Turnover and trading profit at constant exchange rates for the continuing businesses have increased by 2 per cent and 3 per cent respectively. Profits and Earnings Trading profits before exceptionals for the group reduced from £721 million in 1998 to £671 million, including a full year of profits for the UK Retail business which fell by £31 million to £204 million. Turnover and trading profit at constant exchange rates for the continuing businesses (excluding the UK Retail business and Cantrell & Cochrane) have increased by 2 per cent and 3 per cent respectively. Profit before tax and exceptional items reduced from £615 million in 1998 to £579 million; after exceptional items the reduction was from £455 million to £221 million. Normalised earnings per share were 40.4p, a reduction of 3 per cent against 1998 driven by the dilutive effect of the disposal of Cantrell & Cochrane and the fall in profits from the UK Retail business. The normalised tax charge for the year, which reflects the write-back of ACT that had previously been written off, fell by £10 million to £150 million. The normalised tax rate remains at 26 per cent and we anticipate that this rate will be sustainable for the current year. Exceptional Items The group's profit and loss account reflects a net exceptional charge for the year of £358 million before tax. An exceptional profit of £189 million on the disposal of Cantrell & Cochrane was offset by £547 million of exceptional charges comprising £35 million on the redemption of loan stock, £237 million on the repayment of debenture stock, £27 million Year 2000 and EMU costs, £45 million UK Retail disposal costs, £37 million relating to surplus properties, £59 million asset write-downs, £67 million restructuring and other costs, £22 million losses on disposals and £18 million restructuring costs in associated and joint venture undertakings. Dividends An interim dividend of 15.00p per share (1998: 9.73p) was paid on 1 April 1999, as a Foreign Income Dividend. As previously announced, no final dividend will be paid for the year to 31 August 1999. Dividend cover (normalised) for the year was 2.7 times. Future dividend payments will be determined by reference to a dividend cover target of approximately 2.5 times with the interim and final distributions representing approximately 40 per cent and 60 per cent respectively of the annual total. It is currently proposed to declare the next interim dividend in May 2000 at the time of the Interim Results, with payment on 1 September 2000. Cash Flow Operating cash flow (net of fixed assets) was £449 million (1998: £565 million), of which continuing businesses (Spirits & Wine and QSR) generated an operating cash flow in the period of £346 million (1998: £335 million). Overall, despite the £272 million outflow for the premia on redemption of debentures and loan stock, net debt reduced from £1,401 million to £1,315 million, due in part to disposal proceeds from the £519 million sale of Cantrell & Cochrane, £112 million of cash receipts from the exercise of employee share options and the strong operating cash flow. Year 2000 The board continues to take the matter of Year 2000 very seriously. It remains committed to ensuring that, as far as is practicable, the programme it set up some time ago, which is running to plan, will minimise the group's vulnerability to Year 2000 risks. Despite our rigorous programme of work, it is in the nature of the Year 2000 problem that absolute assurance of compliance cannot be given. The group's overall cost of achieving compliance remains in line with the estimates that we provided at the half-year. However, the estimate has been reduced from £40 million to £30 million, following the disposal of the UK Retail business. Of the £30 million, £21 million had been spent to 31 August 1999. Graham Hetherington Finance Director