Hunting Regulatory News (HTG)

Hunting PLC

("Hunting" or "the Company" or "the Group")

Interim Results for the six months to 30 June 2014

Hunting PLC (LSE:HTG), the international energy services group, today announces its interim results for the six months to 30 June 2014.

Financial Highlights - from continuing operations

Operational Highlights

· Strong Q2 2014 performance offsetting a slower Q1 2014:

o Well Construction - Premium Connections and Hunting Dearborn in line with expectations driven by Gulf of Mexico activity; Drilling Tools performance impacted by severe weather in North America in Q1;

o Well Completion - Robust growth delivered in revenue and profits at Hunting Titan; US Manufacturing benefiting from continued growth in Gulf of Mexico activity; slower activity levels seen in the North Sea;

o Well Intervention - Strong sales of pressure control equipment reported in Middle East and South East Asia; Hunting Subsea reporting good profit growth.

· Capital investment programme progressing:

o $36.4m expansion of US Manufacturing facility at Houma, Louisiana - target completion of Q1 2015;

o $54.0m new Threading and Test facility at Houston, Texas, with operations targeted to commence mid-2015;

o $18.8m expansion at Hunting Dearborn underway - target completion of Q1 2015;

o $20.0m new facility in Cape Town, South Africa, with repair capabilities targeted to commence Q4 2014 and manufacturing commencing mid-2015.

· Business opportunities well-advanced in Kenya to access regional drilling activity - including repair and storage facilities.

Commenting on the results Dennis Proctor, Chief Executive, said:

"Hunting has reported a good set of results today and reflects a strong Q2 performance offsetting the slower Q1 which was affected by the severe weather across North America. Activity has returned to levels which management anticipated at the start of the year with Hunting Titan and Hunting Subsea reporting strong growth in revenue and profits. As a consequence of this, management remains comfortable that Hunting's performance, for the year as whole, remains in line with its expectations."

"Our capital investment programme is continuing on track, with new facilities being commissioned from Q4 2014 and into 2015. This investment will expand our capabilities both in established operational regions and in new geographic territories."

Hunting PLC will host an Analyst and Investor briefing on Thursday 28 August 2014 at 10.45am at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN.

An audio webcast will be available on:

http://media.buchanan.uk.com/2014/hunting280814/registration.asp

For further information please contact:

Notes to Editors:

About Hunting PLC

Hunting PLC is an international energy services provider to the world's leading upstream oil and gas companies. Established in 1874, it is a premium listed public company traded on the London Stock Exchange. The Company maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, the Company has principal operations in Canada, China, Hong Kong, Indonesia, Mexico, Netherlands, Singapore, South Africa, Thailand, United Arab Emirates and the United States of America.

Half Year Management Report

Hunting PLC ("the Group"), the international energy services group, announces its results for the six months ended 30 June 2014.

Group Performance and Development

Overview

Hunting's performance in the first half of 2014 has been positive, with good trading momentum reported from many of the Group's businesses. The second quarter delivered stronger results than the first quarter which was adversely affected by the severe weather conditions experienced across North America.

The number of wells drilled in the US during the first half of 2014 increased by 9% compared to the first half of 2013, with a marked increase in spend noted in Q2 by operators in the region which is expected to improve further in the second half. Offshore activity in the Gulf of Mexico remained busy throughout the period with rig counts stable since the end of 2013. International rig counts have increased 5% since the start of the year, reflecting growing momentum throughout the rest of the world.

In Europe, average rig numbers in the North Sea for the period were marginally lower than in 2013, reflecting the cautious approach operators are adopting in the region. In Asia Pacific, Hunting's businesses saw some project slippage in Q1 2014, with restored levels of activity during Q2.

Oil and gas prices remained stable during the first half of the year with WTI averaging $100.84 per barrel and Henry Hub natural gas averaging $4.87/mmbtu, which supplied the continuing investment by the major industry participants. Industry commentators suggest that this macro environment will remain stable for the remainder of the year with investment likely to be sustained around current levels.

