased by the business for a consideration of £8.3 million. This will have the effect of reducing future cash contributions paid by Dairy Crest into the scheme by £2.8 million per annum through to June 2018.

The principal risks and uncertainties affecting the Group are set out below the statement of directors' responsibilities and further details are disclosed on pages 14 and 15 of the 2015 Annual Report and Accounts. Related party transactions are given in note 11 to the interim financial statements.

Summary and outlook

We highlighted early in the current financial year that profits would be weighted towards the second half. With the benefit of lower cheese costs and an expected improved performance from our Spreads and Butters business in the second half, our full year expectations remain unchanged.

Following the sale of our Dairies business, Dairy Crest will be a predominately branded, simpler, more focused business with a significantly reduced overhead base. Future sales of ingredients for infant formula, which will start in the second half, will provide added impetus.

We expect the increased focus on growth and cash generation to allow us to maintain our strong track record of rewarding shareholders with higher dividends.

Mark Allen

Chief Executive

5 November 2015

Consolidated income statement

(Unaudited)

All amounts are attributable to owners of the parent.

The prior year comparatives have been restated to reclassify the Dairies operation as a discontinued operation. See Note 8.

*Adjusted earnings per share calculations exclude exceptional items, amortisation of acquired intangibles and pension interest in relation to

the Group's defined benefit pension scheme.

A final dividend of £21.6 million (15.7 pence per share) was paid in the period to 30 September 2015 (2014: £21.0 million; 15.4 pence per

share). A dividend of £8.4 million (6.1 pence per share) was approved by the Board on 4 November 2015 for payment on 28 January 2016

(2014: £8.2 million; 6.0 pence per share). See Note 6.

Consolidated statement of comprehensive income

(Unaudited)

Consolidated balance sheet

(Unaudited)

The interim results were approved by the directors on 4 November 2015.

Consolidated statement of changes in equity

(Unaudited)

All amounts are attributable to owners of the parent.

Consolidated cash flow statement

(Unaudited)

Notes to the interim financial statements

(Unaudited)

1 General information

Dairy Crest Group plc (the "Company") is a public limited company incorporated in the United Kingdom under the Companies Act 2006. The address of the registered office and principal place of business is Claygate House, Littleworth Road, Esher, Surrey, KT10 9PN. The principal activity of the Company and its subsidiaries (the "Group") in the period was the processing, manufacture and sale of fresh milk and branded dairy products in the UK and Europe as described in the Group's annual financial statements for the year ended 31 March 2015.

2 Basis of preparation, accounting policies and approval of interim statement

Basis of preparation and approval of interim statement

These condensed interim financial statements comprise the consolidated balance sheet as at 30 September 2015 and related income statement, statement of comprehensive income, statement of cash flows, statement of changes in equity and supporting notes (hereinafter referred to as "financial information").

The financial information is not audited and does not constitute statutory financial statements as defined in section 435 of the Companies Act 2006. Comparative figures for the year ended 31 March 2015 have been extracted from the Group's 2015 statutory accounts, on which the auditors gave an unqualified opinion, did not include an emphasis of matter reference and did not include a statement under section 498(2) or (3) of the Companies Act 2006. The comparative figures for the year ended 31 March 2015 and the half year ended 30 September 2014 have been restated to reflect the impact of the Dairies operation as a discontinued operation. These sections address whether adequate accounting records have been kept, whether the Company's financial statements are in agreement with those records and whether the auditors have obtained all the information and explanations necessary for the purposes of the audit. The Group financial statements for the year ended 31 March 2015 have been filed with the Registrar of Companies and can be found on our corporate website, www.dairycrest.co.uk.

The financial information for the period ended 30 September 2015 has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34, "Interim Financial Reporting" as adopted by the European Union. The financial information should be read in conjunction with the Group's financial statements for the year ended 31 March 2015, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.

The results for operations for the half year are not necessarily indicative of the results expected for the full year.

This financial information was approved for issue on 4 November 2015.

Going concern

The Directors have reviewed current performance and forecasts, combined with expenditure commitments, including capital expenditure. After making appropriate enquiries, the Directors have a reasonable expectation that the Group has adequate financial resources to continue its current operations, including contractual and commercial commitments, for the foreseeable future. For this reason, they have continued to adopt the going concern basis in preparing the interim financial statements.

Accounting policies and areas of estimation and judgement

The financial information has been prepared in accordance with accounting policies used for the Group's financial statements for the year ended 31 March 2015, with the exception of the classification of the Dairies operation as a discontinued operation and the related held for sale valuation of the Dairies operation and the adoption of the new standards and interpretations that came into effect in the half year.

