At 30 June 2007, total equity was £4,170 million compared with £4,681 million at 30 June 2006. This decrease was mainly due to the shares repurchased for cancellation or holding as treasury shares of £1,405 million and the dividend paid out of shareholders’ equity of £858 million partly offset by the profit for the period of £1,556 million.

Net borrowings were £4,845 million at 30 June 2007, an increase of £763 million from net borrowings at 30 June 2006 of £4,082 million. The principal components of this increase were payments of £1,405 million to repurchase shares and an £858 million equity dividend offset by free cash inflow of £1,365 million and exchange movements of £211 million.

The directors have pleasure in presenting to shareholders their summary financial statement for the year ended 30 June 2007. A summary financial statement does not contain sufficient information to allow as full an understanding of the results and state of affairs of the company or group as is provided by the annual report. The financial statements, a business review, directors’ report, directors’ remuneration report and report of the auditor on the financial statements and auditable part of the directors’ remuneration report (which is unqualified and did not include any statements in relation to sections 237 (s2) and (s3) of the Companies Act 1985) are included in a separate document entitled Annual Report 2007, which is available to shareholders free of charge.