In summary, the Board remains comfortable that trading for the full year will meet its expectations, with activity levels from Q2 onwards likely to compensate for the slower Q1 trading reported.

The growth initiatives currently underway which include the new facilities under construction and the ongoing programme of internationalising the product portfolio, will provide the opportunities to support the Group's strategy of growth and continued development.

Capital Investment Programme

Hunting's capital investment programme has continued throughout the first half of 2014 with investments in the US and Europe targeted to provide further capacity to meet expected demand.

In Houma, Louisiana, the final phase of expansion has commenced with a targeted completion in Q1 2015, increasing the total manufacturing capacity to over 280,000 square feet to service the activity in the Gulf of Mexico. Long lead time equipment has been placed on order and will be installed in the second half of the year.

The new Threading facility in Houston, Texas, continues to progress. Target completion for this facility is mid-2015.

At Hunting Dearborn, the near 40% expansion of the facility to reduce delivery times has commenced, with the target completion date of Q1 2015. On completion, an additional 47,000 square feet of operational capacity will be added.

Activity on the Norwegian Continental Shelf, coupled with further international demand, has required expansion of the Group's Netherlands facility at a cost of $2.3m. Followingcompletion in Q2 2015, the facility will have an additional 46,000 square feet of operating capacity.

The new Test facility in Houston, Texas, targeted to support the longer term research and development requirements of Hunting's product lines and help maintain a competitive advantage, remains on track for completion by mid-2015.

To support entry into new regional markets, construction of the new facility in Cape Town, South Africa, has commenced with repair shop capabilities and offices to be commissioned in Q4 2014 and the manufacturing area to be completed in early Q2 2015. As part of the Group's strategic plan for targeted growth in the region, Hunting is advancing business opportunities in Kenya to expand its geographic reach. The arrangement will provide local storage and logistics capabilities to operators in the region, in addition to general engineering services.

At 30 June 2014, the Group operated 41 manufacturing facilities and 34 distribution centres across 12 countries, with a total operating footprint of 2.8 million square feet. Approximately 0.4 million square feet of operational capacity will be commissioned as the above projects are completed, scheduled to be by the end of 2015.

The summary results for the Group from continuing operations are presented below:

* Underlying - results for the period, as reported under IFRS, adjusted for amortisation and exceptional items. Reported - results for the period under IFRS.

** H1 2013 has been restated following the change in presentational currency to US Dollars.

Revenue

Revenue from continuing operations for the six months ended 30 June 2014 increased to $687.5m(2013 - $655.7m). Hunting Energy Services was $27.1m ahead of the comparative period with strong performances in Well Completion, up $22.7m and Well Intervention, up $14.3m, offsetting a weaker performance in Well Construction. Gibson Shipbrokers' performance also improved with revenue up $3.5m.

EBITDA and Profit

Underlying EBITDA was $121.3m, against $116.7m in 2013.

Underlying profit from continuing operations was $97.1m (2013 - $94.5m). Margins were broadly in line with the six months to 30 June 2013. Reported profit from continuing operations at $72.3m (2013 - $63.0m) was up $9.3m, after amortisation and exceptional items as noted below.

Underlying profit before tax from continuing operations was $93.9m (2013 - $91.5m) and reported profit before tax from continuing operations was $69.1m (2013 - $60.0m). Net finance expense was $2.9m (2013 - $3.3m).

Reported profit after tax from continuing operations was $53.4m (2013 - $44.5m). In 2013, discontinued operations reported an after tax profit of $12.5m, therefore total profit after tax including discontinued operations was down $3.6m versus the comparative period.

Taxation

The underlying tax charge on continuing operations was $25.2m (2013 - $26.5m) and reflects an effective tax rate of 27% (30 June 2013 - 29%; 31 December 2013 - 27%).

Amortisation and exceptional charges in the period attract a tax credit of $9.5m (2013 - $11.0m), to give a net tax charge on continuing operations of $15.7m (2013 - $15.5m).

