Acquisitions and disposals
The fair value adjustments relating to newly acquired businesses, which were reported provisionally in the 1999 accounts, have been finalised. This has resulted in an overall increase to fair value adjustments of £33 million, with a corresponding increase in goodwill.

The company disposed of several businesses during 2000 to further enhance the focus on its core activities.

During the year the company sold or announced the closure of its materials handling businesses. This resulted in a loss of £73 million, including a charge of £40 million for goodwill previously written off against reserves.

The bulk of Vickers Turbine Components was sold in December for £77 million, representing net assets of £56 million, costs of £4 million and £17 million goodwill. Cash relating to this disposal was received in 2001.

Other disposals included: Cochran Boilers, which resulted in a loss of £1 million; and a £3 million final adjustment in respect of the sale of transmission and distribution businesses. The company reduced its effective holding in NEI Africa from 35 per cent to 24 per cent.