Results in brief

From continuing operations	Six months to 30 June 2005	Six months to 30 June 20041
Order book2	£52.5 billion	£45.2 billion
Sales3	£6,773 million	£5,962 million
EBITA4	£566 million	£470 million
Operating profit	£488 million	£392 million
Underlying basic earnings per share5	10.7p	7.7p
Basic earnings per share6	10.9p	7.4p
Dividend per share	4.0p	3.7p
Net cash inflow from operating activities	£586 million	£268 million
Net debt as defined by the group	£2,239 million	£1,878 million

Highlights

Strategy delivering

• unrivalled transatlantic defence position
  
• global land systems business
  
• recovery of UK programmes
  
• progress on European restructuring

• sales up 13.6%
  
• EBITA⁴ up 20.4%
  
• underlying earnings per share up 39%
  
• record order book

• dividend increased 8.1%

Outlook

Looking forward to 2005 as a whole,we now see growth from our defence businesses at a rate approaching that achieved in 2004. In addition, there will be a contribution from the full six months second half trading of United Defense. We also anticipate an improved year on year contribution from our Commercial Aerospace activities. Overall, the company is set to deliver good growth in 2005.

1 as restated under International Financial Reporting Standards 2 including share of equity accounted investments’ order books and after the elimination of intra-group orders of £1.0bn (2004 £1.6bn) 3 including share of equity accounted investments’ sales 4 earnings before amortisation and impairment of intangible assets, finance costs and taxation expense (statutory presentation is shown on page 16) 5 earnings per share excluding amortisation and impairment of intangible assets, non-cash finance movements on pensions and financial derivatives, and profit in acquired inventories (see note 5) 6 basic earnings per share in accordance with International Accounting Standard 33

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