Amortisation and Exceptional Items

The charge for intangible asset amortisation was $21.9m compared to $21.7m in 2013.

Following the half year valuation of the Group's oil and gas reserves performed for impairment purposes, a charge of $2.9m has been recognised as an exceptional item in the first half of 2014. The $9.8m of exceptional items reported in the prior period included $3.7m related to Hunting's Exploration and Production activities, $3.2m from the amortisation of fair value uplift on acquisition inventories and $2.9m legal settlement costs.

Dividend

The Board is declaring an interim dividend of 8.1 cents (2013 - 7.7 cents) per share amounting to an estimated distribution of $12.0m. The dividend will be paid in Sterling on 26 November 2014 and the Sterling value of the dividend payable per share will be fixed and announced approximately two weeks prior to the payment date, based on the average spot exchange rate over the three business days preceding the announcement date.

The dividend will be paid to those shareholders on the register at the close of business on 7 November 2014, with an ex-dividend date of 6 November 2014.

Underlying profit from continuing operations

Hunting's segmental results are presented below:

Hunting Energy Services

Well Construction

Hunting's Premium Connections platform has reported stable trading in the first half of 2014, supported by activity in the Gulf of Mexico and international demand. The business continues to develop new product lines for the Group's global customer base and in the period completed new WEDGE-LOCK™ and SEAL-LOCK XD™ connection products for use in complex deep water applications in the Gulf of Mexico and heavy oil developments in Canada.

The Group's Drilling Tools operations suffered from the severe weather across North America during Q1 and recovered more slowly than anticipated throughout Q2. At the period end, activity had increased back to anticipated levels, with the balance of the year likely to be busy with operators keen to achieve planned drilling schedules. The business has added additional 5" mud motors to support increasing demand within the Williston Basin and Hunting's 7" mud motors continue to see good demand within the Eagle Ford shale region. Hunting continues to increase its presence in the Permian Basin in West Texas, which will underpin the remainder of 2014.

Within the Advanced Manufacturing Group ("AMG"), Hunting Dearborn has performed ahead of management expectations primarily due to increasing international demand and supportive domestic sales in North America. The business also reports an improving outlook for Measurement-While-Drilling and Logging-While-Drilling Tools from its key clients. The Hunting Electronics business has reported a subdued H1 2014, due to prolonged customer unwinding of inventory. While the business has adjusted its cost base during the reporting period, the medium term outlook for the business is improving as customers have indicated that purchasing should start to recover towards the end of the year. The AMG business has progressed its strategy to internationalise its product offering and is benefitting from a sales presence in Asia Pacific to support the global purchasing trends of Hunting's major customers.

Hunting Specialty has reported a strong performance during H1 2014 and anticipates the remainder of the year to be busy due to solid demand for its measurement tool components.

Well Completion

Hunting Titan has performed well in the reporting period, delivering good growth in revenue and profits versus the prior period. While Titan's domestic US business slowed during Q1 due to the weather in North America, overall activity for the business has increased, with a number of the facilities running at close to capacity during the reporting period. Hunting Titan continues to implement its internationalisation strategy with gun manufacturing now occurring in Canada, China and Mexico and distribution centres established in Indonesia and the UAE. New distribution facilities are also planned for Scotland, Mexico, Saudi Arabia, China and the USA to support the high levels of interest and enquiries made about Titan's product suite.

Hunting's US Manufacturing business has reported results in line with management's expectations adding new customer accounts during H1 2014, which contributed to a strong increase in the business' order book by the end of June 2014.

Hunting's international completion operations in Asia Pacific reported improving activity levels through the period, while in Europe trading in H1 2014 remained slower due to a reduced average rig count in the region.

