Elementis plc: Annual Report & Accounts 2001 - Notes to the financial statements: Exceptionals

Notes to the financial statements (continued)

4 Exceptionals

Group operating profit/(loss) includes the following charges/(income):


	Costs in preparing the company for sale		Restructuring costs		Settlement of US litigation		Total
	2001 £million	2000 £million	2001 £million	2000 £million	2001 £million	2000 £million	2001 £million	2000 £million

Continuing operations:

Chromium	-	-	-	-	-	(0.7)	-	(0.7)

Pigments & Specialties	-	-	-	1.4	-	-	-	1.4

Specialty Rubber	-	-	0.5	2.3	-	-	0.5	2.3


Group	4.6	-	-	-	-	-	4.6	-

	4.6	-	0.5	3.7	-	(0.7)	5.1	3.0

Tax on these charges was £nil million (2000: credit of £0.4 million). There was an exceptional tax credit of £4.9 million arising in respect of historic business disposals (2000: £nil million).7.1

Profit on disposal of business:


	2001 Profit before goodwill adjustments £million	2000 Goodwill Previously charged to reserves £million	Total £million

Discontinued operation:

Harcros Chemicals	2.1	(0.7)	1.4

5 Net interest payable


	2001 £million	2000 £million

Interest payable:

On bank loans	10.1	13.6

On other loans	0.3	0.5

	10.4	14.1

Interest receivable:

On bank deposits	(6.2)	(9.0)

	4.2	5.1

6 Tax on profit/(loss) on ordinary activities


	2001		2000
	£million	£million	£million	£million

United Kingdom corporation tax:

Current tax on income for the period	6.9		9.4

Adjustments in respect of prior periods	(9.3)		(1.3)

		(2.4)		8.1

Double tax relief		(0.8)

		(3.2)		8.1

Recoverable ACT		(4.5)		(4.6)

		(7.7)		3.5

Overseas tax:

Current tax on income for the period	0.8		2.3

Adjustments in respect of prior periods	0.1		(0.6)

		0.9		1.7

Deferred tax:

United Kingdom	0.1		0.8

Overseas	(0.5)		(0.1)

Adjustments in respect of prior periods	(1.3)		1.9

		(1.7)		2.6

Tax (credit)/charge		(8.5)		7.8

The charge for United Kingdom tax has been based on a corporation tax rate of 30 per cent (2000: 30 per cent). If deferred tax had been fully provided in 2001 under the liability method, the tax credit for the year would have decreased by £2.3 million (2000: £0.2 million).


	2001 £million	2000 £million
	2001 £million	2000 £million

Reconciliation of the tax (credit)/charge:
Notional tax charge before goodwill amortisation and exceptionals at UK corporation tax rate	4.2	17.5

Recoverable ACT	(4.5)	(4.6)

Differences in overseas effective tax rates	(0.7)	2.2

Benefit of US goodwill	(6.5)	(6.0)

Overseas tax losses unrelieved/(relieved)	14.4	(0.3)

Other current tax items	0.2	0.6

Deferred tax not provided on excess capital allowances and other timing differences	(6.3)	(1.2)

ACT utilised on remittance of overseas profits	1.2	-

Prior year adjustments	(5.6)	-

	(3.6)	8.2

Tax credit on exceptionals	-	(0.4)

Prior year tax exceptionals	(4.9)	-

Tax (credit)/charge	(8.5)	7.8

Prior year tax exceptional credit relates to historic business disposals.

7 Dividends


	2001 £million	2000 £million


Dividends on redeemable B shares (non-equity) – charge	0.1	0.1

The Notes to the financial statements continues on the next page >>
[page 3 of 13]


		Home \| Director's report \| Accounts \| Downloads \| Main website © Elementis disclaimer