Continued

5 Net interest payable

	2003		2002
	£million		£million
a) Net interest payable
Interest payable:
On bank loans	3.0		3.2
On other loans	0.2		0.2
	3.2		3.4
Interest receivable:
On bank deposits	(0.8	)	(1.5	)
On other loans	(0.5	)	-	)
Interest receivable in respect of corporation tax refunds	(0.8	)	(2.0	)
	(2.1	)	(3.5	)
Net interest payable/(receivable)	1.1		(0.1	)
b) Other finance charges/(income)
Unwind of discount on provisions	0.9		1.0
Pension and post-retirement liabilities	4.2		(0.1	)
Other finance charges	5.1		0.9
Total interest payable	6.2		0.8

6 Taxation
a) Analysis of tax charge in the year

	2003		2002
	£million		£million
Current tax:
UK corporation tax at 30.0%	-		2.2
Overseas corporation tax	1.8		1.4
Adjustments in respect of prior years	(1.0	)	(1.0	)
Recoverable ACT	-		(1.5	)
Total current tax	0.8		1.1
Deferred tax:
United Kingdom	(1.4	)	0.3
Overseas	(0.5	)	(7.6	)
Adjustments in respect of prior periods	1.2		2.3
Recoverable ACT	1.0		0.4
Total deferred tax	0.3		(4.6	)
Tax charge/(credit)	1.1		(3.5	)

b) Factors affecting tax charge for the year

	2003		2002
	£million		£million
Profit/(loss) on ordinary activities before tax	5.5		(34.2	)
Tax on ordinary activities at 30.0%	1.7		(10.3	)
Recoverable ACT	-		(1.5	)
Differences in overseas effective tax rates	(0.7	)	4.3
Expenses not deductible for tax purposes	0.5		0.1
Overseas tax losses unrelieved	0.1		-
Accelerated capital allowances	0.2		(0.2	)
Deferred tax not provided on excess capital allowances and other timing differences	-		9.7
Prior year adjustments	(1.0	)	(1.0	)
Current tax charge	0.8		1.1

c) Factors that may affect future tax charges
The total tax charge in future periods will be affected by any changes in the corporation tax rates in force in the countries in which Elementis operates. The current tax charge will also be affected by the utilisation of surplus ACT and the utilisation of tax losses. The total tax charge will also be affected by the future recognition of the unprovided deferred tax, in relation to losses.

7 Earnings/(loss) per ordinary share

		2003				2002
	Profit for the financial year £million	Weighted average number of shares million	Earnings per share pence	(Loss)/profit for the financial year £million		Weighted average number of shares million		Earnings per share pence
Basic earnings/(loss) per share	4.3	431.6	1.0	(30.8	)	431.6		(7.1	)
Share options	-	6.2	-	-		3.5		-
Diluted earnings/(loss) per share	4.3	437.8	1.0	(30.8	)	435.1		(7.1	)
Basic earnings/(loss) per share	4.3	431.6	1.0	(30.8	)	431.6		(7.1	)
Goodwill amortisation net of taxation	8.0	-	1.9	8.7		-		2.0
Exceptionals net of taxation	0.6	-	0.1	36.8		-		8.5
Basic earnings per share before goodwill amortisation and exceptionals	12.9	431.6	3.0	14.7		431.6		3.4
Share options	-	6.2	-	-		3.5		-
Diluted earnings per share before goodwill amortisation and exceptionals	12.9	437.8	3.0	14.7		435.1		3.4

Earnings per share before goodwill amortisation and exceptionals provides a measure of the underlying financial performance of the Group on a comparable basis with many other groups.

Notes to the financial statements continue on the next page >
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