Well Intervention

Hunting's pressure control and Thru-Tubing businesses have reported good trading during H1 2014, with demand growing in the Middle East and Asia Pacific for Hunting's product lines. During the reporting period, new clients have been captured and opportunities continue to grow in Saudi Arabia, where good levels of enquiries for the Group's pressure control, slickline and Thru-Tubing product lines have been received. Additional manufacturing facilities for Hunting's Well Intervention products are being explored in Singapore where strong demand has been identified.

At Hunting's Stafford facility, activity in the Gulf of Mexico has driven demand for its hydraulic couplings, leading to a strengthening order book and positive outlook for the business throughout the remainder of the year. The business also anticipates increasing demand for its chemical injection systems as offshore opportunities grow.

Other Activities

Exploration and Production

Hunting's exploration and production business has oil and natural gas well investments in the Southern US and the shallow waters offshore Gulf of Mexico, holding equity interests in 51 production properties. On a Barrel of Oil Equivalent ("BOE") basis, production in the first half of the year was 65,000 BOE (30 June 2013 - 81,000 BOE), with proven reserves at 30 June 2014 being 1.0m BOE (30 June 2013 - 1.1m BOE).

During the first half of 2014, the business participated in drilling three oil and gas wells; a successful development well in shallow waters offshore Louisiana and two successful development wells in Texas. The three wells have been connected to existing facilities and are now producing.

Gibson Shipbrokers

The global shipping sector remains challenging but has marginally improved from last year. The continuing legacy of overcapacity within the market remains a constraint to any notable or imminent improvement.

Gibson has continued to strengthen its position as one of the leading shipbrokers and ongoing expansion of our services remains measured and focused on reinforcing the sectors in which we currently operate.

Group Funding and Position at Half Year

Balance Sheet

Net assets reported at $1,447.6m were $32.8m higher than the year end (31 December 2013 -$1,414.8m). The net movement comprises the $53.4m retained profit for the period together with foreign exchange gains of $7.0m and other items of $4.5m offset by $32.1m of dividends declared and paid in the period.

Capital Investment

Capital investment was $54.6min the period (2013 - $32.2m), of which $33.2m (2013 - $20.9m) was replacement spend and $21.4m (2013 - $11.3m) was new business investment. The main components of capital investment across the Group include $11.9m on drilling tools, $18.3m on machinery and equipment and $21.7m on facility expansion and improvement programmes.

Cash Flow

Net debt at 30 June 2014 was $229.0m (30 June 2013 - $240.8m) compared to net debt at 31 December 2013 of $205.8m, reflecting a net cash outflow of $23.2m in the first half of 2014. Sufficient free cash flow was generated by operations in the first half to support the capital investment programme. The 2013 final dividend, which was paid on 27 May 2014, absorbed $32.1m.

With reported EBITDA of $121.3m (2013 - $110.6m) in the six months to 30 June 2014, the principal cash flows in the period include an increase in working capital of $36.8m (2013 - $47.0m increase), capital investment of $54.6m (2013 - $32.2m) and tax payments of $18.1m (2013 - $5.2m). The change in working capital reflects increased inventory levels principally at Hunting Titan, Europe and Asia Pacific to meet forecast customer requirements.

Exchange Rates

Average exchange rates used to translate Sterling and Canadian Dollar denominated results into US Dollars were £0.5993 (2013 - £0.6478) and Can$1.0965 (2013 -Can$1.0158). Spot exchange rates for Sterling and Canadian Dollar at 30 June 2014 were £0.5848 and Can$1.0652, at 30 June 2013 were £0.6593 and Can$1.0550 and at 31 December 2013 were £0.6038 and Can$1.0625 respectively.

Outlook

The outlook for the Group remains positive with industry investment continuing to grow as reserve depletion rates are only partially offset by new production additions and increases in technology utilisation and efficiency.

While Hunting experienced a slow first quarter, the Group's businesses report good demand for the remainder of the year, which gives the Board comfort that its full year expectations should be met.

North America

Industry momentum remains positive, with activity in the Gulf of Mexico and recovering onshore activity driving strong demand for the Group's range of products - Hunting's Premium Connection and US Manufacturing businesses also remain very busy. The outlook for the remainder of the year is one of good growth.

