Growing the contribution from value added and consumer branded products is a key element of our strategy and the sucralose ingredients business will be a major contributor. Sucralose is an exciting growth opportunity, ideally placed to meet consumer demands for reduced calorie options in many categories including soft drinks, dairy and confectionery.

The total cash cost including capitalised expenses on the sucralose realignment of US$137 million

(£75 million) remains subject to working capital adjustments. Payment occurred after the March 2004 year-end. The pro forma profit before tax for the year to December 2003 was US$33 million (£17 million) but we expect, as previously announced, significant one-off costs in the first year of operation.

Even after these costs, we expect the return on this investment to exceed the Group’s cost of capital in the year to March 2005.

Discussion points 1 Why is a cost adjustment required for working capital?
2 What is the company’s measure of success of the project in its first year?