2 Basis of preparation, accounting policies and approval of interim statement (continued)

New standards, interpretations and amendments

The following accounting standards and interpretations became effective for the current reporting period:

- IAS 19 Defined Benefit Plans: Employee Contributions - Amendments to IAS 19

- Improvement to IFRS 2 Share-based Payment - Definitions of vesting conditions

- Improvement to IFRS 3 Business Combinations - Accounting for contingent consideration in a business

Combination

- Improvement to IFRS 8 Operating Segments - Aggregation of operating segments and Reconciliation of the

total of the reportable segments assets to the entity's assets

- Improvement to IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets - Revaluation method

- Improvement to IAS 24 Related Party Disclosures - Key management personnel

- Improvement to IFRS 3 Business Combinations - Scope exceptions for joint ventures

- Improvement to IFRS 13 Fair Value Measurement - Scope of paragraph 52

- Improvement to IAS 40 Investment Property - Interrelationship between IFRS 3 and IAS 40 (ancillary services)

The adoption of these standards and interpretations do not have a material impact on the Group's interim financial statements in the period.

Taxation

Taxes on income in the interim periods are accrued using the tax rate that is expected to be applicable to total annual earnings for the full year in each tax jurisdiction based on substantively enacted or enacted tax rates at the interim date. As a result of the future sale of the Dairies operation on 26 December 2015, the tax charge has been calculated on actual earnings from discontinued operations for the six months ended 30 September 2015.

Discontinued operations and assets held for sale

On 6 November 2014, the Group announced the sale of its Dairies operations to Muller UK & Ireland Group LLP ('Muller'), subject to approval of the relevant competition authorities and shareholders. On 10 August 2015, the Competition and Markets Authority ("CMA") announced that it proposed to accept undertakings given by Muller to remedy its competition concerns, instead of referring the case for an in-depth merger review. On 30 September 2015, the CMA announced that it proposed to accept modified undertakings provided by Muller subject to comments from third parties on those modifications. On 19 October 2015, the CMA accepted the modified undertakings and it was announced that the sale will complete on 26 December 2015. As a result of the CMA's announcements subsequent to the year-end, the Dairies operation has been judged to be held for sale as the transaction was deemed to have met the "highly probable" criteria under IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations' at 30 September 2015. The Dairies operation has been disclosed as a discontinued operation as it represents a separate major line of business and has been valued on a held for sale basis within the Group's net assets as at 30 September 2015.

The comparative information in the income statement and associated notes have been restated for the impact of the assessment of the Dairies operation as a discontinued operation. In line with the requirements of IFRS5 'Non-current Assets Held for Sale and Discontinued Operations', the statement of financial position has not been restated.

Non-current assets or disposal groups are classified as held for sale if: their carrying amount will be recovered principally through sale, rather than continuing use; they are available for immediate sale; and the sale is highly probable. A disposal group consists of assets that are to be disposed of, by sale or otherwise, in a single transaction together with the directly associated liabilities.

On initial classification as held for sale, non-current assets or components of a disposal group are remeasured at the lower of their carrying amount and fair value less costs to sell. Any impairment on a disposal group is allocated on the basis of the principles of IAS 36 'Impairment of Assets', being first allocated to goodwill and then non-current assets on a pro rata basis. Impairment on initial classification as held for sale and subsequent gains or losses on remeasurement are recognised in the income statement.

No amortisation or depreciation is charged on non-current assets (including those in disposal groups) classified as held for sale. Assets classified as held for sale are disclosed separately on the face of the statement of financial position and classified as current assets or liabilities, with disposal groups being separated between assets held for sale and liabilities held for sale.

Key areas of judgement and estimation

The areas of particular significance to the Group's financial information which include the application of judgement and estimation, which is fundamental in the completion of a set of condensed consolidated interim statements, are detailed below.

2 Basis of preparation, accounting policies and approval of interim statement (continued)

The key areas where judgement has been applied are:

(i) Classification of the Dairies operation

The Dairies operation has been assessed as held for sale and classified as a discontinued operation. The basis of this judgement is detailed above. The assessment as held for sale and associated valuation methodology results in a change in a key area of estimation from year end 31 March 2015, where the Dairies cash generating unit was not assessed as held for sale and was reviewed for impairment taking into consideration future cash flows on an on-going basis and the impact of a potential sale to create a risk weighted value in use calculation. This calculation had low levels of headroom and was highly sensitive to changes in assumptions. Since the year end there has been a significant deterioration in trading performance and a revision to the sale proceeds due to the one off payment to be made to Muller to help meet the costs of modified undertakings accepted by the CMA. In addition, the held for sale valuation does not take into account future property income of the retained business which was included within ongoing cash flow projections or additional tax benefits on completion of the transaction. See Note 8.