UK and Europe

Activity levels on the UK Continental Shelf remain cautious, however opportunities on the Norwegian Continental Shelf are being pursued which should support regional demand in the medium term.

Middle East and Asia Pacific

Activity in the Middle East remains positive, with Hunting's Well Intervention products experiencing good demand across the region. The business anticipates that demand for Oil Country Tubular Goods ("OCTG") will pick up in the second half of the year, leading to a positive outlook for most business lines across the region.

In Asia Pacific, while competition remains high for OCTG product lines, Hunting's position remains strong given its chosen supplier relationships. Hunting's AMG, Well Intervention and Titan product lines are providing further regional demand, which supports additional personnel and facilities to be opened in the region.

Sub-Sahara Africa

In Africa, management continues to market Hunting's capabilities to operators active throughout West and East Africa, with enquiry levels showing good momentum for revenue opportunities in the medium term.

Summary

Hunting's performance in the reporting period continues to deliver year on year growth and with the expansion initiatives underway to sell its many product lines, including premium connections, accessories and perforating systems into all of its international operating hubs, the outlook for the Group is promising.

Board Change

Hunting announces that Andrew Szescila, non-executive Director, will step down from the Board on 15 September 2014. The Board thanks Andrew for his valuable contribution since joining Hunting in September 2011 and wish him well for the future. A recruitment process is underway to find a suitable replacement, the results of which will be announced in due course.

Principal Risks and Uncertainties Facing the Business

The Group has an established risk management, monitoring and review process. The process requires all businesses to identify, evaluate and monitor risks and take steps to reduce, eliminate or manage the risk.

There are a number of potential risks and uncertainties, which could have a material impact on the Group's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results.

Some of the risks that Hunting is exposed to, which could have a material adverse impact on the Group, arise from the specific activities undertaken by the Group, whereas other risks are common to many international manufacturing companies.

Risks specific to the nature of the Group's businesses are: product quality and reliability; raw material commodity prices; integration of acquisitions; capital investment programmes; relationships with key customers and curtailment of shale drilling.

Other risks facing the business, which are common to other international manufacturing businesses, are: economics and geopolitics; loss of key executives; health, safety and environmental laws and regulations; effective control over subsidiaries and fluctuations in currency exchange rates.

The Directors do not consider that the principal risks and uncertainties have changed significantly since the publication of the Annual Report for the year ended 31 December 2013, in which these risks and uncertainties are discussed in detail on pages 34 to 37. As such these risks continue to apply to the Group for the remaining six months of the financial year.

Forward-looking Statements

Certain statements in this half year report are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. The Group undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.

Richard Hunting, CBE Dennis Proctor

Chairman Chief Executive

28 August 2014

Statement of Directors' Responsibilities

The Directors confirm that, to the best of their knowledge, these condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the European Union and that the half year management report includes a fair review of the information required by the Disclosure and Transparency Rules 4.2.7 and 4.2.8, namely:

- an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of consolidated financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

- material related party transactions in the first six months of the financial year and any material changes in the related party transactions described in the 2013 Annual Report.

The Directors believe that the Interim Report taken as a whole is fair, balanced and understandable. In arriving at this conclusion the Board considered the opinion and recommendation of the Audit Committee who undertook the following work:

- review of early drafts of the Interim Report;

- regular review and discussion over the financial results during the period, including briefings by Group finance; and

- receipt and review of a report from the external auditors.

The Directors of the Company are listed on pages 44 and 45 in Hunting PLC's 2013 Annual Report and on the Company's website: www.huntingplc.com. Other than Andrew Szescila stepping down from the Board on 15 September 2014, there have been no changes to the Directors since the publication of the 2013 Annual Report.

