We have delivered substantial value to shareholders by returning the proceeds of the sale of the UK Retail business. Now we will accelerate the pace of change and the process of business improvement over the next twelve months, to generate further value for all our shareholders.

The structure of the group was substantially changed during the year. In January we disposed of Cantrell & Cochrane for £519 million and used the proceeds to reduce short-term debt. Shortly after the year end we completed what was effectively a demerger of the UK Retail business followed by its sale to a consortium of Punch Taverns and Bass. The net proceeds of approximately £2.7 billion were returned to shareholders in a tax effective manner creating the new Allied Domecq as a focused international brand-led business.

The businesses that now comprise the new Allied Domecq made good progress during the year despite the inevitable distraction of the protracted disposal process referred to above. We have a clear strategy to improve the performance of these operations and have taken steps to accelerate the implementation of this strategy.

In Spirits & Wine, the continued focus of direct brand marketing behind core brand market combinations has sustained the expansion of volumes, underlying profits and cash flow growth in the major regions of Europe and the Americas. Greater marketing emphasis and sophisticated customer management techniques are key drivers of this growth which will be reinforced by cost cutting and tighter management of the supply chain.

In Quick Service Restaurants, Dunkin' Donuts continues to outperform the industry in the US with same store sales growth of 6 per cent last year. Togo's has been expanded and traded successfully while significant progress has been made to improve the Baskin-Robbins value proposition and convert this to a true franchise business. The international business was returned to profit in the second half of the year through aggressive restructuring and management changes.

UK Retail profits fell by 13 per cent as a result of difficult trading conditions. It reflects well on those working in the UK Retail business that performance did not deteriorate further during the disposal process.

Outlook Positive trends continued in the first two months of the new financial year. The restructuring of corporate departments and imminent closure of the Portland Place head office, following the disposal of the UK Retail business, have generated significant savings and the simplification of the business portfolio will provide further cost reduction opportunities. Continued focus of marketing expenditure and improved advertising effectiveness will drive further growth in the volumes of key brands and increase the opportunity for enhanced earnings and sustainable reinvestment in key brand market combinations.

We are actively seeking opportunities to improve the return on our existing assets and to enhance our position as the number two global spirits and wine company. These may include improving our geographic distribution (as highlighted by the recent agreement with Jinro in Korea), building on the strengths of our existing distribution infrastructure and developing our international wine business. There are significant opportunities for improving the performance of the business and management is focused on delivering these improvements. Achieving these objectives will strengthen the company's position and therefore the return to shareholders in any future industry consolidation.