(ii) Nature of exceptional items

Items of a material, one-off nature, which result from a restructuring of the business or some other event or circumstance are disclosed separately in the consolidated income statement as exceptional. Management considers this to be an area of judgement due to the assumptions made around the nature of exceptional costs. See Note 4 and Note 8.

The key sources of estimation uncertainty that have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next year are:

(i) Held for sale valuation of the Dairies operation

On classification as held for sale, the Dairies operation's assets and liabilities are remeasured at the lower of their carrying amount and fair value less costs to sell. In calculating the fair value less costs to sell a number of estimates have had to be made in respect of expected sales proceeds and estimated future costs to sell. The expected sales proceeds have been estimated based on the agreed sales proceeds of £80 million reduced by a one-off payment of £15 million to Muller to help meet the additional costs of the modified undertakings accepted by the CMA and adjusted for an estimation of capital expenditure and profitability in line with the agreement targets and sales proceeds relating to properties included in the sale that were sold by the Group prior to completion. No adjustment has been made for any deviation from the agreed working capital levels. The expected costs to sell have been estimated based on contracted professional fees and estimates of costs associated with activities to separate the Dairies operation into a standalone business including one-off systems costs. See Note 8.

(ii) Measurement of defined benefit pension scheme assets and obligations

The Group recognises and discloses its retirement benefit obligation in accordance with the measurement and presentational requirement of IAS 19 'Retirement Benefit Obligations'. The calculations include a number of judgements and estimations in respect of the expected rate of return on assets, the discount rate, inflation assumptions, the rate of increase in salaries and life expectancy, amongst others. Changes in these assumptions can have a significant effect on the value of the retirement benefit obligation. There have been no significant changes in assumptions that have had a material impact on the valuation. See Note 10.

(iii) Calculation of promotional discount accruals

The Group accrues for agreed promotional funding. Accruals for promotional funding are calculated based on an estimated redemption rate of the promotion. The redemption rate used is dependent on the promotional mechanic and considers known historical data on the performance of that mechanic. Management considers this to be an area of judgement which is dependent on the customer mix and promotion mechanic.

(iv) Estimation of tax costs in France in relation to the sale of St Hubert

The sale of St Hubert resulted in tax payable in France both on the chargeable gain on disposal and on dividend payments made to the UK parent between 31 March 2012 and the date of disposal in August 2012. An estimate has been made of the likely tax costs resulting from these transactions, however, the final assessment has yet to be agreed with the French tax authorities, which may result in a change to the level of tax provisioning.

3 Segmental analysis

IFRS 8 requires operating segments to be determined based on the Group's internal reporting to the Chief Operating Decision Maker ("CODM"). The CODM has been determined to be the Company's Board members as they are primarily responsible for the allocation of resources to segments and the assessment of performance of the segments.

Following the announcement of the sale of the Dairies operation and the subsequent creation of a standalone Dairies operation, the CODM's primary focus for review and resource allocation in the period has been between the continuing business and the Dairies operation which has been classified as a discontinued operation and whose results are disclosed in Note 8 rather than this note.

The continuing business is managed centrally by functional teams (Demand, Supply, Procurement and Finance) that have responsibility for the whole of the continuing Group's product portfolio. Although some discrete financial information is available to provide insight to the management team of the key performance drivers, the product group profit is not part of the CODM's review. Management has judged that the continuing Group comprises one operating segment under IFRS 8. As such, disclosures required under IFRS 8 for the financial statements are shown on the face of the consolidated income statement and balance sheet.

To assist the readers of the financial statements, management considers it appropriate to provide voluntary disclosure on a basis consistent with historical reporting of the cheese and spreads product groups results included within the consolidated income statement. In disclosing the product group profit for the period, certain assumptions have been made when allocating resources which are centralised at a group level for the continuing business.

The 'Other' product group comprises revenue earned from distributing products for third parties and certain central costs net of recharges to the other product groups. Generally, central costs less external 'Other' revenue are recharged back into the product groups such that their result reflects the total cost base of the Group. 'Other' operating profit therefore is nil.

The results under the historical segmentation basis for the continuing business included in the financial information are as follows: