Half Yearly Report 2008

Demerger Update

The Company has undertaken extensive work over the last year to be in a position to demerge when market conditions are favourable. Internal preparation has progressed well and our business divisions have seen operational benefits from this work. The Board continues to believe in the benefits of specialisation, but has decided that, given current adverse market conditions, it would not be in shareholders’ interests to proceed with implementation and our work on demerger has therefore stopped.

We are continuing work on a potential sale of Trillium, but timescales for transactions are protracted in the current environment.