On behalf of the Board

Peter Rose

Finance Director

28 August 2014

Independent Review Report to Hunting PLC

Report on the Condensed Consolidated Interim Financial Statements

Our conclusion

We have reviewed the condensed consolidated interim financial statements, defined below, in the half year report of Hunting PLC for the six months ended 30 June 2014. Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

This conclusion is to be read in the context of what we say in the remainder of this report.

What We Have Reviewed

The condensed consolidated interim financial statements, which are prepared by Hunting PLC, comprise:

- the Condensed Consolidated Balance Sheet as at 30 June 2014;

- the Condensed Consolidated Income Statement and Condensed Consolidated Statement of Comprehensive Income for the period then ended;

- the Condensed Consolidated Statement of Cash Flows for the period then ended;

- the Condensed Consolidated Statement of Changes in Equity for the period then ended; and

- the explanatory notes to the condensed consolidated interim financial statements.

As disclosed in note 1, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the Group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

The condensed consolidated interim financial statements included in the half year report have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

What a Review of Condensed Consolidated Financial Statements Involves

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the half year report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed consolidated interim financial statements.

Responsibilities for the Condensed Consolidated Interim Financial Statements and the Review

Our responsibilities and those of the Directors

The half year report, including the condensed consolidated interim financial statements, is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half year report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Our responsibility is to express to the Company a conclusion on the condensed consolidated interim financial statements in the half year report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of complying with the Disclosure and Transparency Rules of the Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

PricewaterhouseCoopers LLP

Chartered Accountants

London

28 August 2014

Notes:

(a) The maintenance and integrity of the Hunting PLC website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

(b) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Condensed Consolidated Income Statement

Condensed Consolidated Statement of Comprehensive Income

Condensed Consolidated Balance Sheet

Condensed Consolidated Statement of Changes in Equity

Condensed Consolidated Statement of Cash Flows

Notes

1. Basis of Accounting

The financial information contained in this half year report complies with IAS 34 Interim Financial Reporting, as adopted by the European Union, and with the Disclosure and Transparency Rules of the Financial Conduct Authority. The condensed set of consolidated financial statements should be read in conjunction with the 2013 Annual Report and Accounts, which have been prepared in accordance with the Companies Act 2006 and IFRSs and IFRICs, as adopted by the European Union. The accounting policies adopted in this condensed set of consolidated interim financial statements are consistent with those used to prepare the 2013 Annual Report and Accounts except as described below.

The following have been adopted and are effective for the financial year ending 31 December 2014:

- IFRS10 Consolidated Financial Statements

- IFRS11 JointArrangements

- IFRS 12 Disclosure of Interests inOther Entities

- IAS 27 (revised) Separate Financial Statements

- IAS28 (revised) Investmentsin Associates and Joint Ventures

- IFRIC 21 Levies

- Amendment to IAS 32 - Offsetting Financial Assets and Financial Liabilities

- Transition Guidance(Amendmentsto IFRS 10,IFRS 11and IFRS12)

There has been no impact on the Group's financial position or performance from the adoption of these IFRSs or IFRIC interpretations.

Standards effective subsequent to the period end, which are being assessed to determine whether there is a significant impact on the Group's results or financial position include:

- IFRS9 Financial Instruments

- IFRS15 Revenue from Contracts with Customers

In preparing this condensed set of consolidated financial statements, the significant judgements, estimates and assumptions made by management in applying the Group's accounting policies were the same as those applied in the 2013 Annual Report and Accounts. Terms used in this condensed set of consolidated financial statements are defined in the Glossary on pages 152 to 154 contained in the 2013 Annual Report and Accounts.

This half year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for the year ended 31 December 2013 has been delivered to the Registrar of Companies. The independent auditors' report on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006. This condensed set of consolidated interim financial statements has been reviewed, not audited.

Change in Presentational Currency

Following the change in the currency in which the Group presents its financial statements from Sterling to US Dollars, the Group's condensed consolidated financial statements for the six months ended 2013 have been restated in US Dollars.

The average exchange rates used to translate the Group's results into US Dollars are as follows: